Global Issue Paper No. 7
A contribution to a Global Energy Strategy (GES)
An Öko-Institut Policy Paper by Uwe R. Fritsche and Felix Chr. Matthes, March 2004
Introduction
Energy flows underlie all human activity and substantially influence both the economic and the ecological systems locally and regionally, as well as globally:
- Energy is a major source of environmental burdens – from land use to acid emissions, from solid wastes to greenhouse gases, and can also cause public risks - from oil spills in pristine areas to nuclear contamination of population centers.
- Energy trade is a significant driver of globalization. The oil market already generates global price signals, while hard coal, and liquefied natural gas are developing towards global markets as well. Major energy companies play an increasing role on the energy markets worldwide. Globalization trends can also be observed for many energy technologies, as well as energy appliances.
- Energy infrastructure expenditures consume up to 5% of the GNP in most industrialized (and a growing number of developing) countries. Furthermore, costs for energy use contribute another 5% of the GNP in the OECD, reaching up to # of
GNP in some developing countries. - Energy is a major business – fossil-fuel extraction and processing is the source of up to 50% of the GNP in some countries. Because of the inhomogeneous regional distribution of fossil fuel resources, the vulnerability to both turbulences on energy markets and massive changes in the energy sector is significant for many countries.
- Energy technology is developing rapidly and energy and environmental policies are major drivers for economic developments, as R&D expenditures of OECD countries indicate.
- Access to clean energy services is a key issue for development. Since technological development requires a sufficient and stable energy supply, inaccessible clean energy presents a massive obstacle for development in many low or least income world regions.
Since the 1992 Rio Declaration, energy issues have been addressed in various circles, bodies, studies, and conferences. Energy was addressed at the WSSD2, though mostly with respect to renewable energies. As energy is linked to infrastructure development, and poverty issues, it is a fundamental area of global concern. Given this context, the Heinrich Böll Foundation commissioned the Öko-Institut (Institute for Applied Ecology) to prepare a policy paper on principal elements of a Global Energy Strategy (GES) as a contribution to the WSSD, and its follow-up process3.
This GES paper is not meant as a comprehensive study, or a final blueprint, but as a focused outline of the fundamental issues that a GES should address.