minerals and etals to eet the needs of a low-Carbon...

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THE BOTTOM LINE Meeting the requirements of the Paris Agreement to keep the global average temperature from rising more than 2ºC above pre-industrial levels will mean vastly expanded use of low-carbon sources of electricity, such as wind and solar power, as well as advanced technologies for long-term energy storage. These demands will increase demand for many minerals, including a range of base and rare earth metals. By planning ahead, resource- rich developing countries can prepare themselves to meet the challenges and opportunities afforded by increased demand for minerals. Kirsten Lori Hund is a senior mining specialist in the World Bank’s Energy and Extractives Global Practice. Daniele La Porta is a senior mining specialist in the same practice. John Drexhage is a consultant in the same practice. Minerals and Metals to Meet the Needs of a Low-Carbon Economy Why is this issue important? The technologies essential to the effort to limit climate change will affect demand for minerals used in their manufacturing As nations strive to meet the goals of the 2015 Paris Agreement on climate change, which calls for “holding the increase in the global average temperature to … below 2ºC above pre-industrial levels,” 1 solar power, wind power, energy-storage systems (batteries), and other technologies will become a much larger part of the globe’s energy systems. Countries that have the capacity and infrastructure to supply the minerals and metals required for these technologies have an opportunity to benefit from this growing market, but only if they do so in a sustainable manner—one that takes into account the impact of operations on local communities, water and ecosystems, energy use, and greenhouse gas emissions. The World Bank can support client countries in this endeavor and, in so doing, help them meet the twin goals of ending extreme poverty and promoting shared prosperity. The World Bank commissioned an analysis to investigate the key role minerals and metals will play in supplying a low-carbon economy. This Live Wire is a summary of that analysis (World Bank 2017). As a starting point, we used climate and technology scenarios developed in the International Energy Agency’s Energy Technology Perspectives 2016 to estimate the technologies that would have to be deployed to meet warming-limit scenarios of 2º (2DS), 4º (4DS), 1 The Paris Agreement was adopted in December 2015 by the Conference of the Parties to the United Nations Framework Convention on Climate Change. The 2º warming limit appears in article 2 of the agreement. A KNOWLEDGE NOTE SERIES FOR THE ENERGY PRACTICE 2017/78 A KNOWLEDGE NOTE SERIES FOR THE ENERGY & EXTRACTIVES GLOBAL PRACTICE and 6º (6DS). From that data, we then extrapolated what minerals would be required to manufacture each of the three technology groups (wind, solar, and batteries) to meet the three scenarios. The technologies and transmission systems implicated in each of the scenarios will cover a much wider range than that reviewed here. For example, in the 2º scenario the overall share of renewable energy generation in the energy mix would likely rise from the present level of 14 percent to 44 percent and would include carbon capture and storage, hydropower, biomass, and nuclear technologies. But this brief and the larger work behind it are intended to engender a wider discussion among experts and policy makers around the material implications of a carbon-constrained future. What effects will green energy have on the use of specific metals and minerals? Wind, solar, and storage technologies all have a range of demand implications The accompanying figures present estimated mineral demand for each of the three technologies covered in this study. Figure 1 shows the wind energy technology production curves for the 2º, 4º, and 6º warming-limit scenarios. In all three scenarios, electricity production from wind power (particularly onshore wind) will rise rapidly through 2050. Figure 2 presents an estimate of the increase in demand for key metals that would be created by deployment of wind-power technologies sufficient to meet the 2º and 4º scenarios. The impact is expressed as increases through 2050 over deployment under the 6º scenario. Figure 3 illustrates increases in the generation Supported by Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized closure Authorized

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Page 1: minerals and etals to eet the needs of a low-Carbon economydocuments.worldbank.org/curated/en/... · Kirsten Lori Hund is a senior mining specialist in the World Bank’s Energy ...

The boTTom line

Meeting the requirements of the Paris Agreement to keep the global average temperature from rising more than 2ºC above pre-industrial levels will mean vastly expanded use of low-carbon sources of electricity, such as wind and solar power, as well as advanced technologies for long-term energy storage. These demands will increase demand for many minerals, including a range of base and rare earth metals. By planning ahead, resource-rich developing countries can prepare themselves to meet the challenges and opportunities afforded by increased demand for minerals.

Kirsten Lori Hund is a senior mining specialist in the World Bank’s Energy and Extractives Global Practice.

Daniele La Porta is a senior mining specialist in the same practice.

John Drexhage is a consultant in the same practice.

minerals and metals to meet the needs of a low-Carbon economyWhy is this issue important?

The technologies essential to the effort to limit climate change will affect demand for minerals used in their manufacturing

As nations strive to meet the goals of the 2015 Paris Agreement on climate change, which calls for “holding the increase in the global average temperature to … below 2ºC above pre-industrial levels,”1 solar power, wind power, energy-storage systems (batteries), and other technologies will become a much larger part of the globe’s energy systems. Countries that have the capacity and infrastructure to supply the minerals and metals required for these technologies have an opportunity to benefit from this growing market, but only if they do so in a sustainable manner—one that takes into account the impact of operations on local communities, water and ecosystems, energy use, and greenhouse gas emissions. The World Bank can support client countries in this endeavor and, in so doing, help them meet the twin goals of ending extreme poverty and promoting shared prosperity.

The World Bank commissioned an analysis to investigate the key role minerals and metals will play in supplying a low-carbon economy. This Live Wire is a summary of that analysis (World Bank 2017). As a starting point, we used climate and technology scenarios developed in the International Energy Agency’s Energy Technology Perspectives 2016 to estimate the technologies that would have to be deployed to meet warming-limit scenarios of 2º (2DS), 4º (4DS),

1 The Paris Agreement was adopted in December 2015 by the Conference of the Parties to the United Nations Framework Convention on Climate Change. The 2º warming limit appears in article 2 of the agreement.

A k n o w l e d g e n o t e s e r i e s f o r t h e e n e r g y p r A c t i c e

2017/78

A k n o w l e d g e n o t e s e r i e s f o r t h e e n e r g y & e x t r A c t i v e s g l o b A l p r A c t i c e

and 6º (6DS). From that data, we then extrapolated what minerals would be required to manufacture each of the three technology groups (wind, solar, and batteries) to meet the three scenarios.

The technologies and transmission systems implicated in each of the scenarios will cover a much wider range than that reviewed here. For example, in the 2º scenario the overall share of renewable energy generation in the energy mix would likely rise from the present level of 14 percent to 44 percent and would include carbon capture and storage, hydropower, biomass, and nuclear technologies. But this brief and the larger work behind it are intended to engender a wider discussion among experts and policy makers around the material implications of a carbon-constrained future.

What effects will green energy have on the use of specific metals and minerals?

Wind, solar, and storage technologies all have a range of demand implications

The accompanying figures present estimated mineral demand for each of the three technologies covered in this study. Figure 1 shows the wind energy technology production curves for the 2º, 4º, and 6º warming-limit scenarios. In all three scenarios, electricity production from wind power (particularly onshore wind) will rise rapidly through 2050. Figure 2 presents an estimate of the increase in demand for key metals that would be created by deployment of wind-power technologies sufficient to meet the 2º and 4º scenarios. The impact is expressed as increases through 2050 over deployment under the 6º scenario. Figure 3 illustrates increases in the generation

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Precise estimates of

demand for metals hinge

on (1) the degree to which

the global community

actually succeeds in

meeting its long-term

climate goals, as laid out

in the Paris Agreement,

and (2) intra-technology

choices. The question is

not only how many wind

turbines, solar panels, and

low-emission vehicles will

be deployed, but which

technologies will come out

on top in each category.

of electricity from solar photovoltaic energy under the 2º, 4º, and 6º

warming scenarios through 2050. Figure 4 is analogous to figure 2,

but for solar PV.

Finally, with respect to batteries, figure 5 projects the energy

storage required (in gigawatt-hours) for each of the three climate

scenarios to 2050. Storage demand spikes sharply under the 2º sce-

nario owing to substantial increases in the use of electric vehicles,

as shown in the top panel of the figure. In this scenario, documented

in IEA (2016), 140 million electric vehicles would be in operation by

2030, versus approximately 25 million in the more pessimistic 4º and

6º scenarios. The projections for automotive battery energy storage

after 2030 are based on assumed annual growth rates of approxi-

mately 20 percent per year. The bottom panel of figure 5 shows the

evolution of demand for other forms of energy storage capacity

under the three scenarios.

The implications of increased use of storage batteries on demand

for certain metals are remarkable. Figure 6 charts the increment in

demand under the 2º and 4º scenarios over the 6º scenario, showing

increases in the range of 1,200 percent.

Precise estimates of demand for metals hinge on (1) the degree

to which the global community actually succeeds in meeting its

long-term climate goals, as laid out in the Paris Agreement, and (2)

intra-technology choices. The question is not only how many wind

turbines, solar panels, and low-emission vehicles will be deployed,

but which technologies will come out on top in each category.

With respect to wind, geared turbines, mostly land based, cur-

rently predominate; they contain coil-driven generators that require

significant amounts of copper. By contrast, direct-drive wind tur-

bines—mostly used for offshore operations—are less maintenance

intensive but require certain costly rare earth metals. The same

can be said of solar, where there are four competing technologies,

each of which carries different implications for minerals and metals

demand.

Intra-technology choices will probably be most important in

transportation. For example, electric, hybrid, and hydrogen have very

different implications for metal demand: electric vehicles require

lithium; hybrid, lead; and hydrogen, platinum.

Figure 1. electricity generation from wind power under the 2º, 4º, and 6º warming-limit scenarios, 2013–50

Source: World Bank (2017).

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2013 2018 2023 2028 2033 2038 2043 2048

Yea

rly

pro

du

ctio

n (

tera

wat

t-h

ou

rs)

Wind (onshore): 2DS

Wind (offshore): 2DS

Wind (total): 2DS

Wind (onshore): 4DS

Wind (offshore): 4DS

Wind (total): 4DS

Wind (onshore): 6DS

Wind (offshore): 6DS

Wind (total): 6DS

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The technologies and

transmission systems

implicated in each of the

scenarios will cover a

much wider range than

that reviewed here.

For example, in the

2º scenario the overall

share of renewable energy

generation in the energy

mix would likely rise from

the present level of

14 percent to 44 percent

and would include carbon

capture and storage,

hydropower, biomass, and

nuclear technologies. But

this brief and the larger

work behind it are intended

to engender a wider

discussion among experts

and policy makers around

the material implications

of a carbon-constrained

future.

Figure 2. increased demand for key metals occasioned by deployment of wind-power technologies sufficient to meet the 2º and 4º scenarios, expressed as increases over deployment under the 6º scenario

Source: World Bank (2017).

Figure 3. electricity generation from solar photovoltaic energy under the 2º, 4º, and 6º warming-limit scenarios, 2013–50

Source: World Bank (2017).

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

02013 2018 2023 2028 2033 2038 2043 2048

Yea

rly

pro

du

ctio

n (

tera

wat

t-h

ou

rs)

2DS

4DS

6DS

300

250

200

150

100

50

0Aluminum Chromium Copper Iron Lead Manganese Molybdenum Zinc

Ch

ange

(p

erce

nt)

2DS

4DS

NickelNeodymium

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The most notable finding

is the global dominance of

China in the base and rare

earth metals that will be

required to manufacture

low-carbon technologies.

China’s production and

reserve levels often dwarf

those of others, even

resource-rich developed

countries such as Canada

and the United States.

What should mineral-rich developing countries be doing to prepare for changes in demand?

Resource surveys, market intelligence, long-term plans, and capital outlays will be necessary

A long-term trend toward greener energy and a low-carbon future will create global opportunities with respect to a number of metals and minerals.

This has implications for resource-rich developing countries. Latin America is in a relatively strong position to become a supplier for the climate-friendly energy transition, with Argentina, Brazil, Chile, and Peru being the best-positioned countries. Bolivia is also potentially set to benefit should it be able to translate its resources, such as lithium, into recognized reserves. Particular metals for which Latin America holds a key strategic advantage include copper, iron ore, silver and lithium; the region is also active in the aluminum, nickel, manganese, and zinc sectors.

Africa is also potentially significant given its reserves of platinum,

manganese, bauxite, and chromium ores. Most of these reserves and

production activities are in southern African, with the exception of

Guinea. The lack of data and information on metals outside the south

may reflect survey gaps more than the actual absence of those

metals. For example, it is a relative certainty that Africa does, in fact,

contain rare earth metals. What has not occurred is any comprehen-

sive survey of its potential resources and how difficult it might be to

translate those resources into reserves.

With respect to Asia, the most notable finding is the global

dominance of China in the base and rare earth metals that will

be required to manufacture low-carbon technologies. China’s

production and reserve levels often dwarf those of others, even

resource-rich developed countries such as Canada, the United

States, and, to a lesser extent, Australia. India is dominant in iron,

steel, and titanium, and Indonesia has opportunities with bauxite and

nickel, as does Malaysia, though to a lesser extent. In Oceania, the

Figure 4. increased demand for key metals occasioned by deployment of solar photovoltaic technologies sufficient to meet the 2º and 4º scenarios, expressed as increases over deployment under the 6º scenario

Source: World Bank (2017).

350

300

250

200

150

100

50

0Aluminum Copper Iron LeadIndium Molybdenum Zinc

Ch

ange

(p

erce

nt)

2DS

4DS

Nickel Silver

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Under the 2º scenario,

140 million electric vehicles

would be in operation by

2030, versus approximately

25 million in the more

pessimistic 4º and

6º scenarios. … The

implications of increased

use of storage batteries on

demand for certain metals

are remarkable.

Figure 5. Global energy storage capacity scenarios

Top panel shows electric vehicle scenario only; the impact of the 2º scenario on demand for electric-car batteries is evident. bottom panel shows all degree/storage combinations

Note: 2DS = 2º scenario; 4DS = 4º scenario; 6DS = 6º scenario. Scenario data obtained from IEA (2015), International Electrotechnical Commission (2009), and IEA Energy Technology Perspectives (2016).

200,000

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

02013 2018 2023 2028 2033 2038 2043 2048

Gig

awat

t h

ou

rs o

f st

ora

ge

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

02013 2018 2023 2028 2033 2038 2043 2048

Gig

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f st

ora

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Energy storage (automotive): 2º scenario

Energy storage (grid scale): 2º scenario

Energy storage (decentralized): 2º scenario

Energy storage (automotive): 4º and 6º scenarios

Energy storage (grid scale): 4º scenario

Energy storage (decentralized): 4º scenario

Energy storage (grid scale): 6º scenario

Energy storage (decentralized): 6º scenario

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6 M i n e r A l s A n d M e T A l s T o M e e T T h e n e e d s o f A l o w - C A r B o n e C o n o M y

massive reserves of nickel to be found in New Caledonia should not be overlooked.

To make the most of the opportunities, developing countries will have to forge long-term strategies and make appropriate invest-ments. Those investments, however, imply significant upfront capital spending based on assumptions about the value of relevant com-modities a half-century ahead, given the typical life span of mines.

Countries will also have to be flexible enough to meet evolving demand for individual metals and minerals as the component mix of low-carbon technologies changes with economic and technical developments. To position themselves well, they will need reliable sources of economic data and market intelligence, as well as the capacity to turn that information into plans, investments, and sustainable operations.

In its concluding section, the report provides a set of recommen-dations for future work related to policy and technology.

Policy-related areas of inquiry include the following:Achieving balance between opportunity and sustainability.

Studies on the commodity implications of a carbon-constrained future typically focus on current reserves and the relative level of availability and access to materials needed to produce clean technologies under various scenarios. However, there is a growing awareness that clean technologies may pose new challenges for the sustainable development of minerals and resources. What is needed in resource-rich developing countries is dialogue between the mining and clean-energy constituencies to balance the opportunities offered by a growing market for key commodities with concern for equity and environmental sustainability.

To make the most of the

opportunities, developing

countries will have to

forge long-term strategies

and make appropriate

investments. Those

investments, however,

imply significant upfront

capital spending based

on assumptions about

the value of relevant

commodities a half-

century ahead, given the

typical life span of mines.

Countries will also have

to be flexible enough to

meet evolving demand

for individual metals and

minerals as the component

mix of low-carbon

technologies changes with

economic and technical

developments.

Figure 6. Percentage change in demand for metals for energy storage technologies under 2º and 4º scenarios through 2050, expressed as percentage increase over demand in 6º scenario,

Source: World Bank (2017).

Note: 2DS = 2º scenario; 4DS = 4º scenario.

1,400

1,200

1,000

800

600

400

200

0Aluminum Cobalt LeadIron Lithium Nickel

Ch

ange

(p

erce

nt)

2DS

4DS

Manganese

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7 M i n e r A l s A n d M e T A l s T o M e e T T h e n e e d s o f A l o w - C A r B o n e C o n o M y

Mapping minerals in developing countries. There is a significant gap in mineral mapping and data reporting in many developing country regions, particularly Africa. Capacity in this area is critical if resource-rich developing countries are to make the most of global changes in demand for their resources.

Predicting technology choice based on supply constraints and demand patterns. Much of the uncertainty about potential demand for many metals arises as much from choices within given technologies as it does from choices between them. Knowing where supply constraints may lie and where prices are most likely to rise will certainly affect some of these intra-technology choices, which, in turn, will help clarify demand.

Developing networks and raising awareness. One of the out-comes of this analysis is the realization that the implications of this work go far beyond the minerals and metals community as narrowly construed. Linkages should be pursued and facilitated with research organizations, business associations, and civil society (including public-interest groups).

Technology-related areas of inquiry pertain mostly to expanding the scope of future clean technologies. Areas to be covered may include electrical cabling and high-efficiency electric motors; ways to reduce vehicle weight; increasing the energy effi-ciency of buildings and technologies; new options for transmission and distribution; and the metal intensity of traditional and next-gen-eration fossil fuel plants and nuclear facilities; differences between key rare earth metals; and recycling.

Key rare earth metals differ widely in how they are isolated (rare earth metals are typically not economically or physically retrievable as discrete ores but are often enmeshed with other base metals) and in where they are found.

The recycling of metals from end-of-life products can improve the future availability of those metals, but data on both current and future metal recycling rates are often poor and should be improved.

This report on which this Live Wire is based is a first step in examining the implications of changing material requirements for the mining and metals industry as the world contemplates a low-carbon energy future. It is intended to engender a broader dialogue between the clean energy, climate, and extractives communities on their roles in shaping that future.

Going forward, the World Bank will work with these constituen-cies to further define the minerals and metals implications of the shift to green energy and to develop policies and other measures that will ensure that the transition is managed in a way that com-plements the full array of sustainable development priorities, from environmental and resource concerns to equitable economic growth in developing countries.

ReferencesIEA (International Energy Agency). 2016. Energy Technology

Perspectives 2016: Towards Sustainable Urban Energy Systems. Paris.

———. 2015. Energy Technology Perspectives 2015: Mobilising Innovation to Accelerate Climate Action. Paris.

International Electrotechnical Commission. 2009. Electrical Energy Storage White Paper. Geneva. http://www.iec.ch/whitepaper/pdf/iecWPenergystorage-LR-en.pdf.

Morris, Lindsay. 2011. “Direct Drive vs. Gearbox: Progress on Both Fronts.” Power Engineering (online), March 1. http://www.power-eng.com/articles/print/volume-115/issue-3/features/direct-drive-vs-gearbox-progress-on-both-fronts.html.

USGS (U.S. Geological Survey). 2016. Mineral Commodities Summaries 2016. Reston, VA, USA.

World Bank. 2017. The Growing Role of Minerals and Metals for a Low Carbon Future. Washington, DC. June.

The report summarized in this Live Wire was developed as a collaboration between the World Bank’s Oil, Gas, and Mining team of the Energy and Extractives Global Practice (GEEDR) and the Climate Change Group (CCSA). The team was led by Daniele La Porta and Kirsten Hund, with Michael McCormick and Jagabanta Ningthoujam. John Drexhage is the primary author.

make fuRTheR ConneCTions

live wire 2016/58. “Mining for inclusive Growth in odisha, india,” by sridar P. Kannan and Peter Van der Veen.

live wire 2017/72. “what drives the Price of solar Photovoltaic electricity in developing Countries?” by Zuzana dobrotkova, Pierre Audinet, and Gevorg sargsyan.

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8 M i n e r A l s A n d M e T A l s T o M e e T T h e n e e d s o f A l o w - C A r B o n e C o n o M y

The Live Wire series of online knowledge notes is an initiative of the World Bank Group’s Energy and Extractives Global Practice, reflecting the emphasis on knowledge management and solu-tions-oriented knowledge that is emerging from the ongoing change process within the Bank Group.

Each Live Wire delivers, in 3–6 attractive, highly readable pages, knowledge that is immediately relevant to front-line practitioners.

Live Wires take a variety of forms:• Topic briefs offer technical knowledge on key issues in energy and extractives

• Case studies highlight lessons from experiences in implementation

• Global trends provide analytical overviews of key energy and extractives data

• Bank views portray the Bank Group’s activities in the energy and extractives sectors

• Private eyes present a private sector perspective on topical issues in the field

Each Live Wire will be peer-reviewed by seasoned practitioners in the Bank. Once a year, the Energy and Extractives Global Practice takes stock of all notes that appeared, reviewing their quality and identifying priority areas to be covered in the following year’s pipeline.

Please visit our live Wire web page for updates: http://www.worldbank.org/energy/livewire

Live Wires are designed for easy reading on the screen and for downloading and self-printing in color or black and white.

for world Bank employees: Professional printing can also be undertaken on a customized basis for specific events or occasions by contacting GsdPM Customer service Center at (202) 458-7479, or sending a written request to [email protected].

Get Connected to live Wire

1 T r a c k i n g P r o g r e s s T o w a r d P r o v i d i n g s u s T a i n a b l e e n e r g y f o r a l l i n e a s T a s i a a n d T h e Pa c i f i c

THE BOTTOM LINE

where does the region stand

on the quest for sustainable

energy for all? in 2010, eaP

had an electrification rate of

95 percent, and 52 percent

of the population had access

to nonsolid fuel for cooking.

consumption of renewable

energy decreased overall

between 1990 and 2010, though

modern forms grew rapidly.

energy intensity levels are high

but declining rapidly. overall

trends are positive, but bold

policy measures will be required

to sustain progress.

2014/28

Elisa Portale is an

energy economist in

the Energy Sector

Management Assistance

Program (ESMAP) of the

World Bank’s Energy and Extractives

Global Practice.

Joeri de Wit is an

energy economist in

the Bank’s Energy and

Extractives Global

Practice.

A K N O W L E D G E N O T E S E R I E S F O R T H E E N E R G Y & E X T R A C T I V E S G L O B A L P R A C T I C E

Tracking Progress Toward Providing Sustainable Energy

for All in East Asia and the Pacific

Why is this important?

Tracking regional trends is critical to monitoring

the progress of the Sustainable Energy for All

(SE4ALL) initiative

In declaring 2012 the “International Year of Sustainable Energy for

All,” the UN General Assembly established three objectives to be

accomplished by 2030: to ensure universal access to modern energy

services,1 to double the 2010 share of renewable energy in the global

energy mix, and to double the global rate of improvement in energy

efficiency relative to the period 1990–2010 (SE4ALL 2012).

The SE4ALL objectives are global, with individual countries setting

their own national targets in a way that is consistent with the overall

spirit of the initiative. Because countries differ greatly in their ability

to pursue the three objectives, some will make more rapid progress

in one area while others will excel elsewhere, depending on their

respective starting points and comparative advantages as well as on

the resources and support that they are able to marshal.

To sustain momentum for the achievement of the SE4ALL

objectives, a means of charting global progress to 2030 is needed.

The World Bank and the International Energy Agency led a consor-

tium of 15 international agencies to establish the SE4ALL Global

Tracking Framework (GTF), which provides a system for regular

global reporting, based on rigorous—yet practical, given available

1 The universal access goal will be achieved when every person on the planet has access

to modern energy services provided through electricity, clean cooking fuels, clean heating fuels,

and energy for productive use and community services. The term “modern cooking solutions”

refers to solutions that involve electricity or gaseous fuels (including liquefied petroleum gas),

or solid/liquid fuels paired with stoves exhibiting overall emissions rates at or near those of

liquefied petroleum gas (www.sustainableenergyforall.org).

databases—technical measures. This note is based on that frame-

work (World Bank 2014). SE4ALL will publish an updated version of

the GTF in 2015.

The primary indicators and data sources that the GTF uses to

track progress toward the three SE4ALL goals are summarized below.

• Energy access. Access to modern energy services is measured

by the percentage of the population with an electricity

connection and the percentage of the population with access

to nonsolid fuels.2 These data are collected using household

surveys and reported in the World Bank’s Global Electrification

Database and the World Health Organization’s Household Energy

Database.

• Renewable energy. The share of renewable energy in the

energy mix is measured by the percentage of total final energy

consumption that is derived from renewable energy resources.

Data used to calculate this indicator are obtained from energy

balances published by the International Energy Agency and the

United Nations.

• Energy efficiency. The rate of improvement of energy efficiency

is approximated by the compound annual growth rate (CAGR)

of energy intensity, where energy intensity is the ratio of total

primary energy consumption to gross domestic product (GDP)

measured in purchasing power parity (PPP) terms. Data used to

calculate energy intensity are obtained from energy balances

published by the International Energy Agency and the United

Nations.

2 Solid fuels are defined to include both traditional biomass (wood, charcoal, agricultural

and forest residues, dung, and so on), processed biomass (such as pellets and briquettes), and

other solid fuels (such as coal and lignite).

1 T r a c k i n g P r o g r e s s To wa r d P r o v i d i n g s u s Ta i n a b l e e n e r g y f o r a l l i n e a s T e r n e u r o P e a n d c e n T r a l a s i a

THE BOTTOM LINE

where does the region stand

on the quest for sustainable

energy for all? The region

has near-universal access to

electricity, and 93 percent of

the population has access

to nonsolid fuel for cooking.

despite relatively abundant

hydropower, the share

of renewables in energy

consumption has remained

relatively low. very high energy

intensity levels have come

down rapidly. The big questions

are how renewables will evolve

when energy demand picks up

again and whether recent rates

of decline in energy intensity

will continue.

2014/29

Elisa Portale is an

energy economist in

the Energy Sector

Management Assistance

Program (ESMAP) of the

World Bank’s Energy and Extractives

Global Practice.

Joeri de Wit is an

energy economist in

the Bank’s Energy and

Extractives Global

Practice.

A K N O W L E D G E N O T E S E R I E S F O R T H E E N E R G Y & E X T R A C T I V E S G L O B A L P R A C T I C E

Tracking Progress Toward Providing Sustainable Energy

for All in Eastern Europe and Central Asia

Why is this important?

Tracking regional trends is critical to monitoring

the progress of the Sustainable Energy for All

(SE4ALL) initiative

In declaring 2012 the “International Year of Sustainable Energy for

All,” the UN General Assembly established three global objectives

to be accomplished by 2030: to ensure universal access to modern

energy services,1 to double the 2010 share of renewable energy in

the global energy mix, and to double the global rate of improvement

in energy efficiency relative to the period 1990–2010 (SE4ALL 2012).

The SE4ALL objectives are global, with individual countries setting

their own national targets in a way that is consistent with the overall

spirit of the initiative. Because countries differ greatly in their ability

to pursue the three objectives, some will make more rapid progress

in one area while others will excel elsewhere, depending on their

respective starting points and comparative advantages as well as on

the resources and support that they are able to marshal.

To sustain momentum for the achievement of the SE4ALL

objectives, a means of charting global progress to 2030 is needed.

The World Bank and the International Energy Agency led a consor-

tium of 15 international agencies to establish the SE4ALL Global

Tracking Framework (GTF), which provides a system for regular

global reporting, based on rigorous—yet practical, given available

1 The universal access goal will be achieved when every person on the planet has access

to modern energy services provided through electricity, clean cooking fuels, clean heating fuels,

and energy for productive use and community services. The term “modern cooking solutions”

refers to solutions that involve electricity or gaseous fuels (including liquefied petroleum gas),

or solid/liquid fuels paired with stoves exhibiting overall emissions rates at or near those of

liquefied petroleum gas (www.sustainableenergyforall.org).

databases—technical measures. This note is based on that frame-

work (World Bank 2014). SE4ALL will publish an updated version of

the GTF in 2015.

The primary indicators and data sources that the GTF uses to

track progress toward the three SE4ALL goals are summarized below.

Energy access. Access to modern energy services is measured

by the percentage of the population with an electricity connection

and the percentage of the population with access to nonsolid fuels.2

These data are collected using household surveys and reported

in the World Bank’s Global Electrification Database and the World

Health Organization’s Household Energy Database.

Renewable energy. The share of renewable energy in the energy

mix is measured by the percentage of total final energy consumption

that is derived from renewable energy resources. Data used to

calculate this indicator are obtained from energy balances published

by the International Energy Agency and the United Nations.

Energy efficiency. The rate of improvement of energy efficiency is

approximated by the compound annual growth rate (CAGR) of energy

intensity, where energy intensity is the ratio of total primary energy

consumption to gross domestic product (GDP) measured in purchas-

ing power parity (PPP) terms. Data used to calculate energy intensity

are obtained from energy balances published by the International

Energy Agency and the United Nations.

This note uses data from the GTF to provide a regional and

country perspective on the three pillars of SE4ALL for Eastern

2 Solid fuels are defined to include both traditional biomass (wood, charcoal, agricultural

and forest residues, dung, and so on), processed biomass (such as pellets and briquettes), and

other solid fuels (such as coal and lignite).

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