Affordable and Clean Energy

By Marijn van Rees, Research Associate at the Sen Foundation

Sustainable Development Goal 7 (SDG 7) is set out to ensure access to affordable, reliable, sustainable and modern energy for all.[1] According to the UN, energy is closely connected to the problem of global climate change as the energy sector represents by far the largest source of Greenhouse Gas (GHG) emissions that are contributing to global warming.[2] Hence, SDG 7 builds on three main pillars (affordability, reliability and sustainability) that work toward three main targets (universal access, renewable energy and energy efficiency) to be reached by 2030. The International Energy Agency (IEA) points out, however, that while there are early signs of a global energy transition taking place, efforts fall short on global goals and cracks have become visible in the key pillars. This crucially undermines sustainable energy as a necessary condition for climate change mitigation and disaster risk reduction.[3] According to the UNEP 2018 Emissions Gap Report, following a three-year period of relative stabilization, energy-related CO₂ emissions increased by 1.7% in 2017 and have continued to increase in the course of 2018.[4]

Taking Stock of SDG 7

The Energy Progress Report (2018), published by the World Bank and its custodian agencies, states that the world is currently not on track to meet SDG 7 by 2030. In fact, current progress falls short on all the SDG targets. Still, gains are made in certain areas. First, access to electricity in sub-Saharan Africa has recently begun to accelerate. Secondly, renewable energy is making gains in the power and electricity sector, yet these are not matched in the transport and building sectors. Finally, energy efficiency continues to improve, driven by advances in the industrial sector. Lagging furthest behind is access to clean cooking, an area typically overlooked by policy-makers.[5]

Universal Access (7.1)

Currently, around 1 billion people (13% of global population) live without electricity, whereas 3 billion people (40% of global population) lack access to clean cooking solutions. The number of people gaining access to electricity has accelerated, but progress has been uneven. If current policies and population trends continue, as many as 674 million people will continue to live without electricity and 2.3 billion people will continue to use traditional cooking solutions in 2030, perpetuating much of the current negative health impacts.[6] The increasing concentration of those without access and the continued challenges associated with extending the centralized power grid to remote locations has resulted in decentralized solutions with demand served by mini-grids and off-grid systems. Decentralized systems are thus an essential part of efforts to improve electricity access. However, they are not without their own challenges. Furthermore, mitigating the harmful effects of cooking requires more sensitivity to cultural and affordability factors.[7]

Renewable Energy (7.2)

In 2015, only 17.5% of Total Final Energy Consumption (TFEC) at global level was obtained from renewable sources, 9.6% of which came from modern forms of renewable energy such as modern biomass (for example agriculture/forest waste), geothermal, hydropower, solar and wind. The remaining renewables came from traditional biomass like fuelwood and charcoal of which a significant proportion is used by around 3 billion people in polluting cookstoves. Based on current policies, the renewable share is expected to fall short of the SDG target.[8] While solar and wind have become more cost-competitive, enabling the share of renewables in electricity to rise relatively quickly, a more rapid decarbonization of the electricity sector is still needed. In this regard, thorium-based nuclear energy is an often overlooked but potentially important and viable way for generating sustainable electricity. At the same time, however, electricity accounted for only 20% of TFEC, highlighting the need to accelerate the use of renewables for the transport and heating and cooling sectors that account for 80% of TFEC.[9] Heating and cooling is the most important energy end-use sector and is a large contributor to global CO₂ emissions as it is primarily produced by fossil fuels. However, the heating and cooling sector is complex and fragmented. As a result, policy-makers are primarily focussing their policies on the electricity sector. Progress in this domain can also be slow due to high capital costs, low prices of and subsidies for fossil fuels, low building renovation rates and a slow turnover of efficiency appliances.[10] Transport is the second largest energy end-use sector and, like the heating and cooling sector, almost entirely produced by fossil fuels. Decarbonizing this sector therefore involves a fundamental change in the nature and structure of transport demand, improvements in energy efficiency and changes in the energy mix.[11] Overall then, given the high dependence on fossil fuels, fossil fuel subsidy reform is essential for decarbonizing these sectors.

Energy Efficiency (7.3)

Global energy intensity as the energy used per unit of GDP continued to fall at an accelerated pace of 2.8% in 2015, improving the average annual decline to 2.2% for 2010-2015. However, progress still falls short of the 2.7% annual decline needed to meet the SDG target of doubling the global rate of improvement in energy efficiency in 2030. Unfortunately, improvements in energy efficiency slowed down in 2017 and 2018, with the rate of improvement in 2018 at 1.7%.[12] Government policies are therefore essential for realizing improved energy efficiency across the major end-use sectors (building, industry, transport). First, two-thirds of the energy consumed in the building sector is not adequately covered by energy efficiency standards. While many countries have implemented building codes and standards, achieving efficiency requires codes to be strengthened and expanded to cover both new and existing buildings. Minimum Energy Performance Standards (MEPS) for key equipment not currently covered, such as electric heat pumps and air conditioners, also need to be strengthened and expanded.[13] Secondly, policy efforts in the industry sector should focus on increasing the adoption and strengthening of so-called Energy Management Systems (EMS). This includes improving the efficiency of industrial equipment and shifting industrial activity towards less energy-intensive production routes. Improving materials efficiency is an additional step that can enable a shift in industrial activity.[14] Thirdly, policies are needed to improve efficiency across the various modes of transport. Policy-makers could focus on efficiency standards for cars and trucks, incentives for electrification and global targets and measures for aviation and shipping as important policy tools. Furthermore, consumers and fleet managers need to be well-informed about running costs and efficiency so as to support more efficient vehicle uptake. Financial incentives can further stimulate a switch to higher efficiency options at the point of purchase or lease and operation.[15]

Conclusions

Policy efforts currently fall short of all SDG 7 targets. Solutions therefore need to be further improved if the world is to achieve a modern, affordable and sustainable energy sector for all. This will require policy-makers to show greater commitment to scaling-up sustainable energy policies and financing, as well as the willingness to embrace new technologies. While access, renewables and efficiency are key components for a successful energy transition, policy-makers need to take into account the synergy between these targets and the needs of local communities.

NOTE: If you want to know more about this topic, this article is a summary of the following articles:

SDG 7 Current Status by Marijn van Rees
SDG 7 Policy Insights by Marijn van Rees

References

[1] United Nations. (2015). Transforming our World: The 2030 Agenda for Sustainable Development. Retrieved from Sustainable Development Goals Knowledge Platform: https://sustainabledevelopment.un.org/content/documents/21252030%20Agenda%20for%20Sustainable%20Development%20web.pdf.

[2] United Nations. (2018). Sustainable Development Goals: 7 Affordable and Clean Energy. Retrieved November 2018, from The United Nations: https://www.un.org/sustainabledevelopment/energy/.

[3] IEA. (2018). World Energy Outlook (WEO) 2018. Paris: International Energy Agency. Retrieved from https://webstore.iea.org/download/summary/190?fileName=English-WEO-2018-ES.pdf.

[4] UNEP. (2018). Emissions Gap Report 2018. Nairobi: United Nations Environment Programme. Retrieved from https://www.unenvironment.org/resources/emissions-gap-report-2018. IEA. (2018). Global Energy & CO₂ Status Report: Latest Trends in Energy and Emissions in 2018. Paris: International Energy Agency. Retrieved from: https://webstore.iea.org/download/direct/2461?fileName=Global_Energy_and_CO2_Status_Report_2018.pdf.

[5] World Bank. (2018). Tracking SDG 7: The Energy Progress Report 2018. Washington: IEA, World Bank Group, IRENA, UNSD, WHO. Retrieved from https://trackingsdg7.esmap.org/downloads. See also: UN DESA. (2018). The Sustainable Development Goals Report 2018. New York: United Nations Department of Economic and Social Affairs. Retrieved from https://unstats.un.org/sdgs/files/report/2018/TheSustainableDevelopmentGoalsReport2018-EN.pdf.

[6] Ibid. 6. World Bank. (2018). pp. 2, 4. Tracking SDG 7. UN DESA. (2018). pp. 6-7. The Sustainable Development Goals. WHO. (2018). World Health Statistics 2018: Monitoring Health for the SDGs. pp. 9-10. Geneva: World Health Organization. Retrieved from http://apps.who.int/iris/bitstream/handle/10665/272596/9789241565585-eng.pdf.

[7] World Bank. (2019). Tracking SDG 7: The Energy Progress Report 2019. IEA. (2017). Energy Access Outlook 2017: From Poverty to Prosperity. pp. 44-45. Retrieved 2019, from International Energy Agency: https://www.iea.org/publications/freepublications/publication/WEO2017SpecialReport_EnergyAccessOutlook.pdf.

[8] Ibid. 6. World Bank. (2018). p. 6. Tracking SDG 7. UN DESA. (2018). pp. 6-7. The Sustainable Development Goals Report.

[9] Ibid 3. IEA. (2018). World Energy Outlook (WEO) 2018. Ibid. 6. World Bank. (2018). p. 6. Tracking SDG 7. UN DESA. (2018). pp. 6-7. The Sustainable Development Goals Report. UN HLPF. (2018). 2018 HLPF Review of SDG Implementation: SDG 7. Ibid. 8. World Bank. (2019). Tracking SDG 7: The Energy Progress Report 2019. pp. 106-108. UN DESA. (2019). The Sustainable Development Goals Report 2019. pp. 36-37.

[10] IRENA, IEA, REN21. (2018). Renewable Energy Policies in a Time of Transition. p. 26. Retrieved 2019, from International Renewable Energy Agency (IRENA): https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2018/Apr/IRENA_IEA_REN21_Policies_2018.pdf. IEA. (2018). 20 Renewable Energy Policy Recommendations. p. 23.

[11] Ibid. 11. IRENA, IEA, REN21. (2018). Renewable Energy Policies in a Time of Transition. pp. 44, 54-55. IEA. (2018). 20 Renewable Energy Policy Recommendations. pp. 27-28.

[12] Ibid. 6. World Bank. (2018). p. 8. Tracking SDG 7. UN DESA. (2018). pp. 6-7. The Sustainable Development Goals Report. IEA. (2018). Global Energy & CO₂ Status Report.

[13] IEA. (2018). Perspectives for the Energy Transition: The Role of Energy Efficiency. pp. 82-88. Retrieved 2019, from International Energy Agency: https://www.iea.org/publications/freepublications/publication/Perspectives%20for%20the%20Energy%20Transition%20-%20The%20Role%20of%20Energy%20Efficiency.pdf. Ibid. 8. World Bank. (2019). Tracking SDG 7: The Energy Progress Report 2019. p. 112.

[14] Ibid. 8. World Bank. (2019). Tracking SDG 7: The Energy Progress Report 2019. p. 112. Ibid. 15. IEA. (2018). Perspectives for the Energy Transition: The Role of Energy Efficiency. p. 96.

[15] Ibid. 8. World Bank. (2019). Tracking SDG 7: The Energy Progress Report 2019. p. 112. Ibid. 15. IEA. (2018). Perspectives for the Energy Transition: The Role of Energy Efficiency. p. 102.