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 Quest 5: Energy Subsidy Reform and Sustainable Development: Challenges for Policy Makers
A workshop will follow on the Africa Energy Mininsters' Conference in Durban from 15-16 December 2000.

Participation is welcomed from all those who have direct experience of subsidies and can contribute to the discussions, and it is hoped that some participants will be able to stay on at this conference.

Wendy Annecke



ENERGY SUBSIDY REFORM AND SUSTAINABLE DEVELOPMENT:
CHALLENGES FOR POLICY MAKERS

-An Overview of goals and targets-

At the first meeting of the Ad Hoc Open-ended Intergovernmental Group of Experts on Energy and Sustainable Development (which is helping governments prepare for the CSD-9 meeting in 2001), one prominent developing country concern raised regarding the preparations was the need for regional input into the process. The issue of fuel subsidies and how these relate to sustainable energy approaches also figured prominently at the Session.

The IEA and UNEP are conducting a series of regional workshops in Europe, Africa, Asia and Latin America on reform of energy subsidies and sustainable development. The first workshop (Paris, 6th-7th November 2000) had an emphasis on OECD countries and countries with economies in transition. The second workshop (Durban, South Africa, 15-16 December 2000) emphasized issues relevant to the African region and the specific needs of African Countries. The final two regional meetings in Asia and South America will emphasize issues relevant to the respective regions and regional needs (Bangkok, Thailand, 16-17 January 2001; Santiago, Chile 26-27 March 2001).

The objectives of the workshops are to:

• further the dialogue between developed and developing countries on energy subsidies and their impact on sustainable development;
• establish a regional dialogue involving different stakeholders to exchange views and ideas on specific regional issues and policy options;
• provide a platform for government representatives, experts, NGOs and industry members to discuss issues surrounding energy subsidies and their reform;
• raise awareness and enhance understanding of the linkages between fossil fuel subsidies and their environmental, social and economic impacts;
• review and build on methodologies to identify and assess energy subsidies and their impacts; and enhance capacities to find win-win solutions in defining and implementing energy subsidy reform.

More specifically, the workshop participants will:
• explorer differences of needs between small, large, developed and developing countries;
• better understand the operation and regulation of energy markets;
• gain from the experience of country-specific case studies and analysis;
• improve their understanding of social, economic and environmental effects of energy subsidy reform;
• help suggest policy options for energy subsidy system reform.

Discussions will be based on the analytical work on energy subsidies reform by UNEP, the IEA, and other relevant organisations. The IEA is deepening the detailed quantitative analysis presented in the IEA publication “World Energy Outlook: Looking at Energy Subsidies – Getting the Prices Right” for several countries. UNEP is conducting a review of existing methodologies to assess the social, environmental and economic costs and benefits of subsidy removal, as well as a series of regional and national studies on energy subsidies. The result of this work will be presented at the workshops.

For each workshop a compilation of ideas and policy options and recommendations will be prepared. As well, an overall synthesis of the main outcomes and recommendations of the workshop series and associated analytical work will be prepared and submitted to UNCSD 9.

Should you have any other enquires, please do not hesitate to contact Laurent Dittrick [Tel: (33 1) 40 57 67 57 or e-mail: laurent.dittrick@iea.org] or Emeline Fellus [Tel.: (41 22) 917 8197 or e-mail: emeline.fellus@unep.ch] or dlathe@mweb.co.za in Durban



UNITED NATIONS ENVIRONMENT PROGRAMME IEA/AIE
Programme des Nations Unies pour l’environnement INTERNATIONAL ENERGY AGENCY
AGENCE INTERNATIONALE DE L’ÉNERGIE

DRAFT AGENDA
Energy Subsidy Reform and Sustainable Development: Challenges for Policy Makers
Durban, South Africa, 15-16 December, 2000

Day 1:

9:00 AM Registration and Coffee

9:30 AM Opening Remarks

Mr Bakary Kante, UNEP Regional Office of Africa
Welcoming remarks, overall presentation

UN CSD 9 Representative – to be confirmed
Expectations for the CSD 9 Process

Ambassador W. Ramsay, Deputy Executive Director, IEA
Objectives and perspectives for this workshop

Mr Anil Markandaya, UNEP consultant
Background information on energy subsidy systems and policy reform.

10:00 AM

¤Session I: Regional Perspectives
Description of existing energy subsidy systems in Europe, Africa, Asia and Latin America

Trevor Morgan, IEA
Energy Subsidies in OECD Countries

Transitional Economy Government Representative – to be confirmed
Transitional Economy Perspectives

UNEP/IEA
Results and recommendations arising from the Paris workshop

10:45 AM Coffee Break

11:15 AM Mr Hoetomo, Indonesian Bureau for Planning and International Cooperation – to be confirmed
Subsidy and sustainable development issues in Indonesia / Asia

Mr Hugo Altomonte, ECLAC
Latin American perspectives

Mr Dibongué Kouo, Agence intergouvernementale de la francophonie Institut de l'énergie et de l'environnment de la francophonie (IEPF)
Issues arising from the Sub-Saharan CSD preparatory meeting at Kotonou

Discussion

12:45 PM Lunch

14:15 PM Session II: Africa - Rationale and Goals for Energy Subsidies

Why subsidies, what goals, purpose and related issues. This panel session will present an overview of selected national subsidy systems, reasoning behind their existence and the consequences on market penetration of new technologies and the creation of niche markets. Fossil fuel, renewable, direct and indirect subsidy systems will be discussed. Debate should mainly cover the economic, environmental and social reasons for putting these subsidies into place, including energy access issues.

Ms Njeri Wamukonya, UNEP Collaborating Centre on Energy and the Environment (UCCEE)
Subsidy reform in the south African electricity sector: implementation and distributional aspects

Mr Norbert Nziramasanga, Southern Center for Energy and Environment, Zimbabwe

Mr Abdelhadi Benzaghou, Algerian Government Representative – to be confirmed

Chad Government Representative – to be confirmed

Mr Godfrey Turyahikayo, Commissioner for Energy in the Ministry for Energy and Mineral Development, Uganda

16:00 Coffee Break

16:30 Session III: Africa – Impacts of Subsidies

Direct and indirect social, economic and environmental effects of applying and reforming subsidies. This session will address the impacts of energy subsidies at the regional and the national level, based on past and current experiences of several countries.

Mr Utria, World Bank representative – to be confirmed
Traditional energy sources

EDRC representative
South African case study

Mr. Wisdom Ahiataku-Tobogo, Ministry of Mines and Energy, Ghana

Dr Fatima Denton, ENDA – to be confirmed
Case study on LPG penetration in Senegal

Mr Samuel Eke, Nigerian NGO – to be confirmed
Impacts of subsidies to kerosene

18:30 Cocktail/Dinner

South Africa Ministry representative – to be confirmed
Key note speaker

Day 2

9:00 AM Session IV, Panel: Africa – Energy Subsidy Reform from a Broader Perspective
This session will aim to broaden discussions on how subsidies and subsidy reform can affect the economic environment while focusing on Africa. Panelists will briefly present their point of view to open discussions on how to maximise the benefits of subsidies while minimising negative impacts. Private and financial sector issues will be discussed during this session.

African Development Bank representative – to be confirmed

ESKOM representative – to be confirmed

Mr Ibrahima Thiam, Association Sénégalaise pour l’électrification rurale (ASER), Senegal

BP Solar Africa representative – to be confirmed

10:30 Coffee Break

11:00 Session V: Africa - Challenges for Energy Subsidy Reform

This session will address problems encountered and challenges to be relieved in order to reform energy subsidies towards sustainable development. It will examine possible ways to answer the needs of African countries, including energy market reform and regulation.

Ms Saana el Barma, Egypt Ministry of Petroleum Representative – to be confirmed

Ghana Ministry representative – to be confirmed

Ms Elisabeth Moguti, Ministry of Transport and Energy, Zimbabwe

Mr Smunda S. Mokoena, EnergyDepartment of Minerals and Energy, South Africa - to be confirmed

13:00 Lunch

14:30 Conclusions and Wrap-Up

Summary of outcomes from discussion, comments and suggestions on workshop format/content and implications for subsequent regional meetings in Asia and Latin America.

Wrap-up by Session Chairs

16:00 Adjournment


Tasks for this Quest (#reports)
1 Reporting on Energy Subsidy Reform Conference (0)
No Students/Reporters registered for this Quest
Quest Author: Africa Manager Begin Date: 12/15/2000 • End Date: 12/16/2000

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