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UN says Asia-Pacific energy reform could save 700 bln dlrs

by Staff Writers
Bangkok (AFP) April 28, 2008
Greater use of renewable energy and power conservation could save countries in the Asia-Pacific region 700 billion dollars by 2030, according to a UN report released here Monday.

The UN said without reform, energy infrastructure development in the region would cost nine trillion dollars.

But developing countries argued that savings have not been fully proven and require tradeoffs that will hit poorer countries hardest.

"Sustainable development of the region requires that we devote attention to our energy resources," Thai Prime Minister Samak Sundaravej told a summit on the report, which drew delegates from 49 countries, including China, India and South Korea.

"Our region urgently and seriously needs to consider energy management reform."

The UN Economic and Social Commission for Asia and the Pacific (ESCAP) is pushing leaders in the region to take cooperative action quickly, while keeping the region's poorest residents in mind.

"This is the right time for us all to sit down," said South Korean Trade Minister Kim Jong-Hoon. "We are trying to remodel the whole picture of our economies."

With government direction, greater energy efficiency in production and consumption around the world could reduce use by 40 percent by 2050, according ESCAP.

"We have a dilemma, your excellencies, and the dilemma is fossil fuels," said Noeleen Heyzer, executive secretary of ESCAP. "Heavy dependency on fossil fuels is aggravating the Asia-Pacific region's economic vulnerability."

She said rocketing oil prices and the impact of emissions on global warming mean countries urgently need to rethink their energy programmes.

Without action, she said, the poor would be increasingly unable to afford energy and oil cartels would have growing power over countries with few resources.

"This is no longer a hobby," Heyzer said. "It's an essential thing to do."

The report proposes joint Asia-Pacific energy infrastructure and standards as well as tax reform to encourage ecologically-friendly energy resources.

Heyzer said countries needed to coordinate energy and development programmes to empower the estimated 1.7 billion people in Asia who still primarily use dirty, inefficient fuel.

However, Mirza Azizul Islam, an advisor to Bangladesh's finance ministry, said the report's proposals would hurt less-developed countries in the short run.

"The tradeoffs involved in energy management policies have not been adequately considered," he said. "This can be a major source of social discontent."

Incentivising clean energy, for example, would make fuels relied on by the poor more expensive, said Ismail Qureshi, secretary of Pakistan's water and power ministry.

Less-developed countries have limited access to expensive renewable energy technology, and infrastructure projects such as hydro-electric dams can displace struggling farmers.

Ministers said they hoped sharing resources and information could help ease the transition for developing countries.

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