Remarks by Ron Nechemia the Chairman of the Board of Governors of the EurOrient Financial Group, the world first private sector global development bank
On the occasion of the
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Beijing, China, July 5, 2013
,-,#&!"&.($)$"$%/0)*'%)&((1)2'3$()*'%)#4$) *-#-%$) AS PREPARED FOR DELIVERY Excellences, Distinguished gust, Ladies and Gentlemen, It is a great honor being here today, We are gathered here today at the International Financing Conference on Sustainable Energy in Beijing Financial Assets Exchange Center (“CFAEC”), China, to underscore once again that sustainable energy is crucial asset and vital ingredient for sustainable development and for achieving the Millennium Development Goals (“MDG”) including the eradicating of extreme poverty by half by the year 2015 and for improving the conditions and standard of living for the majority of the world’s population. This event brigs together governments, investors, the private sector, civil society organizations, social enterprises and policymakers from around the world to share heir perspectives on energy opportunities and challenges, and provides platform to deliberate the shifts and innovative business models that are needed to catalyze the sector and the new horizons in energy — with Asia leading the global demand for energy. I am urging the audience in the conference to recognize the significant impact that energy security has on all aspects of sustainable and inclusive development. Energy policy choices of the past have formed the current economic and social development, environmental and strategic landscape of the States in very profound ways, and energy decisions that we make today, will have an equally profound impact on the economic and social development, environmental and strategic landscape of our generation and more so on future generations to come. Achieving a more secure future will require a more determined effort to understand the substantive aspects of energy security: the geopolitics of energy; the economics of energy; and the growing environmental imperative of balancing increasing global economic prosperity in a carbon-constrained context. Sustainable Energy for All
The world faces urgent and interconnected challenges related to modern energy services. According to the United Nations, one out of every five people — nearly 1.5 billion people — on earth has no access to electricity or the opportunities that it provides for health, safety, working, learning or operating a business, most of them concentrated in about a dozen countries in Africa and in Asia1. ! Twice as many people — nearly 3 billion — use wood, coal, charcoal or animal waste to cook their meals and heat their homes, exposing themselves and their families to smoke and fumes that damage their health and kills nearly 2 million people a year2. !
Energy and Human Development: Sustainable and inclusive development requires sustainable energy. Sustainable energy is critical asset for all aspects of human progress and for inclusive human development, Energy is central to everything we do – from powering our economies to generating jobs, from combating climate change to strengthening security,!!!!!! Access to modern affordable energy and energy related produces and modern energy services, both traditional and new and renewable energy, in developing countries is essential for the achievement of the internationally agreed upon development goals, including the Millennium Development Goals or in Post MDG Agenda, and for inclusive development, which would help to reduce poverty and to improve the conditions and standard of living for the majority of the world’s population, I wish to underscore that the dividends on progress made on universal access to affordable energy and efficient and Super-efficient Equipment and Appliance Deployment include the clean energy solutions are felt mostly by the “bottom billion”, which suffer the most from energy poverty — not having access to high-quality, safe, and affordable and sustainable energy services, and whose lives can be completely transformed with access to clean, efficient and affordable energy and energy related appliances. High-Impact Opportunities Developed countries face the combined challenge and opportunity of transforming existing infrastructure, and developing countries have the opportunity to adopt cleaner, more efficient technology from the start. The objectives: •
Ensuring universal access to modern affordable energy and energy related produces and modern energy services, both traditional and new and renewable energy to all people around the world with emphasis on 1.5 billion people who are deprived of energy at the moment;
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"Resolution 65/151 “International Year of Sustainable Energy for All” adopted by the General Assembly" "Resolution 65/151 “International Year of Sustainable Energy for All” adopted by the General Assembly!"
Doubling the rate in improvement of energy efficiency by 2030 — getting more from our existing energy resources — increases global energy resource productivity and efficiency, supports economic and social development, and reduces costs for global community; and ! Doubling the share of renewable energy in the global energy mix by 2030 — wind, water, the sun, biomass and geothermal energy — is inexhaustible and clean. Renewable energy currently constitutes 15% of the global energy mix.
These three objectives reinforce each other in many instances, and achieving the three together will power opportunity and will drive positive outcomes by extending and enhancing access to, and adoption of sustainable energy, maximizing development benefits and helps stabilize climate change. The United Nations Sustainable Energy for All Initiative The Sustainable Energy for All initiative of the United Nations aims at addressing the challenges by brings together governments, businesses and civil society groups in an unprecedented effort to transform the world’s energy systems by 2030. According to the International Energy Agency (“IEA”), financing universal access to modern energy services would cost only about three per cent of total global investments in energy. Since its launch in September 2011, Sustainable Energy for All has achieved the following3: •
More than 50 Governments from Africa, Asia, Latin America, and the Small Islands Developing States have engaged with the initiative and are developing energy plans and programmes. The majority are from developing countries that have initiated or completed energy sector assessments and gap analyses, thus laying the groundwork to scale up action in priority areas, undertake strategic reforms where needed, and attract new investments and financial support;
At least 118 countries have set policy targets or created supportive renewable energy policies; and
Businesses and investors have committed over USD $50 billion to achieve the initiative’s three objectives. Tens of billions of dollars have been committed by other key stakeholders – governments, multilateral development banks, international and civil society organizations – to catalyze action in support of the initiative.
Bank Group Contribution
"Report of the Co-Chairs of the Secretary-General’s High-level Group on Sustainable Energy for All, September 2012"
Founded in 1988, the EurOrient Financial Group is a private sector global development finance institution accredited by United Nations General Assembly on Financing for Development. Its mission is to support the economic and social development efforts of the less developed countries as they, in particular, seek to achieve the Millennium Development Goals ("MDGs") and other internationally agreed development goals. Under my leadership, the EurOrient Financial Group transforming from a relatively straightforward project financier institution into a full-fledged private sector global development bank responding to a wide range of development needs – the world’s second global development bank – positioned next to the World Bank Group and next to the preeminent regional development banks. As a global development bank, the EurOrient Financial Group seeks to foster sustainable economic growth in developing countries by financing private and public sector investment, mobilizing capital in the international financial markets, and providing advisory services to businesses and governments. The EurOrient Financial Group emphasizes six strategic priorities: •
strengthening the focus on frontier markets;
addressing climate change and ensuring environmental and social sustainability;
addressing constraints in infrastructure, health, education, and the food-supply chain
developing local financial markets
building long-term client relationships in emerging markets for all new investments, the EurOrient Financial Group articulates the expected impact on sustainable development, and, as the projects mature, the EurOrient Financial Group assesses the quality of the development benefits realized.
EurOrient’s strategic priorities are aligned to advance the United Nations’ global priorities.
The EurOrient Financial Group is developing an action agenda that will mobilize, human, technical and financial resources in support of energy access, energy efficiency and increasing the share of new and renewable energy -- focusing on the needs of infrastructure in renewable energy and energy efficiency projects that are active in any aspect of climate change mitigation and adaptation. These initiatives are at an early stage, and are likely to be handled by modifying existing programs and or to addressed by newly developed initiatives. A range of commitments and partnerships will be announced at the latter this year. “Our goal is to turn on the lights for all households and improve the standard of living to “bottom billion” by providing access to energy they need to build more productive, healthier and sustainable living.” By mobilizing action from a broad range of stakeholders in support of the “Sustainable Energy for All” initiative of the United Nations, the EurOrient Financial Group will also !
advances the United Nations initiative that brings all key actors to the table to make sustainable energy for all a reality by 2030. Ladies and Gentlemen, Good and dedicated people have for the last generation and more worked on many of these issues in recent years. Their visions have only been partially realized. I am proposing to have an open and keen dialog addressing the hard issues of investing in sustainable energy for inclusive development and about ensuring universal access to modern affordable energy and energy related produces and modern energy services, both traditional and new and renewable energy to all people around the world, because we do not want our children meeting thirty years from now debating these same topics. We want them to be enjoying the fruits of a far more safe and developed world, a world that built on more solid foundations. I wish you every success in your deliberations on what are indeed watershed issues. Thank you very much. Ron Nechemia !