Energy

In September 2002 at the World Summit on Sustainable Development, the international community did not agree on clear targets for renewable energy development. To overcome this deadlock, the European Union and others launched the Johannesburg Renewable Energy Coalition, with the aim of facilitating time bound targets and effective measures for renewable energy uptake.

The "Renewables 2004" conference, convened by the German government in Bonn in June 2004, brought commitments varying in quality from the IFIs. The EIB pledged to increase its lending for renewable projects by up to 50 percent of its portfolio for electricity generation projects by 2010. The World Bank also accepted a target for lending to renewables, although it is far short of the EIR recommendations, and will only increase the very small renewables and efficiency portfolio of the Bank by 20 percent of itself annually - or about one percent of its total energy portfolio, which is less than the projected global growth in demand for energy.

In April 2004 the European Parliament approved a resolution in support of the adoption and implementation of the World Bank's Extractive Industries Review proposals to end funding for coal mining immediately and oil drilling by 2008. An overwhelming majority of Euro parliamentarians from all political groups demanded in the resolution that the World Bank Group must change its energy lending priorities and reform its social and environmental standards, in line with the EIR report recommendations, in order to make financial support for oil gas and mining conditional on 'good governance', respect for human rights by companies and governments, pro-poor achievements and sustainable development.

The EU should use its voting power at the World Bank to ensure a rapid and much more ambitious phase in of renewable energy lending as an official World Bank policy.