UN Environment Programme’s (UNEP),
9^th special session of the Governing Council/Global Ministerial Environment Forum
7-9 February 2006, Dubai

STATEMENT FROM BUSINESS AND INDUSTRY AT THE MINISTERIALCONSULTATIONS ON SUSTAINABLE ENERGY

Good morning ministers, ladies and gentlemen, colleagues.  My name is Wendy Poulton from Eskom in South Africa and I will be making this statement on behalf of Business and Industry.  We value the opportunity to present our views at this meeting.  Business welcomes and acknowledges UNEP’s contributions and work in the area of energy and environment.

Business is actively committed to contributing to reliable access to energy at affordable prices with acceptable impacts.  Engaging business and its significant operational, technological and financial capacity in energy policy development and implementation is essential for sustainable delivery and consumption of energy.  Business will continue to play an important role in energy solutions, within its sphere of responsibility and in partnership with other stakeholders.  Business operates well under sound enabling frameworks and good governance.  These conditions will support business investments in the energy sector.

Open free markets provide the best conditions for investment-in and provision-of energy.  Governments should also promote and enable investments in energy by leveraging ODA, promoting technological cooperation and exploring other innovative financing arrangements that would prioritize and support energy for sustainable development.

Energy supply and use pose political challenges related to economic growth, security, employment, investment, environmental impacts and trade amongst others.  Energy challenges should be addressed through integrated policies that also take into account a broad range of related issues including development priorities and needs; social conditions and aspirations; trade rules and environmental policies, including climate change.

The environmental impacts of energy use and production should be addressed in the context of other urgent priorities in the near and longer terms.  These include energy security, energy efficiency, economic development, climate change, quality of life, job creation and other environmental impacts.

Ongoing technological innovation may provide solutions to current challenges.  All relevant stakeholders should allocate resources to research and development of new technologies as well as their dissemination. Businesses already dedicate substantial resources in technology advancement and the development of innovation.

Business recognises that energy efficiency is critical to any comprehensive sustainable energy strategy.  Joint efforts by governments and businesses are key to continuing the promotion and enhancement of energy efficiency along the value chain.  Consumer understanding and reaction are also factors of success for addressing the energy challenge.

Long-term energy security of supply is needed to ensure that energy can foster sustainable growth. This is especially crucial considering the increase foreseen in energy demand.  Maintaining and growing the energy supply required to meet future demand will require significant investment.  Changes in energy systems can sometimes happen slowly because of the large investment base and infrastructure and long lifetime of installed capacity.

Market oriented policies can complement other regulatory and policy approaches.  Subsidies should be avoided and where applied, should not distort markets and enable access to energy for sustainable development.

Recognizing that ongoing technological innovation may provide solutions to current challenges, all energy sources should be considered as options to meet increasing energy demand.  They should be evaluated based on their merits and relative attributes recognising that each presents opportunities, issues and barriers.

We look forward to continued engagement on this issue over the next few years in this process, as well as at the CSD. Thank you once again for your attention.