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ENERGY AND POVERTY IN CHINA -Challenges and the Way Forward

Energy-Poverty Linkage Background in China Since 1978, the poverty rate based on the government's criteria (annual income of RMB639, equivalent to US$ 80) has declined from 250 million to 30 million in 2000, 150 million poor population (1 US$ per day) and average annual income has leapt from US$28

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ENERGY AND POVERTY IN CHINA -Challenges and the Way Forward

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    1. ENERGY AND POVERTY IN CHINA -Challenges and the Way Forward

    2. Energy-Poverty Linkage Background in China Since 1978, the poverty rate based on the governments criteria (annual income of RMB639, equivalent to US$ 80) has declined from 250 million to 30 million in 2000, 150 million poor population (1 US$ per day) and average annual income has leapt from US$280 in 1985 to US$1,290 in 2005. Up to know, there are still 27 million population, 7 million households and 29,000 villages are not equipped with the electricity supply in China. The consumption of inefficient sources of energy for residential heating and cooking-such as straw and fuelwood- still typifies the rural households energy profile. In 2004, straw and fuelwood together had a 54 percent share in rural residential energy use, while LP Gas had a toehold at 1 percent. In summary, Chin is largely driven by the economic development and focuses on the energy supply, energy-poverty are not well linked.

    3. Process Adopted for the Rapid Gap Analysis The Country report, part of a series of the Asia-Pacific region countries, primarily address energy-poverty concerns in rural China. It was an outcome of a consultative process in three-day workshop in BKK in 2005 involving key experts, UNDP RCB, UNDP CO Focal Points and National consultants to arrive at a common framework and process for a gap analysis. As the follow up of BKK Workshop and supported by UNDP CO Focal Point, National Consultants consulted with the key stakeholders including the government, academic institutions, private sectors and NGOs to determine the specific energy-poverty linkages, and related gaps and to suggest mechanisms and modalities to address these gaps. The official statistics and reports, publications and research papers are the major data sourcing.

    4. Key Challenges

    5. Key Challenges- contd

    6. Meeting the Challenges Institutional Arrangements: Engendering institutional focus on an energy-poverty to synergize energy development strategies with poverty reduction by establishing a stronger poverty reduction components in institutional arrangements of the government Programme Framework: Drawing lessons from international partners for an effective rural energy programme framework and shared it with the decentralized level in province and counties Access to Energy Service: Promoting equitable access to modern energy services notably the lower income groups and women in rural areas Efficient Energy Saving: Greater policy and technology for energy efficiency to address the indoor air pollution issues, this requires greater attention to an improved rural energy technologies

    7. Meeting the Challenges-Contd Energy Entrepreneurs: A capacity and policy leg-up to rural energy entrepreneurs by facilitating their access to technologies, training and finance Financing: A diversified financing and invest system for rural China in place including government support, financial incentives, credit loan, private and foreign investment Monitoring and Evaluation: Developing an energy-poverty framework for monitoring and evaluation by creating energy-poverty indicators and enhance existing monitoring standard and criteria Information Management: Establishing a nation-wide information management system for the energy sector Gender Mainstreaming: Mainstreaming gender concern in energy-poverty linkages by involving the Womens Federation at various levels for information dissemination notably indoor air pollution.

    8. The Way Forward Enabling Polices and Regulatory Framework to create enabling environment to address energy-poverty issues Facilitating Energy Access for the lower incomers and the poor and Entrepreneurship to access to the information and technologies Meeting Gender Concern by special attention the women in rural area, and Financial Concern by providing incentives to the rural area Strengthening the M&E framework for Meeting Energy-poverty Concerns to keep the eyes on the impacts of the framework and drawn the lessons learned from them.

    9. Acknowledgements UNDP RCB Team National Consultants International Consultant

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