The proverbial two birds that we want to hit with the same decarbonomics stone
In 2022, nearly 775 million people lived without electricity. About half of them living in fragile and conflict-affected countries. Despite global efforts made to provide access to electricity globally (over 1 billion people gained access to electricity globally since 2010), it appears that the sustainable development goal of providing universal access to electricity is unlikely to be met, as it is projected that 660 million people will still be without access to electricity in 2030 – 85% of those living in Sub-Saharan Africa.
While a globally recognized definition for energy poverty does not currently exist (which is an issue of its own), it is widely defined as insufficient energy access due to lack of supply, low affordability, limited quantity, poor quality, unreliability (or a combination of these shortcomings). Root causes of energy poverty are typically attributed to two sets of factors: high energy prices and socio-economic (such as demographic and housing) characteristics. In developing countries, energy poverty is often linked to a lack of access to modern energy sources, which are needed to provide energy services in the first place. Lack of infrastructure and well-functioning energy markets are also to blame for high energy prices and reliability problems. It is particularly interesting to note that beyond the linkage between energy poverty and low household income, it is found that higher economic development levels and larger income inequality are the most relevant factors underpinning energy poverty. Energy poverty can have a number of negative consequences, including increased health risks from using dirty fuels for cooking and heating, decreased air quality and higher GHG emissions, as well as reduced productivity.
As explored in a previous Decarb Digest blog post, successful decarbonization represents the holy grail of achievements for the climate actors and stakeholders involved in the most disheveled climate-related questions. Challenges associated with successfully decarbonizing energy systems include economic barriers to deployment of clean energy sources, lack of generation, transmission, and distribution infrastructure, as well as political resistance to transition to lower-emitting resources.
These challenges are particularly acute among marginalized communities and in the Global South, where many countries are still struggling to provide basic energy access to their population and income inequality is common. For example, in 2019, 3 billion people relied on traditional fuels such as firewood to prepare food, partially contributing to the 2.6 million annual deaths linked with indoor air pollutants emitted by open cooking fire.
Could decarbonization efforts exacerbate energy poverty in the Global South? How can policymakers navigate the duality between energy poverty and decarbonization? We aim to contribute to the dialogue by exploring the challenges of decarbonization and their potential impact on energy poverty in the residential sector.
The duality of Decarbonization and Energy Poverty
Ending energy poverty is seen as an inherently political process which finds itself at the heart of the United Nation’s (UN) 2030 agenda for Sustainable Development (SDG 7). Some studies indicate that alleviating energy poverty in developing nations could increase energy demand and GHG emissions. Others argue that reductions in energy poverty and GHG emissions can be achieved through policies targeting access and affordability of energy, as well as energy conservation. Access to reliable clean energy and efficient consumption are key parameters that can be targeted by policymakers to synergize decarbonization and energy poverty reduction policies.
Transitioning away from emissive energy sources is at the forefront of the decarbonization agenda. While increasing renewable levelized costs of energy have been experienced in 2023 globally and land-use and political intervention constraints can restrain efficient renewable deployment, the Global South has huge opportunities to propel the energy transition locally and globally. Renewables are becoming more affordable and faster to deploy than fossil fuels. Energy potential is considered “superabundant” in most of Sub-Saharan Africa, where there is currently more than 1,000 times as much renewable potential as energy demand. It is up to each country to attract the necessary investment and demonstrate its preparedness for the energy transition. Supportive energy security, social protection, and education/training policies along with robust public private partnership frameworks will enable adoption of cleaner energy sources and contribute to alleviating energy poverty.
Solar and Wind energy potential as a multiple of local energy demand
As mentioned above, billions of people around the world are still reliant on highly emissive energy sources for cooking and heating—even in the USA where over 50% of households in Alaska, Vermont, and Maine still relied on oil/kerosene for space heating as of 2016. Switching to clean cooking fuels (such as biogas, and solar-powered cookstoves) from traditional biomass fuels could drastically reduce global GHGs linked with household cooking and improve the quality of life of their users. Challenges associated with affordability of clean cooking fuels are being tackled by organizations such as the World Bank, and the Clean Cooking Alliance, but additional support is required globally to enable a swift transition. Benefits of such measures are linked to greater health and comfort, and decreased energy costs, both which address energy poverty challenges and decarbonization objectives alike.
The Role of Policymakers
Policymakers have a critical role to play in addressing the challenges of energy poverty and decarbonization. In the Global South, they can do this by investing in renewable energy, energy efficiency, and promoting clean cooking fuels.
Renewable energy technologies are becoming increasingly affordable, and they offer a clean and sustainable way to meet the world's energy needs. Governments can invest in renewable energy by providing subsidies for renewable energy technologies, and by adopting policies that promote their deployment and reliable operation.
Energy efficiency measures can help to reduce energy demand, which can help both reduce GHGs and make energy more affordable. Governments can invest in energy efficiency by providing subsidies for energy-efficient appliances and equipment, and by adopting policies that promote energy efficiency improvements in homes and businesses. In the global south, however, the focus will be on supplying electricity and fuel in the first place.
Clean cooking fuels, such as biogas and solar-powered cookstoves, along with harnessing electricity for cooking (more than 2 billion people who have access to electricity still rely on emissive biomass for cooking!) can help to reduce indoor air pollution and improve health indicators. Governments can promote clean cooking fuels by providing subsidies for clean cooking appliances, by creating policies that make clean cooking fuels more accessible, or by promoting innovative financing models that enable the diffusion of such technologies.
By taking these steps, policymakers can help to address the challenges of energy poverty and decarbonization and build a more sustainable and equitable future for all.
_________________________________________________________________________________________
Energy poverty and decarbonization are two of the most pressing challenges facing the world today. These challenges are not insurmountable. By working together, policymakers, businesses, and individuals can build a more sustainable and equitable future for all. Decarbonization does not have to lead to energy poverty in the Global South. If it is done in a way that is equitable and inclusive, decarbonization can actually help reduce energy poverty. The adoption of renewable energy technologies and clean cooking fuels, as well as the adoption of policies that promote energy efficiency, have the potential to move these agendas forward.
Comments