Report - A9-0441/2023Report
A9-0441/2023
European Parliament

REPORT on EU development cooperation in support of access to energy in developing countries

14.12.2023 - (2023/2073(INI))

Committee on Development
Rapporteur: Caroline Roose


Procedure : 2023/2073(INI)
Document stages in plenary
Document selected :  
A9-0441/2023
Texts tabled :
A9-0441/2023
Debates :
Votes :
Texts adopted :


PR_INI

CONTENTS

Page

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

EXPLANATORY STATEMENT

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

 



 

MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on EU development cooperation in support of access to energy in developing countries

(2023/2073(INI))

The European Parliament,

– having regard to the UN 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs), in particular SDG 1 on poverty eradication, SDG 7 on ensuring access to affordable, reliable, sustainable and modern energy for all, SDG 9 on industry and infrastructure, SDG 13 on climate action, and SDG 5 on achieving gender equality and empowering all women and girls,

– having regard to Article 208 of the Treaty on the Functioning of the European Union, which has poverty reduction and, in the long term, poverty eradication, as the primary objective of the EU’s development policy, and which requires that the ‘Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries’,

– having regard to Articles 3(5) and 21 of the Treaty on European Union, outlining the Union’s commitment to a value-based approach to development cooperation to ensure the consistency of its external action, respecting the principles of the UN Charter and fostering the sustainable economic, social and environmental development of developing countries,

– having regard to the joint statement by the Council and the representatives of the governments of the Member States meeting within the Council, Parliament and the Commission of 30 June 2017 on the New European Consensus on Development – ‘Our world, our dignity, our future’[1],

– having regard to Regulation (EU) 2021/947 of the European Parliament and of the Council of 9 June 2021 establishing the Neighbourhood, Development and International Cooperation Instrument – Global Europe, amending and repealing Decision No 466/2014/EU and repealing Regulation (EU) 2017/1601 and Council Regulation (EC, Euratom) No 480/2009[2],

– having regard to the Council conclusions of 4 October 2022 on climate finance in view of the UNFCCC 27th Conference of the Parties (COP27) in Sharm El-Sheikh on 6-18 November 2022, of 25 January 2021 on climate and energy diplomacy – delivering on the external dimension of the European Green Deal, and of 28 November 2016 on energy and development,

– having regard to the Commission communication of 11 December 2019 entitled ‘The European Green Deal’ (COM(2019)0640),

– having regard to the Commission proposal of 16 March 2023 for a Regulation of the European Parliament and of the Council establishing a framework for ensuring a secure and sustainable supply of critical raw materials and amending Regulations (EU) 168/2013, (EU) 2018/858, 2018/1724 and (EU) 2019/1020 (COM(2023)0160),

– having regard to Commission Delegated Regulation (EU) 2023/1184 of 10 February 2023 supplementing Directive (EU) 2018/2001 of the European Parliament and of the Council by establishing a Union methodology setting out detailed rules for the production of renewable liquid and gaseous transport fuels of non-biological origin[3],

– having regard to the Commission communication of 16 March 2023 on the European Hydrogen Bank (COM(2023)0156),

– having regard to the Commission communication of 8 July 2020 entitled ‘A hydrogen strategy for a climate-neutral Europe’ (COM(2020)0301),

– having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 18 May 2022 entitled ‘EU external energy engagement in a changing world’ (JOIN(2022)0023),

– having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 1 December 2021 entitled ‘The Global Gateway’ (JOIN(2021)0030),

– having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 9 March 2020 entitled ‘Towards a comprehensive Strategy with Africa’ (JOIN(2020)0004),

– having regard to the report of 5 January 2023 of the UN Human Rights Council’s Special Rapporteur on the issue of human rights obligations relating to the enjoyment of a safe, clean, healthy and sustainable environment entitled ‘Women, girls and the right to a clean, healthy and sustainable environment’,

– having regard to the new partnership agreement between the European Union and the members of the Organisation of African, Caribbean and Pacific States (OACPS) (the Samoa Agreement), which will enter into force once the European Parliament consents to it and it is ratified by the Parties,

– having regard to the 1992 United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol thereto, to the 21st Conference of the Parties (COP21) to the UNFCCC in Paris in December 2015, to the adoption of the Paris Agreement, the first-ever universal, legally binding global climate deal, and to the Intergovernmental Panel on Climate Change’s Fifth Assessment Report on Climate Change,

– having regard to the Intergovernmental Panel on Climate Change’s special report of 24 September 2019 on the ocean and cryosphere in a changing climate,

– having regard to the UN Declaration on the Rights of Indigenous Peoples, adopted by the UN General Assembly on 13 September 2007,

– having regard to the UN Environment Programme’s 2022 Emissions Gap Report, and to its second synthesis report on fossil fuel production (Production Gap Report 2021)[4],

– having regard to the UN Guiding Principles on Business and Human Rights, endorsed by the UN Human Rights Council on 16 June 2011,

– having regard to the OECD Guidelines for Multinational Enterprises and to the OECD Due Diligence Guidance for Responsible Business Conduct,

– having regard to the 2018 policy brief of the UN Department of Economic and Social Affairs entitled ‘Policy Brief #12: Global Progress of SDG7 – Energy and Gender’,

– having regard to the 2022 report by the International Renewable Energy Agency entitled ‘World Energy Transitions Outlook 2022: 1.5 °C Pathway’[5],

– having regard to the 2023 joint report by the World Bank, the International Energy Agency, the International Renewable Energy Agency, the UN and the World Health Organization entitled ‘Tracking SDG 7: The Energy Progress Report, 2023’[6],

– having regard to the 2021-2027 African Union Green Recovery Action Plan, which provides a comprehensive strategy designed to promote green initiatives, reduce greenhouse gas emissions, protect the environment and enhance resilience to climate change[7],

– having regard to the African Leaders Nairobi Declaration on Climate Change and Call to Action of 6 September 2023,

– having regard to the African People’s Climate and Development Declaration 2023,

– having regard to its resolutions of 14 March 2023 on Policy Coherence for Development[8], of 25 March 2021 on a new EU-Africa Strategy – a partnership for sustainable and inclusive development[9], of 15 January 2020 on the European Green Deal[10], of 1 December 2016 on access to energy in developing countries[11] and of 2 February 2012 on EU development cooperation in support of the objective of universal energy access by 2030[12],

– having regard to the Action Plan on Gender Equality and Women’s Empowerment in External Action 2021–2025 (GAP III),

– having regard to the May 2022 report of the Economic Commission for Latin America and the Caribbean entitled ‘Energy in Latin America and the Caribbean: access, renewability and efficiency’,

– having regard to the report of the World Commission on Dams of 16 November 2000 entitled ‘A new framework for decision-making’,

– having regard to Rule 54 of its Rules of Procedure,

– having regard to the report of the Committee on Development (A9-0441/2023),

A. whereas energy is at the heart of all SDGs, but The Sustainable Development Goals Report 2023[13] concludes that the world is still not on track to achieve universal energy access; whereas energy is an enabling factor in development, particularly the development of agriculture, business, communication, education, healthcare and transportation, and in the functioning of the state;

B. whereas SDG 7 stipulates the aim to achieve sustainable access to affordable and clean energy by 2030, notably by calling for greater international cooperation to facilitate access to clean and renewable energy research, infrastructure and technology and to promote investment to these ends; whereas it is essential to strengthen diplomatic efforts to foster greater political ambition in order to effectively address and end energy poverty;

C. whereas, according to the UN, as of mid-2023, approximately 733 million people worldwide, 80 % of whom live in sub-Saharan Africa, still do not have access to affordable, reliable, clean, high-quality energy[14];

D. whereas access to energy varies greatly across developing countries; whereas 52 % of the population of sub-Saharan Africa lives without access to electricity and it is the only region in the world where the proportion of people without electricity is increasing; whereas this figure conceals deep disparities, with only 30.4 % of the region’s rural population, compared to 80.7 % of its urban population, having regular access to energy; whereas education is recognised as one of the most essential components of poverty reduction; whereas access to electricity also supports quality education, but only 47 % of schools in sub-Saharan Africa have electricity;

E. whereas the lack of access to electricity in urban or peri-urban environments affects the populations of large irregular settlements, as well as forcibly displaced people and refugees; whereas even when there is access to electricity, the quality of services is often poor;

F. whereas access to affordable, reliable, clean, high-quality energy is even more difficult in countries affected by conflicts and natural disasters; whereas even in regions that have better access to energy, such as Asia and the Pacific or Latin America and the Caribbean, there are great inequalities between countries and among populations;

G. whereas the energy crisis triggered by Russia’s invasion of Ukraine continues to take a heavy toll, with high energy prices hitting the most vulnerable the hardest, in particular in developing economies;

H. whereas access to energy is essential for humanitarian and development organisations to deliver efficient humanitarian aid, particularly medical and emergency care;

I. whereas current projections suggest that in 2030, about 660 million people worldwide will not have access to electricity and around one billion will lack access to clean cooking unless appropriate action is taken;

J. whereas better access to affordable and clean energy will unlock sustainable economic growth, attract businesses and entrepreneurship and improve human health, well-being and security;

K. whereas energy poverty, defined as the lack of sustainable, clean and safe energy sources, is, among other things, a gender issue, with women and girls spending, on average, up to 18 hours a week collecting cooking fuels[15];

L. whereas women are greatly under-represented in the energy sector workforce worldwide, particularly in management roles; whereas engaging women as active agents in renewable energy solutions, in line with the EU’s GAP III, will improve sustainability and increase positive gender outcomes;

M. whereas traditional cooking fuels (solid biomass, kerosene and coal) are the main contributors to carbon emissions, deforestation and climate change and represent a threat to people’s health; whereas 2.4 billion people worldwide rely on these fuels, resulting in around 3.7 million premature deaths a year, with women and children being the most affected; whereas in 2019, Africa alone recorded 700 000 deaths from household air pollution;

N. whereas EU funding for clean cooking fuels is marginal; whereas even when clean cooking strategies exist, implementation is weak and little finance is available, so even modest gains are hard to obtain, and the adoption and sustained use of improved cookstoves remains low; whereas less than 10 % of people who lack access to clean cooking live in countries that have effective policies and sufficient funding to achieve universal access by 2030;

O. whereas the COVID-19 pandemic and the energy price increase have slowed progress on expanding access to clean cooking; whereas in developing countries that rely heavily on biomass for cooking, the EU should support alternatives to the consumption of wood and promote solutions such as solar cookers;

P. whereas the lack of access to clean cooking increases the time women and girls spend cooking; whereas this reinforces the unequal distribution of domestic work between men and women; whereas it is estimated that access to clean cooking would give women and girls an average of 1.5 more hours per day, which they could dedicate to leisure and/or education;

Q. whereas developing countries have an abundance of renewable energy sources, but often lack an enabling policy and regulatory framework and the necessary industrial and technological conditions for sustainable energy development and use; whereas they also face multiple challenges, such as climate change, over-indebtedness and rapid demographic growth, which all affect energy demand and consumption; whereas countries such as Namibia and Angola are involved in ambitious renewable energy projects; whereas some developing countries have made notable progress in the field of energy access, such as Senegal, Rwanda and Kenya; whereas the different contexts in each country need to be taken into account in order to achieve breakthroughs on energy access, with appropriate levels of political will and EU support;

R. whereas the EU has a long tradition of energy cooperation in Africa; whereas the EU together with its Member States provided the vast majority of Official Development Assistance financing for SDG 7 projects in Africa, amounting to EUR 13.8 billion between 2014 and 2020; whereas this is still not enough and more effort needs to be made; whereas an estimated 53 % of the disbursements were in the form of loans, but this additional debt reduces these countries’ ability to invest in the SDGs, including SDG 7; whereas in 2023, 21 low-income countries in Africa are in, or are at risk of, debt distress;

S. whereas financial flows for energy remain concentrated in a small group of countries, often leaving least developed countries behind; whereas in terms of geographical targeting, only three of the top ten beneficiaries are least developed countries, which shows that resources for expanding energy access and fighting energy poverty have not been allocated by order of priority;

T. whereas the energy transition is severely and persistently underfunded in developing regions, in particular in the least developed countries; whereas the Natural Resource Governance Institute defines the resource curse as the failure of many resource-rich countries to benefit fully from their natural resource wealth, and for governments in these countries to respond effectively to public welfare needs[16]; whereas excessive reliance on exports of fossil fuels entails a risk of low economic diversification;

U. whereas the EU should increase the financing of renewable energies in developing countries, particularly in the new geopolitical context created by Russia’s invasion of Ukraine, while addressing corruption and weak institutions, which exacerbate the problems of underfunding, particularly in least developed countries;

V. whereas most EU-funded projects aim to promote electricity generation, yet the distribution segment is the weakest, despite being essential in achieving SDG 7; whereas many developing countries continue to rely on coal as the primary energy source for electricity generation;

W. whereas the countries most affected by the negative consequences of climate change bear the least responsibility for emissions; whereas Africa is home to almost 18 % of the world’s population but accounts for less than 6 % of global energy use; whereas Africa is responsible for only 3 % of the world’s energy-related CO2 emissions; whereas the countries that make up the G20 account for 80 % of global emissions;

X. whereas the Africa-EU Energy Partnership was renewed in February 2022 to reflect the African Union’s Agenda 2063 and the EU’s priorities on climate change, energy security, REPowerEU and the Global Gateway, which have as their objective the promotion of renewable energy generation and distribution, including for export to Europe; whereas an investment package of approximately EUR 150 billion was announced to support the continents’ common ambitions, as set out in the 2030 Agenda and the African Union’s Agenda 2063, with the aim, among others, of ensuring an energy transition that is cost-effective, modern, efficient, reliable, fair, just and equitable;

Y. whereas the EU’s just energy transition partnership with South Africa is an example of the EU’s willingness to position itself as a global leader in the just energy transition, thus contributing to the external dimension of the EU energy and climate strategy and promoting the ambition of the European Green Deal worldwide;

Z. whereas the energy autonomy of Small Island Developing States, building on their high renewable energy potential, should remain a clear objective;

AA. whereas what is labelled ‘low-carbon hydrogen’ may also include hydrogen produced using nuclear power and natural gas, meaning it is not necessarily emission-free; whereas green hydrogen from renewable sources is the only type of hydrogen that can truly contribute to climate neutrality in the long term;

AB. whereas REPowerEU sets a target of importing 10 million tonnes of green hydrogen annually by 2030; whereas to this end, the Commission signed memorandums of understanding for strategic renewable hydrogen partnerships with Namibia and Egypt in November 2022, among other initiatives;

AC. whereas according to the International Energy Agency’s Global Hydrogen Review 2023[17], 99 % of the hydrogen produced worldwide is made from fossil fuels;

AD. whereas green hydrogen has the potential to accelerate the path to the decarbonisation of industrial production in partner countries, provided that it does not slow down the local energy transition and is part of a broader strategy to reduce the overall consumption of energy in developed countries in order to respect planetary boundaries; whereas at the same time, however, due account must be taken of the fact that the necessary infrastructure for green hydrogen is capital- and technology-intensive, that the long-distance transport and storage of hydrogen is energy-intensive and expensive, and that the large-scale production of green hydrogen requires vast amounts of land and water;

AE. whereas the 2030 and 2050 climate objectives will not be achieved without the decarbonisation of key hard-to-abate sectors; whereas importing green hydrogen from non-EU countries is an important part of new EU strategic partnerships; whereas according to the International Energy Agency’s Global Hydrogen Review 2023, cost challenges are threatening the long-term profitability of the deployment of hydrogen production; whereas the deployment of hydrogen production could entail the risk of extending fossil fuel use and extractivist practices, including the possible large-scale appropriation of land, water and energy in developing producer countries;

AF. whereas critical raw materials play a pivotal role in ensuring the accessibility and affordability of clean energy technologies for all, whereas the EU is in the process of establishing a coherent framework to ensure their continuous, secure and responsible supply, while upholding human rights and supporting local development;

AG. whereas decentralised mini-grid and off-grid renewable energy offers good solutions for remote communities, particularly in terms of job creation, education and health, but needs to be accompanied by public support to create a viable and responsible business model;

AH. whereas the expansion of renewables based on solar and wind power, the production of renewable hydrogen and the construction of hydroelectric dams also raise challenges as they require large areas of land, thus possibly interfering with existing land use and local needs, in particular regarding access to water, and may cause the displacement of local and indigenous communities, as well as harming ecosystems and natural habitats; whereas land and sea areas that could be used for renewable energy generation need to be identified while taking into account respect for biodiversity, the local economy and the consent of indigenous populations;

AI. whereas the transition to renewables is projected to create more employment in the renewables sector; whereas new renewable technologies have the potential to generate economic opportunities, which in turn have the ability to support the achievement of the right to livelihood and decent work; whereas Africa has a promising future in renewable energy systems, having 60 % of the world’s best solar resources yet only 1 % of installed solar capacity; whereas Latin America is one of the world’s leading regions for renewable energy use and generation;

AJ. whereas according to the International Energy Agency, global hydropower capacity is set to increase by 17 % between 2021 and 2030; whereas most untapped hydropower potential lies in developing economies across Africa, Asia and Latin America; whereas, however, large-scale hydropower projects are associated with negative social and environmental impacts ranging from the displacement of vulnerable human populations to the destruction of unique biodiversity; whereas hydropower raises new challenges in the context of climate change, which will dramatically increase the frequency of floods and droughts on the rivers where hydropower projects operate, increasing risks to both the projects’ safety and their capacity to generate electricity;

AK. whereas the EU and partner countries share a common but differentiated responsibility to achieve a sustainable energy transition; whereas EU support for renewable energy projects must, in the first place, meet the local population’s needs before supporting export;

AL. whereas the stated desire of certain developing countries to exploit their hydrocarbon resources should also be analysed in the light of the EU’s push for a global pledge at COP28 to phase out fossil fuels; whereas the usage of natural resources for energy generation has the potential to create economic opportunities, however, by prioritising the export of renewable energy, developing countries could potentially jeopardise their domestic energy transition and increase the share of fossil fuel consumption in their own electricity mix;

AM. whereas according to the World Resources Institute, 25 % of the world’s population faces extremely high water stress each year; whereas water is central to growing crops and raising livestock, generating electricity, maintaining human health, fostering equitable societies and meeting the world’s climate goals;

AN. whereas agri-food systems consume about 30 % of the world’s energy and a third of the sector’s greenhouse gas emissions come from energy use; whereas the energy transition and the transformation of agri-food systems are intertwined;

Promote universal access to clean energy

1. Recalls that access to universal, affordable and sustainable energy is a basic human right and a precondition for achieving the SDGs and attaining the objective of leaving no one behind; recognises, to this end, the role of public and private financing; stresses that a net-zero carbon future and the development of renewables must go hand in hand with economic diversification, green industrialisation, decarbonisation, poverty reduction and a human rights-based approach;

2. Stresses that ensuring a stable energy supply is not only an economic and logistical issue, but also a geopolitical one; recalls that Russia’s war of aggression against Ukraine has had a severe impact on global energy markets, particularly in developing countries, and that coordinated action is still needed to ensure stable energy supplies and affordable prices;

3. Calls for the EU to foster access to renewable energy in developing countries through policy, regulatory and administrative support, including capacity-building and transfers of technology; encourages partnerships that move away from the exploitation of fossil resources and focus on clean energy use; stresses the need to make sure that green investments contribute to socio-economic development and greater participation by developing countries in the new net-zero energy geopolitical landscape;

4. Highlights the need to develop solutions to help deliver renewable energy deployment in developing countries, including marine and river energy, while protecting biodiversity; stresses the significant potential for the installation of offshore renewable energy generation facilities in developing countries; emphasises the need for holistic management of maritime areas, involving all relevant stakeholders and respecting the consent of local communities;

5. Strongly encourages developing countries to commit to energy justice through their regulatory frameworks, which should ensure local acceptance, community participation, land rights protection and adherence to internationally recognised human rights standards, with the aim of securing access and affordable energy for all; underlines the necessity of linking energy partnerships to the adoption of regulatory frameworks and of providing technical assistance for their enactment;

6. Points out that energy security requires a gender-specific approach; stresses that energy poverty disproportionately affects women and girls; highlights their daily involvement in collecting firewood and charcoal far from their homes; calls for the inclusion of women as active agents in the energy transition process, including in marine conservation areas;

7. Calls for the EU to step up its technical support in mainstreaming gender in the energy transition, including by prioritising gender-responsive energy projects that involve women-led energy organisations and businesses and also ensure local ownership, paying particular attention to least developed countries and middle-income countries that suffer from significant intra-country inequalities in terms of access to energy and clean cooking; stresses the importance of gathering gender-disaggregated data on access to energy to guide the EU’s external action regarding energy; points out that energy poverty also affects minorities and marginalised communities;

8. Is worried about the health and environmental consequences of household fuelwood emissions, such as respiratory and cardiovascular diseases and cancer, forest degradation, greenhouse gas emissions and biodiversity loss; draws attention to the risk associated with the increasing use of unclean cooking fuels to serve the energy needs of the growing population, particularly in sub-Saharan Africa;

9. Stresses that in many places, people living in extreme poverty no longer have access to firewood and that, consequently, they heat and cook using other materials found around the home or nearby, such as tyres and other substances that are harmful to health; highlights, against this backdrop, that women and girls are disproportionately affected by household air pollution;

10. Points out that the pace at which access to clean cooking fuels is currently being expanded in many developing countries is not fast enough to meet the related targets under SDG 7 by 2030; acknowledges the multifaceted challenges related to the adoption of clean cooking and appropriate cookstoves that are in line with WHO standards; calls for awareness to be raised of the health risks linked to household air pollution from traditional cooking practices and of the benefits of alternatives; urges the EU to support financially, advocate for and encourage national action in partner countries;

11. Further calls for the EU to incorporate access to clean cooking as a priority within its energy partnerships and its multiannual indicative programmes with developing countries and in the programming of cooperation at local, regional and national levels; stresses the importance of consultation with civil society on the ground, particularly with women-led organisations, with a view to achieving gender equality and promoting a more equal division of domestic and care work between men and women in line with the concept of a care society; points out the opportunities presented by Global Gateway initiatives such as the Modern Cooking Facility for Africa and Strengthening the Entrepreneurial Environment for Clean Cooking initiatives;

12. Calls, furthermore, for the EU to pay particular attention to infrastructure and utilities, including construction of and access to sewage systems, and household or community access to wells or water purification systems;

13. Regrets the devastating impact of the lack of access to electricity on the basic needs of populations; calls for the EU and its Member States to make electrification a priority in their cooperation and partnerships with developing countries; stresses, in particular, the need to invest in generation capacity, especially in sub-Saharan Africa, in order to achieve the objective of universal access to energy;

14. Draws attention to opportunities for access to alternative energies, such as unexploited geothermal energy resources; points out that support with the affordability of energy costs is crucial for expanding access to electricity, particularly in Africa, where 30 % of the population cannot afford an essential bundle of electricity services;

15. Expresses concern over the increasing energy needs among refugees and internally displaced persons living in camps; regrets the fact that in isolated areas and humanitarian settings, energy insecurity prevents local health clinics and schools from operating fully;

16. Stresses the need to increase the humanitarian aid budget line in the context of the revision of the multiannual financial framework in order to meet humanitarian needs, including by stepping up financial assistance for ensuring energy provision in camps, including through green off-grid, mini-grid and renewable energy projects, so as to guarantee that humanitarian organisations on the ground can provide basic humanitarian aid, particularly medical and urgent care;

Support the energy transition in line with the principle of policy coherence for development

17. Urges the EU and its Member States to ensure policy coherence for sustainable development across the EU external energy agenda, which should be tailored to local specificities and needs;

18. Reiterates its commitment towards energy justice; calls for the EU to support developing countries in implementing rights-based renewable energy regimes that effectively contribute to their sustainable development; believes that the principle of free, prior and informed consent for affected communities is a precondition for a successful green and just energy transition; highlights the importance of promoting energy efficiency and local skills and of encouraging technology innovation, technology transfer and technical cooperation in such energy transition projects;

19. Stresses the need for the EU to support developing countries, where required, in establishing or reinforcing regulatory frameworks that guarantee energy distribution and universal service across their territories, as well as good governance capacity and transparency in any energy transition projects; calls for the EU to enhance technical assistance to reform electricity systems; calls, furthermore, on the Commission to report on progress achieved in improving energy access and energy sector regulation through dedicated EU projects and investments in partner developing countries;

20. Highlights the potential risks of land-use and water-use conflicts, particularly forced resettlement and expropriation for large-scale renewable energy installations; urges the EU, through its partnerships, to support governments of developing countries to:

a) conduct independent and unbiased mapping of traditional land and water use, including for temporal grazing, indigenous cultural heritage and high-value biodiversity systems, prior to the development of renewable energy projects, with a view to encouraging sustainable land-use planning and assessing the environmental and social impact;

b) seek free, prior and informed consent from the local communities, while guaranteeing their right to say no, and their rights to justice, redress and compensation or remuneration;

c) define environmental and social criteria and responsible business practices in line with international regulatory frameworks and ensure their compliance through mechanisms for oversight and grievance;

d) ensure the protection of climate activists;

e) facilitate the sharing of knowledge and best practices between developing countries and regions that have successfully managed land-use conflicts related to energy projects;

21. Notes that for some large-scale green energy projects (such as wind and solar power), like those being set up in dryland areas, for example, adequate consultation with the customary land users (such as pastoralists) is essential; recalls that traditional communal rights have a rather weak legal status and are often not implemented, which can potentially increase the risk of land grabbing; calls, against this backdrop, for the EU and its partner countries to recognise and protect indigenous people’s rights to customary ownership and control of their lands and natural resources, as set out in the UN Declaration on the Rights of Indigenous Peoples and International Labour Organization Convention 169, and to comply with the principle of free, prior and informed consent;

22. Recommends that EU Member States that have not done so should ratify International Labour Organization Convention 169 on indigenous and tribal peoples;

23. Acknowledges the impact that water-intensive energy conversion practices, such as hydropower plants and hydrogen production, can have on agricultural communities; highlights the adverse effects of hydropower dams on rivers and biodiversity, particularly in estuaries, as outlined in the report of the World Commission on Dams of 16 November 2000, among others; stresses, however, the potential to develop osmotic power, particularly in estuaries and deltas, to provide solutions for the generation of renewable energy;

24. Recalls that large hydropower projects in developing countries often face a range of challenges, including prohibitive upfront costs, major cost overruns and delays, difficulties in attracting finance, social and environmental footprints, vulnerability to climate change and some poor track records when it comes to delivering the promised power; stresses the importance of promoting sustainable hydropower projects by conducting comprehensive environmental and social impact assessments and ensuring meaningful community participation; is of the opinion that, where possible, priority should be given to other small-scale and different types of renewable energy projects;

25. Stresses that according to the recommendations of the report of the World Commission on Dams of 16 November 2000, any planning of dams should be evaluated according to five values: equity, efficiency, participatory decision-making, sustainability and accountability; highlights, more broadly, that the decision-making process with regard to dams should fully take into account the notion of human rights, as enshrined in the 1948 Universal Declaration of Human Rights and the related covenants adopted thereafter, so as to resolve complex issues surrounding water, dams and development; underlines that the EU should work within the remit of its partnerships with developing countries to ensure that the communities affected by dam projects are adequately compensated and provided with appropriate livelihood restoration measures;

26. Is concerned about the fragility of facilities in the face of extreme weather events, as highlighted by the recent floods in Libya, which swept away entire neighbourhoods and damaged critical infrastructure; insists on the paramount objectives of SDG 9, which seeks to build resilient infrastructure, promote sustainable industrialisation and foster innovation;

27. Notes, with concern, that Africa hosts an increasing number of fossil fuel projects, which risks preventing it from making a timely leap to renewable energy; further notes that although Africa is home to 18 % of the world’s population, it only accounts for 6 % of global energy consumption; recalls that a major portion of current oil, gas and coal production in Africa is destined for export, while the continent continues to be plagued by energy poverty; insists that it is necessary to prioritise investment in sustainable renewable energy infrastructure in Africa, particularly in rural and marginalised communities, through the establishment of decentralised energy systems and microgrid networks;

28. Calls for the EU to encourage the development of energy systems that do not involve or rely on the expansion of existing or new fossil fuel projects, in line with the recommendations of the International Energy Agency; stresses the importance of win-win partnerships that also benefit exporting countries and their populations in terms of renewable energy;

29. Denounces the double standards whereby private and public financial institutions in developed countries are increasingly making pledges to reach carbon neutrality by 2050 while financing the development and expansion of fossil fuels; underlines that calls for low- and middle-income countries to reduce their dependence on coal will not be effective as long as developed countries continue to rely decisively on other fossil fuels;

30. Recalls that renewables-based alternatives can increasingly provide a cheaper, more accessible, inclusive and reliable source of energy; stresses the role of renewable energy in increasing the adaptation and efficiency of agri-food systems; calls for the EU and its Member States to make the use of renewables in agri-food systems a priority in their partnership agreements with non-EU countries;

31. Recommends carrying out a joint energy transition planning exercise within the framework of the partnership between the EU and the African Union, drawing on the African, Caribbean and Pacific-EU Joint Parliamentary Assembly and African civil societies, while respecting the sovereignty of African nations; recommends drawing up guidelines on the fair sharing of investments, revenues, technologies and skills;

32. Calls for the EU and its Member States to include education and training programmes for the local population in their energy partnerships with non-EU countries in order to support the energy transition on the ground and create employment opportunities for local communities; likewise calls for the EU to step up scientific cooperation with developing countries on access to research and renewable energy technologies; believes that the generation matrix of renewable energies should be changed in order to move away from a purely extractivist perspective;

33. Recalls that the 2021 Glasgow Statement on International Public Support for the Clean Energy Transition commits signatories to ending new direct public support for the fossil fuel energy sector; calls for the EU and its Member States to lead by example and to stop financing fossil fuel projects;

Green hydrogen

34. Stresses the crucial role of green hydrogen as a tool to decarbonise the energy system, achieve net-zero emissions worldwide by 2050 and attain the Paris Agreement goals, but recalls the importance of life cycle assessments that take into account the production and transport modes used;

35. Warns against the potential risk of a new ‘green hydrogen curse’ that would foster developing countries’ reliance on exports and could crowd out investments in the development of local energy markets; states that the green hydrogen industry can play a crucial role in the development of resource-rich developing countries if certain factors are present, such as good governance, the implementation and monitoring of a sound legal framework, corruption prevention, functioning rule of law, and transparency with regard to financial flows;

36. Highlights the need to address global infrastructure related to the production, storage, transport, distribution and consumption of green hydrogen, the long-distance transport costs and climate impact, the limited investments and financial capacities and the risks linked to weak institutions and corruption in some developing countries;

37. Calls for the EU to support, notably through the Global Gateway initiative, win-win partnerships that benefit both importing and exporting countries and their populations; calls, to this end, for the EU to support the development of a green hydrogen value chain when it brings equal social and economic benefits to exporting countries, notably in terms of the training and re-skilling of the local population, job creation, the decarbonisation of hard-to-abate industrial activities and access to cleaner mobility and energy;

38. Calls for the EU to support economic diversification and domestic access to electricity and water, with full respect for ecosystems and with a view to reducing excessive reliance on exports of fossil fuels; emphasises that enhanced collaboration between EU and partner country businesses and SMEs, combining the expertise of different like-minded partners, can create a pathway to sound entrepreneurship in the green hydrogen sector;

39. Acknowledges that the expansion of green hydrogen can have negative social and environmental impacts in the Global South, in particular as it relies on mining and the use of raw materials and rare earths, which require large quantities of fresh water and engender water pollution; stresses the importance of developing a global resource governance system that prioritises sustainability, efficiency and circularity, with a view to reducing global demand for virgin materials, while also recognising the challenges in achieving this;

40. Emphasises the need for a systemic approach to assessing the local opportunities and consequences of green hydrogen production for European needs in developing countries; stresses that the EU should ensure the sustainability of the extracted, processed and recycled critical raw materials that are fundamental for hydrogen and the other net-zero technologies;

41. Notes, with concern, the conflicting use of water associated with mining and the development of large-scale renewable energy plants, such as green hydrogen facilities; reaffirms that access to water is a fundamental human right; underlines the necessity of enhancing water infrastructure in regions where mining and renewable energy plants are prominent by investing in water treatment facilities and water recycling systems;

42. Stresses the need to regulate water as a resource for green hydrogen production in a sustainable way, particularly in arid regions, including by implementing regulations that mandate sustainable water sourcing techniques, efficient water usage, and the minimisation of wastewater discharge, so that it does not jeopardise local populations’ access to water or drive up water costs;

43. Notes the proliferation of desalination plants to deal with water scarcity; acknowledges that desalination plants can benefit local communities and the domestic economy, but points out that seawater desalination can have major environmental impacts, in particular on marine biodiversity; calls for the promotion of a sustainable approach to water desalination and of solutions that have no impact on coastal areas, such as deep sea desalination; highlights that reducing water use and recycling or reusing treated wastewater is often less expensive than desalination;

44. Highlights the potential risks of water grabbing and water pollution associated with foreign direct investments in large-scale land acquisitions for renewable energy; calls for the EU and its Member States to enact mandatory water-related due diligence and reporting standards for corporations;

45. Insists that green hydrogen strategies must follow strong social and sustainability standards; calls for the EU to establish appropriate monitoring frameworks in its partnership agreements that allow for the assessment of their broader impact on SDG performance, notably by identifying environmental, social and governance indicators and setting measurable targets; calls for mandatory environmental impact studies to be conducted, including for desalination, and for biodiversity hotspots to be excluded as sites for green hydrogen facilities; believes that green hydrogen production should demonstrate reliance on materials sourced under environmental and human rights standards for extractive activities (for instance, from countries that are signatories to the Extractive Industries Transparency Initiative);

46. Urges the Commission to set up an inclusive governance framework for partnership agreements that includes civil society organisations to ensure that the ‘no harm’ principle is respected vis-à-vis local communities and that global human rights standards are met;

Scale up funding for a just energy transition

47. Stresses that EU financing for renewable energy should be in line with the principles of equity, sustainability and climate justice, which could comprise, among other things, debt assistance, debt relief and cancellation, debt restructuring and the Loss and Damage Fund;

48. Stresses that investments in renewable hydrogen produced by non-EU countries should be based on international due diligence principles, including but not limited to the United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and the OECD Due Diligence Guidance for Responsible Business Conduct;

49. Calls for the EU and its Member States to increase the amount of Official Development Assistance devoted to the energy sector, especially under Heading 6 of the next multiannual financial framework, and particularly in Africa, while prioritising grants over loans and reorienting financing towards countries with lower rates of access to electricity with the aim of supporting their clean and renewable energy transitions in line with the 2030 Agenda for Sustainable Development;

50. Encourages the development of public and private partnerships as well as programmes for facilitating the transfer of knowledge and green technologies; highlights that many African countries’ electricity sectors have specific characteristics (such as sharp growth in demand, small grids, fragile national utilities and customers’ limited ability to pay) that have to be taken into account;

51. Stresses that access to financing for a just energy transition must be simplified and accelerated for developing countries; highlights that the EU can offer innovative solutions to speed up the green transition and increase the global share of renewables; calls, to this end, for the EU and its Member States to consider debt-for-climate swaps so that debtor developing countries can use the owed money to finance climate change adaptation and mitigation projects;

52. Calls, more broadly, for a long-term debt-for-climate swap mechanism to be made operational within the framework of the G20 Debt Service Suspension Initiative and for IMF Special Drawing Rights to be rechannelled;

53. Calls for the EU and its Member States to increase the funding devoted to helping developing countries to adapt to climate change, making energy systems more resilient against climate risks; underlines the relevance of green energy in agroforestry and climate change adaptation projects, such as the Great Green Wall;

54. Urges the Commission to increase the number of programmes under the Global Gateway initiative that prioritise basic access to electricity and clean cooking, particularly in the countries most in need; stresses the importance of the private sector in scaling up funding for basic access to energy and clean cooking while guaranteeing public access and strengthening national public energy suppliers; calls, to this end, on the Commission to use the European Fund for Sustainable Development Plus as an instrument to support private-sector investments in developing countries in order to strengthen the energy infrastructure and provide better access to energy and clean cooking for domestic use;

55. Urges the EU to support developing countries in gradually phasing out fossil fuel subsidies and to focus on efficient, modern and affordable cooking technologies; urges the mobilisation of investments and creating enabling environments to drive growth of a robust clean cooking industry;

56. Calls for the EU and European development finance institutions to:

a) direct investments into the distribution segment, in particular rural electrification, and to prioritise decentralised, small-scale and off-grid renewable energy systems when such solutions are more appropriate than grid extension for enabling rural populations to access electricity;

b) coordinate investments among different institutions to maximise the impact and avoid the duplication of efforts;

c) ensure that independent and unbiased human rights impact assessments are carried out and that all required governance, social and environmental safeguards and remedies are duly implemented and monitored, including the human rights and land tenure guidelines;

d) ensure that local communities are included and properly informed throughout the entire project planning and delivery phases;

e) implement and strictly apply the rights-based approach, providing effective complaint and redress mechanisms, in compliance with international standards of responsible business practices, and requiring impact studies for projects, particularly with regard to climate change, inequalities and the displacement of local populations, including in projects under the Global Gateway initiative;

f) ensure that any dam projects with approved financing respect the World Commission on Dams’ guidelines;

g) support local and regional electricity interconnection projects;

h) offer technical support and capacity-building initiatives to empower developing countries to implement clean energy projects effectively;

57. Invites the Commission to provide disaggregated data on the amount of investments in energy access in order to track how much is allocated to SDG7, as well as to provide data on the key performance indicator ‘Renewable energy generation capacity installed (MW) with Union support’ identified under the Neighbourhood, Development and International Cooperation Instrument – Global Europe;

58. Welcomes the 2023 COP28 Presidency programme priorities, which are to fast-track the energy transition to phase out greenhouse gas emissions by 2030 and to globally promote a people-centred approach to climate finance and energy infrastructure projects;

59. Calls for the EU to play a key role in negotiations on mitigation measures for developing countries in order to combat the harmful effects of the use of polluting fuels, while promoting sustainable and clean energy development;

 

° °

60. Instructs its President to forward this resolution to the Council, the Commission, the European External Action Service and the European Investment Bank.



 

EXPLANATORY STATEMENT

The world continues to advance towards sustainable energy targets but not fast enough. At the current pace, about 660 million people will still lack access to electricity and close to 2 billion people will still rely on polluting fuels and technologies for cooking by 2030. Rates of progress vary significantly across regions. Most Sub-Saharan countries are lagging behind to achieve universal access to energy. Africa is home to almost 18 % of the world’s population but accounts for less than 6 % of global energy use, with 600 million people or 43 % of the population without access to electricity. Most of those people live in rural areas and informal settlements or are displaced people or refugees. And even when there is access to electricity, the quality of services is often poor.

Sub-Saharan Africa comprises also 19 of the 20 countries with the lowest rate of access to clean cooking in the world. In 2022, people in Africa without access to clean cooking numbered 970 million. 64 % of Africans rely predominately on gathered wood together with agricultural and animal wastes as fuel for cooking. The lack of access to modern cooking in Africa has huge social and environmental consequences: health, deforestation, climate change. In addition, the lack of gender targets for clean energy is harming women and girls.

While the EU has a long tradition of energy cooperation in Africa – together with its Member States, provided EUR 13.8 billion or the vast majority of ODA financing for SDG7 projects in Africa between 2014 and 2020 –, it nevertheless suffers from some shortcomings. The energy transition is persistently underfunded in Least Developed Countries (LDCs). Most of the disbursement took the form of loans, which raises some concerns of debt sustainability, taking into account that, in 2023, 21 low-income countries in Africa are in, or at risk of, debt distress. In addition, most projects financed by the EU are aimed at promoting large electricity generation infrastructures and the interconnection of transmission networks to create integrated electricity markets, which have little impact on promoting access to electricity for those who don’t have it. Last but not least, EU funding for modern cooking is marginal. It is estimated that in 2020, Team Europe dedicated less than 1 %.

Against this background, the rapporteur believes that some improvements shall be made in the remit of the Africa – EU Partnership. First of all, the EU and its Member States shall increase the amount of ODA oriented to the energy sector in Africa, prioritising grants over loans in countries at risk of debt distress. Likewise, in order to overcome energy poverty in Africa, EU financing should be reoriented towards countries with lower rates of access to electricity. More weight should be given to the distribution segment as a strategic element to promote universal access to energy. Gender should be mainstreamed throughout the design of EU development policies and programmes on energy in Africa, while access to clean cooking shall be a priority.

More broadly, the rapporteur believes that the EU and its Member States shall ensure Policy Coherence for Sustainable Development across the EU external energy agenda. On this line, the EU shall support developing countries to implement rights-based renewable energy regime, which is the pre-condition to achieve energy justice. To this effect, the principle of Free Prior and Informed Consent (FPIC) of all affected populations, their right to say no, to justice and redress as well as to compensation and remuneration, must be fully respected to ensure local acceptance and benefits for the local communities (in terms of jobs, training, access to electricity, etc.).

This is all the more important given that large-scale renewable energy projects, such as green hydrogen based on solar and wind power, hydroelectric power, present both opportunities and challenges in the Global South. For instance, while green hydrogen produced from renewable resources can potentially play a significant role in reaching the Paris climate goals, it may trigger land use conflicts and aggravate poverty.

Generally speaking, developing countries have an abundance of renewable energy sources, which provide a cheaper, more accessible, inclusive and reliable source of energy than fossil fuels. In Africa, which is endowed with many renewable energy sources, dryland areas are seen as excellent sites for generating wind and solar power. With the global energy transition, there is now a trend to use the huge potential of these areas to produce energy. Governments of developing countries use the narrative of “idle” lands or “degraded” land to justify these land acquisition. However, these areas have been used for generations by diverse pastoralist peoples as well as hunter-gatherers and crop farmers as common property resources. The ventures into renewables often ignore their land rights. This exacerbates climate injustice and the risk of “land grabbing for green energy”. To avoid it, the rapporteur believes it is essential to develop among others mapping of traditional land use (including temporal grazing), indigenous cultural heritage and high-value biodiversity systems, prior to the development of renewable energy projects, as well as to develop strong social and environmental standards, including oversight and grievance mechanisms to ensure their compliance. The rapporteur takes the view that the EU’s green hydrogen strategy in Africa shall fully reflect those concerns and be adapted accordingly.

Last but not least, the EU shall lead by example and stop financing fossil fuel projects in Africa. On the contrary, EU and European development finance institutions shall prioritise and step up their investments in decentralised, small-scale and off-grid renewable energy systems, which offer good solutions for remote communities, to achieve SDG7 and “leave no-one behind”.


 

ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that she has received input from the following entities or persons in the preparation of the report, until the adoption thereof in committee:

Entity and/or person

Researchers (Institute for Research in Technology at the University of Comillas)

Energy Cities

Climate Action Network Europe

ActionAid

 

 

The list above is drawn up under the exclusive responsibility of the rapporteur.

 

 

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

Date adopted

7.12.2023

 

 

 

Result of final vote

+:

–:

0:

13

1

6

Members present for the final vote

Barry Andrews, Hildegard Bentele, Stéphane Bijoux, Mercedes Bresso, Udo Bullmann, Catherine Chabaud, Christophe Clergeau, Charles Goerens, Mónica Silvana González, Pierrette Herzberger-Fofana, György Hölvényi, Erik Marquardt, Eleni Stavrou, Miguel Urbán Crespo, Bernhard Zimniok

Substitutes present for the final vote

Caroline Roose, Carlos Zorrinho

Substitutes under Rule 209(7) present for the final vote

Marie Dauchy, Jarosław Duda, Aušra Maldeikienė

 


FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

13

+

Renew

Barry Andrews, Stéphane Bijoux, Catherine Chabaud, Charles Goerens

S&D

Mercedes Bresso, Udo Bullmann, Christophe Clergeau, Mónica Silvana González, Carlos Zorrinho

The Left

Miguel Urbán Crespo

Verts/ALE

Pierrette Herzberger-Fofana, Erik Marquardt, Caroline Roose

 

1

-

ID

Bernhard Zimniok

 

6

0

ID

Marie Dauchy

PPE

Hildegard Bentele, Jarosław Duda, György Hölvényi, Aušra Maldeikienė, Eleni Stavrou

 

Key to symbols:

+ : in favour

- : against

0 : abstention

 

 

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