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Center for Environment
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PROGRAM: Central Programs
TITLE AND NUMBER: Increased, environmentally sustainable energy production and use, 934-003; IR 3.3 Clean Energy Production and Use
STATUS: Continuing
PLANNED FY 2001 OBLIGATIONS AND FUNDING SOURCE: $5,392,000 DA
PROPOSED FY 2002 OBLIGATIONS AND FUNDING SOURCE: $4,000,000 DA
INITIAL OBLIGATION: FY 1999; ESTIMATED COMPLETION: FY 2008Summary: Environmentally sustainable energy generation and end use are critical to economic growth, poverty alleviation and human health in urban and rural areas. The program benefits all segments of society by reducing the amount of air pollutants emitted and improving municipal pollution management. The electric vehicle initiative especially benefits children by reducing the amount of lead generated by traditional combustion engines and, in turn, ingested by children. Private enterprises also benefit from new technologies that reduce the need for natural resources and, at the same time, produce and transfer power more efficiently. Furthermore, technical assistance and training are provided that enables host countries to improve their ability to successfully manage the urbanization process. Lastly, the global environment benefits from a decrease in the rate of growth in net greenhouse gas emissions.
USAID clean energy activities contribute to several U.S. foreign policy priorities, including benefits to the nation's economy, public health, national security and environmental quality. USAID energy programs open new commercial opportunities for U.S. businesses to enter environmental and energy markets overseas by improving the business environment in which energy-sector transactions occur, thereby creating jobs in the United States while helping developing countries accelerate economic growth in a sustainable manner.
The clean energy program in Global's Center for Environment (the Center) promotes technical solutions through the promotion of sound business management practices; appropriate legal, regulatory and policy frameworks; economic incentives; investment capital; and private sector partnerships. The program fosters private investment in clean energy projects and clean production systems by supporting pilot efforts, providing technical assistance, and assisting with policy and regulatory reform that promote technology transfer and cooperation in climate-friendly technologies. Focus areas of the program include electric vehicle use, regional electrical power pool development, cleaner industrial processes, environmental management systems and increased power plant efficiencies.
Key Results: The Center works with partners to increase private-sector clean air projects and reduce greenhouse gas emissions. Key elements are policy and regulatory changes, U.S. partnerships leading to investments, and strengthening of local institutions. The program targets the expanding, yet limited, energy infrastructures of developing countries, which are particularly well positioned to make use of environmentally sustainable energy technologies. These countries can choose to pursue less carbon-intensive economic development and leapfrog over the polluting, carbon-rich industrialization phase of developed countries.
Performance and Prospects: In FY 2000, the Center made progress in a number of areas and laid the foundation for future results in India, Mexico, Southern and West Africa. In India, the amount of lead and other air pollutants emitted in urban areas was reduced through the introduction of electric vehicles. In Mexico, the efficiency of electricity generation was improved with the installation of cleaner-burning technologies. In sub-Saharan Africa, power-pooling activities were approved that will increase regional transmission efficiency and promote transnational economic growth. Center efforts to forge new partnerships were successfully initiated among U.S. corporations and developing country counterparts through a cooperative agreement with the Business Council for Sustainable Energy and among U.S. and developing country utilities and regulatory agencies through a cooperative agreement with the United States Energy Association.
FY 2002 funds will be used to support the strategic realignment of clean energy and environmental management activities to more effectively address the delivery of energy services to rural and urban populations. A thorough review of existing programs will lead to the continuation of some activities (e.g., improving the environmental performance of industries and municipalities) and to the likely initiation of new activities (e.g., expanding the commercial provision of energy services to populations in urban slum areas).
For a life-of-project investment of approximately $58 million, the Agency will achieve a substantial increase in clean energy production and end use. Program activities introduce innovative technologies designed to decrease greenhouse gas emissions and other local pollutants from conventional fossil fuel combustion while fueling economic growth. Eleven partnerships between host-country and U.S. businesses are expected to be brokered by USAID-supported contractors, resulting in investments in of new clean energy production and more efficient management of existing facilities.
Possible Adjustments to Plans: The Strategic Framework and the Performance Monitoring Plan are currently under review to ensure that both accurately capture program results. The Center will seek approval to extend the Strategic Plan accordingly.
Other Donor Programs: Within the donor community, USAID works closely with lending institutions (World Bank, regional development banks, and private commercial banks) to improve access to long-term financing as well as with international organizations on technical assistance and information dissemination. USAID also works with host-country local governments and municipal associations. Program activities will leverage investment in electric vehicle technology by major U.S. and Indian (Bajaj) auto manufacturers, investment in technology to clean generation capacity by major fossil fuel companies (PEMEX - Mexico, Ministry of Coal in India) and utilities (CFE-Mexico), and investment in landfill gas operations by local operators in Brazil and Mexico.
Principal Contractors, Grantees or Agencies: The program implements activities in conjunction with Nexant, Inc. and with PA Consulting. The U.S. Energy Association, the Business Council for Sustainable Energy, the Environmental Export Council, and the International Council for Local Environmental Initiatives. Agreements also exist with the U.S. Environmental Protection Agency and the U.S. Department of Agriculture. The program periodically contracts with the Institute of International Education, Academy for Educational Development and CORE International for targeted capacity-building workshops.
Selected Performance Measures:
Indicator FY97 (Actual) FY98 (Actual) FY99 (Actual) FY00 (Actual) FY01 (Plan) FY02 (Plan) Indicator 1: Number of clean energy activities initiated by the private sector NA 4 7 6 NA NA Indicator 2: Number of partnerships between U.S. and host-country businesses brokered 1 8 9 8 NA NA Indicator 3: Number of host-country institutions strengthened 4 4 12 14 NA NA Indicator Information
Indicator Level (S)or(IR) Unit of Measure Source Indicator Description Indicator 1: IR Number of activities Collaborators, cooperators, and stakeholders Indicator tracks the number of clean energy activities initiated by the private sector This is a "catch-all" indicator allowing the evaluation of any significant direct and indirect activity. It is also a qualitative indicator to recognize the time lag between the beginning of a project and its actual contribution to environmental improvement. For example, if a new coal plant using advanced coal combustion techniques is started in 1999, it may be five years before generation begins. Yet, those activities are a result of G/ENV's work and will ultimately contribute to reduced GHG emissions. Indicator 2: IR Number of partnerships Collaborators, cooperators, and stakeholders Engaging the public and private sector in cleaner energy production and use will require U.S. and host-country partnerships for financial resources and technical assistance to be formed by key country institutions. Indicator tracks the number of partnerships between these entities that are successfully brokered by G/ENV. Indicator 3: IR Number of electric utilities, government agencies, businesses Collaborators, cooperators, and stakeholders As energy institutions shift from centrally planned to market economies, new tools for planning, analysis, regulation, and training are necessary to facilitate this transition. Indicator tracks each public or private institution, receiving G/ENV assistance, that has strengthened its institutional capacity.
Last Updated on: May 29, 2002 |