Energy for development

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Interview with Michael Spindelegger, Foreign Minister of the Republic of Austria

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Making It: The United Nations Industrial Development Organization (UNIDO) is lucky enough to have its headquarters in the Austrian capital, and Austria has been a great supporter of UNIDO during the more than 40 years it has been located in the city of Vienna. How do you see Austria’s relations with UNIDO today?

Michael Spindelegger: As host country, Austria traditionally has close ties with UNIDO. We see UNIDO as a key partner in realizing important development policy goals, and we are convinced of the relevance and quality of UNIDO’s work.

Mr. Spindelegger | Photo courtesy of the Austrian Foreign Ministry

Austria has demonstrated its unwavering commitment to UNIDO through its active input, as well as its voluntary contributions as one of UNIDO’s major donors. The organization has succeeded in linking the fight against poverty with environmental sustainability, and is therefore offering solutions to the most pressing problems. Today’s global crisis requires global responses and a pooling of resources. UNIDO is best suited to link the economic, social, and environmental aspects of industrial development through the facilitation of technology transfer, as well as capacity building measures.

Austria is proud to host an organization that has managed to become a reference point for both economic development and the environment. UNIDO can count on Austria’s continuing support to reach our common goals.

Austria’s three-year programme (2008-10) for development policy has private sector development as one of its thematic focuses, and micro, small and medium-sized enterprises are the main target group. What is the reason for this focus?

The private sector is a major driver of economic growth, and a thriving business environment is a pre-condition for the development of a dynamic private sector that contributes to poverty reduction. Therefore, Austrian Development Cooperation supports programmes to improve the political, economic, social, and ecological situation. Transparency and equal conditions for all market participants, as well as access to infrastructure, are crucial for these efforts.

Starting up a business is often the only way to make a living; however, it is not easy to get a commercial idea off the ground. That is why our main target groups are micro, small and medium-sized enterprises. We support programmes aimed at increasing legal certainty, and introducing labour market or fiscal legislation that help to create an enabling environment for small entrepreneurs. These projects and programmes impart know-how about business management, and the efficient organization of production processes. In addition, we facilitate access to financial services for small entrepreneurs and others who need seed capital to put their ideas into practice, for example through micro-credit funds or the Austrian Development Bank.

Making It is particularly interested to know more about another focus of Austrian development policy: energy. What do you see as the link between energy and private sector development?

The energy sector is a major contributor to global climate change and local pollution. The focus on power generation from fossil fuels in some developing countries is likely to have far-reaching ecological consequences. The negative effects of climate change risk jeopardizing the development progress achieved so far.

Sustainable solutions are needed to master the complex challenges in the energy sector. A prime objective of our development cooperation is ensuring access to affordable, reliable, and sustainable energy services. We also support applied research and capacity building. The availability of energy is crucial for any enterprise, but also for private households to facilitate domestic tasks like cooking or heating, leaving more time for studying and productive work.

One of the priority countries for Austrian development policy is Bhutan. Can you tell us more about this partnership?

Over the years, Austria has become one of Bhutan’s most important development partners. Our fruitful cooperation started in 1986 when we were invited to cooperate in the electrification of eastern Bhutan. Since then, three hydropower stations have been successfully installed and are today fully operational. Besides that, five rural electrification programmes provide access to electricity for more than 1,600 households, and a new programme to cover 800 households in the Phobjikha area is about to begin.

We are also engaged in the field of capacity building: We provide technical assistance and the transfer of know-how to Bhutanese technicians in order to ensure the successful completion of relevant hydropower projects by local companies. Moreover, Austria supports practical training for the staff of the Bhutanese Department of Energy.

Mr Spindelegger (centre-right) at an Austrian-financed water sanitation project in Kamdini, Uganda, July 2009 | Photo courtesy of the Austrian Foreign Ministry

Still on energy, can you outline Austria’s involvement with the Economic Community of West African States (ECOWAS) Centre for Renewable Energy and Energy Efficiency?

In 2006, the ECOWAS Commission, representing the 15 West African member states, re-focused its energy access agenda on the promotion of the use of alternative energy sources, including solar, wind, hydro-electricity, biomass, and other renewable energy sources. As a consequence, UNIDO and European Union member states were approached to give their support to the establishment of an ECOWAS Regional Centre for Renewable Energy and Energy Efficiency. This centre, located in Praia, in Cape Verde, will serve the region by increasing access to modern energy services and enhancing energy security.

With the financial support of the governments of Austria and Spain, operations began in November 2009, and recruitment was completed this February. A detailed work programme is now being prepared. The specific aims in the long run are to give 60% of people in rural areas access to motive power in order to stimulate economic activities, and to give 325 million people access to improved cooking fuel and 214 million people individual access to electricity.

Austria has a strong interest in the economic development of countries in South-east Europe, and two other priority countries are the Former Yugoslav Republic of Macedonia and Montenegro. Can you provide some details about the various energy projects that are being implemented in these countries?

In 1992, through an amendment to its constitution, Montenegro became an “Ecological State”. As a contribution to energy-efficient and ecologically-sustainable construction in Montenegro, the Austrian Development Agency is financing the planning costs, construction supervision, and supply of eco-efficient materials for the construction of the United Nations’ new offices in Montenegro.

Austria also supports a number of energy projects in Macedonia, such as the geothermal project in Kocani, which should help Macedonia to achieve energy independence. Its main objectives are the strengthening of the use of geothermics as a modern alternative form of energy, the more efficient use of this energy, and technological improvements in the supply of heat energy.

We also support a UNDP pilot project in Macedonia, which aims to improve energy efficiency in the building sector and enhance the awareness and capacities of stakeholders involved in energy efficiency issues. In the long run, energy consumption in residential and public buildings should be minimized, thus not only reducing energy demand and greenhouse gas emissions, but also increasing the energy independence of the country.