Environmental Protection, Energy Policy and Poverty Reduction – Synergies of an Integrated Approach

Abstract

This paper describes the mechanisms that link poverty reduction with climate and energy policy. First, there is a brief analysis of the relationship between ongoing climate change, energy use and poverty. This analysis is followed by an overview of different policy options that have the potential to fight poverty while simultaneously limiting global warming and environmental degradation. Mitigating climate change, transforming the energy systems in developing countries and financing adaptation to climate change are pointed out as central policy fields governments and developing agencies should focus on. Furthermore, one can argue that new technologies to increase energy efficiency and the dissemination of renewable energy systems have an especially strong impact on poverty. Access to clean and cost-efficient energy has a direct effect on the income generation potentials of the poor. Finally, this paper identifies appropriate financing mechanisms to implement the aforementioned strategies.