Fuel for Change

This book, with its evidence and case studies from a wide variety of countries in both the Third World and the transitional economies of Eastern Europe, examines the World Bank's new energy policies. Written by well informed analysts in leading NGOs concerned with energy questions, this book seeks to add to the pressure on the Bank to shift its capital lending and policy advice in favour of sustainable energy, including serious investment in energy efficiency, renewable energy sources and energy provision for the rural poor. The Bank has traditionally been the leading multilateral financier of energy provision. Since 1992, it has begun to implement a reform programme based on privatization of the energy sector. This book explains the historical development of the Bank's energy policies. It outlines promising initiatives within the Bank for sustainable energy and explains why these are having little impact on mainstream energy lending. It describes how and why the Bank's energy polices have actually led to an increase in fossil fuel power plants in the top-ten low income countries, while continuing to marginalize renewable energy. While not wishing to launch an ideological attack on privatization, the authors are concerned with how the Bank has allowed regulatory processes to be highjacked by vested interests. Another problem is institutional barriers within the Bank itself. While a minority of staff are genuinely concerned to implement its excellent rhetoric about sustainable development, too many retain their market-fixated approach and do not support investments oriented to renewable energy sources, energy provision in rural areas or even energy efficient technologies. This book constitutes a powerful, policy-oriented critique of the Bank which often gives an impression of talking too much and changing its behaviour too little.