Relevance for Development and Poverty Reduction
A Powerhouse of Progress
Wind power in Marocco. Source: KfW Photo Archive / G.J. Lopata
Inadequate access to modern forms of energy is a key poverty indicator. Billions of people satisfy their daily energy needs using traditional sources such as wood or manure; every year smoke emission caused by heating and cooking on open fireplaces costs millions of women and children their lives. Farmers and craftsmen lack the support of electrical machines, and in their direct environment the poor in particular are exposed to environmental pollution caused by power generation and consumption.
Improving the supply of energy is not a Millennium Development Goal (MDG) in itself but in many areas it creates the right conditions for achieving the goals and reducing poverty; energy enables higher productivity in industry and agriculture. A growing economy also creates new sources of income for the poor (MDG 1). Energy also impacts on education, health, gender equality, drinking water supplies and population growth.
Efficient and Environmentally Friendly
The current debate on climate protection and climate change is also producing a new dimension regarding the importance of the energy sector for development and the reduction of poverty. The energy sector is responsible for a substantial proportion of climate-damaging greenhouse gas emissions, and therefore shares responsibility for global climate change, with corresponding negative effects on growth and the reduction of poverty.
The strategy of KfW Entwicklungsbank aims to make energy available in an efficient and environmentally acceptable way in order to contribute to development and to alleviating poverty.
Further Information
BMZ Topics Development Needs Sustainable Energy (PDF, 2,7 MB, accessible)
Last updated: July 2011
