Official Development Assistance (ODA)

(4) Securing Access to Resources and Energy

The number of people without access to electricity in the world is estimated at around 1.3 billion (equivalent to 18% of the world's population), reaching 60% of the population in Sub-Saharan Africa (approximately 630 million people) in particular. In Sub-Saharan Africa, over 70% of the populations rely on fuelwood (e.g., charcoal, kindling) for cooking,(Note 30) which produces indoor air pollution that contributes to death of youths.(Note 31) The lack of electricity, gas and other energy services leads to the delay in industrial development, a loss of employment opportunities, a further increase in poverty, and restricted access to medical services and education. Stable energy supply and appropriate consideration to the environment are essential since global energy demand is expected to increase further, mainly in emerging and developing countries, particularly in Asia.

<Japan's Efforts>

In order to realize sustainable development and secure energy in developing countries, Japan works on the provision of services which enables modern energy supply, and the stable supply of power for industrial development. In addition, Japan provides support for the establishment of an environment-friendly infrastructure (socio-economic infrastructure), such as the construction of energy-saving equipment and power generation facilities that utilize renewable energy (hydropower, solar photovoltaics, wind power, geothermal power, etc.).

In view of the significant changes in the global energy situation, the Ministry of Foreign Affairs (MOFA) announced the “Energy and Resource Diplomacy of Japan – global vision for a shared future” in July 2017, which represents Japan's future vision for energy and resource diplomacy, and the strategies towards the realization of this vision. In this announcement, Japan presented three pillars of Japan's energy and resource diplomacy; namely, (i) strengthening the strategic approach to energy and resource issues in Japan's diplomacy; (ii) taking a multi-layered approach when conducting energy and resource diplomacy so that Japan can cater to various needs; and (iii) consolidating “Japan's unique strengths” and applying them in the energy and resource fields. These pillars are based on the recognition that Japan's energy security will be promoted through its contribution to solving global energy challenges as well as the enhancement of mutual interests between Japan and resource-rich countries while prioritizing ensuring stable supply of energy and resources to Japan.

With respect to addressing the second pillar in particular, it is important to proactively use Japan's ODA in the resource and energy sectors alongside the support from the Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and Japan Oil, Gas and Metals National Corporation (JOGMEC). Additionally, as an international effort, the G7 initiative on “Strengthening Assistance for Complex Contract Negotiations (CONNEX)” was launched in 2014, aiming at improving the capacity to negotiate contracts on natural resources in developing countries and also contributing to the achievement of the SDGs.

Japan also proactively supports the Extractive Industries Transparency Initiative (EITI), which is a multinational cooperative framework to increase the transparency of the money flow in development of oil, gas, mineral and other resources. Under this framework, extracting corporations report the amount of payment to the governments of resource-producing countries, and the governments report the amount of revenue to the EITI in order to ensure transparency of the money flow. Fifty-two resource-producing countries, many supporting countries including Japan, extracting companies and NGOs are participating in the EITI, and working together to prevent corruption and conflict, as well as to encourage responsible resource development that leads to growth and poverty reduction.


Energy Efficiency Management Program (EEMP) for Industrial Sector in Pakistan

Technical cooperation project (March 2015 - December 2016)

An expert instructing factory engineers on how to manage high pressure air (Photo: Yoshio Hirayama / Techno Soft Co., Ltd.)

An expert instructing factory engineers on how to manage high pressure air (Photo: Yoshio Hirayama / Techno Soft Co., Ltd.)

In Pakistan, energy issues including a lack of power supply have become serious, as the country carries out planned power cuts.* Nevertheless, there was a lack of awareness towards energy conservation and a shortage of expert leaders to provide guidance on this initiative.

Through the “Energy Efficiency Management Program (EEMP) for Industrial Sector,” Japan cooperated with Pakistan's Small and Medium Enterprises Development Authority (SMEDA) as a counterparty in providing technical training on energy conservation under the guidance of Japanese experts and supporting the establishment of a practical model of energy efficiency management for manufacturers in Pakistan by selecting 10 model factories, among the foundry and auto parts industries, which are major consumers of energy.

As a result of energy conservation activities following the improvement proposal of Japanese experts, an annual reduction of 1,230,000 kWh (equivalent to ¥13.2 million) in energy usage was achieved among the model enterprises during the project period. This result was highlighted in the project's outcome dissemination seminar and local newspapers, and further promoted the effectiveness of energy conservation programs among enterprises that have never had such an opportunity before.

After the completion of this project, SMEDA is conducting continuous energy efficiency diagnosis, which raised the awareness that energy reduction can lead to cost savings within the manufacturing industry, and increased the number of enterprises interested in seeking energy efficiency diagnosis.

*A planned, temporary shutdown of power supply determined in advance by the power company for a certain time, date, and area in the event of a predicted shortage of power supply in order to avoid a massive power outage.

  1. Note 30: Source: World Energy Outlook Special Report 2016
  2. Note 31: Source: IEA, “World Energy Outlook 2015” (estimates as of 2012), and IEA, “Africa Energy Outlook 2015