Energy Environment Review in Iran and Egypt
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Contents |
Background and objectives
The Energy and Environment Review (EER) is a specific approach proposed in the World Bank’s Fuel for Thought: An Environmental Strategy for the Energy Sector as an instrument to help set operational priorities for mainstreaming the environment in the context of the World Bank’s policy on support to the energy sector.
The Energy Sector in Iran and Egypt was subject to a review because:
- The sector includes key natural resources (oil and natural gas reserves).
- It is a major source of pollution.
- It is an important sector for environmental mainstreaming.
Approach
An Energy and Environment Review process involves:
- Analysis of the current situation with regards to energy generation and use.
- Evaluation of the growth prospects with regards to energy generation and use.
- Identification of environmental issues induced by the generation and use of energy, and damage cost estimates.
- Evaluation of the extent of contribution to climate-change through emission of greenhouse gases.
- Evaluation of the proposed mitigating measures for the previously identified environmental problems.
- Conclusions and recommendations, and a proposal for an action plan.
Outcomes of the EER in Iran
- Increase in the price of energy fuels (gasoline, diesel, and electricity should reach real market values by 2009).
- Reduction of gasoline price subsidies (the price of gasoline should reach its market value in 2009).
- Diesel fuel price was increased by 15%.
- Electricity price increased by 20%.
- Enabled the Carbon Business Finance Unit to commit to buy US$ 50 million of carbon emission reductions.
- Helped the Bank in convincing the government to ratify the Kyoto Protocol.
Outcomes of the EER in Egypt
- Used by the Bank for advancing its policy dialogue in the Energy Sector.
- Enabled the Carbon Business Finance Unit to commit to buy US$ 50 million of carbon emission reductions.
- Helped the Bank in convincing the GOE to ratify the Kyoto Protocol.
- Improved the Country Environmental Analysis of Egypt.
- Increased penetration of natural gas in industrial sectors as well as CNG in taxies.
- Improved efficiency of electrical transmissions and distribution systems.
- Increasing the price of diesel.
- Vehicle Emission Testing (VET) in Greater Cairo.
Source: Arif (2005).
(Reproduced with permission of OECD.)
