Energy is a key input to economic growth needed to end extreme poverty, while extractives generate substantial revenues for poverty reduction and socio-economic development. Universal access to affordable, reliable, and sustainable energy is key for ensuring economic opportunity and prosperity. The energy and extractives sector, if managed well, can boost shared prosperity through co-development of infrastructure, local economic development, skills, and jobs.
THE ENERGY & EXTRACTIVES GLOBAL PRACTICE
Over 1.2 billion people are without access to electricity worldwide, most of them concentrated in about a dozen countries in Africa and Asia. Another 2.8 billion rely on wood or other biomass for cooking and heating, resulting in indoor and outdoor air pollution attributable for 4.3 million deaths a year. Providing reliable electricity to the unserved and inadequately-served people of the world is central to efforts to eradicate extreme poverty and create shared prosperity. The World Bank Group supports the Sustainable Energy for All initiative, and is committed to working towards accomplishing the initiative's three goals by 2030: i) universal access to electricity and clean cooking fuels; ii) doubling the share of the world's energy supplied by renewable sources from 18 percent to 36 percent, and iii) doubling the rate of improvement in energy efficiency.
In terms of extractive industries, about 3.5 billion people live in countries rich in oil, gas or minerals. Many of these countries suffer from poverty, corruption and conflict stemming from weak governance. Too often, mineral, oil and gas resources have become a source of conflict rather than opportunity. Non-renewable mineral resources play a dominant role in 81 countries, collectively accounting for a quarter of world GDP, half of the world's population and nearly 70 percent of those in extreme poverty. Africa has about 30 percent of the world's mineral reserves, 10 percent of the world's oil, and 8 percent of the world's natural gas.
The Energy & Extractives Global Practice of the World Bank Group is made up of more than 300 professionals, a lending program in the order of US$7 billion a year, an active portfolio of some $30 billion, and a rich program of Advisory and Analytical Work. The Energy side of the practice focuses on providing affordable, reliable and sustainable energy to meet the needs of fast growing economies and to ensure universal access to modern energy services for people in client countries. The Extractives side of the Global Practice focuses on strengthening policy and institutional frameworks to promote transparent and equitable growth of the extractives sectors and leverage extractives-related infrastructure for public benefit. Both parts of the Global Practice place a strong emphasis on private sector resource mobilization.