Oil for Development Annual report 2009

Preface:The Oil for DevelopmentAnnual Report 2009 In 2009, climate change was widely recognized as the most serious environmentalproblem facing the globe. Still, fossil fuels remain our most important sourceof energy. In order to prevent a rise in global temperatures of more than twodegrees Celsius, we have to reduce greenhouse gas emissions. This can only beachieved through cleaner extraction of energy from fossil fuels, together withincreased deployment of renewable sources of energy. Energy is vital for developing countries in their fight against poverty. At the sametime, the planet will not withstand poor countries copying the energy history ofthe developed world. This is a challenge in all energy-related development policy.Norway has expertise in the management of both fossil energy and renewableenergy sources. We are thus well positioned to address these dilemmas when weprovide assistance in the energy field. Energy has been at the core of Norway’s development assistance policy formany years. This has resulted in the Clean Energy for Development Initiative andthe Oil for Development Initiative. Both initiatives can help to increase economicgrowth and prosperity in some of the poorest countries in the world. The current annual report presents some of the activities and key achievementsof the Oil for Development Initiative in 2009. Through this initiative we assistdeveloping countries, at their request, in their efforts to manage petroleumresources. The main aim is to generate economic growth and promote welfarefor the whole population in an environmentally sustainable way. Demand forNorwegian assistance with petroleum sector management is growing rapidly. Wenow cooperate with more than 24 countries, mostly bilaterally, but also throughregional and multilateral initiatives. Each country has its own particular challengesand there are no “quick fixes”. Our approach to petroleum sector management is broad, as we also include environmentaland revenue management. This is necessary if oil is to be a blessingand not a curse. We mainly build capacity within government institutions, becausea competent public sector is crucial for ensuring good governance of thepetroleum sector. However, we also support civil society and the media. Thesemust be strong enough to monitor their governments. Time, patience and many factors beyond the Oil for Development Initiative’scontrol are required to turn oil in the ground into broad-based improvements inlivelihoods. This report shows how the Oil for Development Initiative makes useof Norwegian and other relevant experience and expertise to contribute to thisimportant process in our partner countries. E rik SolheimM inister of the Environment and International DevelopmentOslo, May 2010