Report - UNDP Russia

Energy intensity in terms of productionhelps to raise energy awareness among decisionmakers and society, and should berecommended as a priority indicator in long-termnational programmes and developmentstrategies.Both indicators of energy intensity inRussia have shown strong positive trends in thelast decade, particularly in the early 2000s,when consumption intensity declined by 35%and production intensity by 19% (Table 8.1).These are among the best results in the world.But must faster decline of consumptionintensity compared with production energyreflects major growth of Russia’s energy exportdependence (Figure 8.1). The relationshipbetween the two indexes was the reverse in EUcountries. It should also be realized that Russiahas already used its potential for structuralimprovement of energy intensity, but the gapbetween Russian energy intensity and that ofdeveloped countries remains huge in absoluteterms.Energy intensity of separate parts of theeconomy is also important: specific sectors,industry, transport, housing utilities, andefficiency of fuel use in electricity generation alldeserve to be distinguished. The last indicator isdefined as fuel expenditure in electricityproduction at various types of power station, andis particularly important, since it reflectsdevelopments in the biggest fuel consumingindustry.Reduction of all types of energyintensity will be a vital link in the chain, whichwill pull the Russian economy towardssustainable growth.8.3. Measuringthe energy factorin systems of indicatorsMulti-functionality of energy intensity asan indicator of sustainable development isevident in the Millennium Development GoalsFigure 8.1Trends in energy intensity by consumption and production (primary energy production to GDP ratio),for Russia and EU-27 (1990 = 100%)1301201101990 = 100100908070601990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Energy intensity of Russian economyEnergy intensity of EU-27 economyRelation of primary energy production to Russian GDPRelation of primary energy production to EU-27 GDPSource: World Bank (World Development Indicators Online Database), British Petroleum (BP Statistical Review of World Energy June 2009),International Energy Agency (IEA World Energy Statistics and Balances - Energy Balances of Non-OECD Countries - Economic Indicators Vol 2009release 01)146 National Human Development Report in the Russian Federation 2009