Report - UNDP Russia

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Concept for Long-term Socio-economicDevelopment of the Russian Federation up to2020 sets the following targets for this aspectof human development:• fivefold reduction of the number of citieswith high and very high levels of pollution;• fourfold reduction of the number of peopleliving in unfavorable environmentalconditions.The area of territories in Russia, which areprotected in order to maintain biodiversity(Indicator No.2), also depends to a significantextent on the energy industry and itsinfrastructure. At present the majority ofprotected areas are in northern and easternregions of the country where there are also hugedeposits of energy resources, development ofwhich will involve large-scale infrastructurecreation: oil & gas pipelines, electricitytransmission lines, railways and roads, etc.Development of the energy industry in theseregions may therefore have negative impact onprotected territories, biodiversity, forests andwetlands. Extensive development of the energyindustry in north-eastern regions couldundermine the role of Russia as a globalenvironmental donor, diminishing the potentialrole of its ecosystems for humanity. A goodexample of a positive approach to solving suchproblems is the government’s decision to movethe route of a planned trunk pipeline away fromLake Baikal, which has unique environmentalimportance. Initial plans would have run thepipeline along the Lake shore.The energy factor plays an important forachievement of MDG 7 tasks to provide puredrinking water and improve housing conditions(Indicators No. 6, 7, 8), which are highly importantfor human potential development. Provision ofpure water, decent housing and sewerage willrequire considerable energy consumption in thehousing utility sector.The energy factor is well reflected in thesystem of indicators developed by the WorldBank, which are published annually in theBank’s ‘Indicators of Global Development’ 6 Andinclude six main energy indexes (Table 8.3.) Themacro ratio to GDP used by the World Bank isnot energy intensity, but the index of energyefficiency, which shows the oppositerelationship. The system also has threestructural indicators, connected with biomass,fuel combustion, and hydro-electricity. Russiaproduces almost 30% less GDP per unit ofconsumed energy than East European orCentral Asian countries and 2.3 times lesscompared with countries that have higherincome levels. The share of energy producedfrom biomass and waste is 2-3 times less inRussia than in the latter countries. Per capitaelectric power consumption is much higher inRussia than in East European and Central Asiancountries (by more than a third), but muchlower than the same index for rich countries (by1.7 times). The share of electricity producedfrom fossil fuels is approximately the same:about two thirds of total production.Constructive approaches todevelopment of energy indicators have beenproposed by the UN Economic Commission forEurope (ECE UN), including a special study for thetransition economies of Eastern Europe, theCaucasus and Central Asia 7 . The approach isbased on differentiation of indicators, using asystem of ‘driving force – pressure – state –impact – reaction’. ECE UN suggested four basicenergy indicators: 1) final energy consumption(overall and by final consumers); 2) total energyconsumption (overall and by major fuel types); 3)energy intensity; and 4) energy consumptionusing renewable sources. The first and secondindicators relate to driving forces, and the thirdand the fourth to reactions.Rates of GHG emissions are associatedwith energy indicators. For example, the WorldBank considers CO 2 emissions per GDP unit andper capita, and growth of these indicators since1990.6World Development Indicators 2008. World Bank, Washington DC, 20087Environmental rates and estimative reports based on them. Eastern Europe, Caucasus and Central Asia. UNECE, New York, Geneva, 2007.148National Human Development Report in the Russian Federation 2009
8.4. The energy factorin integral indicatorsThe energy factor is reflected in manyintegral indicators: its components are taken intoaccount both directly and indirectly whenstatistical data are aggregated into singleindexes. In particular, energy resources arereflected well in the Adjusted Net Savings Index,and the energy factor is indirectly reflected in theHuman Development Index via prosperity(income) levels (see Chapters 2 and 3 and Box 2.1on the Human Development Index) and lifeexpectancy (influence of the energy sector onhealth, see Chapter 4).The Index of Adjusted Net Savings(sometimes referred to as genuine (domestic)savings), which was developed and is widelyused by the World Bank 8 , is probably the bestsuitedto reflect energy aspects, and also hasthe advantages of a good statistical databaseand potential to be calculated at country andregional levels. Estimates of adjusted netsavings take more account of human potential,and energy and environmental factors thantraditional macroeconomic indexes. Theimportance of measuring these savings whenimplementing a sustainable developmentpolicy is clear: consistently negative indicatorsreflect formation of an unsustainabledevelopment path, which will lead to decline ofprosperity.The standard system of nationalaccounts assumes that only investments infixed capital represent investments in futureprosperity of society. The expandedinterpretation used by adjusted net savingsincludes natural and human capital alongsidefixed capital as determinants of nationalwealth. From this point of view depletion ofnon-renewable natural resources (primarily,energy resources) and excessive utilization ofrenewable natural resources diminish nationalwealth. Investments in public education add tohuman capital. Current education expendituresare equivalent to investments, reflecting adefinition of human capital/potential based ona broad concept of domestic investments.Investments in human resources are not treatedas unproductive consumption, but asinvestments that will ensure future growth ofnational wealth. A country, which reinvestsincome from extraction of non-renewablenatural resources in development of humanTable 8.3Energy indicatorsIndicatorsRussiaEast Europe andCentral AsiaCountries with highincome levelGDP per unit of energy use(2005 PPP $/kg oil equivalent)Energy use per capita(kg oil equivalent)Energy from biomass products and waste(% of total)2.6 3.3 6.04517 2826 54981.1 2.2 3.2Electric power consumption per capita (kWh) 5785 3633 9760Electricity generated using fossil fuel (% of total) 65.8 66.1 62.5Electricity generated by hydropower (% of total) 18.2 17.5 11.5Source: World Development Indicators 2008. World Bank, Washington DC, 20088Where is the Wealth of Nations? Measuring Capital for the 21 st Century. World Bank, Washington DC, 2006; World Development Indicators2008. World Bank, Washington DC, 2008149
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National Human Development Reportin
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National Human Development Reportin
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ACKNOWLEDGEMENTSThe authors express
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Dear Reader,You have before you the
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PREFACEThis is the 13 th National H
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country’s fuel & energy regions r
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environmental degradation and enhan
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Chapter 1The Energy Sector,the Econ
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By 2008 Russia had increased its sh
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the share of energy in the national
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exported, increased. However, this
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elimination of structural and terri
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• Establishment of competitive me
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number of developed countries, incl
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Although the United Nations Climate
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industrial region of the Urals - Sv
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2.2. Budget capacityand structure o
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(the Federal State Statistics Servi
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Immigration by young and highly ski
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energy regions exacerbate the incom
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Khanty-Mansi and Yamal-Nenets Auton
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the Ministry for Regional Developme
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various other long-term problems in
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is also associated with the fuel an
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Republic of Mordovia 8051 0.732 68.
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Legislative control of impact audit
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Chapter 3Personal Incomes, the Ener
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than any other sources of income -
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Are wages now the main instrument f
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comparison of month-on-month develo
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• The unemployed, people who aree
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Employment in the energy sector acc
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The share of household expenditures
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subsidization practices in the regi
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in power use between regions now de
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Electricity prices for households h
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• Steady decrease in the percenta
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1. The number of graduates with eng
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As well as requiring better fuelcom
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Box 4.1. The village of Kolvain Uss
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continue to use solid fuel for a lo
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Box 4.3. Ambient air pollution andp
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either by large power generating fa
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Box 4.6. A city at riskNovocherkass
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In order to assess impact of thesee
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generation facilities through safer
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achieved in developed countries. So
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equires 2-6 times more capital inve
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government) should set targets and
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Page 105 and 106: Box 5.1. Programme of the Ministry
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Page 109 and 110: mechanism for using national quota
Page 111 and 112: Figure 6.2Share of electricity gene
Page 113 and 114: One of the major benefits of renewa
Page 115 and 116: odies; outdoor air; rocks and soil;
Page 117 and 118: Design and construction of geotherm
Page 119 and 120: Box 6.3. Prospects for nuclear powe
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Page 123 and 124: ConclusionThe world’s nuclear pow
Page 125 and 126: 7.1. Impact of the fuel& energy sec
Page 127 and 128: Table 7.5Solid waste from productio
Page 129 and 130: Table 7.7Areas of disturbed and rec
Page 131 and 132: nature of the impact (atmospheric e
Page 133 and 134: Further, the economic cost ofenviro
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Page 137 and 138: What the government needs to do ino
Page 139 and 140: Figure 7.2.1Specific atmospheric em
Page 141 and 142: money value of industrial output) c
Page 143 and 144: Figure 7.2.4Trends in specific atmo
Page 145 and 146: Chapter 8The Energy Industry and Su
Page 147 and 148: eing equal) it only reflects that p
Page 149: (MDGs), issued by the UN in 2000. T
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Page 155 and 156: Box 8.2. Energy efficiencyindicator
Page 157 and 158: Box 8.4. Energy efficiency rating o
Page 159 and 160: 41 Penza Region 116.0 -35.2 -4.542
Page 161 and 162: Appendix to Chapter 1Table 1.1. GDP
Page 163 and 164: Attachment to Chapter 4Table 4.1Rus
Page 165 and 166: Attachment to Chapter 4Volga Federa
Page 167 and 168: Attachment to Chapter 4Belovo Belov
Page 169 and 170: The previous National Human Develop
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Report - UNDP Russia

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