Limited access to energy services and heavy reliance on traditional biomass – wood, agricultural residues and dung – are hallmarks of poverty in developing countries. Currently, 1.6 billion people do not have access to electricity, and 2.4 billion people rely on traditional biomass for cooking and heating. Better access to sustainable energy services is necessary for economic growth and to develop businesses and income-generating activities. Homes, schools and health centres need adequate energy for lighting, communication, water supply, heating and cooling. Streetlights improve safety at night, better fuels and cookstoves are necessary to end the exposure of women and children to indoor air pollution through smoke and reduce daily work load on collecting wood.

In response to this challenge, the European Union launched the EU Energy Initiative for Poverty Eradication and Sustainable Development (EUEI) at the World Summit on Sustainable Development (WSSD) in September 2002 as a joint commitment of the EU Member States and European Commission to support improved access to sustainable energy services in developing countries. Through the Initiative, the EU proposes to work with developing countries towards creating the necessary conditions in the energy sector to achieve their national economic, social and environmental objectives, in particular by maximising energy efficiency, including more efficient use of fossil fuels and traditional biomass, and increasing the use of renewable energy.