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The more developed a country's industrial capacity, the greater the potential for economic growth and development. lf carried out in a sustainable manner, taking into account the often fragile nature of the surrounding environment, societal patterns and economic conditions, this can achieve lasting improvements in living standards, incarnes, working conditions, education and healthcare. lf, on the other hand, industrial development is coupled with environmental degradation and resource depletion, societal exploitation and economic recklessness, the associated benefits, if any, will not last.

Accordingly, there is a need to ensure access to basic services as well as to modern, safe and affordable energy in developing countries. Access to energy will also contribute to the Millennium Development Goals (MDGs) on achieving universal primary education and on promoting gender equality. lncreasing energy efficiency and diversifying energy supply, among other things, by exploiting the opportunities of renewable energy, are important aspects in ensuring sustainable industrial development. The EU is implementing various initiatives to improve access to sustainable energy services and promote renewables, such as the EU energy initiative (EUR 220 million is available through the associate EU energy facility from 2006) and the Johannesburg Renewable Energy Coalition (JREC). The EU's water initiative contributes to the achievement of the MDGs on water and sanitation. Industrial development that builds on an economically, environmentally and socially sound base is an engine for achieving the MDGs. The EU sees a mutually reinforcing relationship between environmental protection, competitiveness and social cohesion.

Energy policies must take into account: