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  • Blog post

    Lessons from Indonesia: Mobilizing Investment in Geothermal Energy

    Developing countries will need about $531 billion of additional investments in clean energy technologies every year in order to limit global temperature rise to 2°C above pre-industrial levels, thus preventing climate change’s worst impacts. To attract investments on the scale required, developing country governments, with support from developed countries, must undertake “readiness” activities that will encourage public and private sector investors to put their money into climate-friendly projects.

    WRI’s six-part blog series, Mobilizing Clean Energy Finance, highlights individual developing countries’ experiences in scaling up investments in clean energy and explores the role climate finance plays in addressing investment barriers. The cases draw on WRI’s recent report, Mobilizing Climate Investment.

    The development of Indonesia’s geothermal energy sector—and the starts and stops along the way—provides an interesting case study on how to create readiness for low-carbon energy. By addressing barriers such as pricing distortions and resource-exploration risks, the country has begun to create a favorable climate for geothermal investment.

    The History of Geothermal Power in Indonesia

    Indonesia holds the world’s largest source of geothermal power, with an estimated potential of 27 GW. However, less than 5 percent of this potential has been developed to date. Indonesia began to explore its geothermal resource in the 1970s, with support from a number of developed country governments. The country made some progress in advancing geothermal development by the 1990s. However, development stalled during the Asian financial crisis in 1997-98 and was slow to recover.

    In the early 2000s, a number of barriers limited investment in the sector, including a policy and regulatory framework that favored conventional, coal-fired energy over geothermal. Plus, the high cost and risk associated with geothermal exploration deterred potential investors and made it difficult to access financing from banks.

    The Indonesian government took a number of steps to try to advance geothermal development and received support from a wide range of international partners, including multilateral development banks and developed country governments. In 2003, it passed a law to promote private sector investment in geothermal, establishing a target of 6,000MW installed capacity by 2020.

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  • Blog post

    4 Lessons in Renewable Energy Planning: The Philippine Experience

    Rabayah Akhter, an intern with WRI's Electricity Governance Initiative, also contributed to this post.

    When it comes to renewable energy, the Philippines is one of the world’s more ambitious countries. The country set out to triple its share of renewable energy by 2030 based on 2010 levels. The Philippines has one of Asia’s highest electricity rates, in part due to high costs of importing fossil fuels. Enhancing the country’s energy security and keeping power costs down have been the main drivers for setting renewable energy goals.

    While the Philippines has demonstrated commitment to renewable energy, the process of achieving its goals has proven to be challenging. The World Wildlife Fund (WWF) in collaboration with WRI released a new report today, Meeting Renewable Energy Targets: Global Lessons From The Road To Implementation. The report documents the challenges and solutions to scaling up renewable energy in the Philippines and six other countries - China, India, Germany, Morocco, South Africa and Spain.

    Successes and Delays

    The Philippines’ experience--the strides and the delays--exemplifies the importance of good governance, including transparency, accountability, and participation. Without it, policies are unlikely to receive public acceptance or support. While it’s important to choose which policies to initiate in the energy sector, equally as important is fortifying the regulatory and institutional structures that back them.

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  • Blog post

    How Civil Society Groups Improved Electricity in Thailand

    Worldwide, one out of every five people lacks access to modern electricity. Affordability, quality of service, and social and environmental impacts pose great challenges in providing people with the power they need for lighting, cooking, and other activities. Good governance involving open and inclusive practices is essential to overcoming these pressing obstacles.

    This is part three of a four-part blog series, “Improving Electricity Governance,” which explores the key components involved in effective electricity governance. The series draws on the experiences of WRI’s Electricity Governance Initiative, documented in a new report, “Shining a Light on Electricity Governance.” Read more posts in this series.

    Until recently, the Electricity Generating Authority of Thailand (EGAT) held a monopoly on Thailand’s power generation and transmission since the 1970s. While EGAT provided a relatively stable supply of electricity to consumers, it was unregulated, leading to inefficiencies in the sector, such as wrongly estimated fuel supply. Consumers experienced high prices, while new power projects moved forward with little public consultation, sparking social conflict and concerns over environmental impacts.

    The situation worsened in 2003, when Prime Minister Thaksin Shinawatra set forth a plan to restructure Thailand’s electricity sector and privatize EGAT. Rather than improving Thailand’s electricity sector in the public interest, the plan for privatization was designed to increase capital for powerful stakeholders and upper management employees. It called to maintain EGAT’s unregulated monopoly in order to maximize profits, even at the expense of public needs and environmental vulnerabilities.

    Thailand’s electricity sector seemed poised to worsen--until civil society groups stepped in.

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  • Blog post

    Ending the "Resource Curse": Canada Commits to Make Mining More Transparent

    Canada’s Prime Minister, Stephen Harper, took a significant step toward promoting transparency and reducing global poverty. He announced yesterday that Canada will implement mandatory reporting requirements for Canadian extractive companies operating both in-country and abroad.

    This mandate will require Canadian extractive companies to publicly disclose the payments they make to foreign governments in exchange for permission to operate on their soil. This development will help promote transparency in the mining sector and, if implemented effectively, could help combat the “resource curse.”

    Fighting the Resource Curse through Access to Information

    Tackling the “resource curse” is a challenge of global proportions. The term applies to situations where, despite a country’s mineral or oil wealth, poverty is exacerbated in part by weak or corrupt institutions, government mismanagement of revenues, and a failure to re-invest into projects that benefit the public—such as infrastructure, education, and healthcare. Often, citizens of resource curse countries aren’t able to hold their governments accountable for this abuse of power because they lack information about their country’s revenues and expenditures (see Box).

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  • Blog post

    Making the Right Choice on Indonesia’s Forest Moratorium

    This piece originally appeared in the Jakarta Post. It was co-written with Dino Patti Djalal, Ambassador of the Republic of Indonesia and WRI Board member.

    Ending months of uncertainty, President Susilo Bambang Yudhoyono of Indonesia made a courageous decision last week to extend the country’s forest moratorium. The new Presidential Instruction adds another two years of protection for over 43 million hectares of primary forests and peat land — an area the size of Japan.

    This was a bold decision by a leader known for his commitment to sustainability. Extending the moratorium is a victory for the Indonesian people, business, and the planet.

    The moratorium will directly benefit more than 80 million Indonesians who rely on forests for their livelihood. Many of these people are extremely poor and have struggled to gain recognition for their land rights. Extending the moratorium provides an opportunity to address these crucial issues.

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  • Blog post

    Improving Freedom of Information in Uganda

    Harriet Bibangambah, a Research Officer at Greenwatch Uganda, also contributed to this post.

    Uganda is one of only 10 African countries with a national access to information (ATI) law. These types of laws are essential to human rights, providing citizens with legal access to the government-held information that directly impacts them—information on issues like mining permits, logging concessions, air quality data, and more. But as researchers are learning, ATI laws on the books do not necessarily guarantee freedom of information.

    Investigating Access to Information in Uganda

    The Access to Information in Africa project—a joint initiative with WRI and the Ghana Center for Democratic Development, Greenwatch Uganda, and Open Democracy Advice Centre of South Africa—evaluates transparency models and environmental accountability in Africa. The project’s research includes conducting a series of citizen requests for information in Ghana, Uganda, and South Africa.

    Uganda passed its Access to Information Act in 2005, releasing an implementation plan and ATI regulations in 2011. The regulations establish procedures for citizens to request government-held information and for the government to respond to citizen requests. WRI and Greenwatch, a Ugandan environmental law and advocacy organization set out in August 2011 to investigate how the law works.

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  • Blog post

    4 Issues to Watch: Recommendations for the Post-2015 Development Agenda

    UPDATE 5/30/13: The High Level Panel on the Post-2015 Development Agenda released its final report on May 30th. Read the full report on the Panel's website.

    Following an extensive global consultation process, the High Level Panel on the Post-2015 Development Agenda will present its final report to UN Secretary General Ban Ki-moon this week. Led by the heads of state of Indonesia, Liberia, and the United Kingdom, the panel is charged with producing a bold yet practical vision for global development beyond 2015, when the current Millennium Development Goals (MDGs) are set to expire. While this is just the first round of what is sure to be a multi-year process, there has been no shortage of discussion about the Panel’s report and what it should say.

    Here are four key issues that we will be looking at on May 31st:

    1) Will sustainability be on the margins or at the center of the post-2015 agenda?

    The MDGs focused primarily on poverty reduction and the social dimensions of human development, with one stand-alone (and largely ineffective) goal on environmental sustainability. There is growing recognition now that the twin challenges of environmental degradation and inequality are among the root causes of poverty, and thus are inextricably linked. The Panel has already acknowledged this in earlier pronouncements, but how and to what extent it takes a more integrated approach to environmental sustainability and equity issues will be a key test of the new poverty agenda. Will it propose another strengthened, stand-alone goal(s) on environmental sustainability, embed sustainability across a number of other goals, or put forth some combination of the two? How will environmental sustainability and poverty reduction be linked in the post-2015 agenda?

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  • Blog post

    Indonesia Extends its Forest Moratorium: What Comes Next?

    Indonesia’s President Susilo Bambang Yudhoyono made a bold and courageous decision this week to extend the country’s forest moratorium. With this decision, which aims to prevent new clearing of primary forests and peat lands for another two years, the government could help protect valuable forests and drive sustainable development.

    Enacted two years ago, Indonesia’s forest moratorium has already made some progress in improving forest management. However, much more can be done. The extension offers Indonesia a tremendous opportunity: a chance to reduce emissions, curb deforestation, and greatly strengthen forest governance in a country that holds some of the world’s most diverse ecosystems.

    Boosting Achievements from Indonesia’s Forest Moratorium

    Indonesia ranks as one of world’s biggest greenhouse gas emitters, largely due to the clearing of forest and peat lands. The forest moratorium aims to address this problem by prohibiting the award of new licenses to clear or convert primary natural forests and peat lands to agriculture or other uses. This will encompass an area of over 43 million hectares of land. Forest users with existing licenses are still allowed to operate in these regions, and there are several exceptions to the rule.

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  • Blog post

    New Jakarta Declaration Aims to Strengthen Rights to Environmental Information in Asia

    Increased industrialization in Asia has created countless hurdles for communities to protect themselves from pollution. Important government information—such as the amount of pollutants being discharged by nearby factories or results from local air and water quality monitoring—still isn’t readily accessible in user-friendly formats. This practice often leaves the public entirely out of decision-making processes on issues like regulating pollution or expanding industrial factories. In many cases, the public lack the information they need to understand and shield themselves from harmful environmental, social, and health impacts.

    This state of affairs recently prompted a group of government officials, NGOs, local community representatives, and academics to demand government action to change the status quo. Last week, representatives from China, Indonesia, Japan, Mongolia, the Philippines, and Thailand released the Jakarta Declaration for Strengthening the Right to Environmental Information for People and the Environment. The Declaration urges governments to improve access to information on air and water quality pollution in Asia—and offers a detailed road map on how to do so.

    The Declaration stemmed from a meeting organized by WRI’s the Access Initiative and the Indonesian Center for Environmental Law, held last week in Jakarta. Representatives will now bring the list of findings and recommendations to government officials in their home countries and ask for commitments on increasing transparency.

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  • Blog post

    How Are China’s Overseas Investments Affecting the Environment?

    Chinese overseas investments are rapidly increasing. As of 2011, China’s outward foreign direct investments (OFDI) spread across 132 countries and regions and topped USD 60 billion annually, ranking ninth globally according to U.N. Conference on Trade and Development statistics. A significant amount of this increasing OFDI goes to the energy and resources sectors—much of it in Asia, Africa, and Latin America.

    But there are two sides to China’s OFDI coin. On the one side, these investments can benefit China and recipient countries, generating revenue and improving quality of life. However, like any country’s overseas investments, without the right policies and safeguards in place, these investments can fund projects that harm the environment and local communities.

    WRI‘s new issue brief surveys the progress and challenges China faces in regulating the environmental and social impacts of its overseas investments. I sat down with WRI senior associate and China expert, Hu Tao, to talk about China’s overseas investment landscape. Before joining WRI, Tao worked as a senior environmental economist with China’s Ministry of Environmental Protection (MEP). Here’s what he had to say:

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Fire Alerts Spike in Indonesia as Risk of Haze Crisis Returns

Cecelia Song, Kemen Austin, Andrew Leach, and other experts at WRI also contributed to this post.

Bacalah posting blog dalam Bahasa Indonesia di sini

Fires are flaring up once more on the Indonesian island of Sumatra. Media reports in the region indicate that the resulting smog has already reached unhealthy levels over parts of Indonesia and Malaysia.

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Strengthening Cameroon’s Forest Governance: 3 Key Challenges for Cameroon’s REDD+ Process

In January 2013, the Forest Carbon Partnership Facility approved USD $3.6M to fund Cameroon’s Readiness Preparation Proposal—a roadmap detailing how Cameroon will develop a national REDD+ strategy to help protect its forests. Cameroon, like many other REDD+ countries, now faces the challenge of delivering on commitments made in its Readiness Preparation Proposal (R-PP). Doing so will require significant efforts to address historical forest sector challenges, including weak governance. I recently participated in the National Dialogue on REDD+ Governance in Yaoundé, Cameroon, where these challenges were at the top of the agenda. The Dialogue, co-sponsored by Bioresources Development and Conservation Programme-Cameroon (BDCPC), Cameroon Ecology, the Ministry of Environment, Nature Protection, and Sustainable Development (MINEPDED), and WRI’s Governance of Forests Initiative (GFI), provided a forum for government and civil society members to talk frankly about strengthening governance as part of Cameroon’s REDD+ program.

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Helping Clean Energy Entrepreneurs Turn on the Lights in Poor Countries

A social entrepreneur invests the little working capital she has to bring solar electricity to a community that –like 1.2 billion people worldwide– lacks access to electricity. The community used to use dirty, expensive and choking kerosene for light to cook by and for children to learn by. The entrepreneur knows she can recoup her costs, because people are willing to pay for reliable, high-quality, clean energy – and it will be even less than what they used to pay for kerosene. Sounds like a good news story, right?

Three months later, the government utility extends the electrical grid to this same community, despite official plans showing it would take at least another four years. While this could be good news for the community, one unintended consequence is that this undermines the entrepreneur’s investment, wiping out their working capital, and deterring investors from supporting decentralized clean energy projects in other communities that lack access to electricity.

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A Look at China's New Environmental Guidelines on Overseas Investments

Few countries are unaffected by China’s overseas investments. The country’s outward foreign direct investments (OFDI) have grownfrom $29 billion in 2002 to more than $424 billion in 2011. While these investments can bring economic opportunities to recipient countries, they also have the potential to create negative economic, social, and environmental impacts and spur tension with local communities.

To address these risks, China’s Ministry of Commerce (MOFCOM) and Ministry of Environment (MEP)—with support from several think tanks—recently issued Guidelines on Environmental Protection and Cooperation. These Guidelines are the first-ever to establish criteria for Chinese companies’ behaviors when doing business overseas—including their environmental impact. But what exactly do the Guidelines cover, and how effective will they be? Here, we’ll answer these questions and more.

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WRI’s Land and Resource Rights project aims to ensure that rural people have secure rights over their land and natural resources.

Reducing the vulnerability of local communities exposed to climate change by increasing the volume and effectiveness of finance directed towards adaptation.

A unique network of civil society organizations dedicated to promoting transparent, inclusive and accountable decision-making in the electricity sector.

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