Decisions about how to generate, deliver and pay for electricity have a profound effect on people’s lives. WRI’s Electricity Governance Initiative (EGI) promotes transparent, inclusive and accountable decision-making in the electricity sector, with the goal of helping countries can develop more equitable and sustainable electricity policies. The partnership works in India, Indonesia, Thailand, South Africa, and the Philippines, five countries with rapidly growing emissions from power generation. Since 2005, we have worked with civil society organizations to complete national assessments of electricity governance and advocate for improvements. More than thirty organizations around the world are partners in the Initiative.
This breakthrough resulted from the opening up South Africa’s national electricity planning process, in which EGI played a key role.
Civil society organizations were invited to participate in a new open and consultative process to develop the Integrated Resource Plan for 2010-2030. EGI partners in South Africa produced and shared relevant and timely analyses of the draft plan, held public workshops with government officials, parliamentarians, and civil society groups, and drew media attention to key components of the plan. The result was the government’s heightened focus on the clean energy options of renewables and efficiency. In addition, the South African Department of Energy committed to develop a research agenda to address issues that arose during the public process.
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.
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.
Spanning six nations and 500 million acres of land in Central Africa, the Congo Basin contains the second largest contiguous tropical rainforest in the world and is home to a wealth of biodiversity and wildlife. More than 75 million people rely on it for food, fresh water, and shelter. Global demand for the region’s forest and mineral resources is high and growing.
Nowhere is the pressure more intense than in Gabon, a nation with 80 percent of its territory covered by dense tropical forest. With resource use demands spiraling in recent years, Gabon urgently needs better forest management planning if the government is to achieve its goal of becoming an emerging economy while preserving the country’s natural resources.
WRI’s forestry team has been working in Central Africa since 2002 to help nations collect and publish accessible information on forest concessions, logging infrastructure, and protected areas, thus improving transparency and governance in the forest sector.
With assistance from WRI and World Wildlife Fund, Gabon is improving transparency and access to natural resource information by combining forestry, mining, and conservation land use data into a single, public, information atlas. Recognizing the need for vastly improved coordination between various land allocation ministries, as well as the importance of reliable, high quality information for decision-making, the Ministry of Mines, Petroleum, and Hydrocarbons led the initiative in collaboration with the Ministry of Water and Forests. As a result, Gabon can begin to tackle conflicting land use claims and plan for comprehensive and coordinated land use allocation at the national level. In addition, industry and the public, armed with information, can participate more actively in decision-making and monitoring activities.
This multi-stakeholder, multi-sectoral, and transparent approach is setting the foundation for improved land use and management in Gabon.
Promoting forest protection and sustainable agriculture in the Amazon region is vital for local livelihoods and biodiversity, as well as for global climate regulation.
In early 2011, the state legislature of Mato Grosso, Brazil passed a controversial new state zoning law (ZSEE) that opened up 50,000 km2 of new forest areas for conversion to agriculture. In February 2012, following a high-profile civil society campaign and a public civil action suit, the law was suspended through an injunction by Mato Grosso’s State Court. The injunction states: “It is true that… there were… vices of form capable of undermining the law… However, more important is that by reason of these vices, there was impairment of natural goods and services and sustainable development, so there is a risk of impairment of human life. This is the strongest argument that… imposes the granting of the injunction.” In March 2012, Brazil’s Federal Zoning Commission ordered the state government to redraft legislation.
The Instituto Centro de Vida (ICV) – a founding partner of the Governance of Forests Initiative (GFI) – led the successful campaign by producing and distributing their analysis of the ZSEE / MT. This analysis was then used by civil society – including indigenous peoples, social movements, and researchers – as well as legislators and prosecutors in Mato Grosso. Civil society used all opportunities—such as seminars, public events, and protest letters—to denounce the new law. Meetings with more 250 people in attendance were convened.
Curbing Forest Loss
Within a month of the Governor sanctioning the new ZSEE, IMAZON, the other GFI partner in Brazil, documented a more than 500 percent spike in deforestation in Mato Grosso. The immediate public outcry, enforcement actions by the state, and the start of the state case in September, however, acted as immediate deterrents, and the rate of deforestation stabilized. However, without the decisions taken by the State Court and the Federal Zoning Commission, this increase in deforestation would likely have lasted longer, as the law effectively sanctioned past clearing and allowed new areas to be cleared.
These decisions marked an important victory for democratic decision-making and government accountability in a region where the rule of law relating to forests and agriculture is sometimes circumvented for political and economic gain.
Making Change Happen: WRI’s Role
GFI is a set of civil society organization partners in the United States, Brazil, Cameroon, and Indonesia dedicated to improving forest governance through evidence-based advocacy.
In 2010, WRI helped ICV to conduct a governance assessment of the Mato Grosso ZSEE process using a diagnostic tool, the GFI Framework of Indicators (v.1), developed by WRI, ICV, and IMAZON. ICV collected information and conducted interviews to compile a record of expert and civil society inputs into the bill’s drafting over 10 years, from 2000-2010. Armed with this evidence, ICV was able to quickly demonstrate the problems with the new law and start the outcry that led to this outcome.
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.
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.