Topic: south africa

Mobilizing Climate Investment: The Role of International Climate Finance in Creating Readiness for Scaled-Up, Low-Carbon Energy

Sarah Parsons — Fri, 22 Feb 2013 15:20:51 -0500

Executive Summary

Between now and 2050, developing countries need an estimated $531 billion per year of additional investment in energy supply and demand technologies in order to limit global temperature rise to 2° C above pre-industrial levels. To achieve this scale of investment, developing country governments and custodians of international public finance will need to deploy limited public finance in ways that leverage an unprecedented volume of private sector investment. Despite growing global investment in low-carbon energy and falling costs, it will be difficult to achieve the scale and urgency of investments needed without the appropriate policy, institutional, industry, and financial conditions. Governments and their international partners need to undertake “readiness” activities designed to put in place the conditions that attract scaled-up investment and enable a transformation toward low-carbon energy development pathways.

Drawing on six developing country case studies, this report identifies a set of key lessons and insights for readiness. The report develops a framework to identify and prioritize readiness activities that will require public financial support to create the conditions necessary to scale up investments in renewable energy and energy efficiency (collectively referred to as low-carbon energy). The report discusses the implications of the findings for international climate finance and draws a number of recommendations for the Green Climate Fund (GCF). It targets international public funds and institutions looking to accelerate investment in low-carbon energy, as well as developing country governments looking to identify and prioritize activities for funding.

Enabling conditions for scaling up investment

We identify a number of policy and institutional, industry, and financial sector conditions that can attract scaled-up public and private investment in low-carbon energy. Policy and institutional conditions include plans and targets for low-carbon energy, institutional capacity to effectively implement climate change and energy policies, laws supporting investment in low-carbon energy, and regulatory and fiscal instruments to implement laws. Industry conditions include the capacity of developers to prepare bankable projects, information on renewable resource availability or options to conserve energy, engineering capacity, and the presence of a support industry and enabling infrastructure. Financial conditions include a stable financial sector with the capacity and range of financial products needed to support low-carbon energy.

In six case studies, we analyze the role that enabling activities have played in promoting scaled up investment in low-carbon energy, and the role that international public finance has played in supporting such activities. These case studies examine energy efficiency in Thailand, wind power in South Africa, solar water heaters in Tunisia, geothermal power in Indonesia, wind power in Mexico, and energy efficiency in India. Taken together, the case studies suggest two overarching determinants of success in scaling up investment: government leadership and effective responses to pricing distortions. When government leadership is strong, a commitment to policy and institutional reform and implementation of stated goals usually follows. This in turn strengthens the investment climate and increases investor confidence. In cases where market failures severely distort the market in favor of carbon-intensive energy sources, it has been more difficult to create the conditions that attract investment in low-carbon energy.

Lessons learned for the design of readiness activities

The case studies also reveal a number of lessons about the design of readiness activities and the role of international partners in supporting them.

Small amounts of long-term funding for enabling activities can help scale up investment

In each case study, small investments in enabling activities—from several hundred thousand dollars to several million dollars—helped pave the way for scaled up private and public investments by supporting the creation of conducive policies and market conditions. International support has been most effective when sustained over five or more years. Technical support can also be more effective if international advisors are integrated into national institutions and report to national, rather than international, authorities.

International support is likely to be more effective if it identifies and targets a few critical barriers to investment. In countries with comparatively few enabling conditions for investment, attempts to simultaneously surmount all investment barriers may result in resources being spread too thin to achieve a significant impact. Chapter 4 presents a framework that can aid governments and their international partners in identifying activities to support.

Strengthening the enabling environment should not end when investment begins. In each case study, readiness activities and larger investment took place simultaneously. Even in cases where the investment climate was already strong, there was still scope for additional enabling activities to address specific gaps.

Integrated, inclusive planning processes and policy and institutional reform are key to attracting investment

The integration of low-carbon energy into a broader development agenda can enhance coordination and alignment between different sectors of the economy. Civil society and private sector actors can bring valuable expertise and experience to the planning process, and play important roles in ensuring that low-carbon energy policies and plans are realistic, robust, and tailored to the needs of the country. International support should be aligned with national plans and priorities for effective and sustained outcomes, and should be flexible enough to respond in a timely manner to evolving priorities.

Changes to the policy and regulatory environment proved crucial to attracting investment on a significant scale in the case studies. International support for the design of policies is likely to be effective only if it is demand-driven and not seen as infringing on national sovereignty. Countries that have set up their own financial mechanism to support low-carbon energy projects are well positioned to implement their objectives effectively and independently, thereby reducing their reliance on international partners to finance their low-carbon energy needs.

Having the appropriate institutions in place to develop, implement, and regulate policy reforms—and empowering them with the mandate and resources to carry out their functions effectively—helped ensure that policies were coherent and consistent, which increased investor confidence.

In key institutions, strengthening the capacity of staff and management to carry out their functions is an important readiness activity that often requires international funding support. The case studies suggest that capacity-building support is most effective when carefully targeted to address particular skills gaps.

Tackling information barriers and strengthening industry and financial sector capacity can unlock investment

Public support for broad-scale renewable resource assessments or exploration can provide information on resource availability that is key to attracting investor interest. Similarly, measures to familiarize industry and other actors with low-carbon energy options—such as training centers, awareness campaigns, and seminars and workshops that bring together stakeholders—can strengthen industry knowledge of and capacity to implement renewable energy projects, and raise awareness of the potential cost savings from energy efficiency.

International support plays an important role in facilitating learning and demonstrating new financing models for renewable energy, as well as strengthening industry’s capacity to develop and implement low-carbon energy projects. In some cases, international support to strengthen the capacity of small and medium enterprises (SMEs) and improve their access to financing for low-carbon energy projects has helped unlock investment by this sector of the market.

Financial institutions can play a key role in opening the market for low-carbon energy technologies. However, some financial institutions lack knowledge of and experience with these technologies. Strengthening the capacity of financial institutions to support renewable energy and energy efficiency projects, including through pilot financing programs, has been important in scaling up domestic sources of finance for low-carbon energy in several cases. In some cases, the high risk—real or perceived—of investing in low-carbon technologies without a proven track record in the country has deterred domestic financial institutions. Mechanisms that carefully allocate risks to those best placed to manage them can help attract financing from domestic banks and other financial institutions.

A framework for guiding readiness support for low-carbon energy investments

Building on the experiences of the six case studies, we propose a framework to guide governments and their international partners in determining how best to provide readiness support to countries with low-carbon energy sectors in different stages of development. The framework describes some of the activities required to strengthen the enabling policy and institutional environment for investment. In the early stages of development, these include support for assessing energy options, engaging stakeholders in the energy planning process, capacity building for government agencies and civil society, technical support for developing plans and strategies, and outreach activities. In later stages, activities include support for designing and implementing regulations and fiscal instruments, and targeted capacity building for government agencies, including local governments.

The proposed framework also describes some of the activities needed to strengthen the enabling industry and financial conditions for investment. In early stages of development, these include renewable resource assessments and energy conservation awareness campaigns, capacity building for project developers and financial institutions, support for technology transfer and localization, feasibility studies and environmental and social impact assessments, and support for financial sector reform. At later stages, activities include strengthening engineering capacity for low-carbon energy projects, supporting ancillary industries (such as upgrading grid infrastructure), and supporting financial institutions to assess and finance low-carbon energy projects.

Recommendations for the Green Climate Fund

The six case studies illustrate different approaches that various international partners have used to support readiness activities. The lessons learned are intended to inform the recently established GCF as it attempts to identify how best to support a paradigm shift toward low-emission and climate-resilient development pathways. Although the GFC’s detailed operational modalities are not yet defined, it could take a number of approaches to support readiness. These include supporting readiness directly or partnering with existing institutions; establishing distinct channels and allocations for readiness or integrating enabling activities into existing channels and allocations; and supporting readiness through the private sector facility.

A Seven-Country Assessment of National Capacities to Track Forest Carbon Dioxide Emissions and Removal

Sarah Parsons — Tue, 11 Sep 2012 11:16:54 -0400

Summary

Forest carbon monitoring is critical to evaluating whether policies aiming to reduce carbon dioxide emissions from forest change are achieving their goals. The objective of this brief is to highlight the technical capacity needs for implementing national systems for forest carbon monitoring. This paper assesses the technical capacity in seven countries—Brazil, Colombia, Ethiopia, India, Indonesia, South Africa, and Thailand—for monitoring forests, forest change, and associated carbon dioxide emissions and removals. The results can be used by national agencies and the international community, including donor agencies and non-governmental organizations, to identify priorities for capacity-building and funding.

Based on findings from the assessment, the seven countries would benefit from the following:

Establishing processes to regularly and more frequently update data to enable understanding of trends in forest change.
Ensuring consistency of monitoring methods to allow comparison of data and interpretation of change over time.
Improving spatial resolution of forest monitoring where important drivers of forest change are difficult to detect with mid-resolution satellite imagery.
Establishing or updating national forest inventories regularly to enable accurate estimates of carbon dioxide emissions/removals.
Developing protocols and training programs to guide and harmonize sub-national data collection.
Strengthening data management and sharing among government agencies to enable integration of forest change information with other land use, permitting and tenure data.

Open Climate Network Analysis

Kevin Lustig — Thu, 17 May 2012 12:16:37 -0400

Use the list to the right to explore available analysis from the Open Climate Network »

Access to Information Gains Ground in Africa

Tue, 03 Apr 2012 15:48:30 -0400

This piece originally appeared on the International Development Research Centre (IDRC) website.

Access to information is widely recognized as a cornerstone of good governance and an important anti-corruption tool. Almost 100 countries, including 10 in Africa, have national laws or decrees that recognize the public’s right to access information or records from government.

An IDRC-supported initiative launched in 2011 is looking at access to information in three African countries — Ghana, South Africa, and Uganda — through an environmental and natural resource lens. Natural resources drive the national and household economies of these and many other developing countries. Thus, promoting transparency in this sphere is considered key to assuring healthy, prosperous societies.

The “ATI in Africa” initiative is investigating to what extent citizens are gaining access to information through environment and natural resource laws and institutions. The World Resources Institute (WRI), based in Washington, D.C., is working on the two-year effort with three leading research organizations: the Ghana Center for Democratic Development, the Open Democracy Advice Centre in South Africa, and Greenwatch Uganda.

“Africa lags behind on a whole series of indicators associated with access to information,” says Peter Veit, a senior fellow at WRI who is managing the project. “But the good news is there is huge momentum for reform in Africa right now. There are probably more countries discussing, debating, and negotiating ATI bills in Africa than anywhere else in the world.”

Recent progress

Policies and practices to implement the right of access to information began to emerge in Africa only in recent years. The three project countries are at different stages of this process. In 2000, South Africa became the first country on the continent to pass an ATI law. Uganda’s Access to Information Act was enacted in 2005 but has not been fully implemented. After years of debate and a national consultation, a proposed freedom of information bill in Ghana has yet to be passed.

The right of access to information is enshrined in many countries’ constitutions. Even in the absence of comprehensive national ATI legislation, citizens and advocacy groups in Africa have used constitutional provisions or environmental laws to access information.

Research teams in the three focus countries are reviewing court cases and ATI laws, policies, and practices in the energy and natural resource sectors. Which issues arise most often? Which requests for information are most likely to be rejected? For example, is information on high-value natural resources such as oil and minerals more likely to be considered confidential than information on forestry and the environment?

Learning lessons

The teams are also incorporating evidence from Ethiopia, Liberia, Nigeria, and Zimbabwe, as they review the status of ATI laws there. Says Veit: “There’s a real need across the continent for assistance to be provided South-South and North-South on how to draft ATI laws as well as those governing the extraction and use of natural resources — and how to create institutions that can deliver the functions prescribed to them in those laws.”

The researchers are making and monitoring citizens’ ATI requests, and trying to determine the extent to which particular groups can access information. They asked three types of requesters to seek information from governments: a freelance journalist, a so-called “poor citizen,” and an NGO advocate. Preliminary results from Ghana indicate that refusal rates were high for all types of requesters, especially journalists, who had the highest refusal rate of 60%.

Carole Excell, a lawyer and senior associate at WRI, points to another potential hurdle applicants face. “With two exceptions, every African country’s law refers a citizen who makes a request and is refused, to ultimately go to the courts for relief. This has really restricted the ability of citizens and journalists to seek a remedy.” In most cases, she says, having recourse to an independent ombudsman or information commissioner rather than the courts would be simpler, faster, and less costly.

Change on the ground

The researchers hope their findings will be useful to many other countries — and to the African Union as it develops a model ATI law for the whole continent. They also want to help ensure implementation of the declaration approved at the 2011 Pan-African Conference on Access to Information. The African Platform on Access to Information encourages African countries to become more transparent and was developed specifically to recognize the context and needs of African countries.

The research partners will make their work freely available to other researchers and governments, to support the creation of robust ATI laws throughout Africa. They also hope to encourage better information storage and retrieval in the region by fostering stronger and clearer laws on document archiving.

“Change on the ground is most important,” Excell says. “Our African partners want research that leads to results in policies, practices, and legal reforms.”

Map: Candice Schibli/WRI

STATEMENT: A Climate Deal Comes Together in Durban

Michael Oko — Sat, 10 Dec 2011 22:40:27 -0500

As the climate talks concluded today, Parties agreed to move forward with a “Durban Package” that includes a pathway forward on a legally-binding instrument for all countries, an agreement on a second commitment for the Kyoto Protocol, and a set of decisions to implement the Cancun Agreements, including the Green Climate Fund.

Following is a statement by Jennifer Morgan, Director, Climate and Energy Program, World Resources Institute:

“A roller-coaster two weeks ended with a major climate deal in Durban. Significantly, countries will now negotiate a legally-binding agreement covering both developed and developing countries by 2015, which would cover post-2020 emissions targets and actions. However, there was little progress to close the significant gap between countries’ emissions levels and what’s needed to stay within two degrees Celsius of warming.

“Durban represented a fork in the road between a legally-binding system and a voluntary one. In the end, the European Union, the United States, China, India, along with vulnerable countries in Africa and small islands opted for a path toward an international climate regime.

“The European Union, in particular, came into the conference with a willingness to enter into a second commitment period under the Kyoto Protocol. Working closely with allies in the least-developed countries and small island nations, the EU injected ambition into the talks. The result is a clear pathway for countries to enter the second commitment period of the Kyoto Protocol.

“Countries also pushed ahead with the implementation of the Cancun Agreements. Most notably, they agreed to make the Green Climate Fund operational, and set up a work plan to mobilize significant climate funds from both private and public sources. Currently, however, the funding level is insufficient to meet the commitments. Though details remain to be sorted out, there was also progress on other core issues, such as adaptation, REDD+, and technology.

“On the other hand, the lack of a common accounting framework for developed countries is a significant step backward. This will make it very difficult to know how countries targets compare against the 2 degrees Celsius goal.

“Finally, while negotiators forged a hard-won agreement, countries need to take further steps to significantly reduce greenhouse gas emissions and shift to a lower-carbon and safer future.”

-End-

Note to reach Jennifer Morgan in Durban, Tel. +27 (0) 72 579 5783; jmorgan@wri.org

ADVISORY: Press Teleconference: What To Expect at the Durban Climate Talks

Michael Oko — Thu, 17 Nov 2011 10:03:33 -0500

As the climate meetings in Durban, South Africa, approach, it is a key moment to find a way forward with international cooperation to address climate change.

On Tuesday, November 22, WRI will host a press teleconference where leading experts will discuss the state of play, and key issues such as the future of the Kyoto Protocol, climate finance, and the role of the United States and other countries.

You can read WRI’s overview blog post on the Durban talks, here.

WHAT
Press teleconference on UNFCCC climate negotiations in Durban (COP17)

WHO
Jennifer Morgan, Director, Climate & Energy Program

Jacob Werksman, Director, Institutions & Governance Program

Edward Cameron, Director, International Climate Initiative

Clifford Polycarp, Senior Associate, International Financial Flows & Environment Project

WHEN
Tuesday, November 22, 2011
9:30 a.m. EST//14:30 GMT
Media should dial-in 10 minutes prior to the start time

DIAL-IN (CORRECTED) U.S. Toll Free: 866-803-2143
International/U.S. Toll: ++1-210-795-1098

Access code: DURBAN

You can find WRI’s resources for Durban and follow developments, here

COP 17: Durban

Kevin Lustig — Thu, 10 Nov 2011 13:42:52 -0500

UPDATE: Read WRI’s summary of the outcome of the Durban talks and review of key issues: Reflections On COP 17 In Durban

More information on China and climate change at ChinaFAQs.

From November 28 to December 8, 2011, the United Nations hosted the 17th Conference of the Parties (COP) in South Africa.

WRI experts were in attendance at this latest meeting under the UN Framework Convention on Climate Change (UNFCCC) to help inform the talks. Below, you can find a variety of materials from the World Resources Institute that shed light on key areas of international climate policy.

Adaptation

World Resources Report 2010-2011: Decision Making in a Changing Climate: WRI’s flagship report offers specific, practical strategies and innovative case studies to inform how to integrate climate change risks into national policies and planning.
Report | Website

Making Adaptation Count: Concepts and Options for Monitoring and Evaluation of Climate Change Adaptation: A practical framework for monitoring and evaluation systems to track the success and failure of adaptation initiatives.

Finance

Power, Responsibility, and Accountability: Re-Thinking the Legitimacy of Institutions for Climate Finance: An objective analysis of ongoing efforts to finance mitigation and adaptation in developing countries.

Greenhouse Gas Accounting

Greenhouse Gas Protocol Product Life Cycle Accounting and Reporting Standard: Provides requirements and guidance for quantifying and publicly reporingt an inventory of GHG emissions and removals associated with a specific product.
Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard: Provides requirements and guidance for preparing and publicly reporting a GHG emissions inventory that includes indirect emissions resulting from value chain activities.

International Agreement

Building the Climate Change Regime: Survey and Analysis of Approaches: Seeks to identify concrete pathways for building an international “climate change regime” by surveying academic literature and proposals by NGOs and governments.

Assessing Non-Annex I Pledges: Building a Case for Clarification: Builds a case for the need to clarify the assumptions, methodologies, and other critical details underlying non-Annex I GHG mitigation activity pledges.

Science

Blog post: Five Takeaways from the IPCC Report on Extreme Weather and Climate Change
Blog post: IPCC Report Adds To Studies Tying Climate Change To Extreme Weather
Blog post: Study Testing Skeptics’ Critiques Reconfirms Basic Climate Science
Blog post: Q & A On The Release Of Climate Science 2009-2010

Technology

Two Degrees of Innovation—How to Seize the Opportunities in Low-Carbon Power: A strategic framework for policymakers seeking to capitalize on the low-carbon transition.
Working Paper | Fact Sheet

Grounding Green Power: Bottom-Up Perspectives on Smart Renewable Energy Policy in Developing Countries: Identifies key components of smart renewable energy policy in developing countries.

PRESS STATEMENT: Bonn Climate Talks Wrap Up: More Progress Needed

Michael Oko — Fri, 17 Jun 2011 15:02:16 -0400

As climate negotiations wrapped up in Bonn, Germany, following is a statement from Jennifer Morgan, Director, Climate and Energy, the World Resources Institute:

“After a difficult start for the Bonn climate negotiations, countries finally began discussing how to implement the Cancun Agreements decided last December. However, not enough progress was made, and it will be difficult, if talks proceed at this pace, to decide the Cancun rule book by Durban. Still hanging in the air are questions about the future of the Kyoto Protocol and whether the Cancun rules will be plugged into a legally binding agreement. Durban will be the key moment when the future of the Kyoto Protocol, the detailed rules of the Cancun Agreements, and the legal character of future climate agreements should be resolved.

“To resolve these core decisions, more substantive progress and more political will is needed that we witnessed these past two weeks. The warning signs of a changing climate are all around us – and the international community needs to come together to address this looming challenge.”

Read WRI’s pre-Bonn post, here.
Read WRI’s end of week #1 post, here.

Measurement and Performance Tracking in Developing Countries

Samah Elsayed — Mon, 13 Jun 2011 15:31:09 -0400

Developing countries face the challenge of meeting development goals while at the same time reducing their greenhouse gas (GHG) emissions in order to address climate change. For these efforts to succeed, effective systems are needed to manage greenhouse gases and related emissions reduction activities.

To that end, the World Resources Institute (WRI) is working through the Measurement and Performance Tracking (MAPT) project to build national capacities in developing countries to measure GHG emissions and track performance toward low-carbon development goals. Lessons learned are also being shared with international audiences in order to replicate successes and inform the design of relevant rules within the United Nations Framework Convention on Climate Change (UNFCCC).

WRI is partnering with a broad range of relevant stakeholders within the six MAPT countries, including government agencies, business, and civil society organizations. WRI’s engagement within each country is prioritized according to national capacity needs, which have been identified through scoping assessments conducted with in-country partners.

MAPT is a four-year project funded primarily by the International Climate Initiative of the German Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU) and being carried out in partnership with key stakeholders in Brazil, Colombia, Ethiopia, India, South Africa, and Thailand.

For more information on the MAPT project contact the project manager, Kelly Levin at KLevin@wri.org.

To learn more about the MAPT project visit:
Tools and Outputs
Countries

You can also read more about the individual components that make up the work:
Institutions
National GHG Emissions Inventories
Mitigation Accounting
Civil Society Policy Implementation
Industry
Forestry and Land Use
International

Low-Carbon Development in Emerging Economies

Kevin Lustig — Mon, 13 Jun 2011 15:25:58 -0400

Today’s major emerging economies — countries such as Brazil, China, India, Indonesia, and South Africa — face the challenge of increasing economic development while also overcoming serious barriers to energy access and reducing greenhouse gas (GHG) emissions. These countries recognize the need for a shift to low-carbon climate-resilient development, but seek solutions that do not compromise growth.

It is possible to meet this challenge while addressing climate change. WRI’s vision is that these countries make a clear link between low-carbon growth and long-term prosperity, and support policies and incentives that advance national development priorities while significantly reducing GHGs. If successful, these countries would redefine the conventional growth paradigm, and offer innovative solutions that set the world firmly on a low-carbon and climate-resilient path.

Use the links below to explore WRI’s work on emerging economies:

WRI’s work by country:

(Click on a highlighted country for publications and other resources)

PRESS RELEASE: New Paper Lays Out Smart Policies for Renewable Energy Growth

Lauren Zelin — Tue, 24 May 2011 14:15:18 -0400

Offers six principles of smart energy policy for developing countries

A recent report from the Intergovernmental Panel on Climate Change (IPCC) said that 77 percent of the world’s energy could come from renewable sources by 2050, as long as governments adopt the right policies. A new working paper, Grounding Green Power, outlines the key components of smart renewable energy policy in developing countries, focusing on the electrical power sector. The paper, from the World Resources Institute (WRI) and the German Marshall Fund of the United States (GMF), in cooperation with the Heinrich Böll Foundation, suggests priorities for international donors looking to make the most efficient investments in clean energy.

“Helping to build a wind farm is a good thing, but when donors support policies that bring down the cost of renewables, they lay the groundwork for many more wind farms and exponentially more renewable energy projects,” said Lutz Weischer, lead author of the paper and Research Analyst at WRI. “Smart renewable energy policies can drive private investment and create the right environment necessary for long-term growth.”

Grounding Green Power identifies the key components of smart energy policies and draws conclusions from on-the-ground experiences in 12 developing countries. The recommendations were based on a workshop with representatives from Brazil, India, Indonesia, Kenya, Mexico, Morocco, Mozambique, South Africa, Sri Lanka, the Philippines, Tanzania and Thailand.

Thomas Kleine-Brockhoff, GMF Senior Director for Policy Programs said, “No two countries are the same, but by convening actors from so many developing countries we have been able to discern best practices that apply across countries. This paper should help the international community as it seeks simultaneously to achieve the goals of development cooperation and reduce the risk of climate change.”

The working paper outlines six principles of smart renewable energy policy that are necessary to achieve transformative deployment at scale, based on the 12 international case studies. According to the authors, a smart renewable energy policy should be:

Comprehensive – strives to create an enabling environment including power sector regulations, investment and financing conditions, suitable electric grid infrastructure, and technical capacity.
Based on clearly defined objectives – includes technology deployment, energy access and economic development goals, in addition to added power generation.
Welcoming to private investment – leverages private investment by promoting attractive and predictable market conditions.
Cost-effective – calls for careful policy decisions that avoid over subsidization of renewables, while removing incentives for fossil fuels.
Supportive of innovation – improves performance, reliability, safety and cost of renewable technologies, to take innovation beyond the lab.
Transparent, accountable and participatory – takes into account the principles of good electricity sector governance, including transparency, accountability, and stakeholder participation.

The paper is intended for audiences including bilateral and multilateral development agencies (the World Bank, bilateral financial institutions, and export-credit agencies); existing multilateral climate funds (Global Environmental Facility and Clean Technology Fund); as well as the new Green Climate Fund; and other international organizations like the International Renewable Energy Agency.

The full working paper is available here.

“Grounding Green Power; Bottom-up perspectives on smart renewable energy policy” was co-authored by Lutz Weischer, Davida Wood, Athena Ballesteros, Xing Fu-Bertaux, of the World Resources Institute and published by the German Marshall Fund of the United States in cooperation with the Heinrich Boell Foundation and WRI.

# #

The World Resources Institute (WRI) is a global environmental think tank that goes beyond research to put ideas into action. We work with governments, companies, and civil society to build solutions to urgent environmental challenges. (www.wri.org)

The German Marshall Fund of the United States (GMF) is a non-partisan American public policy and grantmaking institution dedicated to promoting better understanding and cooperation between North America and Europe on transatlantic and global issues. GMF does this by supporting individuals and institutions working in the transatlantic sphere, by convening leaders and members of the policy and business communities, by contributing research and analysis on transatlantic topics, and by providing exchange opportunities to foster renewed commitment to the transatlantic relationship. In addition, GMF supports a number of initiatives to strengthen democracies. Founded in 1972 through a gift from Germany as a permanent memorial to Marshall Plan assistance, GMF maintains a strong presence on both sides of the Atlantic. In addition to its headquarters in Washington, DC, GMF has six offices in Europe: Berlin, Paris, Brussels, Belgrade, Ankara, and Bucharest. GMF also has smaller representations in Bratislava, Turin, and Stockholm. (www.gmfus.org/)

The Heinrich Böll Foundation is affiliated with the German Green Party. As part of the Green political movement it has developed worldwide as a response to the traditional politics of socialism, liberalism, and conservatism. The main tenets are ecology and sustainability, democracy and human rights, self-determination and justice. HBF places particular emphasis on gender democracy, meaning social emancipation and equal rights for women and men. As a green think tank and an international policy network, the Heinrich Böll Foundation is active in ecology, democracy and human rights worldwide with 30 offices across the globe. (www.boell.de/service/home.html)

Grounding Green Power: Bottom-Up Perspectives on Smart Renewable Energy Policy in Developing Countries

Maggie Barron — Tue, 24 May 2011 12:51:13 -0400

Watch the summary interview with Lead Author Lutz Weischer

This paper was published by the German Marshall Fund of the United States in cooperation with the Heinrich Boell Foundation and the World Resources Institute.

Developing Countries in the Renewable Energy Transformation

In order to meet the intensifying climate challenge, the global energy system must undergo a fundamental transformation, with a rapid increase of renewable energy worldwide. Developing countries are at the forefront of this challenge, since they are expected to add around 80 percent of all new electric generation capacity worldwide in the next two decades.

The deployment of energy from renewable sources is accelerating in developing countries, and already accounts for a higher percentage of electricity generation than in the developed world. In 2008, non-OECD nations generated 21 percent of their electricity from renewable sources including large-scale hydroelectric power (compared with 17 percent in OECD countries), according to International Energy Agency (IEA) statistics. However, this figure must more than double by 2035, to 46 percent, in order to meet the IEA’s “450 scenario,” which outlines a climate friendly pathway for meeting global energy demands.

Transforming the energy system on this scale will require significantly increased support from developed countries, channeled through both bilateral assistance and multilateral institutions, as well as philanthropic initiatives. Our conclusions, derived from a series of case studies and a comprehensive review of existing literature, suggest that donors should deploy financial support more effectively by moving beyond a project-by-project approach to one that creates the right environment for investments in scaled-up, nationwide deployment.

This working paper seeks to assist in this process, by identifying key components of smart renewable energy policy in developing countries, focusing on the power sector. It also provides recommendations for maximizing the effectiveness of international support for deployment of renewable energies, drawn from these on-the-ground experiences in developing countries.

About this Working Paper

Chapter 1 introduces the approach and methodology taken in this paper and describes the key concepts we address. The second chapter discusses what developing countries are already doing to deploy renewable energy sources, and how they can be supported in scaling up such efforts. It also introduces a set of principles of smart renewable energy policy to propel such a transformation, developed by the World Resources Institute. These are based on insights drawn from case studies of existing renewable energy policies in 12 countries in Africa, Asia, and Latin America as well as from existing literature.

The following five chapters each examine one key element of smart renewable energy policy, discuss lessons learned, and identify needs for international support. These cover planning and strategy (Chapter 3), well-designed generation-based incentives (Chapter 4), an enabling policy and regulatory framework (Chapter 5), attractive financing conditions (Chapter 6), and the necessary technical environment (Chapter 7). Our findings and recommendations are summarized in Chapter 8.

Principles of Smart Renewable Energy Policy

We define smart renewable energy policy as the set of rules, regulations, and government actions that lead to an increased share of renewables in total electricity consumption in line with a country’s development objectives. Smart renewable energy policy encourages private investment, achieves its objectives in a cost-effective way, promotes continuous innovation, and is designed through transparent, accountable, and participatory processes.

Presentation

Download Slides (PDF, 839 Kb)

New Initiative Uses Environmental Lens to Promote Government Transparency in Key African Countries

Michael Oko — Tue, 05 Apr 2011 13:44:23 -0400

A new initiative was recently launched to promote government transparency and increase people’s access to information in Ghana, Uganda and South Africa. The Access to Information in Africa: Transparency Models and Lessons Learned (ATI in Africa) project is coordinated by the World Resources Institute (WRI) in partnership with the Centre for Democratic Development (CDD) in Ghana, Greenwatch in Uganda and the Open Democracy Advice Centre (ODAC) in South Africa.

“While there have been recent reforms in Africa that have helped usher in multi-party politics and elections, there are still many gaps in accountability mechanisms, such as access to information laws,” said Victor Brobbey, research fellow for Governance and Legal Policy at CDD. “This initiative is designed to advance reforms in Ghana, Uganda and South Africa that will improve the quality of governance and protect people’s rights in these countries.”

Uganda and South Africa have a comprehensive freedom of information act which grants citizens the right of access to information in the custody of public institutions. In Ghana, a freedom of information bill awaits action in the parliament.

This initiative comes on the heels of recent developments to increase people’s access to information in Liberia and Nigeria. On October 4, 2010, President Ellen Johnson Sirleaf signed into law the Liberian Freedom of Information Act. The signing made Liberia the first West African country with a comprehensive freedom of information law. More recently, on March 16, 2011, the Nigerian Senate passed the Freedom of Information Bill. This followed the passing of a similar bill by the House of Representatives. A “harmonization conference committee” has been appointed to resolve the differences between the Senate and House bills.

“These new laws are a step forward in these two countries—we are looking forward to similar measures in other African countries,” said Peter Veit, senior associate, WRI, and director of the ATI in Africa project. “Working with local partners on the ground in Ghana, Uganda and South Africa, we will be using an objective, analytical approach to explore new opportunities that lie in environmental and natural resource laws to advance people’s rights of access to information, including government-held information on land, oil, natural gas minerals, forests and water.”

The ATI in Africa project is designed improve access to information in Africa by identifying and testing sectoral approaches for citizens and civil society organizations to access information on the environment and high-value natural resources. Transparency infrastructure that provide citizens with multiple avenues to access government-held information are likely to be more robust and secure, and can better protect the right of access to information.

“The ATI in Africa project’s approach to increase access to information though an environmental lens provides a unique approach to help people and improve governance in Africa,” said Tavinder Nijhawan, Senior Management Officer at the International Development Research Centre. “We are excited to be supporting this project, which should help identify new pathways to engage governments, civil society and individuals on environmental and natural resource issues that affect people’s lives and livelihoods.”

*ATI in Africa *is supported principally with funding from the International Development Research Centre (IDRC) in Canada as well as Irish Aid, Dutch Ministry of Foreign Affairs, Swedish International Development Cooperation Agency, and World Bank Development Grant Facility. The IDRC grant will support the project for a period of two years, and is part of IDRC’s new portfolio of investments to catalyze more open and inclusive models of development through research and outreach.

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The World Resources Institute is a global environmental think tank that goes beyond research to put ideas into action (www.wri.org).

Open Democracy Advice Center is a non-profit based in Cape Town. ODAC’s mission is to promote open and transparent democracy; foster a culture of corporate and government accountability; and assist people in South Africa to be able to realize their human rights (http://www.opendemocracy.org.za/).

Greenwatch is an environmental rights advocacy NGO in Uganda that promotes public participation in the sustainable use, management and protection of the environment and natural resources and the enforcement of the Constitutional right to a clean and healthy environment (http://www.greenwatch.or.ug/).

Ghana’s Center for Democratic Development is an independent, nonpartisan and nonprofit research-based and policy-oriented think tank in Accra, Ghana. CDD’s mission is to promote democracy, good governance and the development of liberal economic environment in Ghana in particular and Africa in general. (http://www.cddghana.org/).

International Development Research Center is a Canadian Crown corporation that works in close collaboration with researchers from the developing world in their search for the means to build healthier, more equitable, and more prosperous societies (www.idrc.ca).

PRESS RELEASE: 75% of World’s Coral Reefs Currently Under Threat, New Analysis Finds

Michael Oko — Wed, 23 Feb 2011 21:55:53 -0500

“Reefs at Risk Revisited” report presents comprehensive analysis of threats to coral reefs

A new comprehensive analysis finds that 75 percent of the world’s coral reefs are currently threatened by local and global pressures. For the first time, the analysis includes threats from climate change, including warming seas and rising ocean acidification. The report shows that local pressures— such as overfishing, coastal development, and pollution— pose the most immediate and direct risks, threatening more than 60 percent of coral reefs today.

“Reefs at Risk Revisited,” the most detailed assessment of threats to coral reefs ever undertaken, is being released by the World Resources Institute with the Nature Conservancy, the WorldFish Center, the International Coral Reef Action Network, Global Coral Reef Monitoring Network, and the UNEP-World Conservation Monitoring Center, along with a network of more than 25 organizations. Launch activities are taking place in Washington, D.C., London, Malaysia, Indonesia, the Caribbean, Australia, and other locations around the world.

“This report serves as a wake-up call for policy-makers, business leaders, ocean managers, and others about the urgent need for greater protection for coral reefs,” said Dr. Jane Lubchenco, under secretary of commerce for oceans and atmosphere and NOAA administrator. “As the report makes clear, local and global threats, including climate change, are already having significant impacts on coral reefs, putting the future of these beautiful and valuable ecosystems at risk.”

Local pressures – especially overfishing and destructive fishing – are causing many reefs to be degraded. Global pressures are leading to coral bleaching from rising sea temperatures and increasing ocean acidification from carbon dioxide pollution. According to the new analysis, if left unchecked, more than 90 percent of reefs will be threatened by 2030 and nearly all reefs will be at risk by 2050.

“Coral reefs are valuable resources for millions of people worldwide. Despite the dire situation for many reefs, there is reason for hope,” said Lauretta Burke, senior associate at WRI and a lead author of the report. “Reefs are resilient, and by reducing the local pressures we can buy time as we find global solutions to preserve reefs for future generations.”

The report includes multiple recommendations to better protect and manage reefs, including through marine protected areas. The analysis shows that more than one-quarter of reefs are already encompassed in a range of parks and reserves, more than any other marine habitat. However, only six percent of reefs are in protected areas that are effectively managed.

“Well managed marine protected areas are one of the best tools to safeguard reefs,” said Mark Spalding, senior marine scientist at the Nature Conservancy and a lead author of the report. “At their core, reefs are about people as well as nature: ensuring stable food supplies, promoting recovery from coral bleaching, and acting as a magnet for tourist dollars. We need apply the knowledge we have to shore up existing protected areas, as well as to designate new sites where threats are highest, such as the populous hearts of the Caribbean, Southeast Asia, East Africa and the Middle East.”

Reefs offer multiple benefits to people and the economy – providing food, sustaining livelihoods, supporting tourism, protecting coasts, and even helping to prevent disease. According the report, more than 275 million people live in the direct vicinity (30 km/18 miles) of coral reefs. In more than 100 countries and territories, coral reefs protect 150,000 km (over 93,000 miles) of shorelines, helping defend coastal communities and infrastructure against storms and erosion.

For the first time, the report identifies the 27 nations most socially and economically vulnerable to coral reef degradation and loss. Among these, the nine most vulnerable countries are: Haiti, Grenada, Philippines, Comoros, Vanuatu, Tanzania, Kiribati, Fiji, and Indonesia.

“The people at greatest risk are those who depend heavily on threatened reefs, and who have limited capacity to adapt to the loss of the valuable resources and services reefs provide,” said Allison Perry, project scientist at the WorldFish Center and a lead author. “For highly vulnerable nations – including many island nations – there is a pressing need for development efforts to reduce dependence on reefs and build adaptive capacity, in addition to protecting reefs from threats.”

The report is an update of “Reefs at Risk,” released by WRI in 1998, which served as an important resource for policymakers to understand and address the threats of reefs. The new report uses the latest data and satellite information to map coral reefs— including a reef map with a resolution 64 times higher than the original report.

“Through new technology and improved data, this study provides valuable tools and information for decision makers from national leaders to local marine managers,” said Katie Reytar, research associate at WRI and a lead author. “In order to maximize the benefits of these tools, we need policymakers to commit to greater action to address the growing threats to coral reefs.”

Find out more at: www.wri.org/reefs

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The World Resources Institute (WRI) is a global environmental think tank that goes beyond research to put ideas into action. We work with governments, companies, and civil society to build solutions to urgent environmental challenges. (www.wri.org)

The Nature Conservancy(TNC) is a leading conservation organization working around the world to protect ecologically important lands and waters for nature and people. The Conservancy and its more than one million members have protected more than 480,000 sq km of land and engage in more than100 marine conservation projects. The Conservancy is actively working on coral reef conservation in 24 countries, including the Caribbean and the Coral Triangle. (www.nature.org)

WorldFish Center is an international, nonprofit, nongovernmental organization dedicated to reducing poverty and hunger by improving fisheries and aquaculture. Working in partnership with a wide range of agencies and research institutions, WorldFish carries out research to improve small-scale fisheries and aquaculture. Its work on coral reefs includes ReefBase, the global information system on coral reefs. (www.worldfishcenter.org)

International Coral Reef Action Network (ICRAN) is a global network of coral reef science and conservation organizations working together and with local stakeholders to improve the management of coral reef ecosystems. ICRAN facilitates the exchange and replication of good practices in coral reef management throughout the world’s major coral reef regions. (www.icran.org)

United Nations Environment Programme-World Conservation Monitoring Centre (UNEP-WCMC) is an internationally recognized center for the synthesis, analysis, and dissemination of global biodiversity knowledge. UNEP-WCMC provides authoritative, strategic, and timely information on critical marine and coastal habitats for conventions, countries, organizations, and companies to use in the development and implementation of their policies and decisions. (www.unep-wcmc.org)

Global Coral Reef Monitoring Network (GCRMN) is an operational unit of the International Coral Reef Initiative (ICRI) charged with coordinating research and monitoring of coral reefs. The network, with many partners, reports on ecological and socioeconomic monitoring and produces Status of Coral Reefs of the World reports covering more than 80 countries and states. (www.gcrmn.org)

Clean Energy, Corruption, and Case Studies on Electricity Governance

Davida Wood — Thu, 23 Dec 2010 11:35:49 -0500

Developing countries are expecting billions of dollars to fund a clean energy transformation. How can they ensure this money is spent in the public interest?

At a moment in which countries seek billions of dollars of financing to transition to low-carbon economies, there has been little focus on how decisions about these expenditures are actually made.

But with new technologies and new sources of financing emerging as potential drivers of an energy transformation, it is critical to understand the institutional structures and governance practices that shape sector choices.

The Electricity Governance Initiative explored these issues on a panel at 14th International Anti-Corruption Conference in November 2010. Titled “Clean Energy: Conflicts of Interest and Corruption in the Electricity Sector,” the panel presented case-studies of the institutional backdrop for electricity sector planning and procurement. The panel examined how public funds for both conventional and renewable energy may serve vested interests. It also explored ways in which electricity sector institutions in developing countries may be improved to protect public interests in this capital-intensive sector.

Governance challenges persist even as the fuel is changed from conventional to renewable resources.

Case studies from Thailand, South Africa, Indonesia and India demonstrate large governance gaps, and multiple avenues for corruption:

Thailand’s power development planning process is premised on perpetuating gains for vested interests and designed to continue providing perverse incentives to extractive and nuclear industries, though various alternatives exist.
South African anti-corruption agencies are unable to take action even where conflicts of interests are visible in decision-making and seek higher levels of “evidence” of corruption or undue influence.
Indonesia’s government continue to sign private contracts with independent power plants (IPPs) outside of the public domain, committing to buy electricity at higher costs with virtually no public or regulatory oversight.
Clean energy development and deployment in India has shown how information asymmetry, limited regulatory and public oversight and the calculation and rolling out of incentives and subsidies can cloud decision-making in the sector.

The presentations demonstrated how institutional biases and lack of transparency can combine to slow transformation and distort pricing. Even in the “clean energy” sector, lack of transparency underscores the fact that governance challenges persist even as the fuel is changed from conventional to renewable resources.

A common theme in the session was the challenge of identifying and combating corruption, given the technical nature and complexities in the electricity sector, and a call for greater civil society coordination to combat corruption in the sector. Panelists focused on looking at corruption within a larger “good governance” paradigm: the creation of processes aimed at improving transparency to reduce corruption and lead to decisions in the electricity sector that better serve the public interest. The four presenters are partners of the Electricity Governance Initiative (EGI), a global network of civil society organizations dedicated to promoting transparent, accountable, and inclusive decision-making in the Electricity Sector. The World Resources Institute and Prayas Energy Group serve as the Secretariat.

Read these case studies here:

Governance and Power Development Planning in Thailand
Corruption and Procurement in South Africa: A Case-Study from Eskom
Independent Power Plants and Corruption in Indonesia
Clean Energy and Regulation: India’s Challenges of Information Asymmetry and Weak Oversight