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  • Blog post

    Lord Nicholas Stern Identifies 3 Obstacles to International Climate Action

    Six years after the release of the landmark Stern Review on the Economics of Climate Change, Lord Nicholas Stern revealed yesterday the most challenging hurdle ahead for international climate action. Overcoming this obstacle is not a matter of figuring out the scientific or policy pathways needed to curb climate change—nor is it determining what technologies to adopt or what investments must be made. “What’s missing is the political will,” said Stern.

    The famed economist elaborated on this problem during an address yesterday hosted by WRI and the International Monetary Fund (IMF), “Fostering Growth and Poverty Reduction in a World of Immense Risk.” Dr. Andrew Steer, WRI’s president, and Christine Lagarde, managing director of the IMF, provided opening remarks, articulating the serious economic and human risks climate change poses. Stern focused on the main hurdle to mitigating these risks—political will.

    The problem, according to Stern, reflects a lack of understanding in three main areas: climate change’s real risks, the benefits of an alternative pathway, and the need for collaboration and mutual understanding.

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  • Blog post

    Lessons from Thailand: Mobilizing Investment in Energy Efficiency

    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 Thailand’s energy efficiency sector is an interesting case study. It demonstrates how strong government leadership combined with strategic support from international climate finance can drive the transition toward an energy-efficient economy.

    In the early 1990s, Thailand’s economy was growing rapidly at 10 percent per year; the power sector was growing even faster. The government recognized that conserving energy would provide a low-cost way to meet its citizens’ rising demand for energy.

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  • Blog post

    4 Ways the Green Climate Fund Can Support "Readiness" for Climate Finance

    Research shows that developing countries will need about $531 billion of additional investments in clean energy technologies each year in order to limit global temperature rise to 2° C above pre-industrial levels, thus preventing climate change’s worst impacts. While developed countries have pledged to provide $100 billion of climate finance per year, this amount is well below what’s needed to help developing nations mitigate and adapt to climate change.

    So how can countries bridge this funding gap? The answer lies in part on how well developing countries implement “readiness” activities, as well how effectively developed nations and international institutions like the Green Climate Fund (GCF) can mobilize finance to support them.

    The Need for Readiness

    To attract investments on the scale required, developing country governments must provide an attractive investment climate—one that encourages public and private sector investors to put their money into climate-friendly projects like solar and wind energy. On their end, developed countries need to offer financial and technical support for “readiness” activities that create the right conditions for said investments. Readiness includes any activity that makes a country better positioned to attract investments in climate-friendly projects or technologies. A few examples include: developing a policy to promote energy efficiency in industry; passing a law that gives a new or existing institution the mandate to promote renewable energy; conducting an assessment of a country’s wind energy resources; or strengthening a bank’s capacity to lend to small businesses in low-carbon sectors. International institutions such as the GCF can play a big role in supporting readiness activities, thereby helping developing nations attract the investments that will help them transition onto a low-carbon, climate-resilient development path.

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  • Blog post

    Civil Society Groups Help Make Electricity Affordable and Sustainable

    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 one of a four-part blog series, “Improving Electricity Governance,” which explores the key components involved in making electricity decision-making more open, inclusive, and fair. The series draws on the experiences of WRI’s Electricity Governance Initiative, which are documented in a new report, “Shining a Light on Electricity Governance.”

    Access to electricity poses major challenges in India. Service varies considerably across the country. In some regions, fewer than 40 percent of people have access to electricity, while half of all rural households lack access to power. These issues will become more challenging as demand for energy is expected to double by 2020. The country will need to figure out how to provide affordable, reliable power in ways that benefit both people and the planet.

    But India has a powerful ally in overcoming these electricity challenges: civil society organizations (CSOs).

    People’s Monitoring Group on Electricity Regulation Steps In

    In the state of Andhra Pradesh, the People’s Monitoring Group on Electricity Regulation (PMGER), a partner with WRI’s Electricity Governance Initiative (EGI), acts as an advocate for affordable, reliable power. The organization is a consortium of NGOs whose constituencies include farmers’ organizations, environmental and development advocacy groups, electricity advocacy groups, workers’ unions, and research organizations. PMGER ensures that Andhra Pradesh’s electricity decisions are fair, effective, and made with citizens’ best interests in mind.

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  • Blog post

    4 Grand Challenges to Energy, Food, and Water

    The world is on track to become a very different place in the next two decades. Per capita income levels are rising, the global middle class is expanding, and the population is set to hit 8.3 billion people by 2030. At the same time, urbanization is happening at an accelerated pace—the volume of urban construction over the next 40 years could equal that which has occurred throughout history to date.

    While these projections would bring benefits like reduced poverty and individual empowerment, they have serious implications for the world’s natural resources. Global growth will likely increase the demand for food, water, and energy by 35, 40, and 50 percent respectively by 2030. Add continued climate change to the equation, and the struggle for resources only becomes more intense.

    These are just a few of the estimates included in the new Global Trends 2030: Alternative Worlds report from the U.S. National Intelligence Council (NIC) that was released last month. The assessment, which the NIC puts out every four years, reflects in-depth research on trends and geopolitical changes that may unfold in the next 15-20 years—everything from urbanization to conflict to resource scarcity.

    Assessments like the NIC’s are invaluable in providing decision makers with forward-looking insights and analysis. But while the report offers a glimpse into the future, what’s more important is how we respond today to the questions these “megatrends” raise.

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  • Blog post

    6 Top Environment and Development Stories to Watch in 2013

    This post originally appeared on Bloomberg.com.

    As we enter 2013, there are signs of growth and economic advancement around the world. The global middle class is booming. More people are moving into cities. And the quality of life for millions is improving at an unprecedented pace.

    Yet, there are also stark warnings of mounting pressures on natural resources and the climate. Consider: 2012 was the hottest year on recordfor the continental United States. There have been 36 consecutive years in which global temperatures have been above normal. Carbon dioxide emissions are on the rise – last year the world added about 3 percent more carbon emissions to the atmosphere. All of these pressures are bringing more climate impacts: droughts, wildfires, rising seas, and intense storms.

    All is not lost, but the window for action is rapidly closing. This decade--and this year--will be critical.

    Against that backdrop, experts at WRI have analyzed trends, observations, and data to highlight six key environmental and development stories we’ll be watching in 2013.

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  • Blog post

    Farewell, 2012. You Taught Us Much.

    This year has been one of those worst-of-years and best-of-years. In its failures, there are signs of hope.

    An unprecedented stream of extreme weather events worldwide tragically reminded us that we’re losing the fight against climate change. For the first time since 1988, climate change was totally ignored in the U.S. presidential campaign, even though election month, November, was the 333rd consecutive month with a global temperature higher than the long-term average. A WRI report identified 1,200 coal-fired power plants currently proposed for construction worldwide. The Arctic sea ice reached its lowest-ever area in September, down nearly 20 percent from its previous low in 2007. And disappointing international negotiations in June and December warned us not to rely too much on multilateral government-to-government solutions to global problems.

    But 2012 was also a year of potential turning points. A number of new “plurilateral” approaches to problem-solving came to the fore, offering genuine hope. A wave of emerging countries, led by China, embraced market-based green growth strategies. Costs for renewable energy continued their downward path, and are now competitive in a growing number of contexts. Bloomberg New Energy Finance reports that global investment in renewable energy was probably around $250 billion in 2012, down by perhaps 10 percent over the previous year, but not bad given the eliminations of many subsidy programs, economic austerity in the West, and the sharp shale-induced declines in natural gas prices. And the tragedy of Hurricane Sandy, coupled with the ongoing drought covering more than half of the United States (which will turn out to be among the costliest natural disasters in U.S. history) may have opened the door to a change of psychology, in turn potentially enabling the Obama Administration to exhibit the international leadership the world so urgently needs, as many of us have advocated.

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  • Blog post

    A Closer Look at the Evolution of Brazil’s Overseas Investments

    From 2001 to 2011, Brazil’s per capita GDP more than tripled. At the heart of this domestic economic boom is the Brazilian Development Bank (BNDES).

    BNDES is Brazil’s key financial institution for domestic long-term financing, and it’s one of the main financial engines behind Brazil’s take-off as a leading Latin American economy. Its lending and equity investments are becoming increasingly important internationally.

    But what’s driving all of this growth? And what standards exist to ensure that Brazil’s overseas investments aren’t coming at the expense of the environment and human well-being? WRI seeks to address these questions and more in its new slide deck, “Emerging Actors in Development Finance: A closer look at Brazil’s Growth, Influence and the Role of BNDES.”

     

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  • Blog post

    Why Africa Needs Open Legislatures

    This post was co-written with Gilbert Sendugwa, Coordinator and Head of Secretariat for the Africa Freedom of Information Centre.

    Open government requires an open executive branch, an open legislature, and an open judiciary. Historically, however, global attention to government transparency and access to information has focused on the executive branch.

    But this may finally be changing. In April of this year, 38 civil society organizations from around the world convened in Washington, D.C. and agreed to work together to advance open parliaments. In September, more than 90 civil society organizations from more than 60 countries launched the Declaration on Parliamentary Openness in Rome.

    Civil society attention on lawmakers and legislatures is critically important—especially in Africa, where parliaments have long worked behind closed doors (most legislatures on the continent are parliaments). Transparency is needed for civil society to hold legislators accountable for their decisions and actions, and to ensure they are responsive to the needs and concerns of their constituents.

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  • Blog post

    A Closer Look at China’s Overseas Investment

    When it comes to overseas development finance, China is definitely a country to watch. Due to the country’s unprecedented economic growth, China’s overseas investments have increased exponentially in recent years. Between 2009 and 2010, two Chinese state-owned banks lent more money to other developing nations than the World Bank did. In fact, between 2002 and 2011, China’s outward foreign direct investment (OFDI) stock grew from $29 billion to more than $424 billion.

    But what factors are driving all of this growth? What areas of the world are on the receiving end of China’s OFDI flows? And what sorts of social and environmental standards are in place for banks’ and enterprises’ investments? WRI seeks to answer these questions and provide additional background information in its recently updated slide deck, “Emerging Actors in Development Finance: A Closer Look at China’s Overseas Investment.”

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President Obama’s Climate Action Plan: Can it Shift the World Away from Coal?

While reactions to President Obama’s newly announced climate plan have focused on domestic action, the plan actually has potentially significant repercussions for the rest of the world. These repercussions will come in part through his commitment to limit U.S. investments in new coal-fired power plants overseas. If fully implemented, the plan will help ensure that the U.S. government channels its international investments away from fossil fuels and toward clean energy. The move sends a powerful signal—and hopefully, will inspire similar action by other global lenders.

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Peter Veit

Acting Director, Governance Center

Peter is Acting Director of WRI’s Governance Center and Project Manager of the Land and Resources Rights (LRR) initiative. LRR seeks to strengthen land tenure and natural resource rights of rural...

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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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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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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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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China Invests Billions in International Renewable Energy Projects

It’s well-known that China ranks first in the world in attracting clean energy investment, receiving US$ 65.1 billion in 2012. But new analysis from WRI shows another side to this story: China is increasingly becoming a global force in international clean energy investment, too. In fact, the country has provided nearly $40 billion dollars to other countries’ solar and wind industries over the past decade.

This investment is consistent with a broader trend of major emerging economies like China, India, and Brazil becoming important sources of global overseas invest¬ments. WRI’s new working paper, China’s Overseas Investments in the Wind and Solar Industries: Trends and Drivers, helps to better understand China’s renewable energy investments overseas, as well as the policy and market forces that drive them.

China’s Overseas Wind and Solar Investments, By the Numbers

According to our research, Chinese companies have made at least 124 investments in solar and wind industries in 33 countries over the past decade (2002 – 2011), more than half of which were made in 2010 and 2011 (see Figure 1). Despite some gaps in the data that prevent us from generalizing about all of China’s wind and solar investments, we learned that:

  • Of the 54 investments for which financial data were available, the cumulative amount invested came to nearly US$40 billion.
  • China invested roughly US$10 billion in 16 wind projects and US$27.5 billion in 38 solar investments.
  • Of 53 investments with capacity data available, the cumulative installed capacity added was nearly 6,000 MW.
  • The majority of investments were in electricity generation. Several investments were made in manufacturing facilities and to establish sales and marketing offices.
  • Most of the investments were in developed countries. A huge amount went to the United States, as well as Germany, Italy, and Australia. A handful of developing countries—including South Africa, Pakistan, and Ethiopia—also attracted multiple investments.

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The Post-2015 Development Agenda: Linking Sustainability and Poverty Eradication

The High-Level Panel on the Post-2015 Development Agenda provided a welcome injection of energy and ambition into the future of development with its final report released last week. While the details will be parsed over the coming months, the report’s recommendations were at once bold and practical. The Panel sees that the promise of a world free of extreme poverty is within reach, and achieving this vision requires that sustainability and equity should be at the core of the global development agenda.

While there have been many such calls to move the world onto a more sustainable and equitable development path, if the Panel’s proposals are to be truly acted upon, the results would be transformational.

With that in mind, let’s look at how the report stacks up against the four “issues to watch” that we highlighted last week:

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

This was a clear winner, as the Panel recognized that environmental sustainability and poverty eradication are inextricably linked. The report identified sustainable development as one of five essential “transformational shifts.” Unlike the Millennium Development Goals (MDGs), which relegated the environment to just one of eight goals, the panel offered four goals--on energy, water, food, and natural resources--that directly connect human well-being with care for the planet.

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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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