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Governance & Access

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.

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.

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).

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.

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.

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.

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

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

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

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

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

The Climate Investment Funds (CIFs), one of the world’s largest dedicated funding facilities for climate change mitigation/adaptation projects, have now been in operation for five years. It’s a good time to step back and evaluate what lessons we’re learning from these important sources of climate finance.

WRI recently did just that, inviting a group of representatives from countries accessing CIFs funding to speak at our offices. It became clear from the discussions that while some valuable progress has been made, there is still plenty of room for improvement. In particular, lending institutions involved with the CIFs could deploy climate finance more effectively by fostering a stronger sense of country ownership over mitigation/adaptation projects.

The Good News: Climate Investment Funds Are Contributing to Change on the Ground

We’re starting to see some countries make progress on implementing climate change mitigation and adaptation projects with funds from CIFs programs (see text box). Panelists at the WRI event highlighted a few examples:

Since 2009, more than 30 countries have submitted proposals for REDD+ readiness grants to start addressing the social, economic, and institutional factors that contribute to forest loss. Many countries have made encouraging strides in defining their plans to become “ready” for REDD+.

Yet, in a new WRI analysis of 32 country proposals, we identify the need for stronger commitments and strategies to address land and forest tenure challenges. While most countries identify secure land tenure as critical to successful REDD+ programs, relatively few outline specific objectives or next steps to address weaknesses in land laws or their implementation. Lack of clear strategies to address land tenure challenges could significantly hinder efforts to reduce emissions from deforestation and forest degradation.

The new working paper from WRI’s Governance of Forests Initiative reviews 32 readiness proposals submitted to two grant programs supporting REDD+ readiness: the Forest Carbon Partnership Facility (FCPF) and the UN-REDD Programme. We reviewed these documents to assess how REDD+ countries plan to address eight core issues (see Box 1 below). The analysis sheds light on how REDD+ issues are understood and prioritized, as well as where more technical and financial support is needed.

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

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

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


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