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Governance & Access

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.

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.

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.

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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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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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.

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.”


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.

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.”

A number of Latin American and Caribbean (LAC) countries recently took a huge step forward in ensuring environmental democracy for their citizens. At a UN Economic Commission for Latin America and the Caribbean (ECLAC) meeting in early November, these countries agreed on a road map to ensure full implementation of Principle 10 of the Rio Declaration.

Principle 10, otherwise known as the environmental democracy principle, affirms that all citizens have a say in the environmental and development decisions that directly impact them. In one of the few bright spots of the Rio+20 sustainable development conference this past June, 10 LAC countries—Ecuador, Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, Panama, Paraguay, Peru, and Uruguay—adopted and publicly signed the Principle 10 Declaration. This month’s ECLAC meeting in Santiago, Chile marked the first gathering of Government representatives after this historic Declaration. Most importantly, governments adopted an agreed-upon road map defining a process to draft a Principle 10 Action Plan, which will be submitted for adoption in early April 2013.


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