Inter Press ServiceGreen Economy – Inter Press Service http://www.ipsnews.net News and Views from the Global South Mon, 23 Oct 2017 07:17:18 +0000 en-US hourly 1 https://wordpress.org/?v=4.8.2 The Future for Financing Africa’s Renewable Energyhttp://www.ipsnews.net/2017/10/future-financing-africas-renewable-energy/?utm_source=rss&utm_medium=rss&utm_campaign=future-financing-africas-renewable-energy http://www.ipsnews.net/2017/10/future-financing-africas-renewable-energy/#respond Thu, 19 Oct 2017 14:30:25 +0000 Wambi Michael http://www.ipsnews.net/?p=152591 Wambi Michael interviews Henning Wuester, Director Knowledge, Policy and Finance Centre, International Renewable Energy Agency (IRENA).

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Henning Wuester in conversation with Wisdom AhiatakuTogobo, Director Renewable and Alternate Energy, Ghana

Henning Wuester in conversation with Wisdom AhiatakuTogobo, Director Renewable and Alternate Energy, Ghana

By Wambi Michael
ADDIS ABABA, Oct 19 2017 (IPS)

Lack of energy access presents a formidable challenge to Africa and lack of access to financing has been singled out as the biggest reason why over 620 million people living on the continent are stuck in energy poverty.The issue of inadequate financing, especially for renewable energy sources, was among the pressing concerns as leaders, scientists and policy leader met at the Global Green Growth Week conference in Ethiopia.

Governments and their private sector and international development partners say Africa needs to attract financing for renewable energy for it to achieve most of the social development goals –SDGS. But the question is where the financing will come from and when?

Henning Wuester oversees IRENA’s work on knowledge, Policy and Finance, including the production of up-to-date renewable energy data and information and analysis to identify best practice in renewable energy policy and finance.

He spoke with IPS about the potential of renewable energy in unlocking Africa’s green growth potential and why financing is crucial.

IPS: Financing of renewable energy is not penetrating Africa much as it is in Asia. Can you give an overview about what is
happening in Africa in terms attracting financing for renewable energy?

Henning Wuester: I agree that financing is not picking up as much as other countries like for example in Asia where the growth is much more rapid. We are seeing less than USD10 billion investment in renewables in Africa. We need to triple it or increase it to more than USD30 billion to reach the cost effective potential for renewables that Africa has.

IPS: Why are we not seeing that flow in Africa given its vast renewable energy potential and a big population without access
to energy?

We are seeing less than USD10 billion investment in renewables in Africa. We need to triple it or increase it to more than USD30 billion to reach the cost effective potential for renewables that Africa has.
HW: One aspect is that Africa is relying heavily on public finance and of course public finance is limited. And so you can’t scale up using public finance. Budgets are limited and international development finance is limited.

IPS: So what can be done to have the finance flow to Africa’s energy?

HW: What has to happen is a shift in the way public finance is used. Public finance has to be focused on enabling additional finance by mobilising the private investors that are very eager to invest in renewable energy. Then we could scale up more rapidly.

IPS: What is the private sector looking for?

HW: Private sector is looking for markets. I hear from them that they are much interested in Africa. They see great potential, they see a lot of consumers that want to buy energy and they see economic growth in many countries in Africa. What they are not sufficiently comfortable with is the risk profile for investment in renewables in Africa. They are not yet comfortable that
governments are serious about the policy frameworks they are putting in place and that the microeconomic risks are addressed. Currency risk is an issue where you see many currencies depreciating very rapidly in some African countries. That poses a mismatch between the revenue stream from those that buy the energy and investors that often come with hard currency funds.

Overcoming this again requires a more active role of public finance institutions. In some cases public finance institutions are putting in place vehicles that enable public finance to co-finance. They are putting in place some hedging mechanisms to deal with exchange rate risks.

IPS: Is there actually a market for renewable energy in Africa? Some have said the population is big but has no effective
demand.

HW: Yes there is a huge market. We have estimated that you can increase renewable energy by 310 GWh in terms of capacity. Far more than 100 GWh that were are talking about right now. That is by 2030. This is cost effective because renewables [will be] operating competitively against other sources of energy, whether fossil fuel-based or other sources of electricity production. We have private companies that offer business models with very small payments so that consumers can benefit from off grid solar light. Solar home systems are increasingly becoming more attractive. Many of the new offers include more
attractive packages including TV.So it is a complete electricity solution for homes.

IPS: So is there any future for financing of Africa’s renewable energy?

HW: Absolutely. We are taking to investors around the world and they are looking at the African market. They know that this is a market that can be as interesting as Asia if certain conditions fall into place. On the other side we see some African leaders are recognising that they have an opportunity. So they will work towards putting these conditions in place. Then the financing issue will go away. There is enough money. That is not the issue. Money is not at the right place at the moment but it will come.

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Argentina’s Biodiesel Plagued by Commercial and Environmental Challengeshttp://www.ipsnews.net/2017/10/argentinas-biodiesel-plagued-commercial-environmental-challenges/?utm_source=rss&utm_medium=rss&utm_campaign=argentinas-biodiesel-plagued-commercial-environmental-challenges http://www.ipsnews.net/2017/10/argentinas-biodiesel-plagued-commercial-environmental-challenges/#respond Wed, 18 Oct 2017 07:00:49 +0000 Daniel Gutman http://www.ipsnews.net/?p=152563 The Argentine biodiesel industry, which in the last 10 years has become one of the most powerful in the world, has an uncertain future, faced with protectionist measures in the United States and Europe and doubts in the international scenario about the environmental impact of these fuels based on agricultural products. In August, the U.S. […]

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A view of Enresa, one of Argentina’s biodiesel plants. The country's biofuel production capacity is four million tons, but more than half is idle, due to a lack of external markets and limitations in domestic consumption. Credit: Courtesy of CEPREB

A view of Enresa, one of Argentina’s biodiesel plants. The country's biofuel production capacity is four million tons, but more than half is idle, due to a lack of external markets and limitations in domestic consumption. Credit: Courtesy of CEPREB

By Daniel Gutman
BUENOS AIRES, Oct 18 2017 (IPS)

The Argentine biodiesel industry, which in the last 10 years has become one of the most powerful in the world, has an uncertain future, faced with protectionist measures in the United States and Europe and doubts in the international scenario about the environmental impact of these fuels based on agricultural products.

In August, the U.S. government blocked in practice the import of Argentine biodiesel, which is made exclusively from soybeans, by imposing high import duties, arguing dumping, or unfair competition with local soybean producers.

One month later, Argentina recovered, at least partially, from the economic effect of this measure, when the European Union (EU) complied with a World Trade Organisation (WTO) ruling and lowered – although they did not eliminate – the anti-dumping tariffs they had imposed on the product in 2013.

“We are convinced that there is protectionism hidden behind false arguments. The decision by the Donald Trump administration not only affects consumers in the U.S., where fuel prices are already on the rise, but also delays the replacement of oil,” said Gustavo Idígoras, international relations consultant for the Argentine Chamber of Biofuels.

In his view, “the lowering of tariffs in the EU allows us to recover a commercial opportunity that had been closed arbitrarily, but it will not replace the U.S. market.”

The EU had heavily invested in biofuels until 2012, but began to reduce its use since 2015, when it considered that devoting agricultural raw materials to transport fueled deforestation and accelerated climate change.

This reasoning was disputed in his dialogue with IPS by Idígoras, who was a commercial attaché for Argentina before the EU in Brussels between 2004 and 2009.

“The use of biodiesel generates 70 percent savings in emissions of greenhouse gases, as international studies show, and is a fundamental tool in the fight against global warming,” he argued.

Argentina, a major soy producer since the commercialisation of the first transgenic seeds from biotech giant Monsanto was authorised in the 1990s, began to develop its biodiesel industry in 2007.

That year, a law to promote biofuels came into force, requiring a certain proportion to be included in petroleum-based fuels sold in the country.

“Today the country has an installed capacity to produce 4.4 million tons per year of biodiesel, 70 percent of which is produced by 10 transnational corporations.

“This country is the third largest producer of soybean oil biodiesel, after the United States and Brazil, but it is the leading exporter of biofuels, taking all raw materials into account,” explained Julio Calzada, director of Economic Studies at the Rosario Stock Exchange (BCR).

Most of the biodiesel-producing plants are near the central city of Rosario, where soy exports are shipped out from its river port to the Atlantic Ocean.

However, more than half of the national production capacity is currently idle.

The domestic market consumes 1.2 million tons, due to the obligation to incorporate 10 percent of biofuel into diesel.

Although the industry is pressing the government of Mauricio Macri to increase the proportion, automotive companies are lobbying in the opposite direction, arguing that it could affect the performance of the engines.

The country also produces ethanol, from maize and sugarcane, but in an amount that only covers domestic use. In 2016, according to official data, it produced 815 million litres, destined almost entirely to be mixed with fuel sold in the country, which according to the 2007 law should include 12 percent biofuel.

In 2016, Argentine exports of biodiesel amounted to 1.6 million tons which generated 1.175 billion dollars, according to data from the BCR.

However, more than 90 percent of that was exported to the United States, which in August brought purchases to a halt when it slapped an average tariff of 57 percent on Argentine biodiesel.

The reason given was that Argentina’s production of biodiesel is locally subsidised, since its exports are not taxed, unlike soybeans and soybean oil which do pay export taxes amounting to 30 and 27 percent of their value, respectively.

The decision left the Argentine government in a particularly uncomfortable position, because it was adopted only a few days after U.S. Vice President Mike Pence was given a friendly reception in Buenos Aires, where he praised the economic reforms carried out by President Mauricio Macri, in power since December 2015.

The Argentine Foreign Ministry rejected the U.S. decision in an Aug. 24 statement, saying that biodiesel “derives its success (in the U.S. market) from the recognised competitiveness of the soybean production chain in our country” and announced negotiations to try to reverse the Washington measure.

However, not only have they not been successful so far, but reportedly, in the near future the United States could raise import duties on Argentine biodiesel, due to the alleged unfair competition.

The EU also accused Argentina of dumping – selling at a lower price than normal – when it imposed a 24 percent tariff on Argentine biodiesel in 2013 – a rate that had been miscalculated, according to the WTO’s March 2016 ruling, which the EU complied with last month.

However, it is not only economic issues but also environmental ones that cast a shadow of uncertainty on the future of Argentine biodiesel.

“Beyond the fact that using crops for fuel goes against food uses, Argentine biodiesel is not green at all,” said Hernán Giardini, coordinator of the Greenpeace Argentina Forests campaign.

“The emissions avoided by the substitution of oil could be less than those generated to transport soybeans, which in Argentina is done by truck. In addition, soy accounts for more than half of all deforestation in recent years,” he told IPS.

On the other hand, Jorge Hilbert, an international consultant at the National Institute of Agricultural Technology, said that the environmental criticism against Argentine biodiesel actually arise from economic and political interests.

“Argentine biofuels are meeting the goals of emission reduction agreed at a global level, given the characteristics of our agricultural system,” he told IPS.

Hilbert claimed that “80 percent of the grains used are grown in the Rosario area, in soils with more than 100 years of agriculture, where there are no problems of deforestation or biodiversity.”

“The oil used for biodiesel is a byproduct of the soybean that Argentina produces in such quantity that there is no market for it. Its use in biofuel does not compete with food use,” he argued.

For Daniel Lema, an economist who specialises in agriculture, “U.S. and European producers are affected by Argentine biodiesel, and the problem is that our tax scheme gives them an argument for applying protectionist measures.

“Argentina should unify its taxes on all by-products of soy in order to not lose markets,” he told IPS.

Lema warned about another source of uncertainty with regard to biofuel. “Biodiesel faces another obstacle: it is more expensive than diesel derived from petroleum, and for the time being consumers have shown no signs of being willing to pay more in exchange for reducing emissions of polluting gases,” he said.

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The IMF and Climate Change: Three Things Christine Lagarde Can Do to Cement Her Legacy on Climatehttp://www.ipsnews.net/2017/10/imf-climate-change-three-things-christine-lagarde-can-cement-legacy-climate/?utm_source=rss&utm_medium=rss&utm_campaign=imf-climate-change-three-things-christine-lagarde-can-cement-legacy-climate http://www.ipsnews.net/2017/10/imf-climate-change-three-things-christine-lagarde-can-cement-legacy-climate/#respond Wed, 11 Oct 2017 18:51:41 +0000 Leonardo Martinez-Diaz http://www.ipsnews.net/?p=152426 The International Monetary Fund (IMF) and climate change do not often appear in the same headline together. Indeed, environmental issues have been, at most, peripheral to the Fund’s core functions. But now economists inside and outside the IMF are beginning to understand that climate change has significant implications for national and regional economies, and so […]

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By Leonardo Martinez-Diaz
WASHINGTON DC, Oct 11 2017 (IPS)

The International Monetary Fund (IMF) and climate change do not often appear in the same headline together. Indeed, environmental issues have been, at most, peripheral to the Fund’s core functions. But now economists inside and outside the IMF are beginning to understand that climate change has significant implications for national and regional economies, and so it’s worth reconsidering the Fund’s role in addressing the climate challenge.

Christine Lagarde, head of IMF. Flickr/World Economic Forum

To her credit, Managing Director Christine Lagarde has boldly injected the IMF’s voice into the global debate on policy responses to climate change and has identified a number of roles the Fund can play.

The Fund has conducted valuable work on how carbon emissions can be reduced through market prices that reflect the negative externalities of those emissions. In particular, the Fund has become a leading voice for quantifying and streamlining or eliminating fossil fuel subsidies, as well as for introducing carbon-pricing mechanisms.

What is still missing, however, is a bigger role for the IMF in enabling countries to prepare and manage the potential impacts of climate change. There are three things the Fund could do, building on its current efforts, that would make a big difference:

 

1. Deepen Research on Macroeconomic and Financial Impacts of Climate Change

In a climate change debate that has become heavily politicized, the Fund’s technical and nonpartisan voice is uniquely valuable. Few questions are as important as understanding the possible effects of a changing climate on the world’s economies, especially the most vulnerable ones.

The Fund has recently started to make important contributions in this area. In a paper published last year, the IMF started to look into the implications of climate change on so-called “small states”. And last week, the Fund devoted for the first time a whole chapter of its flagship World Economic Outlook to the impacts of weather shocks on economic activity.

Building on these foundations, the Fund should focus its research capabilities on a key question, namely whether climate change is having have a “level effect” or a “growth effect” on per capita income. If the former, then climate change will only destroy a given amount of income over time (think of damaged bridges and buildings) but not affect the capacity of the economy itself to grow. If the latter, then climate change is also harming the drivers of growth themselves, such as the productivity and availability of workers, the productivity of agriculture, and the flow of investment. The economy’s growth rate will slow as a result, and losses will compound year after year, leaving an economy significantly worse off than if only level effects applied.

Getting better answers to this question is essential for policymakers making decisions about how much to spend today to avoid damage tomorrow.

 

2. Formally Incorporate Climate Change Into Policy Dialogue

One of the Fund’s core functions is macroeconomic surveillance. This function brings Fund staff into regular policy dialogues (called Article IV consultations) with financial authorities in virtually every country in the world.

Financial authorities have a key role to play in preparing for climate change, as they are charged with budget planning and managing fiscal and financial risks. The Fund should bring climate risk into the dialogue as a formal part of its consultations, not just with small states, but with a much larger set of vulnerable countries as well, including systemically-significant ones.

This year, in collaboration with the World Bank, the Fund launched the first Climate Change Policy Assessment (CCPA) during the Article IV consultations for the Seychelles. The assessment focused on policy options to reduce vulnerability to climate change; the Seychelle authorities found it to be very useful. More CCPAs are planned – a small handful per year – but this is simply not fast enough given the urgency and gravity of the challenge.

The Fund should formalize CCPAs as a routine part of Article IV consultations for a broad swathe of vulnerable, low-income countries. This will require investing in staff capacity and training, including in the Fund’s Monetary and Capital Markets Department, which can help countries identify how climate risks and opportunities could affect their financial systems. Maximizing synergies with the World Bank on the CCPAs will also be necessary.

 

3. Treat Expenditures on Climate Resilience as Investments

Countries facing a balance-of-payments crisis often draw on IMF resources and enter into a program relationship with the IMF. One of the trickiest elements when negotiating such a program is how to treat different categories of spending and where to cut to restore fiscal balance. How should the Fund treat expenditures designed to provide financial protection against extreme weather events? These include, for example, deposits into a national reserve fund, premium payments on sovereign insurance against natural disasters, or the costs of issuing catastrophe (“cat”) bonds.

Protecting some of these expenditures from program-mandated cuts is fully appropriate, as they are designed to provide a measure of fiscal protection to the government in the aftermath of an extreme weather event. For instance, the Fund might treat cat bond issuance costs and insurance premiums as investments with potential upside, rather than as expenditures, thereby exempting them from cuts.

Managing Director Lagarde has positioned the IMF as an important and credible voice in the debate about climate change. Now it’s time for the Fund to expand and institutionalize this new role, helping poor and vulnerable countries understand and confront the macroeconomic and financial risks of climate change.

“This article was originally posted at World Resources Institute’s Insights blog”

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Alternative Financing Strategies to Boost Small Businesses in Africahttp://www.ipsnews.net/2017/10/alternative-financing-strategies-boost-small-businesses-africa/?utm_source=rss&utm_medium=rss&utm_campaign=alternative-financing-strategies-boost-small-businesses-africa http://www.ipsnews.net/2017/10/alternative-financing-strategies-boost-small-businesses-africa/#respond Thu, 05 Oct 2017 12:38:20 +0000 Franck Kuwonu http://www.ipsnews.net/?p=152365 A few years ago, more than half a century after the concept was first proposed, the government of Côte d’Ivoire completed construction of the Henri Konan Bédié Bridge, a span over the Ébrié Lagoon linking the north and south of Abidjan, the country’s main city. The project became a reality after the government received development […]

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Chef and owner of a restaurant and catering company in Liberia. Credit: UN Photo/C. Herwig

By Franck Kuwonu, Africa Renewal*
UNITED NATIONS, Oct 5 2017 (IPS)

A few years ago, more than half a century after the concept was first proposed, the government of Côte d’Ivoire completed construction of the Henri Konan Bédié Bridge, a span over the Ébrié Lagoon linking the north and south of Abidjan, the country’s main city. The project became a reality after the government received development bank and private capital financing.

Similarly, the Dakar-Diamniado Highway in Senegal, although a public structure, was built and is being operated by private companies. Increasing difficulties in obtaining traditional financing, including bank loans for public infrastructure such as roads, railways and dams are forcing African countries to explore alternative financing approaches.

Having the private sector build and operate infrastructure, recoup its investments and later transfer the infrastructure to governments is one way of compensating for the shortfall in official development assistance and banks’ reluctance to provide loans.

Economic backbone

Aid to the least developed countries (LDCs), most of which are in Africa, fell by 3.9% in 2016, according to the Organisation for Economic Co-operation and Development (OECD), which promotes policies that improve economic and social well-being of rich countries.

At the moment, governments are coming up with innovative financing strategies, while big corporations are relying on investments or bank loans to grow and expand their businesses. However, Africa’s small and medium-size (SMEs) enterprises, still struggle for financing.

Governments that seek financing from private partnerships or international financing institutions such as the African Development Bank (AfDB), the International Finance Corporation (IFC), the World Bank and others often realise that the funding available cannot meet the financial needs of the SMEs.

“In Ghana, SMEs can safely be regarded as the backbone of the economy, employing thousands of people,” Ghana’s minister of finance, Ken Ofori-Atta, said at a gathering of Ghanaian entrepreneurs in June.

SMEs represent 92% of all local businesses in Ghana, providing up to 85% of manufacturing jobs in the country and contributing about 70% to the country’s GDP. In Nigeria, 37 million SMEs employ about 60 million people and account for about 48% of the country’s GDP.

South Africa (the most advanced economy south of the Sahara) is home to more than 2.2 million SMEs, about 1.5 million of them in the informal sector. About 43% of South Africa’s SMEs operate in trade and accommodations, according to South Africa’s Small Enterprise Development Agency (SEDA), which, among other functions, implements the government’s small business strategy.

A 2016 SEDA report says that SMEs face challenges in accessing finance and markets. Yet eight out of 10 jobs and nine out of 10 of all businesses in sub-Saharan Africa are related to small business, according to UN figures.

Potential

SMEs, especially those in the informal sector, have a hard time accessing bank loans. A majority of African SMEs rely on personal savings or start-up capital from friends and family.

“Even when a bank is willing to lend them some money, the collateral and guarantee they require and sometimes the down payment is just too much for a small company like us,” says Alex Treku, the communications and projects manager at the Togo-based LOGOU Concept Togo (LCT).

LCT manufactures a type of electric food mixer (the Foufou Mix) that is used in place of the traditional mortar and pestle and saves women the energy used in pounding yam for fufu, a West African staple dish.

“The Foufou Mix allows for quick and hygienic yam preparation in approximately eight minutes,” the African Innovation Foundation (AIF) said when it named LCT the runner-up for the Innovation Prize for Africa in 2014.

AIF added that “pounding of yam has traditionally been done by women; this innovation provides a solution not currently being contemplated by international manufacturers. It also opens up possibilities for a whole new industry for manufacturing of such appliances on the continent.”

One-third of Nigerians reportedly eat fufu, making the country of 170 million people an attractive market for the gadget. Yet LCT is able to manufacture only about a hundred mixers a month, according to Mr. Treku. The reason? “We don’t have access to bank credit or funds to grow our business,” he says. LTC currently employs 19 people.

Operational capacities and access to markets are other challenges African MSMEs face, but access to financing is the most critical.

Partnership and innovation

On the occasion of the first-ever MSME Day marked globally on 27 June, the AfDB called for an increase in new and affordable financing schemes. Both the AfDB and the IFC would like SMEs to have increased access to financing.

Last year the AfDB reported helping 156,000 SME business owners through financial intermediaries such as commercial banks, development investment and guarantee funds. That’s a good start, but hardly enough, experts say.

By providing coverage for risks associated with lending to SMEs, an intermediary such as the African Guarantee Fund (AGF) can provide credit guarantee facilities to financial institutions that give loans to enterprises they would normally be reluctant to lend to.

Last June, the AGF announced that through a partnership with the African, Caribbean and Pacific Group of States, the European Union and the UN Development Programme, some 5,000 SMEs in “development minerals” in five countries will have more affordable financing because of AGF’s $12 million credit guarantee.

Two years ago, the IFC and Ecobank, a pan-African commercial and investment banking group, launched a $110 million risk-sharing facility that allows Ecobank to lend money to SMEs operating in fragile and conflict-afflicted states in West and Central Africa. In addition to current efforts by traditional banks to lend to SMEs, experts have urged SMEs in Africa to explore innovative financing, such as cooperative financing and diaspora funds.

The World Bank is said to be exploring other ideas like crowdfunding—an innovative way of financing a project by raising funds from a very large number of people—peer-to-peer lending, social impact bonds and development impact bonds.

But the AfDB wants credit providers to increase lending by at least $135 billion to meet demand by African SMEs. As the overall financing gap in developing countries is currently between $2.1 and $2.6 trillion, new strategies are required to finance the 17 Sustainable Development Goals.

According to the World Economic Forum, “blended finance” could plug this hole. Should these funds become available, the majority of SMEs still operating in the informal sector will have to “take giant steps towards formalisation in order to increase their potential for accessing formal credits,” according to a 17 March study, Financing the Growth of SMEs in Africa: What Are the Constraints to SME Financing within ECOWAS? published in the Review of Development Finance.

The authors of the study maintain that policy reforms are as necessary as available financing. They also suggest requiring companies to provide credit information to boost creditors’ confidence and to make sure that government-sponsored credit schemes are managed efficiently and transparently.

*Africa Renewal is published by the UN’s Department of Public Information

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Making an Economic Case for Climate Actionhttp://www.ipsnews.net/2017/10/making-economic-case-climate-action/?utm_source=rss&utm_medium=rss&utm_campaign=making-economic-case-climate-action http://www.ipsnews.net/2017/10/making-economic-case-climate-action/#comments Mon, 02 Oct 2017 15:16:58 +0000 Tharanga Yakupitiyage http://www.ipsnews.net/?p=152311 Having faced a year of record temperatures and devastating hurricanes, the United States stands more to lose if it doesn’t take steps to reduce the risk and impact of climate change, according to a new report. Launched by the Universal Ecological Fund, it details the costs of the U.S.’ climate inaction to the national economy […]

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Secretary-General Ban Ki-moon (left) receives the legal instruments for joining the Paris Agreement from Barack Obama, President of the United States, at a special ceremony held in Hangzhou, China. Credit: UN Photo/Eskinder Debebe

By Tharanga Yakupitiyage
UNITED NATIONS, Oct 2 2017 (IPS)

Having faced a year of record temperatures and devastating hurricanes, the United States stands more to lose if it doesn’t take steps to reduce the risk and impact of climate change, according to a new report.

Launched by the Universal Ecological Fund, it details the costs of the U.S.’ climate inaction to the national economy and public health and urges for policies to move the country towards a sustainable future.

“It’s not about ideology, it’s about good business sense,” the former president of the American Association for the Advancement of Science (AAAS) and the report’s co-author James McCarthy told IPS.

“Many people say that they will not have the discussion because they are not convinced of the science—well then, let’s just look at the economics, let’s look at what it is costing to not have that discussion,” he continued.

A Wake of Destruction

The U.S. is still reeling from an unprecedented month of three hurricanes and 76 wildfires, devastating landscapes from Puerto Rico to Washington.

Hurricane Maria alone left Puerto Rican residents without food, water, or electricity. Approximately 44 percent of the population lacks clean drinking water and just 11 out of 69 hospitals have fuel or power, pushing the island to the brink of a humanitarian crisis.

“This year was nothing like we’ve seen,” said McCarthy.

Though aid delivery is underway, the economic losses from not only Hurricane Maria, but also Hurricanes Harvey and Irma along with the wildfires that swept through the Western coast, are estimated to be the costliest weather events in U.S. history.

The report estimates a price-tag of nearly 300 billion dollars in damage, representing 70 percent of the costs of all 92 weather events in the last decade.

Since hurricane season is yet to end, more expensive and damaging storms may still be in the forecast.

According to the National Oceanic and Atmospheric Administration National Centers for Environmental Information, the number of extreme weather events that incurred at least one billion dollars in economic losses and damages have increased in the last decade by almost two and a half times.

Such losses will only rise as human-induced climate change continues, contributing to dry conditions favorable for more wildfires and warm oceans which lead to more intense storms and higher sea levels.

McCarthy, who is also an Oceanography Professor at Harvard University, told IPS that investments beyond creating hurricane-proof infrastructure are needed to counter such damage.

“Infrastructure is important, but everything we can do to reduce the intensity of these events, by slowing the rate of global warming, will make future infrastructure more likely to be effective,” he said.

An Unhealthy Dependence

Among the major drivers of climate change is the burning of fossil fuels which the U.S. continues to rely on to produce energy.

Coal, oil and natural gas—all of which are fossil fuels— currently account for over 80 percent of the primary energy generated and used in the North American nation. When such fossil fuels are burned, large amounts of carbon dioxide (CO2) are released to the atmosphere, contributing to rapid changes in the climate.

Though emissions regulations have reduced air pollution health damages by 35 percent, or nearly 67 billion dollars per year, burning fossil fuels still produces health costs that average 240 billion dollars every year.

If fossil fuels continue to be used, both economic losses and health costs are estimated to reach at least 360 billion dollars annually, or 55 percent of U.S.’ growth, over the next decade.

And the government won’t be footing the expensive bill, the report notes.

“Time after time, we are going to see the public bearing the costs…it becomes a personal burden for them,” McCarthy told IPS.

He highlighted the importance of the U.S. taking steps to transition from fossil fuels to renewable energy.

“To move people, literally and figuratively, into the future to be more healthy and more sustainable and a less expensive way of doing business just makes sense,” McCarthy said.

Not only will it provide sustainable clean electricity and reduce the rate of global warming, renewable energy also can add to the economy by producing jobs.

Clean energy already employs almost 2 million workers, and doubling solar and wind generation can create another 500,000 jobs.

In order to successfully transition to a low-carbon economy, investments are essential, some of which can potentially come from taxing carbon emissions, the report states. A carbon tax aims to reduce emissions and promote a more efficient use of energy, including the transition to electric cars.

According to the Intergovernmental Panel on Climate Change (IPCC), a tax on carbon emissions can potentially produce revenues of up to 200 billion dollars in the U.S. within the next decade.

The carbon tax has been a controversial policy, with some expressing concern that companies will simply shift the cost to the consumer by way of increasing the prices of gasoline and electricity.

However, McCarthy noted that the public already currently bears the burden in terms of damages from extreme weather events and unhealthy air expenses.

A Government Denial

Despite the evidence for climate change and the role of fossil fuels in driving such change, U.S. President Donald Trump has begun to unravel many essential environmental protections.

Not only did his administration announce the U.S. withdrawal from the landmark Paris Agreement, but it is currently working to dismantle the Clean Power Plan (CPP) which aims to reduce carbon pollution from power plants across the country.

The move is tied to President Trump’s repeated calls to renew investments in the coal industry, claiming that it will bring back jobs.

McCarthy said that these actions are not “borne out by the facts.”

“The notion that you will be able to return the U.S. to a coal economy—there is no evidence for that. And secondly, if you are going to create jobs, the sensible way to create them is in a forward-looking area such as renewable energy rather than the highly risky and repeated exposure of coal,” he told IPS.

In spite of a national strategy that may exacerbate climate change, McCarthy said that cities and states are taking the lead and will continue to move in the right direction regardless of bipartisan politics.

Iowa is the leading U.S. state in wind power with over 35 percent of its electricity generated from wind energy.

In Oklahoma, where U.S. Environmental Protection Agency (EPA) Administrator Scott Pruitt hails from, 25 percent of electricity comes from wind energy.

“When you look at a state like Iowa and see [their] electricity is coming from wind energy, it doesn’t say anything about the politics of Iowa—it says something about people being sensible about how they spend their money and what they invest in to get a particular product,” McCarthy said.

The U.S.’ reluctance to reduce greenhouse gas emissions not only impacts Americans, but also people around the world. Since the process of withdrawing from the Paris Agreement will take time, McCarthy expressed hope that the U.S. will change its course.

“We hope over that period of time that [President Trump] will see that this partnership has enormous value and not only what the U.S. is doing that affects the rest of the world but vice versa,” he said.

“We should find reason to join efforts with the community of nations that have recognized, much like what we try to say in this report, that if we don’t do something, these are going to be very expensive and, in some cases, life-threatening consequences of this sort of neglect,” McCarthy concluded.

The EPA is expected to release a revised version of the CPP in the coming weeks, and it is expected to be significantly weaker than the original.

Governments will be convening in Bonn, Germany for the UN’s Annual Climate Change Conference (COP23) in November to advance the implementation of the Paris Agreement. The focus will be on how to implement issues including emissions reductions, provision of finance, and technology.

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Small Farmers in Brazil’s Amazon Region Seek Sustainabilityhttp://www.ipsnews.net/2017/09/small-farmers-brazils-amazon-region-seek-sustainability/?utm_source=rss&utm_medium=rss&utm_campaign=small-farmers-brazils-amazon-region-seek-sustainability http://www.ipsnews.net/2017/09/small-farmers-brazils-amazon-region-seek-sustainability/#respond Tue, 19 Sep 2017 23:00:28 +0000 Mario Osava http://www.ipsnews.net/?p=152139 The deforestation caused by the expansion of livestock farming and soy monoculture appears unstoppable in the Amazon rainforest in the west-central Brazilian state of Mato Grosso. But small-scale farmers are trying to reverse that trend. Alison Oliveira is a product of the invasion by a wave of farmers from the south, lured by vast, cheap […]

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After living in the city for 10 years, Oliveira and Marcely Federicci da Silva, a young married couple, decided to return to work on their farm with a sustainable agriculture project, nearby Alta Floresta, in the so-called Portal of the Amazon, in the west-central Brazilian state of Mato Grosso. Credit: Mario Osava/IPS

After living in the city for 10 years, Oliveira and Marcely Federicci da Silva, a young married couple, decided to return to work on their farm with a sustainable agriculture project, nearby Alta Floresta, in the so-called Portal of the Amazon, in the west-central Brazilian state of Mato Grosso. Credit: Mario Osava/IPS

By Mario Osava
ALTA FLORESTA, Brazil, Sep 19 2017 (IPS)

The deforestation caused by the expansion of livestock farming and soy monoculture appears unstoppable in the Amazon rainforest in the west-central Brazilian state of Mato Grosso. But small-scale farmers are trying to reverse that trend.

Alison Oliveira is a product of the invasion by a wave of farmers from the south, lured by vast, cheap land in the Amazon region when the 1964-1985 military dictatorship aggressively promoted the occupation of the rainforest.

“I was born here in 1984, but my grandfather came from Paraná (a southern state) and bought about 16 hectares here, which are currently divided between three families: my father’s, my brother’s and mine,” Oliveira told IPS while milking his cows in a barn that is small but mechanised.

“Milk is our main source of income; today we have 14 cows, 10 of which are giving milk,” he explained. “I also make cheese the way my grandfather taught me, and I sell it to hotels and restaurants, for twice the price of the milk.”

But what distinguishes his farm, 17 km from Alta Floresta, a city of about 50,000 people in northern Mato Grosso, is its mode of production, which involves an agroforestry system that combines crops and trees, irrigated pastureland, an organic garden and free-range egg-laying chickens.

Because of its sustainable agriculture system, the farm is used as a model in an Inter-American Development Bank (IDB) programme, and is visited by students and other interested people.

“We want more: a biodigester, solar power and rural tourism, when we have the money to make the investments,” said Oliveira’s wife, 34-year-old Marcely Federicci da Silva.

The couple discovered their vocation for sustainable farming after living for 10 years in Sinop, which with its 135,000 people is the most populated city in northern Mato Grosso, and which owes its prosperity to soy crops for export.

“Raising two small children in the city is harder,” she said, also attributing their return to the countryside to Olhos de Agua, a project promoted by the municipal government of Alta Floresta to reforest and restore the headwaters of rivers on small rural properties.

 Alison Oliveira, surrounded by the organic crops that he and his wife grow on their small-scale farm outside the city of Alta Floresta, on the southern edge of Brazil’s Amazon region. Sustainable family farming, supported by several organisations, acts as a barrier against deforestation and soy monoculture. Credit: Mario Osava/IPS


Alison Oliveira, surrounded by the organic crops that he and his wife grow on their small-scale farm outside the city of Alta Floresta, on the southern edge of Brazil’s Amazon region. Sustainable family farming, supported by several organisations, acts as a barrier against deforestation and soy monoculture. Credit: Mario Osava/IPS

The financial viability of the farm owes a great deal to the support received from the non-governmental Ouro Verde Institute (IOV), which in addition to providing technical assistance, created a mechanism for on-line sales, creating links between farmers and consumers, Oliveira pointed out.

The Solidarity-Based Marketing System (Siscos), launched in 2008, is“an on-line market that allows direct interaction between 30 farmers and over 500 registered customers, zootechnician Cirio Custodio da Silva, marketing consultant for the IOV, explained to IPS.

Customers place weekly orders, the system chooses suppliers and picks up the products to be delivered to the buyers in a shop on Wednesdays.

Besides, Siscos supports sales in street markets, and the school feeding programme, which by law in Brazil buys at least 30 per cent of its food products from family farmers, and the women textile workers’ network, who make handcrafted textiles.

The IOV, founded in 1999 in Alta Floresta to drive social participation in sustainable development, especially in agriculture, has promoted since 2010 a network of native seeds, to encourage reforestation and crop diversification.

Alison Oliveira milks one of his cows, which feed on a pasture with nocturnal irrigation, which cuts power costs by 60 per cent. Together with an organic garden and an agroforestry system, it makes their farm an example of sustainability which attracts many visitors. Credit: Mario Osava/IPS

Alison Oliveira milks one of his cows, which feed on a pasture with nocturnal irrigation, which cuts power costs by 60 per cent. Together with an organic garden and an agroforestry system, it makes their farm an example of sustainability which attracts many visitors. Credit: Mario Osava/IPS

Seed collectors organised in a 115-member cooperative, with 12 seed banks, 200 selected tree species, and mainly oilseeds for agriculture, represent an activity that is also a source of income, said agronomist Anderson Lopes, head of that area at the IOV.

Initially, the interest of the farmers was limited to having access to agricultural seeds, but later it also extended to
seeds of native tree species, for the restoration of forests, springs and headwaters, and degraded land, he said.

Silva and Lopes have similar backgrounds. Their farming families, from the south, ventured to the so-called Portal of the Amazon, a region that covers 16 municipalities in northern Mato Grosso, where the rainforest begins.

It is a territory with a rural economy, where one-third of the 258,000 inhabitants still live in the countryside, according to the 2010 national census.

It is a transition zone between the area with the largest soybean and maize production in Brazil, in north-central Mato Grosso, and the Amazon region with its dense, sparsely populated jungle.

This is reflected in 14 indigenous territories established in the area and in the number of family farmers – over 20,000 – in contrast with the prevalence of large soybean plantations that are advancing from the south.

The road that connects Sinop – a kind of capital of the empire of soy – with Alta Floresta, 320 km to the north, runs through land that gradually becomes less flat and favourable for mechanised monoculture, with more and more forests and fewer vast agricultural fields.

Pedro Kingfuku, owner of four supermarkets, stands among fruit and vegetables that come from Paraná, 2,000 km south of Paranaita, a municipality with a population of 11,000 people. Local family farming has a great capacity for expansion to cater to the large market in the north of the state of Mato Grosso, in west-central Brazil. Credit: Mario Osava/IPS

Pedro Kinfuku, owner of four supermarkets, stands among fruit and vegetables that come from Paraná, 2,000 km south of Paranaita, a municipality with a population of 11,000 people. Local family farming has a great capacity for expansion to cater to the large market in the north of the state of Mato Grosso, in west-central Brazil. Credit: Mario Osava/IPS

That tendency is accentuated towards Paranaita, a municipality with a population of 11,000 people, 54 km west of Alta Floresta, which announces the last frontier of livestock farming and soy monoculture, at least through that south-north highway across Mato Grosso, the national leader in the production of soy.

Movements in favour of sustainability, such as the one supported by IOV, and the important presence of family farmers, are joining forces to help curb the invasion of the Amazon region by soy monoculture which dominated north-central Mato Grosso, creating a post-harvest desert-like landscape.

Another non-governmental organisation, the Center of Life Institute (ICV), also active in Alta Floresta and surrounding areas, has a Sustainable Livestock Initiative, with reforestation and restoration of degraded pastures.

The “colonisation” process of the Portal of the Amazon was similar to that of the rest of Mato Grosso. People from the south came with dreams of working in agriculture, after previous waves of loggers and “garimpeiros” – informal miners of gold and precious stones – activities that still continue but have become less prevalent.

“Many of those who obtained land harvested the timber and then returned south,” because planting crops was torture, without roads, marketing or financial support, recalled Daniel Schlindewein, another migrant from Paraná who settled in Sinop in 1997.

Agriculture failed with coffee, rice and other traditional crops that were initially tried, until soy monoculture spread among the small farms, rented from the large producers.

But family farming has survived in the Portal of the Amazon.

“If the town of São Pedro didn’t exist, I would have to close the store in Paranaíta,“ Pedro Kinfuku, the owner of a chain of four supermarkets in the area, told IPS. He opened the stores in 2013 betting that the construction of the Teles Pires Hydropower Plant nearby would generate 5,000 new customers.

“But not even a tenth of what was expected came,“ he lamented.

The 785 farming families who settled in São Pedro, near Paranaíta, saved the local supermarket because they mainly buy there, said Kingfuku, the son of Japanese immigrants who also came from Paraná.

“Among the settlers, the ones who earn the most are the dairy farmers, like my father who has 16 hectares of land,” said Mauricio Dionisio, a young man who works in the supermarket.

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Communities Can be Role Models for Sustainable Developmenthttp://www.ipsnews.net/2017/09/communities-can-role-models-sustainable-development/?utm_source=rss&utm_medium=rss&utm_campaign=communities-can-role-models-sustainable-development http://www.ipsnews.net/2017/09/communities-can-role-models-sustainable-development/#respond Fri, 15 Sep 2017 14:29:46 +0000 Nik Sekhran http://www.ipsnews.net/?p=152084 Nik Sekhran is Director of Sustainable Development, UN Development Programme (UNDP)

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Mikoko Pamoja is a community-based initiative that has pioneered carbon credit payments for mangrove restoration. Credit: Mikoko Pamoja

By Nik Sekhran
UNITED NATIONS, Sep 15 2017 (IPS)

The United Nations, governments, civil society, business, thought leaders and media will gather in New York on September 17 to celebrate the winners of the Equator Prize 2017. The 15 prize winning communities successfully advance innovative solutions for poverty, environment, and climate challenges.

The Equator Prize 2017 winners will join a prestigious group of 208 previous Equator Prize winners that have been recognized by the UNDP Equator Initiative partnership since its inception in 2002. Together, these prize winners tell a compelling story about the power of local action. This year, among the winners is the Federación de Tribus Indígenas Pech de Honduras, a cooperative that sells an essential ingredient in the international fragrance and flavor industry.

Nik Sekhran

Across the Atlantic, the Mali Elephant Project works in a region torn asunder by violent extremism to protect the endangered African elephant and advance local development priorities. Moving further east, in Indonesia, Raja Ampat Homestay Association has created an innovative, community-run web platform for ecotourism, garnering over 600 new jobs for the community and catalyzing the creation of 84 community businesses, all while conserving fragile marine ecosystems.

The stories of these groups are not simply colorful reminders that people can live in harmony with nature. They illustrate how community action is essential to achieve sustainable development.

In 2015, the world agreed to an ambitious set of Sustainable Development Goals (SDGs). From ending extreme poverty and hunger, to ensuring resilient communities, to ensuring water security, to sustaining life on land and life below water, this agenda defines the world we want in 2030. Achieving these goals will require a significant departure from business as usual.

Take the environment as an example – on our current trajectory, we will lose 68% of biodiversity by 2020. We are losing a rhino every eight hours, and an elephant every 15 minutes. Losing biodiversity also hurts the economy – we have lost US$20 trillion dollars in economic value since 1970 due to the degradation of ecosystems and the disappearance of biodiversity.

Further challenges arise from the trends we will face over the next 13 years, as we look towards 2030. With 1.3 billion more people on the planet, demand for food will increase by 35%, for water by 40%, and for energy by 50%.

We are approaching, and may have already surpassed, the planetary boundaries that define the thresholds of sustainability. We must learn to stay within these limits, to address the coming challenges, and to not only stem the loss of biodiversity but to transform nature to become an engine of sustainable development.

The village of Bang La sustainably manages a 192-hectare forest that has shielded the community from devastating disasters and improved livelihoods through increased fish catch. Credit: Community Mangrove Forest Conservation of Bang La


We at UNDP believe that no one actor – not governments, not companies, not cities and not NGOs – can achieve the SDGs alone. We also believe that local action will be an essential component to achieve the goals. Local communities and indigenous peoples face the very real consequences of biodiversity loss and climate change daily – consequences which can mean life or death for their families, communities, and ways of life.

The Equator Prize teaches us that these same communities excel in developing innovative tactics that deliver high-impact, scalable solutions to address these challenges and to achieve the Sustainable Development Goals.

Our awardees demonstrate that successful approaches combine multiple sustainable development benefits. Each Equator Prize 2017 winner’s actions address at least five SDGs in a holistic way. In Kenya, for example, Mikoko Pamoja is the first community-based initiative of its kind to sell carbon credits generated through the protection of mangrove forests. The community reinvests income from these credits into clean water and education, providing a virtuous cycle of development dividends that deliver on SDG1 (no poverty), 4 (quality education) and 6 (clean water and sanitation), in addition to SDG13 (climate action), SDG14 (life under water), and SDG15 (life on land).

In Indonesia, Raja Ampat Homestay Association’s web portal for community homestays provides a scalable avenue for local development and ocean conservation. Credit: Raja Ampat Homestay Association


Equator Prize winning communities also show that investing in nature is an effective and efficient pathway to sustainable development. Because its mangroves were intact, the village of Bang La in Thailand was largely spared the devastating force of the 2004 Indian Ocean tsunami. The community formed an association – the Mangrove Forest Conservation Group of Bang La Community – to legally protect their mangroves for future generations, at a fraction of what the cost of rebuilding a devastated community would be.

I look forward to celebrating and honoring these environmental heroes. Our venue for the Equator Prize Award Ceremony gala is a testimony to the power of local action – The Town Hall theatre in New York City was built in the early 1920s as a meeting place for a vibrant group of suffragists. The success of their struggle shows us how the commitment and perseverance of a small group of individuals can change the world for the better. Just like these suffragists, the Equator Prize 2017 winners provide powerful stories of hope amidst chaos, showing us that local action can create powerful impacts for people, planet, and prosperity.

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At Key Finance Meet, Mongolia Seeks Path to a Greener Economyhttp://www.ipsnews.net/2017/09/key-finance-meet-mongolia-seeks-path-greener-economy/?utm_source=rss&utm_medium=rss&utm_campaign=key-finance-meet-mongolia-seeks-path-greener-economy http://www.ipsnews.net/2017/09/key-finance-meet-mongolia-seeks-path-greener-economy/#respond Thu, 14 Sep 2017 18:03:23 +0000 Stella Paul http://www.ipsnews.net/?p=152079 Rapid growth of a coal-fired economy often leads to environmental degradation, and Mongolia is a case in point. Alongside an impressive 5.3 percent GDP growth rate, the country has also been witnessing its worst levels of air pollution and is now trying hard to shift to a greener economic model, said experts at the Mongolian […]

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Frank Rijsberman.

By Stella Paul
ULAANBAATAR, Sep 14 2017 (IPS)

Rapid growth of a coal-fired economy often leads to environmental degradation, and Mongolia is a case in point.

Alongside an impressive 5.3 percent GDP growth rate, the country has also been witnessing its worst levels of air pollution and is now trying hard to shift to a greener economic model, said experts at the Mongolian Sustainable Finance Forum (MSFF) 2017 held Sep. 14 in the capital of Ulaanbaatar."A key achievement of the forum this year was setting up of a new credit system called the Mongolia Green Credit Fund." --Frank Rijsberman, Director General of GGGI

Speaking exclusively to IPS on the sidelines of the event, Frank Rijsberman, Director General of the Seoul-based Global Green Growth Institute (GGGI), which is a key partner of the forum, said the forum had just helped establish a Mongolia Green Climate Fund which would see a flow of funds for projects that would bring in more green economic growth through cleaner energy, cleaner transport and projects to make Mongolia’s cities more sustainable.

“In Mongolia, the economy has grown very rapidly. That has led to some serious environmental issues. For example, Mongolia has used a lot of coal-based energy. As a result, it now has the worst level of air pollution in the region. If (the pollution in) in New Delhi is bad and worse in Beijing, then it’s the worst in Ulaanbaatar. In fact the country had to declare a national emergency over the brown haze,” said Rijsberman.

The MSSF, which is now in its 5th year, has been working to address this key challenge of poor air quality, besides other environmental issues such as renewable energy and sustainable cities. This year, the forum focused on roping in more partners and increasing the involvement and contribution of current ones in funding the green projects within Mongolia.

There were over 350 participants including national policy makers, business leaders, private sector investors, bankers, government officials, representatives of civic groups and international organizations. They came from a wide array of fields, including green development, sustainable finance, and innovative technologies.

“A key achievement of the forum this year was setting up of a new credit system called the Mongolia Green Credit Fund,” noted Rijsberman.

Launched later this year, the new credit fund is expected to mobilize between 8-10 million dollars to finance energy efficient projects in Ulaanbaatar’s public buildings.

Highlighting his own organization’s involvement in the MSFF and the new credit system, Rijsberman said that GGGI was trying to help Mongolia develop “bankable projects” for the funders.

Mongolia is one of the largest coal-producing countries in the world. According to statistics shared by the Mongolia‘s Ministry of Energy, over 80 percent of the country’s energy is coal-fired. Statistics by other research organisations such as Index Mundi show the air pollution level, measured at 2.5 pm (particulate matter), is dangerously high, while the country’s annual carbon emissions are 14 metric tonnes.

However, the government has committed to achieve the 2030 Sustainable Development Agenda and the Paris Agreement by reducing its greenhouse gas emissions by 14 percent by 2030. Now, the country needs about seven billion dollars to finance its Nationally Determined Contributions (NDCs) focusing on energy efficiency, renewable energy, buildings, waste and transportation. The banking sector – the main participant and organizer of the MSFF – has agreed to accelerate sustainable finance initiatives and a green economy transition.

“Apart from that (seven billion dollars), businesses and small and medium-sized enterprises (SMEs) need an additional investment of 1.5 trillion dollars in the coming five years mostly for construction and manufacturing sector projects. Additionally, tackling critical sustainability issues such as air and soil pollution requires financing equal to 4.3 billion dollars. To fill in this investment gap, all partners – public, private and international organizations – need to act together,” said Orkhon O., President of the Mongolian Bankers Association.

Rijsberman said GGGI has helped develop MGCF’s Business Plan and conduct market assessment to identify the most crucial areas that require investment to achieve the NDCs. These areas are 1) Cleaner Alternative Heating Solutions for the Ger Segment, 2) Energy Efficiency Products for Large Energy Consumers, and 3) Affordable Green Housing and Mortgage Schemes.

There will be more such assessments in the future, with a special focus on tackling air pollution in Ulaanbaatar .

Asked how the Mongolian Sustainable Finance Forum is different from other Green Growth forums as the Global Green Growth Forum (3GF ) of Denmark or the Indonesia Sustainable Finance Forum, Rijsberman said that the forum in Mongolia was organized mainly by a group of banks including the Bank of Mongolia, Credit Bank, Trade & Development Bank and several others. So, it is a forum where investment is a high priority besides fostering partnerships.

“We are especially focusing on energy and sustainable cities and working closely with city and national government partners to improve the regulatory and institutional frameworks needed to launch a green, inclusive Public-Private-Partnership investment program,” he explained.

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Much more climate finance now!http://www.ipsnews.net/2017/09/much-climate-finance-now/?utm_source=rss&utm_medium=rss&utm_campaign=much-climate-finance-now http://www.ipsnews.net/2017/09/much-climate-finance-now/#comments Tue, 12 Sep 2017 05:57:47 +0000 Anis Chowdhury and Jomo Kwame Sundaram http://www.ipsnews.net/?p=152026 Anis Chowdhury, a former professor of economics at the University of Western Sydney, held senior United Nations positions during 2008–2015 in New York and Bangkok.
Jomo Kwame Sundaram, a former economics professor, was United Nations Assistant Secretary-General for Economic Development, and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought in 2007.

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A seawall in Dominica. A recent report has called for specific measures to protect small islands from sea level rise. Credit: Desmond Brown/IPS

By Anis Chowdhury and Jomo Kwame Sundaram
SYDNEY and KUALA LUMPUR, Sep 12 2017 (IPS)

Funding developing countries’ climate change mitigation and adaption efforts was never going to be easy. But it has become more uncertain with President Trump’s decision to leave the Paris Accord. As a candidate, he threatened not to fulfil the modest US pledge of US$3 billion towards the 2020 target of US$100 billion yearly for the Green Climate Fund (GCF).

The GCF was formally established in December 2011 “to make a significant and ambitious contribution to the global efforts towards attaining the goals set by the international community to combat climate change”. In the 2009 Copenhagen Accord, developed economies had promised to mobilize US$100 billion yearly for climate finance by 2020.

However, only a small fraction has been pledged, let alone disbursed so far. As of July 2017, only US$10.1 billion has come from 43 governments, including 9 developing countries, mostly for start-up costs. Before Trump was elected, the US had contributed US$1 billion. Now that the US has announced its withdrawal from the 2015 climate treaty, the remaining US$2 billion will not be forthcoming.

Moreover, the US$100 billion goal is vague. For example, disputes continue over whether it refers to public funds, or whether leveraged private finance will also count. The OECD projected in 2016 that pledges worldwide would add up to US$67 billion yearly by 2020. But such estimates have been inflated by counting commercial loans to buy green technology from developed countries.

Cooperation needed

Even if all the pledged finance is raised, it would still be inadequate to finance a rapid transition to renewable energy globally, forest conservation as well as atmospheric greenhouse gas sequestration. The Hamburg-based World Future Council (WFC) estimates that globally, annual investment of US$2 trillion is needed to retain a chance of keeping temperature rise below 1.5°C.

Obviously, the task is daunting, especially for developing countries more vulnerable to climate change. Therefore, in adopting the Marrakech Vision at the 2016 22nd Conference of Parties (COP22) to meet 100% domestic renewable energy production as rapidly as possible, 48 members of the Climate Vulnerable Forum advocated an “international cooperative system” for “attaining a significant increase in climate investment in […] public and private climate finance from wide ranging sources, including international, regional and domestic mobilization.”

International cooperation is necessary, considering developing countries’ limited abilities to mobilize enough finance domestically. Much foreign funds are needed to import green technology. Additionally, most renewable energy investments needed in developing countries will not be profitable enough to attract private investment, especially foreign direct investment.

Hence, two options, proposed by the UN and the WFC respectively, are worth serious consideration. The UN proposal involves using Special Drawing Rights (SDRs) of the International Monetary Fund (IMF) for a particular kind of development finance, namely climate finance. It involves floating bonds backed by SDRs, not directly spending SDRs. Thus, for example, the GCF would issue US$1 trillion in bonds, backed by US$100 billion in SDR equity.

QE for climate change mitigation
The WFC has proposed that central banks of developed countries continue ‘quantitative easing’ (QE), but not to buy existing financial assets. Instead, they should invest in ‘Green Climate Bonds’ (GCBs) issued by multilateral development banks, the GCF or some other designated climate finance institution to fund renewable energy projects in developing countries.

This should have some other potential benefits. First, it will not destabilize the financial system of emerging economies, whereas QE has fuelled speculation and asset price bubbles. Second, it is less likely to increase inflation as it will be used for productive investments. Third, for the above reasons, it should not exacerbate inequality.

Fourth, it will also help industrial countries as developing countries receiving climate finance will be importing technology and related services from developed economies. Fifth, GCBs can become near permanent assets of central banks due to their very long duration. Sixth, supporting sustainable development in climate vulnerable developing countries will ensure more balanced global development, which is also in the interest of industrialized countries themselves.

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Latin America Discusses How to Finance the Sustainable Development Agendahttp://www.ipsnews.net/2017/09/latin-america-discusses-finance-sustainable-development-agenda/?utm_source=rss&utm_medium=rss&utm_campaign=latin-america-discusses-finance-sustainable-development-agenda http://www.ipsnews.net/2017/09/latin-america-discusses-finance-sustainable-development-agenda/#respond Fri, 08 Sep 2017 21:52:37 +0000 Daniel Gutman http://www.ipsnews.net/?p=151998 Is it possible for the financial sector of Latin America and the Caribbean not only to think about earning money but also to contribute to the 2030 Agenda for Sustainable Development? The answer was sought in Buenos Aires, Argentina, at a regional roundtable on sustainable finance, the United Nations Environment Finance Initiative. “How to mobilise […]

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Canadian economist Eric Usher, director of the United Nations Environment Finance Initiative (UNEP FI), explains to financial sector executives from Latin America and the Caribbean their ideas for its institutions to promote the Sustainable Development Goals, atn a meeting in Argentina´s capital. Credit: Daniel Gutman/IPS

Canadian economist Eric Usher, director of the United Nations Environment Finance Initiative (UNEP FI), explains to financial sector executives from Latin America and the Caribbean their ideas for its institutions to promote the Sustainable Development Goals, atn a meeting in Argentina´s capital. Credit: Daniel Gutman/IPS

By Daniel Gutman
BUENOS AIRES, Sep 8 2017 (IPS)

Is it possible for the financial sector of Latin America and the Caribbean not only to think about earning money but also to contribute to the 2030 Agenda for Sustainable Development? The answer was sought in Buenos Aires, Argentina, at a regional roundtable on sustainable finance, the United Nations Environment Finance Initiative.

“How to mobilise sufficient funds is obviously one of the critical aspects of the agenda for sustainable development,” said Eric Usher, a Canadian economist with experience in the renewable energies sector and current director of the initiative, known as UNEP FI.

“Of course, profit maximisation is a tool for delivering economic development and it should be. But there’s a role for governments to play, to create the right framework and the enabling environment, to make sure that the private sector makes money doing the right things,” he told IPS, during the roundtable on Sept. 5-6, which brought together dozens of representatives of banks, investment funds and international bodies.

“I don’t think there is any discrepancy or problem with making money on sustainable development. The public and private sectors need to work together so we can deliver in a way that creates the most benefits,” said Usher.

UNEP FI is a global partnership between U.N. Environment and more than 200 financial entities – 129 banks, 58 insurance companies and 26 investment funds – from some 60 countries, created in the context of the 1992 Rio de Janeiro Earth Summit. The meeting in Buenos Aires meant a return, after 25 years, to the region where the initiative first emerged.“If the risk assessment is comprehensive, it should not be purely financial and short-term. For example, when a bank carries out an analysis before investing in a renewable energy project, it should take into account the kind of energy mix the country is moving towards.” -- María Eugenia Di Paola

The Latin America and Caribbean round table will be followed by four other regional roundtables this year: North America (in New York), Europe (Geneva), Africa and the Middle East (Johannesburg) and Asia and the Pacific (Tokyo).

Financial bodies and business chambers from many countries explained in Buenos Aires the progress they have made in recent years with regard to the introduction of questions such as environmental and social risk or the calculation of carbon footprints in the assessment prior to granting loans, as well as their own energy efficiency goals or the reduction of paper consumption.

It became clear, nonetheless, that the certainties are still outweighed by the unanswered questions regarding the financial sector’s participation in the 2030 Agenda, which the U.N. member countries have been working towards since 2016, through the 17 Sustainable Development Goals (SDG).

“We are barely at the start of the journey and this is not easy,” admitted Mario Vasconcelos, director of institutional relations of the Brazilian Federation of Banks (Febraban), which represents 123 financial institutions, 29 of which, he explained, have committed to finance productive projects to contribute to reducing carbon emissions.

“There are many business opportunities in the transition towards a low-carbon economy, which has already begun,” Vasconcelos said with enthusiasm.

Forty financial institutions in the region have signed the UNEP Statement of Commitment by Financial Institutions (FI) on Sustainable Development. UNEP FI has been working mainly towards building expertise in the sector about how to identify social and environmental risks in investment projects, so that these can be considered along with the economic risks.

This is perhaps the most difficult task, as Beatriz Ocampo, manager of Sustainability of Grupo Bancolombia, the most important private bank in Colombia, acknowledged to some extent.

“If you tell bankers they have to finance projects that contribute towards the fight against climate change, they will not understand what you are talking about. That is why it is important to establish what sustainable finance means,” she said.

In this sense, the region still has a long way ahead.

In Argentina, for example, questions related to sustainable finance are not a priority for most banks, due to the fact that there is no involvement by the state, and the adoption of these criteria is completely voluntary.

This was the conclusion of a report carried out in 2016 by UNEP FI together with CAF – the Development Bank of Latin America – on the basis of a survey which found that only 39 per cent of Argentine banks have implemented social environmental management systems.

One of the most commented topics during the meeting in Buenos Aires was the speech by Javier González Fraga, president of the Banco de la Nación Argentina, the largest public financial entity in the country.

He was the first speaker in the meeting and was critical of the financial sector while he praised environmentalists, which took many by surprise.

“The financial logic of these days does not allow us to protect the environment. We must not let economists, and especially not financial experts, express their opinion about the planet we are going to leave to our grandchildren,” he said.

González Fraga is a centre-right economist with vast experience, who presided over Argentina’s Central Bank during the presidency of Carlos Menem (1989-1999) and was appointed by the current president Mauricio Macri as head of Argentina’s only national bank.

In dialogue with IPS, González Fraga, who has postgraduate degrees from Harvard and the London School of Economics, expressed a conviction that “we must go about finance a different way, especially public banks.”

“Many years of experience have shown me that the classical or neoliberal theory will in no way solve environmental problems. The government must lead the way and have institutions such as state banks head up the process of change in approach,” he said.

González Fraga also condemned the U.S. government’s decision to pull out of the Paris Agreement on climate change.

“We see on TV what happened in Texas with Hurricane Harvey and it is clear that there is no need to explain what the future might hold, because it is already happening today. Donald Trump can say many things, but the reality in the U.S. can’t be denied, and people on the streets are starting to play an increasingly important role in the environmental issue,” he said.

For María Eugenia Di Paola, coordinator of Environment for the U.N. Development Programme (UNDP) in Argentina, financial institutions in the region should not find it so difficult to add social and environmental criteria to economic factors, in risk assessment.

“If the risk assessment is comprehensive, it should not be purely financial and short-term. For example, when a bank carries out an analysis before investing in a renewable energy project, it should take into account the kind of energy mix the country is moving towards,” she told IPS.

“This way, the financial sector will acquire a perspective more attuned to the 2030 Agenda. And the climate catastrophes are already occurring, so that the concepts of medium and long term are very relative,” Di Paola said.

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Scaling up Development Financehttp://www.ipsnews.net/2017/09/scaling-development-finance/?utm_source=rss&utm_medium=rss&utm_campaign=scaling-development-finance http://www.ipsnews.net/2017/09/scaling-development-finance/#respond Tue, 05 Sep 2017 15:21:51 +0000 Anis Chowdhury and Jomo Kwame Sundaram http://www.ipsnews.net/?p=151937 Anis Chowdhury, a former professor of economics at the University of Western Sydney, held senior United Nations positions during 2008–2015 in New York and Bangkok.

Jomo Kwame Sundaram, a former economics professor, was United Nations Assistant Secretary-General for Economic Development, and received the Wassily Leontief Prize for Advancing the Frontiers of Economic Thought in 2007.

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The United Nations and others have revived the idea of the International Monetary Fund (IMF) issuing Special Drawing Rights (SDRs) to finance development. Credit: Sriyantha Walpola/IPS

By Anis Chowdhury and Jomo Kwame Sundaram
SYDNEY and KUALA LUMPUR , Sep 5 2017 (IPS)

The Business and Sustainable Development Commission has estimated that achievement of Agenda 2030 for the Sustainable Development Goals will require US$2-3 trillion of additional investments annually compared to current world income of around US$115 trillion. This is a conservative estimate; annual investments of up to US$2 trillion yearly will be needed to have a chance of keeping temperature rise below 1.5°C.

The greatest challenge, especially for developing countries, is to mobilize needed investments which may not be profitable. The United Nations and others have revived the idea of the International Monetary Fund (IMF) issuing Special Drawing Rights (SDRs) to finance development.

IMF quotas
SDRs were created by the IMF in 1969 to supplement member countries’ official reserves (e.g., gold and US dollars). They were designed to meet long-term international liquidity needs, rather than as a short-term remedy for payments imbalances. The SDR is not a currency, but a potential claim on freely usable currencies (e.g., USD) of IMF members.

Currently, SDRs are allocated among members according to their IMF quotas. IMF quotas determine a member’s maximum financial commitment, voting power and upper limit to financing. Determination of quotas has been influenced by the convertibility of currencies, as it provides the Fund with ‘drawable’ resources. Moreover, the current quota formula is highly influenced by countries’ GDPs and trade.

Despite some reforms over the decades, IMF quotas are biased in favour of rich countries. Thus, arguably, SDR distribution based on IMF quotas is not neutral. Allocating more rights to provide poor countries with development finance would help redress this bias.

Concessional finance
The UN has long argued for creating new reserve assets (i.e., SDRs) to augment development finance instead of current provisions for distribution according to IMF quotas.

Creating new SDRs for development finance has its origins in Keynes’ 1944 proposal for an international clearing union (ICU). The ICU was to be empowered to issue an international currency, tentatively named ‘bancor’. The ICU would also finance several international organizations pursuing desirable objectives such as post-war relief and reconstruction, preserving peace and maintaining international order, as well as managing commodities.

From the late 1950s, Robert Triffin and others urged empowering the IMF to issue special reserve assets to supplement development finance. In 1965, the United Nations Conference on Trade and Development (UNCTAD) endorsed a plan similar to Triffin’s.

According to this plan, the IMF would issue units to all member countries against freely usable currencies deposited by members. The IMF would invest some of these currency deposits in World Bank or International Bank for Reconstruction and Development (IBRD) bonds. The IBRD would then transfer some of these to the International Development Association (IDA) for long-term low-interest loans to the poorest countries.

Objections

However, the proposal was blocked by the Group of Ten developed countries. They argued that the proposal, for permanent transfers of real resources from developed to developing countries, would contradict the original intent of costless reserve creation. Additionally, the G10 argued, direct spending of SDRs would be inflationary.

The creation of SDRs is not an end in itself, but a means to raise living standards. Thus far, the SDR facility has been used to try to ensure more orderly and higher growth in international liquidity, e.g., following the 2008-2009 global financial crisis, when a new allocation of SDR 182.7 billion was approved.

Also, by substituting for gold, which requires real resources to be mined, refined, transported and guarded, with costs of production and administration near zero, SDRs generate social savings, which can be used for internationally agreed objectives.

Jan Tinbergen argued that as the creation of new money always implies that the first recipient gets money without having produced something, this privilege should be given to the poor countries of the world, instead of the rich. But changing the SDR allocation formula requires amending the IMF Articles of Agreement, which requires approval of all powerful developed countries, which seems most unlikely in these times.

Development finance
Another recent UN proposal could help overcome resistance to issuing SDRs for development finance. The proposal involves floating bonds backed by SDRs, not directly spending SDRs. Arguably, leveraging SDRs thus would expose bond holders to illiquidity risks and distort the purpose (i.e., reserve asset) for which SDRs were first created.

Opposition to the proposal should be reduced by only leveraging ‘idle’ SDRs held by reserve-rich countries to purchase such bonds. This would be comparable to countries investing foreign currency reserves through sovereign wealth funds, where the liquidity and risk characteristics of specific assets in the fund determine whether they qualify as reserve holdings. Thus, careful design for leveraging SDRs, while maintaining their reserve function, can mitigate objections.

The proposal is also in line with current donor preference for blended finance, using aid to leverage private investment. Hence, this more modest and less ambitious proposal should face less political resistance from developed countries as it delinks the SDR distribution formula from the debate over amending IMF quotas.

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Towards a Resource Efficient and Pollution Free Asia-Pacifichttp://www.ipsnews.net/2017/09/towards-resource-efficient-pollution-free-asia-pacific/?utm_source=rss&utm_medium=rss&utm_campaign=towards-resource-efficient-pollution-free-asia-pacific http://www.ipsnews.net/2017/09/towards-resource-efficient-pollution-free-asia-pacific/#respond Mon, 04 Sep 2017 10:31:46 +0000 Shamshad Akhtar and Erik Solheim http://www.ipsnews.net/?p=151906 Shamshad Akhtar, is Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)
Erik Solheim, is Executive Director of the United Nations Environment Programme (UNEP)

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Shamshad Akhtar, is Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)
Erik Solheim, is Executive Director of the United Nations Environment Programme (UNEP)

By Shamshad Akhtar and Erik Solheim
BANGKOK, Thailand, Sep 4 2017 (IPS)

Senior government officials from across Asia and the Pacific will meet in Bangkok this week for the first-ever Asia-Pacific Ministerial Summit on the Environment. The high-level meeting is co-convened by the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) and UN Environment and is a unique opportunity for the region’s environment leaders to discuss how they can work together towards a resource efficient and pollution-free Asia-Pacific.

Shamshad Akhtar

At the core of the meeting is the question: how can we use our resources more efficiently to continue to grow our economies in a manner that does not tax our natural environment or generate pollution affecting public health and ecosystem health. There is certainly much room for improvement to make in this area.

Resources such as fossil fuels, biomass, metals and minerals are essential to build economies. However, the region’s resource efficiency has regressed in recent years. Asia is unfortunately the least resource efficient region in the world. In 2015, we used one third more materials to produce each unit of GDP than in 1990. Developing countries use five times as many resources per dollar of GDP in comparison to rest of the world and10 times more than industrialized countries in the region. This inefficiency of resource use results into wastage and pollution further affecting the natural resources and public health which are the basic elements for ensuring sustainable economic growth.

As the speed and scale of economic growth continues to accelerate across the region, pollution has become a critical area for action. While the challenge of pollution is a global one, the impacts are overwhelmingly felt in developing countries. About 95 per cent of adults and children who are impacted by pollution-related illnesses live in low and middle-income countries. Asia and the Pacific produces more chemicals and waste than any other region in the world and accounts for the bulk – 25 out of 30 – of cities with highest levels of PM 2.5, the tiny atmospheric particulate matter that can cause respiratory and cardiovascular diseases and cancer. More than 80 per cent of our rivers are heavily polluted while five of the top land-based ocean plastic sources are from countries in our region. Estimates put the cost of marine pollution to regional economies at a staggering US$1.3 billion.

Erik Solheim

If left unattended, these trends threaten to up end hard-won economic gains and hamper human development. But while these challenges appear intractable, the region has tremendous strengths and opportunities to draw from. Many countries hold solid track records of successful economic transformation. The capacity for promoting environmental sustainability as an integral pillar of sustainable development must now be developed across all countries in the region

There are some profound changes underway in Asia and the Pacific. The region is experiencing the largest rural to urban migration in history. Developing these new urban areas with resource-efficient buildings, waste water and solid waste management systems can do much to advance this agenda. Advancing the “sharing economy” might mean we have better utilization of assets such as vehicles, houses or other assets, greatly reducing material inputs and pollution. The widespread move to renewable energy should rein in fossil fuel use. And advances in recycling, materials technology, 3D printing and manufacturing could also support greater resource circularity.

Moving to green technologies and eco innovation offer economic and employment opportunities. Renewable energy provided jobs for 9.8 million people worldwide in 2016. Waste can be converted into economic opportunities, including jobs. In Cebu City– the second-largest city in the Philippines, concerted Solid Waste Management has borne fruit: waste has been reduced by 30 per cent in 2012; treatment of organic waste in neigbourhoods has led to lower transportation costs and longer use period in landfills. The poor have largely benefited from hundreds of jobs that have been created.

At the policy level, it is vital that resource efficiency and pollution prevention targets are integrated into national development agendas, and targeted legal and regulatory measures to enforce resource efficiency standards should be established. For example, the Government of China has instituted a national system of legislation, rules and regulations that led to the adoption of a compulsory national cleaner production audit system that has been in place for more than 10 years. The direct economic benefits from this system is estimated to be more than $3 billion annually.

Further, we need an urgent reform of financial instruments. Too little capital is supporting the transition to green and resource efficient economy – major portion of current investments is still in high-carbon and resource-intensive, polluting economies. Polluter pay principle and environmental externalities are not yet fully integrated into pricing mechanisms and investment models. The availability of innovative financing mechanisms and integrated evaluation methods are important for upscaling and replicating resource-efficient practices. For example, the large-scale promotion of biogas plants in Viet Nam was made possible by harnessing global climate finance funds. Several countries in the region area are already emerging as leaders in the development of comprehensive, systemic approaches that embed sustainable finance at the heart of financial market development, such as Indonesia and Sri Lanka, and we should draw from the positive lessons learned from these experiences.

Resource efficiency and pollution prevention must be recognized as an important target for action by science, technological and innovation systems. This is important for the ongoing development of technology, and for scaling up technologies. Research shows that developing countries could cut their annual energy demand by more than half, from 3.4 percent to 1.4 percent, over the next 12 years. This would leave energy consumption some 22 percent lower than it would otherwise have been – an abatement equivalent to the entire energy consumption in China today.

We need to move to a more resource efficient and pollution free growth path that supports and promotes healthy environments. The cost of inaction for managing resources efficiently and preventing pollution is too high and a threat to economies, livelihoods and health across the region.

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Climate Smart Crops: A Necessity for Future Food & Nutrition Securityhttp://www.ipsnews.net/2017/08/climate-smart-crops-necessity-future-food-nutrition-security/?utm_source=rss&utm_medium=rss&utm_campaign=climate-smart-crops-necessity-future-food-nutrition-security http://www.ipsnews.net/2017/08/climate-smart-crops-necessity-future-food-nutrition-security/#respond Thu, 31 Aug 2017 21:53:38 +0000 Bev Postma http://www.ipsnews.net/?p=151877 Bev Postma is CEO of HarvestPlus

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Bev Postma is CEO of HarvestPlus

By Bev Postma
WASHINGTON DC, Aug 31 2017 (IPS)

Climate change is taking a severe toll on farmers, as they watch their livelihoods disappear with the onslaught of floods, droughts and rising sea levels and temperatures. With agriculture currently employing over 1.3 billion people throughout the world, or close to 40 percent of the global workforce, it is imperative that we incorporate climate resilience into all aspects of crop breeding and food innovation.

Developing ways to improve staple crops so that they can withstand some of the adverse effects of climate change will ensure food security and agricultural livelihood for generations to come.

A recent report from the International Food Policy Research Institute (IFPRI) found that at current rates of climate change, it is likely that global food production will decline by two percent every decade until at least 2050, just as the world’s population is expected to reach 9.7 billion people.

As a result of these factors, people may be forced to eat fewer fruits, vegetables, and red meat products because their availability may be scarce and prices may rise accordingly. Access to food may also be limited by climate-related vulnerabilities in transportation, storage, and processing.

Projection models from the World Bank likewise show that by the 2030s-2040s, between 40 to 80 percent of cropland used to grow staple crops like maize, millet and sorghum could be lost due to the effects of higher temperatures, drought and aridity.

At the same time, increased levels of CO2 in the atmosphere are already decreasing the nutritional quality of crops – lowering their concentrations of vital micronutrients like zinc and iron. In a 2014 study on CO2 and crop nutrition, Samuel Myers of Harvard University and his colleagues determined that the CO2 levels in the second half of this century would likely reduce the levels of zinc, iron, and protein in wheat, rice, peas, and soybeans.

Some two billion people live in countries where citizens receive more than 60 percent of their zinc or iron from these foods. Many already suffer from diets that lack enough of these important minerals, and increased deficiencies of these vital nutrients would have even more devastating health consequences.

A new technology known as biofortification – the process of increasing the nutrient content of staple food crops – is a promising tool in the global effort to mitigate these trends.

Many of the effects of climate change are already being felt. Increased drought and aridity are now a reality in Somalia, Kenya and Ethiopia, leading to widespread harvest losses and livestock death. As a result, malnutrition levels in the area have skyrocketed. In Somalia alone, the UN says more than six million people are in need of urgent help.

Though climate change continues to progress at an advanced pace, researchers and policymakers can help offset some of the negative impact on farmers by focusing on crop adaptation strategies. Organizations like HarvestPlus and our global partners recognize the necessity of climate resilience and our scientists, plant breeders and country teams are working daily to scale out more climate-resilient crops.

At the International Center for Tropical Agriculture in Palmira, Colombia, researchers are developing beans that can “beat the heat.” Often referred to as “the meat of the poor,” beans offer a crucial source of vitamins and protein as well as income for millions of people, particularly in Africa and Latin America.

But climate modeling suggests that, over the coming decades, higher temperatures will threaten bean production, reducing yields and quality. Moreover, heat stress could diminish the area for growing beans by up to 50% in eastern and central Africa by the year 2050.

By identifying elite lines of beans that show strong tolerance to heat – up to 30 degrees Celsius – breeders can develop more productive, nutritionally improved beans that are resilient even in harsh growing conditions.

Indeed, climate resistant traits are integral to all 150 varieties of the 12 staple crops we and our partners have developed. We run extensive tests to ensure crops will be successful, from stress tests in the field mimicking intense climate conditions, to studies in laboratories.

Under repeatable stress conditions, we generate an environment for testing which allows breeding for climate smart, robust varieties with high micro¬nutrient and high yield stability.

The traits bred into our crops are virus, disease and pest resistance, as well as drought and heat tolerance. These selective plant breeding techniques are just one means of securing agriculture in areas vulnerable to climate change, but we have to do more.

As climate change continues to play a dominant role in agriculture and food security, we have to remain committed to continued research to be sure people in rural communities receive the most nutritious and resilient crop varieties available.

With ongoing crises of famine in five countries stretching from Africa to the Middle East, farmers and vulnerable populations are relying on policymakers, scientists and aid workers to provide the necessary tools to mitigate hunger and prevent additional harvest losses.

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Women Play Key Role in Solar Energy Projectshttp://www.ipsnews.net/2017/08/women-play-key-role-solar-energy-projects/?utm_source=rss&utm_medium=rss&utm_campaign=women-play-key-role-solar-energy-projects http://www.ipsnews.net/2017/08/women-play-key-role-solar-energy-projects/#respond Thu, 31 Aug 2017 14:18:38 +0000 Rabiya Jaffery http://www.ipsnews.net/?p=151864 Since weather affects everyone, the idea that women are more susceptible to the effects of climate change may strike some as puzzling. However, according to a United Nations report, State of the World Population, women—particularly those in poor countries—will be affected differently than men. An Environmental Justice Foundation report revealed that by 2050 the number […]

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A vegetable vendor in Bangalore using a solar lamp to light her stall. Credit: SELCO/IPS

By Rabiya Jaffery
ABU DHABI, Aug 31 2017 (IPS)

Since weather affects everyone, the idea that women are more susceptible to the effects of climate change may strike some as puzzling.

However, according to a United Nations report, State of the World Population, women—particularly those in poor countries—will be affected differently than men.

An Environmental Justice Foundation report revealed that by 2050 the number of people fleeing the impacts of climate change could reach 150 million. And, according to the Women’s Environmental Network, 80 per cent of these climate refugees will be women and children.

This is primarily because women make up the majority of the world’s poor, tend to have lower incomes, and are more likely to be economically dependent than men – all of which greatly limits their ability to cope with difficult climate conditions.

In addition, while extreme weather and disappearing water resources affect entire communities, women in rural areas represent 45-80 per cent of the agricultural workforce and are more likely to feel the brunt.

Droughts and erratic rainfall forces women to work harder and, often, younger girls are seen dropping out of schools to help their mothers, states the report. “This cycle of deprivation, poverty and inequality undermines the social capital needed to deal with climate change effectively.”

This means that not only are women more vulnerable to the effects of climate change, they also have fewer opportunities to make decisions on how to deal with it – men have greater access to the money and education necessary to participate in climate-change decisions, policymaking, and local planning.

However, despite being often underrepresented in drafting policy and strategies to tackle the causes and impacts of climate change, many women from rural areas around the world are now actively taking the responsibility to protect the environment, their families, and livelihoods.

“A few years ago, climate change was considered gender-neutral,” says Naoko Ishii, chief executive of the nonprofit Global Environment Facility, which works on climate issues. “But when we did a gender analysis, gender neutral actually mean gender-ignorant.”

In growing recognition of the connection between women’s rights and climate change, Greenpeace has been working on multiple solar energy projects that assist women at community levels to implement simple, effective, and affordable sustainable solutions in rural areas in developing countries.

“We believe women are the most affected by climate change and, when empowered, can be positive agents of change in the path towards a sustainable world powered by 100 per cent renewable energy,” says Ghalia Fayad, the Arab World programme leader for Greenpeace Mediterranean.

The NGO has supported adapting solar systems to replace the more costly previously used diesel generators that also suffered from chronic electricity shortages in several primarily women-run cooperates that are now diversifying the production of the likes of argon, almond, and eggs in the country.

“The benefits of solar energy meant they increased their business’s productivity, allowing them to think about expanding further and setting up new food production outlets,” said Fayad. “Most importantly for these women, steady productivity now means increased family time, and that has no price.”

Greenpeace is also currently running solar cooking training sessions that showcase the potential of solar energy as an alternative to coal, wood, and butane gas to women in rural Morocco.

“The women who are the voice of this campaign ask for the Moroccan government to act on the legislative and institutional framework that would then enable the spread of renewable energy on decentralized level,” adds Fayad.

Earlier this year, the NGO also collaborated with Deir Kanoun Ras el Ain, a 23 women strong cooperative in South Lebanon that produces artisan food to launch a crowdfunding project to install solar power to heat water and power machines.

“I can feel that everything is about to change for us,” says Daad Ismail, President of the women’s cooperative. “Electricity shortages have hurt our productivity, our working hours and our personal lives. We know that solar energy will not only help us to cut bills, generate more income and improve our lives, but it will also broaden our horizons with new opportunities.”

The cooperative now has 12 solar photovoltaic (PV) panels, with a total peak production capacity of 3 kilowatts.

Coupled with energy efficiency measures including LED lights, thermal insulation and a solar water heating system, the annual electricity bill could be cut by two thirds and reliance on their diesel generator reduced to a minimum.
“Women generally are often most connected to their communities and family, which gives them a unique potential to contribute to create real and lasting change,” says Fayad.

Their perspectives are essential to ensuring local people have a say in the changes affecting their lives, she adds.

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Young Artists Get Passionate About Renewable Energyhttp://www.ipsnews.net/2017/08/young-artists-get-passionate-renewable-energy/?utm_source=rss&utm_medium=rss&utm_campaign=young-artists-get-passionate-renewable-energy http://www.ipsnews.net/2017/08/young-artists-get-passionate-renewable-energy/#respond Wed, 30 Aug 2017 11:33:49 +0000 Jewel Fraser http://www.ipsnews.net/?p=151843 Conversations about renewable and sustainable energy don’t typically include artistic ideas on the subject. However, the Caribbean Community (Caricom) has chosen to engage the region’s youth in the conversation by inviting them to create artistic works on sustainable energy for a regional competition. Seven of the nine winners in the 2016 competition were from Trinidad […]

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Second- and third-place winners, respectively, in the Caricom Energy Month Photography and Art competition, Candice Sobers and Seon Thompson, holding the works that won them the prizes. Credit: Jewel Fraser/IPS

By Jewel Fraser
PORT OF SPAIN, Trinidad, Aug 30 2017 (IPS)

Conversations about renewable and sustainable energy don’t typically include artistic ideas on the subject. However, the Caribbean Community (Caricom) has chosen to engage the region’s youth in the conversation by inviting them to create artistic works on sustainable energy for a regional competition.

Seven of the nine winners in the 2016 competition were from Trinidad and Tobago and in June they were honoured at a ceremony held by Trinidad and Tobago’s Ministry of Energy and Energy Industries.Sobers said her focus in painting “Mother Energy” was to encourage “sustaining the environment with the right motive, with a motive of loving it, cherishing it and benefiting from it."

Some of those winners told IPS that the competition had indeed kindled their desire to be a part of the sustainable/renewable energy discussion now taking place in the region.

Candice Sobers, who won second place in the professional art category, describes entering art competitions “as a hobby” because “exposure in the arts is difficult to come by in Trinidad”. Nevertheless, the research she did for the competition has had an impact on how she uses energy. She now turns off any lights and appliances in her home that are not in use, and she has invested in energy-saving light bulbs.

Sobers’ entry to the Caricom Energy Month art and photography competition depicted a tree painted in the shape of woman who is seen pregnant with the sun. The mother tree’s mode of transportation is a bicycle and the environment she inhabits comprises various forms of renewable energy.

The painting, entitled “Mother Energy”, is rendered in acrylics, coloured pencil, and oil pastels. Sobers describes her work, in part, as follows: “The bicycle is a means of exercise without burning fossil fuels, encouraging the reduction of the carbon footprint. The energy saving bulb hangs on her neck as an accessory while she rides by the hydro-electric plant and wind mill landscape.”

Sobers said her focus in painting “Mother Energy” was to encourage “sustaining the environment with the right motive, with a motive of loving it, cherishing it and benefiting from it. If the motive is only for money mankind will find themselves abusing it in some form.”

Winners in the Caricom Energy Month art competition Fidelis Iwueke (from left), Candice Sobers, and Seon Thompson. Credit: Jewel Fraser/IPS

Third-placed winner in the professional art category, Seon Thompson, likewise chose to use a woman as part of his iconography. Like Sobers, Thompson holds a BA in Visual Arts from the University of the West Indies, St. Augustine. He told IPS, “I tried to give a double meaning to some of the elements.”

He explained that the hair of the woman, in a traditional corn row hairstyle, was also used to depict rows of plants while the palm trees seen in the landscape behind her also carried the implication of wind turbines. As one gazes at the painting, one’s eyes are led by the graceful lines of the woman’s arm and the undulating lines of cool blue and green depicting her hair to the warm, vividly coloured sun and mountains she carries in a basket on her head, with their obvious allusion to solar energy.

In explaining his work, Thompson said. “I really wanted to connect sustainable energy with the elements of the Caribbean we all could relate to—sun, foliage, fauna, people, houses and hills.” The houses in his painting are shown with solar panels on their roofs.

“In the Caribbean, we have two seasons, rainy and dry, so we really should be using solar energy, hydro energy, and so on….We are a prime example of nations that have all the elements aligned to practise sustaintable energy. We just need to invest in it more and see the value of utilising these mediums that exist and are readily available.”

Thompson said in creating his painting, “I really wanted to create an experience, not just have people say ‘that’s nice’. You must have an experience and really leave with something on your mind.”

He said he has started a project at the school where he teaches art to promote the idea of sustainability. The project encourages Form 5 students to find objects that are discarded and repurpose them in ways that are beneficial and profitable.

For 19-year-old Fidelis Iwueke, the first prize winner in the Caricom Energy Month video competition, his studies at A’Level in Environmental Science provided the foundation for his creation.

He provided IPS with a textbook definition of sustainability. “Sustainability is to ensure that the needs of today are provided for without compromising the future.”

Iwueke has just finished secondary school and his success in the video competition has awakened an interest in documentary production as a prospective career. “I am a former documentary junkie. I love documentaries,” he said. He is also a poet and spoken word artist, which made the video competition the most suitable category for him, he said.

Using public domain footage and videos that he gained permission to use, Iwueke was able to create his award-winning video. He began by creating an audio track of his voice discussing the topic of sustainable energy, to which he added music. He then overlaid this on the video he had obtained, following which he edited the video using the WeVideo app on his phone. The result was a seamless production that belies the fact that this was his first foray into video production.

The video opens with delightful clips showing the sea and other scenes from nature in the Caribbean, then segues to West Indians in the midst of carnival, as his voiceover ties the clips together by referring to the Caribbean’s sea and sun and then to Caribbean people as “a people full of energy…and we rely on energy for growth, survival and sustainable development. For sustainable development, we need sustainable energy.”

The video then goes on to discuss why sustainable energy is important and the different forms that are available to Caribbean people and encourages their use, while holding viewers’ attention with arresting footage.

Reflecting on the competition theme, Iwueke said, “The sun is always there. We have nice oceans for tidal energy. We just need a basic attitude change; changes in our consumption patterns could go a long way.”

Despite learning environmental science at school, preparing for the competition was a learning experience for him. “I liked and followed the Caricom Energy page to keep in the know. I learned how far the Caribbean has come and how much more we need to do,” he said.

The competition thus provided an avenue for these young Caribbean artists to further their practice, while making them more invested in sustainable energy as a lifestyle. “Now that I am more aware of renewable energy, I will become more of an advocate in any way possible. And when the finances are there I will make better choices,” said Iwueke.

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Geothermal – a Key Source of Clean Energy in Central Americahttp://www.ipsnews.net/2017/08/geothermal-key-source-clean-energy-central-america/?utm_source=rss&utm_medium=rss&utm_campaign=geothermal-key-source-clean-energy-central-america http://www.ipsnews.net/2017/08/geothermal-key-source-clean-energy-central-america/#respond Sat, 26 Aug 2017 12:44:37 +0000 Edgardo Ayala http://www.ipsnews.net/?p=151797 Energy from the depths of the earth – geothermal – is destined to fuel renewable power generation in Central America, a region with great potential in this field. “Volcanoes have always been a menace to humanity but now in El Salvador they are a resource to generate clean, renewable and cheap energy. Now they represent […]

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What Does “Climate-Smart Agriculture” Really Mean? New Tool Breaks It Downhttp://www.ipsnews.net/2017/08/climate-smart-agriculture-really-mean-new-tool-breaks/?utm_source=rss&utm_medium=rss&utm_campaign=climate-smart-agriculture-really-mean-new-tool-breaks http://www.ipsnews.net/2017/08/climate-smart-agriculture-really-mean-new-tool-breaks/#respond Mon, 14 Aug 2017 23:20:05 +0000 Desmond Brown http://www.ipsnews.net/?p=151680 A Trinidadian scientist has developed a mechanism for determining the degree of climate-smart agriculture (CSA) compliance with respect to projects, processes and products. This comes as global attention is drawn to climate-smart agriculture as one of the approaches to mitigate or adapt to climate change. Steve Maximay says his Climate-Smart Agriculture Compliant (C-SAC) tool provides […]

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The base for a water catchment tank. Faced with severe droughts, many farmers in the Caribbean have found it necessary to set up catchment areas to harvest water whenever it rains. Credit: CDB

By Desmond Brown
PORT OF SPAIN, Trinidad, Aug 14 2017 (IPS)

A Trinidadian scientist has developed a mechanism for determining the degree of climate-smart agriculture (CSA) compliance with respect to projects, processes and products.

This comes as global attention is drawn to climate-smart agriculture as one of the approaches to mitigate or adapt to climate change.“It can be used as a preliminary filter to sort through the number of ‘green-washing’ projects that may get funded under the rubric of climate-smart agriculture...all in a bid to access the millions of dollars that should go to help small and genuinely progressive farmers." --Steve Maximay

Steve Maximay says his Climate-Smart Agriculture Compliant (C-SAC) tool provides a certification and auditing scheme that can be used to compare projects, processes and products to justify the applicability and quantum of climate change funding.

“C-SAC provides a step-by-step, checklist style guide that a trained person can use to determine how closely the project or process under review satisfies the five areas of compliance,” Maximay told IPS.

“This method literally forces the examiner to consider key aspects or goals of climate-smart agriculture. These aspects (categories) are resource conservation; energy use; safety; biodiversity support; and greenhouse gas reduction.”

He said each category is further subdivided, so resource conservation includes the use of land, water, nutrients and labour. Energy use includes its use in power, lighting, input manufacture and transportation. Safety revolves around production operations, harvesting, storage and utilization.

Biodiversity support examines land clearing, off-site agrochemical impact, limited introduction of invasive species, and ecosystem services impact. Greenhouse gas reduction involves enteric fermentation (gas produced in the stomach of cattle and other animals that chew their cud), soil management, fossil fuel reduction and manure/waste management.

“These subdivisions (four each in the five categories) are the basis of the 20 questions that comprise the C-SAC tool,” Maximay explained.

“The manual provides a means of scoring each aspect on a five-point scale. If the cumulative score for the project is less than 40 it is deemed non-compliant and not a truly climate smart agriculture activity. C-SAC further grades in terms of degree of compliance wherein a score of 40-49 points is level 1, (50-59) level 2, (60 -69) level 3, (70-79) level 4, and (80-100) being the highest degree of compliance at level 5.

“It is structured with due cognizance of concerns about how the global climate change funds will be disbursed,” he added.

The United Nations (UN) Food and Agriculture Organisation (FAO) describes climate-smart agriculture as agriculture that sustainably increases productivity, enhances resilience (adaptation), reduces or removes greenhouse gases (mitigation) where possible, and enhances achievement of national food security and development goals.

The climate-smart agriculture concept reflects an ambition to improve the integration of agriculture development and climate responsiveness. It aims to achieve food security and broader development goals under a changing climate and increasing food demand.

CSA initiatives sustainably increase productivity, enhance resilience, and reduce/remove greenhouse gases, and require planning to address tradeoffs and synergies between these three pillars: productivity, adaptation, and mitigation.

While the concept is still evolving, many of the practices that make up CSA already exist worldwide and are used by farmers to cope with various production risks.

Mainstreaming CSA requires critical stocktaking of ongoing and promising practices for the future, and of institutional and financial enablers for CSA adoption.

Maximay said C-SAC is meant to be a prioritizing tool with a holistic interpretation of the perceived benefits of climate-smart agriculture.

“It can be used as a preliminary filter to sort through the number of ‘green-washing’ projects that may get funded under the rubric of climate-smart agriculture…all in a bid to access the millions of dollars that should go to help small and genuinely progressive farmers,” he said.

“C-SAC will provide bankers and project managers with an easy to use tool to ensure funded projects really comply with a broad interpretation of climate smart agriculture.”

Maximay said C-SAC incorporates major categories of compliance and provides a replicable analysis matrix using scalar approaches to convert qualitative assessments into a numeric compliance scale.

“The rapid qualitative analysis at the core of C-SAC depends on interrelated science-based guidelines honed from peer reviewed, field-tested practices and operations,” Maximay explained.

“Climate-smart agriculture often amalgamates activities geared towards adaptation and mitigation. The proliferation of projects claiming to fit the climate smart agriculture designation has highlighted the need for an auditing and certification scheme. One adaptation or mitigation feature may not be enough to qualify an agricultural operation as being climate-smart. Consequently, a more holistic perspective can lead to a determination of the level of compliance with respect to climate-smart agriculture.

“C-SAC provides that holistic perspective based on a structured qualitative assessment of key components,” Maximay added.

The scientist notes that in the midst of increased opportunities for the use of global climate funds, it behooves policymakers and financiers to ensure projects are not crafted in a unidimensional manner.

He added that small farmers in Small Island Developing States are particularly vulnerable and their needs must be met by projects that are holistic in design and implementation.

Over the years, agriculture organisations in the Caribbean have been providing funding to set up climate-smart farms as demonstrations to show farmers examples of ecological practices that they can use to combat many of the conditions that arise due to the heavy rainfall and drought conditions experienced in the region.

Maximay was among the first agricultural scientists addressing climate change concerns during the Caribbean Planning for Adaptation to Climate Change (CPACC).

A plant pathologist by training, he has been a secondary school teacher, development banker, researcher, World Bank-certified training manager, university lecturer, Caribbean Development Bank consultant and entrepreneur.

Maximay managed the first Business Development Office in a Science Faculty within the University of the West Indies. With more than thirty years’ experience in the agricultural, education, health, financial and environmental sectors, he has also worked on development projects for major regional and international agencies.

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Will Renewable Energies Finally Get Their Chance in Argentina?http://www.ipsnews.net/2017/08/will-renewable-energies-finally-get-chance-argentina/?utm_source=rss&utm_medium=rss&utm_campaign=will-renewable-energies-finally-get-chance-argentina http://www.ipsnews.net/2017/08/will-renewable-energies-finally-get-chance-argentina/#respond Mon, 14 Aug 2017 12:39:10 +0000 Daniel Gutman http://www.ipsnews.net/?p=151672 The first thing anyone who looks at any official document this year in Argentina will read is: “2017, the year of renewable energies.” This indicates the importance that the government gives to the issue, although translating the slogan into reality does not seem as easy as putting it in the headings of public documents. Renewable […]

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Will Renewable Energies Finally Get Their Chance in Argentina?

The solar farm in Arribeños, a locality in the province of Buenos Aires, which began to inject 500 Kw into the Argentinian power grid in August. Credit: Argentine Chamber of Renewable Energy

By Daniel Gutman
BUENOS AIRES, Aug 14 2017 (IPS)

The first thing anyone who looks at any official document this year in Argentina will read is: “2017, the year of renewable energies.” This indicates the importance that the government gives to the issue, although translating the slogan into reality does not seem as easy as putting it in the headings of public documents.

Renewable sources of energy today make up an insignificant proportion of Argentina’s energy mix. But under a law passed in 2015, with the consensus of all political sectors, this scenario is to be reverted in the next few years.“The main driver of these initiatives is that Argentina has a large energy deficit and needs new power from all sources: from hydroelectric plants as well as the two new projected nuclear plants, while increasing its production of natural gas and also boost production from renewable sources.” -- Javier Cao

The objective is not only based on commitments of turning to clean sources of energy undertaken by Argentina within the framework of global agreements to combat climate change, but also on the need, imposed by the economy, to expand and diversify the energy mix.

For years, Argentina has been spending a fortune to import fossil fuels, although the amount has decreased, from seven billion dollars in 2014 to less than three billion dollars last year.

However, that did not happen due to increased productivity or a diversification of local sources, but because of a fall in international oil prices.

“Fossil fuels form an absurdly large portion of our energy mix. We have to change that,” Daniel Redondo, the government’s secretary of strategic energy planning, acknowledged in July in front of an auditorium of experts.

“We are going to live up to the law on renewable energies, which stipulates that 20 per cent of our energy should come from clean source by 2025,” he added.

According to official data, Argentina’s primary energy supply is based on 51 per cent natural gas and 33 per cent oil.

With respect to power generation, thermal plants which use fossil fuels cover 64 per cent of the supply, while 30 per cent comes from hydroelectric plants. The country’s three nuclear plants provide four per cent of the total.

Since 2016, the government has signed 59 contracts with private investors to develop renewable energy projects around the country. These initiatives, which should begin functioning next year, involve an overall investment of about four billion dollars, according to the Energy Ministry.

These projects will jointly add 2,423 megawatts (MW) to the energy supply, which the state has assumed the commitment to buy and incorporate into the national grid, which currently has some 30,000 MW of installed capacity.

China, a decisive player in the energy sector

Besides these projects, which form part of the government’s RenovAr Programme, the governor of the northern province of Jujuy, Gerardo Morales, announced that he signed a contract with the Power China company for the construction and financing of a 300-MW solar farm in the Salar de Cauchari, some 4,000 metres above sea level.

The contract was signed during President Mauricio Macri’s visit to China in May, when Morales was part of the official delegation. According to the governor, it will be “the biggest solar farm in Latin America.”

The first thing anyone who looks at any official document this year in Argentina will read is: “2017, the year of renewable energies.”

President Mauricio Macri signs contracts for renewable energy projects, together with members of his administration and representatives of the Buenos Aires city government. Credit: Argentine Presidency

During the visit, China consolidated its role as a key player in the renewal of the power industry in Argentina. In Beijing, an agreement was reached for the Asian giant to finance 85 per cent of the construction of two nuclear plants, with an investment of 14 billion dollars.

Before the visit, they had agreed for China to finance the construction of two hydroelectric plants in Argentina’s southern region of Patagonia, at a cost of nearly five billion dollars. But the two mega-projects are still on hold by a Supreme Court order, in response to a complaint filed by environmental organisations.

The government is keen on solving this situation, as the Chinese investors have threatened to apply a “cross-default” clause and block their investments in other projects.

Energy Ministry officials reiterate in every public forum in which they participate that the goal is for 20,000 MW of power to be added to the electric grid by 2025, and for half of this to come from renewable sources.

To finance this, the government created the Fund for the Development of Renewable Energies (Foder), which was endowed with 800 million dollars from the state, in addition to another 480 million approved by the World Bank to finance the projects.

The ones that are already underway are mainly wind and solar power projects, since Argentina has favourable conditions for the former in the windy southern region of Patagonia, and for the latter in the high plateaus of northwestern Argentina, where solar radiation is intense.

There are also small-scale hydroelectric and biogas projects.

“This is the first time that Argentina is really moving forward in the development of renewable energies. Today we have what we used to lack: financing,” said Javier Cao, an expert in renewable energies for the economic consulting firm Abeceb.

“The main driver of these initiatives is that Argentina has a large energy deficit and needs new power from all sources: from hydroelectric plants as well as the two new projected nuclear plants, while increasing its production of natural gas and also boost production from renewable sources,” he told IPS.

Will the third time be the charm?

Argentina’s dream of developing renewable energies is not new, but up to now all the efforts made had failed.

The first law that declared renewables a matter of “national interest” was passed by Congress in 1998. But the financial incentives created by that law were destroyed by the late 2001 economic and political crisis that led to the resignation of President Fernando de la Rúa.

In 2006 a second law was enacted, which set a target: eight per cent of the electric power consumed was to come from renewable sources by 2016. But once again, it failed, due to problems with financing.

The third, which will hopefully be the charm, was passed in 2015, with votes from lawmakers who backed then president Cristina Fernández (2007-2015) as well as members of the opposition, in a rare example of consensus.

This law created tax and customs incentives for investors and included among renewable sources hydroelectric dams up to 50 MW of capacity, in contrast to the ceiling of 30 MW set by the previous law.

In addition, it established the obligation to reach the target of eight per cent renewable energies in the electric grid by Dec. 31, 2017 – a deadline that will not be reached. However, the government hopes to meet the target by 2019.

The government does hope to reach the second target set by the law, on time: 20 per cent renewables by 2025.

“One of the challenges in this respect is decentralising production,” said Marcelo Álvarez, president of the Argentine Chamber of Renewable Energies, which represents companies in the sector.

Towards that end, Congress is expected to pass a new power distribution law this year, which will allow users who generate renewable power to sell their surplus to the grid, which would be a real innovation in Argentina.

“We already have achieved a unified text for the bill in the Energy Commission of the Chamber of Deputies, with the participation of technical advisers from all the parties and technicians from the executive branch,” said Juan Carlos Villalonga, a former Greenpeace environmental activist who is now a lawmaker for the governing alliance Cambiemos.

“The take-off of renewable energies will be one of the legacies of this government,” said Villalonga.

Within the Paris Agreement on climate change, signed by 196 member states in December 2015, Argentina committed itself to cutting greenhouse gas emissions by 15 per cent before 2030, a level criticised as low, but to which this country would add another 15 per cent if it receives special funds.

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Jordan Makes Strides Toward Inclusive Green Economyhttp://www.ipsnews.net/2017/08/jordan-makes-strides-toward-inclusive-green-economy/?utm_source=rss&utm_medium=rss&utm_campaign=jordan-makes-strides-toward-inclusive-green-economy http://www.ipsnews.net/2017/08/jordan-makes-strides-toward-inclusive-green-economy/#respond Thu, 10 Aug 2017 00:37:08 +0000 Safa Khasawneh http://www.ipsnews.net/?p=151635 Jordan may be one of the smallest economies in the Middle East, but it has high ambitions for inclusive green growth and sustainable development despite the fact that it lies in the heart of a region that has been long plagued with wars and other troubles, says the Director-General of the Global Green Growth Institute […]

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Safa Khasawneh interviews the Director-General of the Global Green Growth Institute (GGGI) Dr. Frank Rijsberman. Credit: Safa Khasawneh/IPS

Safa Khasawneh interviews the Director-General of the Global Green Growth Institute (GGGI) Dr. Frank Rijsberman. Credit: Safa Khasawneh/IPS

By Safa Khasawneh
AMMAN, Aug 10 2017 (IPS)

Jordan may be one of the smallest economies in the Middle East, but it has high ambitions for inclusive green growth and sustainable development despite the fact that it lies in the heart of a region that has been long plagued with wars and other troubles, says the Director-General of the Global Green Growth Institute (GGGI) Dr. Frank Rijsberman.

In a wide-ranging interview with IPS, Rijsberman stressed that Jordan has shown a strong commitment towards shifting to a green economy, and has made significant strides in the area of renewable energy.The demand for water and energy is increasing due to the influx of more than one million Syrian refugees.

Following months of intensive cooperation with GGGI, the government of Jordan – represented by the Ministry of Environment with contributions by line ministries and other stakeholders – launched its National Green Growth Plan (NGGP) in December 2016, Rijsberman said.

Highlighting GGGI’s key role in helping Jordan launch its NGGP and develop a clear vision towards green growth strategy and policy framework in line with the country’s vision 2025, Rijsberman said that his institute will also play a critical part in mobilizing funds and investments to enable green growth.

Rijsberman, who is currently visiting Amman to check on projects funded and implemented by GGGI and the German government, underscored Jordan’s accelerated steps towards preserving its natural resources, leading the country into a sustainable economy, fighting poverty and creating more jobs for young people.

Rijsberman told IPS that the NGGP, which was approved by the cabinet, lists 24 projects in six main sectors, including water, agriculture, transport, energy, waste and tourism, the most pressing of which are water and energy, two of Jordan’s most limited resources.

The demand for these two resources is increasing due to the influx of more than one million Syrian refugees, Rijsberman said, adding that the GGGI water projects take into consideration that Jordan is one of the world’s poorest countries in terms of water. According to World Bank data, the availability of water per capita stands now at 145 m3 /year but is projected to decline to 90 m3 /year by 2025.

“In terms of water, our projects in Jordan aim to preserve the country’s efficiency of water distribution system, provide clean drinking water, maximize the use of treated wastewater for agricultural and industrial purposes and prevent pollution by cleaning some of the polluted rivers,” he told IPS.

Rijsberman, who is also an expert in water issues, revealed that one of the GGGI’s important near future projects in Jordan is the “Master Plan for Cleaning and Rehabilitation of Zarqa River Basin,” a heavily polluted river located 25 kilometers east of the Jordanian capital Amman.

The GGGI also works to address Jordan’s energy challenges, Rijsberman said, adding that the Kingdom imports 97 percent of its energy needs, and its annual consumption of electricity rises by 5 percent annually.

“In the energy sector, our primary focus is on the efficiency of this resource, since Jordan has already made good progress in setting up solar energy plans, and the need lies on storing this energy,” he said.

During his visit to Jordan, Rijsberman said that he had talks with officials in the ministries of energy, environment and planning on ways to exploit solar energy for battery technology, another renewable technology that can store extra solar power for later use. This new technology, Rijsberman explained, will provide the country with the opportunity to shift to renewable energy and reduce imports of fossil fuels.

In transportation, Jordan has also made further progress by introducing eco-friendly hybrid cars with greater fuel efficiency and lower carbon emissions.

In order to move to a green economy, another step in the right direction was made by the Ministry of Environment, which established a “Green Economy Directorate (unit)”, he said, adding that the GGGI is truly impressed by the full support the unit is receiving from the Ministry of Planning, the Ministry of Environment and the Ministry of Energy.

As Jordan faces new geopolitical challenges and an unprecedented influx of refugees, Rijsberman revealed that GGGI is working with government on a Country Planning Framework (CPF), which is a five-year in-country delivery strategy that identifies and operationalizes the institute’s value additions to national development targets in partner countries.

As a strategic and planning document, the CPF aims at delivering in-country development targets that are in alignment with the overarching GGGI Strategic Plan and Corporate Results Framework. It also elaborates a clear and logical assessment of development challenges and enabling conditions, identifies GGGI’s comparative advantage in country and sets priority interventions, he explained.

In Jordan, he explained, there is political will and determination to create green jobs, green businesses, a healthy environment, and secure and affordable supply of energy for all. What the country lacks is the capacity and technical skills as well as adequate financing mechanisms to encourage the private sector to implement green growth projects.

“So a big part of our job is capacity-building to come up with bankable projects that are green and sustainable, and as we know that the government can’t fund projects by itself, therefore it is very important to build partnerships between the private and public sector to reach this end,” the DG told IPS.

According to official data, four workshops were organized in 2016 to enhance capacity among green growth stakeholders in Jordan. A total of 177 participants attended these workshops in Amman, Jordan, and Abu Dhabi, and the UAE. Eighty-two percent of participants responded to surveys conducted after the workshops, indicating an improvement in their knowledge and skills as a result of their participation.

Rijsberman stressed that although Jordan has made tremendous progress in its approach, there is still a long way to go and a lot of work to do.

Despite accelerating degrees of environmental degradation and depletion of resources in the region because of wars, poverty and high unemployment, the GGGI official said he was impressed by how rapidly some Arab countries such as the UAE and Qatar are shifting towards green growth.

The concept of green growth is starting to take hold in the region, Rijsberman said, adding that there is a sustainability week held annually Abu Dhabi, the GGGI has offices in Masdar city in UAE, Jordan started implementing its National Green Growth Plan and the Arab League has requested to share this plan be with its 22 members.

The Global Green Growth Institute (GGGI) is a treaty-based inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies.

Established in 2012 at the Rio+20 United Nations Conference on Sustainable Development, GGGI is accelerating the transition toward a new model of economic green growth founded on principles of social inclusivity and environmental sustainability.

With the support of strong leadership and the commitment of stakeholders, the GGGI has achieved impressive growth over the last several years and now includes 27 members with operations in 25 developing countries and emerging economies.

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Can Economic Growth Be Really Green?http://www.ipsnews.net/2017/07/can-economic-growth-really-green/?utm_source=rss&utm_medium=rss&utm_campaign=can-economic-growth-really-green http://www.ipsnews.net/2017/07/can-economic-growth-really-green/#comments Thu, 27 Jul 2017 11:37:03 +0000 IPS World Desk http://www.ipsnews.net/?p=151441 The answer to this big question is apparently “yes” – Economic growth can be really green. How? The facts are there. For instance, in 2016, solar power became the cheapest form of energy in 58 lower income countries, including China India and Brazil. In Europe, in 2016, 86 per cent of the newly installed energy […]

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The main impediments to a 100% clean energy infrastructure are are fossil fuel subsidies and current government legislation

Credit: GGGI

By IPS World Desk
ROME/SEOUL, Jul 27 2017 (IPS)

The answer to this big question is apparently “yes” – Economic growth can be really green. How?

The facts are there. For instance, in 2016, solar power became the cheapest form of energy in 58 lower income countries, including China India and Brazil. In Europe, in 2016, 86 per cent of the newly installed energy capacity was from renewable sources. And solar power will likely be the lowest-cost energy option in almost all parts of the world in less than 10 years.

This bold, fact-based information has been provided by Frank Rijsberman, the Director General of the Global Green Growth Institute (GGGI), a well-known expert in the field of sustainable development and former CEO of the Consultative Group for International Agricultural Research (CGIAR) Consortium.

The G20 countries pledged in 2009 to eliminate fossil fuel subsidies, yet they continue to this day

Frank Rijsberman. Credit: GGGI

Building on this documented information, Rijsberman, in an article Will fossil fuels and conventional cars be obsolete by 2030?, which was published on 23 February in The Huffington Post, asks “Is it all over for fossil fuels?”

The GGGI chief then answers: “Tony Seba, Author of “Clean Disruption of Energy and Transportation,” predicts that the industrial era of centralized fossil-fuel based energy production and transportation will be all over by 2030.”

Solar Energy, Self-Driving Electric Vehicles

Solar energy and self-driving electric vehicles will take over, explains Rijsberman. “New business models will allow people to call a self-driving car on their phone for a ride, ending the need for private car ownership.”

This change will occur as quickly as the transition from horse-drawn carriages to cars a century ago.

“The Grantham Institute for Climate Change and the Environment at Imperial College London, and independent think-tank the Carbon Tracker Initiative echoed Seba’s prediction in their recent report, stating that electric vehicles and solar panels could dominate by 2020, sparking revolution in the energy sector and putting an end to demand growth for oil and coal.”

The Global Green Growth Institute invited experts to debate Seba’s “clean disruption” last month [January 2017] at the World Economic Forum in Davos (see short summary of our conclusions here).

“We discussed what are the main impediments to a 100% clean energy infrastructure. The most immediate barriers are fossil fuel subsidies and current government legislation. The G20 countries pledged in 2009 to eliminate these subsidies, yet they continue to this day, Rijsberman informed.

“Significant volumes of investment are shifting away from fossil fuels and towards alternative energy services, particularly in countries with binding renewable energy targets such as in Europe.”

The Energy Transition

According to the head of GGGI — a treaty-based international, inter-governmental organisation dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies–the energy transition can accelerate through the removal of fossil fuel subsidies.

Globally fossil fuel subsidies still amount to some 450 billion dollars per year, warned Rijsberman.

Even African governments, with limited budgets and many competing priorities still subsidise fossil fuels to the tune of 20-25 billion dollars per year according to Dr. Frannie Laeutier of the African Development Bank, speaking in Davos, he added.

Rijsberman then underlined that the best way for governments to attract the private sector is to stand aside (i.e., remove impeding policies such as fossil fuel subsidies and enable market access) and let the market develop by itself.

“Easier said than done, of course, for countries with monopolistic power utilities, with large political influence; or for countries with heavy subsidies on electricity prices.”

Unsustainable Depletion of Natural Resources

The Seoul-based Global Green Growth Institute, which was established in 2012, at the Rio+20 United Nations Conference on Sustainable Development, has been accelerating the transition toward a new model of economic growth –green growth– founded on principles of social inclusivity and environmental sustainability.

In contrast to conventional development models that rely on the “unsustainable depletion and destruction of natural resources,” green growth is a coordinated advancement of economic growth, environmental sustainability, poverty reduction and social inclusion driven by the sustainable development and use of global resources, according to GGGI.

Sirpa Jarvenpaa. Credit: GGGI

On this, GGGI incoming Director of Strategy, Partnerships and Communications, Sirpa Jarvenpaa, in an interview to IPS, emphasised the importance of the Institute in “supporting developing and emerging country governments in their transition to an inclusive green growth development.”

“We do it through mainstreaming green growth in development and sector plans, mobilising finance to green growth investments, and improving multi-directional knowledge sharing and learning for achieving green outcomes on the ground.”

Green Jobs, Clean Energy

Sirpa Jarvenpaa explains that, globally, GGGI’s strategy contributes to “reduction of greenhouse gas emissions, green job creation, access to sustainable services (clean energy, sustainable waste management improved sanitation, and sustainable transport), improved air quality, access to enhanced ecosystem services, and climate change adaptation.”

In Jordan, for example, GGGI is helping the government prepare a national green growth plan –an overarching and influential policy instrument enabling incorporation of green growth objectives across the national investment planning, Jarvenpaa told IPS.

There, the Institute works in partnership with the Ministry of Environment as well as the German Ministry for the Environment

This interdisciplinary, multi-stakeholder organisation believes “economic growth and environmental sustainability are not merely compatible objectives; their integration is essential for the future of humankind.”

For that, it works with developing and emerging countries to design and deliver programs and services that demonstrate new pathways to pro-poor economic growth. And it provides member countries with the tools to help build institutional capacity and develop green growth policy, strengthen peer learning and knowledge sharing, and engage private investors and public donors.

The Global Green Growth Institute supports stakeholders two complementary and integrated work-streams –Green Growth Planning & Implementation and Knowledge Solutions– that deliver comprehensive products and services designed to assist in developing, financing and mainstreaming green growth in national economic development plans.

The post Can Economic Growth Be Really Green? appeared first on Inter Press Service.

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