Anti-coal human chain crossing the Niesse river which separates Poland and Germany, August 2014. Credit: Courtesy of Greenpeace Poland

By Claudia Ciobanu and Silvia Giannelli
GRABICE, Poland / PROSCHIM, Germany, Aug 26 2014 (IPS)

“People have gathered here to tell their politicians that the way in which we used energy and our environment in the 19^th and 20^th centuries is now over,” says Radek Gawlik, one of Poland’s most experienced environmental activists. “The time for burning coal has passed and the sooner we understand this, the better it is for us.”

Gawlik was one of over 7,500 people who joined an 8-kilometre-long human chain at the weekend linking the German village of Kerkwitz with the Polish village of Grabice to oppose plans to expand lignite mining on both sides of the German-Polish border.“It's high time to plan the coal phase-out now and show the people in the region a future beyond the inevitable end of dirty fossil fuels" – Anike Peters, Greenpeace Germany

They were inhabitants of local villages whose houses would be destroyed if the plans go ahead, activists from Poland and Germany, and even visitors from other countries who wanted to lend a hand to the anti-coal cause. The human chain – which was organised by Greenpeace and other European environmental NGOs – passed through the Niesse river which marks the border between the two countries, and included people of all ages, from young children to local elders who brought along folding chairs.

At least 6,000 people in the German part of Lusatia region and another 3,000 across the border in south-western Poland stand to be relocated if the expansion plans in the two areas go ahead.

In Germany, it is Swedish state energy giant Vattenfall that plans to expand two of its lignite mines in the German states of Brandenburg and Saxony; state authorities have already approved the company’s plans. In Poland, state energy company PGE (Polska Grupa Energetyczna) plans an open-cast lignite mine from which it would extract almost two million tonnes of coal per year (more than from the German side).

On the German side

Germany has for a long time been perceived as an example in terms of its energy policy, not in the least because of its famous Energiewende, a strategy to decarbonise Germany’s economy by reducing greenhouse gas emissions by 80-95 percent, reaching a 60 percent renewables share in the energy sector, and increasing energy efficiency by 50 percent, all by 2050.

Today, one-quarter of energy in Germany is produced from renewable sources, and the same for electricity, as a result of policies included in the Energiewende strategy.

Expanding coal mining as would happen in the Lusatia region contradicts Germany’s targets, argue environmentalists. “The expansion of lignite mines and the goals of the Energiewende to decarbonise Germany until 2050 do not fit together at all,” says Gregor Kessler from Greenpeace Germany.  “There have to be severe cuts in coal-burning if Germany wants to reach its own 2020 climate goal (reducing CO₂ emissions by 40 percent).

“Yet the government so far is afraid of taking the logical next step and announce a coal-phase-out plan,” Kessler continues. “So far both the Christian Democrats and the Social Democrats keep repeating that coal will still be needed for years and years to provide energy security. However even today a lot of the coal-generated energy is exported abroad as more and more energy comes from renewables.”

Proschim, a town of around 360 people, is one of the villages threatened by Vattenfall’s planned expansion. Already surrounded by lignite mines, this little community has one feature that makes its possible destruction even more controversial: nowadays it produces more electricity from renewable energy than its citizens use for themselves.

Wind farm in Proschim, Lusatia, Germany. Credit: Silvia Giannelli/IPS

But Vattenfall’s project to extend two existing open cast mines, namely Nochten and Welzow-Süd, would destroy Proschim along with its solar and wind farm and its biogas plant.

“It is such a paradox, we have so much renewable energy from wind, solar and biogas in Proschim. And this is the town they want to bulldoze,” says former Proschim mayor Erhard Lehmann.

The village is nevertheless split on the issue, with half of its citizens welcoming Vattenfall’s expansion project, including Volker Glaubitz, the deputy mayor of Proschim, and his wife Ingrid, who came from Haidemühl, a neighbouring village that was evacuated to make room for the Welzow-Süd open-cast mine. The place is now known as the “ghost-town”, due to the abandoned buildings that Vattenfall was not allowed to tear down because of property-related controversies.

Abandoned buildings in Haidemühl, Lusatia, Germany. Credit: Silvia Giannelli/IPS

Lignite undoubtedly played a major role in Lusatia’s economic development, creating jobs not only in the many open-cast mines spread over the territory, but also through the satellite activities connected to coal processing. Lehmann himself was employed as a mechanic and electrician for the excavators used in the mines. Ingrid Glaubitz was a machinist at ‘Schwarze Pumpe’, one of Vattenfall’s power plants and her son also works for Vattenfall.

“There must be renewable energy in the future, but right now it is too expensive and we need lignite as a bridge technology,” Volker Glaubitz told IPS. “The mines bring many jobs to the region: without the coal, Lusatia would be dead already.”

Johannes Kapelle, a 78-year-old farmer of Sorb origin and at the forefront of the battle against Proschim’s destruction, sees coal in a completely different way: “Coal is already vanishing, it something that belongs to the past.”

His house, right in front of the Glaubitz’s, is covered in solar panels, and from his garden he proudly shows the wind park that provides Proschim with an estimated annual production of 5 GWh.

Johannes Kapelle in his courtyard, with roof covered in solar panels, Proschim, Lusatia, Germany. Credit: Silvia Giannelli/IPS

According to Kapelle, lignite extraction has been threatening the Sorb culture, which is spiritually connected to the land, since the beginning of industrialisation over a hundred years ago. “When a Sorb has a house without a garden, and without farmland, without forests and lakes, then he’s not a true Sorb anymore, because he has no holy land.”

On the Polish side

Poland is Europe’s black sheep when it comes to climate, with 90 percent of electricity in Poland currently produced from coal and the country’s national energy strategy envisaging a core role for coal for decades to come. The Polish government led by Prime Minister Donald Tusk has over the past years tried to block progress by the European Union in adopting more ambitious climate targets.

For Polish authorities, the over 100,000 jobs in coal mining in the country today are an argument to keep the sector going. Additionally, says the government, coal constitutes a local reserve that can ensure the country’s “energy security” (a hot topic in Europe, especially since the Ukrainian-Russian crisis).

Coal opponents, on the other hand, note that the development of renewables and energy efficiency creates jobs too (according to the United Nations, investments in improved energy efficiency in buildings alone could create up to 3.5 million jobs in the European Union and the United States). Environmentalists further argue that coal is not as cheap as its proponents claim: according to the Warsaw Institute for Economic Studies, in some years, subsidies for coal mining in Poland have reached as much as 2 percent of GDP.

“In Poland, the coal lobby is very strong,” says Gawlik. “I also have the impression that our politicians have not yet fully understood that renewables and energy efficiency have already become real alternatives and do not come with some mythically high costs.”

The future of coal in Europe

In Europe as a whole, coal has seen a minor resurgence over the past 2-3 years, despite the European Union having the stated goal to decarbonise by 2050 (out of all fossil fuels, lignite produces the most CO₂ per unit of energy produced).

Access to cheap coal exports from the United States, relatively high gas prices, plus a low carbon price on the EU’s internal emissions trading market (caused in turn by a decrease in industrial output following the economic crisis) led to a temporary hike in coal usage. Yet experts are certain that coal in Europe is dying a slow death.

“In the longer term the prospects for coal-fired power generation are negative,” according to a July report by the Economist Intelligence Unit. “Air-quality regulations (in the European Union) will force plant closures, and renewable energy will continue to surge, while in general European energy demand will be weak. The recent mini-boom in coal-burning will prove an aberration.”

“Additional coal mines would not only be catastrophic for people, nature and climate – it would also be highly tragic, as beyond 2030, when existing coal mines will be exhausted, renewable energies will have made coal redundant,” says Anike Peters, climate and energy campaigner at Greenpeace Germany.

“It’s high time to plan the coal phase-out now and show the people in the region a future beyond the inevitable end of dirty fossil fuels.”

* Anja Krieger and Elena Roda contributed to this report in Germany

(Edited by Phil Harris)

By Roberto Azevêdo
GENEVA, Jul 29 2014 (IPS)

In the 1960s, there were high hopes for the development of the newly-independent sub-Saharan African countries but these hopes were quickly dashed following a series of shocks which began in the mid-70s, with the first oil price spikes, followed by a severe decline in growth and increase in poverty in the 80s and early 90s. However, by the mid-1990s, economic growth had resumed in certain African countries. Economic reform, better macroeconomic management, donor resources and a sharp rise in commodity prices were having a positive effect.

WTO Director General Roberto Azevêdo. Credit: WTO/CC BY SA-2.0

In the 2000s, many African countries witnessed high economic growth performance and during that period some of the world’s fastest growing economies were in sub-Saharan Africa. Angola, Nigeria, Chad, Mozambique and Rwanda all recorded annual growth of over 7 percent.

In 2012 Africa’s exports and imports totalled 630 billion dollars and 610 billion dollars respectively, ­ a fourfold increase since the turn of the millennium. And the long term prospects for growth are good. The Economist Intelligence Unit has forecast average growth for the regional economy of around 5 percent yearly from 2013-16.

Despite all this, the continent still plays a marginal role in the global market, accounting for barely 3 percent of world trade. One significant reason – although, of course there are others – is that African economies are still narrowly based on the production and export of unprocessed agricultural products, minerals and crude oil.“There is little doubt that the regional [African] market offers good scope for African firms to diversify their production and achieve greater value addition”

Now, due to relatively low productivity and technology, these economies have low competitiveness in global markets – apart from crude extractive products. The low productivity of traditional agriculture and the informal activities continue to absorb more than 80 percent of the labour force. And growth remains highly vulnerable to external shocks.

This story of half a century of struggle, set-backs and progress shows two things:

One, the road to meaningful and inclusive development still seems long.

Two, we are in a better position than ever to make real, sustainable progress.

Many countries are striving to do more in turning their strength in commodities into strengths in other areas,­ using commodities as a means of spurring growth across various sectors. The United Nations Economic Commission for Africa’s 2013 Economic Report echoes this ­ calling for the continent’s commodities to be used to support industrialisation, jobs, growth and economic transformation.

In line with this, I think there are a number of essential steps to take:

– diversification of economic structure, namely of production and exports;

– enhancement of export competitiveness;

– technological upgrading;

– improvement of the productivity of all resources, including labour; and

– reduction of infrastructure gaps.

Only by delivering in these and other areas can policymakers ensure that growth enhances human well-being and contributes to inclusive development. But how can we take these steps?

Of course I should say that although African countries share some common features, no unique set of policies, including those on trade and industrial policy, could ever fit for all in a uniform way. Even among the least-developed countries (LDCs), some are already exporters of manufactured products, although often they rely on a single product  while others are more dependent on commodities. Nevertheless, I think it is clear that some preconditions of success are universal.

African regional integration is of course very high on the policy agenda. There is little doubt that the regional market offers good scope for African firms to diversify their production and achieve greater value addition. Already now, manufactures constitute as much as 40 percent of intra-African exports, compared with 13 percent of Africa’s exports to the rest of the world.

The Bali Package, which World Trade Organisation members agreed in December last year, will help to resolve some problems. Inclusive, sustainable development was at the heart of the whole Bali project ­ and our African members played a crucial role in making it a success. It brought some progress on agriculture. It delivered a package to support LDCs. It provided for a Monitoring Mechanism on special and differential treatment.

And, in addition, Bali delivered the Trade Facilitation Agreement and this is a direct answer to some of the problems of fragmentation. Costly and cumbersome border procedures, inadequate infrastructure and administrative burdens often raise trade-related transaction costs within Africa to unsustainable levels, creating a further barrier to intra-African trade.

This Agreement will help to address some of these bottlenecks. It will support regional integration, and therefore complement the African Union’s efforts to create a continental free trade area. And it will begin to remove some of the barriers which prevent full integration into global value chains. As such it will create an added impetus for industrialisation and inclusive sustainable development.

And it is worth noting here that the Trade Facilitation Agreement broke new ground for developing and least-developed countries in the way it will be implemented.

Another vital issue here is the importance of agricultural development in industrialisation, and the role of industrial collaboration through regional cooperation. The contribution of the agriculture sector is of utmost importance for the establishment of a sound industrial base. It can provide a surplus to invest in industrial capacity building, and supply agricultural raw materials as inputs to the production process, especially for today’s highly specialised food processing industry.

Moreover, it can also significantly contribute to industrialisation by providing an ample supply of food products. This is because food constitutes a large share of what wage earners in African countries spend their money on. Its availability at low prices contributes to increase the purchasing power of wages, and therefore raise the competitiveness of a country in international markets. (END/IPS COLUMNIST SERVICE)

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