Is the G7 commitment to an energy transition that aims to gradually phase out fossil fuel emissions this century to avoid the worst of climate change just hot air? Credit: CC BY-SA 2.5

By Lucy Cadena
LONDON, Jun 11 2015 (IPS)

One of the promises made by the leaders of the world’s seven richest nations when they met at Schloss Elmau in Germany earlier this week was an energy transition over the next decades, aiming to gradually phase out fossil fuel emissions this century to avoid the worst of climate change.

Let us be clear: a target of zero fossil fuels by 2100 puts us on track for warming on an unmanageable scale. The only commitment made by the G7 this week was a commitment to climate chaos.

Putting our faith in as-yet-underdeveloped technology fixes such as ‘carbon capture and storage’ and ‘geo-engineering’ to save us in the next 85 years, while the solutions to the climate crisis – renewable technology and community energy systems – exist here and now, is senseless.“The only way to avoid the worst of climate change is to act now, with urgency and ambition. Not by 2100, nor 2050. We need real commitment to real solutions – and the best place the G7 can start is by taking its money – public money – out of dirty energy”

The only way to avoid the worst of climate change is to act now, with urgency and ambition. Not by 2100, nor 2050. We need real commitment to real solutions – and the best place the G7 can start is by taking its money – public money – out of dirty energy.

While the G7 gathered on Jun. 7 and 8, this was the message from people from around the world, who are calling for a ban on all new dirty energy projects and an end to the financing of dirty energy.

The G7’s role in upholding the current dirty energy system is not limited to the subsidies they pour into fossil fuels daily.

G7 countries also directly finance – and profit from – dirty energy projects, particularly in the global South, and in regions where poverty and limited energy access devastate families.

These include projects affecting communities deeply reliant on clean air, water, and land that is polluted and stolen from them, projects among populations most vulnerable to the effects of climate change, and projects where people face harassment and human rights violations for speaking out.

France

Last week, France, host of the 30 November-11 December 2015 Paris climate summit – the U.N. gathering to set the agenda for global climate commitments in the next decades – announced that two of the summit’s key sponsors will be EDF and ENGIE (formerly GDF-Suez).

The French state holds 84 percent and 33.3 percent of shares in these companies respectively. Both are involved in the construction of several very controversial, polluting projects across the world.

EDF is currently planning the destructive Mphanda Nkuwa mega-dam on the Zambezi River in Mozambique, in the face of fierce opposition from local communities and environmental organisations.

A letter from civil society reminds French President François Hollande that these and other projects place EDF and ENGIE among the top 50 companies that contribute the most to global climate change.

With 46 coal-fired power plants between them, EDF and ENGIE are responsible for emitting 151 million tonnes of CO₂ a year – which amounts to about half the total of France’s overall emissions.

Italy

The Italian state owns a considerable number of shares – almost one-third – in oil and gas company ENI. According to a recent report by Amnesty International, last year alone ENI reported 349 oil spills in the Niger Delta from its own operations.

The figure is remarkable – almost unbelievable. Each spill triggers a human and ecological crisis. The scale of the devastation and ENI’s failure to safeguard communities and ecosystems begs the question: is this sheer incompetence, recklessness, or simply utter indifference to the welfare of local communities?

Japan

Japan, the next offender on the G7 list, is the number one public financier of coal plants globally among the Organisation for Economic Cooperation and Development (OECD) countries.

Japan has 24 coal-powered projects either under construction or planned, many of them in Indonesia, Vietnam and India, where the more vulnerable local populations live under the cloud of plants’ toxic emissions.

Emissions of deadly sulphur dioxide and nitrogen oxides from coal plants are currently highest in Indonesia, where the planned Batang coal power plant is set to become the largest ever Japanese-financed plant in Southeast Asia.

United States

A report by Oil Change International indicates that the United States government alone provides 5.1 billion dollars in national subsidies to fossil fuel exploration each year – that’s 5.1 billion dollars into seeking out new sources of civilisation-destroying energy sources.

Canada

Likewise, Canada’s expanding oil sector (caused by the growth in dirty tar sands production, known as ‘the biggest industrial project on Earth’) continues to reap the benefits of massive national subsidies.

United Kingdom

The U.K. government spent 300 times more supporting dirty energy overseas than it contributed towards renewable energy projects during its last term.

The 2012-2013 annual report of UK Export Finance, the country’s export credit agency, announced spending on projects such as a 147 million pounds (228 million dollars) guarantee to support oil and gas exploration by Petrobras in Brazil and 15 million pounds (23 million dollars) in guarantees to a loan for a gas power project in the Philippines.

Domestically, the government is prioritising drilling for new oil and gas, which will require huge subsidies. Hailing carbon-emitting gas as a ‘bridge fuel’ towards a cleaner energy system, the government is delaying investment in renewables to push fracking onto a population that vehemently opposes the dash for gas.

Germany

Meanwhile, Germany – the host of the G7 meeting – has been much lauded for its ‘Energiewende’ (‘Energy Revolution’), with a rapidly increasing use of renewable energy compensating for its nuclear phase-out in recent years.

However, German euros still make their way into the dirty energy machine – through sizeable tax exemptions afforded to fossil fuel producers’ exploration activities – allowing such companies to go further and dig deeper to uncover more carbon that needs to stay in the ground.

G7 Must Catch Up

The G7 countries have done the most to cause climate change. According to the Climate Equity Reference Calculator, they are responsible for 70 percent of historical carbon emissions, while hosting only 10 percent of the global population.

A commitment to a phase-out of fossil fuels in eight decades’ time is not a commitment. It is an easy promise for a politician, who probably will not even be in power in the next decade, to make. It is an easy promise for a rich nation, whose citizens are not the most vulnerable, to make.

G7 societies have grown rich by exploiting the human and natural world. They owe an enormous ‘climate debt’ to developing nations – yet they can barely scrape together the money they promised to the developing world via the Green Climate Fund.

Whether it’s an oil spill in Nigeria, a mega-dam in Mozambique or a coal plant in Java, the sources of our publicly-owned dirty energy are always sites of ecological and social devastation.

Access to energy is a right, but it should not come at the cost of other people’s rights – to clean air and drinking water, to land and food sovereignty, and to sustainable societies.

The international movement for climate justice is building, and will keep up pressure on governments to take money out of dirty energy and reinvest it in democratic renewable solutions that benefit everyone.

The global shift towards a just energy transformation has long been under way. Now, it’s snowballing. People from around the world are showing the way and implementing community-owned renewable energy solutions.

There is a hunger for change, despite continued inaction from governments. G7 leaders, take note: you are trailing far behind and have a lot of catching up to do!

Edited by Phil Harris

The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS – Inter Press Service. 

Excerpt:

Driven by solar and wind, world investments in renewable energy leapt in 2014. Photo credit: Jürgen from Sandesneben, Germany/Licensed under CC BY 2.0

By Sean Buchanan
ROME, Mar 31 2015 (IPS)

Driven by solar and wind, world investments in renewable energy reversed a two-year dip last year, brushing aside the challenge from sharply lower oil prices and registering a 17 percent leap over the previous year to stand at 270 billion dollars.

These investments helped see an additional 103Gw of generating capacity – roughly that of all U.S. nuclear plants combined –around the world, making 2014 the best year ever for newly-installed capacity, according to the 9th annual “Global Trends in Renewable Energy Investments” report from the U.N. Environment Programme (UNEP) released Mar. 31.

Prepared by the Frankfurt School-UNEP Collaborating Centre and Bloomberg New Energy Finance, the report says that a continuing sharp decline in technology costs – particularly in solar but also in wind – means that every dollar invested in renewable energy bought significantly more generating capacity in 2014."Climate-friendly energy technologies are now an indispensable component of the global energy mix and their importance will only increase as markets mature, technology prices continue to fall and the need to rein in carbon emissions becomes ever more urgent" – Achim Steiner, Executive Director of UNEP

In what was called “a year of eye-catching steps forward for renewable energy”, the report notes that wind, solar, biomass and waste-to-power, geothermal, small hydro and marine power contributed an estimated 9.1 percent of world electricity generation in 2014, up from 8.5 percent in 2013.

This, says the report, means that the world’s electricity systems emitted 1.3 gigatonnes of CO2 – roughly twice the emissions of the world’s airline industry – less than it would have if that 9.1 percent had been produced by the same fossil-dominated mix generating the other 90.9 percent of world power.

“Once again in 2014, renewables made up nearly half of the net power capacity added worldwide,” said Achim Steiner, Executive Director of UNEP. “These climate-friendly energy technologies are now an indispensable component of the global energy mix and their importance will only increase as markets mature, technology prices continue to fall and the need to rein in carbon emissions becomes ever more urgent.”

China saw by far the biggest renewable energy investments last year – a record 83.3 billion dollars, up 39 percent from 2013. The United States was second at 38.3 billion dollars, up seven percent on the year (although below its all-time high reached in 2011). Third came Japan at 35.7 billion dollars, 10 percent higher than in 2013 and its biggest total ever.

According to the report, a prominent feature of 2014 was the rapid expansion of renewables into new markets in developing countries, where investments jumped 36 percent to 131.3 billion dollars. China with 83.3 billion, Brazil (7.6 billion), India (7.4 billion) and South Africa (5.5 billion) were all in the top 10 investing countries, while more than one billion dollars was invested in Indonesia, Chile, Mexico, Kenya and Turkey.

Although 2014 was said to be a turnaround year for renewables after two years of shrinkage, multiple challenges remain in the form of policy uncertainty, structural issues in the electricity system and even the very nature of wind and solar generation which are dependent on breeze and sunlight.

Another challenge, says the report, is the impact of the more than 50 percent collapse in oil prices in the second half of last year.  However, according to Udo Steffens, President of the Frankfurt School of Finance and Management, the price of oil is only likely to dampen investor confidence in parts of the sector, such as solar in oil-exporting countries and biofuels in most parts of the world.

“Oil and renewables do not directly compete for power investment dollars,” said Steffens. “Wind and solar sectors should be able to carry on flourishing, particularly if they continue to cut costs per MWh. Their long-term story is just more convincing.”

Of greater concern is the erosion of investor confidence caused by increasing uncertainty surrounding government support policies for renewables.

“Europe was the first mover in clean energy, but it is still in a process of restructuring those early support mechanisms,” according to Michael Liebreich, Chairman of the Advisory Board for Bloomberg New Energy Finance. “In the United Kingdom and Germany we are seeing a move away from feed-in tariffs and green certificates, towards reverse auctions and subsidy caps, aimed at capping the cost of the transition to consumers.

“Southern Europe is still almost a no-go area for investors because of retroactive policy changes, most recently those affecting solar farms in Italy. In the United States there is uncertainty over the future of the Production Tax Credit for wind, but costs are now so low that the sector is more insulated than in the past. Meanwhile the rooftop solar sector is becoming unstoppable.”

A media release announcing publication of the UNEP report said that if the positive investment trends of 2014 are to continue, “it is increasingly clear that major electricity market reforms will be needed of the sort that Germany is now attempting with its Energiewende [energy transition].”

The structural challenges to be overcome are not simple,” it added, “but are of the sort that have only arisen because of the very success of renewables and their over two trillion dollars of investment mobilised since 2004.”

Edited by Phil Harris    

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)