Climate change has been a constant reality for many Filipinos, with impacts ranging from extreme weather events to periodic droughts and food scarcity. The most affected populations are coastal residents and rural communities that lack proper disaster preparedness.

Tacloban City after Typhoon Haiyan. Credit: The Guardian

According to the Center for Global Development, the Philippines is the world’s fourth most vulnerable country to the direct impacts of extreme weather events. Averaging 20 tropical cyclones a year, it may be the world’s most storm-exposed nation. Last November, Supertyphoon Haiyan, the most intense tropical cyclone ever recorded, claimed more than 10,000 lives, affected over 9 million people, and left over 600,000 Filipinos homeless. With both the oceans and the atmosphere warming, there is broad scientific consensus that typhoons are now increasing in strength.

Like most developing countries, the Philippines plays a minor role in global carbon emissions yet suffers an inordinately higher cost. With over a third of its population living in poverty, the country emits just 0.9 metric tons of carbon per capita, compared to the United States’ 17.6 metric tons. “We lose 5% of our economy every year to storms,” observes Philippine Climate Change Commissioner Naderev Sano. The reconstruction costs of Haiyan alone are estimated at $5.8 billion.

As the Philippines embarks on a long road to recovery, sustainability is key for post-Haiyan rebuilding. “We must build back better and more resilient communities,” says Senator Loren Legarda, chair of the Philippines’ Senate Committee on Climate Change, who was named a Regional Champion by the United Nations Office for Disaster Risk Reduction. “We must prevent disasters and be prepared for the next natural hazards. This disaster also tells us about the urgent need to save and care for our environment.”

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Climate Change, emissions reductions, energy, low-carbon, philippines, renewable energy, sustainable development, Typhoon Haiyan

Globally, new investment in renewable energy fell 11 percent in 2012. But in Latin America and the Caribbean (not including Brazil), it grew at a remarkable rate of 127 percent, totaling US$4.6 billion. This was the opening context for the 3rd Annual Renewable Energy Finance Forum for Latin America and the Caribbean (REFF-LAC), held this week in Miami, Florida. The yearly event, coordinated by Euromoney Energy Events, the American Council on Renewable Energy (ACORE) and the Latin America and Caribbean Council on Renewable Energy (LAC-CORE), aims to connect developers and investors who can continue fostering the strong investment climate for renewables that is happening in the region.

LAC-CORE president, Carlos St. James, speaking at the 3rd Annual REFF-LAC conference. (Photo credit: Mark Konold)

Presenters included project developers, financiers, and government officials, all of whom had experiences to share about what’s working in the region. In some places, like Chile and Peru, project tendering is working to advance renewable energy deployment. In the Caribbean, mechanisms such as net metering and feed-in tariffs are still the preferred approach to fostering renewables development. Many presenters stressed that the key to continued success in the region is the political will that creates an environment conducive to successful renewable energy investment. They also highlighted how projects become more attractive the less they have to rely on subsidies or other support mechanisms.

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Caribbean, Central America, developing countries, energy, energy efficiency, energy security, finance, renewable energy, renewable energy finance, sustainable development

In the first two months of 2013, there were only 58 requests (according to the United Nations Framework Convention on Climate Change, UNFCCC) to register  Clean Development Mechanism (CDM) projects in the world, compared to 280 requests in January and February 2012. CDM is one of the three flexible mechanisms defined in the Kyoto Protocol that provides for emissions reduction projects with Certified Emission Reduction (CER) units, essentially credits that can be traded in emissions trading schemes. Developed countries can fulfill their commitments to reduce emissions by buying CERs from developing countries, which, in turn, achieve sustainable development by building emissions reduction projects.

The CDM provides a solution for financing low carbon projects in developing countries, as CDM projects can derive revenue from two sources: operational revenue, such as selling electricity or decomposition product, and selling the CERs from the project to Annex I (industrialized) countries under the Kyoto Protocol. For example, a wind power plant can sell its generated electricity to domestic grid companies while gaining extra income from selling CERs after achieving a certain amount of CO2 emission reductions.

However, as shown by the lack of new CDM projects, the mechanism is failing. Due to oversupply of CERs, the price for each unit is falling rapidly. Two years ago, the CER price was above €12/ton of carbon dioxide equivalent (tCO2e) (US$15.46/tCO2e). At present, it is less than €0.5/tCO2e (US$0.64/tCO2e) (See Figure 1).

China is especially hard hit as it dominates the CDM market with the largest investment of CDM projects in the world ($220 billion, or 61.8 percent of total registered CDM projects globally). These Chinese CDM projects have supplied 738 million CERs, or 61.2 percent of all 1,200 million CERs issued from 2005 to present.

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Carbon Markets, China, Climate Change, emissions reductions, emissions trading, green economy, low-carbon, sustainable development

By Cinthya Alfaro Zúñiga

As a native Costa Rican and Worldwatch Institute/INCAE Research Fellow, I was excited to attend the Energy and Environment Partnership’s (EEP) 21st Regional Forum in my home country earlier this month. EEP’s primary objective is providing finance for renewable energy projects, but it also seeks to build capacity by exploring diverse topics such as different energy technologies, policies needed for successful implementation, and regional obstacles and opportunities through stakeholder dialogues.

Worldwatch and INCAE presented Phase 1 of "The Way Forward for Renewable Energy in Central America" in Costa Rica in March.

Under the title “Biogas and Energy Efficiency in Central America,” the most recent Forum convened a group of 200 experts, project developers, governmental representatives, financiers, and the general public. The speakers addressed topics such as the contribution of energy efficiency policies and renewable energy toward carbon emissions reductions. Other important themes included the status of biogas and energy efficiency in Central America, as well as a run-through of EEP energy efficiency and biogas projects in the region.

The three-day event featured speakers from the German Cooperation Agency (GIZ), the Costa Rican Electricity Institute (ICE), the Economic Commission for Latin America and the Caribbean (ECLAC), the Central American Bank for Economic Integration (CABEI), and the Worldwatch Institute, among others.

On behalf of Worldwatch, President Emeritus Christopher Flavin presented on the global status of renewable energy and Climate & Energy Director Alexander Ochs summarized the results from the first phase of the Worldwatch/INCAE project, “The Way Forward for Renewable Energy in Central America,” which applies the Institute’s sustainable energy roadmap methodology to the region. Dr. Ana María Majano, Associate Director of the INCAE Business School’s Latin American Center for Competitiveness and Sustainable Development (CLACDS), joined Ochs as the lead in-country implementation partner.    

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Central America, development, electricity, emissions reductions, energy, energy efficiency, energy policy, renewable energy, sustainable development

With Chavez gone, what will become of his PetroCaribe program? Photo credit: Valter Campanato, Agencia Brasil

Among the questions arising after the death of Venezuelan leader Hugo Chavez is what will become of the PetroCaribe program he started in 2005 and upon which many Caribbean economies have become dependent. Since it began, PetroCaribe has become a much-needed lifeline to countries in the region that are overly reliant on fossil fuel imports to supply their energy and transportation sectors. However, it has also increased the unsustainable debt levels of these countries. What comes next is uncertain as Venezuela prepares to elect Chavez’ successor as president of Venezuela next month.

Chavez started PetroCaribe with the aim of helping neighboring countries bear the burden of oil dependence at a time when oil prices began to rise sharply. Touted on its Web site as a “shield against misery,” the program allows participating Caribbean countries to purchase Venezuelan oil under preferential conditions. At the outset, 50 percent of the payment was due within 90 days with the remainder being financed over an extended period, sometimes up to as long as 25 years. The interest charged on the balance was at 2 percent but fell to 1 percent once oil surpassed US$40 per barrel.

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Caribbean, Caribbean Sustainable Energy, Climate Change, Dominican Republic, fossil fuels, Haiti, Jamaica, Low-Carbon Development, renewable energy, south america, sustainable development, Sustainable Energy Roadmaps, Venezuela

The DR’s National Energy Commission leads by example using Net Metering to reduce monthly bills. This solution also provides surplus renewable energy to the grid, reducing the country’s total amount of fossil fuel-based energy.

Since October 2012, the energy sector in the Dominican Republic has been in the spotlight as a result of President Danilo Medina’s efforts to deal with the country’s larger fiscal crisis. Over the years, decisions made within the sector have led to an unsustainable level of debt, poorly maintained infrastructure, and a reliance on fossil fuels that, in 2010, cost the government US$2.6 billion.

With all of this attention, the opportunity exists to overhaul the floundering electricity sector and bring it in line with the country’s vision of a sustainable future. The Dominican Republic has a stated goal of obtaining 25 percent of its energy from renewable sources by 2025. And at the recent United Nations climate talks in Doha, Qatar, Mr. Omar Ramirez, Executive Vice-President of the Dominican National Council for Climate Change and the Clean Development Mechanism (CNCCMDL), said the country will reduce its carbon emissions 25 percent from 2012 levels by 2030.

These are ambitious targets for a country that relies on fossil fuels for more than 90 percent of its primary energy. But they can be achieved if decision makers seize this moment and embrace new thinking. It will not be enough to just add more generating capacity to the mix. Real reform will come when subsidies not longer hide the true cost of fossil fuel use, when renewable energy promotion is prioritized, and when energy sector agencies are structured in a way that provides transparency and accountability and is in line with stated long-term energy goals.

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Caribbean, Climate Change, developing countries, Dominican Republic, electricity, emissions reductions, energy policy, energy security, renewable energy, sustainable development

There is ample reason to praise President Obama’s engagement with a diverse collection of world leaders; in particular, the administration’s “pivot to Asia” indicates recognition of an evolving geopolitical landscape, a recognition that will hopefully continue in his second term. But one region in particular has been noticeably absent from the administration’s agenda: sub-Saharan Africa. And this oversight could have long-term implications for the energy future of the sub-Saharan African region, and even the economic future of the United States.

No region suffers from energy poverty more than sub-Saharan Africa, where nearly seven out of ten people lack access to reliable and affordable electricity.

Sub-Saharan Africa is a region full of contradictions. On the one hand, it is home to six of the ten fastest growing economies between 2001 and 2010; on the other, 14 of the 20 states Foreign Policy’s Failed State Index deems “critical” are located in sub-Saharan Africa. Throughout the region, one of the largest obstacles towards widespread and equitable economic development is the crippling degree of energy poverty. The most recent data suggests that a lack of access to reliable and affordable electricity leaves nearly 70 percent of sub-Saharan Africans in the dark every day.

With the re-election of President Obama, the time is ripe for the administration to realize that, for all of the region’s struggles, reaching out to sub-Saharan Africa is within the United States’ self-interest. Prioritizing the alleviation of energy poverty is one way to strengthen efforts to improve the quality of education, reduce illness and disease, boost incomes across the region, and also to lay the groundwork for budding economic partnerships. 

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Africa, Brazil, China, renewable energy, renewable energy investment, sustainable development, United States

Despite its small size and population, Belize is one of the most culturally, ethnically, and linguistically diverse countries in Central America. As a member of the Caribbean Community (CARICOM) as well as the Central American Integration System (SICA), it is the only Central American country with strong ties to both the Caribbean and Latin America. In the initial phase of our project in the region, the Worldwatch Institute is assessing the existing barriers to and opportunities for a socially, environmentally, and economically sustainable energy system in Belize—an outcome that could connect these two neighboring yet culturally distinct communities and provide tangible benefits to both.

Source: Public Utilities Commission of Belize

With a population of only 350,000 and a national economy of US$1.5 billion in 2011, Belize does not consume large amounts of energy. Peak electricity demand in 2010 was 80.6 megawatts (MW), well below the U.S. state of Vermont’s peak energy demand of 953 MW in 2011. Belize’s low energy consumption makes it a suitable location for further development of clean, indigenous energy sources.

Currently, Belize depends heavily on foreign energy sources. In 2010, the country imported more than a third of its electricity from the Mexican power provider, Comisión Federal de Electricidad. In addition, Belize spent approximately $129 million, or 18.2 percent of its total import expenditures, on imported fuels. Not only has this raised energy prices for consumers, but if Belize continues to rely largely on imports to meet its energy demand, it will be highly susceptible to fluctuations on the international market. The Belizean government must explore other, local energy resources to strengthen and stabilize the country’s energy sector.

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Belize, Caribbean, Central America, developing countries, development, energy, low-carbon, renewable energy, sustainable development

In sub-Saharan Africa, seven out of ten people lack reliable access to electricy. Energy poverty reduces the      quality of education, contributes to illness and disease, and severely hinders economic growth. Building a clean-energy future is a crucial first step to sustainable development. On a national level, unreliable energy systems cost economies one to two percent of their growth potential annually due to outages and the inefficient usage of already scarce resources. On an individual level, a lack of electricity makes it more difficult to increase literacy rates and expand access to clean cooking fuels.

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Energy officials in Rwanda and Nigeria – two countries that have demonstrated remarkable economic growth in recent years, but still rely heavily upon expensive and dirty fossil fuels – have expressed interest in bringing Worldwatch’s Sustainable Energy Roadmaps to their own countries. Investment in renewable energy and efficient electricity delivery systems will help these countries reduce their dependence on fossil fuels, give marginalized people access to modern energy services, reduce electricity prices, create jobs, and improve health and education services.

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developing countries, development, electricity, energy, Energy Access, energy poverty, Nigeria, Rwanda, sub-Saharan Africa, sustainable development

By Wenna Wang and Haibing Ma

Source: EIA | Distribution of China's shale gas basins.

On June 27th, 5 shares of shale gas reached their daily limits at Shanghai Composite Index, the largest stock market in China, lifting the whole Oil & Gas sector above the otherwise decreasing Chinese stock market. This was stimulated by a signal from the nation’s Ministry of Land and Resources: the second round of shale gas exploration rights is expected to open for bidding in September, and this time it will be open to private investors.

Shale gas, which is natural gas found in hydrocarbon rich shale formations, is one of the most important unconventional sources of natural gas and represents a rapidly expanding trend in onshore gas exploration and production today. The deposits are mainly extracted through hydraulic fracturing and horizontal drilling. Though it is not an ideal alternative to conventional energy sources, shale gas can be a key to energy independence and a lower carbon footprint, since it produces 43 percent and 30 percent less carbon dioxide emissions than coal and oil per thermal unit produced, respectively. However, not everything about shale gas is an improvement, as its extraction process may contaminate ground water and release volatile compounds into the soil, while the use of shale gas will still lead to greenhouse gas (GHG) emissions. The main mining techniques used for extraction, horizontal drilling and hydraulic fracturing, have been linked to various problems like water shortages, groundwater contamination, methane gas seeps, micro-earthquakes and coal fires. Sample surveys show that methane concentrations were 17-times higher on average (19.2 mg/L) in shallow wells located in active drilling and extraction areas than in wells located in non-active areas (1.1 mg/L on average). In addition, there are studies showing properties with shale gas wells were valued down due to the fracturing.

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12th Five-Year Plan, China, Climate Change, energy demand, green house gases, low-carbon, renewable energy, shale gas, sustainable development