Public buildings and businesses, such as this organic vineyard in the town of Ingelheim-Großwinternheim in the western state of Rhineland-Palatinate, have embraced renewable energy in Germany to encourage citizen participation, create local employment, promote the local industry and protect the environment. Credit: Emilio Godoy/IPS
By Emilio Godoy
WÖRRSTADT, Germany, May 24 2018 (IPS)
“It made me angry that a company from outside the region was making money from renewable energy and I wondered why people weren’t getting involved,” says Petra Gruner-Bauer, president of the German co-operative SolixEnergie.
So Gruner-Bauer, founder of the organisation, began to raise awareness among her neighbours in Wörrstadt, a city in the western state of Rhineland-Palatinate, about what a co-operative was, the importance of citizen participation and community benefits.
“I wrote down on a piece of paper the things that needed to be changed and tried to convince people, and they got involved. It’s the power of people. We are at the same time members and entrepreneurs, we focus on making sure that each person receives renewable energy,” she told IPS in an interview.
The cooperative, which has 116 members, was set up in 2011 and has already developed two solar panel projects and a wind farm, generating more than seven million kilowatt-hours a year, benefiting 5,000 people in a town of 30,000.
To become a co-op member, the minimum investment is 1,022 dollars, and this year the rate of return on capital is less than one percent.
This co-operative is one of 42 of its kind operating in the energy sector in Rhineland-Palatinate, a state that has been a pioneer in the development of alternative renewable energy sources in Germany, generating 10,000 jobs. Nearly 50 percent of the region’s energy supply is based on renewable sources.
At a national level, energy co-operatives currently comprise 900,200 members, with an investment of some 1.83 billion dollars.
In 2016, German individuals and co-operatives owned 31.5 percent of the renewable energy facilities, making it the segment that receives the most investment in the energy sector, according to a study published in February by the German consulting firm Renewable Energies Agency.
German co-operatives have been instrumental in the progress made towards the country’s energy transition by fostering citizen empowerment, producing energy locally, providinga source of socio-economic wellbeing and reducing polluting emissions.
Of the basket of alternative energies, 36 percent of electricity generation comes from renewable sources, such as wind power, biomass, solar, hydroelectric and waste.
The energy transition, through a gradual replacement of fossil fuels with environmentally friendly alternatives, is part of the mechanisms established at the global level to contain global warming.
“Energy co-operatives are a very safe and easy way to participate in the energy transition, investing little money. They are highly decentralised, they help strengthen the local value chain, encourage public support for the transition and unleash financial potential,” Verena Ruppert, president of the Network of Citizen Energy Co-operatives of the State of Rhineland-Palatinate, told IPS.
This network brings together 24 members, 22 of which are energy co-operatives, which in turn comprise 5,000 individuals and more than 200 businesses, communities and religious organisations. The members of the co-operatives have invested some 85 million dollars in solar roofs, wind farms, biogas plants and residential retrofit projects.
Based on wind and solar energy, Germany is moving towards a future based on alternative energy sources, such as with this private wind farm in the city of Wörrstadt, in the state of Rhineland-Palatinate. Credit: Emilio Godoy/IPS
These energy cooperatives have a favourable environment in Germany, which facilitates their leadership in this field, as is also the case in Australia, Denmark and the United States, leading models in the industry.
Hurdles faced in Latin America
In contrast to Germany, in Latin America these co-operatives have not taken off, except in a minority of countries, despite the benefits they offer.
In countries such as Mexico, Peru and Venezuela, laws related to co-operatives recognise their role in various sectors, such as energy, but electricity regulations create barriers blocking their development.
The legislation does facilitate a role for co-operatives in countries such as Argentina and the Dominican Republic, while Bolivia, Colombia and Costa Rica also have regulations aimed at promoting such participation.
In Argentina, a country of 44 million people, energy co-operatives date back to the 1990s and already cover 16 percent of the domestic market, with some 500 electric co-operatives comprising more than one million members, according to figures from the Buenos Aires Federation of Electric and Public Services Co-operatives.
In 2016, the government of the northern province of Santa Fe created the Prosumidores– a play on words combining “producers” and “consumers” -Programme, which finances citizens who go from being mere consumers to also becoming producers who generate electricity and sell their surplus to the grid.
Brazil, for its part, has provided financial incentives since 2016 for distributed (decentralised) small-scale solar energy systems to enable individuals and businesses to generate their own electricity.
Costa Rica has also promoted this model, with four co-operatives accounting for nine percent of national power distribution and six percent of Costa Rica’s electricity generation.
This is highlighted in a report published in September 2017, “Renewable Energy Tenders and Community [Em]power[ment]: Latin America and the Caribbean“, prepared by the international Renewable Energy Policy Network for the 21st Century (Ren21).
These Costa Rican entities generate some 400 megawatts – mainly from hydroelectric power plants and a small volume of wind power -, comprise more than 200,000 members, provide electricity to some 400,000 customers and employ almost 2,000 workers.
Since 2015, Chile has also been promoting participatory generation through the government’s Energy Commune programme, which seeks to promote efficiency through the use of local renewable energies and for which it has created a community fund.
So far, the initiative manages eight projects in six municipalities and has organised two calls for proposals for more than 112 million dollars for the benefit of 34 communities.
The German transformation formally started in 2011, based on six laws that favour alternative generation through a surcharge for producers, the expansion of the electricity grid to encourage the incorporation of renewables and cogeneration to take advantage of energy wasted in fossil fuel facilities.
The reform of the Renewable Energy Law, in force since January 2017, set a fixed rate for the sector – fundamental for the progress made in renewables – and created auctions for all sources.
The changes reward those who generate electricity at a lower cost, impose generation caps, and limit the setting of fixed tariffs only for cooperatives and small producers.
But in Latin America, community energy ventures face legal, technical and financial barriers.
In Mexico, the Electricity Industry Law, in effect since 2014, makes it possible to launch local projects generating less than one megawatt, but virtually excludes them from the electricity auctions that the government has held since 2016.
At least 12 countries in the region organise renewable energy auctions that, because of their financial, technical and business requirements, exclude cooperatives, preventing them from further expansion.
That’s not the case in Germany, where they are now aiming for a new stage.
“The transition needs heating and transportation. We don’t want to focus only on power generation, but also on environmental protection,” said Gruner-Bauer, whose organisation is now moving into electric car sharing to reduce use of private vehicles.
Ruppert said they can cooperate with Latin American organisations. “But it’s a decision of the board of directors. We can help, but first we need to know the needs of co-operatives,” he said.
The REN21 report recommends reserving a quota for participatory citizen projects and facilitating access to energy purchase agreements, which ensures the efficiency of tenders and the effectiveness of fixed rates for these projects.
In addition, it proposes the establishment of an authority for citizen projects, capacity-building, promotion of community-based energy projects, and the establishment of specific national energy targets for these undertakings.
This article was made possible by CLEW 2018.
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By WAM
VIENNA, May 24 2018 (WAM)
The UAE’s Federal Authority for Nuclear Regulation, FANR, signed today a Memorandum of Understanding with China’s Nuclear Safety Administration, NNSA, on the cooperation and exchange of information in nuclear safety regulation.
The MoU was signed on the margins of the 6th Review Meeting of the contracting parties to the joint convention on the Safety of Spent Fuel Management and on the Safety of Radioactive Waste Management, that is being held in Vienna, Austria from 21st May to 1st June 2018.
The signed MoU establishes a platform of cooperation between the two nuclear regulators to exchange technical information, cooperate in nuclear safety regulation as well as provide training opportunities for FANR’s employees to be trained at the NNSA’s facilities.
The signed MoU establishes a platform of cooperation between the two nuclear regulators to exchange technical information, cooperate in nuclear safety regulation as well as provide training opportunities for FANR’s employees to be trained at the NNSA’s facilities.
Hamad Ali Al-Ka’abi, Permanent Representative of the UAE to the International Atomic Energy Agency, IAEA, and Deputy Chairman of FANR’s Board of Management , and Liu Hua, Administrator of NNSA signed the five-year agreement.
“Cooperating with international organisations and advanced countries in the area of nuclear regulation is essential for any nuclear safety regulator. Such cooperation supports FANR’s efforts as the UAE’s nuclear regulator to share experience and continuously enhance its performance. Also, it supports its efforts to build sustainability of the regulatory infrastructure in the UAE,” said Al Kaabi.
Internationally, FANR has over 19 international agreements and MoUs signed with international organisations and regulatory authorities of other countries to build national capacities, exchange of knowledge and information.
NNSA, is China’s government agency that was established in 1984 to conduct independent and an objective nuclear safety supervision of civilian nuclear facilities in China and regulate nuclear safety. China has 38 nuclear reactors that are in operation and 18 under construction.
WAM/Rasha Abubaker/Esraa Ismail
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The Interactive Map report gives an overview on the current stakeholder landscape on human trafficking. Photo: Modernslaverymap.org
By International Organization for Migration
LONDON, May 23 2018 (IOM)
The Interactive Map for Business of Anti-Human Trafficking Initiatives and Organisations was launched yesterday (22/05) at the British Telecom Centre in London.
IOM, the UN Migration Agency, as part of the RESPECT Initiative, joined the Global Business Coalition Against Trafficking (GBCAT), and the United Nations Global Compact through its Action Platform on Decent Work in Global Supply Chains organizations in launching this platform.
The Map is designed as a knowledge-sharing hub for countering human trafficking and will provide companies and other stakeholders with a global list of initiatives that can help them combat this abuse in their operations and supply chains.
IOM has an ongoing relationship with private sector leaders to address human trafficking. In 2017, the Organization partnered with the Global Initiative against transnational organized crime (GI) and Babson College’s Initiative on Human Trafficking and Modern Slavery to form the Responsible and Ethical Private Sector Coalition against Trafficking (RESPECT).
The launch event included a keynote speech by Baroness Philippa Stroud. IOM was represented by Sarah Di Giglio, IOM UK.
“In our globalized economy, the demand for cheap labour and services is what is driving human trafficking. Yet, the responsibility of the industries and consumers demanding cheap labour and cheap goods often goes unrecognized,” said Di Giglio. “Until we, the global community, address this demand and recognize that goods are sold cheaply because of the exploitation of workers including migrant workers, our efforts to end human trafficking will be wholly inadequate,” she added.
As a unified resource of information, the Interactive Map includes a repository of best practices and a stakeholder mapping report to serve as a primary resource for businesses engaged in combating human trafficking and forced labour.
Since 1994, IOM has worked extensively to combat human trafficking. For the past 14 years, the Organization has implemented more than 2,600 projects in over 150 countries and has assisted tens of thousands of trafficked persons.
To learn more about the Interactive Map, please visit: http://www.spumma.com/modernslaverymap/
For more information, please contact Jorge Galindo, IOM HQ, Tel: +41227179205, Email: jgalindo@iom.int
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St. Vincent and the Grenadines has installed 750 kilowatt hours of photovoltaic panels, which it says reduced its carbon emissions by 800 tonnes annually. Credit: Kenton X. Chance/IPS
By Friday Phiri
PEMBA, Zambia, May 23 2018 (IPS)
Climate finance has never been more urgently needed, with massive investments in climate action required to meet the goals of the Paris Agreement and avoid the devastating effects of a warmer planet.
However, it is an open secret that public financing mechanisms alone are not enough to meet the demand for climate finance, especially for developing countries whose cost to implement their conditional Nationally Determined Contributions (NDCs) and transition to low-carbon economies is pegged at 4.3 trillion dollars.Scaling up and accelerating innovative approaches to climate finance from multiple sources, including the private sector, has emerged as a key strategy to meet the goals of the Paris Agreement.
This is a huge price-tag when compared to the Green Climate Fund (GCF’s) current coffers, which are still being counted in billion terms. The GCF is one of the designated UNFCCC financial instruments created at COP 17 in Durban, South Africa.
Therefore, scaling up and accelerating innovative approaches to climate finance from multiple sources, including the private sector, has emerged as a key strategy to meet the goals of the Paris Agreement through long-term and predictable climate-smart investments.
It is for this reason that the World Bank and partners has been organising platforms in which ways of leveraging public resources with private sector financing are discussed.
One such platform is the Innovate4Climate, launched in 2017 in Barcelona. It serves as an integral part of the global dialogue on climate finance, sustainable development, carbon pricing and markets.
This year’s event, set for Frankfurt from 22-24 May, with four thematic areas, convenes global leaders from industry, government and multilateral agencies for a one-day Summit, workshops and a Marketplace, to work and dialogue on development of innovative financing instruments and approaches to support low-carbon, climate-resilient development pathways.
The Business Case for Climate Investment
Under this pillar, the focus is on the important role of the private sector to fight climate change. It explores climate-related business opportunities such as how to create markets for climate investments, and which approaches are effective in de-risking investment opportunities.
At the meeting, this stream is set to showcase sustainability and climate-resilient initiatives of business associations and industries, present models of collaboration and partnerships between public and private sector, as well as analyse trends and new initiatives in mobilizing development/climate finance, to match developing country investment needs with private sector capital.
A classic example under this theme is the GCF blended model—the use of four financial instruments: concessional loans, equity, grants, and guarantees that can be used through different modalities and at various stages of the financing cycle. Debt and equity instruments help close a specific financing gap for specific projects and programmes, thus bringing more projects and programmes to fruition, while guarantees help to crowd in new private sector financing from multilateral development banks, national development banks, and others.
“We are starting to see it already with the GCF,” says Fenella Aouane, Global Green Growth Institute (GGGI’s) Principal Climate Finance Specialist. “They put out the 500-million-dollar private sector facility…they have gone into the market for the entirety of the private sector globally, they put out a call for proposals to spend up to 500 million. Now relate that to the fact that in a single board meeting in February, they approved projects worth 1 billion.”
NDC Implementation—policies and finance
Another central theme of the Innovate4Climate conference this year is focusing on improving access to finance and support for capacity building to successfully implement countries’ NDCs. This stream targets initiatives aiming at getting “further-faster-together” for NDCs implementation.
The key questions revolve around how to improve access to available funding and mobilize new sources, to strengthen climate finance readiness and accelerate disbursement of climate finance, how to increase and sustain ambitions, and ensure accountability and how to reduce transaction costs through standardisation and simplifying processes.
Innovation for Climate Resilience
Technology is a crucial component of the Paris Agreement’s means of implementation pillar. There is no question that innovative technologies and financial instruments are changing the narrative of climate change resilience. Thus, this stream presents achievements and models in climate smart agriculture, climate action in cities, and disaster risk management among others.
And in relation to the theme of technology, Tony Simon, Director General of the World Agroforestry Centre (ICRAF), recently emphasised the importance of adopting locally-relevant options that enhance agricultural productivity, for example, in relation to climate change adaptation and mitigation through exploring innovative finance instruments.
“Explore innovative finance instruments,” said Simon at the UNFCCC organized first regional Talanoa which was part of the Africa Climate Week, held in Nairobi in April 2018. “Private equity offers a huge amount of money. Use the money from CTCN and other sources to pull in other funds and use that as an opportunity to blend financing for climate change initiatives.”
Climate Market and Metrics
Under this theme, the focus is on the contribution of market-based approaches to efficient and cost-effective climate change mitigation. Delegates will discuss current and future trends around practical outcomes of international negotiations on Article 6 (voluntary cooperation on mitigation and adaptation actions). The theme also seeks to understand what can be expected from aviation and shipping.
“One area where forestry hopes the private sector may be interested is—the airline industry is currently trying to decide how it will offset its emissions as an industry and one way that might do this is through the purchase of carbon offsetting assets so that could be forestry in the form of some level of carbon credit,” GGGI’s Fenella told IPS. “If they do this, then there will be a possible clear return for investors.”
While the Innovate4Climate conference gets underway in Frankfurt next week, it seems the private sector approach by GGGI is already paying dividends. According to its 2017 Annual report, GGGI helped mobilize over half a billion dollars for green investments that aim to support developing countries and emerging economies transition toward environmentally sustainable and socially inclusive economic growth.
It contributed to the mobilization of 524.6 million dollars in green investments in Ethiopia, India, Indonesia, Rwanda and other countries in which the Seoul-based international organization operates.
“This is a record achievement for GGGI, representing more than 11 times the organization’s actual budget in 2017,” said Dr. Frank Rijsberman, GGGI Director-General. “Working closely with partner countries over the years to develop and implement policies that enable the environment to for green growth investment, GGGI is now demonstrating its growing capacity to access and mobilize finance for projects that deliver strong impact.”
With GGGI technical support to design and de-risk bankable projects, of the total amount mobilized, 412 million came from the private sector.
And just to highlight some countries in Africa, in Ethiopia, GGGI produced a pipeline of projects for the Mekelle City Water Project that helped attract 337 million dollars from the international private sector, while in Rwanda, GGGI catalyzed a 60-million investment from the private sector for a Cactus Green Park Development Project in Kigali, to support Rwanda’s secondary cities program.
Role of Multilateral Banks
The discussion on green economic growth and the increasing need for private sector climate financing cannot be complete without mentioning the role of multilateral banks. According to the World Bank, concessional climate finance is one critical strategy under this pillar, to support developing countries to build resilience to worsening climate impacts and to catalyzing private sector climate investment. Through this approach, collectively, the Multilateral Development Banks (MDBs) increased their climate financing in developing countries and emerging economies to 27.4 billion dollars in 2016 – including more than 11 billion from the WBG.
From an African perspective, the African Development Bank (AfDB) has been instrumental to the green growth discourse and the need for African countries not to follow the fossil fuel development pathway.
And in its efforts to foster a green growth economic pathway, in 2014, the AfDB released the first-ever Green Growth Framework—to function as a foundational reference document for its work on green growth. The bank was therefore instrumental in the formulation of Africa Renewable Energy Initiative (AREI).
The initiative, which came out of COP21 and subsequently approved by the African Union, aims at delivering 300GW of renewable energy by 2030.
The AfDB also played a key role in de-risking one of Africa’s gigantic multi-billion-dollar solar power investment in Ouarzazate, Morocco, an example of a green growth economic model, which requires multi-million-dollar investments that cannot be done by public financing alone.
Mustapha Bakkaoury, president of the Moroccan Agency for Solar Energy (MASEN), told delegates at COP 22 that his country’s renewable energy revolution would not have been possible if multilateral partners such as the AfDB had not come on board to act as a guarantor for financing of the project.
About the Global Green Growth Institute (GGGI)
Based in Seoul, GGGI is an intergovernmental organization that supports developing country governments transition to a model of economic growth that is environmentally sustainable and socially inclusive.
GGGI delivers programs in 27 partner countries with technical support, capacity building, policy planning & implementation, and by helping to build a pipeline of bankable green investment projects.
More on GGGI’s events, projects and publications can be found on www.gggi.org.
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