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More than 60 Asian CSOs call on ADB to clarify details of its coal retirement mechanism

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The Asian Development Bank (ADB) must delay soliciting financial support for its coal buy-out scheme in Southeast Asia at COP26 until it has addressed a number of practical concerns about this proposal, including the risk it could undermine an ambitious, swift, and just transition from coal in targeted areas, an alliance of non-governmental organizations from across Asia said on Monday.

On November 3, the ADB plans to launch its  Energy Transition Mechanism (ETM), a private-sector led initiative to retire existing coal power plants early, starting with a pilot phase in the Philippines, Indonesia, and Vietnam. In an open letter to ADB management and board members, major donor governments and supporters of the initiative including Prudential, SE4All, Rockefeller Foundation and Bezos Fund, more than 60 civil society organizations instead demanded ADB to forego the announcement.

The CSO signatories, almost all of which are from the Asia region, are insistent that injustices wrought on communities by coal power projects come to an end as soon as possible, but they point out that there are no assurances the ADB’s ETM will actually shorten rather than prolong the lifespan of coal facilities. It’s also unclear that it will hasten the transition to renewables and protect end-users from exposure to increased costs of power. Power plants in the target countries are not subject to market pressures and thus any buy-outs will have to contend with state support and opaque power purchase agreements.  Analysis from the Institute for Energy Economics and Financial Analysis suggests that, if designed poorly, such a scheme could actually create direct or indirect incentives for coal-fired power plant operators to prolong the operations.

Meanwhile, civil society and community stakeholders from these countries have yet to be informed of the details of the ETM in their own languages, to have opportunities to be consulted, seek clarity, and provide input. “We urge ADB not to gamble with our climate survival and the possibility of ending coal in a swift, just, and genuinely transformative manner with a premature buy-out scheme that remains shrouded in uncertainty,” the letter says.

The main concerns include:

  • A lack of clarity as to why the estimated timeline for winding down coal-fired power plants operating under the ETM may be up to 15 years, subjecting people to years more of unreliable, inefficient, and polluting coal-fired power, while cheaper renewable energy sources that could have come online would be left untapped;
  • No assurances that capacities lost to early retirement of coal plants will be replaced by renewable energy sources (as there are no explicit safeguards to avoid a corresponding expansion in infrastructure for fossil gas-fired power);
  • A lack of clarity in relation to how the ETM would avoid overpaying – or creating incentives for – operators of older plants to extend their planned lifespan in the expectation of receiving finance;
  • The involvement – or potential involvement – in the scheme of financiers and developers implicated in the build out of the coal fleet elsewhere in the region or even the same countries;
  • Whether electricity end-users will be forced to shoulder additional costs; and
  • The severe lack of opportunities provided to date for communities and civil society and people’s organizations to engage with the ADB’s processes of formulating the ETM.

Gerry Arances, executive director of Center for Energy, Ecology and Development (CEED) in the Philippines, said: “While it could be a step in the right direction to free developing nations from the clutches of coal, the ETM as it stands gives no assurance that it will actually shorten the life of coal-fired power plants. The ADB has not even provided adequate consultation with civil society over issues such as whether electricity users will bear the costs of bailing out coal plant operators.”

The ADB acknowledges some of the constraints on the ETM in its project-related documents but has yet to address the overarching questions underpinning their approach raised by civil society groups. Rushing to drum up support in time for COP26 risks making the mechanism as it stands a “fait accompli” in the eyes of the world climate community, argue the CSOs. They contend that given the ADB’s legacy of investing in coal and other fossil fuel reliant infrastructure, it is time for the Bank to ‘consign coal to history’ — but in a manner that is “transparent, genuinely transformative, aligned to climate imperatives” and prioritizes access to clean, affordable, and sustainable energy in the communities of the Bank’s borrowing member countries.

Tanya Lee Roberts-Davis, Energy Campaigns Strategist, NGO Forum on ADB stated:Given the legacy of the ADB’s past and ongoing support for coal projects, it is most certainly incumbent upon the Bank to shift priorities towards supporting a just and inclusive energy transition in coal-affected regions of borrowing member countries.

However, it is far from clear how the ADB’s planned coal buy-out schemes — which are geared towards private sector buy-in — will not put profit margins above the needs of communities already ravaged by the devastating impacts of such toxic power facilities. There is no indication whatsoever how their ETM model will avert sidelining the rights of communities in the targetted areas for redress of the harm and damage inflicted,  or avoid undermining collective aspirations for a truly transformative energy transition, grounded in land, water, gender, and socio-economic justice. This is most especially the case if the coal ‘retirement’ phase ends up being drawn out over several years, or if ‘alternative’ sources of power are to be derived from no less resource-intensive, extractivist models, such as fossil gas, waste to energy incinerators and large scale hydropower dams. Why hastily leap into this coal transition initiative that remains full of risky burdens to both people and the environment? There are so many other ways the ADB should be deploying its limited financing so that it can genuinely contribute towards supporting locally relevant, just energy transitions scaled to meet the needs of communities, fully accountable to — and in control — of the public.

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UNIDO and the Alliance to End Plastic Waste partner to scale circular solutions to plastic waste

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A cooperation framework for jointly tackling global plastic waste using circular economy approaches was signed today by LI Yong, Director-General of the United Nations Industrial Development Organization (UNIDO), and Jacob Duer, President and CEO of the Alliance to End Plastic Waste (Alliance).

Through the partnership, UNIDO and the Alliance aim to develop, implement and scale projects and programmes to advance plastics circularity. The collaboration will also help to facilitate knowledge sharing and best practices to support inclusive and sustainable industrial development.

A transition to a circular plastics economy would reduce the presence of plastics in the environment while maintaining the value of plastic materials for as long as possible. The reduction of greenhouse gas emissions, the creation of new and inclusive jobs and cost savings to governments, are some of the significant environmental and socio-economic co-benefits of transitioning to a circular plastics economy.

LI Yong, UNIDO Director-General, expressed his enthusiasm for the partnership. “Ending plastic waste in the environment will require new business models, technologies, perspectives and partnerships. We are pleased to enter this partnership with the Alliance and bring our expertise in circular economy solutions to bear in solving this environmental crisis.”

Jacob Duer, President and CEO of the Alliance, said, “We are investing in projects and solutions that can scale and will be able to deliver long-term benefits to the environment and to the communities where they are situated. We are excited to partner with UNIDO to amplify the impact of our mission to end plastic waste in the environment and support inclusive and sustainable development.”

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COP26 closes with ‘compromise’ deal on climate, but it’s not enough

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Negotiators marking the closing of the United Nations climate summit, COP26, which opened in Glasgow, Scotland, on 31 October. The conference sought new global commitments to tackle climate change. UN News/Laura Quiñones

After extending the COP26 climate negotiations an extra day, nearly 200 countries meeting in Glasgow, Scotland, adopted on Saturday an outcome document that, according to the UN Secretary-General, “reflects the interests, the contradictions, and the state of political will in the world today”.

“It is an important step but is not enough. We must accelerate climate action to keep alive the goal of limiting global temperature rise to 1.5 degrees”, said António Guterres in a video statement released at the close of the two-week meeting.

The UN chief added that it is time to go “into emergency mode”, ending fossil fuel subsidies, phasing out coal, putting a price on carbon, protecting vulnerable communities, and delivering the $100 billion climate finance commitment.

“We did not achieve these goals at this conference. But we have some building blocks for progress,” he said.

Mr. Guterres also had a message to young people, indigenous communities, women leaders, and all those leading the charge on climate action.

“I know you are disappointed. But the path of progress is not always a straight line. Sometimes there are detours. Sometimes there are ditches. But I know we can get there. We are in the fight of our lives, and this fight must be won. Never give up. Never retreat. Keep pushing forward”.

A snapshot of the agreement

The outcome document, known as the Glasgow Climate Pact, calls on 197 countries to report their progress towards more climate ambition next year, at COP27, set to take place in Egypt.

The outcome also firms up the global agreement to accelerate action on climate this decade.

However, COP26 President Alok Sharma struggled to hold back tears following the announcement of a last-minute change to the pact, by China and India, softening language circulated in an earlier draft about “the phase-out of unabated coal power and of inefficient subsidies for fossil fuels”. As adopted on Saturday, that language was revised to “phase down” coal use.

Mr. Sharma apologized for “the way the process has unfolded” and added that he understood some delegations would be “deeply disappointed” that the stronger language had not made it into the final agreement.

By other terms of the wide-ranging set of decisions, resolutions and statements that make up the outcome of COP26, governments were,among other things, asked to provide tighter deadlines for updating their plans to reduce emissions.

On the thorny question of financing from developed countries in support of climate action in developing countries, the text emphasizes the need to mobilize climate finance “from all sources to reach the level needed to achieve the goals of the Paris Agreement, including significantly increasing support for developing country Parties, beyond $100 billion per year”.

1.5 degrees, but with ‘a weak pulse’ 

“Negotiations are never easy…this is the nature of consensus and multilateralism”, said Patricia Espinosa, the Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC). 

She stressed that for every announcement made during the past two weeks, the expectation is that the implementation “plans and the fine print” will follow.

Let us enjoy what we accomplished but also prepare for what is coming,” Ms. Espinosa said, after recognizing the advancements on adaptation, among others.

Meanwhile, COP26 President Alok Sharma stated that delegations could say “with credibility” that they have kept 1.5 degrees within reach.

“But its pulse is weak. And it will only survive if we keep our promises. If we translate commitments into rapid action. If we deliver on the expectations set out in this Glasgow Climate Pact to increase ambition to 2030 and beyond. And if we close the vast gap that remains, as we must,” he told delegates.

He then quoted Prime Minister Mia Mottley, who earlier in the conference had said that for Barbados and other small island states, ‘two degrees is a death sentence.’  With that in mind, Mr. Sharma asked delegates to continue their efforts to get finance flowing and boost adaptation

He concluded by saying that history has been made in Glasgow. 

“We must now ensure that the next chapter charts the success of the commitments we have solemnly made together in the Glasgow Climate Pact, he declared.

The ‘least worst’ outcome

Earlier during the conference’s final stocktaking plenary, many countries lamented that the package of agreed decisions was not enough. Some called it “disappointing”, but overall, said they recognized it was balanced for what could be agreed at this moment in time and given their differences.

Countries like Nigeria, Palau, the Philippines, Chile and Turkey all said that although there were imperfections, they broadly supported the text.

“It is (an) incremental step forward but not in line with the progress needed. It will be too late for the Maldives. This deal does not bring hope to our hearts,” said the Maldives’ top negotiator in a bittersweet speech.

US climate envoy John Kerry said the text “is a powerful statement” and assured delegates that his country will engage constructively in a dialogue on “loss and damage” and adaptation, two of issues that proved most difficult for the negotiators to agree upon.

“The text represents the ‘least worst’ outcome,” concluded the top negotiator from New Zealand.

Other key COP26 achievements

Beyond the political negotiations and the Leaders’ Summit, COP26 brought together about 50,000 participants online and in-person to share innovative ideas, solutions, attend cultural events and build partnerships and coalitions.

The conference heard many encouraging announcements. One of the biggest was that leaders from over 120 countries, representing about 90 per cent of the world’s forests, pledged to halt and reverse deforestation by 2030,  the date by which the Sustainable Development Goals (SDGs) to curb poverty and secure the planet’s future are supposed to have been achieved.

There was also a methane pledge, led by the United States and the European Union, by which more than 100 countries agreed to cut emissions of this greenhouse gas by 2030.

Meanwhile, more than 40 countries – including major coal-users such as Poland, Vietnam and Chile – agreed to shift away from coal, one of the biggest generators CO2 emissions.

The private sector also showed strong engagement with nearly 500 global financial services firms agreeing to align $130 trillion – some 40 per cent of the world’s financial assets – with the goals set out in the Paris Agreement, including limiting global warming to 1.5 degrees Celsius.

Also, in a surprise for many, the United States and China pledged to boost climate cooperation over the next decade. In a joint declaration they said they had agreed to take steps on a range of issues, including methane emissions, transition to clean energy and decarbonization. They also reiterated their commitment to keep the 1.5C goal alive.

Regarding green transport, more than 100 national governments, cities, states and major car companies signed the Glasgow Declaration on Zero-Emission Cars and Vans to end the sale of internal combustion engines by 2035 in leading markets, and by 2040 worldwide.  At least 13 nations also committed to end the sale of fossil fuel powered heavy duty vehicles by 2040.

Many ‘smaller’ but equally inspiring commitments were made over the past two weeks, including one by 11 countries which created the Beyond Oil and Gas Alliance (BOGA). Ireland, France, Denmark, and Costa Rica among others, as well as some subnational governments, launched this first-of-its kind alliance to set an end date for national oil and gas exploration and extraction.

A quick refresher on how we got here

To keep it simple, COP26 was the latest and one of the most important steps in the decades long, UN-facilitated effort to help stave off what has been called a looming climate emergency.

In 1992, the UN organized a major event in Rio de Janeiro called the Earth Summit, in which the UN Framework Convention on Climate Change (UNFCCC) was adopted.

In this treaty, nations agreed to “stabilize greenhouse gas concentrations in the atmosphere” to prevent dangerous interference from human activity on the climate system. Today, the treaty has 197 signatories.

Since 1994, when the treaty entered into force, every year the UN has been bringing together almost every country on earth for global climate summits or “COPs”, which stands for ‘Conference of the Parties’.

This year should have been the 27th annual summit, but thanks to COVID-19, we’ve fallen a year behind due to last year’s postponement – hence, COP26.

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Cooling community announces steps to beat global warming with GBP 12M boost from UK

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The UN-led Cool Coalition today announced a series of steps to reduce the climate impact of the cooling industry, including a GBP 12 million boost from the UK Government, the host of COP26.

Just 1.5°C of global warming, a temperature limit the world currently looks set to far exceed could leave 2.3 billon people vulnerable to heatwaves. Cooling will be essential to protect human health and productivity under such circumstances – but 7 per cent of global greenhouse gas emissions come from cooling already.

“The need for cooling in our daily lives – to protect people against heat extremes – will grow. But the way we cool our homes and workplaces is a major driver of climate change. Today, around 10 per cent of the world’s electricity is used for air conditioning. If left unchecked, emissions related to cooling are expected to double by 2030, driven by heat waves, population growth, urbanization and the demands of a growing middle class,” said Inger Andersen, UNEP Executive Director.

A transition to efficient and climate friendly cooling, including natural solutions, could allow the expansion of cooling and avoid 4-8 years of global emissions. This includes work under the Kigali Amendment to the Montreal Protocol to replace climate-warming gases, known as hydrofluorocarbons, that are used as refrigerant gases.

Lord Goldsmith of Richmond Park, Minister for Pacific and the Environment at the Foreign, Commonwealth & Development Office (FCDO) and the Department for Environment, Food and Rural Affairs (Defra), said, “I am delighted that we have announced GBP 12 million of Defra Official Development Assistance programming today to provide valuable assistance to developing countries, enabling them to make rapid progress on reducing hydrofluorocarbons and adopting energy efficient cooling solutions.

“This funding will support vital work to address inefficient cooling technologies and help develop a resilient and sustainable food supply chain in Africa, delivering the first African centre of excellence for rural cooling and cold chain.”

Cool Commitments

Partners have set out a comprehensive agenda to begin delivering on the climate potential of the cooling industry in the wake of COP26. Through its membership of over 120 countries, cities, companies and investors, and other organizations, the Cool Coalition has been an essential catalyst for the Race to Zero in accelerating global efforts and commitments on sustainable cooling.

Some highlights include:

  • 14 cooling suppliers have joined the Race to Zero, representing 28% of the residential AC market. They are ready to supply solutions aligned with their customers’ net-zero commitments. See how Trane and Electrolux are doing this.
  • Gree and Haier committed to bring to market by 2025 residential AC units that have five times less climate impact.
  • 14 countries made the largest government commitment ever to double product efficiency globally by 2030, with a focus on AC, refrigerators, motors and lighting (accounting for 40 per cent of global electricity).
  • EP100 has doubled its membership during the UK’s Presidency of the COP, so more cooling manufacturers and buyers are improving their energy productivity.
  • 53 enhanced Nationally Determined Contributions (NDCs) have integrated sustainable cooling.
  • 25 countries have committed to developing National Cooling Action Plans.
  • 16 cities have committed to tackle extreme heat using the newly launched Beating the Heat: A Sustainable Cooling Handbook for Cities
  • Energy Efficiency Services Limited committed USD 50million for the development of sustainable cold chain projects in India
  • The UK announced 12 million of Defra Official Development Assistance programming today to make rapid progress on reducing hydrofluorocarbons and adoption of energy efficient cooling solutions. Multilateral Development Banks committed at least USD185 million to stimulate investment in sustainable cooling. 

In support of these commitments, an unprecedented surge of implementation will fill 2022 and beyond. These implementation efforts will go a long way in turning commitments into emissions reduction and increase resilience.

“Cooling is becoming increasingly critical to strengthen our resilience to a warming world. National, local and business commitments to reducing emissions urgently need to translate into implementation that can keep the world cool and achieve net zero in time,” said Nigel Topping, COP26 High Level Climate Champion.

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