Tag: Energy

Can Asia and the Pacific Get on Track to Net Zero? — Global Issues

  • Opinion by Armida Salsiah Alisjahbana (bangkok, thailand)
  • Inter Press Service

BANGKOK, Thailand, Nov 29 (IPS) – The recent climate talks in Egypt have left us with a sobering reality: The window for maintaining global warming to 1.5 degrees is closing fast and what is on the table currently is insufficient to avert some of the worst potential effects of climate change. The Nationally Determined Contribution targets of Asian and Pacific countries will result in a 16 per centincrease in greenhouse gas emissions by 2030 from the 2010 levels.

Armida Salsiah Alisjahbana

The Sharm-el Sheikh Implementation Plan and the package of decisions taken at COP27 are a reaffirmation of actions that could deliver the net-zero resilient world our countries aspire to. The historic decision to establish a Loss and Damage Fund is an important step towards climate justice and building trust among countries.

But they are not enough to help us arrive at a better future without, what the UN Secretary General calls, a “giant leap on climate ambition”. Carbon neutrality needs to at the heart of national development strategies and reflected in public and private investment decisions. And it needs to cascade down to the sustainable pathways in each sector of the economy.

Accelerate energy transition

At the Economic and Social Commission for Asia and the Pacific (ESCAP), we are working with regional and national stakeholders on these transformational pathways. Moving away from the brown economy is imperative, not only because emissions are rising but also because dependence on fossil fuels has left economies struggling with price volatility and energy insecurity.

A clear road map is the needed springboard for an inclusive and just energy transition. We have been working with countries to develop scenarios for such a shift through National Roadmaps, demonstrating that a different energy future is possible and viable with the political will and sincere commitment to action of the public and private sectors.

The changeover to renewables also requires concurrent improvements in grid infrastructure, especially cross-border grids. The Regional Road Map on Power System Connectivity provides us the platform to work with member States toward an interconnected grid, including through the development of the necessary regulatory frameworks for to integrate power systems and mobilize investments in grid infrastructure. The future of energy security will be determined by the ability to develop green grids and trade renewable-generated electricity across our borders.

Green the rides

The move to net-zero carbon will not be complete without greening the transport sector. In Asia and the Pacific transport is primarily powered by fossil fuels and as a result accounted for 24 per cent of total carbon emissions by 2018.

Energy efficiency improvements and using more electric vehicles are the most effective measures to reduce carbon emissions by as much as 60 per cent in 2050 compared to 2005 levels. The Regional Action Programme for Sustainable Transport Development allows us to work with countries to implement and cooperate on priorities for low-carbon transport, including electric mobility. Our work with the Framework Agreement on Facilitation of Cross-border Paperless Trade also is helping to make commerce more efficient and climate-smart, a critical element for the transition in the energy and transport sectors.

Adapting to a riskier future

Even with mitigation measures in place, our economy and people will not be safe without a holistic risk management system. And it needs to be one that prevents communities from being blindsided by cascading climate disasters.

We are working with partners to deepen the understanding of such cascading risks and to help develop preparedness strategies for this new reality, such as the implementation of the ASEAN Regional Plan of Action for Adaptation to Drought.

Make finance available where it matters the most

Finance and investment are uniquely placed to propel the transitions needed. The past five years have seen thematic bonds in our region grow tenfold. Private finance is slowly aligning with climate needs. The new Loss and Damage Fund and its operation present new hopes for financing the most vulnerable. However, climate finance is not happening at the speed and scale needed. It needs to be accessible to developing economies in times of need.

Innovative financing instruments need to be developed and scaled up, from debt-for-climate swaps to SDG bonds, some of which ESCAP is helping to develop in the Pacific and in Cambodia. Growing momentum in the business sector will need to be sustained. The Asia-Pacific Green Deal for Business by the ESCAP Sustainable Business Network (ESBN) is important progress. We are also working with the High-level Climate Champions to bring climate-aligned investment opportunities closer to private financiers.

Lock in higher ambition and accelerate implementation

Climate actions in Asia and the Pacific matter for global success and well-being. The past two years has been a grim reminder that conflicts in one continent create hunger in another, and that emissions somewhere push sea levels higher everywhere. Never has our prosperity been more dependent on collective actions and cooperation.

Our countries are taking note. Member States meeting at the seventh session of the Committee on Environment and Development, which opens today (29 November) are seeking consensus on the regional cooperation needed and priorities for climate action such as oceans, ecosystem and air pollution. We hope that the momentum begun at COP27 and the Committee will be continued at the seventy-ninth session of the Commission as it will hone in on the accelerators for climate action.

In this era of heightened risks and shared prosperity, only regional, multilateral solidarity and genuine ambition that match with the new climate reality unfolding around us — along with bold climate action — are the only way to secure a future where the countries of Asia and the Pacific can prosper.

Armida Salsiah Alisjahbana is an Under-Secretary-General of the United Nations and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP)

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Open Veins of Africa Bleeding Heavily — Global Issues

  • Opinion by Jomo Kwame Sundaram, Ndongo Samba Sylla (dakar and kuala lumpur)
  • Inter Press Service

DAKAR and KUALA LUMPUR, Nov 22 (IPS) – The ongoing plunder of Africa’s natural resources drained by capital flight is holding it back yet again. More African nations face protracted recessions amid mounting debt distress, rubbing salt into deep wounds from the past.

With much less foreign exchange, tax revenue, and policy space to face external shocks, many African governments believe they have little choice but to spend less, or borrow more in foreign currencies.

Ndongo Samba Sylla

Most Africans are struggling to cope with food and energy crises, inflation, higher interest rates, adverse climate events, less health and social provisioning. Unrest is mounting due to deteriorating conditions despite some commodity price increases.

Economic haemorrhage

After ‘lost decades’ from the late 1970s, Africa became one of the world’s fastest growing regions early in the 21st century. Debt relief, a commodity boom and other factors seemed to support the deceptive ‘Africa rising’ narrative.

But instead of long overdue economic transformation, Africa has seen jobless growth, rising economic inequalities and more resource transfers abroad. Capital flight – involving looted resources laundered via foreign banks – has been bleeding the continent.

According to the High Level Panel on Illicit Financial Flows from Africa, the continent was losing over $50 billion annually. This was mainly due to ‘trade mis-invoicing’ – under-invoicing exports and over-invoicing imports – and fraudulent commercial arrangements.

Transnational corporations (TNCs) and criminal networks account for much of this African economic surplus drain. Resource-rich countries are more vulnerable to plunder, especially where capital accounts have been liberalized.

Jomo Kwame Sundaram

Externally imposed structural adjustment programs (SAPs), after the early 1980s’ sovereign debt crises, have forced African economies to be even more open – at great economic cost. SAPs have made them more (food) import-dependent while increasing their vulnerability to commodity price shocks and global liquidity flows.

Leonce Ndikumana and his colleagues estimate over 55% of capital flight – defined as illegally acquired or transferred assets – from Africa is from oil-rich nations, with Nigeria alone losing $467 billion during 1970-2018.

Over the same period, Angola lost $103 billion. Its poverty rate rose from 34% to 52% over the past decade, as the poor more than doubled from 7.5 to 16 million.

Oil proceeds have been embezzled by TNCs and Angola’s elite. Abusing her influence, the former president’s daughter, Isabel dos Santos acquired massive wealth. A report found over 400 companies in her business empire, including many in tax havens.

From 1970 to 2018, Côte d’Ivoire lost $55 billion to capital flight. Growing 40% of the world’s cocoa, it gets only 5–7% of global cocoa profits, with farmers getting little. Most cocoa income goes to TNCs, politicians and their collaborators.

Mining giant South Africa (SA) has lost $329 billion to capital flight over the last five decades. Mis-invoicing, other modes of embezzling public resources, and tax evasion augment private wealth hidden in offshore financial centres and tax havens.

Fiscal austerity has slowed job growth and poverty reduction in ‘the most unequal country in the world’. In SA, the richest 10% own over half the nation’s wealth, while the poorest 10% have under 1%!

Resource theft and debt

With this pattern of plunder, resource-rich African countries – that could have accelerated development during the commodity boom – now face debt distress, depreciating currencies and imported inflation, as interest rates are pushed up.

Zambia’s default on its foreign debt obligations in late 2020 has made headlines. But foreign capture of most Zambian copper export proceeds is not acknowledged.

During 2000-2020, total foreign direct investment income from Zambia was twice total debt servicing for external government and government-guaranteed loans. In 2021, the deficit in the ‘primary income’ account (mainly returns to capital) of Zambia’s balance of payments was 12.5% of GDP.

As interest payments on public external debt came to ‘only’ 3.5% of GDP, most of this deficit (9% of GDP) was due to profit and dividend remittances, as well as interest payments on private external debt.

For the IMF, World Bank and ‘creditor nations’, debt ‘restructuring’ is conditional on continuing such plunder! African countries’ worsening foreign indebtedness is partly due to lack of control over export earnings controlled by TNCs, with African elite support.

Resource pillage, involving capital flight, inevitably leads to external debt distress. Invariably, the IMF demands government austerity and opening African economies to TNC interests. Thus, we come full circle, and indeed, it is vicious!

Africa’s wealth plunder dates back to colonial times, and even before, with the Atlantic trade of enslaved Africans. Now, this is enabled by transnational interests crafting international rules, loopholes and all.

Such enablers include various bankers, accountants, lawyers, investment managers, auditors and other wheeler dealers. Thus, the origins of the wealth of ‘high net-worth individuals’, corporations and politicians are disguised, and its transfer abroad ‘laundered’.

What can be done?

Capital flight is not mainly due to ‘normal’ portfolio choices by African investors. Hence, raising returns to investment, e.g., with higher interest rates, is unlikely to stem it. Worse, such policy measures discourage needed domestic investments.

Besides enforcing efficient capital controls, strengthening the capabilities of specialized national agencies – such as customs, financial supervision and anti-corruption bodies – is important.

African governments need stronger rules, legal frameworks and institutions to curb corruption and ensure more effective natural resource management, e.g., by revising bilateral investment treaties and investment codes, besides renegotiating oil, gas, mining and infrastructure contracts.

Records of all investments in extractive industries, tax payments by all involved, and public prosecution should be open, transparent and accountable. Punishment of economic crimes should be strictly enforced with deterrent penalties.

The broader public – especially civil society organizations, local authorities and impacted communities – must also know who and what are involved in extractive industries.

Only an informed public who knows how much is extracted and exported, by whom, what revenue governments get, and their social and environmental effects, can keep corporations and governments in check.

Improving international trade and finance transparency is essential. This requires ending banking secrecy and better regulation of TNCs to curb trade mis-invoicing and transfer pricing, still enabling resource theft and pillage.

OECD rhetoric has long blamed capital flight on offshore tax havens on remote tropical islands. But those in rich countries – such as the UK, US, Switzerland, Netherlands, Singapore and others – are the biggest culprits.

Stopping haemorrhage of African resource plunder by denying refuge for illicit transfers should be a rich country obligation. Automatic exchange of tax-related information should become truly universal to stop trade mis-invoicing, transfer pricing abuses and hiding stolen wealth abroad.

Unitary taxation of transnational corporations can help end tax abuses, including evasion and avoidance. But the OECD’s Inclusive Framework proposals favour their own governments and corporate interests.

Africa is not inherently ‘poor’. Rather, it has been impoverished by fraud and pillage leading to resource transfers abroad. An earnest effort to end this requires recognizing all responsibilities and culpabilities, national and international.

Africa’s veins have been slit open. The centuries-long bleeding must stop.

Dr Ndongo Samba Sylla is a Senegalese development economist working at the Rosa Luxemburg Foundation in Dakar. He authored The Fair Trade Scandal. Marketing Poverty to Benefit the Rich and co-authored Africa’s Last Colonial Currency: The CFA Franc Story. He also edited Economic and Monetary Sovereignty for 21st century Africa, Revolutionary Movements in Africa and Imperialism and the Political Economy of Global South’s Debt. He tweets at @nssylla

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Will the Global Energy Crisis Accelerate the Energy Transition? The Big Question at COP27 — Global Issues

One of the many activities held on Energy Day (Nov. 15) at COP27, where discussions are taking place for two weeks on how to make further progress on global climate action. The consensus among observers is that the energy transition away from fossil fuels will accelerate in the wake of the war in Ukraine and its impact on oil and gas supply and prices. CREDIT: Daniel Gutman/IPS
  • by Daniel Gutman (sharm el sheikh, egypt)
  • Inter Press Service

SHARM EL SHEIKH, Egypt, Nov 16 (IPS) – COP27 is unlikely to produce new commitments to reduce emissions of climate-changing gases, but the global energy crisis will eventually prompt more action by countries to move away from fossil fuels. That is the positive feeling that many observers are taking away from the annual climate summit being held in Egypt.

“The rise in energy prices due to Russia’s invasion of Ukraine set back many countries in the transition to renewable energies in 2022,” Manuel Pulgar Vidal, global leader of Climate & Energy at WWF, told IPS. “But this is not going to last, because developed nations have proven that the best path to energy security is to accelerate the abandonment of fossil fuels.”

The issue is seen from the same point of view in some countries of the developing South.

Costa Rica’s Minister of Environment and Energy Franz Tattenbach Capra was emphatic in an interview with IPS: “Countries like ours, which don’t have oil or gas, are appalled by the price increases. This will lead us to try to become less dependent on imports.”

The close relationship that has been established between climate action and economic development is easy to see at the 27th Conference of the Parties (COP27) to the United Nations Framework Convention on Climate Change, which has drawn more than 33,000 people to this seaside resort town on the Sinai Peninsula.

This link goes far beyond the negotiations between the 193 States Parties on climate change mitigation and adaptation, which this year focuses on climate action, as highlighted by the summit’s slogan: “Together for Implementation”.

A demonstration is held at the Sharm El Sheikh International Convention Center at COP27 to remind the world of the importance of the Sustainable Development Goals aimed at boosting global peace and prosperity, fighting climate change and making the transition to clean energy by 2030. CREDIT: Daniel Gutman/IPS

Global fair

COP27 is very much like a trade fair and a multitudinous meeting place, with an overwhelming number of talks, activities and document sharing, where the task of choosing where to be is very difficult and everyone constantly feels they are missing out on something more interesting happening at the same time.

While world leaders give speeches and technical officials discuss the next steps for climate action, countries, organizations and companies seek and offer financing, in public and private meetings, for all kinds of projects, ranging from energy, agriculture and infrastructure to the empowerment of indigenous communities.

“This process has been very skillful in connecting climate change and economics. We all know that countries that do not act responsibly with regard to the climate are going to slide backwards in the coming years,” said Pulgar Vidal, who co-organized and chaired COP20, held in Lima in 2014, when he was Peru’s environment minister.

The energy sector is definitely the master key to finding solutions to climate change, as it is responsible for more than three-quarters of global greenhouse gas emissions and is still primarily fossil-fuel based.

According to a report presented here by the International Renewable Energy Agency (IRENA), only 29 percent of generation comes from alternative sources and carbon emissions continue to rise.

And the past year “frankly, has been a year of climate procrastination,” said United Nations Environment Program (UNEP) executive director Inger Andersen on Nov. 15, the day dedicated to energy in the never-ending agenda of side events taking place at the Sharm el-Sheikh International Convention Center.

In the official negotiations, however, the energy discussion appears to be in the background, behind the debate on the creation of a fund to compensate for loss and damage in the countries of the South that have suffered the most from droughts, floods, hurricanes, forest fires and other phenomena that have accelerated in recent years.

COP26, held a year ago in Glasgow, Scotland, ended with a bitter taste with respect to energy when, following an intervention by India, a commitment was made to reduce, rather than eliminate, the use of coal, the most polluting fossil fuel.

For now, there is no indication that this summit will end with a better agreement in this area.

Manuel Pulgar Vidal, a former Peruvian environment minister and the chair of COP20 on climate change, held in Lima in 2014, poses for photos in one of the corridors of COP27 at the Sharm El Sheikh International Convention Center in Egypt, where he is participating as global leader of Climate & Energy at WWF. CREDIT: WWF

Effects of the war

Carlos Manuel Rodríguez, chair of the largest multilateral fund for financing climate action in developing countries, is also convinced that the energy crisis generated by the war in Ukraine will, in the medium and long term, trigger a faster transition.

“The conflict made many people understand how vulnerable the global energy system is and how harmful dependence on fossil fuels is,” the CEO of the Global Environment Facility (GEF) told IPS in one of the wide corridors of the Sharm El Sheikh International Convention Center, where the heavy traffic of people does not stop between 8:00 AM and 9:00 PM.

Rodríguez, the former Costa Rican environment minister, said that “With an energy mix based more on renewable sources, there would have been more resilience to the impact of the events in Ukraine. European countries have already understood this and I am confident that they are understanding it in other regions.”

Reports circulating in Sharm El Sheikh support the theory that the impact of the crisis could be beneficial for the energy transition in the long run.

In the four largest emitters – China, the United States, the European Union and India – public and private investment in transport electrification and renewable energy is growing due to market mechanisms and concerns about energy security, says a paper presented by the Energy and Climate Intelligence Unit (ECIU), an independent advisory organization based in the United Kingdom.

“The pace at which the green transition is speeding up…is remarkable….no-one who genuinely understands the interconnected crises facing the world believes that more oil and gas represent anything more than a very short-term solution,” Gareth Redmond-King, international lead at the ECIU, said at the climate summit.

Harjeet Singh, of the Climate Action Network International, which brings together more than 1,800 environmental organizations, takes part in a demonstration at the Sharm El Sheikh International Convention Center. The demand is to ensure that the necessary efforts are made so that global temperature does not increase beyond 1.5 degrees Celsius above pre-industrial levels. CREDIT: Daniel Gutman/IPS

Pressure from civil society

A broad spectrum of organizations are taking part in COP27, aiming to influence the negotiation process and seek funding.

Harjeet Singh of the Climate Action Network International (CAN-I), an umbrella group of more than 1,800 organizations in 130 countries, told IPS that “the war in Ukraine shifted the focus of many developed countries from climate action to energy security.”

Singh has called for a commitment to halt the expansion of fossil fuels to be included in the outcome document of COP27, which is due to end on Nov. 18 if it is not extended by one day as is customary at these summits.

At the same time, he lamented that, because of the impact of the war, “we see the fossil fuel industry taking advantage of this space to sell itself as sustainable, which is unacceptable.”

Evidence of the need to appear as part of the oil sector’s climate action is everywhere in this gigantic Convention Center, where the organization Global Witness denounced that 636 lobbyists for oil interests and companies are registered as participants.

One of the hundreds of organizations with booths at Sharm El Sheikh is the OPEC (Organization of the Petroleum Exporting Countries) Fund for International Development.

“We came here to make ourselves visible, as we want to contribute to making the energy transition in all countries inclusive,” Nadia Benamara, Head of Outreach & Multimedia for the Vienna-based Fund, told IPS.

Benamara said the Fund pledged 24 billion dollars up to 2030 to finance climate action because “oil producing and exporting countries are also victims of climate change and want to contribute to the solution.”

IPS produced this article with support from Climate Change Media Partnership 2022, the Earth Journalism Network, Internews, and the Stanley Center for Peace and Security.

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A History Lesson about War and Greed — Global Issues

  • Opinion by Jan Lundius (stockholm)
  • Inter Press Service

STOCKHOLM, Nov 16 (IPS) – The past is never dead. It’s not even past.
                                         William FaulknerLike most armed conflicts the Ukrainian war intends to establish hegemony over a certain area, in rivalry with other usurpers. Russian propaganda pinpoints the US and EU as Russia’s main adversaries, while Ukraine is portrayed as a pawn in these nations’ international yearnings. Such a scenario is not new.

The Great Game was a political and diplomatic confrontation between British – and Russian Empires, which continued for most of the 19th and parts of the 20th centuries. Britain’s role was eventually taken over by the US. The Great Game mainly affected Mesopotamia (Iraq), Persia (Iran), and Afghanistan, though it had, and still has, repercussions on a wide range of neighboring territories.

Britain originally feared that the Russian Empire’s ultimate goal was to dominate Central Asia and reach the Indian Ocean through Persia, thus threatening Britain’s Asian trade links and its domination of India.

Britain posed as the World’s first free society, declaring its adherence to Christian values, respect for private property, and democratic institutions. Claims bolstered by an advanced industry, fueled by steam power and iron, as well as an ever increasing use of oil. English leaders assumed their nation had a God-given task to spread “civilization” and that such a worthy cause permitted them to exploit the earth’s natural resources, as well as the world’s labor force. Similarly to the Brits, the Russians, the Yankees, and the French considered themselves to be “civilizing forces”.

The quest for dominion was carried out in a traditional manner – pitching internal fractions against each other and let them do most of the fighting. Nevertheless, this strategy eventually led to direct clashes between “world powers”. Britain strived to convince the Russian army that it did not have a chance against the British war machine. The UK, France and Italy felt threatened by a growing influence of Germany and the Austro-Hungarian and Russian Empires. Accordingly, these nations supported an increasingly weakened Ottoman Empire, intending it to remain a buffer zone blocking Russia’s expanding war fleet from the Mediterranean Sea and the Indian Ocean.

As part of this policy, Britain and France provided arms and money to anti-Russian insurgents in Chechnya, thus contributing to an enduring tradition of Chechen terrorism against Russia. After a minor scuffle between the Russian – and Ottoman Empires, Russia occupied the Principate of Wallachia (Romania), prompting France and Great Britain to attack Crimea with a huge military force.

The Crimean War (1853-56) proved that the Tsar’s army was no match for the allied forces. Russia was humiliated and its expansion towards the European mainland and meddling in Persia and Afghanistan were halted. Instead people living on the steppes of Central Asia and Siberia continued to be subdued and forced to join the Russian Tsardom.

    The Crimean disaster had exposed the shortcomings of every institution in Russia – not just the corruption and incompetence of the military command, the technological backwardness of the army and navy, or the inadequate roads and lack of railways that accounted for the chronic problems of supply, but the poor condition and illiteracy of the serfs who made up the armed forces, the inability of the serf economy to sustain a state of war against industrial powers, and the failures of autocracy itself.

The meddling of imperialists in other nations’ affairs was gradually worsened by efforts to secure fossil fuels for their own benefit. Refined petrol was originally used to fuel kerosene lamps and became increasingly important when street lighting was introduced. After 1857, oil wells drilled in Wallachia became very profitable, inspiring a search for new oilfields in the east. In 1873, the Swede Robert Nobel established an oil refinery in Azerbaijan, adding Russia’s first pipeline system, pumping stations, storage depots, and railway tank cars. At the same time, Calouste Gulbenkian assisted the Ottoman government to establish the oil industry in Mesopotamia. Gulbenkian eventually became the world’s wealthiest man.

Profit from these endeavors increased through assembly-line mass production of motor vehicles, introduced by Henry Ford in 1914. However, the main reason for gaining control of oil was belligerent. The English First Lord of the Admiralty, Winston Churchill, realized that if the British navy was fuelled by oil, instead of coal, it would be irresistible: “We must become the owners or at any rate the controllers at the source of at least a proportion of the supply of natural oil which we require.” In 1914, Churchill feared that this could be too late – the Germans were already on their way to conquer the Middle Eastern oil fields. Together with the Ottomans they were finishing the Berlin-Baghdad railway line, which would it make possible for the German army to transport troops to the Persian Gulf and onwards to Persian oilfields.

Germany and its allied Ottoman Empire lost World War I and the Berlin-Baghdad railway never reached the Persian Gulf. In accordance with the so-called Sykes-Picot Agreement Arab territories of the former Ottoman Empire were divided into French and British “spheres of influence”. In 1929, the newly formed Iraq Petroleum Company (IPC), a joint endeavor of British, French and American oil interests, brokered by Gulbenkian, received a 75-year concession to exploit crude oil reserves in Iraq and Persia, and eventually in what would become the United Emirates.

Access to oil continued to be a major factor in World War II. The German invasion of USSR included the goal to capture the Baku oilfields, which had been nationalized during the Bolshevik Revolution. However, the German Army was defeated before it reached the oil fields.

The Germans had pursued a relatively benign policy towards the USSR’s Muslim population of Caucasus and neighboring areas. This was after the war taken as an excuse for Stalin’s treatment of “treacherous ethnic elements”. Forced internal migration had begun already before the war and eventually affected at least 6 million people. Among them 1.8 million kulaks, mainly from Ukraine, who were deported from 1930 to 1931, one million peasants and ethnic minorities were driven from Caucasus between 1932 to 1939, and from 1940 to 1952, a further 3.5 million ethnic minorities were resettled.

Nearly 8,000 Crimean Tatars died during these deportations, while tens of thousands perished subsequently due to the harsh exile conditions. The Crimean Tatar deportations resulted in the abandonment of 80,000 households and 360,000 acres of land. From 1967 to 1978, some 15,000 Tatars succeeded in returning legally to Crimea, less than 2 percent of the pre-war Tatar population. This remission was followed by a ban on further Tatar settlements.

In 1944, almost all Chechens were deported to the Kazakh and Kirgiz Soviet republics. Accordingly, the Russian presence in Caucasus and Ukraine increased and so was Russian control of these areas’ natural resources, including wheat, coal, oil and gas.

After World War I, Britain had first tried to halt the Bolshevik penetration of Iran and did in 1921 support a coup d’état placing the UK-friendly general Reza Shah as leader of the nation. When Britain and USSR eventually became allies against Nazi Germany they did together attack Iran and replaced Reza Shah with his son Mohammad Reza Pahlavi. Reza Shah had become “far too Nazi-friendly.”

Following a 1950 election, Mohammad Mosaddegh became president of Iran. He was committed to nationalize the Anglo-Iranian Oil Company, AIOC (successor of the IPC mentioned above). In a joint effort the Secret Intelligence Services of the UK and the US, MI6 and CIA, organized and paid for a “popular” uprising against Mosaddegh, though it backfired and their co-conspirator, Mohammad Reza Pahlavi, fled the country. However, he did after a brief exile return and this time a coup d’état was successful. The deposed Mosaddegh was arrested and condemned to life in internal exile.

Mosaddegh’s internally popular effort to remove oil revenues from foreign claws inspired other Middle East leaders to oppose Britain and France. In 1956, the Egyptian president Nasser nationalized the Suez Canal Company, primarily owned by British and French shareholders. An ensuing invasion by Israel, followed by UK and France, aimed at regaining control of the Canal, ended in a humiliating withdrawal by the three invaders, signifying the end of UK’s role as one of the world’s major powers. The same year, USSR was emboldened to invade Hungary, quenching a popular uprising.

In 1960, the Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad. This was a turning point toward national sovereignty over natural resources. The US Iranian protégé, Mohammad Reza Pahlavi, eventually came to play a leading role in OPEC where he promoted increased prices, proclaiming that the West’s “wealth based on cheap oil is finished.” The US was losing its ability to influence Iranian foreign and economic policy and discretely began to support the religous extremist Khomeini, who initially claimed that American presence was necessary as a counterbalance to Soviet influence. However, after coming to power in 1979 Khomeini revealed himself as a fierce opponent to the US. The US and some European governments thus ended up supporting the brutal Saddam Hussein’s war on Iran. The Iraqui leader, heavily financed by Arab Gulf states, suddenly became a ”defender of the Arab world against a revolutionary Iran.” The war ended in a stalemate,with approximately 500,000 killed.

Ukraine is one last example of how a country has ended up in a siutaion where a superpower use its military force to impose its will upon it, while implying that other nations have similar intentions. Times are constantly changing and hopefully Russia will realise, like the UK once did, that it cannot maintain its might and strength through armed invasions, but instead have to rely on diplomacy and peaceful negotiations.

Russia seems to be stuck in a time capsule where foreign greed and meddling in other nations’ internal affairs resulted in ruthless wars and immense human suffering. As the German philosopher Hegel stated in 1832:

    What experience and history teach is this — that people and governments never have learned anything from history, or acted on principles deduced from it.

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COP27 Fiddling as World Warms — Global Issues

  • Opinion by Jomo Kwame Sundaram, Hezri A Adnan (kuala lumpur, malaysia)
  • Inter Press Service

KUALA LUMPUR, Malaysia, Nov 15 (IPS) – The latest annual climate conference has begun in the face of a worsening climate crisis and further retreats by rich nations following the energy crisis induced by NATO sanctions after the Russian invasion of Ukraine.

Copping out again
The 27th Conference of the Parties (COP 27) to the United Nations Framework Convention on Climate Change (UNFCCC) is now meeting in Sharm-el-Sheikh, Egypt, from 6 to 18 November 2022.

Hezri A Adnan

COP27 takes place amidst worsening poverty, hunger and war, and higher prices, exacerbating many interlinked climate, environmental and socio-economic crises.

The looming world economic recession is likely to be deeper than in 2008. The likely spiral into stagflation will make addressing the climate crisis even more difficult.

Invoking the Ukraine war as pretext, governments and corporations are rushing to increase fossil fuel production to offset the deepening energy crisis.

Resources which should be deployed for climate adaptation and mitigation have been diverted for war, fossil fuel extraction and use, including resumption of shale gas ‘fracking’ as well as coal mining and burning.

War causes huge social and economic damage to people, society and the environment. The wars in Ukraine, Yemen and elsewhere impose high costs on all, disrupting energy and food supplies, and raising prices sharply.

Russia’s Ukraine incursion has provided a convenient smokescreen for a hasty return to fossil fuels, as military-industrial processes alone account for 6% of all greenhouse gases.

The future is already here

All these have worsened crises facing the world’s environment and economy. The most optimistic Intergovernmental Panel on Climate Change (IPCC) scenario expects the 1.5°C rise above pre-industrial levels threshold for climate catastrophe to be breached by 2040.

Jomo Kwame Sundaram

Crossing it, the world faces risks of far more severe climate change effects on people and ecosystems, especially in the tropics and sub-tropical zone.

But the future is already upon us. Accelerating warming is already causing worse extreme weather events, ravaging economies, communities and ecosystems.

Recent floods in Pakistan displaced 33 million people. Wildfires, extreme heat, ice melt, drought, and extreme weather phenomena are already evident on many continents, causing disasters worldwide.

In 2021, the sea level rose to a record high, and is expected to continue rising. UN reports estimate women and children are 14 times more likely than adult men to die during climate disasters.

Popular sentiment is shifting, even in the US, where ‘climate scepticism’ is strongest. Devastation threatened by Hurricane Ida in 2021 not only revived painful memories of Katrina in 2005, but also heightened awareness of warming-related extreme weather events.

Stronger climate action needed

In international negotiations, rich nations have evaded historical responsibility for ‘climate debt’ by only focusing on current emissions. Hence, there is no recognition of a duty to compensate those most adversely impacted in the global South.

Last year’s COP26 Glasgow Climate Pact was hailed for its call to ‘phase-out’ coal. This has now been quickly abandoned by Europe with the war. And for developing countries, Glasgow failed to deliver any significant progress on climate finance.

At COP27, the Egyptian presidency has proposed an additional ‘loss and damage’ finance facility to compensate for irreparable damage due to climate impacts.

After failing to even meet its modest climate finance promises of 2009, the rich North is dithering, pleading for further talks until 2024 to work out financing details.

Meanwhile, the G7 has muddied the waters by counter-offering its Global Shield Against Climate Risks – a disaster insurance scheme.

Get priorities right

What the world needs, instead, are rapidly promoted and implemented measures as part of a more rapid, just, internationally funded transition for the global South. This should:

  • replace fossil fuels with renewable energy, including by subsidizing renewable energy generation for energy-deficient poor populations.
  • promote energy-saving and efficiency measures to reduce its use and greenhouse gas emissions by at least 70% (from 1990) by 2030.
  • implement a massive global public works programme, creating ‘green jobs’ to replace employment in ‘unsustainable’ industries.
  • develop needed sustainable technologies, e.g., to replace corporate agricultural practices with ‘agroecological’ farming methods, investment and technology.

Another world is possible

Another world is possible. A massive social and political transformation is needed. But the relentless pursuit of private profit has always been at the expense of people and nature.

Greed cannot be expected to become the basis for a just solution to climate change, let alone environmental degradation, world poverty, hunger and gross inequalities.

The COP27 conference is now taking place in Sharm-al-Sheikh, an isolated, heavily policed tourist resort. Only one major road goes in and out, as if designed to keep out civil society and drown out voices from the global South.

The luxury hotels there are charging rates that have put COP27 beyond the means of many, especially climate justice activists from poorer countries. The rich and powerful arrived in over 400 private jets, making a mockery of decarbonization rhetoric.

Thus, the COP process is increasingly seen as exclusive. Without making real progress on the most important issues, it is increasingly seen as slow, irrelevant and ineffective.

Generating inadequate agreements at best, the illusion of progress thus created is dangerously misleading at worst.

By generating great expectations and false hopes, but actually delivering little, it is failing the world, even when it painstakingly achieves difficult compromises which fall short of what is needed.

Multilateralism at risk

Multilateral platforms, such as the UNFCCC, have long been expected to engage governments to cooperate in developing, implementing and enforcing solutions. With the erosion of multilateralism since the end of the Cold War, these are increasingly being bypassed.

Instead, self-appointed private interests, with means, pretend to speak for world civil society. Strapped for resources, multilateral platforms and other organizations are under pressure to forge partnerships and other forms of collaboration with them.

Thus, inadequate ostensible private solutions increasingly dominate policy discourses. Widespread fiscal deficits have generated interest in them due to the illusory prospect of private funding.

Private interests have thus gained considerable influence. Thus, the new spinmeisters of Davos and others have gained influence, offering seductively attractive, but ultimately false, often misleading and typically biased solutions.

Meanwhile, global warming has gone from bad to worse. UN Member States must stiffen the backs of multilateral organizations to do what is right and urgently needed, rather than simply going with the flow, typically of cash.

Hezri A Adnan is an environmental policy analyst and Fellow of the Academy of Sciences, Malaysia. He is author of The Sustainability Shift: Reshaping Malaysia’s Future.

IPS UN Bureau


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Former War Zones in El Salvador Obtain Water with the Help of the Sun — Global Issues

A local resident of the Sitio el Zapotal community in El Zapote canton, El Salvador, turns on the tap to fill his sink to collect the water he will need for the day. A total of 10,000 people have benefited from the five solar-powered community water projects in El Salvador since 2010. CREDIT: Edgardo Ayala/IPS
  • by Edgardo Ayala (suchitoto, el salvador)
  • Inter Press Service

SUCHITOTO, El Salvador, Nov 11 (IPS) – Several community-run water projects powered by solar energy have improved the quality of life of thousands of rural families in areas that were the scene of heavy fighting during El Salvador’s civil war in the 1980s.

The families now have running water, thanks to a collective effort launched when the war ended in 1992, after they returned to their former homes, which they had fled years earlier because of the intense fighting.

The largest of these community water systems driven by solar power is located in the canton of El Zapote, Suchitoto municipality, in the central Salvadoran department of Cuscatlán.

“The first step was to come together and buy this place to drill the well, do tests and build the tank, and we had a lot of help from other organizations that supported us,” Ángela Pineda, president of the Zapote-Platanares Community-Rural Association for Water, Health and the Environment, told IPS.

The association is a “junta de agua” or water board, which are community organizations that bring water to remote areas of El Salvador where the government does not have the capacity to supply it, such as the one installed in the canton of El Zapote.

There are an estimated 2,500 water boards in the country, providing service to 25 percent of the population, or some 1.6 million people. The vast majority of them operate with energy from the national power grid.

But five of the boards, located in the vicinity of Suchitoto, obtained financial support from organizations such as Companion Communities Development Alternatives (CoCoDA), based in Indianapolis, Indiana, for taking a technological leap towards operating with solar energy.

“The advantage is that the systems are powered by clean, renewable energies that do not pollute the environment,” Karilyn Vides, director of operations in El Salvador for the U.S.-based CoCoDA, told IPS.

Four previous projects of this type, supported since 2010 by CoCoDA, were small, with less than 10 solar panels. But the one mounted in the canton of El Zapote was planned to be equipped with 96 panels, when it was conceived in 2021.

It was inaugurated in June 2022, although it had been operating since 2004, with hydropower from the national grid.

This effort benefits more than 2,500 families settled around Suchitoto and on the slopes of Guazapa mountain which during the 12-year civil war was a stronghold of the then guerrilla Farabundo Marti National Liberation Front (FMLN), now a political party that governed the country between 2009 and 2019.

However, when including the four other small solar water projects, plus five that continue to operate with electricity from the national grid, all financially supported by CoCoDA after the end of the war, the total number of beneficiaries climbs to 10,000 people.

El Salvador’s bloody armed conflict left some 75,000 people dead and more than 8,000 missing. between 1980 and 1992.

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Rich Countries ‘Miserably’ Fall Below Their Climate Promises, Further Indebt the Poor — Global Issues

“To force poor countries to repay a loan to cope with a climate crisis they hardly caused is profoundly unfair. Instead of supporting countries that are facing worsening droughts, cyclones and flooding, rich countries are crippling their ability to cope with the next shock and deepening their poverty.” Credit: Credit: Manipadma Jena/IPS.
  • by Baher Kamal (madrid)
  • Inter Press Service

MADRID, Nov 04 (IPS) – Just a few days ahead of the UN Climate Conference (COP27) in Egypt (6-18 November), new revelations show how far rich, industrialised countries –those who contribute most to the growing catastrophes- have been lying over their real contributions to climate finance.

The True Value of Climate Finance Is a Third of What Developed Countries Report unveils that many rich countries are using “dishonest and misleading” accounting “to inflate” their climate finance contributions to developing countries – in 2020 by as much as 225%, according to investigations by Oxfam International.

Inflating the figures

The report estimates between just 21-24.5 billion US dollars as the “true value” of climate finance provided in 2020, against a reported figure of 68.3 billion US dollars in public finance that rich countries said was provided (alongside mobilised private finance bringing the total to 83.3 billion US dollars).

The global climate finance target is supposed to be 100 billion US dollars a year, an amount which is slightly more than the 83 billion US dollars the world’s biggest nuclear powers spent in one single year– 2021, on such weapons of mass destruction.

Furthermore, “the combined profits of the largest energy companies in the first quarter of this year are close to 100 billion US dollars,” said already last august the UN Secretary-General António Guterres, adding that it was “immoral” that major oil and gas companies are reporting “record profits”, while prices soar.

“Very misleading”

Moreover, “rich countries’ contributions not only continue to fall miserably below their promised goal but are also very misleading in often counting the wrong things in the wrong way. They’re overstating their own generosity by painting a rosy picture that obscures how much is really going to poor countries,” said Nafkote Dabi, Oxfam International Climate Policy Lead.

Mostly loans

“Our global climate finance is a broken train: drastically flawed and putting us at risk of reaching a catastrophic destination. There are too many loans indebting poor countries that are already struggling to cope with climatic shocks.”

There is too much “dishonest” and “shady” reporting. The result is the most vulnerable countries remain ill-prepared to face the wrath of the climate crisis, warned Dabi.

Rich countries’ “manipulation”

Oxfam research found that instruments such as loans are being reported at face value, ignoring repayments and other factors. Too often funded projects have less climate focus than reported, making the net value of support specifically aiming at climate action significantly lower than actual reported climate finance figures.

Currently, loans are dominating over 70% provision (48.6 billion US dollars) of public climate finance, adding to the debt crisis across developing countries.

“To force poor countries to repay a loan to cope with a climate crisis they hardly caused is profoundly unfair. Instead of supporting countries that are facing worsening droughts, cyclones and flooding, rich countries are crippling their ability to cope with the next shock and deepening their poverty.”

Least Developed Countries’ external debt repayments reached 31 billion US dollars in 2020.

Such ‘funding’ is primarily based on loans

“A climate finance system that is primarily based on loans is only worsening the problem. Rich nations, especially the heaviest-polluting ones,” said Dabi.

A key way to prevent a full-scale climate catastrophe is for developed nations to fulfil their 100 billion US dollars commitments and genuinely address the current climate financing accounting holes. “Manipulating the system will only mean poor nations, least responsible for the climate crisis, footing the climate bill,” said Dabi.

Stalling all efforts

Other findings by this global confederation which includes 21 member organisations and affiliates reveal that an average of 189 million people per year have been affected by extreme weather-related events in developing countries since 1991 – the year that a mechanism was first proposed to address the costs of climate impacts on low-income countries.

The report, The Cost of Delay, by the Loss and Damage Collaboration – a group of more than 100 researchers, activists, and policymakers from around the globe – highlights how rich countries have repeatedly stalled efforts to provide dedicated finance to developing countries bearing the costs of a climate crisis they did little to cause.

Six fossil fuel companies

“Analysis shows that in the first half of 2022 six fossil fuel companies combined made enough money to cover the cost of major extreme weather and climate-related events in developing countries and still have nearly $70 billion profit remaining.”

The report reveals that 55 of the most climate-vulnerable countries have suffered climate-induced economic losses totalling over half a trillion dollars during the first two decades of this century as fossil fuel profits rocket, leaving people in some of the poorest places on earth to foot the bill.

Super profits. And massive deaths

It also reveals that the fossil fuel industry made enough super-profit between 2000 and 2019 to cover the costs of climate-induced economic losses in 55 of the most climate-vulnerable countries, almost sixty times over.

The report estimates that since 1991, developing countries have experienced 79% of recorded deaths and 97% of the total recorded number of people affected by the impacts of weather extremes.

The analysis also shows that the number of extreme weather and climate-related events that developing countries experience has more than doubled over that period with over 676,000 people killed.

The entire continent of Africa produces less than 4% of global emissions and the African Development Bank reported recently the continent was losing between five and 15% of its Gross Domestic Product (GDP) per capita growth because of climate change.

Enormous gains

Lyndsay Walsh, Oxfam’s Climate policy adviser and co-author of the report said: “It is an injustice that polluters who are disproportionately responsible for the escalating greenhouse gas emissions continue to reap these enormous profits while climate-vulnerable countries are left to foot the bill for the climate impacts destroying people’s lives, homes and jobs.”

Meanwhile, in addition to manipulating the figures and further indebting the poor, business continues as usual. The largest polluters–the fossil fuels private companies make more and more profits, and rich countries’ politicians are set to increase their subsidies to these fuels to nearly seven trillion by 2025.

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Solar Power Brings Water to Families in Former War Zones in El Salvador — Global Issues

Aerial view of the community water system located in the canton of El Zapote, in the municipality of Suchitoto in central El Salvador. Mounted on the roof are the 96 solar panels that generate the electricity needed to power the entire electrical and hydraulic mechanism that brings water to more than 2,500 families in this rural area of the country, which in the 1980s was the scene of heavy fighting during the Salvadoran civil war. CREDIT: Alex Leiva/IPS
  • by Edgardo Ayala (suchitoto, el salvador)
  • Inter Press Service

SUCHITOTO, El Salvador, Nov 03 (IPS) – The need for potable water led several rural settlements in El Salvador, at the end of the 12-year civil war in 1992, to rebuild what was destroyed and to innovate with technologies that at the time seemed unattainable, but which now benefit hundreds of families.

Several communities located in areas that were once the scene of armed conflict are now supplied with water through community systems powered by clean energy, such as solar power.

“The advantage is that the systems are powered by clean, renewable energies that do not pollute the environment,” Karilyn Vides, director of operations in El Salvador for the U.S.-based organization Companion Community Development Alternatives (CoCoDA), told IPS.

Hope where there was once war

The organization, based in Indianapolis, Indiana, has supported the development of 10 community water systems in El Salvador since 1992, five of them powered by solar energy.

These initiatives have benefited some 10,000 people whose water systems were destroyed during the conflict. Local residents had to start from scratch after returning years later.

A local resident of the Sitio el Zapotal community in El Zapote canton, El Salvador, turns on the tap to fill his sink to collect the water he will need for the day. A total of 10,000 people have benefited from the five solar-powered community water projects in El Salvador since 2010. CREDIT: Edgardo Ayala/IPS

This small Central American country experienced a bloody civil war between 1980 and 1992, which left some 75,000 people dead and more than 8,000 missing.

“Before leaving their communities, some families had water systems, but when they returned they had been completely destroyed, and they had to be rebuilt,” Vides said, during a tour by IPS to the Junta Administradora de Agua Potable or water board in the canton of El Zapote, Suchitoto municipality, in the central Salvadoran department of Cuscatlán.

In El Salvador, the term Junta Administradora de Agua Potable refers to community associations that, on their own initiative, manage to drill a well, build a tank and the entire distribution structure to provide service where the government has not had the capacity to do so.

There are an estimated 2,500 such water boards in the country, which provide service to 25 percent of the population, or some 1.6 million people, according to local environmental organizations.

But most of the water boards operate with hydroelectric power provided by the national grid, while the villages around Suchitoto have managed, with the support of CoCoDA and local organizations, to run on solar energy.

The community water project in the Salvadoran community of Sitio El Zapotal was driven by the efforts of local residents and international donors. At the foot of the catchment tank stand Karilyn Vides of CoCoDA, consultant and former guerrilla fighter René Luarca (front) – a member of the project’s water board – and former guerrilla Luis Antonio Landaverde (left), together with two technicians. CREDIT: Edgardo Ayala/IPS

This area is located on the slopes of the Guazapa mountain north of San Salvador, which during the civil war was a key stronghold of the then guerrilla Farabundo Martí National Liberation Front (FMLN), now a political party that governed the country between 2009 and 2019.

Some of the people behind the creation of the water board in the canton of El Zapote were part of the guerrilla units entrenched on Guazapa mountain.

“This area was heavily bombed and shelled, day and night,” Luis Antonio Landaverde, 56, a former guerrilla fighter who had to leave the front lines when a bomb explosion fractured his leg in July 1985, told IPS.

“A bomb dropped by an A37 plane fell nearby and broke my right leg, and I could no longer fight,” said Landaverde, who sits on the El Zapote water board.

The Junta de Agua del Cantón El Zapote, in central El Salvador, is the largest solar-powered community water project in the country, although it uses electricity from the national grid, from hydroelectric sources, as backup. CREDIT: Edgardo Ayala/IPS

Peasant farmers in the technological vanguard

At the end of the war in 1992, communities in the foothills of Guazapa began to organize themselves to set up their community water systems, at first using the national power grid, generated by hydroelectric sources.

Then they realized that the cost of the electricity and bringing the grid to remote villages was too high, and necessity and creativity drove them to look for other options.

“I was already very involved in alternative energy, and we thought that bringing in electricity would be as expensive as installing a solar energy system,” René Luarca, one of the architects of the use of sunlight in the community systems, told IPS.

The first solar-powered water system was built in 2010 in the Zacamil II community, in the Suchitoto area, benefiting some 40 families.

And because it worked so well, four similar projects followed in 2017.

Two were carried out around that municipality, and another in the rural area of the department of Cabañas, in the north of the country.

Given the project’s success, an effort was even made to develop a similar system in the community of Zacataloza, in the municipality of Ciudad Antigua, in the department of Nueva Segovia in northwestern Nicaragua.

The total investment exceeded 200,000 dollars, financed by CoCoDA’s U.S. partner organizations.

However, these were smallscale initiatives, benefiting an average of 100 families per project.

“There were eight panels, they were tiny, like little toys,” said Luarca, 80, known in the area as “Jerry,” his pseudonym during the war when he was a guerrilla in the National Resistance, one of the five organizations that made up the FMLN.

Then came the big challenge: to set up the project in the canton of El Zapote, which would require more panels and would provide water to a much larger number of families.

“This has been the biggest challenge, because there are no longer four panels – there are 96,” said Luarca.

A valve connected to the pump of the community water system in central El Salvador measures the pressure at which the liquid is being pumped to a catchment tank, located on a hill five kilometers away. The water flows down by gravity to the beneficiary families, who pay a monthly fee of six dollars for 12 cubic meters of water. CREDIT: Edgardo Ayala/IPS

The water system in El Zapote is a hybrid setup. This allows it to use solar energy as the main source, but it is backed up by the national grid, fueled by hydropower, when there is no sunshine or there are other types of failures.

“Since it is a fairly large system, it is not 100 percent solar, but is hybrid, so that it has both options,” explained Eliseo Zamora, 42, who is in charge of monitoring the operation of the equipment.

Using the pump, driven by a 30-horsepower motor, water is piped from the well to a tank perched on top of a hill, about five kilometers away as the crow flies.

From there, water flows by gravity down to the villages through a 25-kilometer network of pipes that zigzag under the subsoil, until reaching the families’ taps.

The project started when the armed conflict ended, but it took several years to buy the land, with resources from the six communities involved, and to acquire the machinery for the hydraulic system. It began operating in 2004 with electricity from the national grid, before CoCoDA switched to supporting the solar infrastructure.

For the installation of the panels and the adaptation of the system, the water board contributed 14,000 dollars, part of it from the hours worked by the villagers.

The new solar power system was inaugurated in June 2022 and benefits some 10 communities in the area – more than 2,500 families.

The service fee is six dollars per month for 12 cubic meters of water. For each additional cubic meter, the users are charged 0.55 cents.

“Our water is excellent, it is good for all kinds of human consumption,” the president of the water board, Ángela Pineda, told IPS.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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Campaign for a Fossil Fuels Non-proliferation Treaty Gathers Steam — Global Issues

Petrol pump in Rome. Credit: Paul Virgo/IPS
  • by Paul Virgo (rome)
  • Inter Press Service

ROME, Nov 03 (IPS) – When it comes to moral endorsements, having the Vatican’s backing takes some beating. So the international campaign for a legally binding Fossil Fuel Non-Proliferation Treaty took a huge step forward in July when Cardinal Michael Czerny, the prefect of the Dicastery for Promoting Integral Human Development, gave it his total support.

“The planet already is 1.2°C hotter (with respect to pre-industrial levels), yet new fossil fuel projects every day accelerate our race towards the precipice,” the Czech-Canadian prelate said.

“Enough is enough. All new exploration and production of coal, oil, and gas must immediately end, and existing production of fossil fuels must be urgently phased out.

“This must be a just transition for impacted workers into environmentally sound alternatives. The proposed Fossil Fuel Nonproliferation Treaty holds great promise to complement and enhance the Paris Agreement”.

The name of the proposed treaty has a familiar ring as it is inspired by the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) that came into force in 1970 and successfully helped reduce the threat of nuclear war.

The supporters of the proposed treaty say that, like atomic bombs, fossil fuels pose an existential threat to humankind as they are the main cause of the greenhouse gas emissions that are driving the climate crisis.

“Fossil fuels have been equated as weapons of mass destruction because of the way they threaten our ability to protect livelihoods, security, and the planet,” Rebecca Byrnes, the Deputy Director of the Fossil Fuel Treaty Initiative, told IPS.

“Fossil fuels are responsible for 86% of carbon emissions in the past decade. So despite our efforts over the last 30 years, emissions have continued to increase, and this hasn’t changed since the Paris Agreement was signed seven years ago”.

Under the Paris Agreement, the international community agreed to cut greenhouse gas emissions to a degree necessary to try to limit global temperature rises to 1.5C, and, failing that, to keep them “well below” 2C above pre-industrial levels.

But Byrnes said that, as things currently stand, governments plan to produce more than double the amount of fossil fuels consistent with limiting global temperature rises to within a 1.5-degree trajectory by 2030, and 10% more than their own climate pledges.

So, she argued that a separate treaty specifically dealing with fossil fuels is needed to stop States from making empty pledges on climate policy.

“We need both domestic action and international cooperation to explicitly stop the expansion of fossil fuel production and therefore emissions,” she said.

“Only addressing half of the equation has allowed countries and companies to claim climate leadership while also supporting new coal, oil and gas extraction projects, directly or indirectly.

“In countries that are particularly dependent on fossil fuel profits for government revenue and economic development, fossil fuel supply is now a driver of demand.

“It will not be possible to reduce demand for, and therefore emissions from, fossil fuels without first breaking this fossil-fuel lock-in through phase-out, economic diversification measures and finding new development opportunities.

“A Fossil Fuel Non-Proliferation Treaty will complement and implement the Paris Agreement by directly addressing the supply side of the equation and providing support to fossil-fuel-dependent developing countries to make this transition”.

One of the positive aspects of the treaty would be that it would help put an end to the perverse situation in which States are sometimes forced to pay compensation to polluters when they put a halt to fossil-fuel projects because of the protection that corporations enjoy under legal mechanisms such as the Energy Charter Treaty.

“A Fossil Fuel Non-Proliferation Treaty will mitigate the risk of legal liability faced by country governments in both national courts and international tribunals, by providing legal justification for phase-out policies,” Byrnes said.

Critics have suggested the plan is simply too ambitious to ever come to fruition.

The treaty campaign might have the Vatican on its side, but the fossil-fuel lobby has powerful allies, lots of money and it has not been shy about using its clout to sow doubt about the climate crisis and stop or delay emissions cuts.

“Some of the criticism we get on the idea of the treaty is that it’s unfeasible and that we don’t have time to negotiate something like this,” said Byrnes.

“The same was erroneously said about weapons treaties.

“But we don’t have time for more of the same. We know it’s unlikely that oil-producing countries will enthusiastically embrace a Fossil Fuel Non-Proliferation Treaty and the fossil fuel industry has huge influence.

“But so did the tobacco industry at one point before the formation of the WHO Framework Convention on Tobacco Control.

“Just creating the concept of a treaty is already sparking new ambition and new conversations”.

Indeed, the treaty campaign is on a roll.

It has the support of over 100 Nobel Laureates, including the Dalai Lama, and dozens of the world’s biggest cities, such as London, Barcelona, Paris, Montreal, Lima, Buenos Aires and Los Angeles.

In September the World Health Organization joined the host of international organizations backing the campaign.

“The modern addiction to fossil fuels is not just an act of environmental vandalism. From the health perspective, it is an act of self-sabotage,” said WHO Director-General Dr Tedros Adhanom Ghebreyesus.

Vanuatu became the first nation-state to call for a fossil fuel treaty in the speech made by President Nikenike Vurobaravu at this year’s United Nations General Assembly.

And on October 20 the European Parliament called on nation-states to “work on developing a Fossil Fuel Non-Proliferation Treaty” in a resolution outlining its demands for COP27.

“The world has seen treaties deliver when the world has needed to manage, restrict and phase out dangerous products, including weapons of mass destruction, ozone depleting substances and tobacco,” concluded Byrnes .

“Today, we see oil and gas are fuelling war in Ukraine and elsewhere, and are a paramount danger that demands of us and world governments to rally behind a Fossil Fuel Non-Proliferation Treaty”.

It is possible to endorse the call for a Fossil Fuel Non-Proliferation Treaty via the campaign’s website.

Furthermore, the Parents For Future Global network of climate parent groups has launched a letter that people can sign online to express their support.

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How about a Global Auction — Global Issues

There are over 8,500 coal power plants in the world, with over 2,100 GWs of capacity.  These plants generate about 10 gigatons of CO2 emissions  per year, nearly 30% of the global total. Credit: Bigstock
  • Opinion by Philippe Benoit, Chandra Shekhar Sinha (washington dc)
  • Inter Press Service

WASHINGTON DC, Nov 02 (IPS) – Report after report highlights that we can only achieve the greenhouse gas (GHG) emission reductions required by the climate goals of the Paris Agreement if much of the existing coal power generation capacity is retired early.  To this end, one concept that deserves greater consideration is conducting an auction for early retirement of coal power plants worldwide: a global coal retirement auction. This article sets out the broad outlines of how this global auction might operate.

The International Energy Agency (IEA) has estimated that there are over 8,500 coal power plants in the world, with over 2,100 GWs of capacity.  Although these plants are concentrated in a limited number of countries (notably China, followed by India and the U.S.), there are coal plants running in over 100 countries with over 2,000 owners.

These plants generate about 10 gigatons of CO2 emissions  per year, nearly 30% of the global total.  This  level of emissions from coal is incompatible with either the “well below 2oC” or the more ambitious ”1.5oC” temperature targets set out in the Paris Agreement.

Accordingly, climate/development organizations, like the Asian Development Bank (ADB), the World Bank, the IEA and RMI, are exploring programs to effect the early retirement of these coal plants.

But closing these plants presents two important challenges.  First, retiring these plants removes electricity production that many countries rely upon for their economic development … production that would need to be replaced with preferably low-carbon sources.  Second, owners are generally unwilling to shutter revenue-generating plants and want financial compensation for the returns they would forego from the premature retirement of their asset.  This article addresses this second constraint.

There are various regulatory mechanisms that can be used to push early retirement, such as mandating closure of plants or imposing a carbon tax or other cost that makes operating the plant uneconomic.

A completely different tack is to entice closures by paying the owners to do so.  This is the premise of, for example, the ADB’s innovative Energy Transition Mechanism.

But what’s a fair price? Perhaps, however, that’s not the right question. Rather, at what price are the owners willing to shutter their plants? Given that there are more than 8,500 coal power plants operating with different technical and revenue characteristics, and over 2,000 plant owners in diverse financial situations following distinctive corporate strategies (including numerous state-owned enterprises), the answer will vary.

A technique that has been used in this type of context of multiple actors is an “auction”. While in the traditional context, a seller looks to get the highest price from multiple possible buyers through an auction, in this case, we have a buyer that is interested in paying the lowest price to different plant owners (i.e., the sellers) for the retirement of their coal plants.

This is referred to as a “reverse auction”.  This tool has been used to acquire new power production, including renewables, at low prices, and specifically in the climate context to attract cost-effective investments that reduce methane emissions.

The reverse auction mechanism could be used to solicit proposals from coal power plant owners as to the price at which they would be willing to close their plant.  Conceptually, this could be done on the basis of MWs of installed power generation capacity. Under the auction, an interested coal plant owner would offer to sell — more specifically, to shutter — their MWs of plant capacity by a fixed time at a proposed price.

Importantly, the climate benefit sought by the auction is not from the decommissioning of MWs of capacity itself, but rather from the GHG emissions that would be avoided by retiring that capacity. Accordingly, for any coal retirement tender, it will be necessary to estimate the level of emissions that would be avoided.

This determination will be based on several factors, including the particular plant’s efficiency, remaining operational life and other technical characteristics, the type of coal used, and the amount of electricity production projected to be foregone through early retirement given the power system’s expected demand for electricity from that plant.

Tenders should include sufficient information to evaluate these items and, by extension, the level of avoided emissions and related climate benefit to be produced from the proposed retirement. This, in turn, will drive how much the auction buyer should be willing to pay for the tender.

Moreover, because it would be largely counter-productive from a climate perspective to pay to retire existing coal plants to see that money used directly (or indirectly) to build new fossil fuel generation, the tender by the plant owner would need to be accompanied by an undertaking not to reinvest in new fossil fuel generation.

As has been repeatedly explained, CO2 emissions have a global impact that is essentially unaffected by the geographic location of the emitting plant. Given this global nature of emissions, the auction would likewise be conducted at a worldwide level as a global auction.  From India to Indonesia, from South Africa to South Korea, from Poland to Australia, any plant anywhere would be eligible to participate in the global auction.

Given this scope, an international organization like the United Nations or a multilateral development bank would be well positioned to provide the platform for this auction.  One could imagine a system where the auction bidding process sets out eligibility criteria for projects, the methodology for estimating GHG emission reductions, and other key bid-submission parameters.

Significantly, while the bidding process would be managed on an integrated basis, the funding and selection of winners need not be. Rather, a system that allows for the matching of interested coal retirement buyers with individual plant owners could be used.

For example, buyers and their funding could be mobilized on a plant-by-plant basis based on information submitted by the plant owner through the auction process.  Indeed, many potential funders have areas of focus that could lead them to be attracted to retiring coal assets only in certain countries (e.g., funders interested in a targeted set of developing countries).  The proposed auction structure could accommodate these preferences. Moreover, the global auction could also operate in association with country-specific approaches.

One potential source of funding for coal retirements tendered under the auction is the potentially large amounts of capital to be mobilized through expanded carbon credit mechanisms under development. Tapping into these mechanisms might require establishing defined project eligibility criteria, frameworks for calculating GHG emissions reductions, and associated monitoring and verification systems to enable payments for emission reductions at the time of decommissioning based on a price for emission reduction (“carbon”) credits.

It is also important to recall the first constraint noted earlier, namely that countries, and particularly developing countries, will need more electricity to power further economic and social development.  Accordingly, any global auction to retire coal plants needs to be coupled with a program to fund new renewables electricity generation.

Climate change is a global challenge affected by GHG emissions from anywhere.  We need to reduce emissions from coal power generation and that requires some program to encourage and entice owners to shutter their plants.  A global auction, conducted by the United Nations or a similar international organization, would help to identify opportunities where willing plant owners and interested funders can make a deal.

Philippe Benoit has over 20 years working on international energy, finance and development issues, including management positions at the World Bank and the International Energy Agency. He is currently research director at Global Infrastructure Analytics and Sustainability 2050.

Chandra Shekhar Sinha is an Adviser in the Climate Change Group at the World Bank and works on climate and carbon finance. He previously worked at JPMorgan, TERI-India, UNDP, and the Kennedy School of Government at Harvard University.

© Inter Press Service (2022) — All Rights ReservedOriginal source: Inter Press Service

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