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Trading methane for housing

Kai-Uwe Barani Schmidt's picture

Three global leaders coming together to deal with climate change was the headline grabbing moment for the recent C40 summit in Sao Paulo (read A tale of three men and 40 cities). Away from the cameras and sound bites was a field trip to Heliopolis, one of Sao Paulo’s biggest slums to drive home the messages that were being discussed in the conference.

As our bus convoy reached the construction site of Heliopolis, we saw round buildings resembling refinery towers. These were brand new apartment buildings for hundreds of Sao Paulo residents who currently live in the Heliopolis slum without proper access to basic services.

And while the round design of the buildings was eye-catching, the real catch is the way this project is being financed: A good portion of the finance comes from carbon finance credits that the city gets through a waste recycling project called Bandeirantes Landfill Gas to Energy Project (BLFGE) in which the methane of biomass waste (which accounts for 60% of Brazilian waste) is converted into energy. This way of generating energy qualifies for carbon credits.

Five ways to boost climate innovation in Ethiopia

Anthony Lambkin's picture

Semi-constructed skyscrapers dotting the horizon, shoppers, commuters and students flooding the sidewalks and a sea of trucks, cars and buses - all fighting for their own space along Bole road, Addis’ main thoroughfare. The signs of a decade of 10% annual economic growth for Ethiopia were evident in the cab ride to the hotel. The energetic vibe of Addis also reminded me that despite rapid advancements, it was still a country with one of the highest poverty rates in the world, large rural populations without energy access, significant bio-diversity and environmental risks and a nascent private sector to deal with it all. 

To engage the private sector was the reason I was in Ethiopia. I was preparing for the business plan development of an Ethiopian Climate Innovation Center (CIC) similar to the Kenyan CIC launching later this year. The $15 million program will invest in and support early-stage companies wanting to become more involved in the booming local and international cleantech markets while becoming profitable and competitive.

However the suite of services developed for each CIC look different in each market and is therefore designed via a rigorous gaps, opportunities and needs analysis with local stakeholders.  While in Ethiopia, I met with a few of the 100-plus stakeholders that will take part in the design phase of the Center. Public and private sectors, development partners, NGOs and academia were eager to share their expertise and experience of what was needed for a CIC in Ethiopia. These are my thoughts following those discussions:

Fast forward to a cooler world

Richard Hosier's picture

At the C40 Summit in Sao Paolo last week, former President Clinton urged participating cities and the World Bank to make a dramatic reduction in methane and black carbon. He said it would help the earth buy some time on climate change. He has reasons to be worried: In Cancun last year, parties agreed to stabilize average global temperatures at a level not exceeding 2 degree C above pre-industrial levels. This looks difficult as 0.8 degree C warming has already taken place and GHG emissions continue to grow. 

Developed countries collectively reduced greenhouse gas (GHG) emissions by a mere 6.1% from 1990-2008. Compared to the fast track for warming, humanity is on the slow train to reducing carbon dioxide (CO2) emission reductions.

President Clinton’s statement follows two recent reports that point to emerging scientific awareness that a climate change strategy focusing exclusively on carbon dioxide (CO2) is neither the quickest nor the most effective way to achieve long-term climate stabilization. These reports focus on non-CO2 emissions that stay in the atmosphere for a shorter period of time than CO2. As a result, reducing emissions of these non-CO2 gases will result in a slowing of temperature rise over the first half of the 21st century, buying time both to adapt and to transition away from carbon. 

The first report, produced by UNEP and WMO, assesses black carbon and tropospheric ozone. Black carbon—basically soot—is produced by incomplete combustion of carbon fuels, particularly diesel, wood, and coal. It is a dark suspended particle or aerosol, technically not a GHG. It is frequently emitted together with light-colored aerosols (sulfates and organic carbon) which cool the climate. The latest research indicates that, on balance, the warming effect of black carbon overpowers the cooling effect of its companions. It stays in the atmosphere for only a few weeks before falling to earth. Its warming contribution comes from its black color, making it absorb heat while in the air. If it falls onto mountain or polar snow, it accelerates glacial melt.

The state of the carbon markets is Messy - not Messi

Andrew Steer's picture

Last week Barcelona brilliantly beat Manchester United to become the soccer Champions of Europe.  This week Barcelona hosted delegates at Carbon Expo, the annual jamboree for carbon marketers organized by the World Bank and others.  But sadly, the style, strength, efficiency and confidence shown by Messi, Villa, and Pedro are not much in evidence in global carbon markets today. More like my old fourth division club, Bexley United, which I believe has now ceased to exist.

  • There’s certainly a lot to be gloomy about in the world of carbon trading over the past year:
  • The overall size of the market worldwide shrank for the first time ever in 2010
  • The primary CDM market (Clean Development Mechanism) – the principal window of carbon markets to the developing world – fell another 46% to $1.5 billion, down from $7.4 billion in 2005, and the lowest since trading began in 2005.
  • Legislative disappointments in the USA, Australia and Japan, and the market have now become even more concentrated, with well over 90% of trades originating in Europe.
  • Serious irregularities and fraud in the European Trading System (ETS), and suspicions of monkey business in some CDM HFC (Hydrofluorocarbon) transactions.  

Above all, confidence in the post 2012 market, when the first Kyoto Protocol Commitment period comes to an end, is on the floor, and thus demand for post-2012 deliveries is close to zero.

These points are all documented in the Bank’s new State of Carbon Markets Report, 2011 launched this week. And yet 3,000 people turned up at the Carbon Expo this week, and seemed to doing deals and having a good time. Is there anything positive out there? Yes, actually.

First, the overall size of the market was still $142 billion, no small change, although overwhelmingly concentrated within the European Trading System.

A tale of three men and 40 cities

Dan Hoornweg's picture

Driving through Sao Paulo yesterday, I was struck by the power of cities. While cities are part of the climate change problem, they need to be part of the solution too. They are bigger and more energized than any individual or organization. Cities push and cajole; and cities act. Cities are where it all comes together.

Even more so when former President Bill Clinton, World Bank President Robert Zoellick, and New York City Mayor Michael Bloomberg joined forces in Sao Paulo. The accomplished gentlemen born less than a dozen years and 1,500 miles apart spoke and fielded questions with a worldly and gracious informality. The pleasant exchanges sat in contrast to the underlying gravity of their mission. Together they have determined to access their considerable resources to tackle one of the biggest challenges they’ve ever faced: climate change.

The location for the partnership launch is telling. With Mayor Kassab of Sao Paulo hosting this week’s C40 Large Cities Summit everyone reinforced the need for cities to be in this fight. C40 is a group of mayors of major cities of the world responsible for 12% of global emissions. It is not hard to imagine that the battle for sustainable development will be won or lost in our cities.

On behalf of the World Bank, President Zoellick and Mayor Bloomberg, representing the world’s most influential cities as Chair of C40, signed a Partnership MOU outlining how the two organizations will work more closely together and provide focused support to cities. The MOU outlines common tools and metrics, city- tailored finance, and enhanced city-to-city learning.

The `how-to' of renewable energy

Daniel Kammen's picture

Last month, I blogged about the Special Report on Renewable Energy Sources and Climate Change Mitigation of the Intergovernmental Panel on Climate Change (IPCC), for which I was a coordinating lead author. In that report we found that by 2050, roughly 80 percent of global energy demand could be met by tapping renewable sources. The IPCC’s best-case prediction is contingent on a big caveat, however. It is that government policies must “play a crucial role in accelerating the deployment of Renewable Energy (RE) technologies.”

Fair enough, but which policies work best? Which can be replicated widely? Which sectors need more radical new approaches? Given the complexity of energy technologies, and markets, modes of power generation, transmission, distribution, consumption, metering and billing, and the multiplicity of policies—feed-in tariffs, subsidies, ‘feebates’, renewable portfolio standards, and so on— policy makers are often scrambling for guidance.

As author for the Policy and Deployment chapter of the IPCC report, as well as a member of the Summary for Policymakers’ team, I am pleased to suggest a useful source: a recent Discussion Paper No. 22 produced by my World Bank colleague Gabriela Elizondo Azuela, along with Luiz Augusto Barroso, Design and Performance of Policy Instruments to Promote the Development of Renewable Energy: Emerging Experience in Selected Developing Countries.

Elizondo and Barroso studied grid-connected RE policy options used in six countries—Brazil, India, Indonesia, Nicaragua, Sir Lanka and Turkey. They find that sound governance is an essential condition for the success of policy incentives that aim to accelerate the integration of renewable energy. “For example,” Elizondo says, “legal and regulatory frameworks for grid connection and integration have to be in place before RE policy is introduced.” In the IPCC report we called this the ‘enabling environment’.

The infinite win

Flore de Préneuf's picture

A year-long drought has transformed farmers into full-time charcoal burners in the part of Eastern Kenya I visited last week. Delayed rains have also had an impact on farmers in greener parts of the country where land degradation and over-exploited soils are dragging yields down.

But the story that emerges from this man-altered landscape is not all bleak. A range of actors, energized by the food and climate crisis, are taking measures to restore the balance between productive land use and functioning ecosystems, in ways that enhance the resilience of both. 

Kenya's parliament recently requested that farmers put 10% of their farmland under tree cover. Rwanda announced in February a program to reverse the degradation of its soil, water, land and forest resources by 2035. Development partners like the World Bank and the Global Environment Facility have invested millions of dollars in improving the management of ecosystems to protect livelihoods, biodiversity, water access, and other vital services. The World Resources Institute has painstakingly mapped over 450 million hectares of degraded forest landscapes in Africa that could be restored (See map). In fact, the urge to heal the planet's sores has given birth to a booming ecosystem of NGOs, partnerships, social enterprises and research initiatives that build on each others' successes and share a broad vision for positive change.


We know how to triple maize yields using fertilizer trees. We know how to harvest water, slow erosion and store carbon. We even know how to get more milk out of cows by feeding them leaves from trees that stock carbon, provide firewood, fix nitrogen and retain soil moisture – in a changing climate! All the while, those practices help farmers feed their families, attract wildlife, build assets and pay for school fees... 

So why is this kind of "infinite win" work not happening on a more meaningful scale? The organizers of a three-day Investment Forum on Mobilizing Private Investment in Trees and Landscape Restoration in Africa this week in Nairobi are hoping to lift the veil on some of the constraints to sustainable tree-based investment and provoke more synergies between public and private interests.

Biofuels: Threat or opportunity for women?

Daniel Kammen's picture

In Africa, where two-thirds of farmers are women, the potential of biofuels as a low or lower-carbon alternative fuel, with applications at the household energy, community and village level, to a national resource or export commodity, has a critical gender dimension. The key question is: how will increased biofuel production affect women?

To look at the impacts on women, one logical approach is to use a computable general equilibrium model that tracks economic impacts of new crops and how patterns of trade and substitution will change. It’s important to account for the complexities involved, and rely not on a simple, traditional commodity model but one that tracks the impacts on women through changing prices and demands for crops to be sold on local and international markets. Who gains and who loses as prices change, and as the value of specific crops and of land changes?

In a detailed modeling effort based on the situation today in Mozambique, World Bank economist Rui Benfica and colleagues (Arndt, et al., 2011) found that even with significant land area available, the impacts of large increases in bio-fuels production — which are now under way — will do little to benefit women. This is largely because shifts to export-oriented and commercial agriculture, while they may raise export earnings, often exclude women. Women are often already far over-burdened by work and time commitments to subsistence farming, other income-generating activities and household work, including child care. The CGE model shows that financially profitable bio-fuel expansions may widen this gap, and reinforce this exclusion.

Eat your charcoal, child

Flore de Préneuf's picture

Many on this blog have written about the triple win of improved livelihoods, increased climate resilience and carbon capture. That vision of climate-smart agriculture and sustainable forest management is one of hope and necessity against a backdrop of food price volatility and climate extremes. Last week I was able to spend time studying the said “backdrop” – in the Eastern province of Kenya, where farmers who have last seen rain in March 2010 are cutting down trees to survive.

I spoke to farmers in Mboti, a community of about 100 families scattered in a world of thorny white bushes, red earth and isolated trees. Even in good times, they are brave people living on rain-fed agriculture in a region that gets much less average precipitation than Kenya's lush and populous highlands. They live on the edge – coexisting and sometimes competing with nomadic herders for salty water drawn from boreholes, one jerrycan at a time. 

But the farmers' endurance has been stretched to the limit. The heavy rains of November didn't materialize (it drizzled) and the April showers never did either. Priscilla Mwangangi, a 60 year-old widow, plowed her fields this spring hoping she could sow millet and sorghum, but instead spends her time minding a mound of charcoal which she feeds by chopping down acacia trees around her property. One big bag of charcoal sells for 400 Kenyan shillings – about $5.

A port of call for climate change

Vladimir Stenek's picture

The subject of the usefulness of harbors is one which I must not omit, but must explain by what means ships are sheltered in them from storms.…But if by reason of currents or the assaults of the open sea the props cannot hold the cofferdam together, then, let a platform of the greatest possible strength be constructed...” (Vitruvius. 1st century B.C.E. De architectura)

“(Ports’) main purpose is to provide a secure location where ships can berth.” (Stopford, M. 2009. Maritime Economics. Routledge. UK)

More than two millennia passed between the two writings. Yet, some of the basic requirements for ports haven’t changed much. The assessment of their adequacy in the light of current and future climate change impacts requires new approaches. Rising sea levels, shortening return periods of storm surges and floods, increased intensity in storms – to name a few –  can have detrimental impacts on port facilities and equipment. Using only historic climatic records to plan for the future is likely to be inadequate, especially for assets that have long lifetimes.

However, port facilities are only a part of a bigger picture. Even if a port is planned and operated with considerations of climate change impacts, the inland infrastructure and supply chain that serves a port –roads, rail or inland water transport - that is not designed to withstand projected climate impacts may pose the weak link and interrupt a port’s operations. Finally, the supply cargo transported through a port can be affected by extreme events (as in recent interruption of mining operations in Australia due to heavy floods, or the ongoing impacts of heavy rains and flood on the roads of Colombia) or the gradual change in climatic conditions (for example, agricultural products).

More than 80% of globally traded goods are transported by the sea and through the ports, and climate risks analyses and subsequent climate proofing need to be incorporated to key elements. However, a recent survey of several hundred ports found that although almost all respondents forecasted expanding new infrastructure in the next few years, most were not planning for climate change. A possible reason identified in the study is lack of information that is specific to climate risks to the ports: although the vast majority of respondents felt that ports should consider adaptation, only one third felt sufficiently informed.

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