Back in March the Energy Sector Management Assistance Program (ESMAP) hosted an event here at the World Bank titled ‘Rethinking the Future of Energy’. One of our speakers was Duncan Clark, co-author of a recent book on energy and climate change. I came across Duncan while doing background research on the concept of supply-side constraints to fossil fuel extraction. It seems increasingly clear to me that demand-side climate change mitigation is always likely to be patchy in coverage (both within an economy, and between different countries), costly to implement due to the sheer number of point sources and transactions involved (and therefore regulations and policies required), and too psychologically distant from the real culprit: the fossil fuels we extract from the ground in ever-increasing quantities. Aside from a couple of vague references in the literature, Duncan is the first serious proponent for a supply-side approach to constraining carbon dioxide (CO2) emissions that I’ve come across.
In the late afternoon of June 17, as the streets of Mexico City transformed into probably the largest celebration of a tie game at the World Cup, I joined 200 other people filling the main hall of the Technology Museum of the Federal Electricity Commission. We would have to wait a little while for our event to start. Nothing that afternoon, not even the opening of the Conference on Energy Efficiency in Cities, would get in the way of the game between Mexico (ranked 20th in the world by FIFA) and Brazil (the favorite to win the tournament). And despite the fact that the game ended in a 0-0 tie, the mood of our Mexican hosts was upbeat and confident.
Is the shale gas revolution a brake on progress towards faster adoption of renewable energy? Many argue that it is, but there is also persuasive evidence that it could also boost integration of renewable energy into power grids, by providing a complement to intermittent sources of electricity.
“Does the solar home system work? Do you really get better lights? Or, is it just a big fuss?’ I have been asking solar home systems households in rural Bangladesh these basic questions for the past five years as part of my implementation review missions for the Rural Electrification and Renewable Energy Development program, which has installed over 2.8 million solar home systems since 2002. This has so far contributed to a 9% increase in access to electricity in Bangladesh.
Many African countries face a dilemma. After a decade of consistent economic growth, often propelled by high commodity prices, half the continent’s population still lives in poverty. Even if rising demand for raw materials from the booming cities of China and India, among others, has driven growth in Africa’s mining sector, most of the continent has not yet translated mineral wealth into industrialization and widespread economic development. Most African countries continue to export raw materials and then pay a premium to import the products made with them.
Twenty countries in sub-Saharan Africa are classified as “resource-rich” by the International Monetary Fund. Most of these resources are minerals such as iron ore, gold and bauxite, as well as oil and gas. But of these, 14 are ranked higher for GDP per person than they are for their score on the UN human-development index. So what constrains such resource wealth from yielding greater development gains?
At Indaba Mining, the annual gathering Feb. 3-5 in Cape Town of leaders of Africa’s mining sector—from government, corporations and civil society—the words “sustainability” and “stakeholder outreach” were ubiquitous. This focus on sustainability issues reflects impressive progress made in recent years around how mining can contribute to shared value.
Mining is a high stakes industry. For the growing list of countries looking to translate underground assets into tangible benefits above the ground, the ability to negotiate and implement a good deal is critical. However, capacities to do so are often weak. A handy resource is now available to help countries. And it’s free!
Most experts agree that energy efficiency is a critical building block for sustainable development. This is because improvements in energy efficiency strengthen a country’s energy security, increase competitiveness, ease shortages in energy supply, and lower environmental impacts including local and greenhouse gas emissions.
Why doesn’t it happen then?
I am a mining specialist, not a conflict specialist. But on my recent trip to Sierra Leone, I was struck by the ever-present need to look at extractive industries through the lens of conflict prevention. The devastating 11-year civil war in Sierra Leone, in large part fueled by local alluvial diamond mining, is impossible to separate from future mining development. With over 50,000 deaths due to the civil war, we cannot ignore the link between conflict and mining.