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How can green growth benefit Africa?

Eun Joo Allison Yi's picture
Photo: Sarah Farhat/World Bank Group


What exactly do we mean by green growth? For us, it’s not just about riding bikes and planting trees. The Korea Green Growth Trust Fund (KGGTF) defines green growth as adopting an innovative approach toward reaching nations’ goals for sustainable development and addressing climate change. It is a framework for decision-making and a proven process for turning people’s hopes into reality.

New climate finance model in Morocco rewards low-carbon policies

Venkata Ramana Putti's picture
 Koza1983


Morocco, the host of COP22 happening this week and next in Marrakech, is an example of a country that is working closely with the World Bank and other organizations to shift its economy onto a low carbon development path.

It just submitted its official climate plan, or nationally determined contribution, NDC, where it pledges a 42% reduction below business-as-usual emissions by 2030. This is 10 percentage points more ambitious than it previously laid out, ahead of Paris, and we see the plan affecting a growing number of sectors in the economy. Morocco plans a $13 billion expansion of wind, solar and hydroelectric power generation capacity and associated infrastructure that should see the country get 42% of its electricity from renewable sources by 2020, ramping up to 52% by 2030.

Prices seen rising for oil and other commodities in 2017

John Baffes's picture

Prices for most commodities, including oil, are forecast to rise in 2017 as a long period of declining prices appears to be bottoming out, according to the October Commodities Markets Outlook.

Oil prices are forecast to rise to $55 per barrel next year from $43 per barrel in 2016 as markets readjust after an era of abundant supply that outpaced demand. Energy prices, which also include coal and natural gas, are forecast to jump 24 percent in the coming year. The decision in September of the Organization of the Petroleum Exporting Countries (OPEC) to resume limiting oil production is another important factor behind the higher price forecast.

Water markets can support an improved water future

Brian Richter's picture


Fresh water touches every part of daily life—from drinking water and sanitation, to agriculture and energy production. Unfortunately, for nearly half of the world’s population, water scarcity is a growing issue with devastating impacts to our communities, economies and nature. In the past, countries have primarily turned to more supply-side infrastructure, including reservoirs and canals, as solutions to increasing water demands. But we can no longer build our way out of scarcity. We must find ways to do more with less, and impact investment can provide a catalyst for revolutionary changes in water management.  

Water markets can be a powerful mechanism for alleviating water scarcity, restoring ecosystems and driving sustainable water management. Water markets are based upon water rights which can be bought and sold, enabling water to be transferred from one user to another. A well-managed water market provides economic flexibility, encourages water saving measures and brings a variety of stakeholders to the table to find balance between the water needs of people and nature.

The Nature Conservancy’s new report, “Water Share: Using water markets and impact investment to drive sustainability,” explores the potential for water markets and impact investment to serve as part of the solution to global water scarcity. Water markets, when paired with creative investment solutions including The Nature Conservancy’s concept of Water Sharing Investment Partnerships, can help provide a more water-secure future for cities, agriculture, industries and nature.

Improved market sentiment and a weakening dollar buoy commodity price indexes

John Baffes's picture

Most commodity price indexes rebounded in February-March from their January lows on improved market sentiment and a weakening dollar. Still, average prices for the first quarter fell compared to the last quarter of 2015, with energy prices down 21 percent and non-energy prices lower by 2 percent according to the April 2016 Commodity Markets Outlook.

Sustainable development and the demand for energy

Mahyar Eshragh Tabary's picture


This is part of a series of blogs focused on the Sustainable Development Goals and data from the 2016 Edition of World Development Indicators.

Between 1990 and 2013 worldwide energy use increased by about 54 percent, more than the 36 percent increase in the global population. Access to energy is fundamental to development, but as economies evolve, rising incomes and growing populations demand more energy.  Sustainable Development Goal 7 seeks to ensure access to affordable, reliable, sustainable and modern energy for all and achieving this will require increasing access to electricity, the take-up of clean fuels and renewable energies, and energy efficiency.

Chart: Countries Where over 80% of Electricity is Renewable

Tariq Khokhar's picture

A fifth of the world's electricity production in 2012 came from renewable energy sources such as solar, wind, geothermal, and hydropower. The International Energy Agency estimates this could rise to a quarter of the world's production by 2020.

Note: I picked "over 80%" just for emphasis - I was surprised by the countries in Sub-Saharan Africa such as Zambia where hydropower is a big part of the energy generation mix. You can see a map with values for all countries with available data here.

In response: the Dutch disease and market forces

Hans Timmer's picture
The following is a response to an earlier blog post by Ulrich Bartsch and Donato De Rosa
 


Although there exists plenty of analysis of the Dutch disease, the resource curse, and Hotelling’s rule to fill several large libraries, there is nonetheless still ample room for debate about optimal policies in resource-rich countries. What is the optimal pace of extraction? Should they diversify? If so, how should they diversify and when should they diversify? What role should sovereign wealth funds play? Can the destabilizing adjustment process in the wake of an oil price collapse be avoided?

In a recent blog, Ulrich Bartsch and Donato De Rosa revisit the issue of resource revenue management. There are many good elements in this analysis, but there is one big problem: The same rigor that is used to analyze the goods markets is not used to analyze the accumulation of assets. While market forces are declared essential in the goods markets, little is said about the role of market forces in the accumulation of assets.
 
Let’s explore a bit more the relation between market forces, asset accumulation, and comparative advantages.

De-risking climate-smart investments

Rachel Stern's picture
 CIF / World Bank
The city of Ouarzazate in Morocco will host what will become one of the largest solar power plants in the world. Photo: CIF / World Bank


The investment needs for low-carbon, climate-resilience growth are substantial. Public resources can bridge viability gaps and cover risks that private actors are unable or unwilling to bear, while the private sector can bring the financial flows and innovation required to sustain progress. For this partnership to reach its full potential, investors need to be provided with the necessary signals, enabling environments, and incentives to confidently invest in emerging economies.  

Natural Capital Accounting: Going beyond the numbers

Stig Johansson's picture
Guatemala. World Bank

Here are some facts that you might not know: Do these numbers just seem like bits of trivia? In fact, these are all important results that came out of natural capital accounting (NCA) – a system for generating data on natural resources, such as forests, energy and water, which are not included in traditional statistics. NCA follows standards approved by the United Nations to ensure trust, consistency and comparison across time and countries.
 
The results above are among the numerous NCA findings that are being generated every year, with support from a World Bank-led global partnership called Wealth Accounting and the Valuation of Ecosystem Services (WAVES). In response to the growing appetite for information on NCA, WAVES has set up a new Knowledge Center bringing together resources on this topic.

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