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extractive industries

2018 in Review: Energy and Extractives at the World Bank

Aarthi Sivaraman's picture

2018 continued to see major shifts in global energy markets and extractive industries, which were reflected in the work done by the World Bank in developing and middle-income countries. From expanding off-grid electricity projects in rural and remote areas, to announcing an ambitious $1 billion battery storage program, to a new initiative to help countries with coal mine closures, the Bank fulfilled existing commitments and announced new plans for 2019 and beyond.

Here are some highlights of the World Bank’s work in energy and extractives over the past year:

February
Riccardo Puliti, Senior Director and Head of Energy and Extractives at the World Bank, wrote a piece about how getting methane – which makes up 16 percent of greenhouse gas emissions -- out of energy production and use could provide a major boost to the fight against climate change.

March
In what is one of the largest programs of its kind in Africa, the World Bank is supporting Ethiopia’s efforts to take electricity to all its citizens by 2024 through the $375 million Ethiopia Electrification Program, which focuses on last-mile connections in addition to strengthening the capacity of the sector. The Program’s ultimate goal is to directly support new connections for over one million households in Ethiopia.
A video shows how investing in solar-powered mini-grids like this one in Ghana, is changing lives. In the towns around the Volta River, nearly 10,000 Ghanaians now enjoy uninterrupted power, which enhances security and brings new economic opportunities to these communities.

Making extractives work for the people

Cari Votava's picture

In many countries, natural resources and extractive minerals are lucrative state assets that fail to contribute to economic prosperity. In resource-rich Africa, regulatory mismanagement, corruption and theft of natural resource and extractive commodities have contributed to illicit financial flows, poverty, instability and in some cases financed civil wars linked to conflicts over control of state assets. 

Where to go for information on access to information

Jim Anderson's picture
Photo: World Bank

I get stirred up by all types of governance data, so in honor of the International Day for Universal Access to Information, I though I’d highlight a few efforts to measure access to information. Information on access to information, if you will.

Minerals and Metals Will Be Key to a Clean Environment

Daniele La Porta Arrobas's picture


The 2015 Paris Agreement on Climate Change was preceded by analysis covering the science and viability of response measures, including both adaptation to the impacts of climate change and measures to mitigate greenhouse gas (GHG) emissions. Mitigation issues typically covered the economic, policy, technology and sustainability implications of reducing emissions, but relatively little towards understanding the implications of a low-carbon future. 

For this reason, the World Bank decided to explore and study which minerals and metals will likely see an increase in demand to achieve a low-carbon future. Using wind, solar and energy storage batteries as proxies, The Growing Role of Minerals and Metals for a Low-Carbon Future report is one of the Bank’s contributions towards ensuring this topic is given its rightful place in the ongoing global climate change dialogue.

Based on climate and technology scenarios developed out of the International Energy Agency’s (IEA) Energy Technology Perspective, the World Bank developed a set of commodities demand projections up to 2050. We did so by providing best estimates on the uptake of three discrete climate-benefit technologies – wind, solar and energy storage batteries – required to help meet three different global warming scenarios of 20C, 40C, and 6oC. 
These technologies represent only a sub-set of a much broader suite of technologies and transmission systems required to truly deliver on a low-carbon future. Nevertheless, the findings are significant.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

 

Large-Scale Social Protest: A Business Risk and a Bureaucratic Opportunity
Governance Journal

The public versus private nature of organizations influences their goals, processes, and employee values. However, existing studies have not analyzed whether and how the public nature of organizations shapes their responses to concrete social pressures. This article takes a first step toward addressing this gap by comparing the communication strategies of public organizations and businesses in response to large-scale social protests. Specifically, we conceptualize, theorize, and empirically analyze the communication strategies of 100 organizations in response to large-scale social protests that took place in Israel during 2011.

Harnessing the Internet of Things for Global Development
ITU/CISCO/UNESCO Broadband Commission for Sustainable Development
This report explores the current use and potential of Internet of Things (IoT) technologies in tackling global development challenges, highlighting a number of specific instances where IoT interventions are helping to solve some of the world’s most pressing issues. It presents summary conclusions on what is required for the IoT to reach billions of people living in the developing world, and also to accelerate income growth and social development as a result.
 

Mining leaders focus on governance during the commodities downturn

Paulo de Sa's picture
Photo via Shutterstock

At this year’s Investing in African Mining Indaba in Cape Town, South Africa, leaders are not hiding their concerns about the commodities downturn.

Government representatives express their frustration for not having benefited enough during the boom. Policymakers lament the lack of planning that has left their countries with no cushion in their budgets, and companies are looking to cut costs so they can weather the storm. And most importantly, communities are feeling the economic impact as mines purchase less local supplies, generate fewer jobs and halt some operations. 

Not only are things slowing down, but it seems a golden opportunity has passed us by. Fatima Denton, Director of the United Nations Economic Commission for Africa, highlighted that Africa is less industrialized today than it was in 1990. After the minerals super cycle of 2000-2013, the percentage of manufacturing of African economies actually declined from 12% to 11%. 

Local content in extractive industries: a tool for economic diversification and sustainable development

Anita Marangoly George's picture
Photo by Dominic Chavez / World Bank

When you ask young people from developing countries what they want for their country, they often say opportunity. The next generation wants jobs and knowledge; they want to be connected to the global economy.

Extractive industries can foster these types of opportunities through investment in skills training and transfer of technology to local workers and companies. These technical skills are demanded in the global marketplace today and empower workers to expand their horizons and lower their risk of unemployment. 

We are discussing these issues today at a “Reconciling Trade and Local Content Development” conference we are co-hosting with the Mexican Ministry of Economy. This event aims to share knowledge on how investment in extractive industries can be leveraged to generate opportunities for economic diversification and employment.

When extractives companies include local business in their supply chain they foster sustainable growth and help end poverty. The most valuable contribution to long term sustainability comes from the ability of extractive industries to generate benefits through productive linkages with other sectors. The International Finance Corporation (IFC) helped make this happen in Barmer, India, where we supported a Skill Development Center that trained 7,000 people to work in the operations of Cairn Energy. Not only did this training create direct job opportunities for the local population, but the acquired skills fostered the creation of an entire eco-system of small and medium-size enterprises that provided products and services to the oil company and related sectors.

Mineral wealth for human development: The Texas way

Patricio V. Marquez's picture
A student with University of Texas at Austin Tower in the background. © qingwa/iStock


As countries look to domestic resources to help meet the ambitious development agenda laid out in 2015, there is value in looking at international experiences where mineral wealth has become a dedicated revenue stream for financing development efforts, particularly for investing in human capital (via public health or education).

Twelve energy stories you enjoyed reading in 2015

Andy Shuai Liu's picture

What are some stories that caught your attention in 2015?
 
They are ones that focus on people, data and events tied to sustainable growth, climate action and efforts to end energy poverty.
 
As we look ahead to 2016 we’d like to recap 12 popular stories that many of you read and shared in 2015. Thank you for a year of continued and growing readership. Tell us in a comment what you’d like to hear more of in the next year.  
 

The gas and mining industries take on gender-based violence in Papua New Guinea

Katherine C. Heller's picture
Photo: Tom Perry/World Bank

For many, the connection seems strange at first. What do gas and mining have to do with women’s economic and social empowerment, let alone gender-based violence? The reality is that in many extractive industries areas money from extractives flow predominantly to men. This can lead to adverse results: men have more say over how benefits are used; men have more access to related jobs, and the associated increase in available cash allows them to take second wives (which can in many cases cause violence in the home between wives); some men leave their families for jobs in the industry, while some use cash for alcohol or prostitution. 

These changes and stresses – also present when the benefits from mining don’t materialize as expected - can increase the risk of family and sexual violence, especially in fragile countries like Papua New Guinea (PNG).   


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