Stirring Discussion over Coal and Green Energy
Getting access to electricity is the main
obstacle to growing economies in struggling nations.
That’s why some global organizations have
prioritized such electrification efforts.
Fossil fuels are the most readily available source.
But UN-sponsored groups are working with private
interests to usher in more green energies. While
many developing countries have made great strides to
electrify their economies, billions of people go
without power -- or by using solid fuels such as
wood to stay warm in the winter. A prosperous --
electrified -- nation will not only create jobs but
will also preserve basic human dignity.
“Providing sustainable energy for all could be the
biggest opportunity of the 21st century,” says the
UN Secretary-General Ban Ki-moon. It "is the golden
thread that connects economic growth, social equity,
and a climate and environment that enables the world
to thrive. This initiative is bringing together
governments, the private sector, and civil society
in a partnership that’s delivering real results.”
The UN-led program, called
Sustainable Energy for All Initiative, has three
objectives by 2030: to provide universal access to
energy; to double the rate of global energy
efficiency improvement and, to double the share of
renewable energy in the global mix. The initiative,
which launched a year ago, is boasting success,
saying that more than $50 billion has been mobilized
from the private sector. It also says that
multi-lateral banks have committed billions of
dollars to the effort.
Today, the UN says that 1.4 billion people do not
have any electricity. Most of those are in Asia and
Sub-Saharan Africa, where power generation is about
a tenth of where it is in other poor areas. Other
regions without power include swaths of Latin
America and the Philippines. Based on current
population trends, 1.2 billion -- or 15 percent of
the world's population -- will still lack such
access in 2030.
To be sure, coal is the quickest way to electrify
many developing areas. But with so much emphasis on
reducing greenhouse gas emissions, policymakers and
bankers alike are trying to figure out how to
achieve electrification using renewable energy.
Because most places that lack electricity are
located in rural regions, the demand could be met
through on-site, green generation.
Newfound Hope
To put the matter in perspective, loans from the
World Bank to renewable energy and energy
efficient projects made up $3.3 billion of the
institution's $8.2 billion portfolio in 2009. That’s
a 24 percent increase from previous business
practices. Fossil fuel investments still made up
about $2 billion of its total loan portfolio. The
bank says that “trade-offs” are a must.
A news story appearing in the
UK’s Guardian cites a UN official saying that a
lack of electricity supplies is the main culprit for
“wiping out” 2-3 percent of gross domestic output on
an annual basis. Creating a reliable -- but clean --
power supply is therefore paramount.
“The World Bank Group will step up its actions in
partnership with governments, the private sector and
civil society, mobilizing its financing, policy
expertise and convening power to achieve these
goals,” says Jim Yong Kim, head of the bank. His
reference is to the UN’s initiative, which is to
increase green energy and energy efficiency measures
while providing universal energy access.
Perhaps the goal of bringing electricity to the
masses and the cause of reducing the level of heat
trapping emissions are inconsistent with one
another? With the world economy projected to grow
four-fold over the next four decades, the potential
to increase carbon releases is real.
Ironically, the Organization for Economic
Cooperation and Development says that poorer
countries will have twice the level of carbon
emissions as those of their more prosperous
brethren. That's because the richer countries will
have access to the most modern pollution control
equipment while those in the developing nations will
rely on cheaper coal-fired power.
Already, China and India use coal to meet most of
their power needs. But their economies are in growth
mode, prompting them to use increasing amounts of
greener fuels and nuclear energy. To keep up the
pace, they need to attract western investors and
modern technologies.
“The private sector is a crucial partner in this
(UN) initiative and is fully ready to participate in
this new platform and build on the tremendous
results achieved to date,” says Chad Holliday, chair
of the Executive Committee of Sustainable Energy for
All.
The UN has a noble but daunting goal. Success would
mean improving the quality of life for billions. The
local job base would then expand while growing
economies and giving the now-impoverished a sense of
hope.
EnergyBiz Insider has been awarded the Gold for
Original Web Commentary presented by the American
Society of Business Press Editors. The column is
also the Winner of the 2011 Online Column category
awarded by Media Industry News, MIN. Ken Silverstein
has been named one of the Top Economics Journalists
by Wall Street Economists.
Twitter: @Ken_Silverstein
energybizinsider@energycentral.com
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