The world is in the grip of global climate change.
Thousands have perished and countless more have become refugees due to
the human-induced impacts of the world’s changing climate. Millions of
people are at risk from climate change, mainly the world’s poorest
living in the developing countries of Africa and Asia. Our hunger for
deriving the majority of our energy from the burning of fossil fuels
like coal, oil and gas, has resulted in the dumping of billions of
tonnes of greenhouse gases into the atmosphere, primarily carbon
dioxide (CO2). Industrialised countries bear the main responsibility,
but governments of developing countries are also to blame. Rather than
avoiding the mistakes of industrialised nations, the governments of
developing countries appear intent on repeating them and are being
enthusiastically aided by the very countries that have turned their
backs on dirty energy in favour of clean, renewable energy.
As most of the world’s developed economies rush to exploit clean
renewable energy sources like wind, solar and wave power, coal-fired
power generation is rapidly expanding in Asia where booming,
power-hungry economies make for rich pickings for companies mostly
based in OECD countries who no longer have domestic markets for their
dirty technologies.
The Impacts of Climate Change - Why action is needed now
From melting ice at the poles and retreating glaciers to extreme
weather events, floods and droughts, and the spread of diseases,
dangerous climate change is already with us. Scientists predict that
current rates of human-induced climate change will have the greatest
impacts on developing countries in Africa and Asia. Every year for the
past 20 years, an average of over 400 million people have been exposed
to floods in Asia. Between 1987 and 1997, 44% of all flood disasters
worldwide affected Asia, claiming 228,000 lives (93% of all
flood-related deaths worldwide) and resulting in economic losses of
around US $136 billion.
A small, but important step was achieved when the Kyoto protocol became
law on February 16, 2005 committing industrialised governments to
cutting greenhouse gas emissions to at least 5% below 1990 levels by
2008-2012. We are already committed to future warming and further
impacts due to the greenhouse gases already emitted and it will be
impossible to avoid a 1oC or more increase above pre-industrial levels
in the global average temperature. Climate impacts are already killing
people and destroying ecosystems, but to prevent some of the worst
impacts, we need to keep the average temperature rise to below 2ºC
above pre-industrial times and reduce it as fast as possible
thereafter. This 2-degree target means there must be a global cut
in greenhouse gas emissions by 50% from 1990 levels by the middle of
this century; industrialised countries need to cut their emissions by
at least 80% by 2050.
Achieving the necessary emission cuts means phasing out the use of
fossil fuels as a source of primary energy and rapidly expanding the
use of renewable energy sources coupled with energy efficiency
programmes and demand side management. But the expansion of coal use
throughout Asia is a major concern as coal produces more CO2 than other
fuel.
Kyoto now needs to develop and expand rapidly, extending the
international emissions trading system and providing more help for
developing countries to leapfrog dirty technology. The choice is clear
- there is none.
The Potential for Renewable Energy
Providing the necessary energy services without further destabilising
the climate or destroying the health, welfare and livelihoods of
communities, can be achieved by the rapid expansion of renewable energy
sources such as wind, solar, micro-hydro, wave and biomass power,
coupled with increasing energy efficiency and conservation.
However, the potential for the uptake of renewable energy is not being
realised, not because of technology failings but due to political and
fiscal barriers - chiefly the estimated US$250 and US$300 billion each
year in subsidies which give fossil fuels and nuclear power generation
such a market advantage over renewable energy.
Carbon Hypocrisy
The same governments who have agreed to cut greenhouse gas emissions
and to transfer clean technology to developing countries are directly
supporting an increase in global emissions and hooking these countries
into polluting technologies through their Multilateral Development
Banks (MDB) and Export Credit Agencies (ECAs). Australia and the US,
which cite the fact that developing countries don't have emission
reduction commitments, as justification for not signing the Kyoto
protocol, are pushing fossil fuels, in particular coal, to Asia through
funding and exports.
Financing Unsustainable Development
The transfer of 'dirty technology' is funded through government-backed
financial institutions, which provide the loans, insurance and the
guarantees needed to promote the coal addiction of the developing
world. Despite the global and local impacts of fossil fuel power
generation, and the availability of viable alternative solutions, more
coal fired power generation plants are planned for Asia funded by
various combinations of private banks, Multilateral Development Banks
(MDBs) like the World Bank and the Asian Development Bank (ADB) and
Export Credit Agencies (ECAs).
The 'Clean Coal' Myth
So-called 'clean coal' technologies, according to the industry, aim to
try to reduce polluting emissions, chiefly sulphur and nitrogen oxides
from coal power plants and increase efficiencies. But low sulphur is
irrelevant when it comes to greenhouse gas emissions. To address CO2
emissions, the coal industry points to 'end-of-pipe' technologies such
as carbon capture and storage (CCS) and using trees, so called carbon
sinks, to take out the CO2 their industry dumps into the atmosphere.
The notion that CCS will allow coal plants to be built and not add vast
amounts of greenhouse gases to the atmosphere is an illusion. At best
it will not be available for any new plants in the coming 15 to 20
years and is an expensive and difficult process that might not work in
the end. Much higher emission cuts can be made using currently
available natural gas, wind and modern biomass that are already in
widespread use. 1
Dumping Dirty Technology
Whichever way you wash it, pulverise it or scrub it, coal, from its
extraction to its end use, remains a dirty, dangerous, polluting source
of energy. Australia is the leading supplier of coal to the Asian
market. In 2002-03, 80 per cent (165 million tonnes) of Australian coal
exports went to Asia. Hong Kong based China Light and Power (CLP) is
another key player in the Asian Coal market and aims to be the leading
investor-operator in the Asia-Pacific electric power industry
especially in the Chinese mainland.
Conclusions
Five issues drive the need for a massive expansion of renewable energy technologies:
* Protection of the global climate;
* Protection of local human health, social welfare and the environment;
* The need for poverty alleviation;
* The need for secure energy supplies
* Independent, stable and less vulnerable energy sources.
These issues demand an urgent change in the way governments plan for
and support the development of energy sources and that the
international finance system must stop supporting energy- and
carbon-intensive production capacities and infrastructure.
Demands
ALL GOVERNMENTS: should ratify the Kyoto Protocol allowing it to
develop and expand rapidly, extending the international emissions
trading system and providing more help for developing countries to
leapfrog dirty technology.
INDUSTRIALISED COUNTRIES: commit to 80% greenhouse gas emission cuts by 2050.
ALL FINANCIAL INSTITUTIONS:
1. Should implement greenhouse gas emissions accounting for all projects.
2. Should follow environmental, social and sustainable development criteria.
3. Should help eliminate barriers to renewable energy and energy efficiency programmes.
4. Should phase out investments in fossil fuel projects and aggressively increase investments in renewable energies.