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A few well-written words can convey a wealth of information, particularly when there is no lag time between when they are written and when they are read. The IPS blog gives you an opportunity to hear directly from IPS scholars and staff on ideas large and small and for us to hear back from you.

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Entries tagged "coal"

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World Bank Energy Lending Still Veering in Wrong Direction

April 11, 2014 ·

(Flickr/Claudio Schwarz)More than one billion people around the world still lack access to modern electricity.

At this week’s spring meetings, discussions between environment and development civil society groups and the World Bank highlighted tensions between those who seek to tackle energy poverty using every energy option available, and those advocating for the Bank’s financing to focus on clean, sustainable solutions for these developments.

In 2013, the World Bank released a report describing how the institution’s energy sector activities have shifted — except in special circumstances — away from coal and toward renewable energy and “lower carbon” fuels.

But analysis of the World Bank’s energy investment tells a different story. Oil Change International points out that the Bank spent $1 billion last year alone financing oil, coal, and gas exploration projects.

Vijay Iyer, Director of the World Bank’s Sustainable Energy Department, argued on a panel at the spring meetings that energy lending must focus on reliable access to affordable modern energy at volumes that cover people’s needs. According to Iyer, fossil fuel options — particularly expansion of greenhouse gas-emitting natural gas — must stay on the table in order to keep power affordable. He cited the relatively high up-front investment needs of renewable energy installation as a barrier to clean energy access for the poor.

But Oil Change International managing director Elizabeth Bast, also on the panel, underscored that despite the Bank’s rhetoric on reaching the poor, only 8 percent of the Bank’s energy portfolio is actually focused on energy access.

If the World Bank were serious about bringing energy access to the poor, it would dedicate the majority of its lending to do so. For the rural poor, that means providing small and medium-sized businesses the capital — and investors, the guarantees — to build mini- and off-grid renewable energy systems.

What's Hot and What's Not at COP19 in Warsaw

November 22, 2013 ·

Warsaw, Poland during COP19 (photo: Lauren Gifford)

This is the second week of the annual UN climate summit, hosted this year in Warsaw, Poland. Governments and activists gathered here on pushing for to make sure key provisions on lowering greenhouse gas emissions, adapting to a warming world, dealing with loss and damages from climate disruption, and finding ways to pay for it all are queued up for a new climate deal in 2015. As negotiations enter their final days, three participants weigh in on what’s hot, and what’s not, at COP19.


The HOT list…

Demanding climate justice

It seems everyone’s calling for ‘climate justice’ these days — and we’re all for it! It can mean many things, but most importantly it acknowledges the economic roots and geo-politics of the climate crisis. It’s based on recognition that global warming — and the proposed solutions to it — disproportionately impact low-income people and people of colour, and that those most impacted have the right to a seat at the table to speak for themselves. Sure, you can hang a climate justice banner on just about anything — that’s why international collaborations that separate the wheat from the chaff like the Global Campaign to Demand Climate Justice are so important.  

Philippine head of delegate Naderev Yeb Sano (photo: Adopt A Negotiator)Solidarity fasting

In his opening plenary remarks, Philippine head of delegate Naderev “Yeb” Sano announced that he would fast for the duration of the COP until “a meaningful outcome is in sight,” in solidarity with the hundreds of thousands of Filipinos without food, water and shelter in the wake of Typhoon Haiyan. Over 700,000 people around the world have stood with Yeb, and many are planning to fast once a month until COP20. As the Warsaw summit enters the realm of the ridiculous (like Poland sacking the COP host mid-meeting), we’d bet that people are getting pretty hungry. 

Asking “WTF?”

As in, “Where’s the Finance?” Dealing with climate change could cost more than $1 trillion each year. Wealthy countries promised four years ago in Copenhagen to set up a Green Climate Fund and deliver $100 billion per year once we reach 2020. But countries have so far refused to commit to a concrete plan for scaling up the paltry support provided since Copenhagen. U.S. climate chief Todd Stern has said not to expect more public funding from developed countries anytime soon. A High Level Ministerial Meeting on Finance is supposed to yield some answers — but we aren’t holding our breath.

Men in tights

There is one ray of hope for climate finance: Robin Hood and his merry men are about to visit Europe. 11 European countries — including the four largest economies on the continent — are implementing a Robin Hood Tax (also known as a financial transaction tax) in the coming year. This tiny tax on trades on stocks, bonds, currencies, and derivatives can yield up to $50 billion per year. France already has the tax and is earmarking ten percent of the revenue to climate and development overseas. The rest of EU11 might follow suit, and the U.S. should fall in line!

 Anti-corporate campaigning

The corporate capture of the COP by big business and dirty industry has been staggering. But the unexpected side-effect has been to unite civil society observers in taking up an anti-corporate mantle. Signs in the corridors have not been shy about asking “Who rules Poland?” and “Poland or Coaland?” 

Walkout at COP19: Polluters talk, we walk

In an inspiring show of solidarity with each other and the planet, environment, development, youth, labor, and faith groups said, “Enough is enough!” and walked out of the Warsaw climate talks on the eve of its final day, saying that it’s blatantly obvious that forces of the fossil fuel industry are making it impossible to have a real conversation about reaching a global climate treaty. Mainstream green groups joined with veteran climate justice activists to abandon COP19, promising they’ll be back even stronger next year when the climate summit moves to Lima, Peru.

 


The NOT list…

Paying twice the price of local food

Eating shouldn’t have to be a luxury, but it is in the Polish National Stadium (Stadion Narodowy) where the COP is taking place. Food is twice as expensive here as it is elsewhere in Warsaw. Delegates from many developing nations — and youth representatives — are counting their grozses to be able to afford the cardboard-flavoured Sodexo sandwiches. Another good reason to support Yeb’s fast!

Heart of darkness 

And we don’t mean the gloom that’s descended on the climate talks since Australia and Japan reneged on their promises (and policies) to reduce greenhouse gases. In November, the sun sets in Warsaw around three in the afternoon. Or maybe it’s coal ash settling from Poland’s 47 coal-fired power plants. Either way, consumption of Vitamin D has gone through the roof.

Sucking up to coal

In a show of solidarity with the dirty energy industry, UN climate chief Christiana Figueres heralded coal as an integral part of solving climate change at the International Coal and Climate Summit. Meanwhile, civil society staged a major action outside the summit denouncing the expanded use of coal. Cozying up to coal cost Figueres her invitation to the annual Conference of Youth, a meeting attended by people who actually care about the future. On the positive side, the UK said it would stop financing coal with public money.

Putting lipstick on the carbon market

The bleachers of Stadion Narodowy are abuzz with the promise of new market mechanisms. But existing carbon markets have shown a weakness for fraud, scams, and general ineffectiveness. The World Bank tells us not to worry — they’ve learned from the EU’s failures and the 20 new carbon markets they’re helping setup in developing countries will get the job done. For now, a decision’s been kicked down the road. But can we please stop trying to put lipstick on this pig (did someone say pirogues in szmalec)? Let’s stop wasting time and simply cut emissions.

Shameless self-promotion

You’ve got to hand it to Emirates Airlines. They’ve placed oversized beanbag chairs all over the conference for weary negotiators to take a nap. But let’s be honest, grownups in suits look silly sleeping on the floor! Maybe the aim was to get delegates so relaxed they’d forget that the airline industry as a whole is responsible for about 2% of global climate pollution — or that two of the UAE’s major economic drivers are oil and gas export. 

Australia’s "DILLIGAF?" attitude

Urban dictionary can help you out with that acronym. Australian delegates made it perfectly clear how little they care about finding a way to help compensate poorer countries deal with “loss and damage” from climate disruptions. The Aussie officials acted like “a bunch of high school boys misbehaving in class” in their t-shirts and flip flops before finally bracketing [i.e. putting on hold] all of the already agreed-upon text. Their disruptive behavior drove 130 developing nations to eventually walk out in frustration at four in the morning, abandoning what some have called the most important talks in Warsaw. Walk outs are so hot right now, it seems.

Jonas Bruun and Robbie Watt are PhD candidates at the University of Manchester. Lauren Gifford is a PhD candidate at the University of Colorado, Boulder.

The Tata Mundra Coal Plant: A Test for Presidents Obama and Kim

September 12, 2013 ·

The Tata Mundra coal plant in India (Joe Athialy/Flickr)In June 2013, President Barack Obama announced that he was “calling for an end to public financing for new coal plants overseas.” Within weeks of this announcement, World Bank President Jim Kim announced the Bank would phase out its support for most forms of coal. However, what World Bank President Kim and President Obama left unsaid was how both presidents would treat current public financing of coal-fired power plants, particularly plants that are violating the policies set by the World Bank. 

President Kim may soon have to tackle just this issue.  A case in point is the Tata Mundra coal-fired power plant in India. The International Finance Corporation (IFC), the World Bank’s private sector lending arm, in 2008 provided $500 million in financing to back this massive coal-fired power plant in Tunda-Vandh village near Mundra, a town in the Indian state of Gujarat. The complex of five 800-megawatt supercritical boiler plants was supposed to cost $4.14 billion to build and be owned and operated by Coastal Gujarat Power Limited, a special purpose vehicle owned by India’s largest private multinational corporation, the Tata Group.

The IFC isn’t the only powerful public international financial agency backing the Mundra power project:  The Asian Development Bank, The Japan Bank for International Cooperation (JBIC), and the Korea Export Insurance Corporation are also involved.

The project now faces a whopping 270% in annual debt, and its CEO has stated the project is financially unviable unless electricity tariffs are drastically raised, effectively passing on the costs of Tata’s poor planning and misleading calculations to the Indian people. This negates one of the primary justifications the IFC presented in financing this project: that it would bring cheap electricity for the energy-deprived and energize the local economy.

Furthermore, the project also faces mounting debt which must be paid back in dollars, not rupees, at a time when the Indian rupee is dropping in value.

This power plant is burning about 13 million tons of coal a year, emitting nearly 40 million tons of CO2.  It also generates tons of toxic fly ash and other toxic byproducts and radioactive elements due to coal combustion. This Tata Mundra plant, plus two others nearby, burn a total of 30 million tons of coal per year and emit about 88 million tons of CO2 annually—more than the combined total annual emissions of Bangladesh (a nation of 150 million people), Nepal, Sri Lanka, Bhutan and the Maldives.

The Mundra plant is situated on the Gulf of Kutch, with ready access to ports and coal that is being imported from Indonesia and Australia. What once was a region with abundant fish, farms, and pastoralists is now a region contaminated by pollution, with tens of thousands of fisher-folk and pastoralists losing their livelihoods.

In June 2011, community groups asked the IFC’s Compliance Advisor Ombudsman (CAO) to investigate environmental and social violations of the contract Tata signed with the IFC. The CAO  full audit report and the IFC management’s response are expected this week. A report produced by an independent fact-finding team found numerous violations of IFC policies.

So now the question becomes: Does the IFC remedy the Tata Mundra violations, or simply cancel its support for the project, given President Kim’s and President Obama’s stated opposition to public financing of coal-fired power overseas? To do otherwise is to allow Tata to not only violate IFC policies, but to mislead its investors and then pass on the costs of its boondoggle to the very people whose poverty the company is theoretically alleviating.

What the Tata Mundra case should make clear to President Kim and others around the world is: Coal is a bad investment—for the poorest, for those consuming the power, for the Bank, and more broadly, for all of us. As a recent study of a dozen of 2012's wildest weather events found, man-made greenhouse gas emissions from coal burners like Tata’s are increasing the likelihood of about half of the wild weather events we lived through in 2012, including Superstorm Sandy; estimates suggest Sandy alone cost $68 billion.

We can’t afford to keep subsidizing these boondoggles. We can and must use public funds to invest in clean, renewable energy alternatives, with a primary focus on energy for the poorest.

Winning the Fight Against Coal Financing

July 18, 2013 ·

Child in India Tries to Get Water from Flyash-Polluted RiverWhen President Obama made his climate speech at Georgetown University in which he urged an end to almost all public financing of coal, Jim Vallette, former research director of the Sustainable Energy & Economy Network at IPS, dropped me an e-mail and we reflected on how many years it had taken us to get to this point.

The first visit I made to a World Bank-financed coal mine in India in 1996 is still etched in my mind. Traveling for miles by train, bus and then taxi to get to the site, I saw first-hand what our "poverty alleviation" funds were doing. It was a moonscape, black, grey, with nauseating smoke billowing out of perpetual fires, deep underground. A child covered in flyash, was standing next to a black river, desperately trying to get a drink of clean water.

I later learned the wells had all run dry; the coal plant had used it all for its cooling towers. And the river was black with flyash, dumped by the World Bank-financed Talcher coal burner directly into the Nandira River. The only way this child could get a drink of water was to try to dig a hole in the sandy riverbed and hope that would filter out the pollutants.

I came back to Washington in 1996, and Jim and I got fired up to fight the public financing of coal, much of it being done in the name of poverty alleviation and sustainable development.

When we released a series of reports examining public financing of fossil fuels, starting with the World Bank, then on to the EBRD, then, in 1999 on OPIC and Ex-Im, we didn't know when these banks we had set our sites on would finally be forced out of coal. But we knew it had to come.

That day came on June 25, when we finally heard the following words uttered by President Obama:

"Today, I'm calling for an end of public financing for new coal plants overseas unless they deploy carbon-capture technologies, or there's no other viable way for the poorest countries to generate electricity. And I urge other countries to join this effort."

Were these words to be believed? On July 16, the World Bank approved a new energy strategy which would effectively phase out the Bank's institutional support for coal. The paper "affirms that the World Bank Group will 'only in rare circumstances' provide financial support for new greenfield coal power generation projects, such as 'meeting basic energy needs in countries with no feasible alternatives.'"

Then, on July 18, we got the following news: The US Export-Import Bank had rejected a coal plant in Vietnam. It was the first rejection of a coal burner since Obama's climate speech of several weeks ago. 

This day came too late for that child and others in that community in India, who were forced to drink poisoned water. And I'm not pleased with the caveats Obama placed on his pledge. Nor am I pleased with the possibility that the World Bank, Ex-Im Bank and others may simply switch from coal to gas, especially if that gas is derived from “fracking,” which can be worse for our already unstable climate than coal.

But hopefully, this is the dawn of a new day, when public financing of coal mines and power plants around the world is no longer acceptable. It's not enough, of course, but after 16 years of persistent pressure from IPS and other groups, our government seems to finally be listening.

Climate Milestones in President Obama's Speech

June 26, 2013 ·

Obama climate speech photoPresident Obama's speech at Georgetown University was a milestone on climate change. It is a milestone in two ways. First, he made it clear he is not afraid to tackle coal as the primary culprit in climate change. Second, he made a major pivot in how he framed the Keystone XL pipeline debate. He’s no longer talking about "energy security" or "jobs" when talking about the pipeline but instead linking "our national interest" with whether or not the pipeline would have a significant impact on the changing climate.

Virtually all climate scientists who have weighed in on the Keystone XL pipeline agree that tar sands oil, if exploited, would result in a net increase in greenhouse gas emissions. NASA's former top scientist, James Hansen, said it would be "game over" for the climate if the pipeline went forward.

But more significantly, Obama signaled in this speech that he is ready to use his executive authority, and not willing to compromise on two key things: the climate impacts of coal and tar sands.

He made a major pronouncement in stating that public financing of coal should end, such as financing via agencies such as U.S. Export-Import Bank.

The Institute for Policy Studies was the first organization, together with Friends of the Earth, to document the significant climate impacts of U.S. Export-Import Bank and Overseas Private Investment Corporation's fossil fuel investments in 1998. That research resulted in a lawsuit filed by Friends of the Earth, Greenpeace, and the City of Boulder challenging both of those public financial institutions with violations under the National Environmental Protection Act, for not calculating the cumulative emissions of their projects on the global climate. Obama's statement today takes that research and legal action one step further and calls for an end to almost all U.S. government funding of coal overseas. The White House statement released today says:

"...The President calls for an end to U.S. government support for public financing of new coal plants overseas, except for (a) the most efficient coal technology available in the world’s poorest countries in cases where no other economically feasible alternative exists, or (b) facilities deploying carbon capture and sequestration technologies. As part of this new commitment, we will work actively to secure the agreement of other countries and the multilateral development banks to adopt similar policies as soon as possible."

While this statement allows for some wiggle room on coal – if the carbon produced from the coal can be captured, which currently is not financially or technically feasible – it would eliminate U.S. Obama climate speech photo 2backing of coal financing in countries like India and South Africa, both of which have recently received billions of public dollars for massive coal-fired coal plants.

Obama also said he would encourage developing countries to transition to natural gas as they move away from coal, a posture consistent with what he is calling for at home. Such a statement is unfortunate as it encourages the expansion of fracking on U.S. lands, which results in fugitive methane emissions, water contamination, and health problems for nearby communities. The low price of natural gas, while welcome as a replacement for coal, is making truly clean and renewable energy less attractive financially.

Obama also continues to support nuclear power – a surprising posture in the aftermath of the Fukushima nuclear meltdowns, a disaster that is transforming Japan, causing it to shut down its nuclear power plants and replace them with renewable energy.

And Obama was unafraid to call out the climate deniers – the "flat earth society" – and shame them, while urging the public to "invest, divest," a statement sure to warm the hearts of students and faith groups across the country, who are urging their institutions to divest their endowments of fossil fuels.

But the significance of this speech is that Obama is finally showing us he is willing to fight – on coal, on tar sands, and on climate. Obama remains an "all of above" champion who believes he can simultaneously frack and drill our country's oil and gas resources and solve the climate crisis. But his apparent feistyness and willingness to challenge the climate impacts of coal and tar sands – after years of silence on both topics – is cause for some celebration.

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