They must embrace climate action that is conflict-sensitive. For an example of why, they just need to drive a few hours north to Lake Turkana.

That’s where Africa’s largest wind power plant is with 365 wind turbines spinning, providing nearly a fifth of Kenya’s electricity.

But it was built slower than it should have been because of conflict. Indigenous pastoralist groups regarded it as an illegal seizure of their land.

US denies rigging loss and damage fund’s board in rich nations’ favour

They felt excluded from decision making processes that disregarded their social relations and territoriality.

For investors, the failure to respect their rights caused lengthy and costly delays.

Buying the land for the project was controversial from the outset. These communally held lands were vital for the cattle grazing, herding and cultural heritage of pastoralist communities.

The land was held in trust on behalf of the community until, in 2009, the council transferred a 33-year renewable lease to private investors without the free, prior and informed consent of local communities. 

‘Carbon bomb’ in Argentina gets push from local government

Relocation payments were only made to one village and private landowners were not compensated. 

New infrastructure was seen as misaligned to community priorities and mostly responding to the needs of the investors.

In 2014, the communities brought a court case and, seven years after the case was filed, the process of land acquisition was declared illegal. 

In May 2023, the court refused the investors an extension to regularize the acquisition, opening the door to significant compensation for local communities.

It may replace plastic but eucalyptus paper packaging helped burn down my home

Prejudice against the communities of Kenya’s arid north has been woven through the project.

The land was often seen as a vast, unproductive and idle space that outside investors would make better use of. 

Illegitimate land acquisition and a lack of participatory and inclusive engagement between authorities, investor and communities have led to the cancellation of other wind farms in Kenya like Kinangop and Baharini.

Some lessons have been learned, with community liaison officers now facilitating engagement. 

EU nominates Wopke Hoekstra as top climate diplomat

But, as dignitaries and policy-makers gather in Nairobi for the summit, this case provides a clear reminder: we need a smarter, conflict-sensitive green energy transition.

These principles apply to climate finance more broadly, as a lack of conflict sensitivity can jeopardise projects and leave communities in an even more fragile situation. 

Conflict-affected areas are complex and volatile settings in which to make significant investments. 

As the effects of climate change become ever more severe it is thought of as a “conflict multiplier”, meaning that it can be expected to heighten existing tensions and cause outbreaks of violence. 

Developing countries call for $100 billion loss and damage target

Two thirds of the most climate-vulnerable countries are already considered to be at high risk from climate-related conflict. 

If not done sensitively, renewable energy and adaptation projects can fuel fragility and worsen conflict situations, paralysing the green transition efforts themselves.

Climate action therefore needs to be informed by the local context and ensure conflict sensitivity in its planning and implementation. 

Development finance institutions should develop clear indicators to show how climate projects affect conflict situations. 

The World Bank’s Financing Locally Led Climate Action (FLLoCA) project, for example, currently does not list conflict or insecurity as a threat to adaptation and mitigation initiatives.

Kenyan president William Ruto courts logging controversy

Local participation should be a cornerstone of conflict-sensitive climate finance. Trust, engagement across existing fractures and community ownership of decisions are crucial to ensuring successful implementation. 

Locally-led, bottom-up approaches are the best ways to achieve sustainable, accountable and transparent processes that are tailored to the real needs of the community.

We have regularly seen local communities, and particularly indigenous communities, completely overlooked during the planning of green energy projects. 

Their “unproductive” land is too often seen as up for grabs. In Kenya, most major renewable energy installations have been accused of disregarding community land rights and livelihood systems.

By not considering how projects impact local communities and livelihoods, the green energy transition puts itself at risk.

These are international challenges needing international solutions. Governments and international institutions need to design and enforce regulations requiring rigorous conflict-sensitivity analysis, access to information and participatory management from the outset of climate action projects. Conflict sensitivity should become the norm in policy and practice. And now is the time to start.

Emmy Auma is the Kenya and Horn of Africa Country Director at International Alert.

The post What climate funders must learn from Kenya’s wind power troubles appeared first on Climate Home News.

The court’s interim charging order – meaning it is not yet final and can be objected to by the debtor – was issued on Wednesday but made public on Friday.

The judgement was issued under the controversial energy charter treaty (ECT) which protects investments in both clean and polluting types of energy.

The Spanish state-owned land that can be seized by the foreign investors – Infrastructure Services Luxembourg and Energia Termosolar – houses the an international private school located in a former Dominican convent.

Gas lock-in: Debt-laden Ghana gambles on LNG imports

Nick Cherryman, one of the lawyers representing the investors, said the step was “only necessary because Spain, a recalcitrant debtor, refuses to honour the judgment against it”.

The investors took Spain to arbitration under the ECT nearly 10 years ago for withdrawing subsidies for renewable energy.

Spain, which relies heavily on foreign energy sources, tried in the early 2000s to lure renewables investors with a programme combining subsidies, tax breaks and guaranteed fixed feed-in tariffs.

But after the 2008 financial crisis, it started altering the framework under which renewables could receive support, which some investors saw as a violation of their legitimate expectations.

UK government bets on ‘pragmatic’ climate inaction ahead of election

The World Bank’s International Centre for Settlement of Investment Disputes (ICSID) awarded the investors 101 million euros plus interest in 2018, with the award later being registered at London’s High Court.

Spain tried to overturn the award citing sovereign immunity, but the High Court dismissed Madrid’s application in May.

Alongside other European countries, Spain has announced its intention to leave the treaty – although both renewable and fossil fuel investments will remain protected for 20 years under the treaty’s  so-called sunset clause.

The European Commission negotiated reforms to the ECT last year which allowed countries to stop protecting fossil fuel investments while continuing to protect renewables.

But these reforms were rejected by Spain and other EU countries, who decided to leave under the unreformed treaty and try to limit the effects of the sunset clause through agreements with other EU member states.

The post Court says renewable firms can seize Spain’s property after subsidy cuts appeared first on Climate Home News.

At the New Global Financing Pact Summit in Paris, Senegal’s president Macky Sall said the money would help his country get 40% of its electricity capacity from renewables by 2030, up from about 30% now.

Sall said the deal will help “increase our resilience” and “secure our energy system” while French president Emmauel Macron said it would boost economic development and access to electricity.

The governments who have said they will contribute funds are France, Germany, the UK, Canada and the European Union. The USA and Japan, which have backed similar deals, are not involved in this one.

Carbon credits touted as saviour of coal-to-clean energy deals

The deal is known as a Just Energy Transition Partnership (JETP). Similar multi-billion deals have been struck over the last two years with South Africa, Indonesia and Vietnam.

Unlike these bigger nations, Senegal is a tiny emitter and does not dig up or use much coal. It relies on fossil fuel imports from abroad and has one of the highest electricity prices in Africa.

Whereas negotiations with these countries have focused on closing coal plants and rolling out renewables, the deal Senegal will just focus on rolling out renewables.

Meeting the target will be a challenge, as the government aims to provide electricity to all its citizens by 2025. About a fifth of Senegal’s 16 million people do not have access to electricity. These are mainly poorer people in rural and island areas. Economic development is likely to bring more electricity use.

According to a joint statement between the Senegalese and wealthy governments, the money will be a mixture of grants, loans on better than market terms, investment guarantees, export credits and technical assistance.

A precise breakdown of these different categories was not made available. Neither was the breakdown of how much each governments is contributing.

The chair’s summary of the Paris talks at which the deal was announced said that it includes private investors as well as multilateral development banks and government funding.

Wealthy governnments have sought to hide these details in previous deals and contributors have later said their share was just the “amount they are willing to consider”.

A spokesperson for Canadian environment minister Steven Guilbeault told Climate Home that “Canada will work with partners and development banks to secure the agreed mobilisation of resources, and we recognize that additional funding might be needed during and beyond the JETP period [of three to five years]”.

The share of grants as opposed to loans and the terms of those loans has been a source of contention in previous deals, with the recipient countries pushing for grants so as to not add to their debt burden.

A source of contention with Senegal has been the role of gas. Most big Western countries have promised to stop funding fossil fuels abroad whereas Sall has publicly slammed them for that stance, telling a Chinese-organised conference that it comes at a “fatal cost” to developing countries.

In the joint statement, which does not mention any fossil fuels by name, Sall said Senegal would be “securing our energy system thanks to all our natural resources in line with the Paris Agreement”.

Ahead of elections, Argentina’s leaders wrap fossil fuels in the flag

The statement added that Senegal “with the effective support of” the rich countries would study “the most cost-effective low-carbon and climate resilient pathway” for energy.

A statement from Germany’s development ministry BMZ said Senegal wants to promote gas production but that would not be financed by this deal.

The money will be spent on renewable energy and the infrastructure to enable it, like electricity storage and measures to improve the stability of the electric grid.

A working group of Senegalese and rich country representatives will meet regularly to discuss the partnership, a technical secretariat will be set up within four months and an investment plan will be drawn up within a year.

This article was updated on 22 June to include the spokesperson for Steven Guillbeault’s comments. And to correct the headline which originally put the figure as $2.5bn not $2.7bn and €2.5bn. The article was updated again on 26 June to clarify that the share of renewable energies in installed capacity in Senegal’s electricity mix is around 30% – the article previously used a different measurement to say 10%. And the detail that private investors are included was added, following the release of the chair’s summary.

The post Rich nations pledge $2.7 billion for Senegal’s renewable rollout appeared first on Climate Home News.

In the announcement, Indian authorities included a focus on solar power from the Himalayan region of Ladakh and green hydrogen production.

Announcing her government’s annual budget today, finance minister Nirmala Sitharaman told parliament: “We are implementing many programmes for green fuel, green energy, green farming, green mobility, green buildings, and green equipment, and policies for efficient use of energy”.

“These green growth efforts help in reducing carbon intensity of the economy and provides for largescale green job opportunities,” she added.

The announcement comes after the US has approved a $500 billion green spending package to curb climate emissions and Japan layed out a plan to issue $150 billion in “green transition” bonds. The EU unveiled this month its own $270 billion plan to subsidize Europe’s green industry.

Despite its low per-person emissions, India’s huge population makes it the third-biggest emitter in the world. The country has pledged to reach net zero by 2070.

 Green electricity

The government promised to invest 350 billion rupees ($4.3 bn) in investments towards the country’s energy transition and its net zero target.

The petroleum and natural gas ministry will oversee investments, Sitharaman told a press conference, adding they would include investments in gas.

The government will subsidise private-sector projects for battery energy storage. This technology can store electricity from intermittent power sources like renewables so that it can be used when the sun isn’t shining or the wind isn’t blowing.

Taiwan’s failure to clean up industry endangers its net zero pledge

The government said it will also look into pumped storage, a way to store energy using hydropower. When electricity is abundant, it is used to pump water up into a dam. When demand surges, the water can be released, producing hydro-electricity.

Sitharaman pledged to invest 83 bn rupees ($1 bn) of central government money in electricity transmission lines which can take 13 gigawatts (GW) of renewable electricity from the sunny, sparsely-populated Himalayan mountain state of Ladakh to population centres in the rest of the country. India aims to develop 500 GW of renewable energy capacity by 2030.

This echoes similar projects in neighbouring China, where renewable electricity is produced in the Gobi desert and transported to big cities in the east. In the US, construction has just started on a transmission line linking Arizona’s desert to California’s metropolises.

Green hydrogen

The budget touted the recently-launched national green hydrogen mission. The government will spend 197bn rupees ($2.4 bn) developing the carbon-free-fuel, which can replace fossil fuels in the manufacture of steel and in shipping and aviation.

Most of the money will be spent on incentives to produce hydrogen with renewable electricity and to build Indian electrolysers, the machines which turn water into hydrogen.

Sitharaman called green hydrogen a “sunrise sector” and said she wants India to “assume technology and market leadership” and reduce dependence on fossil fuel imports.

Azerbaijan weaponises conservation law in conflict with Armenia

India aims to produce five million metric tons by 2030. The International Energy Agency (IEA) has said that, for the world to limit global warming to 1.5C, it should produce about 100m metric tons of green hydrogen by 2030.

“The green hydrogen target is encouraging since it sends the right signals to the industry. We need to build the domestic capacity and supply chain on [renewable energy],” the IEA’s lead India analyst Swati D’Souza told Climate Home.

Adapting to climate change

Sitharaman announced money to adapt to the effects of climate change too. She promised 53bn rupees ($646m) to build irrigation systems for farming and  drinking water in the drought-prone region of Karnataka.

She promised to plant mangrove trees along India’s shorelines and to restore wetlands. These can suck in and lock up greenhouse gases and help reduce flooding.

But Climate Action Network campaigner Harjeet Singh said that while there were good emissions-cutting projects, adapting to climate change had been mostly left out.

In particular, he criticised the lack of a new allocation to the National Adaptation Fund. This was set up in 2015 and “has been starved of funds”, he said.

Mixed messages on transport

The government promised money to both clean and polluting transport forms. The railway budget was the highest it has ever been and Sitharaman said she would promote coastal shipping as an “energy efficient” way of moving people and goods.

Want climate news in your inbox? Sign up for free to get our weekly newsletter and occasional extra bulletins

But she also promised to revive 50 airports, helipads or other types of landing grounds “to improve regional air connectivity”.

The Indian government is trying to build a domestic electric vehicle (EVs) industry. Sitharaman increased the custom duty on fully imported EVs from 60% to 70%.

At the same time, she increased spending on incentivising the manufacture of EVs in India and promised “adequate funds” to scrap old polluting government vehicles like ambulances.

The post India announces $4.3 billion investment in clean energy appeared first on Climate Home News.

A Report from Rystad Energy says investment in renewables is forecast to reach US$494 billion in 2022 versus $US446 billion for oil and gas – the first time investment in renewables is set to be higher than for oil and gas.

The Rystad analysts say high spot electricity prices, particularly in Europe, are rewriting the utility wind and solar investment narrative as potential investment payback periods of under a year put extra shine on renewables energy economics.

“Capital investments in renewables are set to outstrip oil and gas for the first time this year as countries scramble to source secure and affordable energy,” says Rystad’s Michael Sarich.

“Investments into renewables are likely to increase further moving forward as renewable project payback times shorten to less than a year in some cases.”

The impact of soaring spot prices on project economics

Typically, returns on new wind and solar PV projects have been unspectacular, often relying on subsidies to get projects over the line.

Cost pressures due to recent commodity and supply chain issues should have made matters worse, as they have reversed years of rapid unit cost improvements in the sector.

But according to Rystad, current spot prices in Germany, France, Italy, and the UK would all result in paybacks of 12 months or less.

To understand the impact of soaring prices on project economics, a generic 250 megawatts (MW) solar PV asset has been modelled in Germany by Rystad in the below graph.

Assuming a long-term electricity price of €50/MWh ($49/MWh), the expected post tax return is approximately 6% with a payback period of 11 years.

Higher prices were then assumed in the start-up year, dropping uniformly in years two and three until returning to the long-term assumption.

The graph shows a price of €350/ MWh or above results in a payback period of only one year while a price of approximately €180 – the European Commission’s proposed price threshold – halves the payback to 5-6 years.

The data shown is for Germany, however €350/ MWh will also result in a payback within 12 months in France, Italy, and the UK.

Good time to get new projects up and running

In June, the International Energy Agency forecast that global energy investment was on track to increase 8% this year to $US2.4 trillion, with investment in clean energy responsible for most of the rise.

The rise in clean energy spending is occurring primarily in advanced economies and China, while in some markets, energy security concerns and high prices are prompting higher investment in fossil fuel supplies, most notably on coal, according to the IEA.

For now, Rystad says most European solar and wind projects are not benefitting from the current high prices, but that is changing quickly.

“Developers and financiers alike should be trying to get projects up and running as quickly as possible and with maximum exposure to wholesale prices – as once the up-front costs are recouped, returns will be very attractive even if prices drop back close to historical levels,” the report says.

The post Thanks to fossil fuel crisis, wind and solar payback time drops to one year appeared first on Climate Home News.

In an open letter published on Wednesday, the leaders of countries like Afghanistan, Sudan and Yemen called on rich nations, multilateral banks and the private sector to increase investment for distributed renewable energy systems, like solar panels on their citizens’ homes.

Former president of Liberia Ellen Johnson Sirleaf said her country’s experience shows small-scale solar and hydropower help “the needy, particularly in rural areas who have been neglected all of these years”.

She said energy brings safety to homes, opportunities for distance learning to schools, technological advancement to hospitals and a chance for small businesses to expand.

Francis Mustapha Kaikai is the planning minister of Sierra Leone, where just 26% of people have access to electricity. He joined Sirleaf at a webinar organised by the UK-based Council on State Fragility (CSF) on Wednesday.

“Access to sustainable and affordable sources of energy is an indispensable link to the revival of our economies and hence the welfare of our people,” Kaikai said.

DR Congo campaigners take minister to court over illegal logging claims

Over 800 million people have no access to electricity worldwide and 86% of them live in 57 nations considered fragile by the Organisation for Economic Co-operation and Development (OECD) because they suffer problems like war, division and ineffective government.

According to a CSF report released along with the letter, the proportion of people without electricity in fragile states has been steadily declining for 30 years.

But, as the population grows faster than people get electricity, the number going without increases by about two million people a year.

The report found that $50bn a year is needed to provide everyone with decent energy by 2030, but just $30bn was being spent. Of this, only a third targets new household connections while the majority goes to businesses.

The report found aid spending has increasingly favoured non-fragile developing countries.

Mauritius oil spill: questions mount over ship fuel safety

Some of the challenges of investing in energy in fragile places include the limited power of the state, undeveloped energy markets, difficulty getting affordable credit, burdensome due diligence requirements, political instability and the risk of currencies devaluing.

Sarah Logan, the State Fragility Initiative’s national engagement lead, said these challenges made it more expensive to expand energy access in fragile states. “For every dollar that you borrow it costs more to invest in South Sudan than it does in India,” she told Climate Home.

The letter calls on donors to increase their funding to multilateral development banks who can invest in energy and accept a lower rate of return than the private sector.

The signatories call on developmental finance institutions, like the African Development Bank, to catalyse other investments. For example they can cover the costs of project preparation, allowing private investors to get on board with the project later on at less cost.

Concerns raised about Green Climate Fund flood defence project in Samoa

Since 2011, the cost of residential rooftop solar systems has fallen fast and they are now generally cheaper than fossil fuels.

“We now have a convergence in what is good for the climate, what is needed to unlock economic growth in fragile states, and what is technologically feasible,” the letter said.

Although distributed solar is more expensive than utility scale solar, the report argues it is more resilient as it is harder for armed groups to destroy.

Yemen’s prime minister Maeen Abdulmalik Saeed said that, as the six-year civil war destroyed much of the country’s energy infrastructure, imports of solar panels increased.

“Solar energy was one of the most important aspects that helped supply the demand,” he told the CSF webinar.

As well as being vulnerable, large energy projects can exacerbate conflicts, the report said. The Grand Ethiopian Renaissance Dam has created tension over water flow between Ethiopia and Egypt and Sudan.

The post Fragile countries call for investment in rooftop solar to expand energy access appeared first on Climate Home News.

Yoshihide Suga indicated his government would rethink its reliance on coal, instead backing solar power and “carbon recycling” – capturing carbon dioxide emissions for various industrial applications.

“I declare we will aim to realise a decarbonised society,” Suga said in his first policy address to parliament since taking office. 

“Responding to climate change is no longer a constraint on economic growth. We need to change our thinking to the view that taking assertive measures against climate change will lead to changes in industrial structure and the economy that will bring about great growth.”

Japan has faced mounting international pressure to strengthen its climate commitments. The previous administration would only aim for an 80% emissions reduction by 2050, compared to 2010 levels, and carbon neutrality “at the earliest possible time in the latter half of this century.”

I warmly welcome to the goal that all developed nations should set for themselves to stop climate change.

is a good friend and ally and we look forward to working with them towards net zero emissions in 2050. The world is coming together for the climate.

— Ursula von der Leyen (@vonderleyen) October 26, 2020

Suga’s announcement follows China’s 2060 carbon neutrality pledge last month.

Tracker: Which countries have a net zero carbon goal?

Japan is the world’s fifth biggest emitter of carbon dioxide and has 48 GW of coal power capacity, which provide almost a third of its electricity generation. Another 7.4 GW are under construction and 2.5 GW in planning, according Global Energy Monitor data. The country’s coal use increased after the 2011 Fukushima nuclear disaster stoked fears around atomic energy – its other major source.

Under the current energy plan, coal, oil and gas still account for 56% of the energy mix in 2030. Renewables are only expected to provide 22-24% of power generation. The ministry for economy, trade, and industry (Meti) is due to publish a revised energy plan next June.

Without going into detail, Suga hinted his government would address the country’s dependence on coal. “We will fundamentally shift our long-standing policy on coal-fired power generation,” he said during his speech.

“This is a fundamental change. Japan has always seen coal as an important export product and also domestically as an important source for energy security,” Takeshi Kuramochi, climate policy researcher at NewClimate Institute, told Climate Home News.

World Bank branch indirectly backs coal megaproject despite green pledge

Climate campaigners are calling for clarity on Japan’s emissions reduction and renewables targets for 2030 and a commitment to phasing out coal by this date. 

According to Japan’s Renewable Energy Institute (REI), Japan’s net zero target requires a full phaseout of coal by 2030, increasing the renewable energy target to 45% and raising the emissions reduction target for 2030 to 45% compared to 2010 levels. The current target is 26% compared to 2013 levels.

“It is necessary to significantly strengthen the GHG reduction target for 2030, and to completely phase out coal-fired power generation, including those [plants] which have been called ‘high efficiency’”, said Teruyuki Ohno, REI’s executive director. 

Japan’s climate strategy has focused heavily on technological innovations to curb emissions, such as carbon capture and storage (CCS) and high-efficiency coal power generation, sometimes called ‘clean coal’.

In June, the minister for economy, trade, and industry (Meti) Hiroshi Kajiyama said Japan would phase out 90% of old and inefficient coal generators by 2030 and focus on cleaner, high efficiency coal.

Analysis: A Biden victory could spur global climate action, but the US has much to prove

Campaigners say both technologies are inadequate solutions to get to net zero emissions.

“’Clean coal’ is not clean. It only achieves a 10% reduction in CO2 emissions. It is time to review this approach and invest in renewables. Those need to be supported fully so that we can expect a deep [emissions] reduction before 2030,” Kimiko Hirata, international director of the Kiko network, a Japanese environmental NGO, told Climate Home News. 

“Clean coal will have to be set to the side,” Kuramochi agreed. “There is simply no room for new power plants, in whatever format.”

There is no clear evidence that CCS technology can be commercialised in a cost effective way, Hirata said. “In Japan there is no location to store that [carbon dioxide].”

Hirata said Meti had promoted technologies such as CCS to protect the interests of fossil fuel companies who have strong ties with the government. “CCS provides subsidies to heavy industries, including the power and steel sectors,” she said. 

The roadmap to achieving net zero by 2050 “will be very controversial” as Meti and the ministry of environment are likely to adopt different approaches, according to Hirata.

Japan’s popular environment minister Shinjiro Koizumi has been pushing for the country to change its coal policy and has called on the government to end overseas coal finance. But Meti has almost 100% control over coal policy and “will have supreme power” when it comes to how to achieve the net zero target, Hirata said. 

According to Kuramochi, the government’s 2050 pledge was partly driven by a private sector eager to move away from coal and see more investment in renewable, climate-friendly technologies. “Meti are picking up on this trend emerging in the business sector and their stance is shifting,” he said.

The post Japan net zero emissions pledge puts coal in the spotlight appeared first on Climate Home News.