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[en] Based on the review of the basic design of the sectoral crediting mechanism (SCM) – a promising option for developing countries’ emission reduction commitments – this paper analyzes five important practical issues for China to solve before participating in SCM, which include (1) difficulties in determining a crediting baseline (2) the unsolved over-supply problem in the carbon market (3) the very likely “carbon credits falling short of mitigation costs” problem (4) the immature market-oriented price system jeopardizing the success of motivation incentives and (5) inadequate capacity building. Corresponding suggestions or compromise solutions are given after a discussion of each issue. It is also recommended that in order to witness SCM come into being, researchers and negotiators should endeavor to solve the practical issues that SCM meets now, bearing in mind the balance of interests of both developing and developed countries. Finally we believe that SCM’s political barriers can be overcome when technical, economic institutional and capacity problems are solved. - Highlights: ► Latest developments in Sectoral Crediting Mechanism design have been reviewed. ► Ten years would be an ideal duration to adjust sectoral crediting baseline in China. ► Specific sectors could be selected to solve the carbon credits over-supply problem. ► SCM credits may come short of the mitigation costs, claiming a rising carbon price. ► Pricing system in China’s electricity sector makes it not a good candidate for SCM.
[en] Due to the fact that human activities and most sustainability issues are closely related to energy use, the energy system is a sound framework for providing lead indicators for sustainable development. Common energy-economic models enable the estimation of future states of the energy system. An energy system-based lead indicator set can be used to develop consistent and coherent future indicator estimates and to track sustainability, a clear advantage over existing sets. In developed countries, the sustainability discussion is focused on environmental topics, while in developing countries the issues of poverty and equity are equally important. Consequently, for measuring sustainable development in a developing country, the inclusion of a poverty indicator in a set of lead indicators is essential. By correlation and descriptive analysis, it is shown that reliable energy-based indicators of poverty can be created. Although no one-dimensional indicator is a comprehensive measure of poverty, the explanatory power of energy poverty indicators is comparable to that of other poverty indicators. Thus, the use of energy indicators is not restricted to environmental and economic issues but is also relevant for social issues
[en] Geothermal, Hydro, Solar and Wind projects located in developing (4808 CDM projects) and developed (2952 Annex I projects) are compared in terms of size (capacity – MWe), capital intensity (US$/MWe) and average investment (US$ per project). The average investment in both CDM and Annex I projects increased rapidly between 2000 and 2012. Most investment in renewable energy projects in both developed and developing countries comes from domestic sources, although the share of foreign investment has been rising for both CDM and Annex I projects. A project with foreign investors often attracts funds from multiple countries, including the host country. - Highlights: • Geothermal, Hydro, Solar and Wind CDM projects are larger and less capital intensive than similar developed country projects. • Average investment in CDM and developed country Geothermal, Hydro, Solar and Wind projects increased rapidly over 2000–2012. • Most investment in renewables projects is domestic sources, but the share of foreign investment has been rising
[en] Global concerns about environment and climate change have led to the rapid development of solar PV industry across the world. Meanwhile, the provision of heavy subsidies has motivated the discussion of social and economic benefits of this technology, mainly on the impacts on employment. Although there is abundant literature on this issue in developed countries, studies on developing countries, especially of China are rare. In this study, a spreadsheet-based analytical model is established for the estimation of employment effects of China's solar PV industry during the period of 2009–2015. Building on this model and using four indices and detailed data of sample companies, it is found that during the period of 2009–2015, whilst the number of jobs created by China's solar PV industry increased, the jobs/MW ratios and employment skewness of China's solar PV industry declined. The main policy implications are that the government should fully recognize the solar PV industry's role in China's employment, improve the implementation of existing solar PV policies, provide more financial support to solar PV projects, particularly to distributed solar PV projects, and enhance the education and training of solar PV professionals. - Highlights: • A spreadsheet-based analytical model is established. • Four indices and detailed data of sample companies are used. • The number of jobs created by China's solar PV industry increased steadily during the period of 2009–2015. • The jobs/MW ratios and employment skewness of China's solar PV industry declined during the period of 2009–2015. • The role of solar PV industry in China's employment should be fully recognized.
[en] Attempts to reform the electricity sector in developing countries have achieved mixed results, despite the implementation of similar reforms in many developed countries, and concerted effort by donors to transfer reform models. In many cases, political obstacles have prevented full and effective implementation of donor-promoted reforms. This paper examines the political economy of power sector reform in Fiji from 1996 to 2013. Reform has been pursued with political motives in a context of clientelism. Policy inconsistency and reversal is explained by the political instability of ethnic-based politics in Fiji. Modest success has been achieved in recent years despite these challenges, with Fiji now considered a model of power sector reform for other Small Islands Developing States (SIDS) in the Pacific. The experience demonstrates that reform is possible within difficult political environments, but it is challenging, takes time and is not guaranteed. The way in which political motives have driven and shaped reform efforts also highlights the need for studies of power sector reform to direct greater attention toward political drivers behind reform. - Highlights: • This is the first study of power sector reform in Fiji or other Small Island Developing States (SIDS) of the Pacific. • The clientelist nature of politics in Fiji is found to have both driven and shaped reform efforts. • There has been modest success in recent years despite these obstacles, with Fiji now considered a model for other SIDS. • The experience demonstrates that reform is possible within difficult political environments, but it is challenging, takes time and is not guaranteed
[en] Multi-Stakeholder Partnerships can overcome many of the problems which exist with the transfer of Environmentally Sound Technologies (ESTs) from developed to developing countries, but as yet they have not been explored in detail in the negotiations under the United Nations Framework Convention on Climate Change (UNFCCC). Technology transfer is an important part of the UNFCCC, but the mechanism for achieving this is problematic. Developed countries prefer a market approach whereas developing countries tend to negotiate for direct grants. Multi-stakeholder partnerships offer a pathway through which technology is transferred and developing country capacity enhanced, while the interests of developed country private enterprise innovators are also protected. We present opinions and a case-study on multi-stakeholder partnerships and discuss some of the advantages that multi-stakeholder partners can offer. (author)
[en] The climate-trade nexus gains increasing attention as governments are taking great efforts to forge a post-2012 climate change regime to succeed the Kyoto Protocol. This raises the issues of the scope of trade-related measures and of when and how they could be used. This paper discusses how far trade-related measures should be incorporated in that context. Drawing on an analogy to the Montreal Protocol and comparing developing country's climate mitigation and adaptation needs with the funding available, the paper argues that such measures should initially be applied only among Annex I or II countries. To discipline the use of unilateral trade measures at the international level, the paper emphasizes a need to define comparable climate efforts. Moreover, the Lieberman-Warner bill in the US Senate-taken as a proxy for future US climate legislation-is assessed, and found to be neither effective nor likely to be WTO-consistent. The paper is concluded by arguing that, in order to encourage developing countries to do more to combat climate change, developed countries should focus on carrots. Sticks can be incorporated, but only if they are credible and realistic and serve as a useful supplement to push developing countries to take actions or adopt policies and measures earlier than would otherwise have been the case.
[en] This paper reinvestigates the energy consumption-GDP growth nexus in a panel error correction model using data on 20 net energy importers and exporters from 1971 to 2002. Among the energy exporters, there was bidirectional causality between economic growth and energy consumption in the developed countries in both the short and long run, while in the developing countries energy consumption stimulates growth only in the short run. The former result is also found for energy importers and the latter result exists only for the developed countries within this category. In addition, compared to the developing countries, the developed countries' elasticity response in terms of economic growth from an increase in energy consumption is larger although its income elasticity is lower and less than unitary. Lastly, the implications for energy policy calling for a more holistic approach are discussed
[en] Introduced at the end of the 1970s to study the impacts of structural changes on electricity consumption by industry, index decomposition analysis techniques have been extended to various other areas to help in the formulation of energy policies, notably in developed countries. However, few authors have applied these techniques to study the evolution of energy consumption in developing countries. In Brazil, the few available studies have focused only on the industrial sector. In this article, we apply the decomposition technique called the logarithmic mean Divisia index (LMDI) to electricity consumption of the Brazilian residential sector, to explain its evolution in terms of the activity, structure and intensity affects, over the period from 1980 to 2007. The technique is sufficiently robust and flexible to perform this analysis, by disaggregating residential consumers by consumption classes and regions of the country. Among the main results is measurement of the impact of government programs for income transfer and universal service on variations in residential consumption, typical of developing countries.
[en] Energy poverty is the primary energy security issue impacting almost 800 million people, particularly women and children, in the developing countries of Asia. Current trends indicate that should there be no change to existing policies, and the governance systems and institutions underpinning them, the absolute number of energy poor will barely shift. Most significantly, addressing energy poverty is critical to absolute poverty reduction, enhanced gender equality and political stability in the Asian region. We offer a solution to progress the energy poverty alleviation effort focused on encouraging sustainable, development-centred investment. This will involve multi-actor partnerships between developed and developing country governments, investors, and multilateral institutions. We propose that there may be spill over effects for investing firms, in the form of strengthened corporate reputation. Consequently, energy poverty alleviation efforts can create new opportunities for commerce, multilateral institutions, NGOs, and developing and developed countries. It is envisaged that the multi-actor approach put forward by this paper will facilitate the partnerships, programs and provisions needed to alleviate energy poverty in Asia. However, critical to the success of this collaborative approach is a genuine shift in sentiment from the key stakeholders involved in the effort