[DEBATE] : (Fwd) Africa & CDMs... WB wants more
pbond at mail.ngo.za
Thu Sep 4 05:24:52 BST 2008
(This is key: "But many of these projects are speculative, as they are
based on methodologies not yet approved by the CDM's executive." Sounds
like there will be a push to 'help' Africa with more CDMs by lowering
the bar on what qualifies.)
Sub-Saharan Africa lacks investment in clean energy projects
Published: 3 Sep 08 - 18:04
Sub-Saharan Africa represents an untapped well of clean energy projects
under a UN-run offsetting scheme, but factors including market
misconceptions and regulatory gaps are hindering investment in the
region, the World Bank said on Wednesday.
The Clean Development Mechanism (CDM) scheme under the Kyoto Protocol on
global warming, worth $13-billion last year, allows companies and
governments in rich nations to invest in clean energy projects in
developing countries. In return, investors receive offsets which they
can sell for profit or use to meet emissions targets under Kyoto.
"A common assumption ... is that (Sub-Saharan Africa's) weak CDM
portfolio simply reflects its poverty -- that is, its countries have few
industries, little emissions, and thus limited emission-reduction
opportunities," the World Bank said in a report, entitled "Unveiling the
Potential, Addressing the Barriers."
It identified some 2 750 clean energy projects in Sub-Saharan Africa
that could be registered under the CDM, with an estimated capital cost
These projects would reduce greenhouse gas emissions, blamed for
potentially devastatin climate change, by the equivalent of 9,8-billion
tons of carbon dioxide (CO2), or almost twice the emissions of the
entire European Union.
Assuming an offset price of $10 per tonne, the World Bank said these
projects could generate some $98-billion in revenues.
This does not include money made from selling the actual electricity
If fully implemented, these projects could generate more than 170
gigawatts of clean energy, or four times the region's current modern
energy production, the report said.
But many of these projects are speculative, as they are based on
methodologies not yet approved by the CDM's executive.
Furthermore, the report said the industry is being held back a number of
factors including a lack of infrastructure development, an unskilled
work force, and regulations hampering projects from accessing the energy
"Regulatory gaps in the region's energy sectors hinder or prevent clean
energy projects from selling their energy production," the report said.
The report also contends that investors eyeing the region are
approaching the wrong people, targetting only those in the environmental
Project developers should target decision makers from the related
industries and local engineering consulting firms, who would help
implement the necessary technology, the report said.
The World Bank also estimates that these projects could displace future
Sub-Saharan emissions by 740-million tons of CO2, more than the region's
current total of 680-million tons per year.
According to the report, only 1,4 percent, or 53 of the nearly 4 000
projects in the CDM's pipeline, are located in Sub-Saharan Africa - nine
times smaller than the region's global share in greenhouse gas
emissions. China and India have dominated the CDM market thus far, and
are home to more than two thirds of projects currently in the pipeline.
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