India and China, Full Speed Ahead in Climate Change Mitigation

chinese-and-indian-leaders-meetingWhile the United States is wondering what will happen next on climate change mitigation in their country, both India and China have recently unveiled very ambitious plans to fight local air pollution and global climate change.

According to an article from the Guardian, India plans nearly 60% of electricity capacity from non-fossil fuels by 2027. This makes the Indian government believe that it will exceed its Paris Agreements targets by far, with :

” A draft 10-year energy blueprint published this week predicts that 57% of India’s total electricity capacity will come from non-fossil fuel sources by 2027. The Paris climate accord target was 40% by 2030.”

The Guardian goes on to list how India could become a renewable energy super power in the next decade or so, as investments in the area are booming. From bringing electricity to 400 million people with solar energy to going LED or investing massively in renewables, India has been showing strong leadership in this most important issue for a few years now. To the point that, according to newspapers, renewable energy investments in India to reach $250 billion over next five years, and over a trillion by 2030.

In neighbouring China, the government has announced a plan that it will spend $360 billion on clean energy sources by 2020. This will result in the creation of 13 million jobs and cut significantly the amount of air pollution in Beijing and other Chinese cities.

Meanwhile, Beijing has announced that it will be closing  and/or not building another 104 coal-fired plants that were either due to be constructed soon or were being constructed. This move is significant – 120 Gigawatts of capacity – as it is equal to a third of the amounts of coal-fired plants in the United States.

China installed over 34 Gigawatts of solar PV capacity in 2016 alone as Cleantechnica reported, with over 11 GW in one month alone. This is absolutely staggering as it brings the total solar PV capacity of the country to 77 GW. Yes, capacity almost doubled in one year.

All this can be explained by the fact that renewables are getting more and more competitive every day and that smart countries invest in cost effective and low carbon solutions. In early 1996, the global solar PV capacity was of 200 MW, now the world installs that capacity every single day… Let that sink in. And it probably will not stop anytime soon as to Bloomberg New Energy Finance, solar is now becoming even cheaper than wind.

Edited, original article written by Edouard Stenger

India Looks to Boost Access to Latin America, Eyes $100 bn in Trade

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In a bid to ease hurdles and open up access to new frontiers, the government aims to enhance connectivity with Latin American (LatAm) countries — a move which will ease the long-standing demand of various nations. Trade volume could easily go up to $100 billion.

Sources in the government told FE, “At the recently concluded India-LAC summit organised by the MEA in Mexico, it was felt that South-South cooperation needs to be more vibrant and effective. Poor connectivity emerged as the biggest hindrance for investors — connectivity would go a long way in enhancing business between India and the LatAm and Caribbean region.”

“Trade and investments are below expectations in the region, while the shipment takes almost 60-90 days. And there are no direct flights,” sources added.

The region offers immense opportunities to Indian companies, especially in sectors such as energy, pharmaceuticals and agri business. Trade between India and Latin America is likely to double in the next five years from the current level of $46 billion, with direct shipping, air connectivity and visa-on-arrival, as well as free trade agreements, as some of the steps being taken to boost trade with the region.

While transportation costs and the lack of familiarity with each other’s markets were previously cited as the big impediments, the government is planning to improve connectivity to the region.

 

Experts say that the trade volume could easily go up to $ 100 billion if the leaders of both sides blend proactive diplomacy, address issues like enhancing connectivity and leverage multifarious win-win opportunities, especially in areas like energy, agriculture, nutritional processing, textiles, transport and IT & ITES.

Countries in the region, especially those landlocked like Bolivia, recognise that their connectivity too needs to be improved.

Seeking investments in developing Bolivia’s massive lithium deposits, which account for 60% of the world’s reserves, and keen on selling potassium and urea to India, minister for development planning René Orellana of Bolivia, told FE, “In an effort to improve connectivity, we are planning to improve our own infrastructure in Santa Cruz and creating a big business hub where big planes could land.”

Cuba, as pointed out by its ambassador, Oscar I Martínez Cordovés, has embarked on a rapid programme of modernisation and has in place special economic zones and technology.

Nicaragua is seeking Indian collaboration in the renewable energy space, which offers huge capacities for development of this alternate energy source. It is also looking at the Indian companies for mining too.

Countries like Haiti are anxious to see a balanced sharing of resources between the developed North and the developing and least developed countries of the South.

This is critical to pushing development in the growth-starved South, which is in urgent need of education, transfer of knowledge and technology, and use of great capacities in R&D for the socio-economic upliftment of its people.

Today, 60% of the current bilateral trade is in oil, hydrocarbons, minerals and agriculture commodities, but it is now moving into niche areas like pharmaceutical and IT services.

Article originally published here

Emerging Nations Have Taken the Lead on Renewable Energy

Historically speaking, wealthier, developed nations, particularly the US and Europe, have led the world on renewable energy, investing the most capital and building the most capacity. Last year, that changed.

In 2015, for the first time, countries outside the Organization for Economic Cooperation and Development (OECD) invested more in renewable energy and added more renewable capacity than the 15 OECD countries combined.

This is only a bit of symbolism — the lines have been converging for a while — but it is important symbolism.

Led by China, emerging nations have emerged

The finding comes from the 2016 Climatescope report from Bloomberg New Energy Finance (BNEF). It’s an annual snapshot of the state of clean energy in non-OECD countries. It goes deep, ranking countries on policies, finance, value chains, and various other metrics.

They’ve got an excellent data visualization to walk you through the results, if you’re interested, and a cool widget that allows you to compare any two countries on any set of metrics.

To me, the headline news is illustrated by two charts. This shows renewable-energy capacity additions from 2011 to 2015:

climatesope capacity additions(BNEF)

As you can see, after some fluctuations, non-OECD countries nosed ahead last year. It might bump around another year or two, but the longer term trend is clear: The center of clean-energy gravity is moving south.

And it’s almost entirely due to China. The country installed 142 gigawatts (!) of new power generation capacity in 2015, of which 33 GW was wind and 18 GW was solar PV. (Compare to India, which installed 27.8 GW of new capacity — 2.6 GW of wind and 1.7 GW of solar PV.)

This shows renewable-energy investment from 2011 to 2015:

climatescope investment(BNEF)

Again, these numbers might bump around for a few years, but renewable-energy investment in non-OECD countries is headed up, whereas investment in developed nations seems to have plateaued.

The surge in non-OECD investment is led by solar:

Investment in utility-scale solar in Climatescope nations spiked 43% from 2014 to $71.8bn in 2015. Total clean energy investment in Climatescope countries rose $24.8bn with solar accounting for nearly all of that. Photovoltaic (PV) costs are essentially on par with wind and, as recent tenders for power contracts have demonstrated, PV can now out-compete fossil-fuelled projects on price.

Solar and wind now dominate renewable-energy investment. “Together, [wind and solar] accounted for 65% of new clean energy investment in 2011,” BNEF writes. “By 2015, that had risen to 94%.”

And investment is spreading beyond China as well (this is from a different BNEF report):

An expanded list of emerging countries committed billions to clean energy last year with record increases, including Mexico ($4.2bn, up 114%), Chile ($3.5bn, up 157%), South Africa ($4.5bn, up 329%) and Morocco ($2bn, up from almost zero in 2014).

The world’s fate will now be decided by the race between coal and renewable energy in the Southern Hemisphere. Coal growth is slowing, but we are still headed for catastrophe.

This (okay, fine, three charts) is from the US EIA’s International Energy Outlook 2016:

EIA: energy sources through 2040(EIA)

If this unfolds, global average temperatures will exceed 2 degrees — possibly even 3 or 4. To stop short of 2 degrees, global coal use will need to be close to zero by 2040, with oil not far behind.

Emerging nations, like their OECD counterparts, are moving in the right direction, but too slowly.

Article originally published here