Haakon Fossum Sagbakken
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Clear all filtersLocal and Global Aspects of Coal in the ASEAN Countries
By 2020, coal mining and power generation had been growing in Southeast Asia for decades and were projected to rise to new heights of prominence in regional energy systems, weakening the energy security of all states in the region except Indonesia, jeopardizing the NDCs of the ASEAN states under the Paris Agreement and deepening existing domestic political fault lines. Coal utilization has well-known public health, agricultural, water security and economic consequences, many of which are magnified in Southeast Asia, with its high population density and limited wind and arable land. Paradoxically, the short-sighted focus on affordability imposes significant longer-term economic risks on these states as renewable energy prices fall, while ASEAN markets for such energy sources remain underutilized.
Local and Global Aspects of Coal in the ASEAN Countries
By 2020, coal mining and power generation had been growing in Southeast Asia for decades and were projected to rise to new heights of prominence in regional energy systems, weakening the energy security of all states in the region except Indonesia, jeopardizing the NDCs of the ASEAN states under the Paris Agreement and deepening existing domestic political fault lines. Coal utilization has well-known public health, agricultural, water security and economic consequences, many of which are magnified in Southeast Asia, with its high population density and limited wind and arable land. Paradoxically, the short-sighted focus on affordability imposes significant longer-term economic risks on these states as renewable energy prices fall, while ASEAN markets for such energy sources remain underutilized.
Funding flows for climate change research on Africa: Where do they come from and where do they go?
Africa has only contributed a small fraction of global greenhouse gas emissions yet faces disproportionate risks from climate change. This imbalance is one of many inequities associated with climate change and raises questions concerning the origin, distribution and thematic prioritization of funding for climate-change research on Africa. This article analyses a database comprising USD 1.51 trillion of research grants from 521 organizations around the world and covering all fields of research from 1990 to 2020. At most 3.8% of global funding for climate-change research is spent on African topics – a figure incommensurate with Africa’s share of the world population and vulnerability to climate change. Moreover, institutions based in Europe and North America received 78% of funding for climate research on Africa, while African institutions received only 14.5%. Research on climate mitigation received only 17% of the funding while climate impacts and adaptation each received around 40%. Except for Egypt and Nigeria, funding supported research on former British colonies more than other African countries. The findings highlight the need to prioritise research on a broader set of climate-change issues in Africa and to increase funding for Africa-based researchers in order to strengthen African ownership of research informing African responses to climate change.
The ASEAN climate and energy paradox
This article carries out a multisectoral qualitative analysis (MSQA) and policy integration analysis of six sectors important for climate mitigation in Southeast Asia in order to assess the status of the climate-energy nexus in the region. It concludes that Southeast Asia will be heavily affected by climate change but the mitigation efforts of the member states of the Association of Southeast Asian Nations (ASEAN) are incommensurate with the threat they face. Their nationally determined contributions under the Paris Agreement are modest, they have a low proportion of renewable energy in their energy mixes, a modest target for raising the share of renewable energy and they are not likely to reach this target. The ASEAN countries have also been slow to adopt electric vehicles and to accede to the International Renewable Energy Agency (IRENA), while continuing to burn their forests, channel subsidies to fossil fuels and invest in new coal power plants. If ASEAN accelerated decarbonization, it could seize business opportunities, secure its standing in the international political system and climate justice discussions, and increase its chances of reaching the United Nations Sustainable Development Goals (SDGs).
Vietnam: Six Ways to Keep Up the Renewable Energy Investment Success
Vietnam is one of the most attractive destinations for renewable energy investment in ASEAN. In 2018, the country attracted USD 5.2 billion. In 2019, the share of renewable energy in the energy mix was 9%, thus already exceeding the 7% target set for 2020. If Vietnam is to continue its success and compete globally for investment in renewable energy, it will need to further develop its investment climate. The competition is heating up in this area, and an increasing number of countries have similar conditions and frameworks for renewable energy investment. Therefore, every improvement may help boost a market’s relative attractiveness. We propose six actions that can further enhance the attractiveness of Vietnam’s renewable energy sector for investment from both domestic and international investors: prioritise renewable energy in the governance system; streamline the regulatory framework; facilitate market entry for investors; improve transparency and communication about the investment regime; improve grid expansion planning; join IRENA to further build the capacity for renewable energy governance.
Thailand: Improving the Business Climate for Renewable Energy Investment
Thailand is among ASEAN’s renewable energy leaders. It attracted more than USD 10.7 billion of investment in renewable energy from 2006 to 2018. The country’s total installed capacity of renewable energy represented over 60% of the total capacity of ASEAN in 2019. Renewables accounted for 15% of its energy mix in 2018, and a target of 30% in 2036 was set. Despite this, during 2018–2019, Thailand experienced relative stagnation in terms of attracted investment. We propose five actions that can improve the attractiveness of Thailand’s investment climate for renewable energy in both the short and long term: set up a dedicated ministry for governing renewables; expand and improve the regulatory framework; capitalise on its peer-to-peer energy trading experience; simplify market entry for foreign investors; build capacity for renewable energy governance.
Singapore: How to Attract More Investment in Renewable Energy?
Singapore has limited renewable energy potential due to its small surface area and the limited space available. Solar power has the greatest potential. Given the country’s limited spare land, rooftops and vertical spaces on high-rise buildings are of particular importance. Singapore set a target of producing solar energy to cover 350,000 households in 2030 that would be equivalent to 4% of the country’s current electricity demand. In 2019, solar energy accounted for less than 1% of Singapore’s total energy mix. We propose four actions to improve the investment climate for renewable energy in Singapore: develop incentive and regulatory support mechanism; consolidate solar energy governance; mobilise equity investors and lenders; specialise in the long-distance trade of renewable energy, especially in the form of hydrogen.
The Philippines: How to Leapfrog from a Complicated Renewable Energy Sector to an Attractive One
The Philippines set the target of increasing the share of renewable energy in its energy mix from 16.9% in 2019 to 26.9% by 2030. This ambitious target requires significant additional investment in renewable energy. It has been estimated that the Philippines could attract USD 20 billion in renewable energy investment through auctions between 2020 and 2030. To achieve this, the investment climate for renewables needs to be improved. Over the last few years, other ASEAN countries such as Vietnam, Malaysia and Thailand have been viewed as more attractive markets by foreign investors. We propose five actions that can improve the attractiveness of Philippines’ investment climate for renewable energy and help it join the regional race for investment: prioritise renewables in the energy governance system; enforce existing regulatory and fiscal policies; raise the targets and develop an investment roadmap; facilitate market entry for renewable energy investors; build capacity for renewable energy governance.
Myanmar: How to Become an Attractive Destination for Renewable Energy Investment?
Myanmar is endowed with abundant renewable energy resources, and its solar potential is the greatest in the Greater Mekong Subregion – yet, this potential remains largely untapped. The country’s 50% electrification rate remains the lowest in ASEAN, and the government plans to electrify the entire country by 2030. The share of renewable energy in the energy mix is expected to rise from less than 1% in 2020 to 12% in 2025. In addition to expanding electricity access, renewable energy could also stimulate much-needed employment and economic growth in Myanmar. We propose five actions that can improve the investment climate in Myanmar for renewable energy investment: strengthen renewable energy governance; join IRENA and intensify capacity building; adopt a feed-in tariff or auction mechanism; build a regulatory framework for renewable energy; simplify the business environment for investors.
Malaysia: How to Scale Up Investment in Renewable Energy
Malaysia set a target of 20% renewables in the energy mix by 2025, an 18% increase from the 2% it had in 2018. One of the planned measures is the development of large-scale solar power. To reach the target, it will be necessary to attract a total of USD 8 billion of renewable energy investment during this period. Considering the fact that Malaysia attracted only USD 2.5 billion from 2006 to 2018, the country will need to attract USD 1.3 billion on average every year from 2019. To achieve this, it will need to undertake serious reform measures to improve the investment climate for renewables and conditions for renewable energy deployment. Given the ever-increasing global competition for renewable energy investment, the rapid implementation of such reforms becomes an imperative. This in turn requires strong governance. We propose five actions that can improve the attractiveness of Malaysia’s investment climate for renewable energy to 2025 and beyond: reform energy governance in favour of renewable energy; ensure streamlined management of the regulatory framework for renewable energy; develop a framework for easier grid connection and use; enhance awareness-raising measures for investors; make market entry easy and attractive.