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Save energy, save the world

0 CommentsPrint E-mail China Daily, November 23, 2010
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Editor's note: Negotiations for a global deal to reduce greenhouse gas (GHG) emissions have progressed slowly and the window of opportunity to ward off the disastrous outcome of global warming is closing fast. Urgent and concerted global efforts are needed to stabilize emissions. Vinod Thomas, senior vice-president of the World Bank, tells China Daily reporter Li Jing what countries can do in this regard.

Only a global agreement can prevent emission of excessive GHGs and ensure the market functions properly. But the difficulties of climate negotiations have prevented countries from reaching such an agreement.

Given the situation, governments, especially in developing countries, should start allotting public funds to demonstrate green projects, such as those on energy efficiency and forest protection, to attract private capital and diffuse the technologies on a larger scale. Initial public investments even in small amounts can leverage private funds in demonstration projects on a larger scale and thus multiply social gains.

Improving energy efficiency can reduce GHG emissions greatly. That's why the World Bank Group increased its yearly investment in renewable energy and energy efficiency from $200 million in 2003 to $2 billion in 2008.

But overall, the leveraging has not progressed very far because of, among other things, the political difficulties some governments are facing. Heavy subsidies granted to traditional dirty fuels and other natural resources are a big problem, too.

Current energy subsidies across the world add up to about $5 billion. This makes improving energy efficiency or using renewable energy less attractive. Policies to phase out such subsidies can result in a significantly lower level of GHG emissions.

It is necessary, too, to build monitoring and evaluation processes into the demonstration projects so that the experience can be multiplied. But this process is almost non-existent in many of the current pilot projects because of which technologies and practices and cannot be spread.

A pilot project need not only be attractive. It is also important for governments to have a strong political will to move beyond demonstrations, because the market may not always respond with the same passion.

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