The World Bank responds to Greenpeace

Jamal Saghir, the director of the energy, transport, and water programs at the World Bank responds to a Foreign Policy article by Phil Radford, the executive director of Greenpeace USA.

Mr. Radford's recent column "Banking on Coal" provides a highly misleading and inaccurate picture of the World Bank Group's efforts to help countries fight poverty and develop energy sustainably.

He asserts that the World Bank Group is funding coal projects to the detriment of renewable energy (RE). Wrong. Our RE and energy efficiency (EE) financing levels are at historic highs -- over 40 percent of total fiscal year 2009 energy financing.

He says the Bank has been increasingly subsidizing coal projects. Wrong. Our fossil fuel share of financing has been declining for years, and two thirds of our fossil fuel financing is for natural gas, the cleanest fuel for base-load supply. Mr. Radford cites 2008 as a big year for coal financing, but neglects to mention that in fiscal year 2009 our coal financing then dropped 62 percent. Mr. Radford says that Bank fossil fuel financing is twice what we finance in RE/EE projects. Wrong again. In fiscal year 2009 we financed more RE/EE projects (over 40 percent) than fossil fuels (about 32 percent).

Over the last six years, coal represented 7.5 percent of all World Bank Group financing for energy. In some years it was as low as one or two percent. And fully a third of the spending on coal is to clean up inefficient, polluting old plants, something that surely Greenpeace would not want us to stop.

Mr. Radford criticizes the Bank's recently released draft energy strategy. We haven't issued a draft strategy. What we are doing is consulting in an open way with key stakeholders, including civil society organizations, whose input will help us to write a draft strategy next year.

Mr. Radford's criticisms lack context. He says that the Bank-financed projects are a significant source of the world's greenhouse gas emissions. Wrong. Our projects are a minuscule fraction of the global footprint. The new proposed South African project he criticized will use the cleanest super-critical technology and has $750 million in financing for renewable energy and low carbon energy efficiency components that otherwise would not be part of the project.

We're proud to be a leader in advancing environmental financing innovation, such as the Climate Investment Funds ($6.3 billion pledged with $3.2 billion in investment plans already endorsed to support more than $30.5 billion in clean technology projects), the Forest Carbon Partnership Facility, climate risk management products, and "Green Bonds."

The bottom line is that for our 186 member countries, our primary focus is fighting poverty. There are 1.6 billion people living today without access to electricity. Under very limited, case-by-case situations with strict criteria, and when alternative lower-carbon technologies are not immediately available, we will support least cost, carbon-based energy solutions. And we will do this as an interim measure while we continue to help a country prepare for a cleaner energy development path in the medium term.

The Indian plant he references will have lower emissions than the average for OECD countries (2005). Turning away from South African or Indian aspirations for affordable energy means turning away from energy for schools and hospitals and homes in those countries. It's particularly ironic for Mr. Radford in the United States to criticize our very modest portfolio when half of U.S. electricity comes from coal. While the World Bank Group is working to support low carbon paths, Mr. Radford advocates a double standard that will help ensure poor countries will not cooperate in addressing global climate change.

The World Bank Group is committed to fighting poverty and supporting economic growth and opportunity in a sustainable manner. Our increased lending for renewable energy and energy efficiency and our innovative financing demonstrates that we are serious about it.

See the World Bank's climate site here

John Moore/Getty Images

How Russian nukes power America

Posted By Bobby Pierce

 

"And they shall beat their swords into plowshares," could easily be turned into, "And they shall dismantle their nuclear warheads into enriched uranium for nuclear power plants."

The New York Times reports 10 percent of electricity in the United States is generated from old nuclear bombs. For comparison, hydropower accounts for 6 percent and solar, biomass, wind and geothermal combined account for 3 percent.  No data exists for how much power bunnies contribute.

In recent years, disarmament has generated a wealth of nuclear fuel. As the New York Times article says, "the fuel from missiles that may have once been aimed at your home may now be lighting it."

45 percent of nuclear fuel in American reactors comes from old Soviet bombs. The problem is that the fuel is running out, and in order to keep powering 4.5 percent of the United States more disarmament is needed.  

The old program, known as Megatons to Megawatts will end in 2013, but because nuclear plants need to buy fuel three to five years in advance, the issue is of utmost importance right now. A new supply of fuel would become available if the United States and Russia would agree to renew the Strategic Arms Reduction Treaty, which expires in December. Currently the USA has 2,220 warheads and Russia has 2,800.  

With or without the added Soviet fuel, the US is investing heavily in the old-bombs-to-new-fuel strategy, as a factory is being built in South Carolina to dismantle American warheads. It will be able to recycle 34 tons of nuclear fuel that can power a million homes for 50 years.

United Nations Photo/Flickr

Obama might head to Copenhagen?

Posted By Annie Lowrey

The headline on this story reads: "Obama will go to Copenhagen to clinch deal."

That's a touch misleading.

What the headline on this story should really read is: "Obama will go to Copenhagen if and only if his appearance is necessary in order to clinch a deal."

On one hand, this is good news. Even if the United States can't be a strong party in climate change negotiations, it is of vital importance that Obama act as a strong diplomat and negotiator on this issue. The whole world is at stake.

On the other hand, isn't this a bit rich? The U.S. slow-walk on this issue is part of the reason the Copenhagen negotiations have been so fraught. If a comprehensive agreement falters in December, the United States will be in no small part to blame. But its leader might parachute in at the last moment to save the day? Sigh.

LLUIS GENE/AFP/Getty Images

Iraq looks to go nuclear

Posted By Mardy Shualy

28 years ago, Israel launched an airstrike against the Osirak nuclear reactor near Baghdad, terrified by the prospect of an Iraq with nuclear weapons. 19 year ago, the U.N. imposed comprehensive economic sanctions against Iraq, declaring the country's nuclear program needed oversight. Seven years ago, former president Bush announced that an Iraq with access to weapons of mass destruction, potentially including nuclear technology, demanded a U.S. military response.

And six years after that invasion, Iraq is lobbying to rebuild nuclear reactors. Just one more entry for FP's list of states looking to go nuclear to lose sleep over.

Photo: RAMZI HAIDAR/AFP/Getty Images

Sweden burns bunnies for warmth

Posted By Bobby Pierce

Move over ethanol, there is a new bio-fuel in the world... bunnies.

Thousands of stray rabbits in Sweden are being shot, frozen and then burned for heat. Stockholm even hires rabbit hunters for the task, like Tommy Tuvuynger, a modern day Elmer Fudd.

"We are shooting rabbits in Stockholm center, they are a very big problem," he said. "Once culled, the rabbits are frozen and when we have enough; a contractor comes and takes them away."

Tuvunger is leading the fight to continue sniping bunnies for warmth. Several animal rights groups in Sweden have come out in opposition to the practice, saying that if the rabbits are a problem there are non-lethal ways to deal with them. But Tuvunger is having none of that, "If you do that you only move the problem 100 meters away."

YOSHIKAZU TSUNO/AFP/Getty Images

EXPLORE:EUROPE, ENERGY

Friday Photo: Germany launches giant solar projects

Posted By Michael Wilkerson

Spiegel reports:

This week, two of Germany's most important solar energy projects came online -- the second biggest solar power project in the world and one of the first solar thermal "power towers." The projects are part of the country's plan to provide 20 percent of its energy through renewable sources.

Officials flicked on the switch at two of Germany's most important new solar energy sites on Thursday. In the eastern state of Brandenburg, the world's second-largest solar energy project went online. And halfway across the country, in North Rhine-Westphalia, a smaller scale but perhaps equally important facility launched -- Germany's first solar-thermal power plant.

 

MICHAEL GOTTSCHALK/AFP/Getty Images

Kuwait with polar bears

Posted By Joshua Keating

Josh Kucera has been blogging this week from newly self-governing Greenland and shares a mind-blowing statistic:

Greenland’s government, using US Geological Survey data among others, says that the mean estimates for its oil reserves is about 50 billion barrels. That number is a bit abstract, so I did some math: The island has about 56,000 people, and if things go as they appear to be going, it will be an independent country some time in the next couple of decades. That means each Greenlander will own about 900,000 barrels of oil.

Compare that to some other oil powers. These are the top three countries in terms of oil reserves per capita:

Kuwait: 39,900 barrels per person
UAE: 37,576 barrels per person
Qatar: 18,071 barrels per person

Yes, Greenland could have 50 times more oil per capita than Kuwait.

There's more.

EXPLORE:ENERGY

Iran exports the resource curse

Posted By Elizabeth Dickinson

As the world watches Iran, one unexpected country is paying particularly acute attention: Uganda. That country's oil-exporting future lies -- for now at least -- in the hands of whoever sits in power in Tehran.

The country's President Yoweri Museveni recently concluded talks with Iran's President Mahmood Ahmadinejad for the  construction of an oil refinery in the East African country. At least some of the funding for the refinery will come from Iran (reports vary on how much -- for example here and here). Tehran also promised to instruct Ugandans at its University of Petroleum Studies and invest throughout the oil pumping chain.

Uganda is a newcomer to the world of oil export. Its resources, now estimated at 2 billion barrells (Iran, by comparison, has reserves of about 130 billion), are just now beginning to come online. The deal with Iran is aimed at making the country's oil industry self-sufficient and value added; unlike other exporters on the continent such as Nigeria, crude oil will be refined in country and sent as a finished product for export. In theory, that could save the country some money -- and the need to ironically re-import its own gasoline. But some wonder if the refinery, at an estimated cost of $1.3 billion, will really be cost effective for a country looking to pump out just 100,000 barrels per day.

Either way, it's somewhat disconcerting to imagine Uganda following in Iran's path as an energy giant. The behemoth of oil revenues failed to improve the country's lot last year; and instead, economic calamity set in. If Uganda looks to that example, Iran's election outcome isn't the only gamble in the country's future. 

EXPLORE:AFRICA, ENERGY, IRAN

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January/February 2010