Global Implementation of Renewable Energy - American Chemical

Chapter 7

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Global Implementation of Renewable Energy Barry Hartweg* Baylor University, 1301 University Parks Dr., Waco, Texas 76798, United States *E-mail: [email protected].

Effort is being made to use renewable energy in place of fossil fuels on an international level. The Conference of Parties meetings have helped set a framework to encourage renewable energy use. Every country will need to have a customized approach in order to effectively implement renewable energy internationally. Industrialized nations such as the European Union, oil-exporting countries such as Saudi Arabia, and developing nations such as Cambodia all need different methods in order to phase out fossil fuels.

Introduction The largest source of greenhouse gas (GHG) emissions is from our energy supply, which produces 26% of global GHG emissions (1). Transitioning to renewable energy is one of the most viable options we have to curb our GHG emissions from the energy sector; however, the task of implementing renewable energy on a global scale is much easier said than done. I had the amazing opportunity to travel to the 20th Conference of Parties (COP20) for the United Nations Framework Convention on Climate Change (UNFCCC) in Lima, Peru in December 2014. The COP20 consisted of negotiations among delegates from all Parties to the UNFCCC, specficially focusing on forming the anticipated Paris Agreement that would be signed at the following COP21 in Paris. At the conference, if one solely focused on the negotiation among Party delegates, it would be easy to be discouraged by the lack of progress. However, the conference was so much more than detailed neogiations. From the daily “Fossil of the Day” presentation, animated protests, and the impassioned speakers, it was clear that there was a global interest in combatting climate change. © 2017 American Chemical Society

Peterman et al.; Climate Change Literacy and Education Social Justice, Energy, Economics, and the Paris Agreement Volume ... ACS Symposium Series; American Chemical Society: Washington, DC, 2017.


My main focus at the COP20 was to learn about current efforts to implement renewable energy. I attended talks from a variety of Parties, such as Japan, Indonesia, the European Union (EU), various African nations, the Gulf Cooperation Council (GCC), and Peru, among others. I spoke with many people from a diverse range of non-governmental organizations (NGOs) and governmental institutions. These organizations and Parties both discussed how they are working to incorporate the use of renewable energy sources on a global scale, thereby reducing global GHG emissions. These discussions alongside my participation in the COP20 led me to conclude that there is no “one size fits all” solution to promote global adoption of renewable energy. The various discusions gave me a greater appreciation of how complex the switch to renewable energy will be. Developing nations such as India, Cambodia, Indonesia, Peru, and Rwanda are focused on more basic needs such as providing clean water, expanding power grids to reach rural areas, improving healthcare, etc. It is particularly difficult for these countries to focus their efforts and money on developing renewable energy projects. On the other hand, industrialized nations like the United States, the EU, Japan, and Canada are in a much better position financially to make a transition to renewable energy, but they still have unique challenges of their own as they work to successfully phase out fossil fuels.

Kyoto Protocol The Kyoto Protocol highlights the difference between industrialized and developing nations by completely separating their responsibilities for reducing carbon emissions. This treaty uses the convention’s designation of the Parties to help assign emission reduction targets. The designations are Annex I, Annex II, Non-Annex I, and Least-Developed Countries (LDCs). Annex I Parties are made up of industrialized nations that were a part of the Organization for Economic Co-operation and Development (OECD), and countries with economies in transition (EIT Parties) such as the Russian Federation and Eastern European countries. Annex II includes the OECD members but excludes the EIT Parties. Non-Annex I and LDCs are mostly developing nations. The Kyoto Protocol legally binds the Annex I and Annex II Parties to GHG emission reduction targets. Annex II Parties are required to give financial aid to help developing countries reduce their GHGs, while Annex I Parties are not required to financially aid developing nations. Non-Annex I and LDCs are not bound to any GHG emission reduction targets (2). A total of 192 Parties ratified the Kyoto Protocol, with the United States as the most the most notable Party in a small number of Parties to abstain. The first commitment period of the Kyoto Protocol started in 2008 and ended in 2012. Under this commitment period, industrialized Parties commited to reduce their GHG emissions by an average of 4% below their 1990 GHG emission levels. For these Parties, the protocol was quite successful as they surpassed their emission reduction targets by 24%. Unfortunately, it was not successful in reducing GHG emissions globally (3). Just before the first commitment period was over, the Doha Amendment was adopted in 2012, which provids a second commitment period 82



that started in 2013 and ends in 2020. Currently, 74 Parties have ratified this amendment to the Kyoto Protocol (4). While the Kyoto Protocol has been instrumental in taking steps towards a low carbon future, ultimately it has failed to reduce GHG emissions on a global scale in the first commitment period. This failure is largely due to the division of emission reduction resposnibilities. It is reasonable that industrialized Parties should have the most ambitious GHG reduction targets, as they have the financial and technological resources to achieve these goals. Moreover, industrialized nations are more primed to provide aid to developing nations that cannot allocate their own resources toward renewable energy projects. Unfortunately, GHG emission data proves that developing nations should also be held accountable for the emission reduction effort. According to the World Resources Institute, five out of the top ten worst GHG-emitting countries between 1990 and 2011 are considered Non-Annex I Parties by the Kyoto Protocol. These five countries alone made 30% of the global GHG emissions during that time period (5). It has been largely recognized that developing nations need to be held accountable for their GHG emission. This realization led to the Paris agreement, a new international agreement that addresses climate change mitigation and adaption.

Paris Agreement One of the main goals of the Paris Agreement is to hold the warming of the planet “well below” 2°C above the global average temperature. Other important goals include peaking GHG emissions as soon as possible and achieving net-zero emissions in the second half of the century. The Paris Agreement requires climate change mitigation efforts of all Parties, instead of holding only Annex I and Annex II countries to reduce GHG emissions, as the Kyoto Protocol does. Each party must submit intended nationally determined contributions (INDCs) that identify their reduction targets and their plans to reach that goal. These INDCs must be revised at least once every five years to ensure ambitious emission reduction targets (6). Compared to the Kyoto Protocol, the Paris Agreement is more focused on the process of determining targets and holding Parties accountable, as opposed to achieving strict quantified emission reduction goals. This attribute of change promotes global responsibility of mitigating climate change, while simultaneously allowing Parties the freedom to develop their own goals that suit their unique situtations politically, geographically, economically, etc.

Industrialized Nations The EU has been quite successful in terms of their GHG emission reduction. In 2014, the GHG emissions for the collective 28 EU countries (EU-28) were reduced to 22.9% below their 1990 levels, which has already surpassed their 2020 goal to reduce their GHG emissions to 20% below their 1990 levels (7). In order to continue to achieve such a high level of success, the EU has set up clear goals for renewable energy use, national action plans for each country, and mechanisms to allow cooperation among EU countries. 83 Peterman et al.; Climate Change Literacy and Education Social Justice, Energy, Economics, and the Paris Agreement Volume ... ACS Symposium Series; American Chemical Society: Washington, DC, 2017.


In 2009, the EU published the Renewable Energy Directive with the binding goal of producing 20% of their energy from renewable sources by 2020 and at least 27% by 2030 (8). These targets permit flexibility for countries as there are not strict targets for what source of renewable energy is to be used or how much emission reduction needs to come from each country. This freedom allows for each country to leverage resources most efficient for them. For instance, Spain has a high potential for solar energy, especially in the southern part of the country, while Denmark has a high potential for wind energy due to the strong winds from the North Sea (9). Through the Renewable Energy Directive, each country is required to submit a renewable energy national action plan. These plans include detailed targets for various energy sectors, a list of the different renewable technologies planned to be used, policies to be used to achieve their target, and any anticipated coordination with other countries, such as joint projects. Requiring the submission of these plans is essential, as it forces each country to develop concrete and realistic ideas for how they can implement renewable energy into their energy mix. There is no requirement for exactly how much each country must contribute, as long as the EU as a whole has at least 20% of its energy supply produced by renewables by 2020. For example, Malta is a small, fairly isolated island nation with limited access to renewable resources, so it makes sense that they would only plan to have renewables contribute 10% of their energy consumption by 2020. Whereas Sweden, for example, is already quite progressive and fairly wealthy with renewable resources, and they will help make up the difference by planning to produce 59% of their energy from renewable sources by 2020 (10). Those countries that choose to contribute more than their share can compensate for those countries that cannot without making substantial sacrifices. The mechanisms set up by the Renewable Energy Directive also permits cooperation and coordination to permit the transfer of renewable resources from resource-rich countries to resource-poor countries. These mechanisms include statistical transfers of renewable energy, joint renewable energy projects, and joint renewable energy support schemes. A statistical transfer allows countries to deduct an amount of renewable energy from their progress and add it to another country’s progress for their renewable energy target. Through this transfer, no energy is physically exchanged; this encourages countries to exceed their target to receive payment. Joint projects encourage the EU countries to work together to develop and implement a renewable energy project, enabling each participating country to earn renewable energy credits to help meet their target. Joint support schemes let EU countries co-develop renewable energy incentive policies such as a common feed-in tariff, a common quota, or a certificate trading regime (11). These mechanisms are a great way to encourage the development of new renewable energy projects. This cooperation is especially helpful for countries who lack the renewable and/or financial resources to develop. There is a lot to learn from the EU-28 with regard to implementing renewables and ultimately reducing GHG emissions, as they have already achieved a high level of success. A coherent plan is in place that requires nations to submit detailed action plans for how they plan to implement renewable energy into their energy mix without requiring each nation to achieve a pre-determined percentage 84


of renewable energy. The plan gives each country the ability to determine how ambitious to be and what types of renewable energy to use. The Renewable Energy Directive also provides the opportunity for countries to collaborate with other countries, allowing ambitious countries to aid those countries that may have difficulty in achieving their targets alone.


GCC Countries While at COP20, I took a particular interest with the GCC countries, which include Middle Eastern countries like Saudi Arabia, Kuwait, Qatar, etc. A majority of their talks pertained to energy issues faced within the area. In addition to talking about renewable energy projects, I found it interesting to observe how countries are working to mitigate climate change when their main source of revenue is from oil and gas. In particular, I was impressed with current efforts to construct a solar panel research, development, and manufacturing complex in Saudi Arabia. Under the UNFCCC, all of the GCC countries are listed as Non-Annex I Parties, meaning they are not legally bound to any GHG emission reduction targets under the Kyoto Protocol. Between 1990 and 2008, CO2 emissions in Saudi Arabia from fossil fuels rose by over 200% and continue to rise (12, 13). Under the Kyoto Protocol, Saudi Arabia’s efforts to mitigate climate change have been largely inadequate. Days after the Paris Agreement was opened for signing Saudi Arabia announced a plan called Vision 2030. This plan covers a wide spectrum of issues, but one of the main goals is to grow Saudi Arabia’s economy by “investing for the long-term.” Vision 2030 sets out to diversify Saudi Arabia’s economy beyond oil and gas, which includes the development of its renewable energy sector (14, 15). Through Vision 2030, Saudi Arabia plans to raise their share of non-oil exports from 16% of their GDP to 50% by investing in a variety of different industries, including retail and mining. This effort to diversify is encouraging, as it shows they are beginning to recognize that an economy based on oil is neither sustainable for the planet nor their economy. However, this does not mean that Saudi Arabia seeks to slow down the production of oil and gas. In fact, the Vision 2030 plan claims that Saudi Arabia will double their gas production and build a new gas distribution network (16). One particularly exciting project is Saudi Arabia’s plan to develop a stronger renewable energy market, in which their goal is to be a center for research, development, and manufacturing of renewable energy. Due to Saudi Arabia’s large resources of raw input materials for renewable projects (e.g. silica and petrochemicals), they plan to localize production of materials for these projects. Their goal is to generate 9.5 GW of renewable power (roughly 10% of their energy mix) by 2030. While at first glance this may seem like an ambitious target, it will only make a fairly small dent in their energy mix, as Saudi Arabia’s energy consumption is expected to triple by 2030, Saudi Arabia’s Energy Minister, Khalid Al-Falih, has said “Our energy mix has shifted more toward gas, so the need for high targets from renewable sources isn’t there anymore. The previous target of 50% from renewable sources was an initial target and it was built on 85 Peterman et al.; Climate Change Literacy and Education Social Justice, Energy, Economics, and the Paris Agreement Volume ... ACS Symposium Series; American Chemical Society: Washington, DC, 2017.


high oil prices.” Al-Falih continues, “Gas currently makes up around 50% of the energy mix in Saudi Arabia, and we have an ambition to see this grow to 70% in the future (17).” It is reasonable that the plan for Saudi Arabia would be influenced by the oil market, but such a drastic drop in mitigation efforts is quite extreme. Saudi Arabia has signed and ratified the Paris Agreement as of November 2016. They have not set a specific GHG emission reduction target and have submitted an “actions only” mitigation contribution with the actions that are largely set out by the Vision 2030 plan (18). It seems that Saudi Arabia is choosing not to be near as ambitious in their mitigation plan as they could be, putting their economic growth first and foremost and leaving sustainability and climate change mitigation far from their top priorities. It is encouraging to see Saudi Arabia, the world’s leading exporter of oil, making moves towards a cleaner future. With the announcement of Vision 2030, they have shown that they are looking to drastically increase their non-oil exports. It also shows that they are planning to develop their renewable energy sector. These steps are an essential recognition that oil is not a sustainable resource, but there is still a lot of room for improvement and a more ambitious renewable energy plan. Even with these anticipated changes, Saudi Arabia’s CO2 emissions are likely to continue to drastically increase with the expected increase in energy consumption.

Developing Nations For the 2015-2016 school year, I had the opportunity to teach science for middle and high school students in Phnom Penh, Cambodia. While I consider myself a fairly environmentally conscious person, it was difficult to be too worried about Cambodia’s GHG emissions and their mitigation efforts. Virtually everywhere I travelled within the country, I witnessed large families living in structures that could barely be even considered shacks. I lived in the capital and the largest city in Cambodia, where access to electricity and water was not an issue—outside of the ridiculously high prices for electricity, that is. I paid almost four times what I currently pay in Texas. While, a short tuk-tuk ride away from the center of the city made it very apparent that the vast majority of the country did not live this way. Outside of Cambodia’s larger cities/towns, access to electricity is limited. Phnom Penh uses 90% of Cambodia’s total electricity consumption, even though the city only accounts for roughly 10% of the country’s population (19). Needless to say, it is understandable that for developing nations in similar situations expensive renewable energy projects are not their top priority. However, through the Kyoto Protocol and the Paris Agreement, there are still methods that will help countries like Cambodia develop in a more sustainable way. Prior to my time at COP20, I did not know much about the specific mechanisms that the Kyoto Protocol set up to aid parties so that all of their GHG emission reductions did not have to come from domestic projects. These mechanisms could count towards their GHG emission reduction targets, while simultaneously funding the development of carbon reducing projects in 86



developing nations. One commonly used mechanism was the clean development mechanism (CDM). The CDM allows Annex II Parties to implement an emission-reduction project in developing countries, which can earn the Annex II Parties emission-reduction credits that can count towards reaching their target (20). At COP20, I visited a side event from Japan where they discussed a mechanism developed to aid other countries called the joint credit mechanism (JCM). This mechanism helps to achieve Japan’s reduction target as well as earn the partner country GHG reduction units (21). They had representatives from a handful of the countries that Japan had helped come speak about the JCM project developed in their country. There was a speaker from Mongolia who discussed the project that helped them develop cost-effective and energy-efficient water boilers in Mongolian homes. Another speaker from Cambodia talked about a feasibility project to determine if developing electric powered tuk-tuks would be a cost-effective form of carbon-emission reduction in their country. It is difficult for developing nations to allocate resources to fund GHG emission reducing projects, which is part of why these CDM and JCM-type projects are invaluable. It is estimated that leading up to 2012, CDM projects helped to remove as much as 1 billion tons of GHG emissions (22). These mechanisms demonstrated an amazing aspect of the UNFCCC that can allow countries to earn credit for reducing their GHG emissions, while aiding developing nations in a practical and sustainable way. While CDM projects will be a major player for emission reduction in developing countries like Cambodia, it is also important for them to have a plan of their own to develop sustainably. In terms of Cambodia’s energy supply, they face two major problems, which include their dependence on foreign-supplied energy and their limited access to electricity in rural areas. Currently, more than 50% of Cambodia’s electricity is imported from neighboring countries, and most of that which is generated locally comes from imported fuel (23). This dependence on foreign energy sources has resulted in extremely high electricity prices, especially in the rural areas that have limited access to electricity. The larger cities account for the vast majority of the country’s electricity consumption, while only making up roughly 15% of the population. 85% of the population lives in rural areas, yet only 15% of this rural population has access to electricity. Developing electricity services for this rural population is one of Cambodia’s main goals. They have developed a plan called the Rural Electrification Plan that aims to accomplish this task. The major goals of this plan include having 100% of villages with electricity access by 2020 and 70% of rural households with electricity access by 2030. The remaining 30% of households fall under a different plan called the Renewable Energy Development Program, which will rely largely on solar applications to provide energy to remote regions of Cambodia. While the major focus of the Rural Electrification Plan is to expand Cambodia’s electricity grid, the plan does take into consideration the development of renewable energy. There are other plans, such as the Renewable Electricity Action Plan (REAP), that focus more on the development on renewable energy. REAP seeks to have 5% (or 6 MW) of new electricity generation come from small-scale hydropower (23). Cambodia is rich with potential for renewable energy, especially hydropower, biomass, and solar energy, making renewable energy a great option for Cambodia. 87



Renewable energy would greatly reduce their dependence on foreign-supplied energy sources. It also would help to make electricity available in remote areas, as they could use the resources available in the immediate area to generate electricity. As of this writing, Cambodia has signed the Paris Agreement but has yet to ratify the agreement. They have submitted a conditional INDC, proposing to reduce their emissions by 27% their expected business-as-usual emissions (18). One possible way to create more ambitious emission reduction goals among developing nations would be to develop plans similar to the EU’s Renewable Energy Directive. Nations within a given region could aid each other in one overall emission reduction target among all nations involved. This would allow nations to benefit off of each other’s natural resources, especially in nations where resources for renewable energy are scarce. For example, nations that are members of the Association of Southeast Asian Nations (ASEAN) like Cambodia, the Philippines, Singapore, etc. could set an overall emission reduction target of 10% below typical emissions among all members of ASEAN. More wealthy nations like Singapore would be more likely to set ambitious goals that are higher than the 10%, allowing other nations involved to benefit. Developing nations face a difficult set of challenges. Their primary focus is advancing as nations in order to create better lives for their citizens, but there is a strong pressure to develop in a sustainable manner. CDM-type projects are a great opportunity for industrialized nations to earn credit towards their GHG emission reduction targets while spurring sustainable development in developing nations. Each country has a unique set of obstacles, which is why it is crucial for all developing nations to lay out a plan for their own development. Not all nations will be able to set extremely ambitious goals with regards to GHG emission reductions, but taking GHG emission reduction into consideration is an important stepping stone in creating a low-carbon future.

Conclusion Replacing fossil fuels with clean, renewable resources is not a simple task with a “one-size-fits-all” solution, but the Kyoto Protocol and Paris Agreement have set up a great framework to make this feat more achievable. These treaties have made it commonplace for countries, even countries as poor as Cambodia, to develop plans for renewable energy. The EU has released an ambitious plan, which allows EU nations to work together in accomplishing the overall emission-reduction target for the EU. Their goal is to have 20% of their energy come from renewable resources, and they have already achieved 22.9%. Industrialized and developing nations alike can look at the EU’s plan as a model, as it encourages nations to work together to utilize the unique resources available in each country to achieve ambitious emission-reduction targets. It is encouraging to see countries whose economies are dependent on oil exporting, like Saudi Arabia, working towards developing sustainably. While these plans are largely influenced by the oil market, they are still looking to expand their exports beyond oil and to implement renewable energy into their energy mix. The CDM-type mechanisms that have been set up by the Kyoto Protocol will be instrumental 88



in the growth of renewable energy in developing nations. These projects help industrialized nations earn emission reduction credits while encouraging sustainability in developing nations. It is also important for developing nations to set out their own plans for advancing renewable energy. Cambodia has modest plans to develop renewable energy, but naturally, their main focus is expanding the electricity grid to parts of the country without access to electricity. Overall, it is promising to see nations making strides to develop and implement renewable energy on a global scale. However, these strides are by no means perfect nor complete. In order to successfully phase out fossil fuels, a much greater level of ambition is needed. Through international coordination, there is hope to successfully curb our GHG emissions and mitigate climate change.

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11. Cooperation Mechanisms, Energy, European Commission. https:/ /ec.europa.eu/energy/en/topics/renewable-energy/renewable-energydirective/cooperation-mechanisms (accessed Oct. 26, 2016). 12. Saudi Arabia Fossil Fuel CO2 Emissions, Carbon Dioxide Information Analysis Center. http://cdiac.ornl.gov/trends/emis/tre_sau.html (accessed Oct. 29, 2016). 13. Saudi Arabia, Climate Action Tracker. http://climateactiontracker.org/ countries/saudiarabia.html (accessed Oct. 26, 2016). 14. United Nations Treaty Collection. https://treaties.un.org/ (accessed Oct. 26, 2016). 15. Saudi Vision 2030. http://vision2030.gov.sa/en (accessed Oct. 26, 2016). 16. Investing for the Long-Term, Saudi Vision 2030. http://vision2030.gov.sa/en/ node/6 (accessed Oct. 26, 2016). 17. Saudi Arabia Scales Back Renewable Energy Goal to Favor Gas, Bloomberg. http://www.bloomberg.com/news/articles/2016-06-07/saudi-arabia-scalesback-renewable-energy-target-to-favor-gas (accessed Oct. 29, 2016). 18. CAIT Climate Data Explorer, World Resources Institute. http://cait.wri.org/ indc/#/ (accessed Dec. 6, 2016). 19. Energy, Open Development Cambodia. https:// opendevelopmentcambodia.net/topics/energy#current-status (accessed Oct. 29, 2016). 20. Clean Development Mechanism (CDM). http://unfccc.int/kyoto_protocol/ mechanisms/clean_development_mechanism/items/2718.php (accessed Oct. 26, 2016). 21. Background, The Joint Crediting Mechanism. http://gec.jp/jcm/about/ index.html (accessed Oct. 29, 2016). 22. What Is the Clean Development Mechanism (CDM)?, The Guardian. https://www.theguardian.com/environment/2011/jul/26/clean-developmentmechanism (accessed Oct. 29, 2016). 23. Rural Electrification by Renewable Energy in Cambodia, Energy Development Department. https://ec.europa.eu/energy/ intelligent/projects/sites/iee-projects/files/projects/documents/ cap_redeo_rural_electrification_by_re_in_cambodia.pdf (accessed Oct. 29, 2016).

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Global Implementation of Renewable Energy - American Chemical

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