Caribbean states urged to invest in biofuels to cut high oil import bills
With the right reforms and investments, Guyana, Jamaica and Barbados, could substitute at least ten per cent of their current gasoline consumption with domestic ethanol fuel, the President of the Inter-American Development Bank (IDB), Luis Moreno has said.
Moreno spoke at the first ever high-level Conference of the Caribbean that united heads of state from fifteen Caribbean nations and the U.S. who gathered in Washington to examine the growth and development of the Caribbean Community (Caricom) from a regional perspective. The three day summit was hosted by the World Bank, and co-hosted by the Inter-American Development Bank (IDB) and the Organization of American States (OAS).
Noting that with the exception of Trinidad and Tobago (an oil and gas exporting country) energy has become a critical issue for the Caribbean with the cost of their dependency soaring, he cited Jamaica's energy cost as growing by 41% in 2005 and 30% in 2006. It is now projected to pass US$2 billion this year. This is almost as much as the total amount of the country's exports.
Quoting from a study the IDB financed in collaboration with Caricom (Caribbean Community) Moreno said that if Guyana, Jamaica and Barbados adopt the latest technology these three countries could also co-generate a total of 100 megawatts of electricity by burning sugarcane bagasse. The study, on expanding biofuel opportunities in the three Caribbean countries and which was conducted earlier this year, showed the potential that exists. Recently the IDB also published 'A Blueprint for Green Energy in the Americas', a major overview of the potential for biofuels in the Western Hemisphere:
biofuels :: energy :: sustainability :: ethanol :: biodiesel :: biomass :: bioenergy :: IDB :: Caricom :: Caribbean :: Jamaica :: Barbados :: Guyana ::
Moreno noted that the IDB has an active programme which grants technical assistance to help member governments determine the feasibility of renewable energy in the production of ethanol, biodiesel, biomass and other renewables.
In addition to a US$3 billion investment planned for private sector biofuel projects (here), Moreno announced that the IDB's private sector department was also preparing to launch a green energy programme that would provide at least US$300 million in loans for projects in energy efficiency and renewable energy in small developing countries.
He said the issue of energy was one of three priority areas that the IDB considered challenges for the Caribbean. The other two he described as competitiveness and "initiative opportunities for the majority."
More information:
Stabroek News: IDB president urges Caricom to look inwards for renewable energy - June 21, 2007.
Inter-American Development Bank, Environment Division (Sustainable Development Department): Issue Paper on Biofuels in Latin America and the Caribbean [*.pdf].
Article continues
Moreno spoke at the first ever high-level Conference of the Caribbean that united heads of state from fifteen Caribbean nations and the U.S. who gathered in Washington to examine the growth and development of the Caribbean Community (Caricom) from a regional perspective. The three day summit was hosted by the World Bank, and co-hosted by the Inter-American Development Bank (IDB) and the Organization of American States (OAS).
Noting that with the exception of Trinidad and Tobago (an oil and gas exporting country) energy has become a critical issue for the Caribbean with the cost of their dependency soaring, he cited Jamaica's energy cost as growing by 41% in 2005 and 30% in 2006. It is now projected to pass US$2 billion this year. This is almost as much as the total amount of the country's exports.
The good news is that the Caribbean had significant potential in biofuels and wind power. Now more than ever, the Caribbean needs a bold energy strategy that combines energy conservation and efficiency with investments in renewable resources. - Luis Moreno, president IDB president Inter-American Development Bank.Funds lost to expensive oil cannot be invested in much needed social and economic development programs. But biofuels can be produced efficiently from an abundance of tropical energy crops that thrive in the Caribbean, and replace fossil fuels in a competitive way. The region's technical exportable bioenergy potential over the long term (2050) is projected to be amongst the highest per capita (earlier post).
Quoting from a study the IDB financed in collaboration with Caricom (Caribbean Community) Moreno said that if Guyana, Jamaica and Barbados adopt the latest technology these three countries could also co-generate a total of 100 megawatts of electricity by burning sugarcane bagasse. The study, on expanding biofuel opportunities in the three Caribbean countries and which was conducted earlier this year, showed the potential that exists. Recently the IDB also published 'A Blueprint for Green Energy in the Americas', a major overview of the potential for biofuels in the Western Hemisphere:
biofuels :: energy :: sustainability :: ethanol :: biodiesel :: biomass :: bioenergy :: IDB :: Caricom :: Caribbean :: Jamaica :: Barbados :: Guyana ::
Moreno noted that the IDB has an active programme which grants technical assistance to help member governments determine the feasibility of renewable energy in the production of ethanol, biodiesel, biomass and other renewables.
In addition to a US$3 billion investment planned for private sector biofuel projects (here), Moreno announced that the IDB's private sector department was also preparing to launch a green energy programme that would provide at least US$300 million in loans for projects in energy efficiency and renewable energy in small developing countries.
He said the issue of energy was one of three priority areas that the IDB considered challenges for the Caribbean. The other two he described as competitiveness and "initiative opportunities for the majority."
More information:
Stabroek News: IDB president urges Caricom to look inwards for renewable energy - June 21, 2007.
Inter-American Development Bank, Environment Division (Sustainable Development Department): Issue Paper on Biofuels in Latin America and the Caribbean [*.pdf].
Article continues
Thursday, June 21, 2007
Latest Doha talks collapse again, agriculture remains stumbling block
Trade and agriculture ministers from the 'G4' - the EU and the US, representing rich nations, and India and Brazil, for the developing world - had been meeting in Germany to find a new breakthrough but talks collapsed and the parties blamed each other for the failure. Brazil and India said the EU and US did not offer enough concessions on agricultural subsidies and trade barriers. The EU and the US in turn blamed their counterparts for not going far enough on opening markets for manufactured goods. The wealthy countries try to secure export opportunities for their own corporations. However, the crux of the matter is that trade barriers and subsidies remain much higher for agriculture in the EU/US than for manufactured goods in the Global South. Also consider that 70 percent of people in developing countries depend directly or indirectly on agriculture, so they are the losers under the current trade regime.
- The EU's latest offer was to eliminate export subsidies by 2013 and cut trade distorting domestic farm subsidies by more 70%.
- EU officials told journalists the sort of tariff cuts being offered by Brazil in return would not have led to any additional exports from companies from the developed world.
- the US offered to cap its overall spending on trade-distorting domestic support at $17 billion. But as leaders of the G20, the coalition of developing countries which also includes China and Argentina, India and Brazil are pushing for an annual US spending limit of no more than $15 billion.
The Doha round is seen by many as an opportunity for the developing world to gain access to agricultural markets in the West, while it would protect their markets from being flooded by heavily subsidized farm products. As such, a deal that cuts farm subsidies and trade barriers in the EU and the US would be important for the development of a global bioenergy industry in which the Global South would have clear competitive advantages that should be consilodated by classifying biofuels in a new way (an analysis of this complex matter).Several people, including Nobel-prize winning economist Joseph Stiglitz (earlier post), Ted Turner (previous post) and C. Boyden Gray, ambassador to the EU (more), have even suggested that the global biofuel revolution may hold the key to revive the Doha talks. The latter said that continuing demand for corn for the production of ethanol could make it easier for the US to cut the enormous amount of subsidies US farmers receive. However, the idea met heavy resistance from Big Corn:
energy :: sustainability :: bioenergy :: biofuels :: trade :: tariffs :: subsidies :: US :: EU :: G4 :: G20 :: Doha :: WTO ::
In a recent essay, Stiglitz illustrated the Doha deadlock with the example of Brazilian ethanol, which can be produced far more efficiently than biofuels in the North:
Sitglitz added that "Developing countries cannot, and should not, open up their markets fully to the US' agricultural goods unless US subsidies are fully eliminated. To compete on a level playing field would force these countries to subsidize their farmers, diverting scarce funds that are needed for education, health, and infrastructure".
Now in Potsdam, Washington has demanded that any deal that significantly cuts US farm subsidies must open new export markets around the world in agriculture, manufacturing and services. But Brazil and India said Washington was not prepared to go far enough to warrant additional concessions on their part in manufacturing goods or in lowering barriers to imports of U.S. farm goods.
"If the round is to move forward, there will have to be a substantial attitude change," said India's Commerce and Industry Minister Kamal Nath.
In a letter to Schwab and Mandelson on Wednesday, leading U.S. and European manufacturers warned they could not support an agreement that did little to open developing countries to additional exports. This dashed hopes of a breakthrough.
Without an agreement between the four powers at this meeting in Potsdam, diplomats and trade officials had warned that it would be difficult for the full 150-member state WTO to strike a deal as hoped by the end of July.
Some non-governmental organisations, altermondialists and civil society groups think the collapse of Doha is not necessarily a bad thing. Such a crisis of the formal trading system would open a new era in which developing countries can push for a new model that benefits poor societies and the environment more than the current WTO regime does today.
More information:
World Trade Organisation: Statement from Director-General Lamy concerning Potsdam outcome - June 21, 2007.
BBC: Latest world trade talks collapse - June 21, 2007.
Reuters India: G4 talks collapse, throw trade round into doubt - June 21, 2007.
Bloomberg: WTO Talks Break Down; EU and U.S. Blame India, Brazil - June 21, 2007.
Biopact: Stiglitz explains reasons behind the demise of the Doha development round - August 15, 2006
Biopact: Discussion text: global biofuels trade and WTO's role - October 21, 2006.
Article continues
posted by Biopact team at 8:20 PM 10 comments links to this post