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I N T E R N A T I O N A L


Into the Future with New Energy

Rio 1992, Johannesburg 2002, Bonn 2004: three stages along the road towards a global alliance for climate protection and sustainable development. The possibilities of renewable energy will be at the centre of attention at the "renewables 2004" conference in Bonn in early June of this year.

By Joachim Wille

Rio is where it all started. A ray of hope in history. Shortly after the end of the East-West conflict, in 1992, the world’s representatives gathered beneath the famous Sugarloaf Mountain in the Brazilian metropolis to write a new global agenda. The fate of the planet was to be determined not by the arms races, the nuclear threat, or competition between political and economic systems, but rather by ideas for solving its two most urgent problems: the environment and development. The "UN Earth Summit on Environment and Development" in Rio set standards. Stabilize the global climate, end underdevelopment and poverty, stop the decline in biodiversity, establish safe water supplies, stop deforestation and desert formation – these were the objectives that were agreed. And much more besides.

Although the euphoria of Rio has faded somewhat in the meantime, Germany continues to play a pioneering role in environmental politics, despite difficult economic times. One milestone will be the international conference on renewable energy which the Federal Government will stage between June 1st and 4th in Bonn. Its name: "renewables 2004." "This conference can send out a signal to the world," says the internationally renowned German environmental researcher Ernst-Ulrich von Weizsäcker, founderpresident of the Wuppertal Institute for Climate, Energy and the Environment and currently chairman of the Bundestag’s environmental committee. He believes there is a chance that Germany’s good experience with the introduction of climatefriendly energy will animate other countries to do the same. "This is a field in which Germany is a leader," says von Weizsäcker.

Politically backed market incentives, for instance, have turned wind power into an important source of electricity within just a decade. It has already overtaken the traditional "green" form of energy, hydroelectric power. Solar energy is also booming, and more success stories with other renewable energy sources are in the offing.

Over 135,000 jobs have been created in the "gentle energy" sector. Its annual turnover totals about ten billion euros, creating a new, decentralized source of income especially in rural regions. This benefits climate protection, because 53 million tonnes of emissions of the greenhouse gas carbon dioxide are already avoided today every year. The air is becoming cleaner, because the renewables produce next to no pollutant emissions. Germany is on track to reach the country’s emissions-reduction target specified in the Kyoto Climate Protection Protocol, which is an obligation under international law. The target figure for 2010 is a 21% reduction in six greenhouse gases, including CO2, CFCs and methane. A reduction of 19% had already been achieved by 2003. Another reason why the further upswing in alternative energy sources is important is because the phasing-out of the practically CO2-free (but dangerous) nuclear power begun by the Red-Green Federal Government must not be allowed to lead to higher greenhouse-gas emissions. The aim is that the "power gap" opened up by the successive closure of 19 nuclear reactors by about 2020 will be filled by improvements in power-station efficiency and with "green" electricity from renewables. However, the development of alternative energy sources only makes sense if it progresses wordwide – e.g. because of the global nature of the greenhouse problem. The hope is, therefore, that the "renewables 2004" will launch a "global alliance." Federal Chancellor Gerhard Schröder personally convened the conference at the UN World Summit for Sustainable Development in Johannesburg in September 2002. At the time he could be certain of arousing a lot of interest, because the mega-conference in South Africa had failed to agree on concrete measures to expand renewable energy sources. Schröder’s announcement came across all the more as a positive signal because it is backed up by a financial commitment. He announced that Germany would spend an additional billion euros on two cooperation projects with developing countries: 500 million on making the use of energy more efficient, and another 500 million on modern renewables like wind and solar energy.

At the time, the Johannesburg "follow-up conference" had not been the great rallying point that people had hoped for ten years after "Rio." For example, the hopes of many countries that binding targets would be laid down for the energy sector were disappointed. The EU had demanded a 1.5 percentagepoint increase in the renewables’ share of total power generation to 15% worldwide by 2010; Brazil was even more ambitious and called for a ten percentage-point rise. However, the phrase used in the jointly adopted Johannesburg plan of action was only that renewable energy should increase "substantially." No time target was laid down.

The European Union was not prepared to accept this result. Within a few days it managed in Johannesburg to persuade many countries to join a vanguard group. This group promised to set up ambitious national and if possible regional targets for renewables which, in the longer term, could be developed into a global target. Over 80 states have signed up to the "Johannesburg Renewable Energy Coalition" (JREC) in the meantime, including all the EU states plus countries such as Brazil, South Africa, New Zealand and Morocco.

The German Minister for Economic Cooperation and Development, Heidemarie Wieczorek-Zeul, and the Federal Minister of the Environment, Jürgen Trittin, have great expectations of the "renewables 2004." Both are hoping that green energies will achieve a break-through and that a master plan can be drawn up for future energy policies. The Federal Government can build on its good experience with the internationally acclaimed 2001 World Water Conference, which created a global blueprint for a sustainable water supply, the second major topic that brings together the environment and the development of a global society.

Having access to energy is just as basic a prerequisite for fighting underdevelopment as access to a safe water supply. The United Nations aims to halve the number of people living in poverty by 2015. "Two billion people have no access to modern energy," says Wieczorek-Zeul. "Access to energy is crucial to reducing poverty." She agrees with Trittin that this can be only achieved with renewable energy. Not only would it be virtually impossible for many states to finance an energy system for these two billion people based on coal and oil; it would also deal a mortal blow to the world climate. "We must ensure that the climate does not heat up by more than two degrees Celsius," warns Trittin. "Otherwise the ecosystems will no longer be able to adjust." Access to sustainably generated energy is "active climate policy and energy policy; at the same time it is also peace policy," says Trittin. For example, solar power plants that simultaneously desalinate water could prevent regional armed conflicts over the limited supplies of drinking water around the earth’s sunbelt.

The world faces not only the huge task of converting energy systems in the industrialized countries, but also the need to draw up a strategy for the developing countries. For this reason, the "renewables 2004" will certainly not be a purely academic energy conference. The initiators have issued three principal objectives: the conference should

· draw up a joint "political declaration" defining the growing role of renewables in a sustainable, more efficient energy system, as well as the subsequent steps on an international level.

· adopt a concrete international plan of action in which countries, or groups of countries, and other participants – business, for instance – commit themselves to expanding renewables with firm targets, deadlines and a system for monitoring implementation.

· make recommendations on "good political strategies" for promoting alternative energy sources, also based on the experience of various vanguard countries.

Another important topic in Bonn will, of course, be how the hoped-for boom in renewable energy can be financed. For it is a peculiarity of energy gained from wind and water, biomass and the sun that, although the "raw material" is available practically free of charge and in unlimited amounts, the capital costs for its use are (at least at present) very high. There are some ideas on how to solve this problem, and Germany’s experience in particular can be helpful here. It was not state subsidies that led to the unparalleled expansion of renewables; the higher electricity-generation costs were financed by distributing them across all power consumers. This works as follows: the "windmill operators" are guaranteed an increased price of just under nine cents for every kilowatt-hour they feed into the public electricity network.

This price is paid by the utilities and distributed among all their electricity customers. This has made the operation of the wind-powered plants profitable, and the banks have been willing to grant loans to build the plants on the strength of the statutory guarantee to purchase the power. In the meantime, the Red-Green Federal Government has extended this principle of distributive financing. Since the adoption of the "Renewable Energy Law" (Erneuerbare Energien-Gesetz, EEG) in 2000, the principle has also applied to the other forms of green energy. The highest price of all is paid for electricity from the still very expensive solar cells: up to 50 cents per kilowatt-hour. The government gave additional support to the market introduction of photovoltaics by offering interest-free or lowinterest loans in its so-called "100,000 Roofs Program." Solar cells with a maximum output of 400 megawatts had been installed in Germany by the end of 2003. Here, too, Germany is the pioneer, together with Japan. Despite fears to the contrary, the distributive financing principle has had little effect on the price paid by the individual power consumer.

The Bundestag is currently considering an amendment of the EEG that would ensure the continuing growth of renewables. It will benefit additional green energy sources, such as offshore wind power, large hydroelectric power plants (if they are developed and designed in a more nature-friendly way), and large plants that tap the earth’s heat (geothermal energy). Preparations for the "renewables 2004" have meanwhile moved into top gear. Several preparatory regional conferences have already been held, and they have added to the momentum. At the first of these meetings, held in Brazil last October, the participants set themselves an ambitious target: that modern renewables should cover ten percent of Latin America’s total energy needs by as early as 2010. A further conference took place in Asia, and another in Africa which focused on making the use of biomass more efficient. But there is no doubt that attention will focus mainly on the Europeans. At the European preparatory conference, which was held in Berlin in January, the EU demanded a signal showing the way ahead – and backed it up by considerably raising its own targets. By 2020, they recommend, wind and other renewable energy sources’ share of of total energy consumption should be increased to 20%. Up to now, the EU has been aiming at doubling renewables’ share – to about 12.5% – by 2010. There is no target for 2020 yet.
By the way, renewable energy will not only be talked about in Bonn. When the participants travel to and from the conference venues, they will do so not in normal cars and buses, but in an ecologically correct manner – for example, with solarmobiles, electric cars using a solar filling station, or fuel-cell-driven buses. The fleet of vehicles serving the "renewables 2004" is to be powered exclusively by renewable energy. "We want to show that renewable energy can also be used in the transport sector," says Environment Minister Trittin. "We want people to experience climate-friendly transport for themselves."

Gerhard Schröder, Federal Chancellor

"In the future, the trademarks of enduringly successful market economies worldwide will be resource and energy efficiency. Any country that does not lay the foundations for these goals today will fall back in international competition. With the eco-tax, the massive promotion of combined heat and power generation, the fuel cell, and the agreements on climate protection, we have initiated a development with which we can secure long-term energy efficiency."

Courtesy: Embassy of Germany, Kathmandu


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