Showing posts from category energy.
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Beyond Supply Risks: The Conflict Potential of Natural Resources
›While the public debate about resource conflicts focuses on the risk of supply disruptions for developed countries, the potentially more risky types of resource conflict are usually ignored. As part of a two-year research project on behalf of the German Federal Environment Agency, adelphi and the Wuppertal Institute for Climate, Energy, and Environment have analyzed the risks of international conflict linked to natural resources in a series of reports titled Beyond Supply Risks – The Conflict Potential of Natural Resources.
Resource extraction, transportation, and processing can create considerable crises and increase the risk of conflicts in producing and transit countries. This phenomenon – widely referred to as the “resource curse” – impacts consuming countries only if it leads to shortages and higher prices. However, in the producing and transit countries it can have much wider destabilizing effects – from increasing corruption to large-scale violent conflict. In addition, the extraction, processing, and transportation of resources often create serious environmental risks. Overexploitation, pollution, and the degradation of ecosystems often directly affect the livelihoods of local communities, which can increase the potential for conflict.
The eight reports that comprise Beyond Supply Risks explore plausible scenarios over the next two decades, focusing on four case studies: copper and cobalt in the Democratic Republic of Congo; the Nabucco natural gas pipeline project across Southern Europe and Turkey; lithium in Bolivia; and rare earth minerals in China.
Lithium in Bolivia
Bolivia possesses the world’s largest known lithium deposits, a potentially important resource for the development of electric vehicles. While the development of Bolivia’s lithium reserves could provide major economic benefits for one of the poorest countries in Latin America, our analysis identifies two main potential risks of conflict.
First, the environmental consequences of developing industrial-scale lithium production might have negative effects on the livelihoods of the local population. The local population in the lithium-rich department of Potosí has shown that it is capable of organizing itself effectively in defense of its interests, and past resource conflicts have turned violent, making a conflict-sensitive approach all the more important.
Second, the Bolivian economy is largely dependent on natural resources, and consequently is susceptible to price shocks. At present, this risk is primarily associated with natural gas. But lithium production, if developed, might be subject to the same dynamics, which could potentially destabilize the political system.
For consuming countries, these conflicts threaten supplies of lithium only if local protests or broader destabilization were produce bottlenecks in the supply chain.
Rare Earths and China
Like lithium, rare earths are likewise essential for some new technologies. China’s well publicized monopoly on 97 percent of the global production spurred a heated debate on the security of supply of strategic minerals. While our case study identifies supply risks for consuming countries, it also outlines some of the conflict risks China might face internally.
First, local populations could protest against the severe ecological impact of rare earth mining and production. In addition, conflicts might arise if those who profit from economic development (entrepreneurs or regional power-holders) undermine the traditional centralized party structures and expand their own influence.
International conflicts over access to Chinese rare earth resources, while they dominate the headlines, do not appear to be the dominant risk. Instead, internal political tensions could result in a weakened China that is not able to exploit its monopoly position for foreign policy gains. Or the government could enter into multilateral agreements and thus avoid a confrontational approach towards consumer nations.
Ultimately, the actual rate of diffusion of environmental technologies and the development of new technologies remain the key factors in determining whether relative shortages in global supply of rare earths will in fact occur. If industrialized nations and emerging economies commit to the same technologies to attain climate policy goals, international resource governance and coordinated promotion of (environmental) technology will also play a role in preventing conflict and crisis over rare earths.
The Way Forward
The series concludes with five recommendations to mitigate the risks of future resource conflicts:- Introduce systematic policy impact assessments to understand how policy goals and strategies, especially in regard to climate and environmental policy, interact with resource conflict risks.
- Increase the transparency of raw material markets and value creation chains to prevent extreme fluctuations in prices and improve information on markets, origins, and individual players.
- Improve the coherence of raw material policy by linking raw material policies with security, environmental, and development policies.
- Demand and promote corporate social responsibility along the whole value chain.
- Increase environmental and social sustainability as a means of strengthening crisis and conflict prevention by systematically taking into account social and conflict-related aspects in the resource sector.
The individual reports from the project can be downloaded here:- Conflict Risks (GERMAN only)
- Supply and demand (GERMAN only)
- Case Study: Nabucco Pipeline (GERMAN only)
- Case Study: Congo
- Case Study: Bolivia
- Case Study: China
- Conflict Resolution Strategies (GERMAN only)
- Summary and Recommendations
Sources: Government Accounting Office.
Photo Credit: “Potosí: miners in darkness,” courtesy of flickr user Olmovich. -
Backdraft: Minimizing Conflict in Climate Change Responses
›“What are the conflicts or risks associated with response to climate change?” asked ECSP Director Geoff Dabelko at the Wilson Center on July 18. “How we respond to climate change may or may not contribute to conflict,” he said, but “at the end of the day, we need to do no harm.”
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Lakis Polycarpou, Columbia Earth Institute
The Year of Drought and Flood
›August 1, 2011 // By Wilson Center StaffThe original version of this article, by Lakis Polycarpou, appeared on the Columbia Earth Institute’s State of the Planet blog.
On the horn of Africa, ten million people are now at risk as the region suffers the worst drought in half a century. In China, the Yangtze – the world’s third largest river – is drying up, parching farmers and threatening 40 percent of the nation’s hydropower capacity. In the U.S. drought now spreads across 14 states creating conditions that could rival the dust bowl; in Texas, the cows are so thirsty now that when they finally get water, they drink themselves to death.
And yet this apocalyptic dryness comes even as torrential springtime flooding across much of the United States flows into summer; even as half a million people are evacuated as water rises in the same drought-ridden parts of China.
It seems that this year the world is experiencing a crisis of both too little water and too much. And while these crises often occur simultaneously in different regions, they also happen in the same places as short, fierce bursts of rain punctuate long dry spells.
The Climate Connection
Most climate scientists agree that one of the likely effects of climate will be an acceleration of the global water cycle, resulting in faster evaporation and more precipitation overall. Last year, the Proceedings from the National Academy of Sciences published a study which suggested that such changes may already be underway: According to the paper, annual fresh water flowing from rivers into oceans had increased by 18 percent from 1994 to 2006. It’s not hard to see how increases in precipitation could lead to greater flood risk.
At the same time, many studies make the case that much of the world will be dramatically drier in a climate-altered future, including the Mediterranean basin, much of Southwest and Southeast Asia, Latin America, the western two-thirds of the United States among other places.
Continue reading on State of the Planet.
Sources: Associated Press, The New York Times, Proceedings from the National Academy of Sciences, Reuters, Science Magazine, University Corporation for Atmospheric Research.
Photo Credit: “Drought in SW China,” courtesy of flickr user Bert van Dijk. -
Second Generation Biofuels and Revitalizing African Agriculture
›In “A New Hope for Africa,” published in last month’s issue of Nature, authors Lee R. Lynd and Jeremy Woods assert that the international development community should “cut with the beneficial edge of bioenergy’s double-edged sword” to enhance food security in Africa. According to Lynd and Woods, Africa’s severe food insecurity is a “legacy of three decades of neglect for agricultural development.” Left out of the Green Revolution in the 1960s, the region was flooded with cheap food imports from developed nations while local agricultural sectors remained underdeveloped. With thoughtful management, bioenergy production on marginal lands unfit for edible crops may yield several food security benefits, such as increased employment, improved agricultural infrastructure, energy democratization, land regeneration, and reduced conflict, write the authors.
The technological advancements of second-generation biofuels may ease the zero-sum tension between food production and bioenergy in the future, writes Duncan Graham-Rowe in his article “Beyond Food Versus Fuel,” also appearing last month in Nature. Graham-Rowe notes that current first-generation biofuel technologies, such as corn and sugar cane, contribute to rising food prices, require intensive water and nitrogen inputs, and divert land from food production by way of profitability and physical space. There is some division between second-generation biofuel proponents: some advocate utilizing inedible parts of plants already produced, while others consider fast-growing, dedicated energy crops (possibly grown on polluted soil otherwise unfit for human use) a more viable solution – either has the potential to reduce demand for arable land, says Graham-Rowe. “Advanced generations of biofuels are on their way,” he writes, it is just a matter of time before their kinks are worked out “through technology, careful land management, and considered use of resources.” -
Water, Energy, and the U.S. Department of Defense
›Energy for the War Fighter is the U.S. Department of Defense’s first operational energy strategy, mandated by congress last year. Energy security for the department means having assured access to reliable supplies of energy and the ability to protect and deliver energy to meet operational (non-facilities-related) needs. The report is divided into three main parts, which address reducing current demand for energy in military operations; expanding and securing the supply of energy for military operations; and building consideration of energy security into future force decisions. The strategy is designed to both support current military operations and to focus future energy investments accordingly. Previous federal energy mandates exempted the military’s field operations, which account for three-quarters of the department’s energy consumption. The department as a whole makes up 80 percent of the federal government’s annual energy use.
The Water Energy Nexus: Adding Water to the Energy Agenda, by Diana Glassman, Michele Wucker, Tanushree Isaacman, and Corinne Champilouis of the World Policy Institute, attempts to show the correlation between energy and water to motivate policy makers to consider the implications of their dual consumption. “Nations around the world are evaluating their energy options and developing policies that apply appropriate financial carrots and sticks to various technologies to encourage sustainable energy production, including cost, carbon, and security considerations,” write the authors. “Water needs to be a part of this debate, particularly how communities will manage the trade-offs between water and energy at the local, national, and cross-border levels.” The study provides the context needed to evaluate key tradeoffs between water and energy by providing “the most credible available data about water consumption per unit of energy produced across a wide spectrum of traditional energy technologies,” they write.
Sources: U.S. Department of Defense. -
Keith Schneider, Circle of Blue
Double Choke Point: Demand for Energy Tests Water Supply and Economic Stability in China and the U.S.
›The original version of this article, by Keith Schneider, appeared on Circle of Blue.
The coal mines of Inner Mongolia, China, and the oil and gas fields of the northern Great Plains in the United States are separated by 11,200 kilometers (7,000 miles) of ocean and 5,600 kilometers (3,500 miles) of land.
But, in form and function, the two fossil fuel development zones – the newest and largest in both nations – are illustrations of the escalating clash between energy demand and freshwater supplies that confront the stability of the world’s two biggest economies. How each nation responds will profoundly influence energy prices, food production, and economic security not only in their domestic markets, but also across the globe.
Both energy zones require enormous quantities of water – to mine, process, and use coal; to drill, fracture, and release oil and natural gas from deep layers of shale. Both zones also occur in some of the driest regions in China and the United States. And both zones reflect national priorities on fossil fuel production that are causing prodigious damage to the environment and putting enormous upward pressure on energy prices and inflation in China and the United States, say economists and scholars.
“To what degree is China taking into account the rising cost of energy as a factor in rising overall prices in their economy?” David Fridley said in an interview with Circle of Blue. Fridley is a staff scientist in the China Energy Group at Lawrence Berkeley National Laboratory in California. “What level of aggregate energy cost increases can China sustain before they tip over?”
“That’s where China’s next decade is heading – accommodating rising energy costs,” he added. “We’re already there in the United States. In 13 months, we’ll be fully in recession in this country; 9 percent of our GDP is energy costs. That’s higher than it’s been. When energy costs reach eight to nine percent of GDP, as they have in 2011, the economy is pushed into recession within a year.”
Continue reading on Circle of Blue.
Photo Credit: Used with permission, courtesy of J. Carl Ganter/Circle of Blue. In Ningxia Province, one of China’s largest coal producers, supplies of water to farmers have been cut 30 percent since 2008. -
Consumption and Global Growth: How Much Does Population Contribute to Carbon Emissions?
›July 6, 2011 // By Schuyler NullWhen discussing long-term population trends on this blog, we’ve mainly focused on demography’s interaction with social and economic development, the environment, conflict, and general state stability. In the context of climate change, population also plays a major role, but as Brian O’Neill of the National Center for Atmospheric Research put it at last year’s Society of Environmental Journalists conference, population is neither a silver bullet nor a red herring in the climate problem. Though it plays a major role, population is not the largest driver of global greenhouse gases emissions – consumption is.
In Prosperity Without Growth, first published by the UK government’s Sustainable Development Commission and later by EarthScan as a book, economist Tim Jackson writes that it is “delusional” to rely on capitalism to transition to a “sustainable economy.” Because a capitalist economy is so reliant on consumption and constant growth, he concludes that it is not possible for it to limit greenhouse gas emissions to only 450 parts per million by 2050.
It’s worth noting that the UN has updated its population projections since Jackson’s original article. The medium variant projection for average annual population growth between now and 2050 is now about 0.75 percent (up from 0.70). The high variant projection bumps that growth rate up to 1.08 percent and the low down to 0.40 percent.
Either way, though population may play a major role in the development of certain regions, it plays a much smaller role in global CO2 emissions. In a fairly exhaustive post, Andrew Pendleton from Political Climate breaks down the math of Jackson’s most interesting conclusions and questions, including the role of population. He writes that the larger question is what will happen with consumption levels and technological advances:The argument goes like this. Growth (or decline) in emissions depend by definition on the product of three things: population growth (numbers of people), growth in income per person ($/person), and on the carbon intensity of economic activity (kgCO2/$). This last measure depends crucially on technology, and shows how far growth has been “decoupled” from carbon emissions. If population growth and economic growth are both positive, then carbon intensity must shrink at a faster rate than the other two if we are to slash emissions sufficiently.
Pendleton also brings up the prickly question of global inequity and how that impacts Jackson’s long-term assumptions:
Jackson calculates that to reach the 450 ppm stabilization target, carbon emissions would have to fall from today’s levels at an average rate of 4.9 percent a year every year to 2050. So overall, carbon intensity has to fall enough to get emissions down by that amount and offset population and income growth. Between now and 2050, population is expected to grow at an average of 0.7 percent and Jackson first considers an extrapolation of the rate of global economic growth since 1990 – 1.4 percent a year – into the future. Thus, to reach the target, carbon intensity will have to fall at an average rate of 4.9 + 0.7 + 1.4 = 7.0 percent a year every year between now and 2050. This is about 10 times the historic rate since 1990.
Pause at this stage, and take note that if there were no further economic growth, carbon intensity would still have to fall at a rate of 4.9 + 0.7 = 5.6 percent, or about eight times the rate over the last 20 years. To his credit, Jackson acknowledges this – as he puts it, decoupling is vital, with or without growth. Decoupling will require both huge innovation and investment in energy efficiency and low-carbon energy technologies. One question, to which we’ll return later, is whether and how you can get this if there is no economic growth.But Jackson doesn’t stop there. He goes on to point out that taking historical economic growth as a basis for the future means you accept a very unequal world. If we are serious about fairness, and poor countries catching up with rich countries, then the challenge is much, much bigger. In a scenario where all countries enjoy an income comparable with the European Union average by 2050 (taking into account 2.0 percent annual growth in that average between now and 2050 as well), then the numbers for the required rate of decoupling look like this: 4.9 percent a year cut in carbon emissions + 0.7 percent a year to offset population growth + 5.6 percent a year to offset economic growth = 11.2 percent per year, or about 15 times the historical rate.
To further complicate how population figures into all this, Brian O’Neill’s Proceedings of the National Academy of Sciences article, “Global Demographic Trends and Future Carbon Emissions,” shows that urbanization and aging trends will have differential – and potentially offsetting – impacts on carbon emissions. Aging, particularly in industrialized countries, will reduce carbon emissions by up to 20 percent in the long term. On the other hand, urbanization, particularly in developing countries, could increase emissions by 25 percent.
What do you think? Is infinite growth possible? If so, how do you reconcile that with its effects on “spaceship Earth?” Do you rely on technology to improve efficiency? Do you call it a loss and hope the benefits of growth are worth it?
Sources: Political Climate, Proceedings of the National Academy of Sciences, Prosperity Without Growth (Jackson). -
Jacob Park, Our World 2.0
Will Expanding “Human Security” Really Improve People’s Lives?
›June 16, 2011 // By Wilson Center StaffThe original version of this article, by Jacob Park, appeared on the UN University’s Our World 2.0.
To those working in the financial markets, the term “securitization” refers to the financial practice of pooling various types of debt, such as residential mortgages, and repackaging them as products like bonds, etc. And you can bet that most of the 2.5 million pages one gets if one searches for this term on the web probably relate to complex financial markets.
Yet the use of the term “security” is not limited to the financial markets and it appears that the United Nations system and the international community seem to be caught up in its own securitization trend. At the April 2011 65th General Assembly of the United Nations, the General Assembly held an informal debate on the human security concept and why it is important to the UN and the international community.
At this meeting, UN Deputy Secretary General Asha-Rose Migiro argued that “in a world where threats could be as sudden and unpredictable as a tsunami or as protracted and unyielding as an oppressive dictatorship, an expanded paradigm of security was needed to encompass the broad range of conditions threatening people’s survival, livelihoods, and dignity.”
In light of the recent triple disaster in Japan and this year’s uprisings in the Arab World, Migiro stated that from “natural disasters and entrenched poverty to outbreaks of conflict and the spread of disease, the dramatic events of recent weeks had underscored the vulnerability of developed and developing countries alike.”
Her views reflect a trend since the 2005 World Summit, where leaders agreed that human security concerned both “freedom from fear” and “freedom from want,” and the definition of human security expanded beyond the traditional military-political paradigm of security to be inclusive of social, energy, and environmental issues.
In fact, a wide range of UN institutions have been active promoting their respective security work; the United Nations Environment Programme (UNEP) in relation to environmental security; the Food and Agricultural Organization in relation to food security; and the United Nations Development Programme/UN Trust Fund for Human Security, among others. (Similarly, the International Energy Agency, founded in response to the 1973/74 oil shocks, today plays an increasingly important role in advising its member countries on energy security.)
Real Solutions or Good Metaphors?
It’s hard to disagree with the expanded definition of security to include a wide range of social, environmental, and human development issues. But toward what ends? What will this diverse focus ultimately lead to?
Perhaps I am being overly pessimistic and need to be more patient for these various security issues to develop as possible policy solutions. However, experience with the term “sustainable development” offers a good illustration of what happens when vague concepts rather than real solutions starts the drive the institutional machinery of global governance.
It seems like at times we’re replacing solutions with metaphors or frames to discuss social, environmental, and human development global concerns. The emerging security narrative feels as if we’re waiting for some military quick fixes; as if there is some special forces unit that can be called upon to get rid of the climate-induced migration problem in the same manner as a special U.S. Navy SEAL team was dispatched to deal with Osama Bin Laden.
Unfortunately, there is a real possibility that these UN programs and initiatives (however worthwhile they may be) on energy security, food security, environmental security, climate security, and human security will attempt to deal with all of these issues at the same time and at the end, risk dealing with none. One thing is certain: more international conferences will be planned on security issues even if it is unclear what real benefits this will provide to the most vulnerable members of the international community, whom this securitization trend is designed to help.
What do you think? Will the securitization of all threats to human life make a difference to “at risk” communities across the globe? Or are we just getting caught up in language and not solutions?
Thoughts? Be sure to follow-up on Our World 2.0 as well.
Jacob Park is an associate professor of business strategy and sustainability at Green Mountain College in Vermont specializing in global environment and business strategy, corporate social responsibility, community-based entrepreneurship, and social innovation.
Photo Credit: “UN Peacekeepers Rescue School Collapse Victims,” courtesy of flickr user United Nations Photo.