Bonn, Germany, 10 Nov 2017 – Leaders from a wide range of sectors came together on Friday at Energy Day at the UN Climate Change Conference in Bonn to announce a new set of initiatives to transition to renewable energy and to show that more ambitious clean energy development can quickly become a bigger part of national climate plans submitted under the Paris Climate Change Agreement.
“With the price of renewable and storage technologies tumbling, and greater understanding on how to set the policy table for a cleaner energy mix and more integrated energy planning, the question before decision makers is, why wait?” said Rachel Kyte, Special Representative of the UN Secretary-General and CEO, Sustainable Energy for All.
Success stories, action and new commitments shared during Energy Day at the COP23 UN Climate Change Conference from businesses, states, cities and forward-thinking countries continue to show ambition to ensure the clean energy transition is not only underway but is irreversible.
“Our pledge to leave no one behind is a critical component of the Paris Agreement. The energy transition that we can see is underway and must be a transition towards energy systems around the world that secure sustainable energy for all,” said Ms Kyte.
“This means placing energy efficiency first, adopting a laser like focus on ending energy poverty and using the renewable energy revolution to achieve universal access and a bending of the emissions curve. With each year, each COP, the health and economic impacts of carbon pollution are better documented and the science of what awaits us, if we continue on our current path, mounts,” she said.
Adnan Z. Amin, International Renewable Energy Agency (IRENA) Director-General said: “Two-thirds of global greenhouse gas emissions stem from energy production and use, which puts the energy sector front and centre of global efforts to combat climate change. Our analysis shows that renewables and energy efficiency can together provide over 90 per cent of the mitigation needed in the energy system by 2050 to achieve the ambitions of the Paris Agreement, while also boosting the economy, creating jobs and improving human health and well-being.”
“We have a large, untapped, and affordable renewable energy potential waiting to be developed. Revising the Nationally Determined Contributions (NDCs) gives countries an opportunity to take a fresh look at how to harvest this potential, not only for mitigation, but in light of the multiple socio-economic benefits of renewables, also for adaptation,” said Mr Amin.
Fatih Birol, International Energy Agency (IEA) Executive Director, said: “The transition of the energy sector in the next decades will be critical to meeting shared climate and sustainable development goals. Widespread action by governments and private sector alike has helped keep global energy-related emissions flat the last three years. Our analysis shows we can meet climate goals while achieving energy access and improving the environment.”
The central goal of the Paris Agreement is to keep the average global temperature rise well below 2 degrees Celsius and as close as possible to 1.5 degrees. About one degree of that rise has already happened, underlining the urgency to progress much further and faster with the global clean energy transformation.
Energy Day is organized by The Climate Group, IEA, IRENA and Sustainable Energy for All (SEforALL) as part of a series of thematic action days held under the auspices of the Marrakech Partnership.
Prime Minister Andrew Holness says the Government will embark on a programme aimed at transforming the collection and management of garbage before the end of the year.
Prime Minister Holness says work is far advanced in examining options for waste-to-energy solutions.
He says the process is being handled by an enterprise team.
Prime Minister Holness was speaking at the LASCO Releaf Environmental Awareness Programme (REAP) Awards Ceremony yesterday in Kingston.
REAP is geared towards helping children become environmentally conscious through fun competition.
The programme incorporates some 120 primary and preparatory schools this year.
Holness says for Jamaica to experience sustainable growth, the practice of protecting the environment for future generations must be embedded in the mindset of children.
He states that the LASCO REAP initiative will add to the national effort in managing waste disposal and protecting the environment.
JAMAICA HAS ratified the historic international climate change deal, dubbed the Paris Agreement, which was reached in France in 2015, following years of wrangling among countries over what its provisions should be.
This, as the world looks to combat the changing climate that threatens, through sea level rise, extreme weather events, increasing temperatures and associated impacts, to erode economies and jeopardise lives.
“The instrument was signed by the minister of foreign affairs (Kamina Johnson Smith) on the 30th of March and the document sent off to New York for deposit at the United Nations,” UnaMay Gordon, principal director of the Climate Change Division of the Ministry of Economic Growth and Job Creation, told The Gleaner Tuesday.
“It was deposited on the 10th of April. Therefore, for Jamaica, the agreement will enter into force on the 10th of May, 2017,” she added.
Jamaica’s ratification comes close to a year after its participation at the high-level signature ceremony in New York on Earth Day, April 22, 2016.
The agreement, meanwhile, aims to “strengthen the global response to the threat of climate change, in the context of sustainable development and efforts to eradicate poverty” through a number of actions.
Included among them is “holding the increase in the global average temperature to well below two degrees Celsius above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5 degrees Celsius above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change”.
The island joins other CARICOM members with the exception of Haiti and Trinidad and Tobago who have ratified the agreement.
In responding to the perceived delay in Jamaica’s ratification, Gordon said the island had a process that needed to be gone through.
“Once the instrument was signed (in New York last year), then we started that process. Jamaica, unlike some other countries, had a process of consultation with the stakeholders to ensure that people understood what we were doing,” she said.
“The document went to the AG (attorney general) for the opinion of the AG. We received the opinion of the AG in October 2016. In the opinion, the AG had given an undertaking that there were only some procedural matters and that Jamaica could proceed to ratify the agreement,” she added.
“But we thought as a division that we should do the consultations. So we had focus groups, individual sit-downs and so on with stakeholders from finance, forestry, energy, etc, to find out if they were in agreement with the AG’s opinion to go ahead, and all of them had no objection,” Gordon said further.
No objections were received up to February this year and a Cabinet submission made.
“Cabinet gave the approval to ratify,” Gordon said. “We are now a full party to the agreement and have to implement at the national level.”
However, Dennis Chung, the chief executive officer of the Private Sector Organisation of Jamaica (PSOJ), says if Government wants to divest its shares in JPS it might make sense, noting the valuation of the shares would be based on future prospects of the business.
Governor General Sir Patrick Allen, delivering the Throne Speech in Parliament on February 9, said the Government will this year begin the process of privatising its minority shareholding in JPS.
“The Government will take steps to ensure that there is broad retail and institutional participation and Jamaican owners in the divestment process,” he said, adding that an enterprise team will be appointed to lead it.
JPS is primarily owned by Marubeni of Japan and Korea East West Power Company, each of which holds 40 per cent interest.
Paulwell said the Government’s expressed plan to offload its shares in the power utility “doesn’t mean it’s going to happen as we have seen from last year’s Throne Speech”.
Notwithstanding that, “I am opposed to the divestment of the shares at this time because we would get the least possible value on those assets in JPS, largely because everybody is aware that 290 megawatt of JPSCo capacity will become scrap metal in a matter of time when the new 190MW plant is established.”
The 190MW plant to which he referred is the proposed gas-fired power station at Old Harbour Bay, St Catherine, on which construction is slated to start in early March.
“For me, the Government should participate in the new 190 (megawatt) plant which will preserve and enhance its value, and after that plant has been established, that’s the time you can think about selling the shares,” Paulwell told the Financial Gleaner.
“If you were to sell the shares now, we would end up not getting much because we owe JPSCo so much money now; so nothing will go to the government’s coffers, because any money we make from the sale will have to go and clear our debt with JPS,” he said.
He noted that the Government currently owes the JPS more than $2 billion in bills, including for street lighting.
“So if it were to sell the shares now it will be at a depressed value. The net effect would not mean anything coming into Government’s coffers,” said the energy spokesman.
What the Government needs to do is to participate fully in construction of the 190-megawatt plant, Paulwell said. “It will cost them about US$20 million in equity,” he said, noting that for that plant, the JPS has a 20-year power purchase agreement which guarantees that project a significant rate of return on the investment for 20 years.
“That is one of the safest investments you could make. Why would the Government not be a part of that? And at that time it could contemplate on how to dispose of its shares,” said Paulwell.
“And, in any event, if it’s going to do that, the Jamaican people must be the people to whom those shares are sold,” he said.
Chung indicated that in making the decision to divest its shares in JPS, the Government must know what is happening.
He said he did not see it as a big deal to divest the shares and make Jamaicans a part of the ownership.
Referring to Paulwell’s opposition to the sale at this time, Chung noted that valuation of the shares would be done based on what is expected in terms of business.
“If you know, for example, that you have a contract to sell twice what you sold this year, then you can build that knowledge into the valuation,” he said, adding that the valuation would also be based on future prospects.
He noted that shares are traded at a price-earnings ratio and sometimes can be valued at many times more than the book value of an entity.
“So it’s based on information that people have,” he said, adding that if investors believe they are going to make a killing “out of this thing, going forward, then you value the shares accordingly”.
WITH A changing climate that threatens to wash away entire communities and derail livelihoods, local civil society organisations and small businesses are being empowered to respond – with capital.
This is thanks to financing made available through the Pilot Programme for Climate Resilience (PPCR).
There exist two financing mechanisms, according to Dr Winsome Townsend, project manager for the Adaptation Programme and Financing Mechanism under the PPCR.
One is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica.
The SCCAF, according to project documents, is “to finance adaptation and disaster risk-reduction projects and cover associated programme management costs”.
“Grants from this trust fund will be accessed by community-based organisations, other civil-society groups and selected public-sector agencies, for clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction,” the documents revealed.
Last Monday, the first 18 beneficiary organisations were awarded sums to the tune of $84.9 million to undertake projects designed to enhance resilience at the community level.
“There was a call for proposals in October last year and out of that, about 80 proposals were received and about half that amount were shortlisted. They were further assessed and out of that, an initial 18 were approved,” said Townsend.
“Twelve were pending approval. Those 12 have now been approved. So out of that first call, approximately 30 have been approved,” she added.
Projects to be pursued include water harvesting and greenhouses, aquaponics systems and food processing, as well as various ecosystem restoration initiatives.
Townsend said another call will be issued later this month or early March.
The second mechanism is a line of credit, intended “to provide loan financing to support adaptation measures of farmers and other businesses in the agricultural sector, and small hoteliers and other businesses in the tourism sector”.
Five projects have been approved to the tune of some $25 million, Townsend said. However, the overall level of interest in the line of credit – administered by JN Small Business Loan – is not immediately clear.
“Because it has started soft, we don’t know yet. We can’t at this time make any determination as to the level of enthusiasm,” Townsend said.
Still, she is hopeful for its success, given what is at stake.
“It is not just the Government who needs to put in measures in terms of climate change adaptation, but everybody, including citizens. Of particular interest is the private sector because businesses are under threat from climate change, and so the private sector needs to respond to these threats,” she said.
“The micro, small and medium-size businesses are at greater risk because of their capacity to respond. They are not as resilient as the more established or bigger enterprises,” Townsend noted.
The push to get 30 per cent of Jamaica’s electricity from renewable sources by 2030 is not a pipe dream and will be achieved, Government Senator Matthew Samuda has insisted.
The senator said that energy generated currently from renewable sources is 10.5 per cent of net electricity generation.
Speaking last week in the State of the Nation Debate in the Senate, Samuda noted that energy minister Dr Andrew Wheatley, upon taking over the portfolio last year, increased the 2030 target in the national energy policy to 30 per cent from 20 per cent.
According to Samuda, the target “certainly complements the top line objective of 5 in 4”, referring to the Government’s objective of achieving a GDP growth of five per cent by the end of the 2020-2021 fiscal year.
“This (energy target) is not a pipe dream, nor is this lip service being paid to the nation’s energy supply. I am happy to state here today in this chamber that Jamaica will target a further 100 megawatt (MW) of renewable energy for the grid, with a new invitation for proposals to be made public in the very, very near future.”
Added Samuda: “This project will have a transformative effect on the sector, and indeed, the country. These projects will, no doubt, strengthen a pillar for competitiveness and development, which is cheap, reliable, and clean energy.”
Last year, an additional 80MW of generating capacity from renewable sources was connected to the national grid, Samuda noted.