THE Inter-American Development Bank (IDB) has launched ‘Rise Up’, a free multimedia tool for primary and secondary schools in Latin America and the Caribbean to empower students, parents and teachers to address climate change and improve their quality of life through creative, viable and long-term solutions.

“The solution to climate change is very complex. So we created an innovative knowledge tool in a multimedia format, to address part of the problem,” said Emma Näslund-Hadley, project co-ordinator and lead specialist in the Education Division of the IDB.

Rise Up encourages teachers and students to be part of the solution. Instead of teaching science in a traditional way, Rise Up transforms learning at both school and home to harness the potential of youth and adults to mitigate and reverse climate change.

According to the World Wide Fund for Nature (WWF Spain), if we continue at this pace, the “excessive” consumption of natural resources would force humanity to have 1.6 planets to meet demand globally.

To help counter climate change, Rise Up provides instructional videos, lesson plans, video games and a green kit in English and Spanish at no cost on the initiative’s website.

Rise Up is part of the efforts of the IDB and the Inter-American Investment Corporation to combat the effects of climate change facing the region. Last year, the IDB Group announced the goal of increasing to 30 per cent the volume of loan approvals for operations related to climate change by the end of 2020.

Jamaica Observer

United States (US) Vice-President Joe Biden has warned regional leaders that volatile oil prices will return. On this basis, he is urging them to use every opportunity to explore clean and alternative energy sources to bolster the prosperity of the Caribbean and Central America.

“This is a moment of opportunity to turn that progress into sustainable energy security that will endure when volatile oil prices return. And they will return,” Biden cautioned the heads of government during the US-Caribbean-Central American Energy Summit in Washington, DC, held earlier this month.

“The good news is that we’re at a nexus for transforming, with transformative opportunities here. Low oil prices mean more money this day is available for investment in new energy infrastructure,” said Biden.

“It’s equivalent to US$1 billion of stimulus just in the region [and] lower energy prices. Our abundance of natural gas provides a critical, clear transition fuel as we’re moving towards adopting renewable technologies.”

Biden said strengthening energy security was among the focus areas for himself and US President Barack Obama.

He noted that North America – Mexico, the US and Canada – is the epicentre of energy production in the world and pointed out that his country recently inaugurated a liquefied natural gas export terminal that has just sent its first cargo of gas to Latin America.

The US had also announced a deal to export natural gas to Jamaica during last year’s staging of the Summit.

“Here’s the truth. We want you to be energy secure so more people across this region can – your region can start businesses, connect to the Internet, generate opportunities, attract foreign investment, grow, grow. The more you grow, the more you prosper, the better off my country is. And it strengthens our security, as well as yours. And it opens up new opportunities for shared economic growth,” he said.

The Gleaner

If the Peru and Mexico auctions are any indication, Latin American markets are establishing a new, and very low, normal for solar prices. Peru recently awarded a solar power purchase agreement (PPA) at $47.98/MWh to Enel Green Power (EGP), making headlines as the lowest PPA on record. But just weeks later, EGP beat its own a record in Mexico’s auction with a PPA price of $35.44/MWh for solar PV, and an average price for all awardees of $50.77/MWh for wind and solar.

What’s pushing these prices down, and how long will it last? Developers are likely making a few key assumptions:

1) Commodity prices are falling — 80 per cent since 2008, according to data from IRENA — and are expected to continue dropping, so modules will be cheaper;

2) Energy Performance Certificate costs are likely to fall as renewable energy penetration increases throughout the region; and

3) The quality of resources is very good in these markets, increasing the effectiveness of solar technologies so developers can get more bang for their buck.

While solar costs are indeed falling, it’s the jaw-droppingly low price bids by EGP that are making headlines. They are building massive installations, much larger than in the past, and economies of scale are helping to push down the prices. Access to funds at highly competitive rates from organisations such as the European Investment Bank has also enabled EGP to bid aggressively.

“Our prices were the most competitive but in line with those submitted by other international operators taking part in the auction,” said Carlo Zorzoli, EGP’s head of Latin America.

EGP has won 1,172 megawatts of solar PV in Latin America in 2016 alone. That, in itself, is noteworthy; perhaps more noteworthy is that they believe they can build profitable projects across a portfolio of tightly priced PPAs.

It’s hard, and perhaps not even desirable, for other developers to compete with EGP’s low bids, but there are other players in these markets bidding at or very near to Enel’s winning prices. Companies eager to make a footprint in the market are coming in at or below cost, according to industry analysts, potentially with internal rates of return in the single digits – a reality they are willing to face to gain a strong foothold in these young markets with enormous potential.

A favourable regulatory environment will continue to be vital in attracting serious developers and maintaining low prices. Peru’s regulator, Osinergmin, required very high bid bonds for their RFP — $50,000/MW — and tied the PPA price to the US dollar, which could prevent results similar to the frenzied bids and current situation in Brazil.

Mexico also allowed developers to bid in pesos indexed to the US dollar, which offered more economic certainty.

Peru’s next request for proposal is couple of years off, but Mexico has one coming up in August, and many expect to see even lower prices.

However, when it comes to other Latin American markets, while prices may be relatively low, they aren’t expected to break records, particularly in Argentina where many unknown factors loom. Broadly, however, the theme is clear: Latin America is opening up, competition is fierce and — at least as far as pricing is concerned — it’s a race to the bottom.

Jamaica Observer 

Daley: I think there is a movement towards a text, which says the developed countries must continue to live up to the essence of the Convention.

PARIS, France:

Up to late last evening, it was still anyone’s guess as to the precise nature or strength of the climate agreement that is to emerge from Paris.

What was clear was the refusal of Caribbean and other small-island developing states (SIDS) to accept a deal that does not take full account of their particular needs in the face of climate-change impacts that could devastate entire economies and significantly reorder life as they know it.

Still, there is some willingness to compromise in the interest of reaching consensus, without which there can be no deal.

“A text was prepared [on Wednesday] and was more or less accepted in terms of its content as something that we can work on,” said Albert Daley, head of the Climate Change Division and a member of the Jamaica delegation to the international negotiations.

The ‘text’ is the label used to describe the intended outcome document while it is being negotiated.

“Having looked at it, there are a number of issues that we were concerned about … we were adamant that 1.5 [degrees Celsius as a cap in global temperatures] has to be in the agreement,” he added.

However, Daley said further: “We are conscious that there are some parties who are saying less than two [degrees Celsius], and so in the agreement that evolved, there was one option which spoke to well below 2 degrees C with the intent to move to 1.5 degrees C. That seemed like something that we would be willing to compromise on if we have to.”

They are also intent on ensuring that whatever the final agreement, it is one that recognises the special circumstances of SIDS. But as with other elements of the draft text, there is a battle raging.

“We are in a fight against other countries who say they are vulnerable. The Latin American countries – the Central American countries – are saying that they are vulnerable. Other countries, too, are claiming they are vulnerable and needing to get the same kind of special treatment. But we are insisting that SIDS have to be mentioned as a group of countries that have special circumstances that necessitate us being treated in a special way,” said Daley, who was in deliberations until 5 a.m. yesterday.

“Very few countries are like us. If we have a storm, other countries can retreat to the hills and continue life as normal. With us, the whole country is impacted,” he added.

 

WRANGLING OVER FINANCE

 

Meanwhile, there is yet more wrangling over finance – which SIDS want to be adequate, predictable and sustainable – as countries debate who should pay and how much.

“The countries that are responsible for the climate-change problem will have to take responsibility for contributing to helping countries to deal with the issue. What we are saying is that the developed countries, they were the original cause and they must finance it, according to the Convention (United Nations Framework Convention on Climate Change),” explained Daley.

“But they (the developed countries) are now saying you have some newly developed countries who have resources and, therefore, they should contribute to helping to address climate-change concerns. And they (those other countries) are saying, ‘No, the Convention says you (developed countries) are responsible and, therefore, should bear the brunt of it’,” he added.

Still, despite the cut and thrust of the talks, Daley was optimistic.

“I think there is a movement towards a text which says the developed countries must continue to live up to the essence of the Convention, which says we have common but differentiated responsibility … . And we are moving towards a state where other countries can voluntarily contribute financing where they are able to,” he noted.

“We are looking forward – having made our inputs to what we feel are reasonable bridging positions – to see what [the new draft text] looks like, and that would now provide the basis for the final round [of negotiations],” Daley added.

The Gleaner

LATIN America and the Caribbean’s renewable energy endowment is large enough to cover its projected 2050 electricity needs 22 times over, according to a new report commissioned by the Inter-American Development Bank (IDB).

The report, Rethinking our Energy Future, argues that lower prices and new technologies are making renewables a viable alternative. Solar, geothermal, wave, wind and biomass sources in this region could produce up to 80 petawatt-hour of electricity.

A solar panel is seen in this photo. Lower prices and new technologies are making solar, wind and other resources competitive with fossil fuels for power generation, according to the Inter-American Development Bank.

One petawatt-hour is equivalent to one trillion kilowatt-hour, roughly three times the amount of electricity Mexico consumes in one year. At present, Latin America generates 1.3 petawatt hour. By 2050, demand is expected to grow to between 2.5 to 3.5 petawatt- hour.

The report addresses a series of myths surrounding renewable energies, noting that several of these alternative technologies have become price competitive with conventional technologies, offer good investment opportunities and should be taken into consideration by policymakers aiming to diversify their national energy matrixes, reduce fuel supply vulnerabilities and cut greenhouse gas emissions.

“Though Latin America uses more renewable energy than any other region in the world, it faces difficult choices as it seeks to generate the electricity it needs to grow without harming the environment,” said IDB President Luis Alberto Moreno. “Renewables are becoming a viable and attractive option that needs to be explored.”

The report was presented yesterday in Bogot

Last week’s death of the Venezuelan president,

Last week’s death of the Venezuelan president,

The Inter-American Development Bank (IDB) said Monday it had been selected by Canada as a key partner in its “fast-start” commitment to support climate-change mitigation and adaptation in Latin America and the Caribbean.

The Washington-based financial institution said Canada has committed CDN$250 million (US$253.1 million) to create the Canadian Climate Fund for the private sector in the Americas.

It will be managed by the IDB and finance private-sector climate-mitigation and adaptation projects requiring concessional financing to become viable.

“The private sector is a key player in helping countries address climate change. The Canadian Climate Fund will go a long way in moving the needle on innovation and helping reduce the gap in financing for climate-friendly projects,” said IDB President Luis Alberto Moreno.

“We thank the Canadian government for providing the resources to create this fund and are grateful for its decision to partner with the IDB,” he added.

Innovative initiatives

Canada’s Minister of International Cooperation, Beverley J. Oda, said fostering active private-sector participation, especially innovative initiatives that generate jobs, is “an important component of our efforts to make our international assistance more effective.

“Through this fund, the IDB will be helping to finance climate-related initiatives, helping to stimulate sustainable economic growth and deliver better results which will benefit Latin America and the Caribbean as a whole,” she said.

The IDB said the fund aims to mobilise private-sector investment in cleaner technologies, “which often have higher initial costs and longer paybacks than fossil fuel technology”.

“A key aspect of the Canada Climate Fund is its ability to level the playing field,” said Hans Schulz, IDB’s general manager at the Structured and Corporate Finance Department.

“Canada’s partnership offers us a tremendous opportunity to expand our support for climate-friendly projects in our member countries,” he added.

The IDB said projects supported may include renewable energy, energy efficiency, agriculture and forestry greenhouse-gas emission-reduction projects, as well as adaptation projects to reduce climate-change vulnerabilities.

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