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On 7 December 2009, the world’s leaders
met in Copenhagen for the 2009 United Nation’s Climate Change
Conference. The 12-day summit ended with the ill-conceived and
non-legally binding Copenhagen Accord, a rather weak statement that
does not include any binding commitments for reducing carbon dioxide
emissions - the greenhouse gas that is blamed for the bulk of global
warming - and thus receives the most attention by media and such
summits.(2)
The failure of the Copenhagen Summit highlights two important facets
of contemporary attempts at combating climate change. Firstly,
leaders from either side of the North-South divide are quick to
point fingers at their developed or developing counterparts, blaming
these for the failure of treaties on greenhouse gas emission
cuts.(3) Secondly, there exists a perceived tension between halting
global warming and simultaneously pursuing economic growth; as well
as between protecting the environment and ending energy poverty.
Too often, countries view the investment in cleantech technologies
as a trade-off, the opportunity cost being faster economic growth.
The interrelationship between these two issues played a dominant
role during the 2009 climate change conference, where most countries
were reluctant to agree on setting binding emission targets for
their own economies, if the other members of the international
community did not do the same. Indeed, China refused to do so from
the outset and, often viewed as hiding behind Africa, argued that it
was unfair for the United States (which emits 19.9 tonnes of CO2 per
capita annually) to demand that a continent which emits merely one
tonne of CO2 annually, to cut its emissions.(4)
China: sustainable energy pariah or paragon?
Since 2007, China is the world’s largest emitter of greenhouse
gasses, having released an estimated 6.2 million tonnes of CO2 into
the atmosphere, 8% more than the United States, in 2009. Indeed, a
recent report finds that the increase in emissions by the rising
economies of China and India (9% and 6% respectively) have actually
nullified the emission cuts achieved by the industrialised
countries.(5) The emerging powerhouse is thus often blamed for
fuelling climate change, especially considering that coal is China’s
primary and cheapest energy source, contributing two-thirds of the
country’s energy needs.(6)
However, the above distinction fails to take into account CO2
emissions per capita. Thus, although China may generate one-fifth of
the world’s total greenhouse gas emissions, its per capita emissions
are merely one-fifth of those of the United States. Secondly, it is
vital to consider China’s role as the “world’s factory.” While many
Western companies have off-shored their manufacturing units to Asia
and most Western economies are now service-oriented, China produces
and exports the bulk of these economies’ goods. Thus it could be
argued that China’s CO2 emissions are partly fuelled by Western
consumers buying Chinese goods.(7)
Further, the Chinese Government has recently embarked on a 10-year
plan under the auspices of the newly created National Energy
Commission, which aims at having 15% of national energy generated
from low-carbon sources by 2020.(8) This ambitious plan focuses on
energy efficiency as well as renewable energy, with the Government
planning to set aside billions of dollars for new investments in
wind and solar power projects (wind and solar power generation
having already doubled year on year over the past 5 years). In
addition, legislators intend to introduce a carbon tax in 2012, the
revenues of which will go into financing renewable energy R&D and
low-carbon energy sources.(9)
With US$ 33.8 billion worth of new financial investments, China is
now at the forefront of investment in renewable energy, outpacing
both the United States and United Kingdom in 2009 (these having
invested US$ 17.9 billion and US$ 11.7 billion respectively). China
experienced a surge in investments in its cleantech industries in
2008 and 2009, and while the West was grappling with the
consequences of the global financial crisis, China’s renewable
energies sector experienced uninterrupted growth.(10)
China’s efforts to diversify its energy mix reflects a common
national security concern - ensuring a stable energy supply to
further fuel strong economic growth rates, while simultaneously
ensuring that this growth is sustainable. This means that mitigating
the potential negative impact of climate change requires a strategy
composed of investing in and utilising low-carbon technologies, but
which does not curb economic growth in the process.
Africa and climate change challenges
The phenomenon of global warming presents both an endogenous and
exogenous challenge to Africa. On the one hand, the continent’s poor
often live in environmentally degraded areas, with their poverty
further fuelling the unsustainable utilisation of resources. A good
example is provided by the incidence of deforestation in Africa,
where forests are cleared for additional living space or
agricultural usage, the wood is needed for housing materials,
heating and cooking, or to sell and export in order to earn
additional income.(11)
Not only does deforestation lead to a loss in soil fertility,
threats to biological diversity, declining land productivity and
increased exposure to tropical diseases, it also contributes to
global warming as there are fewer trees to bind those greenhouse
gases which are responsible for an increase in the world’s
temperature. Indeed, deforestation contributes between 20% and 25%
to global carbon emissions annually, and with Africa’s tropical
forests disappearing at an average rate of 4 million hectares per
year, makes deforestation the largest source of carbon emissions on
the continent.(12) The poor are thus simultaneously contributing to
climate change and are the most vulnerable to global warming’s
detrimental effects on their livelihoods through the expected rise
in sea-levels, droughts and desertification.
On the other hand, it has been calculated that the unsustainable
burning of fossil fuels and the resulting carbon dioxide emissions
from the industrialised world far outweighs the contribution from
the developing countries, with the Organisation for Economic
Cooperation and Development (OECD) being responsible for 51% of
emissions.(13) Yet because of the Global North’s affluence and level
of development, these countries possess the technology that allow
them to be better able to deal with the consequences of global
warming, whereas the phenomenon (apart from disproportionately
affecting developing countries) is likely to exacerbate Africa’s
challenges of inequitable distribution of health care, food security
and access to clean water, thereby increasing the continent’s
constraints on economic growth and development.(14)
Add to these challenges the unique constraints which Africa faces
when it comes to energy. Currently, almost 75% of sub-Saharan
Africans live without electricity and it is estimated that of the
US$ 93.3 billion required to fulfil Africa’s infrastructural needs,
41% constitute spending that would be needed for energy only. Energy
poverty thus constitutes a massive challenge to Africa, particularly
considering that “infrastructure has generated more than half of
Africa’s improved economic growth since 2000”.(15) Again, there
exists a tension between generating energy to fuel Africa’s
economies and thus lessen the constraints on economic growth, and
the potentially devastating effects if the earth’s temperature were
to rise by another 2°C. The cheapest – and thus dominant – form of
electricity generation is (as in China) coal. To demonstrate, 80% of
Botswana’s electricity comes from one coal-fired power plant and
South Africa’s Eskom continues to rely on coal to increase the
country’s energy capacity.(16) Coal, however, is the least desirable
form of energy in achieving a decrease in greenhouse gas emissions.
The problem faced by Africa in easing the tension between protecting
the environment and boosting economic growth consists – as so often
– of a lack of “financial, technological and capacity-building”
resources.(17) Africa’s infrastructural spending needs stated above
refer only to energy; these statistics do not make provision for the
spending needed on renewable energies. In addition, the continent
does not yet possess the technological capacity to independently
embark on investments in cleantech, which are both energy and cost
efficient. This particular issue proved to be a further sticking
point leading up to, and during the 2009 Copenhagen Summit, with one
African leader putting a price tag of US$ 67 billion annually on the
mitigation and adaptation to climate change.(18) The World Bank sets
this figure at US$ 140 to US$ 175 billion annually over the next 20
years for the entire developing world, with an additional US$ 265 to
US$ 565 billion required for financing.(19)
Enter China
Although Africa may not as yet possess the financial or
technological capacity necessary for engaging in a rapid expansion
of its renewable energies sector, the continent is endowed with
ample solar, wind, hydropower and bio-energy resources. Africa thus
presents a potentially vital niche in the global market for
cleantech energy.(20) China is already capitalising on this massive
investment opportunity.
With China’s Sino Hydro Corporation building wind farms, as well as
hydroelectric dams worth an estimated US$3 billion in Ethiopia(21),
Mozambique and Kenya; Yingli Solar providing photovoltaic power to
20 soccer training centres across Africa (thus supplementing its
FIFA World Cup sponsorship); and the Chinese Government pledging to
build 100 cleantech projects on the continent, the Asian power is
again at the helm of renewable energy projects in Africa.(22)
The expansion of the cleantech sector in China has brought enormous
economic benefits to the Asian economy. With wind power generation
having grown by over 100% (2005-2009) and the country generating 45%
of the world’s photovoltaic in 2009, China has created an industry
with an estimated value of US$ 17 billion and expanded employment in
the energy sector by 300,000 to 1.5 million in 2009.(23) China will
be hoping to emulate the enormous profit potential of the renewable
energies sector in Africa. Indeed, the Southern African cleantech
sector, aided by foreign investment, is expected to grow nearly ten
times in the next 5 years and generate revenues of approximately US$
260 million by 2015.(24)
By investing in and providing loans to African renewable energy
expansion, China is effectively utilising its vast technical and
financial capabilities to help the continent realise its energy
needs, thus creating opportunities for economic growth, while
simultaneously making a contribution to the combat against climate
change.
NOTES:
(1) Fiona Dwinger is an Analyst in Consultancy Africa Intelligence’s
Asia Dimension Unit ( asia.dimension@consultancyafrica.com This
e-mail address is being protected from spambots. You need JavaScript
enabled to view it ).
(2) ‘What was agreed and left unfinished in U.N. climate deal’,
Reuters, 20 December 2009, http://in.reuters.com.
(3) Vidal, J., ‘Rich and poor countries blame each other for failure
of Copenhagen deal’, guardian.co.uk, 19 December 2009, http://www.guardian.co.uk.
(4) Tujan, T., ‘The North’s destructive model’, D+C Development and
Cooperation, February 2010, http://www.inwent.org.
(5) Olivier, J.G.J. and J.A.H.W. Peters, ‘No growth in total global
CO₂ emissions in 2009’, Netherlands Environmental Assessment Agency,
June 2010, http://www.rivm.nl.
(6) Knickerbocker, B., ‘China now world’s biggest greenhouse gas
emitter’, The Christian Science Monitor, 28 June 2007, http://www.csmonitor.com.
(7) ‘Chinese CO2 emissions in perspective’, Netherlands
Environmental Assessment Agency’, 22 June 2007, http://www.pbl.nl.
(8) Murray, J., ‘China to unveil multibillion-dollar renewable
energy plan’, BusinessGreen, 5 March 2010, http://www.businessgreen.com.
(9) Young, T., ‘China to impose carbon tax from 2012’, BusinessGreen,
12 May 2012, http://www.businessgreen.com.
(10) Nusca, A., ‘Seven renewable energy targets for 2020’,
Smartplanet, 1 July 2010, http://www.smartplanet.com.
(11) Elliott, J.A., 2006. An Introduction to Sustainable
Development. Routledge, London.
(12) Proffer, D., ‘Africa: Tackling deforestation is critical’,
AfricaNews, 18 December 2007, http://www.africanews.com.
(13) Human Development Report. UNDP, 2008, Oxford University Press,
Oxford.
(14) Willis, K., 2006. Theories and Practices of Development.
Routledge, London.
(15) Mthembu-Salter, G., ‘Soaring costs and shrinking pockets’, The
Africa Report December 2009- January 2010.
(16) Njobeni, S. And G. Ware, ‘The race between green power and fast
growth’, The Africa Report, December 2009- January 2010.
(17) Ibid.
(18) Ibid.
(19) ‘World Development Report 2010: Development and Climate
Change’, The World Bank, 2010, http://siteresources.worldbank.org.
(20) Zenawi, M., ‘Introductory remarks by H.E. Prime Minister Meles
Zenawi at the Fourth African Economic Conference’, Economic
Commission for Africa, 11 November 2009, http://www.uneca.org.
(21) ‘How China is Powering Africa’s Growth’, American Foreign
Policy, 24 September 2009, http://afpprinceton.com.
(22) Van Valen, M., ‘Asian Construction: Bridges and ports made in
China’, The Africa Report, December 2009 - January 2010.
(23) Wines, M., ‘China pledges $10 billion to Africa’, The New York
Times, 8 November 2009, http://www.nytimes.com.
(24) Eriksson, J., ‘China’s Urge for Renewable Energy’, Renewable
Power News, 29 June 2010, http://www.renewablepowernews.com.
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