Showing posts with label greenhouse gas. Show all posts
Showing posts with label greenhouse gas. Show all posts

Wednesday, January 25, 2012

Pilot Carbon Emissions Trading System Readied in China

25 January 2012.The Asian Development Bank (ADB) will help the People’s Republic of China (PRC) set up a pilot provincial emissions trading system that could pave the way for a national scheme and lower greenhouse gas emissions in the country.

“Emissions trading encourages companies to increase energy efficiency and renewable energy supply, which would ultimately result in reduced greenhouse gas emissions.  This pilot will provide valuable lessons for the design of a nationwide system to reduce the carbon intensity of the Chinese economy,” said Pradeep Perera, Senior Energy Specialist in ADB’s East Asia Department.

ADB is providing a $750,000 equivalent grant to lcaray the groundwork for a cap-and-trade based emission trading system (ETS) in Tianjin municipal area which could begin operations as early as 2013. ADB will help design the platform, including the trading rules and regulatory framework, as well as support the commissioning of the trading platform.

Cap-and-trade based emission trading allows market participants to turn emission savings into a tradable commodity and provides market-based incentives for industries to reduce their use of carbon-emitting fossil fuels. It is economically more efficient than a carbon tax, as the carbon price is determined by the market and intended emission reductions are stipulated by the market regulator. Europe has a well-developed cap-and-trade based ETS, which will provide useful lessons for the design of the Tianjin ETS.

The PRC is the world’s largest emitter of carbon emissions, but it has been making major strides in recent years to improve energy efficiency and to increase the use of renewable power sources.

Under its current five-year national development plan to 2015, it has set significant carbon and energy intensity reduction targets and is looking at developing market platforms that can provide companies with economic incentives to cut emissions. The government has also earmarked similar pilot emission trading schemes for development in Beijing, Shanghai, Chongqing municipalities, and in Guangdong and Hubei provinces.

ADB’s assistance will include a $200,000 grant from its Technical Assistance Special Fund, as well as a $550,000 grant from the Climate Change Fund. The Fund, established by ADB in 2008, aims to stimulate investments in developing member countries which address the causes and consequences of climate change x

Thursday, December 1, 2011

OECD Green Growth Studies: Energy

A fundamental transformation is required in the way we produce, deliver and consume energy. The current energy system is highly dependent on fossil fuels, whose combustion accounted for 84% of global greenhouse gas emissions in 2009. Global demand for energy is rapidly increasing, because of population and economic growth, especially in large emerging market economies, which will account for 90% of energy demand growth to 2035. At the same time, 1.3 billion people worldwide still lack access to electricity.

The OECD and IEA have released the joint report Green Growth Studies: Energy, which highlights the challenges facing energy producers and users, and how they can be addressed using green growth policies.

Introduction

Energy is a fundamental input to economic activity. Modern energy services light up our homes and schools, fuel economic activity to produce and consume, provide comfort and mobility, pump water and contribute to health and well-being. Harnessing energy sources to replace manual and animal labour was the platform of the Industrial Revolution: a period of unprecedented economic and social development.

The 20th century witnessed large increases in the global population, economic output and fossil fuel consumption. The gains from growth have been impressive for many. Yet these gains have taken a toll on a range of environmental systems where unsustainable practices have dominated. Continuing deterioration of natural resources could stress the ability to meet the needs of a growing population and undermine economic activity. Green growth could meet this challenge. Green growth is about fostering economic growth and development while ensuring that natural assets continue to provide the ecosystem services on which our well-being relies. To do this it must catalyse investment and innovation which will underpin sustained growth and give rise to new economic opportunities.

The energy sector poses a particular challenge in the context of green growth due to its size, complexity, path dependency and reliance on long-lived assets.

The current energy system is highly dependent on fossil fuels, whose combustion accounted for 84% of global greenhouse gas emissions in 2009. Global demand for energy is rapidly increasing, due to population and economic growth, especially in large emerging countries, which will account for 90% of energy demand growth to 2035. At the same time, nearly 20% of the global population lack access to electricity. A major transformation is required in the way we produce, deliver and consume energy.

A large-scale transformation of the global energy sector is possible, though it will require significant investment. Global emissions could be halved by 2050, using existing and emerging technologies at an additional cumulative investment of USD 46 trillion. It is vital for governments to create the enabling
policy framework to catalyse private-sector investment in the transition to a low-carbon energy sector. It is cheaper in the long-term to act now, as every USD 1 of energy sector investment not spent before 2020 will require an additional USD 4.3 to be spent after 2020 to compensate for increased greenhouse gas
emissions by building zero-carbon plants and infrastructure by 2035.

Table of Contents

Chapter 1. Transforming the energy sector to sustain growthGreen growth requires a green engine
Addressing systemic risks and imbalances
Global energy outlook
Implications of continuing current trends

Chapter 2. Promoting the transition to green growthGreen growth and energy: What’s at stake
Potential trade-offs and adjustment costs
Key technologies for green growth and energy
A policy framework for greening energy
Policies for green growth in specific energy sectors
Chapter 3. Implementing green energy: Reshaping the political economyPolitical economy – achieving change in different country contexts
Structural adjustment
Stranded capital
Employment effects
Distributional effects

Chapter 4. Monitoring progress towards green growthThe OECD framework for green growth indicators
Energy related green growth indicators



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Saturday, November 26, 2011

Near-term Climate Protection and Clean Air Benefits:Actions for Controlling Short-Lived Climate Forcers

London/Nairobi, 25 November 2011. A package of 16 measures could, if fully implemented across the globe, save close to 2.5 million lives a year; avoid crop losses amounting to 32 million tonnes annually and deliver near-term climate protection of about half a degree C by 2040.
The report estimates that implementing these measures would help keep a global temperature rise below the 2 degrees C target, at least until mid-century.
The measures, outlined in a new report compiled by the UN Environment Programme (UNEP) with an international team of experts, target short-lived climate forcers (SLCFs)—black carbon which is a major component of soot, methane and tropospheric ozone.

The report emphasizes that fast action on short-lived climate forcers will not be able to keep global temperature rise to under 2 degrees C by the end of the century, unless governments decisively act on the principle greenhouse gas, carbon dioxide (CO2).

The report, funded by the Government of Sweden, estimates that around half of the black carbon and methane emission reductions can be achieved through measures that result in cost savings over the lifetime of the investment.

This is because some of the measures—such as recovering rather than emitting natural gas during oil production—allow the methane to be harvested as a clean source of fuel.

Cutting black carbon emissions by, for example, replacing inefficient cookstoves and traditional brick kilns with more efficient ones, also cuts fuel costs for households and kiln operators.

The report points to other economic, social and environmental benefits that are not included in the overall cost-estimates of this assessment. These include:

Upgrading wastewater treatment works will help cut emissions of methane, while improving sanitation and water quality.

Recovery of coal mine methane - carried out for occupational safety reasons as well as for the economic value of methane as a clean-burning energy source - will have significant climate and health benefits.

The report has been requested by developed and developing countries and builds on some ten years of scientific research, first, through the UNEP Atmospheric Brown Cloud project, and more recently via assessments by UNEP and the World Meteorological Organization (WMO).

In June this year, UNEP and the WMO released their Integrated Assessment of Black Carbon and Tropospheric Ozone report, underlining the likely health, agricultural and climate benefits of fast action on these pollutants.

The June report also spotlighted the link between methane emissions and the formation of tropospheric ozone, concluding that methane is contributing by around 50 per cent to increases in background ozone concentrations world-wide.

This, in part, explains why the concentrations of tropospheric ozone in the northern hemisphere have tripled over the past 100 years.

Indeed, tropospheric ozone has become the third most important contributor to man-made climate change, after carbon dioxide and methane itself.

Tropospheric ozone also reduces crop yields and damages human health, when inhaled.

Black carbon, together with other components of particulate matter - emitted as a result of inefficient burning from a wide range of sources, including cook stoves and diesel engines - is a major cause of premature deaths, resulting from outdoor and indoor pollution.

It is also likely to heat up the atmosphere and, when deposited onto ice caps and glaciers, can accelerate melting because less sunlight is reflected back into space.

Fast action on short-lived climate forcers could significantly cut the rate of warming in the Arctic and reduce projected warming in 2040 by 0.7 degrees C, with important implications for the lives and livelihoods of Arctic peoples, biodiversity and global sea-level rise.

Achim Steiner, UN Under-Secretary General and UNEP Executive Director, said: “The scientific case for fast action on these so-called ‘Short-Lived Climate Forcers’ has been steadily built over more than a decade—the question governments have been asking over recent months is what are the options and
priorities for action and the likely costs and benefits in order to advance a response to rapidly manage these substances.”

“This report provides that analysis and offers pathways and policies that may allow nations, acting nationally, regionally and globally, to achieve some remarkable gains in terms of a transition to a low emission, resource efficiente
Green Economy over the near term.”

“For some countries the most important benefits result from cost-effective improvements in air pollution and reduced illness and loss of life—black carbon, for example, could be controlled under national and regional air quality agreements. Other countries are also recognizing the food security benefits in terms of reduced crop damage in a world of seven billion people,” said Mr. Steiner.

“For others, it may be the regional and global climate benefits that are uppermost in their minds—whatever the motivation, this report presents the costs and the benefits that can play their part towards a sustainable 21st century as governments head towards Rio+20 in June, next year,” he added.

Key Options for Fast Action to Implement Measure to Reduce SLCFs

Fast action on short lived climate forcers will be required to deliver climate change, health and agricultural benefits over the near term.

The report groups actions into four categories based on relative costs, while also looking at regional benefits and regional sources of the different pollutants.

The 16 measure identified in the report are organized into four categories, based on their relative cost. All have been tried and tested to varying levels in a variety of countries. For example, most European countries have already banned the burning of agricultural wastes, which can be expanded to other regions.
More efficient cookstoves are already being introduced in many parts of the world, including West Africa, China and India.

Emissions standards, such as the Euro 6/VI, are being introduced for vehicles in Europe and other members of the Organization for Economic Cooperation and Development (OECD) as well as in some non-OECD countries.

Black Carbon

In total, nine priority measures are identified for reducing black carbon emissions, with substantial benefits to health and the environment
A switch from traditional biomass cookstoves to more efficient fan-assisted ones, or stoves fueled by Liquefied Petroleum Gas or biogas, offers the biggest reduction potential in Africa, Asia Pacific and, to some extent, in Latin America and the Caribbean.

Action on cookstoves is also pinpointed as a low cost or cost-saving measure, which would represent close to 25 per cent of the total climate benefit, achievable through the full implementation of all 16 measures on short-lived climate forcers.

A switch to more efficient cookstoves would save householders and communities the time and money, usually spent over the collection and purchase of firewood and other sources of fuel.

The cost of replacing traditional cookstoves with more environmentally-friendly ones may seem low by international standards. However, from the perspective of local users in developing countries, this cost may represent a financial burden. The report looks at ways to overcome such barriers and to link the implementation of such measures to national development plans.

Replacing conventional residential wood burning stoves in North America and Europe with pellet stoves and boilers would also offer important black carbon cuts—estimated at close to 2 per cent of the overall climate benefits.

Replacing traditional brick kilns with more efficient ones could trigger cost savings equal to around $7 a tonnes of CO2 equivalent.

Vertical-shaft brick kilns use about half the energy and, hence half the fuel costs, per brick made compared to the traditional kilns. Methane Cuts to Reduce

Tropospheric Ozone
In respect to methane, seven measures are identified.

The biggest cuts would come from reducing emissions from coal mines and processes related to the production and transport of oil and gas, as well from as the capture of methane from landfill sites.

Globally, nearly 50 per cent of the methane reduction potential can be achieved through measures that will give rise to cost savings over the lifetime of the investment. Cost estimates were calculated according to two different perspectives:

A social planning perspective, where investment in black carbon and methane capture measures constitutes a long-term benefit for society and where cost savings are discounted over the lifetime of the investment.

A private business perspective, which expects a more rapid return on investment and where the implementation of black carbon and methane reduction measures may prove challenging, without adequate access to financing.

In North America, Europe and elsewhere separation and treatment of the biodegradable portion of municipal waste has important benefits—globally, this amounts to close to 10 per cent of the climate benefits linked with fast action.

Further benefits can arise in parts of Asia from exposing continuously flooded rice paddies intermittently to the air under improved management systems, as is now practiced in parts of China—globally, the climate benefits as a proportion of action on short-lived climate forcers is just over three per cent.

The report outlines national actions that can assist in fast-tracking efforts to reduce short-lived climate forcers, ranging from tax incentives, regulation, public education and subsidizes or loans on, for example, improved cookstoves.

Regional actions can include controlling pollutants, such as black carbon, under regional air quality agreements. For example, the UN Economic Commission for Europe’s Convention on Long-Range Transboundary Air Pollution and its Gothenburg Protocol are currently being reviewed for the possible inclusion of black carbon, as a component of particulate matter.

Globally, there are opportunities for complementary actions that support international treaties, such as the UN Framework Convention on Climate Change, in respect to methane and tropospheric ozone.

Convening international organizations around common near-term climate protection objectives could be a powerful way of integrating existing initiatives, reducing duplication and inefficient use of resources, while leading to more effective SLCFs mitigation in different sectors, worldwide.

Contacts
Nick Nuttall, UNEP Division of Communication and Public Information Acting Director and Spokesman, tel. +41 795 965 737 or +254 733 632 755;
nick.nuttall@unep.org, or,
Shereen Zorba, Head, UNEP News Desk, tel. +254 78852 6000;
unepnewsdesk@unep.org.


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Friday, November 25, 2011

Enhancing EU rules for monitoring greenhouse gas emissions

European Commission Climate Action Newsroom 23 Nov 2011. Timely and accurate data on greenhouse gas (GHG) emissions is vital for knowing whether the EU and its Member States are on track to meet their emission targets and for developing robust new policies to address the climate challenge. The European Commission today proposed legislation to significantly enhance the monitoring and reporting of GHG emissions, in particular to meet new requirements arising from the package of EU climate and energy laws for the period 2013-2020.

Connie Hedegaard, European Commissioner for Climate Action, said: "By improving transparency, coordination and the quality of data reported, today's proposal contributes to keep better track of our progress towards meeting our emissions targets. This proposal will also help monitor and report emissions from land use, land use change and forestry (LULUCF), aviation and maritime transport amongst other sectors. We hope that these new rules will also set an example in the context of the international climate negotiations and serve as a benchmark for transparency of climate action by developed countries." The EU and Member States already cooperate to monitor and report GHG emissions under the terms of a Decision adopted in 2004. They produce annual GHG inventories which are used to assess progress towards meeting Kyoto Protocol emission targets. They also gather and publish information on GHG projections and on their policies and measures to reduce emissions.

The current rules are largely based on the requirements arising from the Kyoto Protocol. The proposed new Regulation enhances this monitoring and reporting mechanism in line with the requirements of the 2009 climate and energy package. It goes a step beyond Kyoto in providing greater transparency in the data and information provided and ensuring compliance with the EU's climate change commitments.

The main objectives of the proposed revision are to:

Facilitate further development of the innovative EU climate policy mix by addressing emissions from land use, land use change and forestry (LULUCF), aviation and maritime transport, among other sectors, and by supporting adaptation to climate change;

Help the EU and Member States keep track of progress towards meeting their emission targets for 2013-2020;

Further improve the quality of data reported;

Ensure that the EU and Member States comply with current and future international monitoring and reporting obligations and commitments. This includes reporting on financial and technical support provided to developing countries, and commitments arising from the 2009 Copenhagen Accord and 2010 Cancún Agreements;

Put in place operational rules for Member States to report on their use of revenues from the auctioning of allowances in the EU emissions trading system (EU ETS). Member States have committed to spend at least half of the revenue from such auctions on measures to fight climate change in the EU and third countries.
Read more:
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Tuesday, November 22, 2011

Trinidad and Tobago to transition to sustainable energy sources with IDB financing

News Releases.Nov 22, 2011. US$60 million loan to help Caribbean nation implement a more efficient, sustainable and clean energy matrix. The Inter-American Development Bank (IDB) has approved a US$60 million loan to help Trinidad and Tobago, a major producer of hydrocarbons, to transition towards a more efficient, sustainable and clean energy matrix.

The loan, the first in a programmatic series of three consecutive operations, will strengthen the regulatory and legal framework to contribute to a more sustainable energy sector with a focus on renewable energy, increased efficiency, transparency and accountability. It will support the preparation of new policy and legislation for energy efficiency and measures to increase the environmental sustainability of alternative energy fuels such as natural gas and compressed natural gas (CNG). Finally, it will promote efficient and rational production and use of fossil fuels and strengthen institutional capabilities for sustainable energy and public education efforts.

“The program will promote a sustainable energy framework that will guide exploration, exploitation, utilization and monetization of energy resources where energy efficiency, renewable energy sources such as solar water heaters, alternative energy fuels, carbon reduction and innovation play a strategic role,” IDB Project Team Leader Natacha Marzolf said.

By supporting these moves, the program will contribute to Trinidad and Tobago’s efforts to reduce greenhouse gas emissions.

Under this program, authorities will draft a “Green Paper for Energy and Minerals Policy in Trinidad and Tobago” which will shape the energy sector regulatory framework and will then be submitted to public consultations for feedback. The program includesa series of tax and fiscal incentives for the importation and installation of wind turbines and solar water heaters and for kits used to convert vehicles so they can run on CNG. There will also by incentives for companies to carry out energy audits and implement other energy-efficiency measures.

The program will support public education and awareness efforts regarding energy and will help draft a plan for the establishment of a Caribbean Renewable Energy Center, which will help spread cleaner energy principles throughout the region.

The loan is for a 20-year term, with a five-year grace period, and carries a variable interest rate based on LIBOR.

Monday, November 21, 2011

Greenhouse gases reach new high, says UN meteorological report

UN News. 21 November 2011. The presence of greenhouse gases in the Earth’s atmosphere last year reached its highest levels since pre-industrial times, a report released by the United Nations World Meteorological Organization (WMO) warns today.

The latest edition of WMO’s Greenhouse Gas Bulletin, which places special focus on rising nitrous oxide concentrations, also notes that the rate of increase of greenhouse gases has recently accelerated.

“Even if we managed to halt our greenhouse gas emissions today – and this is far from the case – they would continue to linger in the atmosphere for decades to come and so continue to affect the delicate balance of our living planet and our climate,” said WMO Secretary-General Michel Jarraud.

 According to the report, the 20 years to 2010 saw a 29 per cent increase in “radiative forcing” – the warming effect the gases have on the Earth’s climate – from greenhouse gases, with carbon dioxide accounting for 80 per cent of this increase.

“Now more than ever before, we need to understand the complex, and sometimes unexpected, interactions between greenhouse gases in the atmosphere, Earth’s biosphere and oceans,” Mr. Jarraud said.

Human activities, such as fossil fuel burning and agriculture, are major emitters of greenhouse gases, which trap radiation within the Earth’s atmosphere, causing it to warm and spur climate change.

Speaking at a press conference earlier today, WMO Deputy Secretary-General Jeremiah Lengoasa called for further development in the alternative energy sector to stem the rapid growth of greenhouse gases.

“Unless there is the investment made by funding alternative energy sources that are non-polluting, in particular as a viable substitute for fossil fuels, then the kind of steps that are required in scientific terms to cap or stem the growth would not happen and so we anticipate that these investments have to be made,” he told reporters.

Carbon dioxide, methane, and nitrous oxide are the three main contributors to greenhouse gasses, with carbon dioxide’s atmospheric abundance rising by 39 per cent since the start of the industrial era in about 1750.




Tuesday, November 15, 2011

Study shows significant reductions in CO2 emissions from ships from IMO measures

Briefing: 57, November 14, 2011, IMO. An International Maritime Organization (IMO)-commissioned study into the impact of mandatory energy efficiency measures for international shipping shows that implementation of the measures will lead to significant reductions of greenhouse gas (GHG) emissions from ships, specifically reductions of carbon dioxide (CO2), resulting from enhanced fuel efficiency.
The study found that, by 2020, an average of 151.5 million tonnes of annual CO2 reductions are estimated from the introduction of the measures, a figure that by 2030, will increase to an average of 330 million tonnes annually. CO2 reduction measures will result in a significant reduction in fuel consumption, leading to a significant saving in fuel costs to the shipping industry
The study, Assessment of IMO mandated energy efficiency measures for international shipping*, was launched on Monday (14 November) ahead of the forthcoming United Nations Climate Change Conference, to be held in Durban, South Africa, from 28 November to 9 December, 2011.
IMO will report to that Conference on the breakthrough adoption, in July 2011 at IMO’s Marine Environment Protection Committee (MEPC), of mandatory technical and operational measures to reduce GHG emissions from international shipping. Amendments to the International Convention on the Prevention of Pollution from Ships (MARPOL), Annex VI Regulations for the prevention of air pollution from ships, add a new chapter on Regulations on energy efficiency for ships. The regulations will apply to all ships of 400 gross tonnage and above and are expected to enter into force on 1 January 2013.
This new chapter makes mandatory the Energy Efficiency Design Index (EEDI), for new ships, which, in essence, requires new ships to be designed to be more energy efficient (and thereby release less greenhouse gases). The regulations are non-prescriptive: as long as the required energy-efficiency level is attained, ship designers and builders are free to use the most cost-efficient solution or solutions for each particular ship.
The new regulations also make mandatory a Ship Energy Efficiency Management Plan (SEEMP) for all ships. This is a plan which sets out, for an individual ship, how energy savings can be made. There are a variety of options to improve efficiency – speed optimization, weather routeing and hull maintenance, for example – and the best package of measures for a ship to improve efficiency differs to a great extent depending upon ship type, cargo, route and other factors. The new regulations make such a ship-specific plan mandatory thereby encouraging the shipping industry to review its practices in a systematic way to find the best balance.
Amongst the key findings, the report (undertaken by Lloyd’s Register (LR) in partnership with Det Norske Veritas (DNV)) found that:
• By 2020, an average of 151.5 million tonnes of annual CO2 reductions are estimated from the introduction of the EEDI for new ships and the SEEMP for all ships in operation, a figure that by 2030, will increase to an average of 330 million tonnes annually.
• Compared with Business as Usual (BAU), the average annual reductions in CO2 emissions and fuel consumed are estimated between 13% and 23% by 2020 and 2030 respectively.
• CO2 reduction measures will result in a significant reduction in fuel consumption, leading to a significant saving in fuel costs to the shipping industry, although these savings require deeper investments in more efficient ships and more sophisticated technologies, as well as new practices.
• Significant reduction of CO2 emissions from ships due to EEDI and SEEMP regulations is foreseen to 2050 with emission reduction due to SEEMP likely to be realised more rapidly than that for EEDI, as the effect of EEDI will occur only as and when older, less efficient, tonnage is replaced by new, more efficient tonnage.
• The estimated reductions in CO2 emissions, for combined EEDI and SEEMP, from the world fleet translate into a significant annual fuel cost saving of about US$50 billion in 2020 and about US$200 billion by 2030; using fuel price increase scenarios that take into account the switch to low-sulphur fuel in 2020.
• Mandatory application of EEDI will drive more energy-efficient ship design and realise the CO2 emission reduction potential associated with technical innovation and the use of lower or no carbon fuels.
• The mandatory use of SEEMP based on current IMO regulations will provide a procedural framework for shipping companies to recognise the importance of the operational energy- saving activities. It will significantly boost the level of awareness and, if implemented properly, will lead to a positive cultural change.
• Investigations show that ship hydrodynamic and main engine optimisation will bring about energy-saving opportunities of up to around 10% with no significant additional cost of shipbuilding.
The IMO regulations represent the first-ever mandatory energy efficiency measures for an international transport sector and their adoption followed several years of work on the matter. Work is now progressing on market-based measures, with intensive work to review a number of different proposals, submitted by Governments and observer organizations.
Further work will be carried out on market-based measures in 2012. Such measures would place a price on greenhouse gas emissions, thereby providing both an economic incentive for the maritime industry to invest in more fuel-efficient ships and technologies and to operate ships in a more energy-efficient manner and a mechanism to offset growing ship emissions in other sectors. In addition, these measures can generate funds that could be used, for example, for projects to mitigate climate change in developing countries.
Study shows significant reductions in CO2 emissions from ships from IMO measures

Monday, November 14, 2011

Barbados to diversify energy matrix, promote sustainable energy sources with IDB assistance

The Inter-American Development Bank (IDB) has approved a $70 million loan to help Barbados reduce its dependence on fossil fuels by diversifying its energy matrix, promoting sustainable energy sources, and supporting power saving efforts.

The operation, the second in a series of two programmatic loans for the sector, will support policy and legislation moves aimed at promoting renewable energies as well as the rational and efficient use of fossil fuels.

As a result, Barbados is expected to reduce its electricity consumption by 19 percent by 2029.

Greater efficiency will also enable Barbados to cut its oil import bill by about 30 percent over a 20-year period, yielding cumulative savings of approximately $600 million. This could have a dramatic economic impact on the population at large, as soaring prices of oil used for power generation mean that Barbados residential users currently face one of the highest electricity rates in the world—$0.30 per kilowatt hour.

Under the plan, the country will aim to have 29 percent of electricity consumption come from renewable sources such as photovoltaic, solar water heating, wind, biomass cogeneration, and waste-to-energy projects by 2029.

The program will also advance plans to promote the use of biofuels by blending ethanol with gasoline, encourage the use of natural gas as a substitute for other types of fossil fuels, and replace incandescent light bulbs with more efficient alternatives.

The program will enable Barbados to reduce greenhouse gas emissions by around 4.5 million tons of carbon dioxide equivalent by 2029; it will support energy sector climate-change initiatives; and will help fund institutional strengthening, public education and awareness, and capacity building drives to promote sustainable energy and conservation initiatives.

The loan is for a 20-year term, with a five-year grace period, and at a variable interest rate based on LIBOR

IDB. News Releases.Nov 8, 2011