Energy transition in a changing Arab world. Discussing sustainability safeguards for large-scale RE-projects in the MENA region

Transcription

1 Energy transition in a changing Arab world Discussing sustainability safeguards for large-scale RE-projects in the MENA region

2 Observing, Analysing, Interfering - for North-South Equity and the Preservation of Livelihoods > established 1991 > appr. 500 members > 45 employees in Bonn and Berlin, Germany > Main topics: > Climate Protection & Adaptation to Climate Change > Energy Policy > World Trade & Food > Corporate Accountability, Financial Sector & Sustainability

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4 Challenges and opportunities - The macro perspective The visionary concept "DESERTEC" aims towards tackling different global challenges simultaneously: a low-carbon energy future for the EU-MENA region, water and food security as well as prosperity and development options for the MENA-region Source: Schinke and Klawitter, 2010.

5 Potential "co-benefits" between SocialCSP and BETTER WP D 2.4 Impacts Research and Public outcreach BETTER, 2013

6 Potential "co-benefits" between SocialCSP and BETTER WP D 2.4 Have we captured all key parameters by looking at the macro, micro and social acceptance level for exporter/importer/transit countries? (D 2.4) Any suggestion on the proposed analytical framework to assess co-effects (i.e: economic, social, environmental, energy security)? Too ambtious? Not relevant? Something missing? (D 2.5 ; currently in revision)

7 RE/EE Policies in selected MENA countries BMU,

8 RE/EE targets in selected MENA countries REN21,

9 RE projects Concentrated Solar Power (CSP) Country MWe Technology Status Abengoa Solar Jordan Jordan To Be Confirmed Announced Ain-Beni-Mathar ISCC Morocco Parabolic Trough Operation Ain-Beni-Mathar ISCC 2 Morocco Parabolic Trough Development Akarit Tunisia Parabolic Trough Planning Catalyst Private Equity Jordan To Be Confirmed Announced DLR- Algeria CSP Project Algeria 7.00 Tower Planning EJRE Projects Jordan Jordan To Be Confirmed Announced Elmed CSP Project Tunisia Parabolic Trough Planning Evolution Solar Jordan Jordan To Be Confirmed Announced Hassi-R'mel Algeria Parabolic Trough Operation Hassi-R'mel II Algeria Parabolic Trough Planning Kom Ombo Egypt Parabolic Trough Development Kuraymat ISCC Egypt Parabolic Trough Operation Libia Fresnel Libya Fresnel Unconfirmed Marsa Alam Egypt Parabolic Trough Planning Meghaïer Algeria Parabolic Trough Construction Mitsubishi Corporation Jordan Jordan To Be Confirmed Announced Naâma Algeria Parabolic Trough Planning Ouarzazate I Morocco Parabolic Trough Development Shams 1 UAE Parabolic Trough Commissioning Tan Tan CSP-Desal Project Morocco To Be Confirmed Announced TuNur Tunisia Tower Announced Yazd ISCC Iran Parabolic Trough Announced

10 Renewable Energy MENA REN21 Report, 2013

11 Principles of market friendly industrial policy Dii, 2013

12 Challenges and opportunities the micro perspective/acceptance level The risk of a "race to the bottom" Once the RE-scale-up process takes off, competition within MENA countries could lead to the negligence of essential regulations with standards less stringent than under an international funding regime; Challenges: Competition between countries leads to "race to the bottom"; Opportunities: Cooperation between countries could lead to a "race to the top"; Conclusion: In the absence of commonly accepted best-practice guidelines based on international conventions, it is questionable whether it will be possible to prevent a race to the bottom among the host countries.

13 Challenges and opportunities the micro perspective Technology transfer: Is there a risk that North Africa substitutes its dependencies on fossil fuels with the dependence on foreign technology transfer, work force and expertise? Environment: Will Desertec have negative impacts on water, land and electricity availability at the regional level? Can t we use the energy or desalineted cooling water to re-green the Sahara desert? Socio-economics and livelihoods: How can Desertec achieve benefits at the local level in terms of regional value creation, high-quality jobs, environmental protection and livelihood provision? How could the development needs of poor countries be addressed through Desertec without destroying/blocking the traditional livelihoods of vulnerable people? How does Desertec contribute to education and skill development in the field of renewable energies? Is Desertec focused on exporting electricity to the EU and why, while North Africa is lacking electricity supply? Who will get the profits of Desertec (industry, governments, local communities)? How come Desertec is focused on the partnership between North Africa and the EU, whereas a possible partnership with Sub-Saharan Africa is hardly ever mentioned? Civil society engagement: Why is it that Desertec hardly involves civil society actors from North Africa and no local communities, while big corporations and powerful governments are very present?

14 Creating a market-friendly industrial policy is just not enough Macro-economic studies about GDP and employment effects create expectations; Expectations can only be fulfilled if recommendations are developed to bring the models into reality; BUT! Market-friendly principles maximize profits and resource allocation mainly in privilege of strong foreign industries and at the expenses of MENA competitors; do not automatically deliver long-term, sustainable growth of RE market and industry in MENA; Instead, in an imbalanced world, (EUMENA) they could actually: hinder sustainable development and economic growth, endanger the aspirations of the Arab Spring, result in import dependency lock in and poverty trap effects. Sustainability requirements are needed to accompany such principles to achieve sustainable outcomes in MENA!

15 Sustainability framework for large-scale RE projects Industry Governments Socially equitable Multilateral Banks Academia Civil Society Economically stable Ecologically sound

16 Sustainability framework for large-scale RE projects Arab Development Challenges Report 2011 : [ ] there is need for a quick assessment of the social and economic benefits of potentially large infrastructural projects and embarking on an open and transparent debate to decide on the most beneficial and viable projects (UNDP, 2011, p11).

17 Project: Social CSP To what extent could utility-scale CSP plants in the MENA region provide valuable livelihood co-benefits or actually hamper sustainable development at the local level? UfM (MSP): zone of shared peace, stability and prosperity How can CSP plants be designed and developed to: provide long-term social and socio-economic opportunities for local communities ( do good )? protect the livelihood security of local communities from critical environmental and socio-economic threats ( do no harm )? and promote the empowerment of community stakeholders to get involved in the development of CSP projects in fair and accountable ways ( good process )?

18 Project: Social CSP Duration Goal Empirical and participatory development of socioeconomic sustainability requirements/safeguards for the implementation of CSP projects in the MENA region Objective Identification of potential socio-economic impacts (real and anticipated) in the vicinity of two CSP plants in Morocco and Egypt 2 case studies Outcomes Stakeholder-based sustainability framework for private sector, EUMENA governments or multilateral banks

19 Sustainability framework for large-scale RE projects Energy policy dimension of large-scale RE projects Security of supply Cost effectiveness Regulatory and economic framework conditions Technical feasibility Human development dimension of large-scale RE projects (outcome and process) Preservation and enhancement of social resources and social cohesion Vulnerable and marginalized groups Equity, fairness and non-discrimination A future focus Social inclusion, participation and empowerment Good governance Availability of and access to basic livelihood needs and services Environmental protection Land and water Biodiversity Poverty alleviation and income generation Local economic impulses and employment opportunities Health and safety Capacity building, skill development and technology transfer Education, social learning and awareness Operationalization of the framework Host country regulations in the MENA region Private sector commitments of Corporate Social Responsibility (CSR) Extraterritorial state obligations of investing European countries Electricity import responsibilities of the European Union under EU Article 9 Investment obligations of MDBs or in case of a EU-MENA tender

20 Operational Goal Principles Criteria Guidelines Analytical Goal Change processes Impacts Methodological Goal Participatory set of methods Analysis Top-down Approach (desktop study) Methods Chapter 6 Chapter 2 Chapter 3 Chapter 4 Chapter 5 The SLA Technology development of CSP Livelihood sustainability key themes Socio-economic effects of CSP The Input-Output framework Strengths of the SLA Market development of CSP Macroeconomic and industrial potential of CSP Financial and ownership aspects of CSP Analysisof existing sustainability frameworks from other fields Assessment of the methodological approaches applied to sustainability frameworks Lessons learned from other largescale projects in Egypt and Morocco and of CSP in Spain Identification of ways for civil society involvement (CSP) Project description OZZ CSP 1 and the MASEN approach Preliminary baseline of the province of OZZ Project description Kom Ombo CSP and the NREA approach Adaptation of the SLA to the case of CSP Development of a set of empirical SLA methods Objectives Combined applications of CSP for multiple purposes Preliminary baseline of the province of Kom Ombo Operationalization Pool of theoretical sustainability requirements (top-down) Pool of empirical sustainability requirements (bottom-up) Overview of livelihood effects of existing CSP and PV ESIAs List of empirically based livelihood effects Bottom-up Approach (field realities) Chapter 9 Synthesis of results into a list of potential impacts and translation of insights into a set of sustainability requirements Chapter 7 Baseline Assessment of the OZZ province Chapter 8 Baseline Assessment of the Kom Ombo province Stakeholder Analyis of the OZZ province Stakeholder Analyis of the Kom Ombo province Impact Assessment of OZZ CSP 1 Impact Assessment of Kom Ombo CSP

21 Project: Social CSP Conceptual framework Initial set of PC&I (top-down approach) Minimum set of reliable PC&I Social Political Financial Natural Physical Human Field realities (bottom-up approach) Source: Schinke et al, in preparation

22 Schematic diagram of the PC&I screening process Biomass trade Mining Infrastructure Process industry Lewandowski et al ICMM AGIC Brent and Labuschagne CDM Sutter et al Gold Standard Initial set of livelihood sustainability requirements (top-down approach) Forestry CIFOR REDD+SE FSC Integrated frameworks RE projects ISO Germanwatch MDBs Safeguard Policies Desertec Foundation Source: Schinke et al, in preparation

23 Source: Schinke et al, in preparation

24 Potential synergies with BETTER (Bringing Europe and Third countries closer together through renewable Energies) Design and implementation of Article 9 (2009/28/EC) Action Plan for Article 9 (with regards to new EU RE/EE/CC targets for 2030) Market opportunities as well as other associated environmental and socio-economic coeffects Impact assessment (WP 5 Assessment of potential environmental, economic and social impacts due to intensified RES cooperation, D 2.4 Discourse level acceptability which conflicts could arise?) Barriers and opportunities associated to the implementation of Article 9, through SWOT analysis and recommendations to surmount them both from the EU and the third country perspective Sustainability safeguards and policy recommendations ("Sustainable Desert Power Certificate" or "RES Gold Standard") (WP2: Policy gaps and analytical framework to identify cooperation opportunities with third countries) Establishment of a solid stakeholder network between EU and 3rd countries to foster RES cooperation and knowledge transfer "MENA Civil Society Network on Renewable Energy, Low-carbon Development and Climate Protection"

25 Thank you for your attention We will not enjoy development without security, we will not enjoy security without development, and we will not enjoy either without the respect for human rights UN Secretary-General Kofi Annan (2005)