Availability and access of financial support for renewables: issues and an illustrative innovation

This paper examines issues related to increasing the market penetration of renewable forms of energy in developing countries. It particularly focuses on availability and access of financial support for investments relating to renewable energy and a case study is presented illustrating innovative financing. While the main focus of the discussion is on renewable energy (RE) attention is also devoted to energy efficiency (EE) projects and investment. An underlying premise is that, if RE projects are to reach their market potential, they must be fiscally sustainable and the appropriate promotion of such fiscally sustainable RE projects yields multiple environmental and developmental synergies. Commercial viability is not primarily a question of technology. There is a broad range of RE products with proven performance and commercial operation in selected market situations. The challenge of extending this market penetration is to establish the institutional, organizational and financial conditions under which a commercial market for these products can develop, particularly in developing countries. This article reflects current emphasis on increased private participation in the energy sector, as well as policy reform at the national level.     

Sustainable development in the Clean Development Mechanism: the role of Designated National Authority in China and India

The Clean Development Mechanism (CDM) emerged under the Kyoto Protocol to facilitate collaboration between developed and developing countries in order to mitigate greenhouse gases. The CDM allows developed countries to receive credits towards meeting their obligatory targets by investing in emission reduction projects in developing countries. The countries are required to set up a Designated National Authority (DNA) to approve the CDM projects. This paper examines the role of the DNA in ensuring sustainable development, using the empirical case of China and India. Three aspects of the DNA's role are examined: the institutional structure, the policy context and the CDM project market. All three aspects highlight the important role of the DNA in meeting the countries' sustainable development priorities.     

Legal aspects of natural resource projects in the CIS

Foreign companies interested in natural resources ventures in republics of the Commonwealth of Independent States must contend with a legal, regulatory and tax environment that is particularly fluid. The approval process for joint ventures, production sharing and export agreements (particularly for natural resources) is complex. Legislation in most CIS countries falls short of adequately addressing investors' concerns or lacks clear guidance on many key issues, such as conditions under which a state enterprise can enter into new business arrangements under current privatization laws. Among other conditions that act as a constraint to investment projects are lack of a sufficiently convertible currency in each CIS country and complex regimes of currency regulation; the absence of financing techniques that are common in market economies (ie secured lending); the need to scrutinize the validity and enforceability of any locally available guarantees and a reluctance by financial institutions to participate in projects in CIS countries (often because they have considerable difficulty assessing the viability of projects). These problems demand an extraordinary commitment in terms of effort and perseverance from potential investors, as compared to projects in other areas of the world. This paper cites the key negotiating issues and transactions that need to be structured with care by a prudent investor.     

World demand for cobalt: An econometric study

This article analyses the world demand for cobalt. It estimates short- and long-run elasticities with respect to price, activity and in some cases with respect to substitute-complement variables. For the USA these estimates have been obtained for all the important end-use categories. Aggregate elasticities are estimated for Japan, West Germany, France and for the non-communist world (excluding the USA). The appendix to the paper models price setting in the cobalt market and presents two simple simulations conducted on the world cobalt market.     

Putting the ‘E’ into LSPs: Representing the Environment within Local Strategic Partnerships (LSPs) in the UK

Abstract

This article reports the findings of a qualitative study with residents living in six deprived neighbourhoods in the UK and the front-line workers and local policymakers responsible for the renewal of these areas. The study was an attempt to raise awareness of local environmental concerns in the context of a national and local policy agenda, which has, until recently, largely overlooked the impacts of degraded environments on the lives and activities of the people who live in them. A key aim for the study was to raise people's concerns with local decision-makers and examine how far these might be addressed through the existing financial, administrative and legislative arrangements for neighbourhood renewal in the UK, namely Local Strategic Partnerships. The research was designed to provide practical lessons and policy recommendations for others wishing to raise the profile of environmental justice in the context of neighbourhood level regeneration projects, in both the UK and elsewhere in the ‘developed’ world.     

Establishing Green Roof Infrastructure Through Environmental Policy Instruments

Traditional construction practices provide little opportunity for environmental remediation to occur in urban areas. As concerns for environmental improvement in urban areas become more prevalent, innovative practices which create ecosystem services and ecologically functional land cover in cities will be in higher demand. Green roofs are a prime example of one of these practices. The past decade has seen the North American green roof industry rapidly expand through international green roof conferences, demonstration sites, case studies, and scientific research. This study evaluates existing international and North American green roof policies at the federal, municipal, and community levels. Green roof policies fall into a number of general categories, including direct and indirect regulation, direct and indirect financial incentives, and funding of demonstration or research projects. Advantages and disadvantages of each category are discussed. Salient features and a list of prompting standards common to successfully implemented green roof strategies are then distilled from these existing policies. By combining these features with data collected from an experimental green roof site in Athens, Georgia, the planning and regulatory framework for widespread green roof infrastructure can be developed. The authors propose policy instruments be multi-faceted and spatially focused, and also propose the following recommendations: (1) Identification of green roof overlay zones with specifications for green roofs built in these zones. This spatial analysis is important for prioritizing areas of the jurisdiction where green roofs will most efficiently function; (2) Offer financial incentives in the form of density credits and stormwater utility fee credits to help overcome the barriers to entry of the new technology; (3) Construct demonstration projects and institutionalize a commitment greening roofs on publicly-owned buildings as an effective way of establishing an educated roofing industry and experienced installers for future green roof construction.     

World copper market, 1973–1982, and international stabilization policies

This article critically examines international price stabilization policy in relation to the main features of the world copper market and the structural changes that have affected the industry in the decade up to 1982. The first section summarizes the main features of the world copper market, briefly discussing the principal structural changes; the second part examines the recent pattern of investment in copper and changes in ownership of some copper producing companies resulting from the need for improved cash flows due to the adverse effects of the recession; and the third part analyses the practical and theoretical issues relating to the question of price instability. A number of formidable problems are likely to arise from such price stabilization policies and it is concluded that it is because of these difficulties that the policies have not been implemented. Consequently, international commodity agreements designed to minimize or avoid price instability have proved difficult to conclude. New questions on which consensus is likely should be examined to promote intergovernmental co-operation, and hence market stability. With that end in view, this article lists some new questions that could form the basis of an agenda for exploratory intergovernmental discussions on copper.     

Chinese construction companies in Angola: A local linkages perspective

China tends to spearhead its economic overtures to African countries through high-level bilateral negotiations. These are frequently in the form of China Exim Bank loans for large-scale infrastructure projects, repaid by resource exports to China. While much is made of China's resource-based activities in Africa, less focus is placed on the converse of this relationship—the infrastructure provision that African resources buy from China. This article takes the positions that local linkages development is one of the clearest ways that African countries can benefit from Chinese construction companies' market engagement. The prevailing view is that Chinese companies contracted to undertake the construction projects financed in this way do not use local labour, materials or any other inputs in the undertaking of their contracts. Focusing on the strategic orientation of large Chinese companies state-owned enterprises (SOEs) operating in Angola's construction sector, this article seeks to uncover the determinants of their sourcing behaviour, and the manner in which this is reflected in their use of local inputs.     

重庆市土地储备制度的融资选择

城市土地储备制度的运行必须以连续的资金流为保汪，但是传统的融资渠道，如财政拨款和银行贷款已不能满足当前城市土地整理及开发中巨大的资金需求。以重庆市为例，从分析重庆市城市土地利用状况和土地市场特点出发，运用PPP模式和ABS模式，提出土地信托和土地债券的概念，得出一条创新的城市土地储备制度融资渠道，以加强城市抵御各方面风险的能力。     

Clean Water State Revolving Fund Loans and Landowner Investments in Agricultural Best Management Practices in Iowa1

Arbuckle, Jr., J. Gordon, 2012. Clean Water State Revolving Fund Loans and Landowner Investments in Agricultural Best Management Practices in Iowa. Journal of the American Water Resources Association (JAWRA) 1‐9. DOI: 10.1111/j.1752‐1688.2012.00688.x Abstract: Clean Water State Revolving Fund (CWSRF) loan programs for water quality have traditionally funded infrastructure projects at the community, municipality, or state level. They are increasingly being used to support individual landowner adoption of agricultural best management practices (BMPs) for nonpoint source pollution abatement. In 2005, the Iowa CWSRF initiated the Local Water Protection Program (LWPP) to increase the scope, scale, and rate of agricultural BMP establishment. This research examines the effectiveness of that program through a comparison of survey data from LWPP participants and state cost‐share recipients who were eligible for loans, but did not take them. Loan recipients’ assessments of the program were overwhelmingly positive, with near‐universal satisfaction with both the loan product and process. Results of statistical analyses indicate that loan recipients invested substantially more in conservation than nonrecipients. Evidence suggests that by helping program participants to overcome financial constraints, loans are facilitating larger and accelerated investments in conservation. Although findings indicate that conservation loans can play an important role in funding conservation, loan recipients also still depend on cost‐share. Loans are not necessarily a substitute for traditional forms of conservation funding, but rather another tool that landowners and conservation professionals can employ to facilitate investments in BMPs.     

FARMERS' ATTITUDES TOWARD NONPOINT POLLUTION CONTROL AND PARTICIPATION IN COST-SHARE PROGRAMS1

The success of government programs to control nonpoint source pollution depends upon attitudes toward those programs and the availability of technical and financial assistance. Applicants for the Rural Clean Water Program cost-share funding in Virginia possess different personal and operational characteristics than do nonapplicants. Factors associated with participation in the Rural Clean Water Program differed from those associated with the more traditional soil conservation programs. Discriminant analysis was used to differentiate between other farmers who may become applicants and nonapplicants. Farmers' attitudes toward various policy options for inducing implementation of nonpoint source management practices varied greatly. Farmers were most favorable to cost sharing, low-interest loans and tax credits, and least favorable to a soil loss tax. They were either very favorably or very unfavorably inclined toward cross-compliance between pollution control and other agricultural programs.     

Progress on including CCS projects in the CDM: Insights on increased awareness,market potential and baseline methodologies

The inclusion of CO₂ capture and storage (CCS) in the Kyoto Protocol's Clean Development Mechanism (CDM) is still subject to controversy and discussion. A myriad of barriers prevents CCS in the CDM. Apart from political barriers, economic, social and procedural barriers play a role. This paper discusses relevant new results on the human capacity, procedural feasibility and economic potential of CCS in the CDM. The conclusions of a capacity building effort in Africa show that awareness and knowledge are low but that capacity building efforts are well received. A reality check on methodologies for hypothetical CCS projects shows that most of the issues can be resolved, and the CDM institutional arrangements can accommodate CCS. A bottom-up estimate of the potential of natural gas processing CCS in the CDM, based on a previously proprietary database from the oil and gas industry, suggests that there is an annual potential of about 174 MtCO₂ in 2020 in that sector. Most of that potential can be realized at CER prices between $20 and $30/tCO₂ but there is no sign of flooding the CDM market with cheap credits from CCS projects. Despite these results and more open information, the CCS and CDM debate, progress in the negotiations on CCS in the CDM is slow and there is no clear view on a solution.     

Impact of market reforms on future patterns of non-ferrous metal consumption of the former Soviet Union

The study examines the implications of market-oriented reforms on the prospects of non-ferrous metal use in the former USSR. Past metal consumption behaviour of the USSR is found to differ considerably from prevailing patterns of the advanced market economies. The study estimates a large 'intensity- of-use' gap across metals, which can be taken as a relatively easily mobilizable source for efficiency improvements via market reforms. Two scenarios for economic reforms are modelled, notably radical and gradual. Both are shown to cause a collapse of varying intensity in domestic metal demand lasting until the mid-1990s. For the subsequent period, a turnaround in consumption trends is projected, which is sharper under the radical reform scenario. The projected collapse of domestic demand argues for an increasing exportable surplus in the former Soviet Union for a range of non-ferrous metals, with potentially severe depressive effect on world prices.     

International oil market – new directions

This article focuses on changes in the international petroleum industry during the past 20 years and examines some major trends, especially since the oil price collapse of 1986. The resumption of rapid increases in oil demand since 1986 in the developed market economies and the developing world has already led to a pronounced production shift to OPEC member countries where output increased by 6.6 million barrels per day or, 37% since 1985. Cutbacks in petroleum investments in non-OPEC countries are likely to result in even more dependence on the vast proved oil reserves of OPEC. However, the gap between peak output and sustainable production capacities in OPEC has narrowed and there is an urgent need for sizeable investments to expand capacities. Such investment programmes are already being implemented by transnational oil corporations in countries such as Indonesia and Nigeria where the companies had retained equity participation. In other countries such as Iraq and Venezuela where oil operations had been nationalized, transnational oil corporations are being invited to participate in new arrangements for oil production. New arrangements are also being considered in Eastern Europe and the USSR. New understandings, dialogue and cooperation between oil-consuming and producing countries will be necessary for the security of investments, supplies and markets in this process. The unanswered question is whether such cooperation can be achieved in time in order to avoid yet another energy crisis.     

Alternative natural gas contract and pricing structures and incentives for the LNG industry

Gas conversion to liquefied gas (LNG) and transport by LNG tankers is one option for meeting expanding gas consumption and for gas traded internationally. This paper examines the impact of the traditional gas contract provisions of indefinite pricing, market out price ceilings, and take-or-pay requirements on the profitability of LNG projects in the context of markets characterized by price and quantity uncertainty. Simulation experiments are used to examine and calibrate the effects of those provisions. The results provide guidance to operators, host countries and purchasers in structuring such contracts. The paper also assesses prospects of future expansion of world LNG capacity.     

Putting the 'E' into LSPs: Representing the Environment within Local Strategic Partnerships (LSPs) in the UK

This article reports the findings of a qualitative study with residents living in six deprived neighbourhoods in the UK and the front-line workers and local policymakers responsible for the renewal of these areas. The study was an attempt to raise awareness of local environmental concerns in the context of a national and local policy agenda, which has, until recently, largely overlooked the impacts of degraded environments on the lives and activities of the people who live in them. A key aim for the study was to raise people's concerns with local decision-makers and examine how far these might be addressed through the existing financial, administrative and legislative arrangements for neighbourhood renewal in the UK, namely Local Strategic Partnerships. The research was designed to provide practical lessons and policy recommendations for others wishing to raise the profile of environmental justice in the context of neighbourhood level regeneration projects, in both the UK and elsewhere in the 'developed' world.     

Regulatory failures,split-incentives,conflicting interests and a vicious circle of blame: the New Environmental Governance to the rescue?

This paper addresses a current trend of New Environmental Governance (NEG). It examines whether NEG is able to overcome a series of complex regulatory barriers and market shortfalls that stand in the way of carbon emissions reductions in the building sector. Building on an evaluation of 20 NEG arrangements from Australia and the Netherlands, it discusses the limits of the effective implementation and use of NEG in this sector. The paper concludes by suggesting three strategies to improve the performance of NEG arrangements in the building sector.     

新疆CDM项目的开发状况与前景分析

随着世界经济的进一步发展,能源的需求量持续增加,CO2的排放量还将持续增长.温室气体排放带来的气候变暖问题会进一步加剧。清洁发展机制(CDM)是在《京都议定书》框架下,发达国家与发展中国家就碳减排进行合作的重要机制.发展中国家通过CDM可以获得实现节能减排的资金援助和先进技术,促进国家的经济发展和环境的可持续发展。就新疆CDM项目的发展状况、国际碳市场的前景,以及新疆CDM项目开发存在的问题和解决方法方面进行了探讨。     

Financing water supply and sanitation under Agenda 21

This paper assesses the financing challenges which have to be met by developing countries if water resources are to be managed efficiently, if the quality of the aquatic environment is to be improved and if water related services are to be delivered in a responsive, efficient and equitable way. This paper takes the view that attaching 'price tags' to water supply and sanitation, as was tentatively done in Agenda 21, is a misguided approach and that what is needed is articulation of clear principles which should underpin the financing of water supply and sanitation investments. To illustrate the approach the paper focuses heavily on experiences from World Bank water supply, sanitation and urban development projects over the past 30 years. The challenge is to develop appropriate institutional and financial arrangements. The essence of such arrangements is that they ensure that societies mobilize appropriate levels of resources for providing water related environmental services and that these resources are used in the most efficient and effective way possible .     

Capital allowance schemes for mining projects in LDCs

The capital allowance structure for mining projects in developing countries affects the supply price of investment by determining the payback period, reinvestment and the timing of government receipts. Using the capital allowance structures of Sierra Leone, Tanzania, Zambia, Botswana, Papua New Guinea and Malaysia, the article develops a financial model and examines the effect of capital allowances on foreign investor and host government cash flows under various cost-price conditions. The study stresses the importance to governments of making accelerated depreciation a flexible tool to trade off against other elements in the fiscal package. From the government viewpoint, faster write-offs of capital are preferable to a tax holiday. The article places particular emphasis on evaluating the relationship between capital allowances, income tax and a rent resource tax.