You are in: Home > Press office > Press Releases Archive > Press Releases 2007 > 078/2007
Joint press release with the Federal Ministry for Environment, Nature Conservation and Nuclear Safety
Many lesser developed countries dispose of considerable yet still unexploited potential to use renewable energies, a conclusion reached in a study carried out by the Wuppertal Institute for Climate, Environment and Energy on behalf of the Federal Ministry for Environment and the Federal Environment Agency. The study investigated the role played by the Clean Development Mechanism (CDM) in the renewable energies sector, focusing on Egypt and Thailand. CDM is an instrument set up by the Kyoto Protocol to reduce greenhouse gas emissions in threshold and developing countries.
The study concludes that both countries possess great potential to make more use of renewable energies; however, there are hindrances that include monopolistic energy markets or lacking access to the energy grid for independent energy suppliers. This makes Egypt and Thailand typical of many other lesser developed countries.
The Kyoto Protocol requires industrialised nations to reduce their greenhouse gas emissions. In order to also include lesser developed countries in climate protection efforts, CDM projects aim to promote emission reductions as well as sustainable energy management in developing countries. Project partners from industrialised states provide financial back-up for the project whereby they gain the right to use the emission reductions achieved in their own countries, as stipulated in regulations on EU emissions trading.
Nearly 60 percent of all currently registered CDM projects promote the use of renewable energy sources in developing countries. Yet it is conspicuous that the share of greenhouse gas emission reduction achieved is relatively low—renewable energy usage accounts for only 22 percent of emission reductions for all registered CDM projects. This is due to the fact that renewable energy projects are often smaller scale than other CDM projects, e.g. projects on generation of power from the greenhouse gas methane from landfills. In addition, renewable energy projects usually only reduce emissions of the greenhouse gas carbon dioxide, and not some of the other more damaging gases such as methane.
If the Clean Development Mechanism is to achieve its purpose of serving as an additional source of funding for renewable energies in developing countries, governments must adapt national and local framework conditions. This includes setting well-defined objectives for the development of renewable energies and the phasing out of subsidies for fossil fuels. Furthermore, it requires more concentrated support, perhaps by means of feed-in tariffs or tax advantages, as well as a free market system and access to the renewable energies market.
The Federal Ministry for Environment will continue its cooperation with CDM host countries. This is a key part of the CDM/JI Initiative, with a broad spectrum of measures to be added to it next year after the conclusion of the pilot phase. The goal of the initiative to achieve greater involvement of German businesses in the international carbon markets as well as to promote further development of the Kyoto Protocol beyond 2012 with participation of threshold and developing countries. Such ambitions would include the development of networks in host countries so as to facilitate investment opportunities for German businesses there whilst building up host countries’ own capacities.
The Promoting Renewable Energy Technologies in Developing Countries through the Clean Development Mechanism study is on the Internet at http://www.umweltbundesamt.de/uba-info-medien/3339.html
The Renewable Energy and the Clean Development Mechanism. Potential, Barriers and Ways Forward A Guide for Policy-Makers publication is available at http://www.umweltbundesamt.de/uba-info-medien/3340.html
Dessau, 12 December 2007
