unep background guide - sanmun 2013

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Sankara ModelUnited Nations 2013

Background Guide

United Nations EnvironmentProgramme

w w w . s a n m u n . o r g

Eighth session

August 9-11



Letter from the Executive Board

Delegates,

Welcome to the United Nations EnvironmentProgramme! Its a matter of pride when you’rerepresenting a country in a committee that isusually looked down upon but plays a significantrole in developing our world. By examining theEnergy policy of your countries, you will begin tobetter understand the industrial as well asenvironmental aspects of your country’s

policies.

We’re sure this would be an exciting andengaging simulation for you. Please feelwelcome to drop a message/mail if you haveany doubts. We cannot wait to meet you all in August!

Sincerely, Akshat JainUdhav KrishnaDhanush Naveen

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Committee History & Mandate

The United Nations Environment Program wasestablished to coordinate and promote

environmental activities in the UN system. Unlikethe other Specialized Agencies, UNEP does nothave to execute and finance projects as itsprimary function.

Its objectives are: to improve scientific andtechnological knowledge of environmentalissues and to make that available for

environment development and conservation; todevelop an integrated approach to the planningand management of development in order toachieve maximum economic, sociological andenvironmental benefits; and to assist allcountries, especially developing countries, toaddress environmental problems throughprovision of financing, information, technologyand educational assistance.

The new Executive Director of UNEP is Mr Achim Steiner, previously the Director Generalof the World Conservation Union (IUCN)

Mission Statement of UNEP : To provide

leadership and encourage partnership in caringfor the environment by inspiring, informing, andenabling nations and peoples to improve theirquality of life without compromising that offuture generations.

UNEP is the United Nations system’s designatedentity for addressing environmental issues at

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the global and regional level. Its mandate is tocoordinate the development of environmentalpolicy consensus by keeping the globalenvironment under review and bringing

emerging issues to the attention ofgovernments and the international communityfor action. The mandate and objectives ofUNEP emanate from:

• UN General Assembly resolution 2997 (XXVII)of 15 December 1972;

• Agenda 21, adopted at the UN Conference onEnvironment and Development (theEarth Summit) in 1992;

• the Nairobi Declaration on the Role andMandate of UNEP, adopted by the UNEPGoverning Council in 1997;

• the Malmö Ministerial Declaration and the UNMillennium Declaration, adopted in2000; and

• recommendations related to internationalenvironmental governance approved by the2002 World Summit on SustainableDevelopment and the 2005 World Summit.

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Main agenda

Achieving commitments for Energy

SecuritySustainable economic activity must be basedon renewable energy sources, such as solar andwind power. In the run-up to the internationalconference on Sustainable Development, Rio+20, the UN declared 2012 as the "international year for sustainable energy for all."

Governmentsmust cooperateto transformglobal energysystems as a key

part ofagreements forsustainabledevelopmentand climatechangemitigation. Dueto globaleconomicproblems andthe heavyinfluence ofmultinationalcorporations onglobal energy

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policies, governments are reluctant to worktogether on these urgent tasks, preferring toact according to narrowly framed nationalinterests and economic “stability.” In their policy

pronouncements, governments emphasize theshort-term costs and problems, rather than theopportunities, of (radical) steps towardssustainable energy systems.

Many scientists have ruled out arguments thatmarket forces and technological changes cangradually lead to a sustainable energy future.

The UNEP must consider the urgent need forenergy system transition to avert acatastrophic climate change. A good life for theworld’s peoples does not require intensiveenergy use.

This Background Guide will focus on the following sub-topics:

1) Definitions of Energy Security2) Investments in Renewable Energy to fightclimate change3) ‘World Energy Outlook’ - Report4) Energy Taxes5) Middle East Oil & Energy Crisis6) Energy Wars7) Special Report on Renewable EnergySources and Climate Change Mitigation8) Case studies (Germany, Cuba, India)

Definition of Energy Security

On the eve of the 1st World War I, WinstonChurchill made a historic decision: to shift the

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power source of the British navy’s ships fromcoal to oil. He intended to make the fleet fasterthan its German counterpart. However, theswitch also meant thatt he Royal Navy would

rely not on coal from Wales but on insecure oilsupplies from what was then Persia. Energysecurity thus became a question of nationalstrategy. Churchill’s answer? “Safety andcertainty in oil,” he said, “lie in variety and varietyalone.” Since Churchill’s decision, energy securityhas repeatedly emerged as an issue of greatimportance, and it is so once again today. But

the subject now needs to be rethought, forwhat has been the paradigm of energy securityfor the past three decades is too limited andmust be expanded to include many newfactors.

Thus, Energy Security was earlier defined asensuring safe and accessible energy for all.

The focus on energy security towardsrenewable energy today is driven in part by anexceedingly tight oil market and by high oilprices, which have doubled over the past threeyears. But it is also fueled by the threat ofterrorism, instability in some exporting nations,a nationalist backlash, fears of a scramble forsupplies, geopolitical rivalries, and countries’fundamental need for energy to power theirlong term economic growth.

The need for energy security and thedeclaration of the year 2012 as the”International Year for sustainable energy forall“ gained prominence mainly due to chronic

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power shortages in China & India and powerblackouts on American coasts & in Europe. Alsoat this point of time, a threat from Al-Qaeda toattack the energy supply systems of the world

is also another element fuelling the need forrenewable, safe and accessible energy for all.

The impact of growth in China, India, andelsewhere on the global demand for energy hasbeen far-reaching. In the 1970s,North Americaconsumed twice as much oil and coal as Asia.Last year, for the first time ever, Asia’s oil and

coal consumption exceeded North America’s.The trend will continue: half of the total growthin oil consumption in the next 15 years will comefrom Asia. However,Asia’s growing impactbecame widely apparent only in 2004, whenthe best global economic performance in ageneration translated into a “demand shock”—that is, unexpected worldwide growth in

petroleum consumption that represented arate of growth that was more than double theannual average growth rates of the precedingdecade. China’s demand in 2004 rose by anextraordinary 16 percent compared to 2003,driven partly by electricity bottlenecks that ledto a surge in energy use for improvised electricgeneration. U.S. consumption also grew stronglyin 2004, as did that of other countries.Theresult was the tightest oil market in threedecades (except for the first couple of monthsafter Saddam’s invasion of Kuwait in 1990).Hardly any wells were available to produceadditional oil. That remains the case today, andthere is a further catch. What additional oilmight be produced cannot be easily sold

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because it would not be of su⁄ciently goodquality to be used in the world’s available oilrefineries. Adding to these worries, were fearsof climate change and pollution caused due to

sources of energy that are non-renewable.

All these problems have provoked a new roundof fear that the world is running out ofresources to fuel its energy demand. A newpractical and long term approach is required toensure sustainable development.

Investments in Renewable Energy to fightclimate change

Many governments have been quick to see therenewable energy sector as a key componentof efforts to green their economies, but fewerhave placed renewables at the centre of theirstance on global efforts to address climate

change. The reason for this may be that greeneconomy efforts are seen to be built on localeconomic developments, whereas climatechange strategies tend towards top down ‘silverbullet’ solutions that rely on yet to becommercialized technological innovations. Thereare a wide range of low-carbon technologyoptions and many will be needed to stabilizethe climate. However only the renewable energyand energy efficiency options are receivingsignificant investment flows today. Nuclear, evenpre-Fukushima,saw only 5GW commissioned in2010 versus 60GW for renewables, while cleancoal and carbon capture and storagetechnologies remain at early stages ofdeployment with few commercial-scale projects

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under way. To restrict global carbon dioxideemissions so that the rise in worldtemperatures is no more than two degrees

Centigrade

would requiremuch moreaggressivecapacityadditions inrenewableenergy. TheG-20 countries

would have toinvest $350billion a year inrenewableenergy assetsby 2020,equivalent to acapacity

addition ofnearly 180GW8.

To read the report, click here.‘World Energy Outlook’ reportThe 2012 World Energy Outlook report providesa grave depiction of our energy future. It mainlyfocuses on the positive that advances in drillingtechnology will increase US oil production tomake it the largest producer by 2020. However,it is the result of a simultaneous productiondecline from tradition markets like Saudi Arabiaand Russia. Thus, energy security remains a keyissue especially since the report predictsgrowth in demand. Furthermore, the reportsays that future increase in renewable energy

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will be insignificant thus continuing thedependency on fossil fuels. More importantly,the report alludes to a 3.6 °C increase in longterm average global temperature even with

drastic measures to curb greenhouse gases.Thus, creating resiliency on both energyprojections and climate change is the currentglobal dilemma. Focusing efforts on reducingenergy demands is ultimately more favorabledue to the slow increase in clean energy.

Energy Taxes

Emissions of greenhouse gases such as carbondioxide cause the earth's atmosphere to warm,leading to deadly droughts, floods and otherextreme weather events. Taxes on carbon/energy can help mitigate global climate change,by raising the prices of carbon-rich fuels toreflect the social and environmental costs they

inflict on society. Higher prices of carbon-basedfuels would also boost the use of renewableenergy, such as solar and wind power.

Many experts argue that energy taxes would bemore efficient in reducing the speed of globalwarming than the current emissions tradingsystem under the Kyoto Protocol. The Kyotosystem imposes greenhouse gas emission capson ratifying countries by giving them a limitedamount of emissions credits. However, theseemissions credits are tradable, thereby allowingaffluent governments and powerful industriesto evade responsibility by purchasing creditsfrom less-polluting countries and industries.Critics argue that the emissions trading system

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only deals with climate change on a superficiallevel. Moreover, energy taxes have theadvantage of raising revenues that could beearmarked for further investment in renewable

energy sources.

Middle East Oil & Energy Crisis

The Arab Spring has had effects on various oilconsuming nations. Take for instance, India -India is experiencing a disturbing rise inbrownouts and blackouts, while its requirements

for imported energy continue to grow. Itspopulation is 6.5 times the size of its neighbour,Pakistan, making the demand even stronger.

India is also feeling the pressure from Iraniansanctions. The country is the second-leadingimporter of Iranian crude (after China). NewDelhi has received a reprieve from Washington

— the US has granted it a temporary exemptionfrom the sanction penalties.

Saudi exports have helped some, but India isagain paying an ‘Asian premium’ for that oil, aprice higher than the same oil bound for otherplaces like Europe. And with its refineries built tooperate on Iranian-grade crude, even findingcontinuing (not to mention affordable)alternatives will still create problems.

Elsewhere, Egypt is facing an absolute energyshutdown. As the problems in Cairo streetsheat up again, government officials now speakopenly of massive power deficiencies. Onesuggested earlier this month that the delivery

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infrastructure could shut down altogether.

Then there is Turkey. What happens in thiscountry may well end up being the lynchpin for

the entire Middle East. Turkey’s energy needsare the fastest growing in the world, withprospects forming to transform the country intothe de facto regional leader as internal disorderblunts the influence of Egypt and Syria.

Turkey is also poised to be the primary newthroughput nation for gas and oil coming into

Europe from rising production in the Caspianbasin. The gas future looks very strong withcompeting pipeline projects contesting todeliver energy west by traversing the country.

Increasing oil exports, on the other hand, arelimited to what additional volume can be movedsafely through the Bosporus and the

Dardanelles — the Turkish Straits. This is a majorchokepoint in international oil trade and anaccident would subject large and congestedpopulations to an outright disaster.

Yet these days the government in Ankara isbecoming more concerned about its ability tofeed the growing domestic demandrequirements. Turkey’s internal stability willdepend on solving its own energy distributionsituation.

Iran, due to impasse over its nuclear programhas been slapped with tight economic sanctionson the 1st of July, 2010. This went down as avery important event in the geopolitical history

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and assumed to be very important whilstdiscussing energy security. Iran’s decreasingreliance on fossil fuels for domesticconsumption and shift towards nuclear energy

was a big controversy with several nationsraising fears of the objectives of Iran’s nuclearambitions.

As the picture darkens, a region thought forsome time to be ripe for competition overenergy production is morphing into one wherethe next wave of conflict may well result from

the lack of energy availability.

Renewable energy looks like the only practicallong term solution.

Energy Wars

The eruption of clashes over energy supplies

around the globe is an inevitable signal thatrenewable energy is the way forward. FromSudan to the Falkland Islands, the South ChinaSeas to the Arabian Gulf, we see an intensifiedstruggle to secure valuable energy supplies,especially oil and gas deposits. Moreover, largeexisting oil and gas fields are being exhaustedrapidly and new fields are smaller and harder toexploit. This will only increase the probability ofconflict over oil and gas reserves. Around theworld, state actors associate energy assetswith wealth, power and prestige, which suggeststhat we are entering an era of intensifiedconflict over energy.

• A brewing war between Sudan and South

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Sudan: On April 10th, forces from the newlyindependent state of South Sudan occupiedthe oil center of Heglig, a town granted toSudan as part of a peace settlement that

allowed the southerners to secede in 2011.

Thenortherners, based in Khartoum, then mobilizedtheir own forces and drove the South Sudaneseout of Heglig. Fighting has since erupted allalong the contested border between the twocountries, accompanied by air strikes on townsin South Sudan. Although the fighting has notyet reached the level of a full-scale war,

international efforts to negotiate a cease-fireand a peaceful resolution to the dispute haveyet to meet with success.

This conflict is being fueled by many factors,including economic disparities between the twoSudans and an abiding animosity between thesoutherners (who are mostly black Africans and

Christians or animists) and the northerners(mostly Arabs and Muslims). But oil -- and therevenues produced by oil -- remains at theheart of the matter. When Sudan was dividedin 2011, the most prolific oil fields wound up inthe south, while the only pipeline capable oftransporting the south’s oil to internationalmarkets (and thus generating revenue)

remained in the hands of the northerners. Theyhave been demanding exceptionally high“transit fees” -- $32-$36 per barrel comparedto the common rate of $1 per barrel -- for theprivilege of bringing the South’s oil to market. When the southerners refused to accept suchrates, the northerners confiscated money theyhad already collected from the south’s oil

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exports, its only significant source of funds. Inresponse, the southerners stopped producingoil altogether and, it appears, launched theirmilitary action against the north. The situation

remains explosive.• Naval clash in the South China Sea: On April7th, a Philippine naval warship, the 378-footGregorio del Pilar, arrived at Scarborough Shoal,a small island in the South China Sea, anddetained eight Chinese fishing boats anchoredthere, accusing them of illegal fishing activities inFilipino sovereign waters. China promptly senttwo naval vessels of its own to the area,claiming that the Gregorio del Pilar washarassing Chinese ships in Chinese, not Filipinowaters. The fishing boats were eventuallyallowed to depart without further incident andtensions have eased somewhat. However,neither side has displayed any inclination to

surrender its claim to the island, and both sidescontinue to deploy warships in the contestedarea.

As in Sudan, multiple factors are driving thisclash, but energy is the dominant motive. TheSouth China Sea is thought to harbor largedeposits of oil and natural gas, and all thecountries that encircle it, including China and thePhilippines, want to exploit these reserves. Manila claims a 200-nautical mile “exclusiveeconomic zone” stretching into the South ChinaSea from its western shores, an area it calls theWest Philippine Sea; Filipino companies say theyhave found large natural gas reserves in thisarea and have announced plans to begin

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exploiting them. Claiming the many smallislands that dot the South China Sea (includingScarborough Shoal) as its own, Beijing hasasserted sovereignty over the entire region,

including the waters claimed by Manila; it, too,has announced plans to drill in the area. Despite years of talks, no solution has yet beenfound to the dispute and further clashes arelikely.

• Egypt cuts off the natural gas flow to Israel:On April 22nd, the Egyptian General PetroleumCorporation and Egyptian Natural Gas HoldingCompany informed Israeli energy officials thatthey were “terminating the gas and purchaseagreement” under which Egypt had beensupplying gas to Israel. This followed months ofdemonstrations in Cairo by the youthfulprotestors who succeeded in deposing autocratHosni Mubarak and are now seeking a more

independent Egyptian foreign policy -- one lessbeholden to the United States and Israel. Italso followed scores of attacks on the pipelinescarrying the gas across the Negev Desert toIsrael, which the Egyptian military has seemedpowerless to prevent.

Ostensibly, the decision was taken in responseto a dispute over Israeli payments for Egyptiangas, but all parties involved have interpreted itas part of a drive by Egypt’s new governmentto demonstrate greater distance from theousted Mubarak regime and his (U.S.-encouraged) policy of cooperation with Israel. The Egyptian-Israeli gas link was one of themost significant outcomes of the 1979 peace

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treaty between the two countries, and itsannulment clearly signals a period of greaterdiscord; it may also cause energy shortages inIsrael, especially during peak summer demand

periods.

On a larger scale, the cutoff suggestsa new inclination to use energy (or its denial) asa form of political warfare and coercion.

• Argentina seizes YPF: On April 16th, Argentina’s president, Cristina Fernández deKirchner, announced that her government wouldseize a majority stake in YPF, the nation’slargest oil company. Under President Kirchner’splans, which she detailed on national television,the government would take a 51% controllingstake in YPF, which is now majority-owned bySpain’s largest corporation, the energy firmRepsol YPF. The seizure of its Argentineansubsidiary is seen in Madrid (and otherEuropean capitals) as a major threat that must

now be combated.

Spain’s foreign minister,José Manuel García Margallo, said thatKirchner’s move “broke the climate of cordialityand friendship that presided over relationsbetween Spain and Argentina.” Several dayslater, in what is reported to be only the first ofseveral retaliatory steps, Spain announced thatit would stop importing biofuels from Argentina,

its principal supplier -- a trade worth nearly $1billion a year to the Argentineans.

As in the other conflicts, this clash is driven bymany urges, including a powerful strain ofnationalism stretching back to the Peronist era,along with Kirchner’s apparent desire to boosther standing in the polls. Just as important,

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however, is Argentina’s urge to derive greatereconomic and political benefit from its energyreserves, which include the world’s third-largestdeposits of shale gas. While long-term rival

Brazil is gaining immense power and prestigefrom the development of its offshore “pre-salt”petroleum reserves, Argentina has seen itsenergy production languish. Repsol may not beto blame for this, but many Argentineansevidently believe that, with YPF undergovernment control, it will now be possible toaccelerate development of the country’s

energy endowment, possibly in collaborationwith a more aggressive foreign partner like BPor ExxonMobil.

• Argentina re-ignites the Falklands crisis: At an April 15th-16th Summit of the Americas inCartagena, Colombia -- the one at which U.S.Secret Service agents were caught fraternizing

with prostitutes -- Argentina sought freshhemispheric condemnation of Britain’scontinued occupation of the Falkland Islands(called Las Malvinas by the Argentineans). Itwon strong support from every country presentsave (predictably) Canada and the UnitedStates. Argentina, which says the islands arepart of its sovereign territory, has been raising

this issue ever since it lost a war over theFalklands in 1982, but has recently stepped upits campaign on several fronts -- denouncingLondon in numerous international venues andpreventing British cruise ships that visit theFalklands from docking in Argentinean harbors. The British have responded by beefing up theirmilitary forces in the region and warning the

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Argentineans to avoid any rash moves.

When Argentina and the U.K. fought their warover the Falklands, little was at stake savenational pride, the stature of the country’srespective leaders (Prime Minister MargaretThatcher vs. an unpopular military junta), and afew sparsely populated islands. Since then, thestakes have risen immeasurably as a result ofrecent seismic surveys of the waterssurrounding the islands that indicated theexistence of massive deposits of oil and naturalgas. Several UK-based energy firms, includingDesire Petroleum and Rockhopper Exploration,have begun off-shore drilling in the area andhave reported promising discoveries. Desperate to duplicate Brazil’s success in thedevelopment of offshore oil and gas, Argentinaclaims the discoveries lie in its sovereignterritory and that the drilling there is illegal; the

British, of course, insist that it’s their territory.

No one knows how this simmering potentialcrisis will unfold, but a replay of the 1982 war --this time over energy -- is hardly out of thequestion.

• U.S. forces mobilize for war with Iran: Throughout the winter and early spring, itappeared that an armed clash of some sortpitting Iran against Israel and/or the UnitedStates was almost inevitable. Neither sideseemed prepared to back down on keydemands, especially on Iran’s nuclear program,and any talk of a compromise solution wasdeemed unrealistic. Today, however, the risk ofwar has diminished somewhat -- at least

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through this election year in the U.S. -- as talkshave finally gotten under way between themajor powers and Iran, and as both haveadopted (slightly) more accommodating

stances.

In addition, U.S. officials have beentamping down war talk and figures in the Israelimilitary and intelligence communities havespoken out against rash military actions. However, the Iranians continue to enrichuranium, and leaders on all sides say they arefully prepared to employ force if the peacetalks fail.

For the Iranians, this means blocking the Straitof Hormuz, the narrow channel through whichone-third of the world’s tradable oil passesevery day. The U.S., for its part, has insistedthat it will keep the Strait open and, ifnecessary, eliminate Iranian nuclear capabilities. Whether to intimidate Iran, prepare for the real

thing, or possibly both, the U.S. has beenbuilding up its military capabilities in the PersianGulf area, deploying two aircraft carrier battlegroups in the neighborhood along with anassortment of air and amphibious-assaultcapabilities.

One can debate the extent to whichWashington’s long-running feud with Iran isdriven by oil, but there is no question that thecurrent crisis bears heavily on global oil supplyprospects, both through Iran’s threats to closethe Strait of Hormuz in retaliation forforthcoming sanctions on Iranian oil exports,and the likelihood that any air strikes on Iraniannuclear facilities will lead to the same thing.

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Either way, the U.S. military would undoubtedlyassume the lead role in destroying Iranianmilitary capabilities and restoring oil trafficthrough the Strait of Hormuz. This is the

energy-driven crisis that just won’t go away.Special report on Renewable Energy

The special report on Renewable Energy by theIntergovernmental Panel on Climate Changereport summarizes the findings of over 120researchers on the potential for renewableenergy usage by mid century. The six renewableenergy technologies reviewed are: bio-energy,solar energy, geothermal energy, hydropower,ocean energy and wind energy. Four in-depthscenarios are analyzed to show a range ofpossibilities. The study's most optimisticconclusion is that "close to 80 percent of theworld’s energy supply could be met by

renewables by mid-century if backed by theright enabling public policies." The mostpessimistic conclusion is that renewables wouldaccount for only 15 percent of total energy in2050, in line with its present share.To read the Summary for Policy makers, clickhere. To read the Full Report, click here.

Case studies

Germany

Germany has taken a bold step towards greenenergy by moving away from nuclear energy torenewable energy. Ambitious targets have beenset for renewable energy to take up 35% of the

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energy mix by 2020.Many solutions, such as subsiding wind andsolar energy and shifting costs to the largestelectricity consumers, have been explored. The

clock is ticking for the German EnvironmentMinister to right the biggest project hisgovernment has undertaken, and set anexample for other states to make the switch togreen energy.

Having appreciated Germany’s active steps,looking closely on its implementation reveals a

different picture.

The German Chancellor Angela Merkelannounced her aim to curb the renewableenergy subsidies so that it can afford toupgrade the power grid and lower the pressureon the rising electricity prices. According to the

Associated Press, Merkel announced today a Uturn in the German renewable energy policy asshe announced that those installing new solar,wind or biomass power sources must“participate more in financing the cost of(electricity) grid expansion.”

At this point we should emphasise that in 2012,the power exports in Germany recorder thebest four year performance in 2012, mainly dueto the robust renewable energy industry. According to the German Federal StatisticsOffice (Destatis), Germany exported 66.6terawatt hours (TWh) of electrical power. Thesuccess of the German renewable energy policy

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was challenged by the industry association forlarge corporate and industrial users inGermany, VIK.

The industry association had stressed that windand solar utilities frequently generatedelectricity when there was no immediatedemand and that eco-friendly power waspushing gas-driven plants out of the market,although these were still needed when therewasn't any wind or solar sources. Today, Merkel announced that the expansion inrenewable energy must be brought in line withthat of the German grid, vowing to overhaulsubsidies that total €18 billion annually afterelections in September.

Apart from the energy grid problems, theGerman magazine Spiegel had reported thatthe German renewable energy policy didn’tforesee the upcoming cost explosion. It is wellknown, that solar and wind farms are a longway from being able to produce energy atprices similar to coal-fired or nuclear power

plants.

Moreover, there are also high costs associatedwith grid expansion and electricity storagefacilities as well as for backup power plants,which take up the slack when the sun isn'tshining or the wind isn't blowing.

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India

Use of solar power in India is beginning to takeoff, from a negligible level of 140 MW today

toward a government goal of reaching 20,000MW by the year 2020 – the same order ofmagnitude as Germany, currently the largestuser of solar power. The principal factorspropelling this growth have been largegovernment subsidies along with a sharp dropin solar panel costs, by 30 to 40% in 2011, to lessthan $1 per watt. Although in India coal-

generated power is still far cheaper than solarpower, solar costs are now competitive with oil-based power.

Solar power is a clean energy source. But in thisarid part of northwest India it can also be adusty one.

Every five days or so, in a marriage of low andhigh tech, field hands with long-handled dustmops wipe down each of the 36,000 solarpanels at a 63-acre installation operated by Azure Power. The site is one of the biggestexamples of India’s ambitious plan to use solarenergy to help modernize its notoriouslyunderpowered national electricity grid, and

reduce its dependence on coal-fired powerplants.

Azure Power has a contract to provide solar-generated electricity to a state-governmentelectric utility. Inderpreet Wadhwa, Azure’s chiefexecutive, predicted that within a few yearssolar power would be competitive in price with

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India’s conventionally generated electricity.

“The efficiency of solar technology will continueto increase, and with the increasing demand insolar energy, cost will continue to decrease,” Mr.Wadhwa said.

Two years ago, Indian policy makers said that bythe year 2020 they would drastically increasethe nation’s use of solar power from virtuallynothing to 20,000 megawatts — enoughelectricity to power the equivalent of up to 3.3million modern American homes during daylight

hours when the panels are at their mostproductive. Many analysts said it could not bedone. But, now the doubters are taking backtheir words.

Dozens of developers like Azure, because ofaggressive government subsidies and a largedrop in the global price of solar panels, are

covering India’s northwestern plains — includingthis village of 2,000 people — with gleamingsolar panels. So far, India uses only about 140megawatts, including 10 megawatts used by the Azure installation, which can provide enoughpower to serve a town of 50,000 people,according to the company. But analysts saythat the national 20,000 megawatt goal is

achievable and that India could reach thosenumbers even a few years before 2020.

“Prices came down and suddenly things werepossible that didn’t seem possible,” said TobiasEngelmeier, managing director of Bridge toIndia, a research and consulting firm based inNew Delhi. Chinese manufacturers like Suntech

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Power and Yingli Green Energy helped drive thedrop in solar panel costs. The firms increasedproduction of the panels and cut costs this yearby about 30 percent to 40 percent, to less than

$1 a watt.Developers of solar farms in India, however,have shown a preference for the moreadvanced, so-called thin-film solar cells offeredby suppliers in the United States, Taiwan andEurope. The leading American provider to Indiais First Solar, based in Tempe, Ariz.

India does not have a large solar manufacturingindustry, but is trying to develop one and Chinais showing a new interest in India’s growingdemand. China’s Suntech Power sold the panelsused at the Azure installation, which opened inJune.

Industry executives credit government policies

with India’s solar boom, unusual praise becausebusinesses usually deride Indian regulations asKafkaesque.

Over the last decade, India has opened thestate-dominated power-generating industry toprivate players, while leaving distribution andrate-setting largely in government hands.

European countries heavily subsidize solarpower by agreeing to buy it for decades at atime, but the subsidies in India are lower andsolar operators are forced into to greatercompetition, helping push down costs.

This month, the government held its secondauction to determine the price at which itsstate-owned power trading company — NTPC

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Vidyut Vyapar Nigam — would buy solar-generated electricity for the national grid. Theaverage winning bid was 8.77 rupees (16.5cents) per kilowatt hour.

That is about twice the price of coal-generatedpower, but it was about 27 percent lower thanthe winning bids at the auction held a year ago.Germany, the world’s biggest solar-power user,pays about 17.94 euro cents (23 Americancents) per kilowatt hour.

India still significantly lags behind European

countries in the use of solar. Germany, forexample, had 17,000 megawatts of solar powercapacity at the end of 2010. But India, whichgets more than 300 days of sunlight a year, is amore suitable place to generate solar power. And being behind is now benefiting India, aspanel prices plummet, enabling it to spend farless to set up solar farms than countries thatpioneered the technology.

In its solar power auctions, moreover, NTPC isnot creating open-ended contracts. The lastauction, for example, was for a total of only 350megawatts, which will cap the government’scosts. The assumption is that the price of solarpower will continue to decline, eventually

approaching the cost of electricity generatedthrough conventional methods.

Most Indian power plants are fueled by coal andgenerate electricity at about 4 rupees (7.5cents) per kilowatt hour — less than half ofsolar’s cost now. In this month’s auction, therecent winning bids were comparable to what

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India’s industrial and commercial users pay forelectricity — from 8 to 10 rupees. And solar’scosts are competitive with power plants andback-up generators that burn petroleum-

based fuels, whose electricity costs about 10rupees per kilowatt hour.

“At least during daytime, photovoltaic panels willcompete with oil-generated electricity morethan anything else” in India, said Cédric Philibert,a senior analyst at the International Energy Agency in Paris. “This comparison is becomingbetter and better every month.”

In addition to the federal government, severalof India’s states like Gujarat, where Khadoda islocated, are also buying power at subsidizedrates from solar companies like Azure Power.

Analysts do not expect India’s solar rollout to beproblem free. They say some developers have

probably bid too aggressively in the federalauctions and may not be able to build theirplants fast or cheap enough to survive.Consequently, or because their bids werespeculative, some developers are trying to selltheir government power agreements to thirdparties, analysts say, even though such flippingis against the auction rules.

Relevant international treaties and policies:

1.Kyoto Protocol to the UN FrameworkConvention on Climate Change (Article 2)

2.Energy Charter Protocol on energy efficiencyand related environmental aspects

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3.Treaty establishing the Energy Community

4.Protocol on the implementation of the Alpine

Convention of 1991 in the field of energy

5.Energy Policy of the EU

6.Energy Community

7.Programme of Action for the SustainableDevelopment of Small Island Developing States

(Chapter7 - Energy resources)

Concluding remarks

The above mentioned sub-topics are expectedto be discussed by the delegates as they coveralmost all aspects of the agenda expected bythe EB. We also request you to address the

following questions during committee:

• How much energy does your country produceand consume each year?

• Is the demand going to increase?

• How prepared is your country to meet theincrease?

• Is your country self-sufficient for its energyrequirements or does your country importmajority of its electrical & transportationenergy requirements? • Is there a subsidy on renewable/non-

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renewable energy production? • How does your country support renewablesources of energy?

• Does your country have potential forproducing renewable sources of energy? •Does your country support Nuclear Energy? Ifso, does it import/produce nuclear energy?Does it agree to all IAEA safeguards?• How has Rio, Agenda 21 and Rio+20 affected

your country’s energy policy?

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Reserve Agenda

The role of NGOs and Green

businesses in sustainabledevelopment

Introduction

Green business, is an enterprise to be that hasminimal negative impact on the global or localenvironment, community, society, or economy—a business that strives to meet the triplebottom line. A sustainable business is anyorganization that participates inenvironmentally friendly or green activities toensure that all processes, products, andmanufacturing activities adequately addresscurrent environmental concerns while

maintaining a profit. In other words, it is abusiness that “meets the needs of the presentworld without compromising the ability of thefuture generations to meet their own needs.” Itis the process of assessing how to designproducts that will take advantage of the currentenvironmental situation and how well acompany’s products perform with renewable

resources.

A non-governmental organization (NGO) isbasically a legally constituted organization whichis operated by legal persons who actindependently from any government. In thosecases where the NGOs are funded partially orcompletely by governments without the motive

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of earning profit from activities, the NGObarred the government representatives fromany membership in the organization in order tosustain its non-governmental status. The term

is used for those organizations which have widersocial target with political aspects. However, anyNGO cannot be blatantly political organizations.The term “non-governmental organization” hasno agreed legal definition and these are termedas “civil society organizations” in many jurisdictions.

Often, NGO’s & sustainable businesses haveprogressive environmental and human rightspolicies. In general, NGO’s and Businesses aredescribed as green if they match the followingfour criteria:

•Incorporates principles of sustainability intoeach of its business decisions.

•Supplies environmentally friendly products orservices that replaces demand for non greenproducts and/or services.•Greener than traditional competition.•Has made an enduring commitment toenvironmental principles in its operations.

Background

Non-governmental organizations (NGOs) haveplayed a major role in pushing for sustainabledevelopment at the international level.Campaigning groups have been key drivers ofinter-governmental negotiations, ranging fromthe regulation of hazardous wastes to a globalban on land mines and the elimination of

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slavery. But NGOs are not only focusing theirenergies on governments andintergovernmental processes. With the retreatof the state from a number of public functions

and regulatory activities, NGOs have begun tofix their sights on powerful corporations - manyof which can rival entire nations in terms of theirresources and influence. Aided by advances ininformation and communications technology,NGOs have helped to focus attention on thesocial and environmental externalities ofbusiness activity. Multinational brands have

been acutely susceptible to pressure fromactivists and from NGOs eager to challenge acompany's labour, environmental or humanrights record. Even those businesses that donot specialize in highly visible branded goodsare feeling the pressure, as campaignersdevelop techniques to target downstreamcustomers and share holders. There are many

visible manifestations of this shift. One hasbeen the devotion of energy and resources bycompanies to environmental and social affairs.Companies are taking responsibility for theirexternalities and reporting on the impact oftheir activities on a range of stake holders. Norare companies merely reporting; many arestriving to design new management structureswhich integrate sustainable developmentconcerns into the decision-making process.

Much of the credit for creating these trends canbe taken by NGOs. But how should the businessworld react to NGOs in the future? Shouldcompanies batten down the hatches and girdthemselves against attacks from hostile critics?

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Or should they hold out hope that NGOs cansometimes be helpful partners?For thosebusinesses willing to engage with the NGOcommunity, how can they do so? The term

NGO may be a ubiquitous term, but it is used todescribe a bewildering array of groups andorganizations - from activist groups 'reclaimingthe streets' to development organizationsdelivering aid and providing essential publicservices. Other NGOs are research-drivenpolicy organizations, looking to engage withdecision-makers , Although it is often assumed

that NGOs are charities or enjoy non-profitstatus, some NGOs are profit-makingorganizations such as cooperatives or groupswhich lobby on behalf of profit-driven interests.For example, the World Trade Organization'sdefinition of NGOs is broad enough to includeindustry lobby groups such as the Associationof Swiss Bankers and the International

Chamber of Commerce.

Such a broad definition has its critics. It is morecommon to define NGOs as those organizationswhich pursue some sort of public interest orpublic good, rather than individual orcommercial interests.Even then, the NGOcommunity remains a diverse constellation.Some groups may pursue a single policyobjective - for example access to AIDS drugs indeveloping countries or press freedom. Otherswill pursue more sweeping policy goals such aspoverty eradication or human rightsprotection.However, one characteristic thesediverse organizations share is that their non-profit status means they are not hindered by

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short-term financial objectives. Accordingly,they are able to devote themselves to issueswhich occur across longer time horizons, suchas climate change, malaria prevention or a

global ban on landmines. Public surveys revealthat NGOs often enjoy a high degree of publictrust, which can make them a useful - but notalways sufficient - proxy for the concerns ofsociety and stakeholders. The NGO sectoreffectively works towards uplifting the socio-economic status of the poor.

However, for a significant impact in the presentera of liberalisation and globalisation whereinmarket forces adopt a key role, it becomesessential for the NGO sector to take a lead inhelping poor fight the challenges posed by thesystem. NGOs can help the poor by providingaccess to the system, information on marketopportunities, training facilities, information on

sources of credit, etc. Keeping this in view, EDIconceptualised and implemented a uniquetraining intervention for NGO capacity building.This training programme is expected tosensitise the sector and develop skills in theNGO officials for better management of theorganisation and developmental initiatives.

Through this unique intervention, supported byFriedrich-Naumann-Stiftung (FNSt), EDI hastrained more than 100 chief executives of NGOsand helped them institutionalise the process ofsustainable development.Non-GovernmentOrganisations (NGOs) are playing a very criticalrole in the process of managing developmentinitiatives of various kinds at the rural level. Even

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the Government of India has recognised thecritical role of the NGOs in the Five - Year Plans,as they have commitment, credibility with themasses and professional approach to the

people's issues unlike the Charitableorganisations of earlier days. However, despitetheir good intentions, a large number of NGOsfind it difficult to sustain in the long run i.e.sustainability of organisations as well assustainability of projects.It has also beenobserved in various research reports anddocuments that most of the projects

undertaken by the NGOs no longer remainviable once the donor funding is withdrawn. Thishas created a sort of dependency syndrome.This in turn leads to somewhat perennialdependency of the people on the NGOs as theso called 'peoples' participation' is morebecause of the availability of funds rather thanfelt needs.

However, in the past few years the donoragencies are also becoming aware of this factand are becoming selective in funding projectsand NGOs. Sometime it leads to a mismatchbetween the people's needs and availability ofdonor funds. While the funds for developmentalinitiatives are becoming scarce, thedependence of NGOs on such funds is yet toreduce. Unless the NGOs are developed,prepared to face these new emerging trendsand able to keep pace with the turbulence, itwould be difficult for them to sustain. Moreover,quite a few NGOs have been operating withoutproper direction, organisational development,good management practices and specific

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mission. A few areas like decision-making forright kind of developmental intervention,managing socio-economic change and attaining

sustainability,

remain the 'Achillesheel' for them.

All this, more oftenthan not, getsreflected inimplementation ofthe developmental

projects leading tobe ineffective. It is,therefore, arguedthat a short termtraining programmefor strengtheningthe managerialcapabilities of NGOs

will go a long way inimproving theirperformance andeffectivenesssignificantly. Hence,EDI has designed

and organises 6-day training programmes forthe senior level functionaries of NGOs forimproving their managerial capabilities.

Current Situation

Global politics has gone through a drastic shiftresulting in the growth of non-governmentalagencies and civil bodies. The numbers of NGOshave grown dramatically, and NGOs have

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become a powerful player in global politics,facilitated in part by the increasing funding bypublic and private grants.

NGOs have moved from being in thebackground to having a presence in the midstof world politics and, as a result, are exertingtheir influence and power in policy making atglobal scale. Some organizations such as Amnesty International and Greenpeace haveeffectively become NGO brands and havehelped make NGOs a household word. At the

1992 Earth Summit in Rio, there was a largeNGO presence. While 1,400 NGO memberswere involved in the official proceedings,another 17,000 NGO members staged analternative forum to the meeting.

Now that their place in world politics is firmlyestablished, the majority of NGOs have moved

from street protests to a policy making role inthe boardrooms of the United Nations, WTO,World Bank, and the IMF. One of the majorstrengths of NGOs is their ability to maintaininstitutional independence and politicalneutrality.

The major advantages that NGOs bring are“flexibility, ability to innovate, grass-rootsorientation, humanitarian versus commercialgoal orientation, non-profit status, dedicationand commitment, and recruitment philosophy”.NGOs have played a significant role inpromoting sustainable development at theinternational level. NGOs are going beyond theirprimary focus on governments and starting to

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address large corporations.

Many corporations are taking responsibility fortheir actions and are starting to report on the

impact of their activities. A secondary shift ismore heartening: Many companies havedesigned management structures thatintegrate sustainable development concerns.

Many MNCs have started the transformation toGreen businesses and are constantly looking forbetter technology and innovative methods to

reduce their “footprint” and contribute towardsa safer and healthier environment.An increasingpart of company’s revenue is being dedicatedto environmental challenges.

International Agreements and Agencies

Agreements

UN Charter (Chapter 10, Article 71)Economic and Social Council Resolution 1296(XLIV) of 23 May 1968,1993/80 of 30 July1993, 1996/31 of 25 July 1996 Agenda 21 (Chapter 27)Rio 20+ (53)

International Agencies:The Committee on Non-GovernmentalOrganizationsUnited Nation Department of Public Information(UN DPI)United Nations Department of Economic andSocial Affairs (DESA)The Committee on Non-Governmental

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OrganizationsUnited Nations Non-Governmental LiaisonService (UN-NGLS)United Nations Global Compact

Contact Us

Akshat Jain - Chair - +91-96000-67715Udhav Krishna - Vice Chair - +91-8939348928Dhanush Naveen - +91-9789955688

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