February 2016, Edition 5

Asian Council on Water, Energy and Environment

Confederation of Asia-Pacific Chambers of Commerce and Industry

INSIDE

Climate change, environmental-sustainability key topics at the ACWEE breakout session in Hong Kong

36 countries launch world alliance for geothermal energy

Food chain collapse predicted in world’s oceans

Pacific nations plead for help for islanders when ‘calamity’ of climate change hits

Solar power capacity in India to reach 75GW by 2022, report says

Indian airport becomes world’s first to run entirely on solar energy

Taiwan industry executives optimistic about solar energy market

To build greener economy, Bhutan wants to go organic by 2020

Global warming: What exactly is it?

Japan pushes clean-coal technology; hurdles abound

Nepal needs Bangladesh fuel link

Message from the Chairman Thisisourfiftheditionof theAsiaCouncilonWater,EnergyandEnvironment(ACWEE)newsletter. In recent years, the notion of the Water, Energy, Foodand Climate nexus has gained immense traction in the domain of naturalresourcegovernance.Understandingtheinterlinkages,criticalthinking on the new security convergence in this nexus is a must.Thereisalsoaneedtounderstandtheimplicationsof thenexusforpolicy making and natural resources management and address thechallengestherein. Withthegrowingdesire todiversifyenergyproductiontorenewablerealm,AsiaPacificcountriesshowgreatpromise.Chinahasanimpressivefive-yearoutlookforadditionalwindandsolarinstallation,andisexpectedtoraiseits2020solartargetto150GW(from100GW)andwindtargettobetween250GWand280GW(from200GW)tofillthesupplygapforecastbyexpectationsthatitwillmissitsnuclearandhydrotargets.Renewablesourcesaccountedfor16.4%of Chinesepowerin2014,areexpectedtoreach22%in2020. SolarwillcontinueitsgrowthacrossSouthEastAsiaprovidedPVpricescontinueto stay competitive. Given their proximity to the equator, wind will not be a significantcontributortocountriesinSouthEastAsiabutwillcontinuetoplayanimportantroleinNorthAsia.Largedamhydropowerplantsprovidealargecapacityof hydroelectricityintheregion.Hydrowillcontinuetodrivetheinstalledcapacityof renewableenergyparticularlyinLaos,MyanmarandChina, EnergydemandisprojectedtoalmostdoubleintheAsiaandPacificregionby2030.Thereisanurgentneedforinnovativewaystogeneratepowerinasocially,economically,andenvironmentallysustainablemanner.Asenergydemandincreasesyearafteryear,thereisaneedtopromotescalingupof investmentsinrenewableenergyintheAsiaPacificregion.Thereisalsoaneedtoraiseawarenessanddevelopabetterunderstandingof howwaterislinkedtoeconomicgrowthacrossanexusof issuesandtomakeclear thewatersecuritychallengewefaceif abusinessasusualapproachtowatermanagementismaintained.

This issue presents before you a rich assortment of articles. We believe that you would find them useful and informative. You are invited to contribute articles for the future editions. Please email the CACCI Secretariat at cacci@cacci.biz for more information.

Mr. Gyanendra Lal PradhanExecutiveChairman,HydroSolutions

Chairman,SAARCCCICouncilonClimateChange,EnergyandWaterResourcesChairman,EnergyCommittee,Federationof NepaleseChambersof CommerceandIndustry

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Climate change andenvironmental sustainabilityare among the key topicsdiscussedattheAsianCouncil

on Water, Energy and Environment(ACWEE) breakout session in HongKongonOctober30,2015. Mr. Gyanendra Lal Pradhan,Chairman of the ACWEE fromNepal,whochairedandmoderatedthesession,reportedthatthesessionkickedoff withhisopeningremarksandbrief acknowledgment of the participants.This was followed by theme paperpresentationbyMr.Pradhan. Mr.Pradhaninhisthemepaperpresentation provided a snapshot of theenergyscenariointheAsiaPacificcountries. Appraising Asia Pacific asa rich region in natural resources, hepointedouttheregion’svulnerabilitytothe negative effects of climate changeandenvironmentalcalamities. He emphasized the need torecognize the fact that most of theenvironmental issues of the Asia

Pacificregionareinextricablylinked,and working to ameliorate one willoften have added benefits for theothers.Headvocatedforcollaborativeapproaches to effective resourceallocation and management in orderto minimize environmental costsand reiterated the need to provideincentives to businesses and localcommunities to achieve sustainableuseof resources. Mr. Pradhan’s presentationwasfollowedbypresentationsontopicscovering environmental sustainabilityin the region by selected key speakersfromCACCImembercountries. ThekeyspeakersincludedMr. Albert Poon, Rotary Water Projectfrom Hong Kong and Mr. Jesus G. Reyes,AssistantVicePresident,NestlePhilippines Inc. and Co-Chair, PCCIEnvironmentCommittee. Mr.Poonsharedhisexperiencesonanumberof waterserviceprojectsinChinaandpresentedonhowtechniquessuchas rainwaterharvestingcanhelp

provide an independent water supplyto supplement themain supplyduringwater restrictions or in areas of waterdeficiencies. He emphasized on theapplication of rainwater harvestingin urban water system to provide asubstantialbenefitforbothwatersupplyandwastewatersubsystemsbyreducingthe need for clean water in waterdistribution system. He emphasizedontheneedtoexplorewaterresourcesfor communities citing examples of rotaryprojectsthathaveprovidedcleandrinkingwatertoschools. Mr. Reyes presented theissues of environmental sustainabilitydrawing experiences of Philippinebusinesses.Healsopresentedhisviewson the experience and policies of thePhilippines with respect to climatechange and mitigating its impacts ontheenvironmentandonbusiness. The next meeting of theACWEE will be held on the sidelinesof the 30th CACCI Conference onNovember2016inTaipei,Taiwan.

Climate change, environmental-sustainability key topics at the ACWEE breakout session in HK

(Top-left) ACWEE Chairman Mr. Gyanendra Pradhan sits down with invited speakers during the open forum. (Top-right) Participants join the speakers for a souvenir photo after the ACWEE Breakout Session in Hong Kong on October 30, 2015. (Bottom left to right) ACWEE Chairman Mr. Pradhan, Rotary Water Project head Mr. Albert Poon, and Nestle Philippines Assistant Vice President Mr. Jesus G. Reyes make their presentations on water, energy and environment.

Thirty-six countries onDecember 7 gave the officialstart to an initiative topromote geothermal energy

in developing economies as a cleaneralternativetooil,gasandcoal. The Global GeothermalAlliance, launched on the sidelines of the UN climate talks in Le Bourget,aimsatasixfoldincreaseingeothermalelectricityproductionanda triplingof geothermal-derivedheatingby2030. At present, geothermal isgrowing modestly, at three to fourpercentperyear,providing12gigawattsof electricityannually. But this is just a fraction of its overall potential of 100 gigawatts,according to the industry. Only 24out of 90 countries with geothermalpotentialactuallyusetheresource.

The alliance said its memberswill seek to overcome “politicaluncertainty” about geothermal andstrengthentheindustry’sskillsbase. The Global GeothermalAlliance initiative was sketched out inSeptember2014atasummitorganizedby UN Secretary General Ban Ki-moon. Membersincludecountriesonthermal“hotspots”inAfrica,SoutheastAsiaandLatinAmerica,rangingfromKenya and Tanzania to Malaysia, thePhilippinesandGuatemala. Geothermal energy entailsdrilling into hot rock and using theheated water to generate electricity orprovideheatingforcommunities. It is considered exceptionallyclean, as the heat extraction processrequires far loweremissionsof carbon

dioxide (CO2) compared with fossilfuels. It is also deemed sustainable,giventhealmostlimitlesssourceof theenergy, although individual wells cancooldownorrunoutof water. Obstaclestogeothermalarethehighcostof drillingand risks entailedintheexplorationphase. “Geothermal energydevelopmentparticularlyindevelopingcountries faces important challenges,”thealliancesaid. “Due to risks related togeologicaldrillingduringtheexplorationphase,alongwith theassociatedcosts,financingtheearlystageof theprocessis limited to investors that understandand accept the possible associatedrisks.”Agence France Presse

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36 countries launch world alliance for geothermal energy

Food chain collapse predicted in world’s oceans

Theworld’soceansareteemingwith life, but rising carbondioxideemissionscouldcauseacollapseinthemarinefood

chainfromthetopdown,researchersinAustraliasaidonOctober12,2015. The first-of-its-kind globalanalysisof marineresponsestoclimatechangeforecastsagrimfutureforfish. Marine ecologists from theUniversity of Adelaide reviewed morethan 600 published studies on coralreefs, kelp forests, open oceans, andtropicalandarcticwaters. Theirmeta-analysis,publishedin the Oct. 12 edition of the journalProceedingsof theNationalAcademyof Sciences, showed that oceanacidification and warming will cutdownonthediversityandnumbersof variouskeyspecies. “This ‘simplification’ of ouroceanswillhaveprofoundconsequencesforourcurrentwayof life,particularlyfor coastal populations and those thatrelyonoceansforfoodandtrade,”saidassociateprofessorandco-author IvanNagelkerken.

Veryfeworganismsareexpectedtobeable to adjust to warmer waters andacidification, with the exception of microorganisms,whichareexpectedtoincreaseinnumberanddiversity. Buttheincreaseinthesmallestplankton is not expected to translateintomorezooplanktonandsmall fish,meaningbiggerfishwillstruggletofindenoughfoodtoeat. “With higher metabolic ratesin the warmer water, and therefore

a greater demand for food, there isa mismatch with less food availablefor carnivores — the bigger fish thatfisheries industries are based around,”saidNagelkerken. “Therewillbeaspeciescollapsefromthetopof thefoodchaindown.” Oysters,musselsandcoralsarealsoexpectedtotakeahitfromglobalwarming, which will further harm theenvironmentforreef fish.Agence France Presse

Pacific island nations havepleadedwithwealthycountriesto help their people migrateand find work if they are

forcedtoflee theirhomelandsbecauseof theconsequencesof climatechange.Acoalitionof low-lyingislandnationssaid moving people because of risingsealevels,stormsandruinedagriculturewasalastresort,butthe“calamity”of climate change required industrialisedcountriestodeviseaplan. In a joint statement after asummit in Kiribati the Pacific nations– Fiji, Kiribati, Tuvalu and Tokelau– said they were “gravely concernedover the lack of effective internationalresponsetoclimatechange”thatposed“major existential challenges” to theirpopulationsandcultures. They repeated calls for aninternational body to be set up tocoordinate population movementcaused by climate change. Thecreationof suchabodywasincludedinanearlydraftof aUNagreementtobenegotiatedatclimatetalksinParisinDecemberbuttheideawasdroppedlast week. Australia opposed it,although countries including Britain,the US and France were open to theconcept. Thecountriescalledforfundingforhealthandeducationprograms,andaid to raise buildings above predictedsealevelincreasesandsafeguardwatersuppliesfromsaltwaterintrusion.

Wealthy nations should“prepareourpeoplefor‘migrationwithdignity’,capableof contributingtoothernations’ economies and developmentprocesses as skilled migrant workers”,thePacificleaderssaid. Developing nations haveaccess to the UN-administered greenclimatefundtohelpadapttoormitigateclimatechange.In2009nationsagreedat Copenhagen to provide $100bn in“climate finance” although this targethas not been met and will be debatedagainattheParistalks. Thereisnobodythatoverseestheorderlymovementof peoplebecauseof climate change impacts. The UNrefugeeconventionappliesonlytothosefleeing persecution, with little appetiteamongtherichestnationstoexpanditsdefinitiontoinclude“climaterefugees”–amidpredictionsthatupto250millionpeoplemaybedisplacedworldwideby2050. Peoplelivingoncoralatollsinthe Pacific are considered particularlyvulnerabletoasealevelthatisrisingby1.2cmayear,fourtimesfasterthantheglobalaverage.Coastalerosion,taintedwater supplies and failing crops havepromptedcommunitiestomoveinlandortootherislands. Pacific leaders have taken anincreasinglystridenttoneincallingforaction,withAnoteTong,thepresidentof Kiribati, recently calling Australia“very selfish” for its continued

commitmenttocoalmining. Peter Christian, the presidentof Micronesia, toldaUNgatheringinNewYorkearlierthismonth:“Ispeakasanislanderwhohaswalkedtheshoresof manyatollislands,wheretherewasoncesandybeachesandcoconuttrees. “Nowtherearenone.Iamtoldthis will continue. We must becomemorecohesiveinouractionstobringauseful conclusion to help mitigate thethreatof sinkingislandsandpreventthepotential genocide of Oceanic peoplesandcultures.” The chief executive of Greenpeace Australia, David Ritter,saidAustraliashoulddomoregivenitscloutintheregion. “Australiaistherichest,largestcountryintheregion,sotositbackandsay we are doing enough is patheticreally,” said Ritter, who attended theKiribatisummit. “PeopleinthePacificareverypolitebutprivatelytheviewof Australiaisveryclear:thisisacountrynotdoingenough.There’saviewthatAustraliaisputtingcoalaheadof people. “At the moment, if youare forced out of your home due toinundationyousimplybecomestateless.There’s no mechanism to ensure thatthese people won’t fall through thecracks. When you go to Kiribati andseepeople tryingtorepairsandbaggedseawalls,youcanseewhythisisaliveissueforthem.”The Guardian

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Pacific nations plead for help for islanders when ‘calamity’ of climate change hits

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Solar power capacity in India to reach 75GW by 2022, report says

Solar will account for morethanafifthof India’sincreaseinelectricitydemandby2022as installed capacity reaches

75 gigawatts, according to a researchreport. Helped by a $50 billion gridupgradeandnewinstallations,India’ssolar capacity will be capable of delivering110terawatt-hours,or22%,of required power increase withinsevenyears,accordingtoareportfromthe Institute for Energy Economicsand Financial Analysis (IEEFA), aCleveland-basedresearcher. Net electricity demand inIndia,poweredbyaneconomicgrowthrateof 7%,islikelytoincreaseby500terawatt-hours by fiscal 2022—60%of estimated requirements last year,IEEFAestimates. A China-like expansion insolar installations is feasible forIndiainaperiodof severalyears,thereport said. China’s solar capacitysurged from less than 1 gigawattin 2010 to almost 33 gigawatts atthe end of last year, according to

data from Bloomberg new energyfinance. “India is replicatingGermany’s and China’s systematicelectricitysectortransformation,withthe added advantage that the costeffectiveness of this is accentuatedby the fact that the price of solarelectricity has dropped by 80% in

five years,” Tim Buckley, director of energyfinancestudiesatIEEFA,saidinapressrelease. India has about 37 gigawattsof green-energycapacity.Thecountryaimsforanalmostfivefoldexpansionto 175 gigawatts by 2022 at anestimated investmentof $200billion.Bloomberg�

Indian airport becomes world’s first to run entirely on solar energy

An Indianairport hasb e c o m ethe world’s

first to run entirely onsolar energy. CochinInternational Airport,in the south of India,inaugurated a massive45-acre solar plant onOctober6,2015. Theplant,madeup of 46,000 panels,will provide between50,000 to 60,000 unitsof electricity every day(totaling 12 megawattsof power alongside pre-existing solar panels), according to a

releasefromairportauthorities. It has been a long-running

project: the airport first installedpanelsontheroofofitsterminalin2013andhasgraduallyexpandedtheinitiative.Authorities hope the initiativewill reduce carbon emissions by300,000 tonnes over the next 25years. It follows the Indiangovernment’s announcement thatit intends to produce as much as100GW of solar power by 2022,up from the 4GW (gigawatts) itcurrently produces. It is hopedthat the innovation will not onlycontribute to India’s spirallingneedforpower,butalsofuelnewinvestments.

by�Rose�Troup�Buchanan,�Independent�UK

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The presidents of majorcorporations in the solarpower industry in Taiwanexpressedoptimismforfuture

growth, pointing to signs of recoverysince the United States imposed anti-dumping duties on Chinese mainlandandTaiwan. Company executivesgathered to share their perspectivesabout industry trends ahead of the2015 International PhotovoltaicExhibition-- jointly organisedby the Taiwan External TradeDevelopment Council (TAITRA),the Taiwan Photovoltaic IndustryAssociation (TPVIA) andSemiconductor Equipment andMaterials International (SEMI) -- atTaipeiNangangExhibitionHall1onOctober14-16,2015. PresidentandCEOof MotechIndustriesCo.,ChangPeng-heng, saidthe solar energy industry “is still at astageof infancy,butwehavebeenseeingconsistent growth.” Chang pointed toan increasing demand in China andemphasizedthecountry’scurrentstatusas the world’s largest market for solarenergy. “The21stcenturyisthecenturyof solarpower,”saidChang. Changstated thatTaiwan isagloballeaderintheproductionof solarbatteries. While supply and demandlevels have been stable, solar powercostscontinuetodecline. According to industryexecutives, the photovoltaicsindustry isstillheavily-subsidised--indicatingavulnerabilitytochanges

inenergypoliciesandgovernmentalplans to slash subsidies. “It is alsoan important national securityindustry, so there is a high degreeof governmental intervention,”said Chang, referring to industrychallengesatthepresent. In its ninth year, theexhibition will showcase industryforecasts and the latest advancesin technology. Visitors can expectto see more than 126 participatingcompanies -- including Neo SolarPower, Giga Solar Materials, WinWinPrecision,TSEC,AUO,GintungEnergy, Inventec, CSI Technology -- demonstrating their products andservices at 365 booths, according toexhibitioncoordinators. Exhibition staff said ahighlight of the event include paneldiscussions by 55 industry-leading

speakers, in forums that cover arange of topics, including sustainablearchitecture, low-carbon smart grids,innovative technology, measurementandreliability. Also, to facilitate meaningfulnetworking among visitors and helpthemgraspthelatestinformationaboutindustrytrends,theexhibitionfeaturesfive themed pavilions: “PhotovoltaicsSystems,”“EquipmentandMaterials,”“Tests and Certifications,” “HighConcentration Photovoltaics(HCPV)”, “Innovative TechnologyandProducts.” Recent surveys conductedby the International Energy Agency(IEA) indicated that the Asia-Pacificregionhasbeenthelargestcontributorto global solar photovoltaic installedcapacityfortwoconsecutiveyears.The China Post

Taiwan industry executives optimistic about solar

energy market

Solar industry CEOs pose for group photo after a panel discussion about current energy trends.

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Farmer Phub Zam, 55, is in ahurry. Monsoon rains havehither farminBhutan’sParovalley and Zam is rushing

to harvest her broccoli before crop isdamaged. “Of allmyvegetables,broccoliisthemostsoughtafter,”shesaid.“Eachkilogramsellsfor90rupees($1.40).” That’s15to30centsmorethanbroccoli imported from neighboringIndia.Zamgetsthehigherpricebecauseherproduceisgrownwithouttheuseof chemicals, making it healthier, moreflavorfulandmoreindemand. “IapplyorganicmanurethatIcompostrightathome,”shesaid.“Theimported vegetables do not taste sogood.” After decades of subsistencefarming, Zam went organic four yearsago. Now she grows 21 crops on her1.3-acrefarm—includinggrains,fruitsand vegetables — and sells them, aswellashomemadecompost, tohotels,localvendorsandnurseryowners. Sheearns40,000rupees($600)per month, three times more than shemadebefore,shesaid. Zam’s success is part of Bhutan’s plan to support sustainablefarmingasonekey tobuilda thriving“green”economy. In 2011, the governmentlaunched the National OrganicProgram, which aims to make thecountry’s agriculture 100 percentorganicby2020. By teaching farmers goodorganic farming practices and how toearn more money by growing organicproduce, and by providing financialsupport,Bhutanhopestoreducewaste,decrease the country’s dependence onimported food, and ensure it remainsclimate-neutral, producing no moreclimate-changing emissions each yearthanitsforestsabsorb. Already praised byenvironmentalists for its low carbonemissionsandheavyuseof hydropower,

Bhutanhopes to become even greenerby showing that environmentallyfriendlyfarmingcanalsomakemoney.

Cash�from�trash Zam’s switchover came whena team of officials from the agricultureministry told her they were offeringwomenfarmersinhervillagefreetraininginorganicfarming,includingcompostingandsellingthecompostforaprofit. After attending a three-daytraining course, Zam started her homecompost heap. Today, she sells about 60kilogramsofcompost—madeofgrass,leaves,cowdungandsawdust—everytwomonthstotouristresortsandotherbuyers. Zam also uses the compostat her farm, including in the twogreenhouses she bought and installedwith an 80 percent subsidy from thegovernment. Before learning how tocompost, shewouldendeveryharvestseasonwithtwoorthreetruckloadsof deadleavesandotherorganicwastethatshewouldeitherburnorpaysomeonetodisposeof. “Now,fromleavestocowdungtochickenpoop,everythingisused,”shesaid.“Ihavenotrash,onlycompost.”Nedup Tsering, executive director of the government-funded Clean Bhutanproject,whichaims tomakeBhutanazero-wastecountryby2030,notesthatthecountrygeneratesover100tonsof garbage daily but has no centralizedwastemanagementprogram.“Wewantcitizenstopracticethe5Rs:Rethink, reduce, recycle, reuse and re-create,”Tseringsaid.

The�hurdles AccordingtoKesangTshomo,coordinator of the National OrganicProgram,Bhutanfacessomehurdlesonits path toward fully organic farming,however. “We have to be practicaland consider the realities facing ourfarmers,”shesaid.

Oneisthatthecountryproducesrelativelylittleof itsfood.Accordingtoa 2014 study on food security by theRoyalBhutanCollegeof Thimphu,lessthan4percentof Bhutan’stotallandisunder food cultivation, which is whyalmost50percentof thecountry’sriceisimportedfromIndiaandThailand. To persuade Bhutan’s farmersto use organic methods, showing thattheswitchcanleadtohigherproductioniskey,Tshomosaid. In June, officials announcedthatthegovernmenthadsofarprovided176greenhousestofarmersandplannedtoinstall650more.Itsaiditscombinedpolicies of pursuing organic farmingand modernization — such as buildinggreenhouses and fencing — had helpedincreaseagriculturalproduction3percentsincethestartoftheorganicpush. Thegovernmentisbankingonthe Clean Bhutan Project to also helpBhutankeepitspledgetoremaincarbonneutral.Currently,thecountry’scarbonemissionsrateisanegligible0.8metrictonspercapita,accordingtotheWorldBank. Promoting organic farmingpractices like composting is a “logicalstep towards the goal of remainingcarbon neutral,” said PeldonTshering, chief strategist of Bhutan’senvironmentalcommission. Zam, the Paro valley farmer,supports the government’s plan toconvertitsfarmerstoorganicagriculture.Butfortheprojecttosucceed,shesaid,thegovernmentneedstohelpwidenthemarketfororganicproduce. Mostof thehotelsnearherfarmstill mainly buy imported vegetablesfrom India because they are cheaper,shesaid. “If the government couldconvince people to buy from localfarmers, it would help us a lot,” Zamsaid.“Icouldsellallmyproducewithinhours,withoutspendingextraondrivingawagonfromonemarkettoanother.”By�Stella�Paul,�Reuters��

To build a greener economy, Bhutan wants to

go organic by 2020

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Global warming: What exactly is it?

The world gathered in Parison December 2015 to forgea global pact to reducegreenhouse gas emissions

blamed for dangerous levels of globalwarming. HereiswhytheEarthisgettinghotter:

Greenhouse�effect The greenhouse effect is anatural phenomenon that has madeEarth warm enough for humansto survive on it comfortably. Aninvisibleblanketof nitrogen,oxygenandsmallamountsof carbondioxide(CO2) and other gases envelops ourplanet,allowingittoretainthesun’sheat. However,humanactivitiessuchasburningcoalandoilinjectadditionalcarbon dioxide into the atmosphere,which acts as an extra blanket to trapmore — in fact too much — infraredradiationthatwouldotherwisecarryitsenergyintospace. If humans could see infraredlight,wewouldbeable to seedirectlyhowthecolorof theskyhaschanged.

Pollution�sources Humanity’s annual output of greenhouse gases is higher than ever,

totallingtheequivalentof justunder53billiontonsof carbondioxidein2014,accordingtotheU.N. And the rate of increase isaccelerating.It jumped2.2percentperyearduringthe2000s,comparedto1.3percentperyearfrom1970to2000. Energyproductionisthesinglebiggest source of greenhouse gasesat 35 percent of the total. Agricultureanddeforestationcomeinsecondat24percent. Heavy industry is next at 21percent, followed by transportationwith14percent.Buildingscontribute6percentof totalemissions.

Already�in�the�air The average concentration of greenhouse gases in the atmospherewas430particlespermillion(ppm)of carbon dioxide equivalent (CO2e) in2011 — a level not seen on Earth formorethan800,000years. To stand a 2-in-3 chance atlimitingglobalwarmingtotwodegreesCelsius (3.6 degrees Fahrenheit) overpre-Industrial Revolution levels — theUnited Nations target — the levelmustnotexceed450ppmof CO2ebycentury’send.

Warmer�planet

Earth’saveragetemperaturehasalreadyclimbedabout1.0Cfrom1880to 2015 — halfway to the 2 C target.But the increase has not been evenlydistributed, with higher temperaturesdetectedoverlandthantheocean,andincreaseshavebeenparticularlyintenseatthenorthandsouthpoles. The last three decades havebeenthehottestrecordedontheplanetsince 1850. The surface temperatureof oceans climbed 0.11 C per decadebetween1971and2010.

Highest�emissions TheU.N.’sclimatesciencebodyhas predicted that without reducingemissions, global temperatures wouldlikelyriseby3.7to4.8Cby2100.Humanity can emit no more than 1trilliontonsof carbondioxideintotal,on top of the 1.9 trillion tons alreadyemitted. To stayunder the2Cceiling,greenhouse gas emissions must be cutby 40 to 70 percent over 2010 levelsby 2050, and eliminated entirely bycentury’send. Cutting emissions requiresinvestments of hundreds of billionsof dollarsperyearbetweennowand2030.Agence�France�Presse��

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Forallthetalkof asolarboominJapan,coalstillhasafuture,and potentially a big one atthat. Japan’s government and

industry are backing emerging coaltechnologiestheysayarelessdamagingto the environment. While they arepushingthemostpollutingfossilfuelathomeandabroad, thegovernmentwillbe trying to burnish its environmentalcredentialsatclimatetalksthatbeginattheendof themonthinParis. Japan is the biggest backer of publiccoalfinancingglobally,accordingto a June report coauthored by theNatural Resources Defense Council, aU.S.environmentalgroup,andpartners.The country also ranks last among theGroup of Seven nations in efforts tomove away from coal, according toE3G, a nonprofit group promoting alow-carboneconomy,inastatementlastmonth. By promoting new andadvanced coal technologies as cleanerandmoreefficient,Japaniscontradictingenvironmentalists such as NRDC andWWF,whichareseekingtodiscourageinvestors from backing fossil fuel. Formajor Japanese suppliers of powergeneration systems such as MitsubishiHitachiPowerSystemsLtd.,thenationalpush also offers the opportunity tomarkettheirproductsincountrieswherecoalisstillwidelyused. “Support from developedcountries for high-efficiency coal-firedgeneration is needed” to keep plantswith low efficiency from expandingin countries where the fuel is readilyavailable,saidNobuyukiZaima,aprojectmanager in chargeof cleancoal at thetrade ministry-affiliated New EnergyandIndustrialTechnologyDevelopmentOrganization. “Wecancertainlycontributetothereductionof CO2throughapplyingJapan’s superior coal technology,” hesaid. Japan has about 23 gigawattsof coal capacity in various stages of planning or development at home,according to Kiko Network, a Kyoto-based environmental group. Thatcompares with Japan’s coal capacityof 41 gigawatts in 2014, according to

BloombergNewEnergyFinance. “Consumption in the OECD,where coal use faces strong policyheadwinds, is projected to drop by 40percent”through2040,accordingtotheInternational Energy Agency’s WorldEnergy Outlook. “By 2040, Asia isprojectedtoaccountforfouroutof everyfivetonsof coalconsumedglobally,andcoalremainsthebackboneof thepowersysteminmanycountriesinourcentralscenario,”accordingtotheoutlook. Attheforefrontof Japan’spushto show that coal can be burned moreefficientlyandwithlesspollutionistheOsakiCoolGenprojectinHiroshimabyaventurebetweenChugokuElectricPowerCo. and Electric Power DevelopmentCo. Osaki is a government-backeddemonstration project that will use atechnologycalledintegratedgasificationfuelcellcombinedcycle,orIGFC.Thatmeans itwillusesomeof thecapturedemissionstopowerafuelcell,generatingadditionalelectricity. Theapproachbuildsonanotheradvanced technique known as IGCC,which heats or cooks coal to produceagasthatisburnedinaturbine.Wasteheat isusedtodriveasteamturbinetoproducemoreelectricity. Compared with the most

widelyusedcoalplantsinJapan,IGFCis expected to increase efficiencyby15percentagepointsandcutcarbondioxideemissions by 30 percent, according togovernmentestimates. The advanced coal technologyhasdrawbacksthatgobeyondemissions,notablyprice.Thecostforthefirststageof the Hiroshima project is estimatedat ¥89.5 billion, with the governmentpaying one-third, according to a tradeministry document. The project’s fullcosthasyettobemadepublic,accordingtoElectricPowerDevelopment,knownasJ-Power. “IGCCandIGFCdon’tchangethepicture,”saidSebastienGodinot,aneconomist for the WWF’s Europeanpolicy office. “They are not readycommercially. It is now that an urgentshifttolow-carbonpowerisrequired.” In July, Japan’s trade andindustry ministry released a road mapoutlining the next-generation thermalpower technologies that nation expectsto adopt. The plan projects that IGFCtechnologycouldbereadyforbroadusearound2025—makingthenationoneof thebiggestbackersof thetechnology.“This is a colossal program to makeIGFCpossible,”saidHiroshiSasatsu,Continued�on�next�page

Japan pushes clean-coal technology; hurdles abound

Workers repair a coal loading facility at Onahama port in Iwaki, Fukushima Prefecture. Japan’s government and industry are backing emerging coal technologies that they say are less damaging to the environment. Bloomberg

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Continued�from�page�9director of J-Power’s research anddevelopmentdepartment. Noteveryonesupportstheideaof promotingmoreefficientcoalpower.“Even though the efficiency of coal-power generation is improved, coalplantsemitabouttwiceasmuchcarbondioxide as plants powered by naturalgas,” said Yuki Tanabe, a programcoordinator at the Japan Center for aSustainableEnvironmentandSociety. Proponents must convinceinvestorsandenvironmentaliststhatthetechnologiesmakesenseatatimewhenpressure is mounting on lenders to shyawayfromfossilfuels.CitigroupInc.,thethird-biggestU.S.bank,saidinOctoberit

willcutbackonfinancingforcoal-miningprojects. In September, Norway’s $830billionwealthfundestimatedaproposedbanoncoalinvestmentswouldpromptittosellholdingsin120companiesvaluedatabout55billionkroner($6.4billion). Nonetheless,coal ischeapandattractive to some developing countrieswithamplereserves,saidToshiArimura,professor of environmental economicsat Waseda University in Tokyo. Thatmakescleancoaltechnologythesecond-bestchoice,hesaid. “It will be great if wind andsolarpowercanworkassubstitutes,buttheycan’timmediatelyserveasbaseloadpowersourceslikecoaldoes,”hesaid.by�Chisaki�Watanabe,�Bloomberg��

Nepal’s ongoing crisis of petroleum oil and cookinggas started when oursole supplier, Indian Oil

Corporation,refusedtofillouroiltankersandgasbullets, and the Indianbordersecurity forces and customs officialsblocked oil shipments at the border.The southern neighbor has therebyrenegedonitsoiltradecommitmentstopressureNepalintoamendingitsnewlypromulgatedconstitution. Outof desperation,Nepalhasstarted cutting trees and selling fuel-wood to urban residents for cooking.Butthisisadestructiveandshort-termsolutiontotheproblem. Hence, Nepal signed aMemorandum of Understanding withChina on Oct. 29 for oil trade, and aNepal-China commercial treaty is dueto be signed this week for import of one-thirdof Nepal’spetroleumneeds. This article proposes thatNepalshouldsignasimilaragreementwith Bangladesh to fulfill the otherone-thirdof itspetroleumneeds.Indiacouldsupplytheremainingone-thirdof Nepal’soilandgasneeds. BangladeshhasbeenobservingEnergySecurityDayonAug.9annuallytodrawinspirationfromitsassassinatedfirst president, Bangabandhu SheikhMujiburRahman, who had aspired todevelop gas fields and strengthen itsenergysector.Thus, Bangladesh is in a position to

meet Nepal’s energy needs providedthatweworkoutcertainarrangements.That is why a high level Nepal OilCorporation (NOC) delegation is inBangladesh since Nov. 14 to assessall the possible options for importingcooking gas, gasoline, diesel, keroseneandairturbinefuel.

Import�Demand Bangladesh has created abalanced mixed energy system bydeveloping its natural gas, coal andpetroleumresources,diversifyingcrudeoil imports, expanding refineries, andimportingelectricityfromIndia. Even though the country isself-sufficient in natural gas, it haslodgedastrategicclaimwiththeAsianDevelopmentBanktobeaninvestorintheTAPI(Turkmenistan,Afghanistan,PakistanandIndia)pipelineproject totransportnaturalgasfromCentralAsiato South Asia. Hopefully, Nepal willdemandhershareintheTAPIschemeastheproposedpipelinewouldbeclosetoitsborder. Weneedpetroleumtokeepthefactorywheels turning,motorvehiclesrunning,airplanes flyingandhospitalsrunning. Nepal imported about 1.63million tonnesof oil andgas in2014-15. Imports have been swelling attherateof 0.2milliontonnesannuallyfor the past three years. BangladeshimportsfourtimesmoreoilthanNepal,

andtoaccommodateNepal’sone-thirdof petroleum demand, it will have toboost the capacity of its refineries byabout0.5milliontonnesinitially. Thus, the NOC delegationneeds to assure Bangladesh aboutNepal’sscheduleforgasandoilimportsfor a durable solution in terms of quantity,time,prices,cost,andrecoveryrates.

Enabling�Support The transportation of anagreed quantity of imports betweenBangladesh and Nepal has to passthrough a corridor that is simplein geography but complicated ininstitutional functions. There is theKakadvitta-Siliguri-Phulbaritransitandtransportcorridorinplaceanditcouldbeenrichedbyaddingnaturalgasandoilinitsbasketof merchandise. Thatsaid,anobstacleremainsbecause there is no tripartite motorvehicle agreement (MVA) in place toenablethecarriageof goodsbytrucks,oil tankers and gas bullets betweenNepalandBangladeshthroughIndia. The 19th South AsianAssociation for Regional CooperationSummit declaration recently initiatedan MVA among the member states.Pendingthesigningof anMVA,Indiaallowsback-to-backcargomovementatthePhulbaribordercustoms.By� Y.� B.� Thapa,� The� Kathmandu� Post/Asia�News�Network��

Nepal needs Bangladesh fuel link