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  • Others
23 November 2018

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  • Philippines

MANILA – The Philippine Climate Change Assessment Working Group 3 Report was launched on Monday during the opening ceremonies of the 2018 Global Warming and Climate Change Consciousness Week in Pasay City.

One of the lead authors, Rodel D. Lasco, who is also the Scientific Director of the Oscar M. Lopez Center for Climate Change Adaptation and Disaster Risk Management Foundation, turned over the report to Climate Change Commission Executive Director Emmanuel M. De Guzman.

Focusing on climate change mitigation in the Philippines, the report assessed the country’s contribution to global greenhouse gas (GHG) emissions that cause climate change.

While the Philippines has a minimal share in the global emissions, a mere 0.31 percent in 2010 and 0.39 percent in 2015, the country’s emissions are on the rise as the economy continues to grow.

The report puts a spotlight on 4 sectors that are the biggest contributors of greenhouse gas emissions: energy, industrial processes, agriculture, and waste generation.

The use of coal and fuel oil for electricity generation contributed 41.8 percent, almost half of the total greenhouse gas (GHG) emissions in the country in 2010 and is growing annually by 3.7 percent. Transport ranked second with 35 percent of the total emissions.

The agriculture sector, particularly livestock farming and rice cultivation, produces methane (CH4) that is more potent as a heat-trapping gas.

For Lasco, while these sectors are the major culprits to the climate, they are also the key to successful climate mitigation efforts.

“Marami ang emission nila ngayon so sila rin ‘yung puwedeng makapagbawas ‘pag gumagamit sila ng mga magandang pamamaraan o teknolohiya,” he said.

De Guzman believes the support of the private sector will enable the country to pursue a low carbon development pathway.

On the first day of the climate week observance, top business leaders, such as SM Prime Holdings Inc. chairman Hans Sy, First Philippine Holdings Corporation CEO Federico Lopez, members of the Philippine Chamber of Commerce and Industry and the Bankers Association of the Philippines made a strong commitment to make business a key driver of climate action.

“We are very happy that the top business leaders are with us in this climate action advocacy. They would like to have a good environment for business towards sustainability and a low-carbon economy,” De Guzman said.

Lopez, for instance, mentioned First Philippine Holdings Corporation’s decision to “no longer build, develop or invest in coal-fired power plants” as they plan to further expand their renewable energy portfolio.

This year’s Climate Week theme is “The 1.5 degrees Celsius Climate Challenge: Survive and Thrive Together”.

A recent special report of the Intergovernmental Panel on Climate Change (IPCC) detailed some of the adverse effects of a global warming that is 1.5 degrees Celsius above pre-industrial levels, which include extreme weather conditions, sea level rise, and the spread of diseases.

The IPCC report asserted that what could stop the acceleration of anthropogenic global warming is for the world’s nations to achieve and maintain net-zero anthropogenic carbon dioxide emissions.

As a party to the Paris Agreement, the Philippines is ready to do its part in climate change mitigation by mobilizing multi-sectoral sustainable development stakeholders and to synergize action towards a green economy and a low-carbon future.

  • Oil & Gas
23 November 2018

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  • Philippines
Philippines’ President Rodrigo Duterte looks on during the retreat session of the APEC Summit in Port Moresby, Papua New Guinea November 18, 2018. REUTERS/David Gray

MANILA (Reuters) – Philippine opposition senators have demanded President Rodrigo Duterte reveal details of joint energy exploration plans with China, warning such a deal risked affirming Chinese territorial claims that are not recognized under international law.

Early this year, the two countries set up a joint panel to work out how to explore offshore oil and gas in areas that both claim, without addressing the explosive issue of who has the sovereign rights to them.

“Signing the Chinese deal will make the Philippines recognize an unlawful ‘co-ownership’ with China,” the minority senators said in a resolution on the eve of Tuesday’s visit to Manila by Chinese President Xi Jinping.

The Philippines, which relies heavily on energy imports is racing against time to develop oil and gas reserves in the South China Sea, but to do that needs foreign help, which China has offered.

Though they intend to undertake some projects in waters that are not subject to competing claims, there are concerns among Philippine lawyers and diplomats about teaming up in areas that both countries claim, in particular, the Reed Bank, about 90 miles (167 km) off the Philippines’ Palawan island.

A 2016 ruling by the Permanent Court of Arbitration in a case filed by Manila clarified, among other issues, that the Philippines had sovereign rights to exploit energy reserves at the Reed Bank.

It also invalidated China’s nine-dash line claim to most of the South China Sea, which the senate resolution said was “unlawful and expansive”.

China refuses to recognize the Hague tribunal’s ruling.

The idea of joint development was first hatched in 1986, but disputes and the complexities of the sovereignty issue have held up the plans.

The senators said any agreement with China would be a violation of the constitution, and an impeachable offense.

Presidential spokesman Salvador Panelo said any joint agreement would be constitutional, adding that it was too early to discuss senate scrutiny.

“Any demand for a release of documents … is premature and could be prejudicial to our country’s interests, given that parties have yet to ink any agreement,” Panelo said.

  • Others
23 November 2018

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  • Indonesia

UK marine developer submits grid feasibility study for up to 150MW Nautilus project

UK tidal developer SBS has filed a grid expansion feasibility study to Indonesian state power utility PT Perusahaan Listrik Negara (PLN) as part of its up 150MW Nautilus project.

The preliminary study, which explores the options to expand the grid on Lombok island to accommodate the Nautilus array output, is being internally reviewed by PLN.

SBS has exclusive site-development rights with PLN for the project, which features the installation of an eight-turbine, 12MW first phase on behalf of independent power producer SBS Energi Kelautan.

The turbines for the first phase, expected to be completed in 30 months, will be supplied by Simec Atlantis Energy.

The 12MW phase will be followed by expansions to 70MW in the second phase and 150MW in the third and final phase.

“Following successful lobbying for tidal to be included in the Indonesian government’s list of approved renewable energy technologies, the Nautilus project has achieved significant progress toward inclusion in PLN’s 10-year business plan,” said SBS chief executive Michael Spencer.

“We are very pleased to submit this preliminary grid extension feasibility study report requested by PLN and honoured to assist its planning for this significant marine energy power generation project,” he added.

SBS Energi Kelautan reached a final investment decision for the first phase in October 2017. The output will be sold to PLN under a 30-year power purchase agreement.

  • Bioenergy
23 November 2018

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  • Philippines

MANILA — Metro Pacific Investments Corp said Tuesday it signed agreements to build P1 billion in biogas facilities for Dole Philippines,marking its first foray into bio-energy.

Metro Pacific said its unit, Metpower Ventures Power Holdings Inc, through Surallah Biogas Ventures Corp, finalized the deal with Dole Philippines.

“The project serves as MPI’s first foray in bio-energy and will serve as a catalyst for a highly scalable waste-to-energy platform it plans to build in the Philippines through MVPHI,” Metro Pacific told the stock exchange.

The facilities to be built by MVPHI will complement Dole’s existing facilities to process organic fruit waste in Surallah and Polomolok, South Cotabato, according to the disclosure.

The facilities will produce 50,000 megawatt-hours of clean energy annually, it said.

In a separate disclosure, Metro Pacific said it secured a P5 billion 10-year term loan from UnionBank to finance various projects. The debt will have fixed interest throughout its term.

  • Others
23 November 2018

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  • Philippines

Victims of extreme weather events in the Philippines come forward in an investigation into how major carbon producers are violating human rights due to their role in driving climate change.

Survivors of devastating typhoons in the Philippines have appealed to major carbon producers to respect their human rights and act on climate change.

At an emotional hearing in London last week, the Philippines Commission on Human Rights heard personal testimonies from Filipinos who had suffered during recent extreme weather disasters. The commission also listened to expert testimony on climate change science, risk and law.

The inquiry is investigating whether the actions of 47 large coal, oil, mining and cement firms are breaching the human rights of Filipino citizens, including their rights to life, housing, health, food and self-determination, by extracting large volumes of fossil fuels or through carbon-intensive industrial processes.

It began in 2016 following a petition by Greenpeace South Asia and other local groups to investigate the issue. The commission held four sessions in the Philippines before expanding to New York and London because it wanted to hear evidence from a broader range of people and to raise the inquiry’s international profile.

Typhoon devastation

During the latest hearing at the London School of Economics, Veronica Cabe described how her Philippines home was devastated in 2009 by Typhoon Ketsana. Separated from her family, she had to wade waist-deep through floodwaters for seven hours to bring them dry clothes and pots of cooked rice and adobo. “When I finally saw them, I was happy because they were safe.”

The typhoon was devastating for the Philippines, leaving hundreds dead and causing billions of dollars worth of damage. Cabe spent the following months removing the mud that caked their home and trying to salvage anything that could still be useful. Her father caught leptospirosis and had to be treated in hospital. “I felt like part of our dignity was lost,” she said.

The panel also heard from a survivor of Typhoon Haiyan, the deadliest storm the country had ever seen. Marielle Bacason, who now works in London as a research nurse, described the emotional, social and physical impacts of the disaster on her family even five years later and said her priorities in life had changed. “Before, my worries were superficial but having that experience opened my mind.”

None of the 47 companies subject to the inquiry, which include Shell, Total, BP, ExxonMobil and Chevron, have appeared at the hearings despite being asked to present their views. However, several have challenged the inquiry’s jurisdiction over them in writing and argued that climate change is not a violation of human rights.

When asked if she had a message for respondents, Cabe said: “Maybe I can still appeal to the respondents: please listen to us. Consider our suffering.”

Holding companies accountable

The commission is an independent body tasked with investigating human rights violations in the Philippines. It does not have the power to hold the companies legally responsible or to fine them. But its report could inform the development of new laws in the Philippines, and it hopes that the body of evidence it develops will be used by policymakers, lawyers and climate campaigners around the world.

At its hearings, the commission was presented with attribution studies that calculate how much individual companies have contributed to global warming. Richard Heede of the Climate Accountability Institute explained how his landmark “Carbon Majors” projectshows the amount of carbon dioxide created by each of the world’s biggest coal, oil, gas and cement companies since the industrial revolution. The Philippines inquiry focuses on the publicly owned companies identified in this work, many of which operate in or have links to the country.

The commission was also shown expert evidence linking climate change with extreme weather events and information on the impact of fossil fuel industry lobbying and misinformation campaigns.

Dr Myles Allen, co-author of the IPCC’s Special Report on Global Warming of 1.5°C and head of the Climate Dynamics group at the University of Oxford’s department of atmospheric, oceanic and planetary physics, presented studies in London that showed human influence had increased the impact and intensity of Typhoon Haiyan.

He warned that even limiting climate change to 1.5 degrees Celsius would not be enough to completely avoid harm to people and property. Countries such as the Philippines are likely to suffer particularly badly.

Allen said fossil fuel companies had long been aware of the causes and impacts of climate change, but decided not to invest in mitigation technology decades ago. “In my view, there was an alternative course of action available to the industry,” he said.

The failure of fossil fuel companies to act has resulted in several high-profile climate liability cases. Dr Roda Verheyen, a lawyer who has represented such cases, explained how climate change litigation is growing around the world and courts are hearing cases involving human rights arguments. She talked in particular about two cases she is involved in. In one, a Peruvian farmer whose home is at risk from a melting glacier is suing German energy company RWE. The case was dismissed but is now under appeal. In another, called the “People’s Climate Case”, ten families from across the world are taking the EU to court for not having stronger targets to reduce carbon emissions.

“I represent real clients with real problems,” said Verheyen. “We’re not talking about future effects. We’re talking about historic emissions. We’re talking about already occurring damage or risk due to climate change today.”

Despite the evidence that burning fossil fuels is driving climate change, ending their use quickly will be a challenge. Dr Paul Ekins, co-director of the UK Energy Research Centre and professor of resources and environmental policy and director of the Institute for Sustainable Resources at University College London, said some investment in fossil fuels is necessary because the world is still dependent on them. But he was critical of investment in new exploration and discovery. “We know about plenty of reserves that we can’t afford to burn and discovering more of them will simply make those decisions more difficult.”

Any responsible business that is aware of its commitments to human rights and social welfare should be planning to exit from fossil fuels, added Ekins. “And we know from the recent 1.5C report it should be planning that pretty fast.”

Linking climate change and human rights

At an evening talk on human rights and climate change, held during the same week in London, Greenpeace lawyer Kristin Casper described the Philippines inquiry as a “microcosm of the global wave of action that is happening right now”.

Dr Annalisa Savaresi, law lecturer at the University of Stirling, said the commission has set an important precedent in investigating the global issue of climate change as a national human rights organisation.

She said there were several key challenges to doing this: showing that corporations have human rights obligations in general, that a specific corporation has contributed to climate change in a way that amounts to a human rights breach and allocating responsibility for such breaches.

Savaresi concluded that the Philippines commission had heard evidence that these could be demonstrated. “If the commission is to find that indeed corporate responsibility for human rights violations can be attributed to carbon majors that could be a primer, and who knows where we go from there.”

The commission’s final hearing will be held in Manila in December. It is expected to formally report on its findings by next summer.

Cabe, who is now a community anti-coal activist, remains hopeful that it will have a positive influence. “I have seen how poor communities have become ever more vulnerable to the impacts of climate change,” she said. “I believe that through this commission our stories and our voices can be heard. Governments and corporations can choose people over profit.”

  • Others
23 November 2018

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  • Indonesia

Ahead of the legislative and presidential elections (scheduled for April 2019) the Indonesian government is unwilling to impose impopular measures. One of the side-effects is that subsidy spending has gone beyond the target that was set in the 2018 State Budget. Lets take a closer look at spending on energy subsidies in Indonesia so far this year.

Up to 31 October 2018, the Indonesian government spent IDR 117.4 trillion (approx. USD $8.0 billion) on energy subsidies. Considering the government targeted energy subsidy spending at IDR 94.4 trillion (approx. USD $6.5 billion) in the 2018 State Budget, energy subsidy spending realization has already reached 124.2 percent of the budget.

There are three factors behind this generous energy subsidy spending so far in 2018:

(1) global crude oil prices had been strengthening significantly up to October 2018;
(2) the rupiah has been weakening against the US dollar for most of the year;
(3) the government is reluctant to raise prices of subsidized fuels and electricity in order to avoid losing votes for next year’s elections.

Particularly higher prices of subsidized fuels tend to meet fierce resistance in Southeast Asia’s largest economy where many millions of people live in poverty or just above the poverty line. A price hike would push inflation higher, hence making life more costly.

Subsidy spending on subsidized fuels and subsidized 3-kilogram liquefied petroleum gas (LPG) canisters reached IDR 75.3 trillion (approx. USD $4.8 billion) in the first ten months of 2018, or achieving 160.7 percent of the targeted IDR 46.9 trillion that was set in the State Budget. Meanwhile, spending on electricity subsidies reached IDR 42.1 trillion (approx. USD $2.9 billion) in the same period, or 88.3 percent of the targeted IDR 47.7 trillion that was set in the state budget.

Therefore, it is clear that spending on subsidized fuels and subsidized 3-kg LPG canisters is the most problematic issue. Finance Minister Sri Mulyani Indrawati said the energy subsidy bill is particularly high this year because the government also still had to settle bills for 2016 and 2017. So far in 2018 the government paid debts of IDR 12.3 trillion to state-owned oil & gas company Pertamina and IDR 10 trillion to state-owned electricity company Perusahaan Listrik Negara (PLN). However, also without this additional burden, the government would significantly exceed the budget in terms of energy subsidy spending.

The Indonesia Crude (Oil) price (or ICP) touched USD $69.18 per barrel in October 2018, while the government had targeted the ICP at USD $48 per barrel in the 2018 State Budget. This is a problem for central authorities as it is estimated that for each USD $1 per barrel increase, public energy subsidy spending rises about IDR 1.2 trillion (approx. USD $82 million).

Meanwhile, the Indonesian rupiah was targeted at IDR 13,500 per US dollar in the 2018 State Budget, while in reality the currency had weakened to IDR 15,227 per US dollar by 31 October 2018. It is estimated that for each IDR 100 per US dollar rupiah depreciation, Indonesia’s central government spending – including subsidy spending – rises about IDR 1.8 trillion (approx. USD $123 million).

Mamit Setiawan, Executive Director at the Energy Watch, expects to see the government’s spending on subsidized fuels and subsidized 3-kg LPG canister to reach up to IDR 85 trillion (approx. USD $5.8 billion) by the year-end as demand will rise significantly ahead of Christmas and New Year celebrations.

Indonesia’s Energy Subsidy Spending & Indonesian Crude Price:

2012 2013 2014 2015 2016 2017 2018¹
Subsidy Spending
(in IDR trillion)
306.5 310.0 341.8 137.8 106.8  97.6  94.4
1. Fuel & LNG
(in IDR trillion)
211.9 210.0 240.0  64.7  43.7  47.0  46.9
2. Electricity
(in IDR trillion)
 94.6 100.0 101.8  73.1  63.1  50.6  47.7
ICP
(in USD/barrel)
112.7 105.8  96.5  49.2  40.2  50.0  48.0

¹ assumption set in revised state budget
Source: Finance Ministry of Indonesia

 

  • Bioenergy
  • Renewables
23 November 2018

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  • Vietnam

AN GIANG — The Mekong Delta province of An Giang will offer preferential policies to investors in renewable energy plants as part of its strategy on sustainable development.

Investors whose projects are in production and trade, for instance, will be exempt from land lease fees for seven years and will receive other incentives, according to the province’s Department of Industry and Trade.

Investors will also be exempt from fees for infrastructure projects in industrial parks for 11 years, while loans equal to nearly 70 per cent of total investment capital will be offered.

Investors in economically difficult regions, such as districts Tri Tôn, Tịnh Biên and An Phú, will have a corporate tax rate of 10 per cent.

Nguyễn Minh Triết, deputy head of the department’s Energy Management Division, said at a conference on sustainable energy development held on Tuesday that four solar energy projects with 320 MWp capacity were being built in Tịnh Biên and Châu Thành districts.

Another five solar energy projects with capacity of 463 MWp in districts Tri Tôn and Tịnh Biên have been submitted for approval to the Ministry of Industry and Trade.

In March, a solar rooftop system with capacity of 3kWp will be installed at a facility of the industry and trade department, under an agreement between the province and Germany’s Mecklenburg-Vorpommern state.

This system will be the first in the province and serve as a model for solar energy generation.

Đoàn Minh Triết, the department’s deputy director, said the energy sector would focus on renewable energy to meet the increasing demand for power and to reduce greenhouse gas emissions.

Waste as energy source

The province also plans to use waste from agricultural production to generate energy under a biomass energy project awaiting approval from the Government.

Under the project, three plants will be built to generate energy from rice husks, with total capacity of 40 MW.

The plants will be built in areas where rice processing factories are located.

If the project is approved, the department will ask the Government to provide preferential policies on land, corporate tax and import tax for procurement of fixed assets.

Many investors want to invest in rice husk energy plants, but are worried about the price offered by the Government. They said the prices should be equal to or higher than prices offered for solar energy, according to the Công Thương (Industry and Trade) newspaper.

The provincial People’s Committee has also approved an action programme with investment of VNĐ500 billion (US$21.5 million) on effective management and use of biomass for energy generation in the context of climate change for the 2018-30 period.

Under the programme, areas of collected straw will include at least 40 per cent of the total straw discharged from rice production.  Of these areas, 15 per cent will be used for energy production.

In addition, at least 50 per cent of the total rice husks discharged from rice production will be used for renewable energy plants.

An Giang Province has huge potential for biomass energy as it has an annual output of paddy of more than 4 million tonnes, ranking second in the Mekong Delta region.

It also has 8 million tonnes of straw and 800,000 tonnes of rice husks, and a large amount of other kinds of biomass such as corn husks, sugarcane dregs, and others.

The total amount of biomass in the province is 10 million tonnes, which could generate 17 million MWh a year. — VNS

  • Energy Cooperation
23 November 2018

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  • Vietnam

HANOI (Reuters) – Vietnam and Russia on Monday agreed to nearly triple bilateral trade to $10 billion (7.7 billion pounds) by 2020 from $3.55 billion last year, while expanding energy ties.

Russia is Vietnam’s biggest weapons supplier and Russian companies are involved in several Vietnamese energy projects.

Phuc said the two countries are looking to facilitate bilateral trade in farm produce and seafood and will have measures to support joint energy investment projects.

“Russian and Vietnamese energy companies are cooperating effectively and we want to strengthen these ties further with measures to facilitate joint energy investment projects in Russia, Vietnam and in third countries,” Medvedev said.

Vietnam was the fourth largest buyer of Russian wheat after Egypt, Turkey and Bangladesh in the previous marketing season. The Southeast Asian country has imported 1.2 million tonnes of Russian wheat since the start of the current 2018/19 marketing season on July 1.

Russia’s food safety watchdog beefed up quality controls on grain exports in mid-September citing complaints from Vietnam and some other major buyers about falling crop standards.

(Reporting by Khanh Vu and Polina Devitt; Editing by Shri Navaratnam)

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