Report

Tackling Coal-Driven Air Pollution in China and India: Lessons learned for Indonesia

Although air pollution in China and India is currently heavier than in Indonesia, these two countries have been giving more attention to tackling it. Given Indonesia’s very large coal growth projections and current level of air pollution, lessons can be learned from both China and India when it comes to addressing air pollution.

September 12, 2019
  • Energy demand in China, India, and #Indonesia is met to a large degree by fossil fuel combustion, which is creating increased air #pollution in these countries.

  • Phasing out fossil fuel subsidies and dedicating savings to energy efficiency and #renewables would result in greenhouse gas emission reductions, health gains and a faster implementation of the NDC targets.

As the three most populous countries in Asia, China, India and Indonesia share a lot in common when it comes to projected significant economic growth, and along with it, an increase in the power capacity driven by a booming demand.

This energy demand is met to a large degree by fossil fuel combustion, which is creating increased air pollution in these countries.

Both India and China have undertaken important steps to support renewables and increase their share in the national electricity mix. Subsidies to fossil fuels in India have decreased over the past three years as subsidies to renewables increased significantly, showing a political will to reduce India’s dependency on fossil fuel and shift to renewables. 

In China, under a new policy launched in 2018, the government promised to provide direct policy support to help renewable energy developers achieve “grid price parity” with traditional electricity sources. The grid companies will be encouraged to guarantee electricity purchases from pilot projects and lower transmission fees, as well as support cross-regional deliveries of subsidy-free power. 

There are lessons for Indonesia that can be taken from India and China's experiences. Phasing out fossil fuel subsidies and dedicating savings to energy efficiency and renewable energy sources would result in significant greenhouse gas emission reductions, health gains and a faster implementation of the NDC targets.

Report details

Topic
Climate Change Mitigation
Just Transition
Energy
Subsidies
Region
Indonesia
Project
IISD Global Subsidies Initiative
Impact area
Climate
Publisher
IISD
Copyright
IISD, 2019
Report

Mining Project Rehabilitation and Closure Guidelines: Papua New Guinea

This document provides guidance for the administration, regulation and monitoring of the rehabilitation and mine closure obligations in Papua New Guinea.

September 10, 2019

Mine closure and reclamation should be conducted progressively and planned for from the early stages of a mining project in order to maximize the beneficial outcomes following closure.

Opportunities to achieve sustainable post-mining land uses decrease over time. Poor decisions in planning and operation made early in the mine life can reduce closure options and result in poorer closure outcomes related to land stability and fertility, water quality, biodiversity and aesthetics.

Papua New Guinea (PNG) is home to mining operations that range in scale and proximity to communities. Mining operations last from a few years to decades, and vary in their degree of rehabilitation and mine closure (RMC) planning. This document is intended to provide direction on RMC planning in PNG, including through RMC Plan evolution throughout the mine life, plan contents and submission requirements, financial assurance (FA) provisions and inclusions/exclusions. Guidance on sustainable post-closure land use, closure criteria and community engagement is also provided.

This document provides guidance for the administration, regulation and monitoring of the rehabilitation and mine closure obligations in PNG, with the understanding that mine sites exist in various stages of operation and evolution (through proposal variations and permitted amendments) and will consequently require different content within their RMC Plans. The spirit and intent of this document is in conformance with the Asia-Pacific Economic Cooperation Mine Closure: Checklist for Governments and the International Council on Mining and Metals Integrated Mine Closure – Good Practice Guide (2nd edition), both of which may be reviewed for additional background information.

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Report

Managing Local Community Development Related to the Mining Industry: A workshop for WAEMU member states

From July 1 to 5, 2019, IGF held a workshop in Ouagadougou, Burkina Faso, on the management of community development related to the mining industry.

September 4, 2019

From July 1 to 5, 2019, IGF held a workshop in Ouagadougou, Burkina Faso, on the management of community development related to the mining industry.

Workshop participants included 22 officials from administrations responsible for mining, economy and finance and six representatives from municipalities of member states of the West African Economic and Monetary Union (WAEMU).

This training and discussion workshop was organized by the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), in partnership with the WAEMU Commission, as part of the implementation of the Memorandum of Understanding between the WAEMU Commission and the International Institute for Sustainable Development (IISD).

The workshop’s main facilitators were Mr. Sominé Dolo, expert in economics and finance and founding partner of Kanaga Consulting, and Dr. Suzy H. Nikièma, International Law Advisor and Regional Coordinator for Africa for the IISD ELP Program. Mr. Adama Soro, consultant in the governance of extractive resources, Mr. Rémy Barry, community development consultant, and Mr. Oumar Traoré and Mr. Amidou Ouattara, SEMAFO, also presented their perspectives on
specific issues.

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Report

ASEAN Guidelines and Action Plan on Responsible Investment in Food, Agriculture and Forestry: Workshop on Operationalizing the Action Plan

This report captures the main elements of a workshop held in July 2019 in Bangkok, Thailand, devoted to the lessons learned and next steps for the ASEAN Guidelines on Promoting Responsible Investment in Food, Agriculture and Forestry, as well as the associated Action Plan.

September 3, 2019

The ASEAN Guidelines for Responsible Investment in Food, Agriculture and Forestry were adopted in October 2018 by the agriculture and forestry ministers of the member states of the Association of Southeast Asian Nations (ASEAN).

These voluntary guidelines, grounded in the Committee on World Food Security's Principles for Responsible Agriculture and Food Systems (CFS-FAI), are designed to account for the particular needs and objectives of countries in the region, and outline how different stakeholder groups can help promote and support more responsible investments in food, agriculture and forestry that are driven by sustainability considerations.

The July 2019 workshop in Bangkok brought together officials from ASEAN member states, as well as representatives from civil society organizations, farmer organizations, the private sector and various other stakeholders. Much of the workshop was devoted to implementation of the Guidelines and associated Action Plan. It was co-hosted by Grow Asia, the International Institute for Sustainable Development (IISD), and the Food and Agriculture Organization of the United Nations (FAO), in collaboration with the ASEAN Secretariat, with funding from the Swiss Agency for Development and Cooperation (SDC) and the Federal Ministry for Food and Agriculture of Germany.

Report

An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka: Assessing the economic value of restoring the ecological health of Beira Lake in Colombo

The SAVi assessment quantifies the economic value of investing into different ecological restoration options for South-West Beira Lake in Colombo and makes a strong case for such investments given the  positive effects on property values and recreational value of the lake.

August 31, 2019

Key Messages

  • The SAVi assessment quantifies the economic value of investing in different ecological restoration options for the South-West Beira Lake in Colombo, Sri Lanka. The most cost-effective and benefit-generating intervention is to invest in the upgrade of wastewater treatment facilities to reduce pollution pressures on the lake.
  • The improved water quality increases the economic value of properties surrounding South-West Beira Lake by more than USD 14 million by the end of 2025 while stimulating more than USD 10 million in increased spending on recreation by locals and tourists between 2020 and 2025.

The SAVi assessment quantifies the economic value of investing in different ecological restoration options for the South-West Beira Lake in Colombo, Sri Lanka. The report presents the results of the review of the effectiveness of restoration options and an integrated cost–benefit analysis. This analysis includes a valuation of water-quality impacts on property values and an estimation of the enhanced recreational value of a restored lake.

The SAVi assessment was conducted for four scenarios. The business-as-usual scenario (1) assumes no additional investments for restoration. This will reduce water quality, cause a net decrease in property values and no increase in the lake’s recreational value.

Reducing the inflow of nutrients from sewage drains is paramount to solving the eutrophication and algae bloom problems in the lake, as reflected by the results of Scenario 2, which assumes investments into the wastewater treatment system. The improved water quality leads to a USD 14 million increase in the economic value of properties surrounding South-West Beira Lake. It also stimulates a USD 10 million increase in spending on recreation by locals and tourists between 2020 and 2025. Scenario 3 assumes the dredging of the lake sediment. This intervention yields only a slight increase in water clarity but does not address the continuous inflow of nutrients. Therefore, investing in dredging alone won’t yield long-lasting water-clarity improvements and economic gains.

Combining the above interventions (Scenario 4) achieves significant improvements in water clarity. This scenario generates the greatest increase (USD 43 million) in the economic value of properties. It also increases the total amount of recreational spending by USD 19.5 million between 2020 and 2025.

The results of this SAVi assessment make a strong case for investing in the restoration of South-West Beira Lake, given the positive effects on property values and the recreational value of the lake. If available financing sources are limited, prioritizing investing in the upgrade of the wastewater treatment system in the drainage area of the lake is recommended because this intervention has by far the best benefit-to-cost ratio. The report also points to financing solutions to realize the restoration interventions.

Participating experts

Report details

Topic
Public Procurement
Infrastructure
Region
Sri Lanka
Project
The Sustainable Asset Valuation (SAVi)
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2019
Report

Submission to Environment and Climate Change Canada's Consultation on Non-Tax Fossil Fuel Subsidies

As part the G20 peer review of fossil fuel subsidies, Environment and Climate Change Canada opened a consultation on their review of non-tax subsidies. IISD developed this written submission in response.

August 14, 2019

Key Messages

  • As part of Canada's participation in the G20 peer review of fossil fuel subsidies, Environment and Climate Change Canada opened a consultation on their review of non-tax subsidies.
  • The G20 review process is a critical opportunity to scale up climate change action, maximize policy efficiency and ensure public funding is allocated to areas that matter most to Canadians.
  • IISD developed a written submission to support the review with recommendations to ensure a thorough analysis of all fossil fuel subsidies and for an action plan for their reform. With the urgency of climate change, the time to act is now.

Subsidizing fossil fuels undermines Canada’s transition to a low-carbon economy. These subsidies lock in the pollution that causes climate change and reduce money available for issues that matter to Canadians, such as healthcare, long-term job creation and education. The good news is that the Government of Canada is undergoing a peer review of fossil fuel subsidies with Argentina as part of its commitment to phasing out inefficient fossil fuel subsidies under the G20.

As part of the review, the government is reviewing two types of subsidies:

  1. Tax measures, where government revenue is foregone because of tax breaks given to fossil fuel producers. This part of the review is being handled by Finance Canada.
  2. Non-tax measures, where the government actively spends money on programs that support the production or consumption of fossil fuels. This part of the review is being handled by Environment and Climate Change Canada (ECCC).

In spring 2019, ECCC opened a consultation to receive feedback on how they should review non-tax subsidies. IISD provided feedback and wrote a submission with recommendations on how to make sure the review is as thorough and effective as possible, building on longstanding experience and the work of our Global Subsidies Initiative.

Here’s what we recommended:

  1. Use ambitious criteria for defining subsidies. The G20 commitment is to address “inefficient” fossil fuel subsidies, so IISD recommends that Canada take a serious look at whether existing subsidies are truly the most efficient way to achieve policy objectives, with consideration of economic, social and environmental costs. If not, they should be reformed.
  2. Strive for maximum transparency. Canada should publicly release data on existing subsidies so Canadians know how much is being spent. The government should also keep Canadians updated on the process and results of the G20 review.
  3. Engage the provinces and territories. As Canadians know, what happens federally impacts the provinces and territories. The government should invite the provinces and territories to take part in this federal review. Provinces and territories should also be encouraged to do their own subsidy reviews.
  4. Reaffirm Canada’s G7 commitment to reform fossil fuel subsidies by 2025. To achieve Canada’s commitments, including emission reduction targets under the Paris Agreement, the government needs to make sure the review process is timely (i.e., completed within 12–18 months) and include a detailed action plan of how Canada will carry out subsidy reform.

Report details

Topic
Subsidies
Energy
Just Transition
Climate Change Mitigation
Region
Canada
Impact area
Climate
Publisher
IISD
Copyright
IISD, 2019
Report

Agricultural Bias in Focus

This paper provides further details and explains how to measure and understand the source of agricultural bias in a country, including examples and country case studies.

August 12, 2019

The report Transforming Agriculture in Africa and Asia: What Are the Policy Priorities? showed that successful agricultural transformation has depended on interacting agricultural policies as well as the broader economic policy environment.

A key finding was that agricultural transformation succeeded when governments removed the policies and addressed the market failures that disadvantaged the agricultural sector relative to the rest of the economy. We referred to this relative disadvantage as the anti-agricultural bias.

To explain how these policies interact and which policies affect different aspects of the overall economy, we developed a policy taxonomy, with a focus on those that affect prices in agricultural markets (see A Policy Taxonomy for Agricultural Transformation). The policy taxonomy came from an inventory of policies collected from over 250 articles and is derived from the policy framework used in Transforming Agriculture in Africa and Asia: What Are the Policy Priorities?

This paper provides further details and explains how to measure and understand the source of agricultural bias in a country, including examples and country case studies.

Report details

Topic
Food and Agriculture
Impact area
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2019
Report

Mapping Policy for Solar Irrigation Across the Water-Energy-Food (WEF) Nexus in India

How are India's off-grid solar pump policies affecting the water–energy–food nexus? This paper maps out impacts and the key policies that are driving them.

August 6, 2019

Key Messages

  • To effectively promote off-grid solar pumps in India, it is important to understand the full landscape of central and state policies across water, energy and food (WEF) systems.
  • This paper maps such policies and finds that many, including policies to promote off-grid solar pumps, do not explicitly acknowledge or account for complex WEF interactions, limiting their effectiveness and in some cases undermining objectives other areas.
  • It recommends for off-grid pump policies to be coordinated with an upscaled set of efforts on addressing the sustainable use of groundwater in India. It also advises careful monitoring and evaluation of KUSUM, the government's new solar pumps scheme. 

Globally, many people do not have adequate access to water, energy and food: 2.1 billion people lack access to safely managed drinking water; almost 1 billion lack access to electricity and 2.7 billion lack access to clean cooking; and 821 million face chronic food deprivation. Yet water, energy and food systems are all under increasing pressure from rapid growth in economies, consumption patterns and population.

The Sustainable Development Goals (SDGs) recognize the need to deliver access sustainably through dedicated goals on each theme: SDG 2 (zero hunger), SDG 6 (clean water and sanitation) and SDG 7 (affordable and clean energy). As targets, the SDGs cannot themselves recognize or address linkages—but if all three targets are to be met by 2030, then it is important to weigh up potential trade-offs. The “water–energy–food (WEF) nexus” means that there are interconnections in all three areas. Implementing a policy to address one objective can have detrimental impacts on another.

This paper seeks to assist policy-makers and researchers in India who are working to promote the uptake of off-grid, solar-powered pumps for groundwater irrigation. It begins by setting out key WEF linkages of importance for off-grid solar pumps. It then establishes an approach for identifying policies across the WEF nexus that are key for off-grid solar pumps and maps these policies at the Central Government level and in two states: Bihar and Rajasthan.

It recommends for off-grid pump policies to be coordinated with an upscaled set of efforts on addressing the sustainable use of groundwater in India. It also advises careful monitoring and evaluation of KUSUM, the government's new off-grid solar pumps scheme.

Report details

Topic
Climate Change Mitigation
Subsidies
Food and Agriculture
Sustainable Development Goals
Water
Region
India
Impact area
Climate
Publisher
IISD
Copyright
IISD, 2019
Report

The (Public) Cost of Pollution: Ontario's fossil fuel subsidies

This report provides an inventory of fossil fuel subsidies in Ontario and provides recommendations for provincial subsidy reform.

July 30, 2019
  • Each year, #Ontario provides nearly CAD 700 million in public subsidies for fossil fuels at the expense of investing in other policy areas that matter to Ontarians.

  • In 2018/19, #Ontario's largest fossil fuel subsidies included CAD 320 million in tax exemptions for fuels used by the aviation and rail industry.

Key Messages

  • Each year, Ontario provides nearly CAD 700 million in public subsidies for fossil fuel consumption at the expense of investing in other policy areas that matter to Ontarians.
  • The highest subsidies in Ontario fall into three categories: tax exemptions for aviation and railway fuels, tax exemptions for coloured fuel (e.g., fuel used in agriculture) and direct spending on natural gas expansion.
  • Ontario has an opportunity to lead the charge on provincial fossil fuel subsidy reform. As a first step, Ontario should undertake a transparent self-review of the subsidies listed in this report to determine their efficiency and effectiveness.

IISD has documented the billions of public dollars that support fossil fuel production and consumption by the Canadian government. But fossil fuel spending is also a problem among Canadian provinces and territories. 

Ontario spends nearly CAD 700 million each year in public subsidies for fossil fuel consumption. These subsidies represent large amounts of foregone public revenue that could be invested in everything from good jobs to education and healthcare. Spending money on fossil fuel encourages their use and contributes to the pollution that causes climate change. Ontario's largest subsidies include CAD 320 million in 2018/19 in tax exemptions for fuels used by the aviation and rail industry, CAD 225 million in 2018/19 in tax exemptions for coloured fuel (commonly used in agriculture) and at least CAD 100 million in direct spending on natural gas expansion in Budget 2018.

How can Ontario move away from fossil fuel spending to facilitate good fiscal management and a transition to a clean economy? The report recommends the following action areas for the province:

  • Undertake a transparent self-review of all fossil fuel subsidies and identify potential areas for improved policy efficiency from economic, environmental and social perspectives. 
  • Develop an action plan to phase out subsidies to ensure responsible budgetary management, increased support for sustainable energy and support for affordable energy access for Ontarians.
  • Establish clear guidelines to make sure that no new fossil fuel consumption or production subsidies are introduced without a thorough analysis, to ensure that they are absolutely essential, time limited, consistent with a long-term low-carbon economy, and that they are the only way to ensure policy objectives such as lowest-cost energy access.
  • Proactively engage with the Government of Canada as they complete their G20 peer review of fossil fuel subsidies.

Report details

Topic
Climate Change Mitigation
Subsidies
Energy
Region
Canada
Impact area
Climate
Sustainable Economies
Publisher
IISD
Copyright
IISD, 2019
Report

Casualty or Catalyst: Gender equality and the future of mining

IISD hosted an event June 12, 2019, in Ottawa, Canada, focusing on gender equality and the future of mining.

July 30, 2019

The Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), Carleton University and the Canadian International Resources and Development Institute (CIRDI) co-hosted "Casualty or Catalyst: Gender equality and the future of mining" on June 12, 2019, in Ottawa, Canada, at Carleton University.

The audience of over 70 people included policy-makers, members of civil society and academics. The event focused on six overarching themes: 

  • Indigenous approaches to gender equality in mining
  • Persistent challenges that constrain gender equality in mining across artisanal and small-scale mining (ASM), small and medium enterprises, and large-scale operations
  • Exploring how and why solidarity matters, and how we build spaces for cooperation across all stakeholder groups
  • Data transparency
  • Lessons learned from emerging and advanced industrial economies to advance gender equality
  • Sexual and gender-based violence in the mining sector.