Promotion of Renewable Energy Globally Based on Johannesburg Follow-up Youn Chen, Stockholm Enivornment Institute (SEI) TemaNord 2004:531 Promotion of Renewable Energy Globally Based on Johannesburg Follow-up TemaNord 2004:531 © Nordic Council of Ministers, Copenhagen 2004 ISBN 92-893-1019-7 ISSN 0908-6692 Print: Ekspressen Tryk & Kopicenter Copies: 150 Printed on paper approved by the Nordic Environmental Labelling. This publication may be purchased from any of the sales agents listed on the last page. Nordic Council of Ministers Nordic Council Store Strandstræde 18 Store Strandstræde 18 DK-1255 Copenhagen K DK-1255 Copenhagen K Phone (+45) 3396 0200 Phone (+45) 3396 0400 Fax (+45) 3396 0202 Fax (+45) 3311 1870 www.norden.org The Nordic Council of Ministers was established in 1971. It submits proposals on co-operation between the governments of the five Nordic countries to the Nordic Council, implements the Council's recommendations and reports on results, while directing the work carried out in the targeted areas. The Prime Ministers of the five Nordic countries assume overall responsibility for the co-operation measures, which are co-ordinated by the ministers for co-operation and the Nordic Co-operation committee. The composition of the Council of Ministers varies, depending on the nature of the issue to be treated. The Nordic Council was formed in 1952 to promote co-operation between the parliaments and governments of Denmark, Iceland, Norway and Sweden. Finland joined in 1955. At the sessions held by the Council, representatives from the Faroe Islands and Greenland form part of the Danish delegation, while Åland is represented on the Finnish delegation. The Council consists of 87 elected members - all of whom are members of parliament. The Nordic Council takes initiatives, acts in a consultative capacity and monitors co-operation measures. The Council operates via its institutions: the Plenary Assembly, the Presidium and standing committees. Table of Contents Foreword ........................................................................................................................ 7 Summary ........................................................................................................................9 Chapter 1: Introduction ................................................................................................. 11 1.1 Background and Purpose ............................................................................... 11 1.2 Outline and structure of the study.................................................................. 11 Chapter 2: Prospects of Renewable Energy ................................................................. 13 2.1 Renewables - from Rio to Johannesburg ....................................................... 13 2.2 Discussion on renewable energy targets at Johannesburg ............................. 13 The Brazilian Energy Initiative for the 2002 Summit .......................... 14 The European Union’s proposal for the 2002 Summit......................... 14 2.3 Follow-up initiatives after WSSD.................................................................. 16 Chapter 3: Definitions of Renewable Energy ............................................................... 19 3.1 Definitions in European Countries and by International Organisations ........ 20 National definitions .............................................................................. 21 Promotional schemes............................................................................ 21 Remarks................................................................................................ 21 The Definitions in the EU..................................................................... 27 Definitions in the Selected European Countries................................... 27 Definitions used by International Organisations .................................. 32 3.2 Controversial Issues in Definitions................................................................ 33 Hydroelectric sources ........................................................................... 33 Biomass use .......................................................................................... 36 Chapter 4: Possible implication on greenhouse gas emissions................................... 40 4.1 Global renewable energy adoption ................................................................ 40 Selected Renewable Energy Sources.................................................... 40 4.2 A brief analysis on CO2 emission reduction: based on the proposal of Coalition for Renewable Energy............................ 45 At the global level................................................................................. 45 At the EU level ..................................................................................... 46 Chapter 5: Nordic Role in the Promotion of Renewable Energy in Developing Countries ........................................... 47 5.1 Potential for adoption of renewable energy in developing countries ........... 47 Biomass ................................................................................................ 48 5.2 Barriers to adoption of renewable energy in developing countries .............. 51 Policy, Institutional and Legal Barriers................................................ 52 Financial Barriers ................................................................................. 52 Economic Barriers................................................................................ 53 Technical Barriers ................................................................................ 53 Information Barriers ............................................................................. 54 Capacity Barriers.................................................................................. 54 5.3 Experiences of Nordic countries.................................................................... 55 Biomass Energy--- Sweden .................................................................. 55 Wind Power - Denmark........................................................................ 56 Hydro Power and Other Renewables - Norway ................................... 57 Biomass CHP - Finland........................................................................ 58 Geothermal Energy - Iceland................................................................ 59 5.4 Potential role of Nordic Countries in facilitating uptake of renewable energy in developing countries..................................... 59 Possible policy options - selected examples......................................... 60 Nordic role............................................................................................ 62 Annex I Joint Declaration........................................................................................ 63 Annex II Geographical Coverage (IEA)................................................................... 64 Annex III Persons Contacted...................................................................................... 65 References: ...................................................................................................................... 66 6 Foreword Co-operation between energy and environmental division under the Nordic Council of Min- isters was established in 1996. The most important task of the Nordic group for Climate Change Issues is to look into international climate change policy issues linked to the UN Framework Convention on Climate Change and the potential for co-operation between the Nordic countries in this field. The Swedish institute – Stockholm Environment Institute – has prepared this report “Pro- motion of Renewable Energy Globally - Based on Johannesburg Follow-up”. The report presents and compares the definition of renewable energy sources and highlights the com- plexity of the debate on renewable energy. It focuses on what Nordic experiences can con- tribute to removing existing barriers and promoting the use of modern renewable energy sources in developing countries. The Nordic group for Climate Change does not necessarily share the views and conclusions of the report, but look at is as a contribution to our knowl- edge about promotion of renewable energy globally. Stockholm, May 2004 Olle Björk Chairman 7 8 Summary Renewable energy sources made their first real entry onto the international energy scene in the 1970s when the two worldwide oil crises occurred. Contribution by renewable energy sources to the world energy supply has since progressively increased. The importance of renewable energy was discussed in for example the 1981’s Nairobi UN Conference, as a means of achieving a sustainable future for our planet. Particularly in recent years, with the pursuit of a sustainable global pattern of energy supply and use, it has been widely ac- knowledged that renewable energy sources must play a key role. Beyond the acknowledgement of the significance of using renewable energy sources, there is also a need for nations to reach an international consensus on achievable targets for re- newable energy. Extensive international discussions in this regard were made during the World Summit on Sustainable Development (WSSD), held in Johannesburg in 2002. At this Summit, all the Nordic Countries and Switzerland together attempted to get the gather- ing to adopt the goal of increasing the share of renewable energy sources in the world’s to- tal primary energy supply (TPES) to 15% by the