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Carbon Markets Need to Help the Poor

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The global carbon credit trading schemes emanating from the Kyoto Protocol have created a multi-billion dollar market – the global carbon market was worth US $30 billion in 2007 (World Bank) – and represents one of the fastest growing business opportunities in the world. The bulk of this trading is with the European Union’s emissions trading scheme, some US $25 billion. But the big problem to date has been most of this investment is enriching stock brokers, and not the poor.

And this is a huge opportunity missed, as some point out: “These numbers are relevant because they demonstrate that the carbon market has become a valuable catalyst for leveraging substantial financial flows for clean energy in developing countries,” according to Warren Evans, the World Bank’s director of environment.

And the way to do this is through the Clean Development Mechanism (CDM) – where wealthy countries can meet their greenhouse gas targets by investing in clean energy projects in the South. But so far, it has been criticised for spending 4.6 billion Euros on projects that would have cost just 100 million Euros if implemented by development agencies.

But if done right, the CDM could become directly beneficial to the so-called Bottom of the Pyramid (BOP) – the four billion who live on less than US $2 a day. The CDM allows developed countries to offset their greenhouse gas emissions by paying projects targeting the poor to develop clean energy, or to create what are called carbon sinks (planting trees for example), to cut global emissions.

One mechanism to make all of this work is the CDM Bazaar: officially launched in September 2007, it is about linking together buyers and sellers. This is a place where people with business ideas or projects can go for start-up funding. It is also a place to share information, contacts and learn about how to tap the market.

And two Southern innovators are showing what can be achieved by tapping the power of the sun to help the poor.

One such initiative In India, owned by Mr. Deepak Gadhia and Dr Mrs. Shirin Gadhia, is targeting the 63 per cent of the BOP market that is with rural populations. All of these people need affordable and clean energy if their lives are to improve: most currently use firewood and kerosene for cooking and heating. The company Gadhia Solar is building and selling solar steam cook stoves in rural villages. The giant solar dishes which resemble satellite TV dishes, can fry and roast using the sun and come in Do-it-Yourself kits. The enormous silver dishes beam concentrated sunlight on to a black plate on the oven, reaching temperatures of over 450 Celsius.

In Morocco, the company Tenesol, an electric supply co-operative society, is using solar power to bring electricity to 60,000 poor households in 29 provinces. And it is making Morocco a world leader in the use of solar for rural electricity.

Each house is equipped with a solar home system comprising a solar panel, battery and controller. It is powerful enough to light four to eight lamps, and support a television, radio or mobile phone charger.

Customers pay a connection fee of US $80, and then a monthly service fee of between US $7.50 and US $17.50. The fee competes well with what rural households were spending on candles and batteries.

The initial outlay for equipment is mostly paid for by investors, with the hope that the money will be made back on the service fees.

Tenesol hopes to bring electricity to 101,500 households, and also wire them up and provide light bulbs.

Resources

  • More on emissions trading: Click here
  • UNDP has produced a free users guide introduction to the Clean Development Mechanism.
    Website: http://www.undp.org/
  • South South North has also produced a Practitioners’ Practical Toolkit.
    Website: http://www.cdmguide.com/

By David South, Development Challenges, South-South Solutions

Published: March 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP’s South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South’s innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=DqmXBgAAQBAJ&dq=development+challenges+march+2008&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmarch2008issue-44443163

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Southern Innovator Issue 5

Launched in May 2011, the new global magazine Southern Innovator (ISSN 2222-9280) is about the people across the global South shaping our new world, eradicating poverty and working towards the achievement of the Millennium Development Goals (MDGs). 

Team | Southern Innovator Phase 1 Development (2010 – 2015)

They are the innovators.

Follow the magazine on Twitter @SouthSouth1. 

Southern Innovator Issue 1

Southern Innovator Issue 2

Southern Innovator Issue 3

Southern Innovator Issue 4

Southern Innovator Issue 5

If you would like hard copies of the magazine for distribution, then please contact the United Nations Office for South-South Cooperation (UNOSSC)(https://www.unsouthsouth.org/2014/12/25/southern-innovator-magazine/).

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Southern Innovator in Southasiadisasters.net

Innovations in Green Economy: Top Three Agenda

c22e6-innovations20in20green20economy20top20three20agenda20december202013

South-South Cooperation for Cities in Asia

South-South Cooperation for Cities July 2014

Lima To Delhi: What Can Be Learned On Urban Resilience?

Published: March 2015

Publisher: Southasiadisasters.net

Issue No. 128, March 2015

Theme: Challenges of Urban Resilience in India

Fast-growing cities and urban areas in the global South can be vulnerable because they lack the web of structures and institutions that enable more long-established cities to mitigate risks and, when a disaster does strike, to bounce back quickly. But thanks to many new technologies, and some smart new thinking, it is possible to bring resilience to even the poorest and most deprived urban communities.

The essence of resilience is to build into plans and daily activities a
community’s ability to weather any disaster, small or large. All cities, rich or poor, can experience a disaster of some sort, be it weather, civil unrest, war, earthquakes, shortages, or economic, financial and health crises. New technologies make it possible for all cities, no matter how poor and overcrowded, to build in urban resilience. The ubiquity of mobile phones introduces a powerful city and urban planning tool. Mapping chaotic and unplanned areas is already underway in many cities of the global South (in Brazil and Kenya for example (http://tinyurl.com/qgba8kb).

Impressively, innovators in the South are using affordable microelectronics in the form of mobile phones and laptops to gather data and map it. This computing capability was once the sole domain of big information technology companies such as IBM. Now, a single laptop computer combined with a smartphone equipped with the right software can manage a large urban area, a task that once required rooms full of computers. The data can then be used to manage growth today and re-build after a disaster. Any excuse not to be resilient has been wiped out with this technological leap.

But how to deal with the common reality of feeling overwhelmed by the many obstacles to rational planning and building for urban growth in the South? Innovators have stepped in to take matters into their own hands with simple construction technologies as the solution. One example is the Moladi system of recycled plastic moulds (moladi.net). Anybody can master this simple building technique, as the mortar-filled moulds are designed to fit easily together to construct an earthquake-resistant, beautiful home.

This approach has the advantage of bypassing the failings of authorities to enforce building codes and standards in poor, urban communities, creating safer places to live and preventing the growth of unregulated shanty towns at risk to fire and earthquakes.

Others have found social ways to organize people, even in the most desperate of conditions, providing services and laying down the groundwork for an upgrading of an urban area to improve living conditions and long-term opportunities. The concept of ‘cities for all’ has inspired many to re-energize civic organizations and networking in poor areas to ensure they are not left out of economic growth. In Colombia, a famous example of this is the escalator in the city of Medellin, which connects a hillside slum to the centre of the city, opening up economic opportunities to all (http://tinyurl.com/nm47d3u).

Still more exciting, new technologies are in the works to simplify construction of major infrastructure and new buildings. A future city will be able to gather extensive data on an expanding urban area, make detailed development plans with architects and engineers, and then have robots and 3D fabricating machines quickly lay down infrastructure and erect buildings. Sounds far-fetched?
Well, in China one company recently used a 3D machine to make 10 houses in a single day (http://www.yhbm.com/index.aspx).

An infographic from Southern Innovator’s fourth issue (http://
tinyurl.com/m9vfwur) shows 10 ways any urban area – either planned or unplanned – can build in resilience. All are proven approaches from cities in the global South.

Southern Innovator’s upcoming sixth issue will explore the interplay
of science, technology and innovation in the global South and how people are making the most of 21st century advances to increase wealth and improve human development. Hopefully, all of this innovation will lead to more resilient cities in the future!


– David South,
Editor, Southern Innovator, UNOSSC

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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US $450 Million Pledged for Green Economy Investments at Kenyan GSSD Expo

By David South, Development Challenges, South-South Solutions

New UNOSSC banner Dev Cha 2013

SOUTH-SOUTH CASE STUDY 

Innovators working in the global green economy could benefit from over US $450 million in investment recently pledged at the UN’s Global South-South Development Expo (GSSD Expo) held in Nairobi, Kenya.

A combination of green investors, businesses, governments and others came together at the UN Environment Programme’s (UNEP) headquarters in the Kenyan capital from 28 October to 1 November 2013 to share solutions and strike deals and partnerships.

The event represented a significant turning point in awareness of the role played by the global South’s innovators in global development and growing economies. The quantity of pledges and investment deals struck at the Expo bodes well for the future of south-south solution sharing.

Organized by the UN’s Office for South-South Cooperation in UNDP (UNOSSC) (southsouthexpo.org) and hosted by UNEP (unep.org) under the theme “Building inclusive green economies”, the Global South-South Development Expo (GSSD Expo) is the world’s biggest event for development solutions created in the South for the South.

“The theme of this year’s Expo is fitting in that Southern countries have both the opportunity and the obligation to pursue a ‘smarter’ development course than their predecessors,” said General Assembly President John Ashe.

Examples of the investment deals struck include helping to build organic fertilizer factories and constructing solar power plants in Kenya, and growing green business ventures for women in Egypt.

South-South cooperation is the exchange of resources, technology and knowledge between developing countries. Today, over US $5 trillion in currency reserves are held by countries of the global South. They also make up 47 per cent of global trade.

Tapping this rich resource is an unparalleled economic development opportunity and could be one of the main engines of growth in the years ahead, the Expo organizers believe.

“As so many stories that we have heard this week demonstrate, South-South Cooperation is playing a vital role in facilitating this global transition,” said UN Under-Secretary-General and UNEP Executive Director Achim Steiner.

“Not only are these local, national and regional efforts producing positive results, but they are overcoming barriers, building new partnerships, creating new finance mechanisms, generating knowledge, sharing information, providing training and capacity building in areas and sectors that are critical for a global transition to a low carbon, resource efficient and inclusive economy,” he added.

As an example of how solutions are shared and deals are struck, more than 40 companies were successfully matched and held business negotiations using the Expo’s South-South Global Assets and Technology Exchange (SS-GATE). An online match-making service bringing together innovative companies with the knowledge and funding they need to grow, the SS-GATE was able to get 148 companies to list their projects on the SS-GATE web-platform during an Expo event.

For the first time in its history, the Expo garnered a strong online presence with the help of volunteers who collaborated remotely around the world on social media. The event was so popular that it trended on Twitter in Kenya, meaning that the message of the value and growing scope of South-South cooperation reached the next generation of development practitioners, entrepreneurs, environmentalists, thinkers and leaders.

Also at the Expo, the fourth issue of Southern Innovator magazine (southerninnovator.org) had its official launch. Southern Innovator Issue 4 visits the new cities being built to tackle the challenges of a rapidly urbanizing 21st-century world. The magazine also highlights some of the solutions being devised to the challenges people face as the world becomes a majority urban place.

Some innovators are building new cities from scratch, applying the latest thinking and hard-wiring in cutting-edge information technologies and innovative environmental measures to create “smart” cities and eco-cities. Architects are designing and refining homes that are beautiful and functional, easy to build, affordable and conserve energy. Social entrepreneurs are innovating ways to create liveable and socially inclusive urban areas, often in places where planning has been scant and where incomes are very low. All the stories featured in the magazine were chosen for their focus on improving human development and for their ingenuity and fresh thinking.

Southern Innovator champions a 21st-century global innovator culture. It is being distributed through the United Nations’ network and partners and reaches some of the world’s poorest and remotest places, as well as the vibrant but stressed growing global megacities. It is hoped the magazine will inspire budding innovators with its mix of stories, essential information, facts and figures, images and graphics.

Resources

1) Global South-South Development Expo: The Global South-South Development Expo (GSSD Expo) is the FIRST EVER Expo solely from the South and for the South. It showcases successful Southern-grown development solutions (SDSs) to address the need to meet the Millennium Development Goals (MDGs). Website: http://www.southsouthexpo.org/

2) Southern Innovator online story archive: Organized by theme, the story archive is a treasure trove of innovation stories and resources from the global South stretching back to 2006. Website: southerninnovator.org

3) Southern Innovator on Scribd: Archived copies of the full-color, 60-page magazine can be downloaded here. Website: http://www.scribd.com/SouthernInnovator.

4) Southern Innovator on Twitter: Catch Southern Innovator’s Tweets and keep on top of a growing global network of innovators. Follow @SouthSouth1


This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021