FinancialAdvisor's College Class (FACC)

[FinancialAdvisor]

Loans to develop renewable energy sources urged

Loans to develop renewable energy sources urged
Posted 03:22am (Mla time) Mar 07, 2005
By Blanche Rivera
Inquirer News Service

Editor's Note: Published on page A20 of the Mar. 7, 2005 issue of the Philippine Daily Inquirer

THE HEAD of the international environmental group Greenpeace yesterday urged the World Bank and Asian Development Bank, two of the world's biggest financial institutions, to channel their loans toward the development of renewable energy sources.

Greenpeace International director Gerd Leipold said the World Bank spent more for non-renewable fossil fuels than on alternative energy even as it made pronouncements against the use of fossil fuels.

The World Bank lends $17 for fossil fuel use for every $1 that it lends for renewable sources of energy, according to Greenpeace.

"It's not enough that the World Bank and ADB say something against climate change. They need to change their lending practices as well," Leipold said at a forum sponsored by the Foreign Correspondents Association of the Philippines.

Leipold warned that Asia, the biggest cause of global climate change, was expected to be hit hard by changes in the climate.

He identified China, India, Japan and South Korea as among the top 10 emitters of greenhouse gases in the world. Of the four, only Japan has signed the Kyoto Protocol.

Greenpeace also said the Philippine government should do more to promote renewable energy sources as Asia's initiatives were crucial in fighting global climate change.

While the Philippines plays "a very positive role" in promoting the Kyoto Protocol, the country still has a lot to do to promote compliance with the agreement, according to Leipold.

"It's always easier to make big statements internationally. Domestically, the Philippines can do more and should do much more," he said.

Red Constantino, Greenpeace campaign director for energy in Southeast Asia, cited the country's wind potential for 70,000 megawatts of energy, which remains untapped due to the government's lack of policy initiatives on renewable energy sources.

Constantino said that a wind potential of only 40 MW was being developed for use in Ilocos Norte province, identified as one of the regions with highest wind potential.

"It's ridiculous compared with the 70,000 MW-wind potential of the country. But we won't be able to reach that unless the government sends signals to investors that we are for these renewable sources of energy," he said.

Other provinces like Negros, Romblon and Guimaras hold promise as wind-powered energy sources, according to Costantino.

Negros and Ilocos can match the wind potential of turbines in Germany and Denmark, leaders in wind-generated power in the world, he said.

The government should create an investment climate that welcomes private companies using or investing in alternative energy sources instead of just opening up to fossil fuel, according to Constantino.

"The Philippines should harness its tremendous wind potential. Not only will this reduce the country's dependence on fossil fuels, it would also mean massive investments and jobs for the poor and the protection of the environment," Leipold said.


LINK: http://news.inq7.net/nation/index.php?index=1&story_id=29646