Punishing success in tackling AIDS
Funders’ retreat could wipe out health gains in HIV affected countries
A retreat from international funding commitments for AIDS threatens to undermine the dramatic gains made in reducing AIDS-related illness and death in recent years, according to a new report by Médecins Sans Frontières (MSF) "Punishing Success? Early Signs of a Retreat from Committment to HIV/AIDS Care and Treatment."
The MSF report highlights how expanding access to HIV treatment has not only saved the lives of people with AIDS but has been central to reducing overall mortality in a number of high HIV burden countries in southern Africa in recent years. In Malawi and South Africa, MSF observed very significant decreases in overall mortality in areas where antiretroviral therapy (ART) coverage was high. Increased treatment coverage has also had an impact on the burden of other diseases, for example tuberculosis cases have been significantly reduced in Thyolo, Malawi and Western Cape province, South Africa.
"After almost a decade of progress in rolling out AIDS treatment we have seen substantial improvements, both for patients and public health. But recent funding cuts mean doctors and nurses are being forced to turn HIV patients away from clinics as if we were back in the 1990s before treatment was available," says Dr Tido von Schoen-Angerer, Director of MSF’s Access to Essential Medicines Campaign.
International support to combat HIV/AIDS is faltering as reflected in significant funding shortfalls. The board of directors of the Global Fund, a key financer of AIDS programmes in poor countries is unable to respond to countries’ needs and will next week in Addis Ababa vote whether or not to suspend all new funding proposals in 2010; and PEPFAR, the US AIDS programme is flatlining funding for two more years.
"The Global Fund must not cover up the deficit caused by its funders”, says von Schoen-Angerer. “The proposed cancellation of the 2010 funding round and other measures to slow the pace of treatment scale-up are punishing the successes of the past years and preventing countries from saving more lives."
In 2005, world leaders promised to support universal AIDS coverage by 2010, a promise that encouraged many African governments to launch ambitious treatment programmes.
"What about the promise made to people with AIDS? We gave them hope and life. We have to be there for them, we all knew from the beginning that this treatment was for life," says Olesi Ellemani Pasulani, MSF Clinical Officer in Thyolo District Hospital, Malawi. "Passing on the bill for treating AIDS to very poor countries would be a colossal betrayal."
Reducing funding at this time will leave people in urgent need of treatment to die prematurely and can lead to dangerous interruption of treatment. In Uganda, cuts have already begun to hit home with some facilities forced to stop treating new patients with HIV. Other countries are backing away from their earlier treatment coverage targets. In Free State, South Africa, past funding problems that have now been resolved led to disruption of treatment and a moratorium on treating new patients which resulted in an estimated 3,000 deaths.
The report provides evidence that, particularly in high HIV-prevalence settings, treating AIDS has a positive impact on other important health goals, in particular maternal and child health.
"A stronger commitment to other health priorities must happen, but this should be in addition to, not instead of, continued, increased commitment to HIV/AIDS," adds von Schoen-Angerer.
At present, over four million people living with HIV/AIDS in the developing world receive antiretroviral therapy. An estimated six million people who are in need of life-saving treatment, are still waiting for access. MSF operates HIV/AIDS programmes in around 30 countries and provides antiretroviral treatment to more than 140,000 HIV-positive adults and children.
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Showing posts with label G8 Summit. Show all posts
Showing posts with label G8 Summit. Show all posts
Currency Transaction levy (CTL) could finance countries to meet MDGs for Health
Currency Transaction levy (CTL) could finance countries to meet MDGs for Health
The pressure is mounting with Stamp Out Poverty taking a lead with organizations from around the world in advocating for a Currency Transaction Levy (CTL) for Health, which when applied to the four major currencies (US dollar, Yen, Euro and British pound) could potentially raise up to USD 33 billion a year. This will raise sufficient finances to meet the Millennium Development Goals (MDGs) for health, namely to reduce child mortality, improve maternal health and combat the major diseases by 2015 (MDG numbers 4, 5 and 6).
The estimates that the CTL for Health, when applied to the four major currencies could raise up to USD 33 billion a year, don’t distort the financial markets, and thus provide an additional, predictable and sustainable source for funding. More information is available online at: www.stampoutpoverty.org
Stamp Out Poverty is a network made up of more than 40 UK charities, trade unions and faith groups that has been working on measures to help fund the finance gap required to pay for the Millennium Development Goals and is increasingly concerned with how the substantial costs of climate change are going to be met. Its flagship campaign is for a Currency Transaction Tax (CTL), where it has lead the way in commissioning work to demonstrate the feasibility of the proposal when applied at a very low rate for the purpose of raising additional revenue for the alleviation of poverty.
In the run-up to the Group of Twenty countries (G-20) meeting later this month, the campaign is seeking endorsements from organizations in support of the Declaration of the Global Campaign for a Currency Transaction Levy for Health. This initiative is geared to push governments to take the necessary steps to introduce such a CTL levy, and make sure the benefits are dedicated to reach the health MDGs.
The Campaign acknowledges that neither allocated nor committed levels of Official Development Assistance (ODA) and domestic financing are sufficient to meet these MDG targets related to health, a situation compounded by the global financial crisis, which is severely affecting the poorest countries in the world.
The campaign call upon donors to keep their commitments to allocate 0.7% of their national budgets to ODA and that African countries, similarly, honour their Abuja Declaration pledge to commit at least 15% of their national budgets to health.
The campaign is committed to locating and harnessing additional, new and predictable income streams that are capable of meeting funding shortfalls. A Currency Transaction Levy (CTL) has the potential to raise revenue of at least USD 33 billion a year on a sustainable, predictable and on-going basis from the foreign exchange (fx) market, that has not been privy to levies or taxation to date.
The CTL is technically simple to implement: the foreign exchange market is fully electronic, revenue collection would be automatic, with no scope for avoidance.
At the proposed low rate of 0.005%, the foreign exchange market would not be adversely affected whilst at the same time significant income would be generated.
The CTL would be applied to the wholesale foreign exchange market only, and not affect the retail market nor have an impact on migrant remittances.
The proceeds of the CTL should benefit the health MDGs, most notably MDGs 4 and 5 on maternal and child health, which are seriously under-resourced, and Universal Access to HIV, TB and malaria prevention, treatment, care and support. The international community currently has the mechanisms in place to channel the funds and rapidly scale up interventions, (e.g., through the GAVI Alliance, the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) and UNITAID).
The campaign is so far supported by the Africa Japan Forum, Japan; PLUS Coalition, France; Health GAP, USA; Family Care International, USA; International HIV/AIDS Alliance, UK; International Civil Society Support, Netherlands; Partners in Health, USA; Physicians for Human Rights, USA; RESULTS, USA; Stamp Out Poverty, UK; Stop AIDS Campaign, UK; Treatment Action Group, USA among others.
Published in:
Central Chronicle, Madhya Pradesh, India
Media from Freedom, Nepal
Modern Ghana, Accra, Ghana
Citizen News Service (CNS)
Bihar and Jharkhand News, Bihar And Jharkhan
Banderas News
The pressure is mounting with Stamp Out Poverty taking a lead with organizations from around the world in advocating for a Currency Transaction Levy (CTL) for Health, which when applied to the four major currencies (US dollar, Yen, Euro and British pound) could potentially raise up to USD 33 billion a year. This will raise sufficient finances to meet the Millennium Development Goals (MDGs) for health, namely to reduce child mortality, improve maternal health and combat the major diseases by 2015 (MDG numbers 4, 5 and 6).
The estimates that the CTL for Health, when applied to the four major currencies could raise up to USD 33 billion a year, don’t distort the financial markets, and thus provide an additional, predictable and sustainable source for funding. More information is available online at: www.stampoutpoverty.org
Stamp Out Poverty is a network made up of more than 40 UK charities, trade unions and faith groups that has been working on measures to help fund the finance gap required to pay for the Millennium Development Goals and is increasingly concerned with how the substantial costs of climate change are going to be met. Its flagship campaign is for a Currency Transaction Tax (CTL), where it has lead the way in commissioning work to demonstrate the feasibility of the proposal when applied at a very low rate for the purpose of raising additional revenue for the alleviation of poverty.
In the run-up to the Group of Twenty countries (G-20) meeting later this month, the campaign is seeking endorsements from organizations in support of the Declaration of the Global Campaign for a Currency Transaction Levy for Health. This initiative is geared to push governments to take the necessary steps to introduce such a CTL levy, and make sure the benefits are dedicated to reach the health MDGs.
The Campaign acknowledges that neither allocated nor committed levels of Official Development Assistance (ODA) and domestic financing are sufficient to meet these MDG targets related to health, a situation compounded by the global financial crisis, which is severely affecting the poorest countries in the world.
The campaign call upon donors to keep their commitments to allocate 0.7% of their national budgets to ODA and that African countries, similarly, honour their Abuja Declaration pledge to commit at least 15% of their national budgets to health.
The campaign is committed to locating and harnessing additional, new and predictable income streams that are capable of meeting funding shortfalls. A Currency Transaction Levy (CTL) has the potential to raise revenue of at least USD 33 billion a year on a sustainable, predictable and on-going basis from the foreign exchange (fx) market, that has not been privy to levies or taxation to date.
The CTL is technically simple to implement: the foreign exchange market is fully electronic, revenue collection would be automatic, with no scope for avoidance.
At the proposed low rate of 0.005%, the foreign exchange market would not be adversely affected whilst at the same time significant income would be generated.
The CTL would be applied to the wholesale foreign exchange market only, and not affect the retail market nor have an impact on migrant remittances.
The proceeds of the CTL should benefit the health MDGs, most notably MDGs 4 and 5 on maternal and child health, which are seriously under-resourced, and Universal Access to HIV, TB and malaria prevention, treatment, care and support. The international community currently has the mechanisms in place to channel the funds and rapidly scale up interventions, (e.g., through the GAVI Alliance, the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM) and UNITAID).
The campaign is so far supported by the Africa Japan Forum, Japan; PLUS Coalition, France; Health GAP, USA; Family Care International, USA; International HIV/AIDS Alliance, UK; International Civil Society Support, Netherlands; Partners in Health, USA; Physicians for Human Rights, USA; RESULTS, USA; Stamp Out Poverty, UK; Stop AIDS Campaign, UK; Treatment Action Group, USA among others.
Published in:
Central Chronicle, Madhya Pradesh, India
Media from Freedom, Nepal
Modern Ghana, Accra, Ghana
Citizen News Service (CNS)
Bihar and Jharkhand News, Bihar And Jharkhan
Banderas News
Dramatic reduction in AIDS and non-AIDS mortality and morbidity: report
Dramatic reduction in AIDS and non-AIDS mortality and morbidity: report
dramatic reductions in TB and malaria incidence in HIV-positive individuals
The International AIDS Society (IAS) applauded the South African government for moving quickly to consider a more aggressive approach to scaling up provision of antiretroviral therapy (ART) for people living with HIV across the country, in the wake of strong evidence of individual and community benefits of earlier treatment presented at the 5th IAS Conference on HIV Pathogenesis, Treatment and Prevention, held two weeks ago in Cape Town. The South African Health Council is reviewing its ART roll-out plans over the coming weeks.
Recent reports from WHO and UNAIDS on the global AIDS pandemic have indicated that substantial increases in HIV investments over the past several years have expanded access to ART and HIV prevention interventions, reducing AIDS-related morbidity, mortality and HIV incidence in many high-burden countries. The success of the global response to AIDS has also catalyzed increased funding for tuberculosis and malaria.
Evidence presented at the 5th IAS Conference on HIV Pathogenesis, Treatment and Prevention, demonstrated dramatic reductions in TB and malaria incidence in HIV-positive individuals. Furthermore, a number of presentations urged that universal provision of antiretroviral therapy (ART) to people living with HIV would have a major impact on reducing HIV transmission, in addition to keeping people alive, well and productive in their communities.
IAS President Dr. Julio Montaner noted, "The evidence is absolutely clear. We must treat people earlier, and we must achieve universal access to ART for all people living with HIV who need it. Future generations will judge how quickly the global community responds to this urgent priority. We must move from an emergency response to a sustainably financed plan to control the HIV epidemic within a generation."
At their July 2005 summit in Gleneagles, G8 leaders committed to universal access to HIV prevention, care and treatment interventions by 2010, commitments which all UN Member States committed to at the end of that year. However, progress on these commitments was noticeably absent from this year's G8 communiqué, and most countries are not on target to meet universal access goals.
A report released by Medecins Sans Frontières (MSF) immediately prior to the Cape Town conference noted that delays, logistical failures and reductions in HIV financing are already having an impact on the availability of antiretroviral (ARV) drug supplies and other medical commodities. The report provided details of stock-outs of ARVs and other medical commodities in six African countries.
"G8 nations have committed billions of dollars in economic stimulus packages and bailouts for the very institutions that triggered this recession, while AIDS and other health care priorities have diminished on the political agenda", said Dr Montaner. "HIV is not in recession, and greater investments in HIV and other public health priorities are required from the international community, particularly given that ART is now known to have preventive as well as therapeutic benefits." He added, "Health is a fundamental prerequisite of global development, not a fringe benefit which can be cut during difficult economic times."
dramatic reductions in TB and malaria incidence in HIV-positive individuals
The International AIDS Society (IAS) applauded the South African government for moving quickly to consider a more aggressive approach to scaling up provision of antiretroviral therapy (ART) for people living with HIV across the country, in the wake of strong evidence of individual and community benefits of earlier treatment presented at the 5th IAS Conference on HIV Pathogenesis, Treatment and Prevention, held two weeks ago in Cape Town. The South African Health Council is reviewing its ART roll-out plans over the coming weeks.
Recent reports from WHO and UNAIDS on the global AIDS pandemic have indicated that substantial increases in HIV investments over the past several years have expanded access to ART and HIV prevention interventions, reducing AIDS-related morbidity, mortality and HIV incidence in many high-burden countries. The success of the global response to AIDS has also catalyzed increased funding for tuberculosis and malaria.
Evidence presented at the 5th IAS Conference on HIV Pathogenesis, Treatment and Prevention, demonstrated dramatic reductions in TB and malaria incidence in HIV-positive individuals. Furthermore, a number of presentations urged that universal provision of antiretroviral therapy (ART) to people living with HIV would have a major impact on reducing HIV transmission, in addition to keeping people alive, well and productive in their communities.
IAS President Dr. Julio Montaner noted, "The evidence is absolutely clear. We must treat people earlier, and we must achieve universal access to ART for all people living with HIV who need it. Future generations will judge how quickly the global community responds to this urgent priority. We must move from an emergency response to a sustainably financed plan to control the HIV epidemic within a generation."
At their July 2005 summit in Gleneagles, G8 leaders committed to universal access to HIV prevention, care and treatment interventions by 2010, commitments which all UN Member States committed to at the end of that year. However, progress on these commitments was noticeably absent from this year's G8 communiqué, and most countries are not on target to meet universal access goals.
A report released by Medecins Sans Frontières (MSF) immediately prior to the Cape Town conference noted that delays, logistical failures and reductions in HIV financing are already having an impact on the availability of antiretroviral (ARV) drug supplies and other medical commodities. The report provided details of stock-outs of ARVs and other medical commodities in six African countries.
"G8 nations have committed billions of dollars in economic stimulus packages and bailouts for the very institutions that triggered this recession, while AIDS and other health care priorities have diminished on the political agenda", said Dr Montaner. "HIV is not in recession, and greater investments in HIV and other public health priorities are required from the international community, particularly given that ART is now known to have preventive as well as therapeutic benefits." He added, "Health is a fundamental prerequisite of global development, not a fringe benefit which can be cut during difficult economic times."
North Indian village boy shared J8 summit experience
North Indian village boy shared J8 summit experience
Alka Pande
- Education till class twelfth should be compulsory for each child in India.
- Each village in the country should have not only primary schools but also higher secondary schools.
- Teachers should teach with affection and support so that students do not feel scared of them in putting up their queries.
These are the suggestion which fourteen year old Narendra Kumar put forward in the J8 Summit in recently concluded in Rome. As the acronym suggests, J8 is the junior version of G8, in which children prepare a proposal of what they expect from their respective governments. Narendra was one of the three young boys who had been chosen to represent India at the J8 summit in Rome. The other two boys were from Tamil Nadu (south) and Orissa (north east). After coming back from the summit, Narendra shared his once in a life-time experience with the media persons and elaborated upon some of his suggestions at the summit.
A student of class eleventh, Narendra belongs to a remote village in the most populous north Indian state of Uttar Pradesh. The village Grampure Gosai, located in Rae Bareli – the parliamentary constituency of UPA (United Progressive Alliance) Chairperson and All India Congress Committee president Sonia Gandhi – has no electricity. Narendra and boys and girls like him have always studied in the dim light of kerosene lamps.
The selection of Narendra for this prestigious event dates back to November 2008 when UNICEF held a Children’s Assembly in the state of Uttar Pradesh. The village children held a mock assembly in the real hall of Uttar Pradesh legislative assembly, in which Narendra was unanimously chosen to act like Speaker. His talent was spotted by a state-based voluntary organisation Lokmitra – wor
king for right of all children to free education with quality and equality.
Both, UNICEF and Lokmitra polished the inherent talent of Narendra to take it to a level enabling him to represent this most backward northern state of India. Since Narendra could neither understand nor speak fluent English, a Lokmitra representative accompanied him to Rome and assisted him as an interpreter.
What makes Narendra’s achievement worth mentioning is his humble background. His father is a labourer in the village earning measly daily wages. The village has no electricity and no other
facility like clean drinking water or medical and health services.
Coming from a family of 12 members, Narendra has four brothers and five sisters, of which six siblings are older to him. Incidentally, Narendra is the first one in his family to have reached and cleared class eleventh and most probably he is the first one in the village to have visited another country. A follower of Sonia Gandhi, Narendra wants to become a teacher because he feels that education is an essential tool for empowerment.
Alka Pande
(The author is a senior Journalist)
Alka Pande
- Education till class twelfth should be compulsory for each child in India.- Each village in the country should have not only primary schools but also higher secondary schools.
- Teachers should teach with affection and support so that students do not feel scared of them in putting up their queries.
These are the suggestion which fourteen year old Narendra Kumar put forward in the J8 Summit in recently concluded in Rome. As the acronym suggests, J8 is the junior version of G8, in which children prepare a proposal of what they expect from their respective governments. Narendra was one of the three young boys who had been chosen to represent India at the J8 summit in Rome. The other two boys were from Tamil Nadu (south) and Orissa (north east). After coming back from the summit, Narendra shared his once in a life-time experience with the media persons and elaborated upon some of his suggestions at the summit.
A student of class eleventh, Narendra belongs to a remote village in the most populous north Indian state of Uttar Pradesh. The village Grampure Gosai, located in Rae Bareli – the parliamentary constituency of UPA (United Progressive Alliance) Chairperson and All India Congress Committee president Sonia Gandhi – has no electricity. Narendra and boys and girls like him have always studied in the dim light of kerosene lamps.
The selection of Narendra for this prestigious event dates back to November 2008 when UNICEF held a Children’s Assembly in the state of Uttar Pradesh. The village children held a mock assembly in the real hall of Uttar Pradesh legislative assembly, in which Narendra was unanimously chosen to act like Speaker. His talent was spotted by a state-based voluntary organisation Lokmitra – wor
king for right of all children to free education with quality and equality. Both, UNICEF and Lokmitra polished the inherent talent of Narendra to take it to a level enabling him to represent this most backward northern state of India. Since Narendra could neither understand nor speak fluent English, a Lokmitra representative accompanied him to Rome and assisted him as an interpreter.
What makes Narendra’s achievement worth mentioning is his humble background. His father is a labourer in the village earning measly daily wages. The village has no electricity and no other
facility like clean drinking water or medical and health services.Coming from a family of 12 members, Narendra has four brothers and five sisters, of which six siblings are older to him. Incidentally, Narendra is the first one in his family to have reached and cleared class eleventh and most probably he is the first one in the village to have visited another country. A follower of Sonia Gandhi, Narendra wants to become a teacher because he feels that education is an essential tool for empowerment.
Alka Pande
(The author is a senior Journalist)
Did G8 Summit provide answers to India's Energy Crisis?
tDid G8 Summit provide answers to India's Energy Crisis?
Dr Rahul Pandey
The recently concluded G8 summit in Japan placed rising fuel and food prices, besides climate change, at the top of its agenda. While fuel crisis is enough to stoke panic, it has also partly induced the food crisis due to both high fuel cost of producing and transporting food as well vast bio-fuel cultivation in the West. With unabatedly rising price of oil and uncertainty about its reserves, energy security is today every nation's concern.
This also reflects in the desperation with which the Indian government is pushing ahead nuclear deal with the US. These developments raise some critical questions:
- Can energy policy deliver both energy security and climate change mitigation goals?
- Is nuclear energy the main alternative to fossil fuels? How competitive can renewable energy options become?
- Can the poor have access to modern energy services?
Here I attempt to answer these questions for India in light of current and prospective international trends in technologies, investments and policy. The general arguments hold good also for other countries facing similar uncertain energy future.
We are today in a historical phase in which major global trends in economy, technology, fuel, and environment are showing an interesting convergence. New styles of businesses have made customer responsiveness very important for suppliers and service providers. This means efficient supply chain-wide delivery, rather than just a single link like production, is strategically critical. Greater investments are being pumped in development of technologies that are smaller scale and mass-assembled rather than large scale and centrally installed. Fossil fuels are becoming scarcer. The concerns of climate change globally and of domestic pollutions in developing countries have never been more severe. All these trends are reinforcing each other and driving a radical shift in economics of several industries. Let us look at what they foretell for energy. In the remaining paragraphs I will first lay out the goals of energy policy, then review global trends of energy technologies and fuels, and finally outline the desired policy for India.
The right energy policy for a nation must aim to satisfy energy needs of current and future generations of all citizens in an affordable manner without adverse impact on the environment. As explained earlier, in today's world, mere domestic availability of a particular fuel may not ensure access of modern energy services to all. A nation requires a range of resources in the entire energy supply chains -- primary energy, financial capital, material and human capabilities for development and manufacture of relevant technological systems, and logistical infrastructure for delivery -- to make available useful energy to its citizens at affordable costs over a long period of time.
Bright prospects are lurking globally for renewable energy as centralized conventional technologies are declining, natural gas faces uncertainty beyond the next 2-3 decades, and environmental concerns are intensifying. Prominent EU countries and Japan have already begun serious initiatives to transition to low-carbon society by 2050 for which the state is providing support to large scale development and commercialization of renewable energy technologies. Thanks to rapid increase in R&D investments and installed cumulative capacity globally, renewable energy systems based on wind, solar and biomass are witnessing high learning rates as reflected in progress ratios of 70-90% (implying 10-30% fall in capital costs for every doubling of capacity). As most of these systems are viable at small scale, they hold promise also for the rural and remote regions of developing countries where majority of the poor live. It is clear that the countries who are making serious investment in technological and delivery infrastructure aspects of such options now will gain distinct advantage in the future. They will be able to deliver cheaper and cleaner energy to their people.
On the other hand, conventional large-scale options based on coal, nuclear and large hydro are facing declining trends and saturating costs. For instance, over the past two decades share of coal in electricity generation markets of North America, Europe and former USSR has eroded by 20-40% in favour of natural gas and, to some extent, renewables. Similar erosion has happened to big dams as they have imposed severe costs on local communities and environment everywhere. As for the nuclear power, its poor cost competitiveness has been demonstrated in the case of Indian heavy water reactors. No new nuclear power capacity has been installed in the US for the past three decades owing mainly to unresolved problems of nuclear waste handling and high costs. This is despite the billions of dollars received as subsidy through the Price Anderson Act. Given the high capital intensity and long life of nuclear power plants, India (or any other country) will be locking itself to huge resource commitments for the future if it pushes ahead with its ongoing nuclear enthusiasm. Needless to say, these commitments will deter us from exploring superior alternatives.
Clean coal technologies are being explored as cleaner alternatives, but their high capital cost and longer term uncertainty of coal reserves make them a candidate for temporary solution alone. Same goes for natural gas based options that have low capital cost but suffer from uncertain future gas prices. Fuel cell, run on hydrogen produced from natural gas and other alternatives, is likely to emerge as a competitive option in both transport and power sectors. Like renewable energy systems, they too will be viable at small, decentralized scale.
In the final analysis, energy policy aimed at long term affordability, clean environment, sustainability and security must be centered on a wide mix of renewable energy options -- solar, wind, small-hydel, biomass and others. Wide mix of renewables is necessary to ensure reliability of supplies and avoid possible fallout of dependence on single option like biofuels.
Therefore, to begin with, India must change its energy strategy towards one that places the highest priority on renewable energy by committing huge resources for up-scaling infrastructure for manufacture and supply of technologies for production of electricity, heat and other end-use energy from solar, wind, biomass and small-hydel resources. In addition, state support must be provided to build dispersed infrastructure in rural areas for delivery and maintenance of these systems. Systems based on clean coal and natural gas, given their current domestic availability and low capital cost respectively, can play stopgap role in the transitory phase until delivery infrastructure based on renewables is put in place.
In addition to changing energy supply mix, drastic end-use and life-style changes that cut down energy use will be necessary. Examples are: new urban planning with homes closer to offices, excess public transport capacities, and promotion of local markets and local materials to avoid long distance transport. But these changes cannot come by market economics alone. Governments need to intervene now to make them economically attractive in the future.
Dr Rahul Pandey
The author is a former faculty member of Indian Institute of Technology (IIT) Bombay and Indian Institute of Management (IIM) Lucknow, and is currently a member of a start up venture that develops mathematical models for planning and policy analysis. His doctoral and post-doctoral research work was related to energy and environment policy and climate change. He can be contacted at rahulanjula@gmail.com
Published in:
The Bangladesh Today, Dhaka, Bangladesh
The Daily News, Colombo, Sri Lanka
Thai Indian News, Bangkok, Thailand
News Track India, Delhi
Digg.com
Assam Times, Guwahati, Assam
Orissa News, Bhubhneshwar, Orissa
News Blaze, USA
Media for Freedom, Kathmandu, Nepal
Asian Tribune, Thailand/ Sri Lanka
The Daily India, Lucknow, UP
The Seoul Times, Seoul, South Korea
Khabar Express, Bikaner, Rajasthan
Central Chronicle, Madhya Pradesh/ Chhattisgarh
Dr Rahul Pandey
The recently concluded G8 summit in Japan placed rising fuel and food prices, besides climate change, at the top of its agenda. While fuel crisis is enough to stoke panic, it has also partly induced the food crisis due to both high fuel cost of producing and transporting food as well vast bio-fuel cultivation in the West. With unabatedly rising price of oil and uncertainty about its reserves, energy security is today every nation's concern.
This also reflects in the desperation with which the Indian government is pushing ahead nuclear deal with the US. These developments raise some critical questions:
- Can energy policy deliver both energy security and climate change mitigation goals?
- Is nuclear energy the main alternative to fossil fuels? How competitive can renewable energy options become?
- Can the poor have access to modern energy services?
Here I attempt to answer these questions for India in light of current and prospective international trends in technologies, investments and policy. The general arguments hold good also for other countries facing similar uncertain energy future.
We are today in a historical phase in which major global trends in economy, technology, fuel, and environment are showing an interesting convergence. New styles of businesses have made customer responsiveness very important for suppliers and service providers. This means efficient supply chain-wide delivery, rather than just a single link like production, is strategically critical. Greater investments are being pumped in development of technologies that are smaller scale and mass-assembled rather than large scale and centrally installed. Fossil fuels are becoming scarcer. The concerns of climate change globally and of domestic pollutions in developing countries have never been more severe. All these trends are reinforcing each other and driving a radical shift in economics of several industries. Let us look at what they foretell for energy. In the remaining paragraphs I will first lay out the goals of energy policy, then review global trends of energy technologies and fuels, and finally outline the desired policy for India.
The right energy policy for a nation must aim to satisfy energy needs of current and future generations of all citizens in an affordable manner without adverse impact on the environment. As explained earlier, in today's world, mere domestic availability of a particular fuel may not ensure access of modern energy services to all. A nation requires a range of resources in the entire energy supply chains -- primary energy, financial capital, material and human capabilities for development and manufacture of relevant technological systems, and logistical infrastructure for delivery -- to make available useful energy to its citizens at affordable costs over a long period of time.
Bright prospects are lurking globally for renewable energy as centralized conventional technologies are declining, natural gas faces uncertainty beyond the next 2-3 decades, and environmental concerns are intensifying. Prominent EU countries and Japan have already begun serious initiatives to transition to low-carbon society by 2050 for which the state is providing support to large scale development and commercialization of renewable energy technologies. Thanks to rapid increase in R&D investments and installed cumulative capacity globally, renewable energy systems based on wind, solar and biomass are witnessing high learning rates as reflected in progress ratios of 70-90% (implying 10-30% fall in capital costs for every doubling of capacity). As most of these systems are viable at small scale, they hold promise also for the rural and remote regions of developing countries where majority of the poor live. It is clear that the countries who are making serious investment in technological and delivery infrastructure aspects of such options now will gain distinct advantage in the future. They will be able to deliver cheaper and cleaner energy to their people.
On the other hand, conventional large-scale options based on coal, nuclear and large hydro are facing declining trends and saturating costs. For instance, over the past two decades share of coal in electricity generation markets of North America, Europe and former USSR has eroded by 20-40% in favour of natural gas and, to some extent, renewables. Similar erosion has happened to big dams as they have imposed severe costs on local communities and environment everywhere. As for the nuclear power, its poor cost competitiveness has been demonstrated in the case of Indian heavy water reactors. No new nuclear power capacity has been installed in the US for the past three decades owing mainly to unresolved problems of nuclear waste handling and high costs. This is despite the billions of dollars received as subsidy through the Price Anderson Act. Given the high capital intensity and long life of nuclear power plants, India (or any other country) will be locking itself to huge resource commitments for the future if it pushes ahead with its ongoing nuclear enthusiasm. Needless to say, these commitments will deter us from exploring superior alternatives.
Clean coal technologies are being explored as cleaner alternatives, but their high capital cost and longer term uncertainty of coal reserves make them a candidate for temporary solution alone. Same goes for natural gas based options that have low capital cost but suffer from uncertain future gas prices. Fuel cell, run on hydrogen produced from natural gas and other alternatives, is likely to emerge as a competitive option in both transport and power sectors. Like renewable energy systems, they too will be viable at small, decentralized scale.
In the final analysis, energy policy aimed at long term affordability, clean environment, sustainability and security must be centered on a wide mix of renewable energy options -- solar, wind, small-hydel, biomass and others. Wide mix of renewables is necessary to ensure reliability of supplies and avoid possible fallout of dependence on single option like biofuels.
Therefore, to begin with, India must change its energy strategy towards one that places the highest priority on renewable energy by committing huge resources for up-scaling infrastructure for manufacture and supply of technologies for production of electricity, heat and other end-use energy from solar, wind, biomass and small-hydel resources. In addition, state support must be provided to build dispersed infrastructure in rural areas for delivery and maintenance of these systems. Systems based on clean coal and natural gas, given their current domestic availability and low capital cost respectively, can play stopgap role in the transitory phase until delivery infrastructure based on renewables is put in place.
In addition to changing energy supply mix, drastic end-use and life-style changes that cut down energy use will be necessary. Examples are: new urban planning with homes closer to offices, excess public transport capacities, and promotion of local markets and local materials to avoid long distance transport. But these changes cannot come by market economics alone. Governments need to intervene now to make them economically attractive in the future.
Dr Rahul Pandey
The author is a former faculty member of Indian Institute of Technology (IIT) Bombay and Indian Institute of Management (IIM) Lucknow, and is currently a member of a start up venture that develops mathematical models for planning and policy analysis. His doctoral and post-doctoral research work was related to energy and environment policy and climate change. He can be contacted at rahulanjula@gmail.com
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