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Linking Investors to Renewable Energy Opportunities in Emerging Markets Is Key to COP21 Success
By Peyton Fleming
Some of the ingredients for catalyzing clean energy investments in Asia, Africa and other emerging markets have their own unique nomenclature—“blend 2.0," “de-risking" and “national investment catalogues." Yet there is a more straightforward recipe: A mix of national clean energy policies with the needs of institutional investors looking for opportunities that are safe and relatively profitable.
To date, creating this relatively simple blend has been largely elusive. While clean energy investments in developing countries are growing at a rapid clip, it has been done with minimal help from pension funds, insurers and other institutional investors who manage enormous amounts of capital—tens of trillions of dollars among U.S. institutional investors alone.
But the momentum could be changing as clean energy environments are ripening worldwide.
On the heels of another year of record high temperatures and a historic global climate agreement in Paris, investors are opening their eyes to the urgency of shifting significantly more capital to clean energy in developed and developing countries. Developing countries, whether in Asia, Africa or Latin America, are especially in need of capital because their economies, populations and overall carbon footprints are growing far more quickly compared to Europe, the U.S. and other industrialized countries.
Barring major changes, energy-related pollution in developing countries will be more than double that from developed countries by 2040, according to the U.S. Energy Information Administration. The fact that these countries are also working feverishly to provide electricity to the more than one billion people who have no access to power today further exacerbates the challenge.
“If you don't have access to energy, you're not going to see economic growth," said Rachel Kyte, CEO of Sustainable Energy for All, speaking to 500 global investors at the Investor Summit on Climate Risk: Advancing the Clean Trillion, last month at the United Nations. "This has to be a just energy transition where everyone can imagine they will prosper."
For institutional investors, the opportunities are especially enormous after the recent climate accord in Paris, which aims to limit average global temperature rise to well below 2 degrees Celsius. The linchpin of the agreement is the carbon reducing commitments of 187 countries and their pledge to ratchet up those efforts in the years ahead.
But which of these countries have the necessary policy frameworks in place that will induce institutional investors to open their wallets? Is India truly ready to attract the sizeable investment flows it will need to become a solar super power by 2022? To what extent are Sub-Sahara African countries open for business to ever-cheaper wind and solar power over costly, high-polluting diesel generators?
Investors and other speakers at last month's summit, organized by Ceres and the United Nations Foundation, did not mince their words in answering these questions.
For all of Prime Minister Narendra Modi's enthusiasm about developing a mind-boggling 100,000 megawatts of solar by 2022, India's clean energy investment environment faces key hurdles, the biggest being exorbitant capital costs and high currency risks.
“In India, the costs of financing are at least twice as high as they are in the U.S. That means the power is twice as expensive in the places that can least afford it," Dr. Ion Yadigaroglu, partner and managing principal at the Capricorn Investment Group, said.
Still, India is working hard to open its doors. Uday Khemka, vice chairman of the SUN Group, outlined government efforts to “de-bottleneck" investment barriers, citing transparent bidding processes for projects, the use of partial credit guarantees and opening up large swaths of land for “plug-and-play solar parks." Plummeting solar and wind power costs are helping enormously, too, he said.
While India's changes are encouraging, its neighbor, China, “is the rock star of clean energy investment," concluded Bloomberg New Energy Finance (BNEF) founder Michael Liebreich. China was the dominant leader of BNEF's latest annual tally of global clean energy investments, accounting for $110 billion of a record $329 billion in global investments in 2015. The reasons are multifold, including clear, long-term government policies, a relatively stable liquid currency and a wealth of government-controlled sovereign funds to finance projects.
Yet, according to Dr. Guo Peiyuan, co-founder and general manager of SynTao Co., there are big opportunities for institutional investors, especially in green bonds. Dr. Guo said China's newly formed Green Finance Committee will require 2 to 4 trillion yuan of green financing every year ($325 billion to $625 billion), with only 15 percent being covered by the government, the rest by institutional investors. Green bonds will surely be a big part of this gargantuan effort. China's carbon emissions trading system, which is set to go nationwide in 2017, is another opportunity.
While China and India get most of the attention, investors should also be paying attention to smaller emerging markets.
Kyte praised Chile, South Africa and Morocco for putting the necessary policy frameworks in place to catalyze projects and attract capital. Each of these saw healthy double-digit jumps in clean energy investments last year, compared to 2014.
Island nations in the Caribbean are moving aggressively to attract investors for solar grids, geothermal and other clean energy projects. A few months ago, St. Kitts and Nevis signed a power purchase agreement to develop 10 megawatts of geothermal energy as an alternative to relying on costly, high-polluting diesel fuel. A second phase of the project will boost the facility's output to 150 megawatts. Other Caribbean islands are building solar grids for the same reason.
The 1,200 islands that make up the Maldives in the Indian Ocean are also putting strong renewable energy programs in place. Among those taking advantage is the Danish pension fund, Pension Danmark, which has invested $25 million in a project that will use solar power to turn salt water into freshwater.
“It's a small investment, but it's very scalable (for islands)," Pension Danmark Director Jens-Christian Stougaard said, which is also investing in a 300-megawatt wind farm in Kenya through the Danish Climate Investment Fund, which is focused entirely on climate investing in developing economies.
No doubt, there is a special sauce to tapping clean energy opportunities in emerging markets. In its simplest form, countries and institutional investors must be willing to work together.
“Having that local engagement, that local connection, is pivotal to have success," Stougaard said. “When we invest together with government entities, we have much better protection of regulatory and political risks."
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By Tom Duszynski
The coronavirus is certainly scary, but despite the constant reporting on total cases and a climbing death toll, the reality is that the vast majority of people who come down with COVID-19 survive it. Just as the number of cases grows, so does another number: those who have recovered.
In mid-March, the number of patients in the U.S. who had officially recovered from the virus was close to zero. That number is now in the tens of thousands and is climbing every day. But recovering from COVID-19 is more complicated than simply feeling better. Recovery involves biology, epidemiology and a little bit of bureaucracy too.
How does your body fight off COVID-19?<p>Once a person is exposed the coronavirus, the body starts producing <a href="https://www.mblintl.com/products/what-are-antibodies-mbli/" target="_blank">proteins called antibodies to fight the infection</a>. As these <a href="https://www.statnews.com/2020/03/27/serological-tests-reveal-immune-coronavirus/" target="_blank">antibodies start to successfully contain the virus</a> and keep it from replicating in the body, symptoms usually begin to lessen and you start to feel better. Eventually, if all goes well, your immune system will completely destroy all of the virus in your system. A person who was infected with and survived a virus with no long-term health effects or disabilities has "recovered."</p><p>On average, a person who is infected with SARS-CoV-2 will feel ill for about seven days from the onset of symptoms. Even after symptoms disappear, there still may be small amounts of the virus in a patient's system, and they should stay <a href="https://www.cdc.gov/coronavirus/2019-ncov/if-you-are-sick/steps-when-sick.html" target="_blank">isolated for an additional three days</a> to ensure they have truly <a href="https://health.usnews.com/conditions/articles/coronavirus-recovery-what-to-know" target="_blank">recovered and are no longer infectious</a>.</p>
What about immunity?<p>In general, once you have recovered from a viral infection, your body will keep cells called lymphocytes in your system. These cells "remember" viruses they've previously seen and can react quickly to fight them off again. If you are exposed to a virus you have already had, your antibodies will likely stop the virus before it starts causing symptoms. <a href="https://dx.doi.org/10.5114%2Fceji.2018.77390" target="_blank">You become immune</a>. This is the <a href="https://www.ncbi.nlm.nih.gov/books/NBK27158/" target="_blank">principle behind many vaccines</a>.</p><p>Unfortunately, immunity isn't perfect. For many viruses, like mumps, immunity can wane over time, leaving you <a href="https://www.sciencedaily.com/releases/2016/04/160421145747.htm" target="_blank">susceptible to the virus in the future</a>. This is why you need to get revaccinated – those "booster shots" – occasionally: to prompt your immune system to make more antibodies and memory cells.</p><p>Since this coronavirus is so new, scientists still don't know whether people who recover from COVID-19 are <a href="https://www.cdc.gov/coronavirus/2019-ncov/hcp/faq.html" target="_blank">immune to future infections of the virus</a>. Doctors are finding antibodies in ill and recovered patients, and <a href="https://www.cdc.gov/coronavirus/2019-ncov/hcp/clinical-guidance-management-patients.html" target="_blank">that indicates the development of immunity</a>. But the question remains how long that immunity will last. Other coronaviruses like <a href="https://doi.org/10.1002/jmv.25685" target="_blank">SARS and MERS produce an immune response</a> that will protect a person at least for a short time. I would suspect the same is true of SARS-CoV-2, but the research simply hasn't been done yet to say so definitively.</p>
Why have so few people officially recovered in the US?<p>This is a dangerous virus, so the Centers for Disease Control and Prevention is being extremely careful when deciding what it means to recover from COVID-19. Both medical and testing criteria must be met before a person is <a href="https://www.cdc.gov/coronavirus/2019-ncov/hcp/disposition-in-home-patients.html" target="_blank">officially declared recovered</a>.</p><p>Medically, a person must be fever-free without fever-reducing medications for three consecutive days. They must show an improvement in their other symptoms, including reduced coughing and shortness of breath. And it must be at least seven full days <a href="https://health.usnews.com/conditions/articles/coronavirus-recovery-what-to-know" target="_blank">since the symptoms began</a>.</p><p>In addition to those requirements, the CDC guidelines say that a person must test negative for the coronavirus twice, with the <a href="https://www.cdc.gov/coronavirus/2019-ncov/if-you-are-sick/care-for-someone.html" target="_blank">tests taken at least 24 hours apart</a>.</p><p>Only then, if both the symptom and testing conditions are met, is a person officially considered recovered by the CDC.</p><p>This second testing requirement is likely why there were so few official recovered cases in the U.S. until late March. Initially, there was a <a href="https://www.nytimes.com/2020/03/18/health/coronavirus-test-shortages-face-masks-swabs.html" target="_blank">massive shortage of testing in the U.S.</a> So while many people were certainly recovering over the last few weeks, this could not be officially confirmed. As the country enters the height of the pandemic in the coming weeks, focus is still on <a href="https://www.cdc.gov/coronavirus/2019-nCoV/hcp/clinical-criteria.html" target="_blank">testing those who are infected</a>, not those who have likely recovered.</p><p>Many more people are being tested now that states and private companies have begun <a href="https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/testing-in-us.html" target="_blank">producing and distributing tests</a>. As <a href="https://www.dispatch.com/news/20200406/coronavirus-in-ohio-from-its-rocky-start-testing-for-covid-19-slowly-ramping-up" target="_blank">the number of available tests increases</a> and the pandemic eventually slows in the country, more testing will be available for those who have appeared to recover. As people who have already recovered are tested, the appearance of any new infections will help researchers learn <a href="https://www.statnews.com/2020/03/24/we-need-smart-coronavirus-testing-not-just-more-testing/" target="_blank">how long immunity can be expected to last</a>.</p>
Once a person has recovered, what can they do?<p>Knowing whether or not people are immune to COVID-19 after they recover is going to determine what individuals, communities and society at large can do going forward. If scientists can show that recovered patients are immune to the coronavirus, then a person who has recovered could in theory <a href="https://www.vox.com/2020/3/30/21186822/immunity-to-covid-19-test-coronavirus-rt-pcr-antibody" target="_blank">help support the health care system</a> by caring for those who are infected.</p><p>Once communities pass the peak of the epidemic, the number of new infections will decline, while the number of <a href="https://www.newsweek.com/china-says-passed-peak-coronavirus-epidemic-covid-19-1491863" target="_blank">recovered people will increase</a>. As these trends continue, the risk of transmission will fall. Once the risk of transmission has fallen enough, community-level isolation and social distancing orders will begin to relax and businesses will start to reopen. Based on what other countries have gone through, it will be <a href="https://www.nature.com/articles/d41586-020-00154-w" target="_blank">months until the risk of transmission is low</a> in the U.S.</p><p>But before any of this can happen, the U.S. and the world need to make it through the peak of this pandemic. Social distancing works to slow the spread of infectious diseases and <a href="https://www.cdc.gov/coronavirus/2019-ncov/need-extra-precautions/what-you-can-do.html" target="_blank">is working for COVID-19</a>. Many people will <a href="https://www.yalemedicine.org/stories/2019-novel-coronavirus/" target="_blank">need medical help to recover</a>, and social distancing will slow this virus down and give people the best chance to do so.</p>
By Elizabeth Claire Alberts
The future for the world's oceans often looks grim. Fisheries are set to collapse by 2048, according to one study, and 8 million tons of plastic pollute the ocean every year, causing considerable damage to delicate marine ecosystems. Yet a new study in Nature offers an alternative, and more optimistic view on the ocean's future: it asserts that the entire marine environment could be substantially rebuilt by 2050, if humanity is able to step up to the challenge.
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By Zulfikar Abbany
Bread has been a source of basic nutrition for centuries, the holy trinity being wheat, maize and rice. It has also been the reason for a lot of innovation in science and technology, from millstones to microbiological investigations into a family of single-cell fungi called Saccharomyces.
Chemical leavening<p>If you like a little heft in your loaf, you will need a leavening agent.</p><p>For those short on time, you can use baking soda. That's a chemical compound of sodium bicarbonate mixed with potassium bitartrate, or cream of tartar.</p><p>Soda breads have their traditions in parts of eastern and central Europe, and in Ireland and Scotland, with Melrose loaves and "farls."</p><p>They can taste a bit bland, though, and are often considered only as an emergency solution on Sundays. No disrespect intended: They taste just fine fresh from the oven.</p><p>Whether it's chemical or more "natural," leavening relies largely on the production of carbon dioxide.</p><p>When you mix an acid, such as vinegar, buttermilk, yogurt or apple cider, with an alkaline compound like baking soda, you get CO2. That CO2 creates bubbles, which in turn capture steam in the oven and allow a bread to rise.</p><p><span></span>But it's better with yeast. Tastes better, too. It just takes more time. </p>
What is yeast?<p>There are yeasts all around us — on grains, in the air, in biofuels. It even lives inside us, but that's not always a good thing.</p><p><a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1090575/pdf/1471-2334-5-22.pdf" target="_blank">Candida yeast</a> can cause infections of the skin, feet, mouth, penis or vagina if it builds up too much in the body.</p><p>One of the most common yeasts, however, is <em>Saccharomyces cerevisiae</em>. That's <a href="https://www.dw.com/en/an-early-beer-archaeologists-tap-ground-at-worlds-oldest-brewery/a-45480731" target="_blank">"brewer's"</a> or "baker's" yeast.</p><p>You can get fresh baker's yeast, often in 42-gram (1.48-ounce) cubes, or as dried yeast (quick action or active, which requires rehydration) in a sachet of 7 grams.</p><p>There's little difference: One is compressed and the other is dehydrated and granulated. But they do the same thing, essentially. </p><p>Some commercial yeast producers add molasses and other nutrients. But natural yeast has plenty of useful nutrients in it anyway, including B group vitamins, so who knows whether it's good or necessary to add them. </p>
How does yeast work?<p>When you mix flour, yeast and water, you set off a veritable chain reaction. Enzymes in the wheat convert starch into sugar. And the yeast creates enzymes of its own to convert those sugars into a form it can absorb.</p><p>The yeast "feeds" on the sugars to create carbon dioxide and alcohol. The yeast burps and farts, releasing gases into the mix, and that creates bubbles to trap CO2. </p><p>It's a vital fermentation process that breaks down the gluten in the flour and helps make your bread more digestible.</p><p>The yeast cells split and reproduce, generating lactic and carbonic acid, raising the temperature and ultimately adding flavor to the mix.</p><p>The longer you leave the yeast to do its thing, the better for your bread. Time is more important than the amount of yeast. </p><p>In fact, that's an enduring question — how much yeast? I'll use 20 grams fresh yeast for 500 grams of flour. Others say that's enough yeast for 1 kilo. If you are converting a dry-yeast recipe to fresh yeast, some bakers advise tripling the weight. So, if a sachet of dried yeast is 7 grams, your fresh yeast is 21 grams.</p><p><span></span>But that also depends on the flours you are using, temperatures in the bowl and the room, and a host of other things. You'll just have to experiment and see. No number of books (and I've read a stack on bread) will help as much as trial and error.</p>
Wild yeast: Sourdough<p>So, good bread needs time. If you have a lot of time, why not move it up a notch and grow wild yeast — a sourdough starter — in your own home?</p><p>A sourdough starter is not to be mistaken (as it often is) for the leaven, or "mother," "sponge," or <em>levain</em>. That's more a second stage, a descendant of the starter. You take a scoop from your starter and add it to another flour and water mixture when you prepare the dough for a new loaf. </p><p>The sourdough process utilizes yeasts naturally present in flour and … yet more time. A longer fermentation process allows a richer lactic acid bacteria <em>lactobacilli</em> or LAB to evolve, and that can be healthy for your gut microbiome.</p><p>It's simple enough to start a sourdough starter. All you need is flour, warm water and time.</p><p>Some suggest equal measures of whole-grain flour and water at 28 degrees Celsius (82 degrees Fahrenheit), some say room temperature — just don't let the water exceed 40 C or the yeasts will die. Some suggest two parts flour to three parts water. But it's up to you whether you want a drier or wetter starter. You will know only through experimentation. </p><p>Some say you should filter tap water to remove chemicals like fluoride and avoid using water that's boiled and then cooled. Others say that really doesn't matter.</p><p>The main thing is, keep it clean and give it time. Days, weeks, months and years.</p>
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