Making Carbon Offsets Work in the Developing World: Lessons from the Chinese Wind Controversy
The Clean Development Mechanism (CDM) is the leading international carbon market and a driving force for sustainable development globally. But the eruption of controversy over offsets from Chinese wind power has exposed cracks at the core of how carbon credits are verified in developing economies. It has become almost impossible to determine whether offsets from Chinese wind are "additional" and that they in fact represent "real" reductions beyond business as usual. Unless this problem can be resolved, it threatens to spread beyond wind in China and could threaten the ability of carbon markets to deliver the mitigation demanded by international climate policy.
In 2009 the CDM Executive Board (EB) shocked the carbon market by forcing an unprecedented review of whether multiple Chinese wind projects satisfied UNFCCC additionality requirements. CDM investors reeled as the safest CDM bet became the riskiest; the Chinese government publicly criticized the UN's oversight of carbon markets; and the CDM EB prepared itself for an unprecedented fight over how carbon offsets could be verified in the world's largest CDM market.
At the center of the controversy is the Chinese power tariff for wind.
When the EB observed decreases over time in power tariffs granted by China's National Development and Reform Commission (NDRC) to wind projects, it became concerned that China might be manipulating power tariffs in order to guarantee additionality and subsidize its domestic wind development with international finance. If the Chinese government were controlling additionality, then the CDM's ability to validate carbon offsets would be dealt a near‐lethal blow because the problems posed by Chinese wind extend to nearly all power sector projects in almost every developing country. If offsets cannot be credibly verified, then the integrity of emissions caps set by the Kyoto Protocol is directly threatened.
The Chinese wind controversy therefore has direct implications for the design and negotiation of any successor to the Kyoto Protocol. Despite largely failed negotiations in Copenhagen, the design of reliable, efficient carbon markets remains the world's most serious prospect for international cooperation. The developed world has committed USD 30 billion in climate aid by 2012, but the majority of these funds will likely have to be private capital delivered through markets. In order for carbon markets to avoid controversy and function effectively, the lessons from the Chinese wind controversy must be used to implement key reforms.
This report examines the application of additionality in the Chinese wind power market and draws implications for the design of effective global carbon offset policy. It demonstrates the causes of the wind power controversy, highlights underlying structural flaws in how additionality is applied in China, and charts a reform path that can strengthen the credibility of global carbon markets.
Understanding the Expansion and Quality of Engineering Education in India
The Indian economy has expanded at a fairly steady and rapid rate in the past fifteen years, and part of that expansion has been a greatly increased demand for university graduates, particularly for those in technical fields. As of 2008, India was the largest producer and exporter of IT enabled services in the developing world. At the same time, Indian higher education has also expanded rapidly, both in the number of students enrolled and number of institutions—now four times the number in the US and Europe and more than twice that of China. The growth of private colleges in technical and business fields is an important feature of India’s higher education expansion, but it needs to be interpreted carefully. The rapid expansion of unaided colleges affiliated with universities is gradually transforming the role of public universities into regulating, degree-granting institutions and away from teaching or research (Kapur, 2009). Further, the form that higher education expansion took in India in the 2000s resulted in a steady reduction in public spending per student in higher education in the early 2000s.
State authorities appear increasingly willing to grant support for private unaided colleges to become autonomous universities, thereby loosening the regulatory power over the institutions’ decision making. At the same time, many signals (including the government’s 2012 higher education enrollment target of 15 percent of age cohort—approximately 21 million students) point toward considerable expansion of public universities and colleges over the next 4-5 years. The total number of students in all these institutions together, however, will be small compared to the total output of India’s technical colleges.
Given this background and some preliminary data we have from student and institutional surveys and interviews in Indian technical colleges and universities, we try to address several important issues in Indian higher education:
- What is the essence of the higher education financing system established by government policies and what can we infer from that financing system about government goals for higher education in the next ten years?
- How are colleges, their faculty, and their students reacting to these policies?
- What can be said about the current quality of Indian technical/engineering education and its prospects for the future?
- What can we conclude from the Indian case about the driving forces shaping higher education and where they are likely to take it?
Philippines Conference Room
Activating a North Korea policy
It is routine in U.S. foreign policy for a pot not boiling over to be moved to the back burner. Precisely because the North Korean issue is not boiling, however, might offer an all-too-rare chance to make progress with Pyongyang. Over the past several months, the North has signaled publicly and privately that it is in engagement mode. In Washington, arguments abound about whether or not this is a stall tactic or a trick, but we'll never know if we don't move ahead with serious and sustained probing of the North's position. So long as our government sticks to an all-or-nothing approach in terms of Pyongyang, the opportunity to advance vital U.S. security interests in northeast Asia could be lost.
Underlying Washington's current position are two beliefs, so firmly held that they approach dogma. The first is that we should wait until the situation with North Korea breaks in our favor or sanctions force North Korean leadership to reassess its attachment to nuclear weapons. A year into the Obama administration, this waiting borders on self-imposed paralysis even though North Korea remains capable of badly damaging regional stability as well as U.S. nonproliferation goals. So instead of positively defining and shaping the realities on the ground, we have taken shelter behind fixed positions: enforcing U.N. Security Council sanctions and demanding that the North make progress on denuclearization at the Six-Party Talks. These may be useful parts of an overall policy, but they cannot be effective by themselves and must be handled carefully.
Sanctions will inevitably get in the way of diplomatic progress, and there needs to be a way to use their loosening--as much as their tightening--in support of negotiations. Moreover, Washington's single-minded insistence that the North return to the Six-Party Talks actually has ceded to Pyongyang a great deal of tactical initiative. There is nothing the North Koreans love more than leaping over our heads to a new position just as we think we have them cornered. As such, in mid-January, they reversed their opposition to talks in the framework of the September 2005 Six-Party joint statement and have proposed that talks proceed on all fronts simultaneously.
The second part of Washington's dogma is that there is no sense in negotiating with Pyongyang because history shows that agreements with North Korea always fail and the United States ends up snookered. But the idea that our deals with the North have all been useless is based on a flawed reading of the record, a lingering misrepresentation of the accomplishments of the 1994 U.S.-North Korea Agreed Framework. In fact, the utility of that agreement (which lasted from 1994 until 2002) is still evident. Without it, North Korea would have produced far more fissile material and a significantly larger arsenal of nuclear weapons. Two hulking, unfinished North Korean nuclear reactors testify to its lasting legacy.
Reinforcing the belief that we don't need to, or shouldn't, pursue an active policy toward North Korea is the Obama administration's apparent concern that it will be vulnerable to charges of being "weak" if it approaches Pyongyang from anything but the toughest position possible. Thus, on the grounds that the September 2005 joint statement calls for progress on the North's denuclearization before talks can begin on replacing the 1953 Korean Armistice with permanent peace arrangements, Washington rejected out of hand Pyongyang's recent proposals to move on both issues simultaneously. We may find it difficult to hold that position because it is neither what the joint statement actually says nor what some of the other parties (especially the Chinese) intended.
The fundamental U.S. goal is exactly right: We want North Korea to denuclearize and to return to the international nuclear nonproliferation regime. But stating the goal isn't the same as moving closer to it. To do so, we must accomplish things that can help stabilize the situation, make it less likely that the strategic threat from the North will get worse, and begin exploring with Pyongyang a range of ideas for reducing tensions on the Korean Peninsula and in the region. A couple of mid-term steps could include a halt in nuclear testing and long-range ballistic missile launches, along with a complete freeze of the Yongbyon nuclear center, which would involve further decommissioning and a return of international inspectors.
These interim steps won't "solve" the nuclear problem, but they aren't beyond what we can accomplish. They will do considerably more to protect our interests and those of our allies than the current all-or-nothing policy, which is going nowhere fast.
Public Stewardship of Private Providers in China's Primary Health Care System
With the rapid growth of the Chinese economy and transition from central planning to a more market-oriented structure since the 1980s, private health care providers have gained market share, especially in provision of primary health care, despite legal and administrative obstacles. To reach the goals for universal health care coverage, access and quality announced in April 2009 as part of China’s new health reforms, effective government stewardship of non-state health care providers will be crucial. This presentation will give an overview of private providers in the grass roots health delivery system in urban and rural China, as well as evidence from field study. Policy trends in stewardship, contracting out and how private providers can better participate in universe health insurance are discussed.
Yan Wang is deputy director of the Disease Control Division for the Shandong Province Health Department, China, and a visiting scholar with the Asia Health Policy Program at the Shorenstein Asia Pacific Research Center at Stanford University in 2009-2010. She received her Ph.D. in public health from Shandong University and has been in charge of managing rural and urban community health services for Shandong’s 90 million residents for 10 years. Her research interests focus on evidence to improve policies for primary health care, health insurance, and health promotion.
Daniel and Nancy Okimoto Conference Room
Yan Wang (former)
Shorenstein APARC
Stanford University
Encina Hall, Room E-301
Stanford, CA 94305-6055
Dr. Yan Wang is a visiting scholar at Shorenstein Asia-Pacific Research Center for 2009-2010. Her research focuses on tobacco control, primary health care system, health education and health promotion, and health insurance. She is currently also the group manager of Division of Grass-Root Health Services, Shandong Provincial Health Department, P.R.China, and is in charge of urban community health services, health education and health promotion. She has an MA in public health from Shandong Medical University and PhD in Social Medicine and Health Management from Shandong University. Dr. Yan Wang has been an adjunct professor at Weifang Medical University since 2008. She also engaged in academic association and public organizations related to health affair.
Will Japan emerge from its shell? The new government finds charting a new course not so easy
The dramatic end to Japan's half-century of conservative rule in a late August election led almost immediately to a public spat with the United States. An inward-looking Japan that had reflexively followed the American lead suddenly was no longer an obedient ally.
At a time when the US was trying to woo a recalcitrant China to become a "strategic partner", Japan's insistence on reopening an agreement over US military bases seemed to upset the regional balance. But there are recent signs of a concerted effort on both sides to put underlying strategic interests back in the forefront, propelled in part by the recent eruption of frictions between China and the US.
The row began with the newly elected Prime Minister Yukio Hatoyama's call for more "equal" relations with the US, his advocacy of an East Asian Community à la the EU, and his focus on repairing ties with China. Put together, some saw a nascent urge to abandon the post-war security alliance. A senior State Department official went so far as to tell the Washington Post in late October that the "the United States had ‘grown comfortable' thinking about Japan as a constant in US relations in Asia. It no longer is, he said, adding that ‘the hardest thing right now is not China, it's Japan.'"
The trigger was growing frustration over the Hatoyama government's handling of the relocation of the US Marine air base at Futenma on Okinawa. The Democratic Party of Japan (DPJ) consistently opposed the deal to relocate the base elsewhere within Okinawa, expressing sympathy for the disproportionate burden of the US military presence in Japan born by Okinawans. American officials were loathe to reopen an agreement that had taken years to negotiate and believed the Japanese government exaggerated its domestic political constraints.
At the same time, Japan seems eager to hew its own course with China, to improve relations and begin to build the foundation for a new Asian community. If one is to believe US officials, alarm bells have been ringing among their allies and others in Asia over the rift with Japan. The talk of building a regional organization that might exclude the US made Singapore, Australia, South Korea, the Philippines and even Vietnam worried that this would only aid Chinese ambitions.
Meanwhile, the Obama administration itself was ardently wooing China. President Obama, on the eve of a trip in November, spoke of creating a "strategic partnership." In Beijing, the President avoided public finger wagging. Discussion of difficult issues such as human rights, Tibet and sanctions against Iran were conducted largely, if at all, behind closed doors.
Given their own pursuit of Chinese partnership, American officials could hardly object to Tokyo's efforts along the same lines. In public, they said this is not a zero sum game, that an easing of Sino-Japanese tensions could aid security and stability in the region for everyone. But some US officials soon saw evidence of Sino-Japanese collusion to push the US out of Asia. Privately they pointed to what was considered a telling moment following a trilateral summit of Chinese, Japanese and South Korean leaders in Tianjin in October. Talking to reporters after the meeting, Hatoyama had spoken about Japan's desire to lessen its "dependence" on the US. American officials considered Hatoyama's actions a gross display of obeisance to the Chinese.
Accusations that Japan was drifting into Chinese arms grew louder after DPJ Secretary General Ichiro Ozawa led a group of about 140 lawmakers on an adulatory visit to China in early December. Then Hatoyama and Ozawa raised hackles when they pushed for the Emperor to receive a visiting Chinese senior official, the heir apparent for leadership, Xi Jinping. However, these depictions of Tokyo lurching toward Beijing ignore the gradual evolution of Japanese policy and the deep-seated rivalry that persists.
Sino-Japanese relations reached a low point five years ago after anti-Japan demonstrations were apparently sanctioned by Chinese authorities. Unresolved wartime historical issues drove those outbursts, prompted by Prime Minister Junichiro Koizumi's visits to the Yasukuni shrine, which honors Japan's war dead. Disputes over oil and gas rights in the East China Sea threatened to explode. And China launched a campaign to block Japan's bid for permanent membership in the UN Security Council.
Japanese policymakers began to worry about the impact of these tensions on Japan's growing economic interdependence with China. They were critical of Koizumi's one-sided focus on the US-Japan security alliance.
"To weather the wild seas of the 21st century, Japan's diplomacy must have two elements: the Japan-US alliance and a Japan-China entente," wrote Makoto Iokibe, a defense specialist who now heads the Japanese Defense Academy, in the summer of 2006. "A combination of a gas field accord and a depoliticized Yasukuni issue would provide Japan and China with a clear view for the joint management of East Asia."
Beginning in late 2006, a succession of Japanese administrations has made concerted efforts to repair ties with Beijing and Seoul. Though the atmosphere with China has improved, substantive differences remain. In January, Japan's foreign minister warned that Tokyo would take action if China continued to violate a 2008 deal to develop oil and gas fields jointly. When Ozawa met the Chinese defense minister in December, he said the Japanese see China's military modernization as a threat. Ozawa suggested that if such fears were not eased, Japan might be prompted to undertake its own arms build up.
The Hatoyama government has also moved to upgrade ties, including security links, with Asian powers that share a fear of China, including India, Indonesia and South Korea. Ozawa stopped in Seoul after his visit to China where he apologized for Japan's colonial rule in Korea and pledged to push through legislation granting voting rights to Korean residents in Japan, an issue of great importance to Koreans and opposed by conservatives in Japan.
Recent events seem to have caused the US to reassess its handling of relations in Northeast Asia. There is growing evidence of an emboldened China that seems to interpret America's bid for a strategic embrace with the country as a sign of weakness. The authorities in Beijing took a tougher line toward internal dissent, openly clashed with the US at the climate change talks in Copenhagen, balked at cooperation on sanctions against Iran, and brushed off American protests over evidence of cyber attacks on Western firms.
After all this, America has begun to soften its tone toward Tokyo. Officials pledge patience as the new government looks for a solution to the base problem, while also mounting a public effort to convince Japan that the Marine presence in Okinawa is key to "deterrence" of North Korea and China. There is a renewed emphasis on broadening the security agenda to include other issues, from cyber security to climate change. Hatoyama, too, has emphasized that the Japan-US alliance remains "a cornerstone for Japan to enhance its cooperative relations with other Asian countries, including China."
Whether any real lessons have been learned in Tokyo or Washington remains to be seen. But perhaps the turn in Sino-US relations has reminded people in Tokyo and Washington that there remains a strategic purpose to the alliance.
Ethan Zuckerman on blogs and twitter enabling global attention for 'citizen media'
Global Voices was inspired by an incident in 2004, when a friend reading a New York Times article about Cameroon's elections posed the question: is there anyone in Cameroon blogging about this? Along with his colleague, former CNN Beijing journalist Rebecca MacKinnon, Ethan convened a group of bloggers from the developing world at Harvard. What came out strongly from these discussions was a desire for participants to be able to read each others' blogs. What started as Rebecca and Ethan each summarizing a couple of hundred blogs daily has grown into the Global Voices website, which uses a network of 400 editors to filter, translate and provide context to global blogs, making them accessible to readers around the world.
Since 2004, there have been some major changes to the context in which Global Voices operates. The organization has tried to respond to each of these:
- There has been massive expansion in internet access across the developing world, but rarely beyond the middle class and educated. Rising Voices allows media organizations from developing countries to apply for small grants to help them use digital media in their communities. A number of great success stories coming out of this initiative have demonstrated that it is possible to get traction for citizen media, even in very low resource communities.
- The digital space has emerged as a political space. This has prompted far greater levels of censorship. Global Voices Advocacy works to highlight cases of individuals arrested for involvement in citizen journalism and attempts to keep these stories live. It also works to document censorship of publishing platforms and to provide spaces where people can blog anonymously.
- In 2004, almost all blogging was in English. Now the majority of people are blogging in their own languages, about local issues. Translation therefore becomes a greater challenge. ProjectLinguauses volunteer translators to amplifyGlobal Voicesin many languages other than English.
Ethan suggested three possible theories about what we are seeing in the growth of social media:
- Social media will be the natural organizing tool for a new generation.
- Social media is an asymmetric tool - it is what you use when the tools of more effective mainstream media are not available to you.
- Social media is a story in itself - it can draw attention to a story that might otherwise not be picked up.
Crisis situations such as the protests in Iran and the Haitian earthquake have started to legitimize the use of social media by mainstream media outlets, blurring the boundaries between professional and citizen reporting. And some of the key challenges associated with access and language barriers are beginning to be addressed. But the problem of global attention span will be hardest to solve. So many situations never receive coverage and for those that do, the media cycle rarely allows them to stay in the spotlight beyond a few weeks. We have developed long standing bad habits in our understanding of what constitutes news. Social media has dramatically changed who is able to speak; but will it change how we choose to listen? This remains a major challenge.