Says round-the-clock solar-powered plane is meant to serveas an ´ambassador´ for development of renewable energy
Geneva, 17 September 2010 -- André Borschberg, whose solar-powered plane stayed aloft for 26 hours in July, was among several experts addressing the Trade and Development Board (TDB) on the topic of how to increase and effectively channel investment into low-carbon technologies.
The topic of the morning´s TDB session was "Investment for development: emerging challenges."
UNCTAD Secretary-General Supachai Panitchpakdi underlined UNCTAD´s support for low-carbon economic growth and said that based on discussions at the UN Advisory Group on Climate Change Financing, of which he is a member, it appears that it will be necessary to raise around US$ 100 billion per year by the year 2020 from public and private sources to help developing nations mitigate and adapt to climate change.
Mr. Borschberg, Chief Executive Officer and Co-Founder of Solar Impulse, set a record for solar-powered flight in July by piloting a plane of that name for 26 hours, day and night, taking off and landing in Switzerland. The goal of the Solar Impulse Project is to fly around the world in such an aircraft. Mr. Borschberg is a former Swiss fighter-jet pilot.
In a featured address, Mr. Borschberg said the project was undertaken because "the world is entirely dependent on fossil energy." Some 85% of the world´s energy comes from fossil fuel, and for economic and environmental reasons it is vital to shift to renewable energy use -- other technologies do exist, but their potential is not fully realized, he told the meeting.
"We want to demonstrate that these technologies can work. The idea is to take off in an airplane using only solar power, fly through the day and night. . . and perhaps continue for two or three more cycles, and get closer to perpetual flight." He termed the airplane "an ambassador" for renewable energy investment and technology.
The challenge was to develop the technology so that solar power was used not only for immediate flight, but to charge batteries to supply power from sunset to sunrise. The technical difficulties included designing and manufacturing batteries that were lighter than any previously available. Overall, a team of 70 engineers worked on the plane.
It was "a very, very strong emotion" to fly during the day and watch the energy gauge and see the available "fuel" increasing, Mr. Borschberg said. As a fighter pilot, he was used to the opposite experience.
The goal now is to carry out more ambitious flights, he said - first across the Atlantic, and eventually around the world, a goal that may be reached in 2013. A second, larger plane is being designed. Although a round-the-world flight will be self-sustained, because of pilot fatigue and other factors, stops will be made on each continent, he said.
Introducing the debate, UNCTAD Secretary-General Supachai Panitchpakdi told the meeting that in a world of economic imbalances, one of the greatest imbalances may be that between economic growth and environmental sustainability.
Large investment will be needed from both public and private sources to ensure that development can continue at the same time as economies shift to low-carbon energy use, he said. Encouraging private "green" investment in developing nations is critical, but it is important to look at the matter as providing opportunities as well as challenges: transnational corporations can be part of the problem of climate change, as they often are major emitters of greenhouse gases, but they also can be part of the solution if they bring their technology and immense resources to bear.
James Zhan, Director of UNCTAD´s Division on Investment and Enterprise, reviewed the messages of UNCTAD´s World Investment Report 2010, published in July, which was subtitled "Investing in a low-carbon economy." Mr. Zhan said the report considered in depth the connection between foreign direct investment (FDI) and technology transfer as it applies to climate change; and, among other things, proposed the establishment of an international centre to help developing countries attract and channel investment into low-carbon economic growth. He added that the debate at UNCTAD´s 6-9 September World Investment Forum in Xiamen, China, indicated how important developing nations consider technology dissemination and greater infusions of FDI into their low-carbon sectors.
Erik Haites, President of Margaree Consultants and a senior consultant for the United Nations Framework Convention on Climate Change (UNFCCC), said it is necessary to reduce global emissions "dramatically - at least 50%, probably increasing to 80% over the long term" - to stabilize greenhouse gas levels. Over the next 20 years, an estimated 60% of those reductions will come from increases in efficiency and about 40% from renewable energy, he said. Currently, about 60% of investment in the low-carbon sector comes from the private sector, and it is clear that future advances will require extensive private investment, much of it investment relating to developing countries.
Following Mr. Borschberg´s speech, a panel discussion was held featuring Bruno Figueroa Fischer, Coordinator of the Advisory Office at the Unit for Economic Relations and International Cooperation of the Ministry of Foreign Affairs of Mexico; José Luis del Valle Doblado, Director of Strategy and Research of Iberdrola S.A., a Spanish multinational firm specializing in power generation; Takahiko Onozuka, Senior Advisor of the Japan Bank for International Cooperation (JBIC); and Matthew Bateson, Managing Director for Energy and Climate of the World Business Council for Sustainable Development.
Mr. Fischer of the Mexican Foreign Ministry noted that Mexico will host the 6th upcoming Conference of the Parties of UNFCCC in Cancun later this year and told the meeting that governments alone "cannot finance the fight against climate change, particularly in developing countries." The "revolution" needed in the way energy is produced and consumed is similar in scale and challenge to the Industrial Revolution of the 19th century and the information technology revolution of the 20th, he said.
Mr. Del Valle of Iberdrola S.A. said private investment in low-carbon power generation is being driven by three major concerns: security, the environment, and the establishment of good competitive positions in the low-carbon sector by private firms. The electrical power industry "will probably be the key area where we need to reduce emissions," he said. The potential for private businesses "is huge," he added.
Mr. Onozuka of the JBIC told the meeting that the bank is seeking to provide funding and loan guarantees that serve as a catalyst for the private investment in the low-carbon sectors in developing countries. Bank projects in the field cover efforts involving industry, power and water, transport, and buildings and appliances in developing nations. He said that Africa has "great potential" for green energy and in the future may supply significant amounts of low-carbon power to Europe.
And Mr. Bateson of the World Business Council for Sustainable Development said the Council is made up of more than 200 firms around the world that "have some of the greatest impact and some of the greatest emissions as well" in the field of climate change. "We´re not part of the political discussion, but we do want to be part of the process of finding solutions," he said. He said technology transfer is only "one part of the challenge" of switching to low-carbon growth. "To leverage private sector finance is crucial" for meeting the challenge, he added, and if governments are talking about mobilizing hundreds of billions of dollars for coping with climate change, the private sector likely will invest "trillions" if policies are established to encourage such investment.
