The International Action Programme (IAP), an outcome of the International Conference for Renewable Energies, held in June 2004 in Bonn, consists of concrete actions and commitments by governments and other actors to further endeavor to enhance renewable energy use. For example, China committed that the installed capacity of renewable energy will account for about 10 per cent of China's total installed power generation capacity by 2010. The Philippines is trying to double the installation of generating capacity from renewable energy sources (Renewables, 2004).

The benefits provided by renewable energy differ among countries depending on the local situation. They are: enhanced security of energy supply, reduced threat of climate change, stimulation of economic growth, creation of job opportunities in rural areas, improved social equity, and protection of the environment. For example, introducing bio-gas generators in rural areas to produce methane from local biomass resources such as livestock droppings, may help the local people to secure the energy required for their kitchen, to live independently from costly kerosene, and to preserve neighboring forests which sometimes suffer over-logging for fuelwood. Small scale hydropower in mountainous regions can indirectly improve health care, education services and water supplies, all basic needs which can be restricted by a lack of energy provision.

Secondary crops such as soybean, maize, cassava and other starch or oil crops, can make a significant contribution to the provision of renewable energy through bio-fuel, which is fuel originating from biomass. This year, facing record high oil prices, several bio-fuel projects have emerged in Asia and the Pacific. China, which needs to meet an increase in domestic oil consumption due to its rapid economic growth, started selling gasoline mixed with 10 per cent ethanol in major cities. Alternative fuels, including bio-fuel, which have only been used in a very limited way in terms of fuel consumption because of their higher price, have come under the spotlight in the era of “one barrel for forty dollars”, the historically high price of oil (NIKKEI, 2004). Thai food groups plan to launch a US$ 72 million biodiesel scheme, which includes a $ 17 million palm oil refinery and a 3,200 hectare palm plantation, as the government promotes biofuel to lower its oil import bill (Reuters, 2004). To reduce air pollution due to emissions from public buses and trucks that run on diesel fuel, the Jakarta city administration in Indonesia plans to develop biodiesel fuel as an alternative to the fossil fuel burned in the diesel-fueled engines (Jakarta Post, 2004).

On the other hand, various mechanisms approved under the Kyoto Protocol will attract capital flow to developing countries for investment in renewable energy projects. The Clean Development Mechanism (CDM) is proposed as part of the 'flexibility mechanisms' of the Kyoto Protocol. CDM allows industrialized countries to fulfill their commitments to greenhouse gas emission reduction by contributing to its reduction in developing countries. Though developing countries have no obligation under the current protocol, if the industrialized countries assist them in reducing gas emissions, it can be counted as an achievement by the industrialized countries. The mechanisms are expected to promote investment to renewable energy.

Renewable energy has drawn attention many times since the first oil shock in the 1970s' but any boom has always disappeared as soon as the oil price returned to normal. However, the current boom seems to have larger potential since it is based on factors which couldn't be observed before such as the newly developed technology, global environmental issues as well as a saturated oil price. It is urgent for us to make efforts in good faith to realize poverty reduction through the development of renewable energy.

Written by Tomohide Sugino, Project Leader, AGRIDIV Project, UNESCAP-CAPSA, Bogor, Indonesia.

(References available upon request)