Yesterday, the German cabinet approved the Renewable Energy Act Reform. The reform, referred to by some as the Feed-in Tariff 2.0 (FiT 2.0), was necessary: In the past few years, Feed-in Tariffs successfully boosted renewable energy deployment in the country. This sparked public and policy discussions around the grid development, market integration and financial instruments that would finally enable Germany to reach its policy target of 80% renewable electricity by 2050.
Unfortunately, the bill passed yesterday fails to address any of these questions. Instead, it strengthens the corporations and energy utilities that have failed to integrate renewables into their business model in the past decade. The following analysis shows why the reform cannot be considered FiT 2.0. [Read more →]
April 9, 2014 1 Comment
Feed-in Tariffs (FITs) have come under fire in the past months, being criticized variously as “over-regulation”, “subsidies”, “unfunded liabilities”, “central planning”, “state price controls” and “state aid”. Supporters of this discourse call for market competition and free enterprise instead. What they have not understood is that this is exactly what feed-in tariffs do. [Read more →]
March 13, 2014 No Comments
Developing countries are most vulnerable to the devastating impacts of climate change. It is therefore of utmost importance to empower these countries to cope with the loss and damage already happening as a consequence of climate change. However, next to these necessary adaptation measures it is also important to mention, that the Global South can accelerate the economic development along a green trajectory while reducing poverty through the development of renewable energies. This has to be taken into account when discussing the design of newly emerging international funding mechanisms such as the Green Climate Fund (GCF) of the United Nations Framework Convention on Climate Change (UNFCCC).
November 12, 2013 No Comments