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Begin New Search Topic Environment Political Geography Global Focus Content Type Policy Brief Publication Year within 1 Year

1. Energy investment in a time of inflation

Author:
Charles Lichfield and Joseph Webster
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
High rates of inflation across the world are forcing central banks to reluctantly tighten monetary policy despite accompanying recession risks. Moreover, restricted credit access could jeopardize energy investments, particularly for capital-intensive clean energy projects, potentially rendering the world more vulnera­ble energy to price shocks, which are a significant contributor to the current crisis. This paper briefly considers the macroeconomic drivers of inflation in late 2022, including Russia’s war in Ukraine and uncertainties around energy supply, supply-chain resets, and lingering COVID-19 disruptions, before examining the persistent energy underinvestment of the past decade and how this has left markets exposed to varying degrees. As such, this paper also considers how private capital can accelerate cleaner energy adoption, suited to different markets’ unique conditions and needs. Bor­rowing costs will rise, but this doesn’t have to bring the transition to a standstill. With the Great Moderation of low volatility, interest rates, and inflation perhaps a relic of the past, assets offering inflation protection, such as infrastructure, may become increas­ingly attractive to investors. There is a fear that global inflation will sharply curtail energy investment into emerging markets. The fear is justified. Higher interest rates in developed markets mean higher rates of return which will lure emerging markets investors back to the US and Europe. Still, it’s not all bad news for emerging markets. Quasi-state actors like Pension and Sovereign Welfare funds are interested in very long term, high-yield projects—two criteria to which emerging market energy infrastructure correspond. Disruptions to interest rates and inflation, triggered in part by energy underinvestment, will cause disparate impacts in different markets. Inflation is not, perhaps, everywhere and always a mone­tary phenomenon. Energy investment faltered from 2014 to 2020, despite low interest rates. Meanwhile, aggre­gate supply shocks—first due to COVID, then from Putin’s invasion of Ukraine—have pressured energy production and prices, raising inflation and necessitating interest rate hikes. The consequences of persistent energy underinvest­ment are now becoming apparent. The need for new energy infrastructure cannot be met without private investment. This was the case when infla­tion was lower; it is even more important now.
Topic:
Environment, Markets, Oil, Governance, Gas, Economy, Investment, Inflation, and Energy
Political Geography:
Global Focus

2. Peacekeeping in Nonpermissive Environments: Assessing Troop-Contributing Countries’ Perspectives on Capabilities and Mindsets

Author:
Fiifi Edu-Afful
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
International Peace Institute
Abstract:
Many peacekeepers are deployed in areas where ongoing armed conflicts or other situations of violence, including attacks against peacekeepers, have constrained their capacity to implement their mandate and protect themselves. This has led some troop-contributing countries (TCCs) to raise concerns about the high-risk environments to which their troops are deployed. One of the most critical issues when deploying troops to nonpermissive environments is ensuring they have the right capabilities and mindset. This paper interrogates TCCs’ perspectives on capabilities and mindsets and explores their implications for peacekeeping policy and practice. The goal is not only to deepen understanding of the UN’s progress on implementing the A4P+ priorities but, more importantly, to assess the state of play of peacekeeping in nonpermissive environments, drawing on the diverse perspectives of TCCs. The paper concludes by considering how capabilities and mindsets relate to accounta­bility for and accountability of peacekeepers. Failure to properly train, equip, and support troops being deployed to nonpermissive environments raises questions about whether the UN and TCCs are accountable to peacekeepers. Likewise, it is unclear to what extent peacekeepers should be held accountable for their performance when they have not been provided the proper equipment, training, and mindset.
Topic:
Environment, United Nations, Peacekeeping, and Armed Conflict
Political Geography:
Global Focus

3. How non-state armed groups engage in environmental protection

Author:
Jairo Munive and Finn Stepputant
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Non-state Armed Groups have a mixed - and mostly negative - impact on the environment, but there are ways in which NSAG’s engagement can have positive effects on the environment during and after armed conflict. The adoption of the UN principles for the protection of the environment in relation to armed conflict can provide an avenue for constructive engagement.
Topic:
Environment, United Nations, Non State Actors, Armed Forces, and Armed Conflict
Political Geography:
Global Focus

4. What needs to change for green funds to be truly green

Author:
Jan Fichtner, Robin Jaspert, and Johannes Petry
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Green investment funds are growing rapidly. However, their impact on climate change mitigation and sustainability remains unclear. Recent research has identified key shortcomings that need to be addressed in order to reduce greenwashing and make these funds truly green. Green finance is playing an ever more prominent role in recent years. Environmental, social and governance (ESG) funds, which constitute a key pillar of green finance, saw record inflows of hundreds of billions of US-dollars in recent years, primarily by retail investors. Essentially, these ‘green’ funds are integrating environmental, social and governance criteria, such as greenhouse gas emissions, labour rights and gender diversity into their investment strategy. They claim to invest less in the stocks of firms that are highly polluting or have bad governance practices, and instead buy the shares of corporations that appear to be more sustainable. In industry and policy debates, ESG funds are often cited as advancing the promotion of sustainability and helping to address climate change. However, the ESG concept, its underlying criteria, and its potential effects are highly controversial. Many critics see ESG primarily as ‘window dressing’, with no significant positive impact – either for the environment or for investors and employees.
Topic:
Climate Change, Environment, Oil, Gas, Capitalism, Sustainability, and Minerals
Political Geography:
Global Focus

5. Why adaptation projects do not stop climate-related migration

Author:
Lily Salloum Lindegaard, Nauja Kleist, Francis Jarawura, and Joseph Teye
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Climate change constitutes a critical challenge for subsistence rain-fed agriculture in the Global South. Increasing temperatures, irregular rainfall, and dry spells have negative, sometimes devastating, consequences for rural communities. Harvest yields diminish or fail, the planting season becomes unpredictable, and the dry season may be prolonged. While subsistence farming has always been demanding in such areas, climate change amplifies these challenges. As a result, local communities draw on a range of alternative farming methods and livelihood strategies, ranging from employing different crops to seasonal or long-term migration. Migration as an adaptation strategy, however, is widely rejected by international donors, national governments and sometimes local authorities. Rather, these actors often aim to enhance and promote local agriculture or other locally based livelihoods through in-situ adaptation projects, or adapting in place. This can be through providing (or selling) inputs to increase yields, e.g. drought resistant seeds, fertilizers or pest control; promoting new farming techniques, e.g. climate smart or conservation agriculture; or improving access to key resources, for instance water access through irrigation. Affected communities are supposed to stay where they are – in other words, deal with the challenges on the ground.
Topic:
Climate Change, Environment, Migration, Natural Resources, and Adaptation
Political Geography:
Global Focus and Global South