World Bank: Arab, African Countries Among 'Best' in Developing Renewable Energy

World Bank: Arab, African Countries Among 'Best' in Developing Renewable Energy
TT
20

World Bank: Arab, African Countries Among 'Best' in Developing Renewable Energy

World Bank: Arab, African Countries Among 'Best' in Developing Renewable Energy

The World Bank has recently released a report, titled Regulatory Indicators for Sustainable Energy (RISE) 2018, in which it warned that the world, as a whole, is only about half way towards the adoption of advanced policy frameworks for sustainable energy.

This puts at risk the achievement of Sustainable Development Goal on Energy (SDG7) by 2030 and hinders progress towards the goal of keeping the rise in global temperatures to well below two degrees.

It follows the previous methodology of classifying countries into a green zone of strong performers in the top third, a yellow zone of middling performers, and a red zone of weaker performers in the bottom third.

The latest edition of RISE found that in the last decade the number of countries with strong policy frameworks for sustainable energy has more than tripled since 2010, with a dramatic increase in the uptake of renewable energy and energy efficiency targets.

It showed that from 2010 till 2017, the number of countries with strong policy frameworks for sustainable energy more than tripled from 17 to 59.

Strong performance in renewable energy policies has been distributed across all regions of the world and among different income groups.

The report said that the five countries that made the most progress in their policies in recent years and are from outside the Organization for Economic Cooperation and Development (OECD) including: the Ivory Coast, UAE, Rwanda, Jordan and Egypt. It also found that the world has seen a huge uptake in sustainable energy policies.

According to the report, it was noted that when the government is concerned with energy policies progress is achieved quickly.

Among the 133 countries in the index, countries where governments are concerned with sustainable energy sources made progress in RISE indicator by more than four percentage points, twice the average of the annual global growth rate.

Countries that have increased their electricity access rates the most since 2010 have also shown a concurrent improvement in electricity access policies. In countries with an electricity access deficit, policymakers are increasingly turning their attention to off-grid solutions to close the gap, the report explained.

This is illustrated by the soaring share of low-access countries adopting measures to support mini-grids and solar home systems from around 15 percent in 2010 to 70 percent in 2017.

In countries that have made progress on sustainable policies, the deteriorating fiscal position of national utilities is putting progress at risk.

Among countries with low access to energy, the number of utilities meeting basic creditworthiness criteria dropped from 63 percent in 2012 to 37 percent in 2016, the report said.



Turkish Central Bank Governor: Decisive Tight Policy Contains Re-dollarization Risks

Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas//File Photo
Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas//File Photo
TT
20

Turkish Central Bank Governor: Decisive Tight Policy Contains Re-dollarization Risks

Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas//File Photo
Türkiye's Central Bank headquarters is seen in Ankara, Türkiye in this January 24, 2014 file photo. REUTERS/Umit Bektas//File Photo

Turkish central bank governor Fatih Karahan said that monetary policy has been proactive and that re-dollarization risks are contained by a decisive tight policy stance, with retail FX demand more limited compared to March 2024.

In the text of a presentation which he made in Washington on Wednesday, Karahan said monetary policy transmission has improved considerably over the last year and that disinflation is continuing, "but risks are alive".

The bank hiked its main policy rate to 46% from 42.5% and lifted the overnight lending rate to 49% last Thursday. The move reversed an easing cycle in response to market turmoil triggered by the arrest of Istanbul's mayor last month, Reuters reported.

The tight monetary stance will be maintained until price stability is achieved via a sustained decline in inflation, Karahan said in the presentation on Wednesday.

The decisiveness regarding tight monetary stance is strengthening the disinflation process, he said.

Karahan said the pass-through effect on inflation of a weaker currency is modest, reflecting improvement in pricing behaviour, while falling oil prices support disinflation, but the global economic outlook is uncertain.

He also said demand has exceeded expectations, driven by goods consumption.

He said currency pass-through is expected to be around 35-40%, considerably lower than that during the summer of 2023, declining amid lower forex-protected KKM account balances, improved inflation expectations and moderating demand.