politics Archives - Page 4 of 7

Importing green energy

Singapore is going to import low-carbon electricity soon; well, technically it already has been importing these electricity through some “small pilots”. The idea of importing electricity isn’t new. For a long time, Thailand had been importing power from Laos, developing hydroelectric plants there and building transmission lines into their network.

Most regional electricity markets started out first with interconnectors to help with load balancing, which also provides for imports and export. The Nord Pool in Nordic states started out that way. And the purpose of that had always been to enhance resilience and promote regional integration.

Singapore’s case is interesting because of the focus on securing green electrons. From a GHG Protocol carbon accounting standpoint for Nationally Determined Contributions to emission reduction, the electrons that are imported are carbon-free. This is because countries only need to care about Scope 1 emissions. That is to say the electricity exporting country will need to care about their energy mix and be responsible for the carbon emitted during the power generation process.

At the country level, all imported electricity is carbon free. But for companies consuming the electricity, things can be complicated. Do they use the grid emissions factor assuming the imported electricity is carbon-free? Are retailers who purchase the import electricity able to claim the power is carbon-free?

Because of these controversies, Singapore took the clear path of requiring the power imported to be from low-carbon sources / renewable sources. So hydroelectricity qualifies, and so does solar and wind. The challenging layer that Singapore added to the electricity importers is for the power to be firm; ie. the solar power cannot be just supplied in the day when the sun is shinning. The message is that we want green electricity but not the intermittency that comes with it. Nevertheless, managing the intermittency will come down to the importer rather than the exporter since the requirement comes from Singapore.

I do wonder if this whole musical chairs around who should own the cost or benefit to the matter of carbon emissions a big distraction from the world’s attempt to reduce carbon emissions though. If Singapore could simply develop more projects overseas and secure the relevant credits from other countries on a government-to-government basis, we could still create new instruments that could help to release more supply of green energy for companies in Singapore to meet their obligations.

At some point we need to cut through the whole posturing, learn to be strategic together as Team World and work on the problem of climate change together.

Net zero actions

Reducing carbon emissions is about doing less things. But our culture and economy is not used to that. Maybe that’s why it is easier to sell the idea that we must do more new things or different things.

New actions from various parties in the economy requires new forms of coordination. We are not familiar with all that and neither are we familiar with the roles, actions and expectations.

In some sense the talents who used to do this sort of work would have come from those with public policy background but because of the manner the economy and talent flows have evolved in the past few decades, these people now come from everywhere.

For those in research, it is knowledge that catalyses actions. For those in politics it is the voice from the people. And for businesses, it would tend to be what constitutes opportunity, these various pockets of objectives, desired outcomes and tools need to be laid out and strung together.

It’s not too late. But things need to be done.

Gestating for scale

I loved my laksa example when it comes to talking about scale and growth. How long do you think a concept or idea needs to gestate before it experiences mass adoption and succeed? And does success mean growth and scale? Or can success mean mastery towards perfection?

Take Toast Box; they took the simple breakfast fare of the Southeast Asian chinese, created a system to deliver it elegantly, and scaled in it a big way. But how long did it take for the kaya toast and half-boiled eggs to gestate in the cultural environment before they were ready for this Toast Box model?

When something is gestating, there is growth as well. The growth may be of a different quality and require a different environment. Just as the pre-mature foetus won’t be able to survive the environment outside the womb independently. This may sound like the “infant industry” argument but perhaps different – I’m advocating that we don’t apply the same standards to evaluating business growth across all kinds of businesses or business ideas.

At the end of the day, it is a question of what capital is seeking. To replicate and produce more of itself without care for the impact to the world, or making a difference along the way

End of oil III

In the absence of the price signals I wrote about in End of Oil II, what do we do? And besides, there had been so many recent fiascos about carbon markets that this instrument risks losing its credibility entirely and make it even harder for carbon emissions to be priced.

Pricing carbon is not just about credits of course. Carbon taxes are forms of prices and if we want to be stigmatising carbon emissions, we can even call it a fine but then the difficult is that we all are emitting carbon so at the end of the day the price will still be sort of a “license to pollute”.

Perhaps better to suggest and highlight that the taxes, credit revenues are going to be reinvested into decarbonisation. In any case, we do need more investments, funds and support towards that. What better way to fund it than to use the proceeds from carbon pricing to achieve that?

And we really can’t wait for the private initiatives and the market to get that going. At the same time, governments cannot afford to try and design the perfect market for it all to work. Rather, if carbon credits is not going to take off, the whole slew of regulation will need to be rolled out including renewable portfolio standards, carbon taxes, renewable gas blending mandates, ban on internal combustion engines, etc.

End of oil

Many years ago when I first thought about the study of Economics, there was the prevailing concern about oil reserves running out and the world running out of fuel. It was 2005 and the economist even had an issue where the cover page was showing the reflective colorful swirls of oil. The economists would argue that the world will never run out of oil because towards the last drop of oil left, the price of oil would be so high no one would want it. And perhaps many other alternative technologies which were not commercially viable would have become so before oil runs out.

Those were days when we technically already know about greenhouse effect and the global warming potential of carbon dioxide. And I was particularly fascinated with the recurring debates between the Malthusians (and neo-Malthusians) and the others weigh on the hope of technology (and possibly economics).

It is funny how more than 17 years later, I’m in a career to try and reduce (and eventually end) the dominance of oil. Not to promote an alternative technology, not to rail against the political power of oil but to create a future that we all want to step into. Because climate change is an existential danger for us all and the planet as we know it. And because I believe our current economic system can be superceded by one that works for the future and not the tradition notions of wealth and fortune.

Market capitalism

Economics is not a discipline of the capitalist though they might think so. Because the communist had their study of economics and the manner of trying to deploy the calculations and understanding in central planning. But I digress. What I’m pondering over recently, is that intricate link between the market and capitalism. I wonder, if there was something apart from market capitalism. And as it turned out, there are ideas of alternatives around state-capitalism which is where the state tries to accumulate capital and operate an economy dominated by state-owned firms. But to some extent, that is what communist regimes have sought to do. So ultimately, the ideas of capitalism, when taking the notion of the market away, actually represents something very different from what we commonly believe to be capitalism.

In that sense, capitalism as we conceive it probably still has the market principles and ideals at the fore in the manner it is perpetuated. In that sense, the ills of modern capitalism isn’t necessarily the notion of capitalism per-se but allowing the (unguided) market to take the lead in too many of the things that actually matter. The idea of markets regulating themselves is honestly a little ludicrous to me. In an older world where there were many things in our lives that dominate including ideas around moral, characters, and virtues, we tend to be keen to govern the market and regulate it, seeing that there are higher laws to follow.

But in the world today, we increasingly allow the market to dominate our judgment of things, especially with regards to value of things – tangible or not. That means that what the society needs to care about, which might not be valued by the market properly, may just fall off the radar. It happened for the climate of the world; and who is to say that market capitalism is not coming for other things that truly matter to us as humans.

Direction of effort

In which direction should one direct his or her efforts? Would it be in the direction of goals? Or the direction of one’s preference and interests? I’ve come to discover more and more than following one’s interests and one’s goals are different and we can set ourselves and our outcomes on very different paths when we pursue one or the other.

Being aware of what journey we are on becomes important when we look at what we are trying to get from it. Often, when pursuing a journey towards goals like career, money and recognition, we forget that we signed up to something that sacrifices our interest and passion, then we get upset about not getting those. Meanwhile people who might find themselves trying to follow their interest complaining about lack of income or opportunities.

We can’t have the best of both worlds no matter how many examples we find in the world to hold up. And we don’t always fully understand the sacrifices and pains involved until we eventually reach that level. When we direct our efforts we must be reminded which path we’re moving along; that determines what the path yields.

Broken systems

In any civilisation, you’re in a system; so there are rules to follow, structures to abide by, and hence a sort of order emerges from the system. Of course the order can be disorderly but you get my drift. When however, certain realities don’t line up the way they do in a system, we think that it is broken.

I’m not too sure about that. Sometimes, we think that a system is broken because it is leading to an outcome which we don’t desire nor think is desirable. Whilst the designer or perpetrator of the system may agree with you on the outcome and results, they may not think the system is broken.

The reason being that their key objectives for the system does not align with yours. What you think as an undesirable outcome may be an unintended but necessary consequence of the system; and the results which you don’t agree with may not even be part of the consideration.

And that is the challenge when one works within a system. It is terribly difficult for a system to start paying attention to a new attribute that is worth looking at when measured against the values that inherently power the system. Effectively, the conversation goes like this:

You: ‘Hey system, you need to start looking more into the environmental damage you are causing while trying to make profits!’

System: ‘Ah, environmental damage. Does looking into it generate more profits?’

You: ‘Well, the point is thinking about we are trading-off environmental sustainability in our process of profit. Maybe we can rethink about the way we make a profit?’

System: ‘Sure! Come back to me when there’s a profitable way to reduce the environmental damage. Meanwhile, we carry on with what works.’

The reason we are facing climate change is not really because the system is broken but because the system we designed is working perfectly well – it is just trying to solve a completely different problem than the one we are facing or trying to get it to solve.

The only way is to establish new rules and new ways of doing things, of structuring our lives, our companies and our economy. This is why Enea Consulting, where I work at, has combined efforts with Isabelle Kocher de Leyritz to form Blunomy.

For now, the branding might still feel very foreign to an Asian mind, the URL quite strange (is the firm French or Malaysian?), the fonts on the website feels a tad bit too avant garde for the liking of the general masses. But the message, the intentions and planned actions are clear. We understand that the systems are not broken but they are simply not designed for the challenge that confronts us today. That is why we are not here to fix the system; we need new ones to replace them.

Just to reiterate that views presented here are entirely personal and do not represent the stance of any organisations I’m employed by or have any affiliations with.

Mondo Gondo

This is the first time I utter this two words that don’t really mean anything but definitely not the last time. I started a podcast (yes, finally!) and it’s called Mondo Gondo. I picked those words because it rolls off the tongue well. And it’s probably a whitespace in the minds of people what it could mean.

So yes, Mondo Gondo. It’s like a trip into my mind. I’ll be ranting, riffing, ideating, and mostly talking. I wished I could ramble but I designed them to be concise and <15minutes pieces. One of the requirement I have for myself is that they must have some ideas (not answers, just ideas) to make things better.

And why did I do that? Because it’s always worth taking action that allows each and everyone of us to step into a future that we all want to be in. At least one that I’d like to be in. So yes, a podcast. With some show notes here. And thank you in advanced for listening.