Insularity and Oil Dependence in Marshall Islands

The Republic of Marshall Islands (RMI) a Small Island Development State is ecologically fragile and highly vulnerable to the impacts of climate change. Small size, limited resources, geographic dispersion and isolation from markets, place the island at high risk of insularity. Most importantly, as other remote archipelagos, the islands are facing a heavy and increasing reliance on imported petroleum products, which is a major threat to energy security.

The national priority is to respond to the vulnerability and dependence of the energy sources and to improve access to affordable and reliable sources of energy to enhance sustainable livelihoods contributing to the economic growth and development.

OIKO developed a climate finance scenario for the 11th European Development Fund (EDF) through a comprehensive assessment of climate readiness of the Energy Sector in the RMI. Following Green Climate Fund´s Readiness Tools and Guidebooks, we provided training to get ready to access climate finance.

Aereal GIS view of the Marshall islands distribution.

After a consultative process with policy-makers about the public investment plan, a review of the macroeconomic scenario, the revenue collection strategy, the regulatory framework for both the public and private sector; the policy advice concluded in a new support program to four key strategic areas that include: national energy planning, energy to work towards the optimum utilization of energy resources, security, the power sector, and renewable energy development.

The proposed options resulted in a substantial increase in country’s electricity requirements to be met from renewable energy sources: biomass, solar, wind and other renewable resources, reducing imported petroleum for diesel back-up generators.

Palm Oil to blame for 39% of forest loss in Borneo since 2000

Indonesia and Malaysia produce about 85% of the world’s palm oil, which is used in everything from soaps, lipstick to pizza and biodiesel. Palm oil is putting one of the main sources of growth of Indonesia at risk: the rainforest in Borneo.

As in many tropical areas around the world, Borneo’s rainforests are being cut and degraded for timber, palm oil, pulp, rubber and minerals. Logging, land-clearing and conversion activities are considered to be the greatest threats to the Heart of Borneo. Of particular concern is the conversion of natural forests into palm oil and timber plantations.

Some palm oil farmers have been accused of using slash-and-burn methods to clear land for planting. The palm oil industry has long been blamed for encroaching on rain forests in Borneo, endangering wildlife such as orangutans and pygmy elephants.

Map of borneo showing the expansion of palm oil plantations, displacing the natural habitat environment of the local orangutans.

Indonesia and Malaysia, lost 6.3 million hectares (15 million acres) of forest cover between 2000 and 2018, the data from the Center for International Forestry Research (CIFOR), shows.

To respond to this challenge, OIKO supported the Ministry of Research and Technology of Indonesia with an assessment of sustainable and renewable energies potential (palm oil and timber byproducts as biomass) in East Kalimantan with the objective of creating an increasing renewable energy industry competitiveness for the sustainable economic development in Indonesia.

• To develop a strategy for renewable energies and help set the priorities of the Ministry of State for Research & Technology.
• Provide guidelines for energy efficient techniques trough integration of technologies and efficient energy planning, focused on finding optimized solutions to facilitate renewable and alternative access, such as biomass for combined heat and power production and development of sustainable biofuels.
• Set foundations for the establishment of a Center for Excellence on Renewable Energies in West Kalimantan.