Dilemma Between Fossil Fuel And Other Energy Projects

Fossil fuel depletion has become a major concern for all the developed and developing countries around the world because humans have become dependent on fossil fuels as their main source of energy. Another main concern directly related to fossil fuel depletion is the pollution of the environment caused by its use. Nevertheless, science has managed to develop other cleaner and/or renewable energysources. There are many reasons though why fossil fuels have remained as the main source of energy. Among them the most important one is due to monetary reasons. The costs to develop cleaner and renewable energy sources are very high. Furthermore the cost for governments, businesses and individuals to switch to other energy sources or fuels is also very high. Amid these is for example Aeolicenergy, hydraulic energy, solar energy, and nuclear energy. Also there are nuclear fuels, biofuels that can be used as alternative for fossil fuels. The question that arises is how fossil fuel projects and other types of energy projects are financed. The answer: the World Bank. The World Bank is responsible for designing a policy in which they state how much financing these projects will obtain as wellas which projects will be financed and which ones will be rejected. Their policy on energy therefore is very important for the world due to its large impact. Over the last decade, the Bank has financed hundreds of fossil fuel projects, which will increase the levels of carbon dioxide in the atmosphere and accelerate the effects of global warming. Their dilemma now becomes whether to keepfinancing fossil fuel projects or switch to finance other energy projects. To make this important decision the World Bank appoints a committee who presents a report with recommendations as to which projects to finance and which ones to reject. Representatives from three groups who are mostly concerned with this issue form the committee: non-governmental organizations, the energy industry, and thedeveloping countries. On the following essay I will discuss all the arguments presented by each group in favor of their own interest for or against financing fossil fuels and to what agreement they reached to present to World Bank.

Non-governmental organizations are mostly concerned about the environment, animals, human society and the overall well being of everyone. Their point of view is verystrongly in opposition to financing fossil fuel projects. Although fossil fuels like oil and natural gas are available in abundance, their over exploitation has resulted in their substantial depletion. By financing them as much as they have been financed over the past years they will be completely gone in less than 50 years. Measured used of fossil fuels has to be encouraged beginning by their energypolicies. Also fossil fuels are the largest emitters of greenhouse gases such as carbon dioxide and methane, which are negatively impacting the ozone layer, a protective cover above the earth that is essential for the survival of all species. Furthermore, extraction of fossil fuels threatens the ecological balance in many areas. For example, coal mining is also a reason for earthquakes. However theyunderstand that they cannot cancel financing fossil fuel project because of the large dependence we have. They agree that it must be a gradual but at a rather fast rate elimination of these projects to protect the environment.

With a completely opposite point of view, we have the energy industry. Most of the companies businesses come from fossil fuels. Having large investments in machinery,distribution and all the necessary equipment to extract and refine them. It is just natural that they would push towards more financing on their stronger business to try to keep costs low as well. They recognize the bad effects but they suggest other ways to counteract the bad effects of fossil fuel burning. They also argument that other energy sources are very expensive to develop and they are...