Indonesia has set a target of attracting $160 billion in foreign investment over the next few years, and through recent deals with China and India, it is coming closer to achieving this goal.   China and India have agreed to finance billions of dollars worth of Indonesian infrastructure projects- including railways, road, ports and bridges – in exchange for coal.  The nature of the agreements is similar to the controversial “minerals-for-infrastructure” deals China has entered across Africa to secure access to that continent’s resources.

Leading purchasers of Indonesian coal are China, India, South Korea, Japan and Taiwan.  Indonesian production levels are predicted to rise nearly 90% to 480 million tons by 2020.

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Chinese officials recently announced plans to decrease rare earth shipments by 72%, causing anxiety amongst global clean tech firms. However, it will reportedly offer access to restricted resources to companies that move operations to China.

Many companies are already picking up and moving to the region because of the attractiveness of low labor costs and proximity to Asia’s fast-growing renewables sector. Many analysts expect this moving trend to speed up as clean tech firms take precautions for potential limitations on rare earth exports that are essential to production.

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One of the few proposals to achieve widespread support at the Copenhagen climate talks, REDD encourages developing nations to preserve their vulnerable forest land by linking conservation measures with carbon offsets which can then be traded on the global market.

REDD uses a complex accounting system to monitor the carbon offsets resulting from various forest projects and ensure standards around the world.  This system recently passed the first of two formal audits required by the Voluntary Carbon Standard (VCS), a Washington-based group charged with ensuring the legitimacy and transparency of REDD projects by imposing strict standards.

“The methodology is expected to be broadly applicable where mosaic patterns of deforestation occur throughout Southeast Asia and Africa,” says Leslie Durschinger, founder and managing director of Terra Global Capital, a finance and advisory firm specializing in REDD projects.  These “mosaic” projects include various plans to protect forests from logging, farmland conversion, fires and collection of fuel wood and thus reduce carbon emissions.

Deforestation is a major contributor to climate change,  which the U.N. says accounts for between 20-25% of total global emissions.  Many developed nations have lent support to help develop REDD, most notably Norway, which has signed a $ billion forest conservation deal with Indonesia.  REDD aims to become part of a broader global climate accord in 2013.

The iron and copper discoveries that have been made so far are substantial enough to turn Afghanistan into one of the world’s major producers of both valuable substances.

In addition, geologists believe dry salt lakes in western Afghanistan may contain lithium deposits large enough to rival those of Bolivia, which possesses the world’s largest known reserves.  An internal Pentagon memo says with these discoveries, Afghanistan could turn into the “Saudi Arabia of lithium.”  Lithium is an essential element used widely in high-tech production; a necessity for computer chips to batteries to wind turbine components.

Although he concedes that developing these reserves will take time and money, General David H. Petraeus, commander of the United States Central Command, says there is “stunning potential here” and that this discovery has the potential to transform the Afghan economy, which thus far has centered around opium production and the drug trade.

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Conventional gas drilling processes use approximately 80,000 gallons of water per well.  However,  the new method of horizontal drilling combined with “fracking” uses millions of gallons of water that has been laced with a cocktail of sometimes toxic chemicals.  These new techniques have opened up gas resources in many previously inaccessible areas, and dramatically increased U.S. natural gas production.

However, environmental pollution concerns have steadily increased in New York, Pennsylvania, Ohio, and West Virginia, across which spans the giant Marcellus Shale formation.  New York has already limited drilling in certain areas because of fears of possible groundwater contamination in watershed regions.   It is likely that similar regulations will soon be put in place to ensure protection of the environment as fracking drilling expands.

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Part of Norway’s $1 billion investment will go towards creating and monitoring new projects under the U.N.-baked forest conservation scheme, called Reduced Emissions from Deforestation and Degradation (REDD).  The Indonesia-based Center for International Forestry Research said this new deal could be “a game-changer in the drive to make REDD a reality.”

Norway and Indonesia’s landmark deal was supported by another notable investor – billionaire George Soros.  In advance of the deal-signing, Soros said he would personally guarantee $50 million to help slow global deforestation, which he believes is of the utmost importance in the struggle to reduce emissions.  ”If you can stop the eradication of the forest before it happens, its much easier than to reclaim the degraded land.  That is why I think quick action is so important.”

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Deforestation is a worldwide problem which contributes mightily to global greenhouse emissions.  It is estimated that one-fifth of all carbon dioxide emissions result from chopping down forestland, especially in tropical zones.

Land preservationists and climate change advocates want to end this environmentally harmful practice, saying doing so will benefit not only the atmosphere, but the U.S. farming economy.

A recent study by the National Farmers Union and Avoided Deforestation Partners estimates if global deforestation were stopped, the U.S. agricultural sector could boost its revenues from $190 billion to $270 billion through 2030.

U.S. crops  have long been undercut by unfairly cheap commodities harvested on “slash-and-burn” cleared land.  Stemming this practice would slow the spread of these artificially cheap commodities into the global marketplace.  The report says U.S. timber, soybean, oilseed and beef industries stand to enjoy particular gains.

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The United States Department of Energy (DOE) is instituting its first-ever strategic plan to deal with “Rare earth metals” – the special group of elements that are essential components of clean energy technologies like electric vehicle batteries, compact flourescent light bulbs and solar panels.

As nations around the world increase development and deployment of clean energy, there is a growing anxiety about China’s clear dominance of these essential supplies.  China currently supplies nearly 95% of global demand  for rare earth metals, and the government is attempting to control all processing of rare earth metals.  Over the past seven years,  China has reduced global exports by 40% and some estimates expect China will begin halting exports of these rare earths within the next two years.

“It goes without saying that diversified sources of supply are important for any strategic material,” said David Sandalow, Assistant Secretary of Energy for Policy & International Affairs.  ”So too are substitutes and strategies for re-use and recycling.  If rare earth metals are going to play an increasing role in our economy, we need to pursue those strategies.”  The DOE is soliciting information from industry, research labs and other related organizations to gain a more complete understanding of cost and supply issues regarding rare earth metals.

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Last week’s incident left eleven workers missing and presumed dead,  and broke open a deep-sea pipe, which is currently leaking an estimated 5,000 barrels a day into the ocean.  Coordinated efforts from the U.S. Coast Guard and BP – which as leaser of the rig is responsible for all clean-up costs – have not succeeded in containing the oil slick.  Today’s reports indicate that strong winds are pushing the oil towards the shoreline, which is home to a variety of sensitive ecosystems and species that would all be in danger if the oil were to reach land.

The consequences of this major spill could spell disaster for President Obama’s proposal to expand offshore drilling in the United States, which he was offering as a way to encourage bipartisan support for a more far-reaching climate bill.  The President has ceased issuing new offshore drilling leases until a deeper investigation into this explosion is conducted.

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By closing the “efficiency gap” between today’s wasteful production methods and other more streamlined options, we can reduce global resource strain, and potentially save billions of dollars.   For every dollar spent on efficiency methods, the report estimates savings of $2-$4 in what would have been wasted energy.

Important developments in this sector are occurring around the world, including massive smart grid investment in South Korea, construction of new high voltage transmission lines in China and development of smart grid software in high-tech hubs in the United States and India.

The following chart shows where we are now… and how far we still need to go.