Energy Efficiency and Climate Change News: 13 - 19 August 2009
Industry, business and utilities
Emissions trading/Carbon market
General Policy
New Delhi to overhaul green regulation (Financial Times, 13 August 2009)
In light of the dire news regarding depletion of resources and pollution in the first State of the Environment Report in eight years, India’s Ministry of Environment has announced it will establish and environmental protection agency and “green courts”. The green courts would have authority over forestry and environmental matters, with civil powers allowing them to impose fines and issue jail sentences.
http://www.ft.com/cms/s/0/50542e34-87a0-11de-9280-00144feabdc0.html
China signals long-term plans to curb greenhouse gases (Reuters, 13 August 2009)
Xinhua news agency reported on the results of a cabinet meeting held Wednesday, in which Premier Wen Jiabao stated that global warming was a threat to China’s environment and economy, and that controlling greenhouse gas emissions and adapting to climate change would be an important basis for setting mid- and long-term development plans at all levels of government.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57C05L20090813?sp=true
Clean Technology May Trump Tough Emissions Controls, Joint U.S.-China Study Says (New York Times, 17 August 2009)
In a new report, the Center for Clean Air Policy (CCAP) says that establishing technology targets in developing countries may be a more realistic way of trying to reduce emissions, rather than establishing emissions targets and caps which require robust data, measurement and verification systems that most countries simply do not have in place. While not “theoretically optimal”, the report’s authors say the approach may be more “reasonably practical”. The study looked at specific industries that could benefit from deploying pre-selected technologies known to be relatively energy-efficient, looking at China’s cement, iron and steel sectors as an example.
http://www.nytimes.com/cwire/2009/08/17/17climatewire-clean-technology-may-trump-tough-emissions-c-19467.html ; See report http://www.ccap.org/docs/resources/691/Technology-based%20sectoral%20NAMAs%20-%20FINAL%20July%208%202009.pdf
India must invest in green technology: PM Singh (Reuters, 18 August 2009)
Asserting that India’s growth strategy “must be different” from that of current industrialised countries, India’s Prime Minister Manmohan Singh said the country needed access to technologies already available to developed countries, as well as to invest domestically into environmentally-friendly technologies.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57H18S20090818?sp=true
Unions favour deep CO2 cuts and green jobs (Reuters, 18 August 2009)
Though a “fragile consensus”, the secretary general of the Brussels-based International Trade Union Confederation (ITUC) says the group endorsed deep cuts in global GHG emissions. The ITUC, representing 168 million workers in 155 countries, says the social and labour issues and consequences of transitioning to greener economy must also be addressed. Though overall the group believes such a transition could lead to more job being created than lost, it will still require significant investment on the part of governments.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57H4E020090818?sp=true
Japan green subsidies erode savings (Reuters, 14 August 2009)
Subsidies for the purchase of low-emission cars and energy-efficient electronic goods have boosted consumer spending in Japan. Toyota’s hybrid Prius became the country’s best-selling car in June and July, and sales of energy-efficient flat screen TVs rose 58% in July as compared with a year earlier. Economists are concerned this increase in spending is eroding household savings, which could be harmful to the economy overall.
http://www.reuters.com/article/GCA-GreenBusiness/idUST7890620090814
US announces $2.3bn in clean energy tax breaks (BusinessGreen, 14 August 2009)
The US Treasury and Department of Energy announced a new USD 2.3 billion tax credit programme for manufacturers of low-carbon energy equipment, including fuel cells, batteries, electric cars, advanced grid systems, solar energy systems, CCS, large and small-scale wind turbines, geothermal energy equipment and energy conservation technologies. Manufacturers will be eligible for a 30% investment tax credit.
http://www.businessgreen.com/business-green/news/2247873/announces-3bn-clean-energy-tax; Guidelines for the tax credits http://www.energy.gov/recovery/48C.htm
Australia to split green energy from carbon laws (Reuters, 16 August 2009)
The Australian government announced it would separate planned Renewable Energy Target legislation from that of the Carbon Pollution Reduction Scheme (CPRS), as previously requested by the opposition. While passage of the CPRS has been blocked and is fraught with difficulty, the mandatory 20% renewable energy target has broad support. The government said it will present CPRS legislation once again before the end of the year.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57F05K20090816
China study urges greenhouse gas caps, peak in 2030 (Reuters, 17 August 2009)
Dozens of Chinese scholars and policy advisors have contributed to the 2050 China Energy and C02 Emissions Report, saying that China should take on relative carbon emissions targets as soon as possible, moving on to absolute emissions caps. According to the report, with the right policies in place China could slow emissions growth by 2020, reaching a peak around 2030, and reducing emissions by 2050 to 2005 levels or lower. The report is not, however, intended as a policy blueprint, but is described as a research exercise.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57G0C520090817
Industry, business and utilities
Companies from world's top 2 producers of CO2 get together (Cop15, 11 August 2009)
Duke Energy Corp. and China Huaneng Group have signed an agreement allowing the Chinese and US companies to share information and collaborate in the areas of renewable energy and clean energy technology. Developing carbon capture and storage technology will be a key area in which the two companies will work together.
http://en.cop15.dk/news/view+news?newsid=1856
Renewable energy laws pass Australia's parliament (Reuters, 19 August 2009)
Australia’s Senate will vote on a Renewable Energy Target bill tomorrow, which currently enjoys support across all parties. The bill will require 20% of Australia’s energy to be produced from renewable energy sources by 2020, with electricity retailers obliged to provide renewable-sourced power. Green Party senators failed to get the target increased to 30%, while the government had to concede interim compensation measures to certain industry sectors (until carbon trade laws and associated compensation schemes are passed or rejected), and also agreed to classify coal seam methane gas as a renewable energy source – though this would not count towards the 20% target. Climate Change Minister Penny Wong continued to “ urge those opposite who have become supporters of renewable energy in recent times to join the bigger fight… against climate change.”
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57I0JB20090819?sp=true
China losing out in low-carbon economy bonanza (Reuters, 19 August 2009)
Mei Dewen, the general manager of the China Beijing Environmental Exchange (CBEEX), says China does not yet currently have the financial instruments necessary to take the carbon market forward, citing restrictions on the creation of secondary carbon markets or CER trading within China. However, Mei says the CBEEX is experimenting with the creation of a voluntary market, and has already sold a first batch of voluntary emission reduction certificates (VERs), with a second auction scheduled for next month.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57I0HO20090819?sp=true
North America will map carbon-intensive industries (Cop15, 17 August 2009)
At last week’s North American summit, leaders from Canada, the US and Mexico agreed to partner and establish a “North American Carbon Atlas”, mapping sites of carbon-intensive industries as well as underground sites for CCS. The database would allow for changes in emissions to be tracked, while the partnership will also explore collaboration on R&D and demonstration activities.
http://en.cop15.dk/news/view+news?newsid=1884
Green dollars moving to smart grid, energy storage (Reuters, 17 August 2009)
Analysts say cleantech investment in the US appears to be picking up, and is expected to continue to improve through to 2010, though it is uncertain the high levels of investment seen in 2007 and 2008 will be seen by then. Faced with illiquidity, investors are moving to less capital-intensive investments, such as those in energy generation, towards energy storage, transportation, and smart grids.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57G3YR20090817
Big business waits for political decisions (Cop15, 13 August 2009)
A new report conducted by British Ethical Investment Research Services (EIRIS) examines climate change aspects of the FTSE All World Index’s 300 largest companies. The report sees some improvement in companies from 2008 and 2009, with 91% of high and very high impact companies disclosing some GHG emissions data in 2009 compared with 73% in 2008. In addition, 55% of companies have short-term climate change targets, up from 48% in 2008. However, the report highlights a lack of longer-term climate change strategies stretching from five to ten years. EIRIS Assistant Head of Research Carlota Garcia-Manas says this may be due to business uncertainty regarding how governments will regulate emissions.
http://en.cop15.dk/news/view+news?newsid=1868
Norway oil fund expands "green activist" role (Reuters, 14 August 2009)
Norway’s sovereign wealth fund will be scrutinising more closely the environmental profile of the companies it invests in, saying it is concerned that lack of concern for such issues could eventually affect profitability. The fund is publishing a report on its expectations for company environmental management, and will screen “high risk” sectors and issue yearly compliance reports. The assessment of company performance will not be made public, but discussed with them. Continued poor environmental performance could lead to blacklisting by the fund’s ethics council.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57D0ZL20090814
Renewables and Energy Efficiency Alone Could Power Michigan (ENS, 12 August 2009)
A new report by Synapse Energy Economics commissioned by the Natural Resources Defense Council, A Green Energy Alternative for Michigan, argues that the state of Michigan’s current electricity plan is out of date, and that future energy needs could be met through investments in energy efficiency, followed by renewable energy generation. An energy efficiency programme alone, says the report, will save USD 3 billion in electricity costs over the next 20 years. The report underlines that given federal regulation of GHGs is inevitable, continuing to invest in coal-fired power plants will saddle ratepayers with increased costs. An Executive Directive issued in July sets a target of reducing state emissions20% by 2020 and 80% by 2050, and includes revising building codes for increased efficiency, as well as expanding intelligent transport systems.
http://www.ens-newswire.com/ens/aug2009/2009-08-12-091.asp?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=556211&utm_campaign=Nightly_%272009-08-14+01%3a15%3a00%27; Report http://docs.nrdc.org/energy/ene_09081101.asp
Buildings
Environment Ministry overhauls flagship carbon cutting programme following cool response (Radio Praha, 11 August 2009)
Earlier this year the Czech Ministry of Environment launched a Green Saving Programme, drawing on a fund of USD 1.4 billion from the sale of AAUs to provide subsidies for home insulation, or the installation of solar energy or heat pumps. Four months later, the Programme has been deemed a failure, with only 205 projects cleared. Sweeping changes to the Programme will thus be implemented; simplifying lengthy paperwork, offering grants for improvements in high-rise flats, grants for small individual projects such as changing windows, and financial assistance for larger more complex projects. The Ministry believes the uptake will increase and that the funds will be disbursed by the end of 2012.
http://www.radio.cz/en/article/119168
Transport
UK Government Scrappage Scheme reaches halfway mark: impact on CO2 emissions (BIS, 10 August 2009)
Since the UK’s car scrapping scheme’s launch in April, the government says nearly 155 thousand orders have been placed; on average, new cars under the scheme have CO2 emissions 25% lower than the scrapped cars. Scrapped cars on average emit 179 g CO2/km, compared with an average of 133.9 g CO2/km for the new cars purchased under the scheme.
http://nds.coi.gov.uk/clientmicrosite/Content/Detail.aspx?ClientId=431&NewsAreaId=2&ReleaseID=405745&SubjectId=36
New York to Study Effects of Plug-In Hybrids on State's Grid (ENS, 11 August 2009)
The New York State Energy Research and Development Authority (NYSERDA) and the Electric Power Research Institute (EPRI) are conducting an engineering study to assess the impact of the introduction and the widespread use of plug-in hybrid vehicles on the State’s electric transmission and distribution systems.
http://www.ens-newswire.com/ens/aug2009/2009-08-11-093.asp?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=556211&utm_campaign=Nightly_%272009-08-12+01%3a15%3a00%27
New drive for creative thinking (Financial Times, 13 August 2009)
Revolutionary research has come out of Korea’s Advanced Institute of Science and Technology (Kaist), whose president Suh Nam-pyo challenged engineers to develop an electric vehicle that would charge itself from cables beneath the road rather than by battery. The team succeeded, and during his visit to the university, President Lee Myung-bak was driven around in an Olev – the online electric vehicle. The Korean government has decided to pump EUR 28 million into Kaist to help develop the electric vehicles and another project, mobile harbours. Mr Suh says the achievement is indicative of a broader shift in innovative research and thinking in Korea, which he says will require a change in the country’s rote-learning education system.
http://www.ft.com/cms/s/0/e0c392c6-879f-11de-9280-00144feabdc0.html
T&E: EU Transport sector CO2 emissions underestimated (T&E, 13 August 2009)
The report argues that the exclusion of international bunkers (aviation and shipping) from official UNFCCC reporting leads to an underestimation of the transport sector’s contribution to climate change. European transport green group T&E has released a report saying that the true place of the EU’s GHG emissions from transport is underestimated; the group says these increased 35% between 1990 and 2007, while emissions in other sectors decreased 8.9%. Emissions from shipping and aviation have risen 60% and 109% respectively, pointing to the urgency of dealing with these sectors under a future global climate change regime.
http://www.transportenvironment.org/Downloads/view/cid:3/
Appliances and equipment
EU inefficient light bulb phase-out around the corner (Osram, 11 August 2009)
An EU ban on the sale of incandescent light bulbs will start as of September 2009, phasing out the bulbs for household lighting by 2012. As of September, frosted glass and 100W incandescent light bulbs will no longer be available for sale. Manufacturers Osram and Siemens say that the ruling has already had an effect – the sale of incandescent light bulbs fell 35% in the first quarter of 2009 in several European countries.
http://w1.siemens.com/press/pool/de/pressemitteilungen/2009/osram/OSRAM-Europe-energy-efficient-lighting.pdf ; http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/411
Emissions trading/Carbon market
Australian parliament rejects carbon trade plan (Reuters, 13 August 2009)
The Australian Senate voted down passage of the 11 carbon pollution reduction scheme bills, raising the possibility a snap election could be called if the bill is rejected once again after three months. Climate Change Minister Penny Wong said the government would not back down, saying "We will bring this bill back before the end of the year because if we don't this nation goes to Copenhagen with no means to deliver our targets." Australia’s second-largest power retailer said continuing uncertainty over the bill was delaying investments. The Australian Greens have proposed engaging with the government to strengthen carbon reduction targets in the bills and provide stronger backing for renewable energy.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57B62720090813?sp=true
Japan nears carbon rights deal with Latvia: source (Reuters, 13 August 2009)
Sources have revealed that the Japanese government and Carbon Finance Ltd, which manages funds of about 30 large Japanese companies, have negotiated a deal to purchase 1.5 million tons of Kyoto Protocol Assigned Amount Units (AAUs) from Latvia. As with previous deals completed with Ukraine and the Czech Republic, Japan has included “Green Investment Scheme” clauses requiring that the funds used to purchase the AAUs be used for climate change mitigation purposes.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57C0XC20090813?sp=true
CFTC seeks to boost oversight of carbon trading (Reuters, 17 August 2009)
As part of its new authority to exert increased oversight over contracts listed on exempt commercial markets that play an important role in setting the price for a commodity, the US Commodity Futures Trading Commission(CFTC) is proposing to increase federal oversight over the Chicago Climate Exchange’s (CCX) carbon spot contract. The CCX said it welcome sound regulation, carbon market transparency, and looked forward to working with the CFTC.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57G5BE20090818
Climate change negotiations
Bonn Climate Talks Move at Glacial Pace (ENS, 14 August 2009)
A week of informal negotiations towards a Copenhagen agreement in Bonn concluded without much progress, with UNFCCC executive secretary Yvo de Boer saying that with limited time remaining and the current pace of negotiations, these “will need to considerably pick up speed for the world to achieve a successful result at Copenhagen." US Head of delegation Jonathan Pershing said differences of views remained primarily regarding how major developing countries can participate in a legally binding agreement requiring them to undertake robust, domestic mitigation actions.
http://www.ens-newswire.com/ens/aug2009/2009-08-14-01.asp?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=556211&utm_campaign=Nightly_%272009-08-16+01%3a15%3a00%27
See Earth Negotiations Bulletin reports on the talks: http://www.iisd.ca/climate/ccwgi/