Energy Efficiency and Climate Change News: 16 – 22 July 2009
Industry, business and utilities
Emissions trading/Carbon market
General Policy
Taiwan climate bill aims for end-2009 vote (Reuters, 21 July 2009)
A bill putting in place a cap-and-trade scheme in Taiwan passed a first round of votes in December 2008 and may become law as early as the end of the year. The Greenhouse Reduction Act would require industry to reduce GHG emissions, or purchase credits locally or overseas. Environmental Protection Administration executive secretary Yang Ching-shi said that without industry regulation Taiwan would not meet its emissions reduction goals. In its strictest form, the bill would require that factories and vehicles upgrade emissions reduction technologies, with the government providing technical expertise but no money for such measures.
http://www.reuters.com/article/environmentNews/idUSTRE56K21720090721?feedType=RSS&feedName=environmentNews
EU Presidency convenes informal meeting of Environment Ministers (Swedish Presidency)
The EU’s Swedish presidency is inviting EU environment ministers to Are, Sweden this week to discuss the “eco-efficient economy” concept outlined earlier by the Swedish presidency. The meeting will seek to coordinate policy agendas climate change, energy efficiency, innovation and competitiveness.
Meeting agenda http://www.se2009.eu/polopoly_fs/1.5956%21menu/standard/file/preliminary_programme_ARE.pdf; Background info, including paper and eco-efficiency examples from Sweden http://www.se2009.eu/en/meetings_news/2009/7/24/informal_meeting_of_environment_ministers
US officials confident of greater clean energy ties with China (AFP, 16 July 2009)
After three days of meetings in China, US Energy Secretary Steve Chu and Trade Secretary Gary Locke said that the US and China can and will increase their cooperation in the fields of clean energy and energy efficient technologies. A joint R&D initiative announced earlier will take the form of a clean energy research centre, with headquarters in both countries. The centre will also serve as a clearinghouse for information, and will initially focus on energy efficiency, clean coal technology and low-polluting vehicles.
http://news.yahoo.com/s/afp/20090716/sc_afp/financeeconomychinaustradeclimate
Energy Efficiency Watch publishes final report on evaluation of NEEAPs (EEW press release, 13 July 2009)
Energy Efficiency Watch (EEW) has issued a report providing in-depth evaluation 12 NEEAPs submitted by EU countries. Prepared by Ecofys and the Wuppertal Institute, the report selected the 12 NEEAPs as best practice ones, which should be evaluated to inform the second round of NEEAPs. One of the report’s main conclusions is that the Commission should provide a template for reporting future NEEAPs, which would also facilitate evaluation.
http://www.energy-efficiency-watch.org/fileadmin/eew_documents/Documents/Results/EEW_Press_Release_3_-_July_2009.pdf ; Report http://www.energy-efficiency-watch.org/fileadmin/eew_documents/Documents/Results/EEW_-_Final_Report_July_2009.pdf
Kerry Spars With Palin Over Climate (Green Inc.- New York Times, 15 July 2009)
Nearly departed from office, Alaska Governor Sarah Palin has waded into the US climate change debate, publishing an op-ed piece in the Washington Post which called proposed climate change legislation a “cap and tax” scheme, saying it would destroy the US economy. Senator John Kerry riposted with a piece published in the Huffington Post, saying Governor Palin’s article didn’t even mention climate change, and was like “complaining about the cost of repairing a roof without factoring in the leaks destroying your home.”
http://greeninc.blogs.nytimes.com/2009/07/15/kerry-spars-with-palin-over-climate/?hp
International Conference Probes Role of Innovation in Mitigating Climate Change (WIPO press release, 13 July 2009)
The World Intellectual Property Organisation (WIPO) hosted a two-day workshop on IP and public policy issues, including discussion of IP’s role in promoting the development and diffusion of clean technologies for climate change mitigation. Presenters underscored the important role IP can play, providing the necessary incentives for technology development and encouraging investment, while offering options to indentify, transfer and disseminate technologies.
http://www.wipo.int/pressroom/en/articles/2009/article_0020.html ; Presentations http://www.wipo.int/meetings/en/2009/ip_gc_ge/program.html
India rebuffs Clinton call on low-carbon future (Financial Times, 20 July 2009)
On a five-day visit to India, US Secretary of State Hilary Clinton offered a technological partnership between the two countries for developing low-carbon energy sources, reiterating that nothing would be done to stand in the way of India’s economic development. India’s Environment Minister replied by saying the US was viewed with suspicion due to its lack of progress with fulfilling commitments, and called demands on India to reduce emissions a “crisis of credibility”: "There is simply no case for the pressure that we, who have been among the lowest emissions per capita, face to actually reduce emissions… And as if this pressure was not enough, we also face the threat of carbon tariffs on our exports to countries such as yours.”
http://www.ft.com/cms/s/0/5602920c-74c3-11de-8ad5-00144feabdc0.html
U.S. Should Pay for Carbon Content of Imported Goods: Locke (Reuters, 18 July 2009)
Speaking at the American Chamber of Commerce in Shanghai, US Commerce Secretary Gary Locke said that Americans should pay for the carbon content of the imported goods they consume, saying: "It's important that those who consume the products being made all around the world to the benefit of America -- and it's our own consumption activity that's causing the emission of greenhouse gases, then quite frankly Americans need to pay for that."
http://planetark.org/wen/53824
Industry, business and utilities
Energy Consumers Save Under Missouri's New Efficiency Law (ENS, 14 July 2009)
The State of Missouri has enacted a new law allowing utilities to recover investment costs from energy efficiency programmes, which previously was not possible, though costs associated with building new power plants could be. Energy efficiency programmes will need to be approved by the Missouri Public Service Commission, must meet three criteria to qualify: be cost-effective or in the public interest; result in energy savings; be beneficial to the customers to whom it is proposed.
http://www.ens-newswire.com/ens/jul2009/2009-07-14-093.asp?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=556211&utm_campaign=Nightly_%272009-07-16+01%3a15%3a00%27
Greening the World's Multi-Trillion Dollar Investments Gets Asset Managers' and Legal Backing (UNEP, 14 July 2009)
UNEP has issued a report on legal and practical aspects of integrating environmental, social and governance issues into institutional investment. The report has been prepared in partnership with 180 asset managers worldwide.
http://www.unep.org/Documents.Multilingual/Default.asp?DocumentID=593&ArticleID=6247&l=en&t=long ; Report http://www.unepfi.org/fileadmin/documents/fiduciaryII.pdf
China carbon capture costs worth paying: U.S. energy sec (Reuters, 16 July 2009)
US Energy Secretary Steve Chu says that even if CCS technology means greater energy consumption (to drive the facility, transport and store the carbon), an “energy penalty” of up to 30% would still be modest compared to the cost of not developing CCS and allowing CO2 emissions.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE56F2DS20090716?sp=true
IMO environment meeting issues technical and operational measures to address GHG emissions from ships (IMO, 20 July 2009)
At its meeting last week, the Marine Environment Protection Committee (MEPC) of the International Maritime Organization (IMO) agreed a work plan on market-based instruments to tackle GHG emissions in shipping, taking into the outcomes at Copenhagen. The MEPC noted there was a preference towards using any revenue from a market-based instrument to fund climate change actions in developing countries, and that any global regulatory scheme applying to GHG emissions from shipping should be handled by the IMO. Meanwhile, the MEPC issued a package of voluntary technical and operational measures to reduce GHG emissions, to be used for trial purposes until March 2010. These include guidelines on calculation and verification of an Energy Efficiency Design Index and guidance on a Ship Energy Efficiency Management Plan.
http://www.imo.org/Newsroom/mainframe.asp?topic_id=1773&doc_id=11579 (Briefing 27)
U.S. Green Jobs Seen Taking Years of Planning (Reuters, 21 July 2009)
Testifying before the Senate’s Environment and Public Works Committee, several US state governors said that policies such as regional cap-and-trade schemes or green power mandates have helped create green jobs – but that the policies can take years to put into place, underscoring urgent action on finalising legislation and enacting policies. The governors of Colorado and New Jersey said they can see the positive effect of policies on creating green jobs now, from legislation initiated five to six years ago.
http://planetark.org/wen/53869
Scoping meeting for IPCC 5th Assessment Report concludes
The IPCC Fifth assessment report will focus more on the economics of climate change, which will include issues such as “decision making under uncertainty, inter- and intra-generational justice, the costs of mitigation when the availability of technologies is limited or participation in international agreements is delayed, and the economics of adaptation”. In addition, the impacts of climate change on society will also be a new area for study.
Meeting homepage: http://www.ipcc.ch/workshops-experts-meetings-ar5-scoping.htm; Chairman’s vision paper http://www.ipcc.ch/scoping_meeting_ar5/documents/doc02.pdf
Appliances and equipment
Samsung Electronics to Invest 5.4 Trln Won for Green R&D (Reuters, 20 July 2009)
Samsung Electronics said the company would invest KRW 5.4 trillion (USD 4.3 billion) over its global operations, supply chain and the lifecycle of products to improve environmental performance and reduce GHG emissions. KRW 3.1 trillion will be spent on developing environmentally-friendly products, with the remainder spent on energy-saving technologies and improving the environmental performance of manufacturing facilities. Samsung’s eco-management 2013 plan aims to reduce emissions from manufacturing 50%, cut total indirect GHG emissions from its products by 84 million tonnes, and ensure 100% of products are eco-friendly.
http://planetark.org/wen/53855
Buildings
United States Signs Agreement with China on Building Energy Efficiency (EERE News, 22 July 2009)
During the US Energy Secretary’s recent visit to China, the DOE and the Chinese Ministry of Urban-Rural Development (MOHURD) signed a joint agreement to collaborate in the field of building efficiency. The agreement will involve an exchange of experts, the possibility of shared demonstration projects, as well as examining policy incentives or regulatory reform to promote energy-efficient urban development in China based on combined experience and lessons learned. Specifically, MOHURD's "eco-cities" initiative will be supported, including collaboration on developing standards and guidelines for sustainable cities.
http://apps1.eere.energy.gov/news/enn.cfm
Transport
Toyota to Build Hybrid Auris Hatchback at U.K. Plants (Reuters, 16 July; Bloomberg, 17 July 2009)
Toyota has announced it will be building gas-electric hybrid Auris hatchback cars at two UK factories, a move welcomed by the UK government, currently in talks with as many as 20 auto-companies about possible loan support for investment plans. The company says the hybrid Auris uses 19% less fuel and emits 17% less CO2 than the standard version.
http://www.bloomberg.com/apps/news?pid=20601209&sid=aoh7iP4suUTY ; http://uk.news.yahoo.com/22/20090716/tpl-uk-autos-britain-toyota-d1a0d5d.html
Nissan to make electric cars in Britain (The Guardian, 19 July 2009)
The UK’s Business Secretary Lord Mandelson announced the North East of England has been chosen as a Low Carbon Economic Area. Automotive company Nissan has been convinced to base a new European green car manufacturing site at its UK headquarters, and plans for a R&D centre on zero carbon vehicles involving five universities in the area are to be unveiled. There are also plans to create a technology park for supplying green vehicles.
http://www.guardian.co.uk/business/2009/jul/19/mandelson-electric-cars-nissan
Emissions trading/Carbon market
Climate NGO: EU Emissions Trading Scheme Gets Lost at Sea (Sandbag press release, 19 July 2009)
British NGO Sandbag has released a report warning that a potential 1.6 billion tonnes worth of surplus permits could be available to entities participating in the EU ETS between now and 2012, resulting not only in an environmentally compromised cap, but a low carbon price. Sandbag is calling for the ETS cap to be tightened to 30% below 2005 levels by 2020, which it says is cheaper and nearly equivalent in effort to meeting the current 21% reductions target.
http://www.sandbag.org.uk/node/172; Report, “ETS S.O.S” http://sandbag.org.uk/files/sandbag.org.uk/Sandbag_ETS_SOS_Report_0.pdf
Carbon Trading Vital to Climate Success – UK PM Report (DECC press release, Reuters, 20 July 2009)
A report on global carbon trading commissioned by the UK government calls for a dual system of national caps and emissions trading schemes (ETS), saying a single global ETS would reduce governments’ autonomy and be difficult to implement. The report finds that carbon trading systems can deliver substantial cuts and reduced cost, and could be an important means of delivering financing for climate change mitigation in developing countries. However, it underlines that cap-and-trade schemes are not sufficient and must act alongside other targeted policies and measures. A first priority is to link the EU ETS with a future US federal cap-and-trade scheme, eventually expanding to an OECD-wide ETS. The report also recommends a reform of the CDM, favouring a sectoral approach.
http://www.decc.gov.uk/en/content/cms/news/pn082/pn082.aspx (with link to full report); http://www.reuters.com/article/environmentNews/idUSTRE56J1BW20090720?feedType=RSS&feedName=environmentNews&sp=true
Dutch government changes VAT rule to prevent carrousel fraud (Climex, 14 July 2009)
The Dutch government has changed regarding value added tax (VAT) rules on carbon trading as of 15 July, transferring the obligation to pay VAT from the seller to the buyer.
http://community.newvalues.net/2009/07/dutch_government_changes_vat_r.html; Dutch government press release http://www.minfin.nl/Actueel/Nieuwsberichten/2009/07/De_Jager_grijpt_in_bij_BTW_carrouselfraude_CO2_emissierechten (in Dutch)
Energy-Intensive Industries Want More CO2 Permits (Reuters, 16 July 2009)
Energy intensive industries are lobbying the US Senate for their share of free allowances under a proposed cap-and-trade scheme to be increased from the 13.5% currently included in the bill, to 15%.
http://planetark.org/wen/53805
Czechs expect to sell most CO2 rights in '09 (Reuters, 17 July 2009)
A Czech government official has said the country may be finalising the sale of up to 90% of its GHG emission right surplus this year, saying talks with Spain and Austria are being finalised, as are agreements with private Japanese companies. The Czech Republic is going ahead with sales in the face of a recovering carbon market. Earlier in March the Environment Ministry had said it would seek approximately USD 543.8 million from sales, which would have no impact on the state budget since the revenue will be earmarked for energy-saving projects.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE56G53520090717
Carbon market trading rose 61% last year: study (MarketWatch, 20 July 2009)
According to London-based International Financial Services (IFSL), trade in CO2 on global markets increased 61% from 2007 to 2008, reaching 4.81 billion tonnes, versus a 71% increase from 2006 to 2007. London-based brokers saw trade rise 82% in the first five months of 2009, though prices decreased compared with 2008, reaching USD 13.50/tonne in June 2009 after dropping to USD 10 in February (compared with USD 25/tonne in September 2008). Trading in the EU ETS reached 3.2 billion tonnes in the first six months of 2009, as opposed to 2.7 billion tonnes traded in all of 2008.
http://www.marketwatch.com/story/carbon-market-trading-rose-61-last-year-study
Climate change negotiations
UNDP Invites Comments on Methodology on Assessment of Investment and Financial Flows to Address Climate Change (Climate L, 10 July 2009)
As part of its Global project on capacity development for policy makers, the UNDP has released a Methodology Guidebook and Reporting Guidelines for the Assessment of Investment & Financial Flows to Address Climate Change. The documents are meant to be revised, based on country experience with them –countries participating in the capacity development project will be piloting the methodology for selected sectors. Expert comments on the guidebook and guidelines are currently being solicited.
http://climate-l.org/2009/07/15/undp-invites-comments-on-methodology-on-assessment-of-investment-and-financial-flows-to-address-climate-change/ ; View the materials at http://www.undpcc.org/content/inv_flows-en.aspx
Climbdown on 2˚C clause done as a last resort? (Times of India, The Hindu, 17 July)
The acceptance by Indian negotiators of a 2 degree Celsius limit included in the Major Economies Forum (MEF) declaration has led to much discussion in India, with former Indian negotiator Surya Sethi saying the compromise will hinder India’s development. It has also brought out a disconnect between India’s foreign and environment ministries, which are now aiming to better coordinate positions. Special envoy Shyam Saran defended the compromise, saying it prevented developing countries from being tied down by targets. He reiterated that India’s position on climate change hadn’t changed and that developing countries were still united in their stance.
http://timesofindia.indiatimes.com/NEWS-Environment-Global-Warming-Climbdown-on-2C-clause-done-as-a-last-resort-/articleshow/4787408.cms; http://timesofindia.indiatimes.com/NEWS-Environment-Global-Warming-Emission-compromise-at-cost-of-development/articleshow/4787420.cms; http://www.hindu.com/2009/07/17/stories/2009071760081200.htm