Energy Efficiency and Climate Change News: : 17 - 23 September 2009
Industry, business and utilities
Emissions trading/Carbon market
General Policy
U.S. to track greenhouse gases for first time (Reuters, EPA press release, 22 September 2009)
The US EPA has finalised proposed GHG reporting rules applying to approximately 10 000 facilities that would take effect January 2010. The reporting rules would cover approximately 85% of the country’s GHG emissions. Some source categories included in the rules are still under review, while vehicle and engine manufacturers outside of the light-duty sector will begin phasing in reporting with the 2011 model year. The reporting system covers four GHGs: carbon dioxide, methane, nitrous oxide and hydrofluorocarbons.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58L3AK20090922; http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/194e412153fcffea8525763900530d75!OpenDocument
China studying tax on greenhouse gas emissions: report (Reuters, 23 September 2009)
Citing unnamed government officials, the 21st Century Business Herald reported that several Chinese ministries were studying a proposal to tax GHG emissions prepared by the Energy Research Institute (ERI) of the National Development and Reform Commission. The ERI proposal indicates China should not implement such a tax until it launched a resources tax, and that it would take at least four to five years to put in place. A tax rate of CNY 10-20/tonne was proposed for the initial phase, eventually rising to CNY 300-400/tonne.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58M0MZ20090923
Can China make a great green leap forward? (Times Online, 23 September 2009)
The Times world business editor comments that China’s announcement that it will reduce the carbon and energy intensity of its economy is achievable, as it is simply the speeding up of a natural cycle. In order to achieve this China needs to focus on two areas: Embrace market forces and let the true cost of energy pass on to consumers, and target coal-based power generation.
http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article6844955.ece
France and Germany could propose border tax measures (Press Conference, 17 September 2009)
At an informal meeting of EU member states, French President Nicolas Sarkozy said France and Germany would propose a border tax or equivalent measure on companies not subject to environmental regulation as they are within the EU. While France had initially proposed the measure and met with resistance, the President said other countries were warming to the idea, now correctly understood not as a protectionist measure, but a “rebalancing” measure. In a question and answer period, he added that they could not tax European industries and exonerate others.
http://www.elysee.fr/documents/index.php?mode=cview&cat_id=3&press_id=2928&lang=fr (in French)
Swedish budget: More efficiency measures; CDM purchase (Press release, 20 September 2009)
In its draft 2010 budget, the Swedish government will take additional measures to promote more efficient energy use in industry, agriculture and forestry, the construction sector, households and the public sector. It also proposes allocating additional funds for CDM projects.
http://www.sweden.gov.se/sb/d/11760/a/132080
ADB to Extend $780 Million to Pakistan for Energy Efficiency (ADB press release, 17 September 2009)
The Asian Development Bank (ADB) is providing USD 780 million in regular and concessional loans to Pakistan for funding energy efficiency projects. This will fund part of the Pakistani government’s new 10-year energy efficiency investment plan, financing short- to mid-term projects such as CFL replacement. The programme will also help reduce public expenditures and subsidies, as well as remove financial barriers.
http://www.adb.org/Media/Articles/2009/12987-pakistani-energies-projects/
Les niches fiscales contre l'environnement (La Tribune, 17 September 2009)
Despite recurrent debate on cutting fiscal spending in France, none suggests cutting spending on energy subsidies, which are estimated at EUR 5 billion per year, mostly on tax exemptions or reductions on transportation and transport fuels. Implementing a carbon tax, as currently suggested, would bring the government less in revenues than it loses due to subsidised tax rates on fuel. Author Professor Guillaume Sainteny argues for a progressive reduction and restructuring of such fiscal spending that is environmentally harmful.
http://www.latribune.fr/opinions/20090917trib000423210/les-niches-fiscales-contre-l-environnement.html (in French)
Scotland unveils world's first carbon budget (The Guardian, 17 September 2009)
The Scottish government has become the first to include carbon dioxide emissions, alongside cost and quality, as a factor to guide public policy spending decisions and contracts, by linking the estimated CO2 emissions with government spending through “carbon budgets”. These are based on estimates that will be refined over time, according to finance secretary John Swimney. The budgets have already been criticised for not applying to individual projects and policies, as well as for failing to include emissions from vehicles in estimates of spending on roads. The carbon sequestration effects of Scotland’s forestry estate are not included in rural affairs spending either.
http://www.guardian.co.uk/environment/2009/sep/17/scotland-carbon-budget-spending; link to datasheet http://www.guardian.co.uk/news/datablog/2009/sep/18/scotland-carbon-emissions
North America backs plan to cut greenhouse gases (Cop15, 16 September 2009)
Lending weight to proposals made several months ago by small island states Micronesia and Mauritius, the US, Canada and Mexico announced that they support amending the Montreal Protocol on ozone-depleting substances to phase out hydrofluorocarbons (HFCs), a powerful greenhouse gas. The use of HFCs has been encouraged under the Montreal Protocol, as they are used as coolants to replace ozone-depleting chlorofluorocarbons, or CFCs.
http://en.cop15.dk/news/view+news?newsid=2112
Norway to consider increasing 2020 CO2 cuts (Reuters, 21 September 2009)
Norwegian Prime Minister Jens Stoltenberg announced Norway would be open to deepening its current target of reducing GHG emissions 30% from 1990 levels by 2020, should this contribute to reaching an agreement at climate change talks in Copenhagen in December. Norway also has a goal of becoming carbon neutral by 2030, meaning it would offset all of its emissions.
http://www.reuters.com/article/environmentNews/idUSTRE58K1N620090921
Industry, business and utilities
China’s green-tech market could reach $1 trillion by 2013 – report (Environmental Finance, 17 September 2009)
The China Greentech Initiative, a collaborative grouping of over 80 technology companies, investors, professional services firms and NGOs, has released a report on China’s green-tech market, saying it could make up 15% of China’s GDP by 2013 growing to between USD 500 billion and USD 1 trillion. The report covers seven green-tech sectors: cleaner conventional energy, renewable energy, electric power infrastructure, green building, cleaner transportation, cleaner industry and clean water. It also highlighted that the green-tech sector will require companies to have an open mind and to collaborate with each other. In terms of hurdles, the report pointed to the higher costs of green-tech and financing challenges, as well as the need to adapt technologies to the Chinese market.
http://www.environmental-finance.com/onlinews/1709chi.html ; http://www.china-greentech.com/report
U.S. court reinstates emissions suit vs. utilities (Reuters, 21 September 2009)
A US appeals court has reinstated a 2004 lawsuit against five of the largest US utilities brought by eight states and the city of New York. The lawsuit argued that GHG emissions from the plants were a public nuisance, but was dismissed in 2005 as being non-justiciable political questions. The appeals court said two of the complaints were wrongfully dismissed as such, and that “the federal common law of nuisance governs their claims”.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58K4VT20090921?pageNumber=2&virtualBrandChannel=10522&sp=true
Climate revenue soars 75 per cent as businesses lead global warming fight (BusinessGreen, 18 September 2009)
HSBC’s annual review of climate change indices finds that revenue at firms providing climate change-related goods and services increased 75% during 2008, exceeding USD 500 billion, and out-growing the defence and aerospace industries. The report concluded that the economic crisis is unlikely to damage the sector’s growth, and that companies taking the lead in addressing climate change can indeed reap significant commercial benefit.
http://www.businessgreen.com/business-green/news/2249742/climate-related-revenues-soar
California utility quits US Chamber of Commerce over climate-sceptic stance (BusinessGreen, 23 September 2009)
California's Pacific Gas and Electric (PG &E), one of the US’s largest utilities, has left the influential US Chamber of Commerce due to “fundamental differences” over climate change. PG&E notably took exception to the Chamber of Commerce’s campaigns to challenge the accepted science on climate change, including filing a petition with the EPA asking it to hold public hearings on the science of climate change. PG&E said the Chamber’s extreme view on climate change did not reflect the range of views held by its members.
http://www.businessgreen.com/business-green/news/2249933/california-utility-quits
Electricity costs should rise to reflect demand: Chu (Reuters, 21 September 2009)
While most electricity rate commissions try and keep electricity prices as low as possible, US Energy Secretary Steve Chu said this will need to change in the future as energy is decarbonised and the grid becomes more sophisticated, so that the real cost of electricity generation are passed along. In addition to a price signal, consumers also need to be provided with simple means of reducing their energy consumption.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58K46620090921
DOE Announces $144 Million in Recovery Act Funding for the Smart Grid (DOE, 23 September 2009)
The US DOE announced that USD 144 million in Recovery and Reinvestment Act spending would be allocated to the electric power sector. USD 100 million will be spent in two phases to develop smart-grid workforce training programmes and strategies, and for conducting training and re-training activities for electric utility workers and electrical equipment manufacturers. Over USD 44 million will be awarded to state public utility commissions to hire new staff and retrain employees. The funding is also to help the initial review of investments in projects such as energy efficiency, renewable energy, CCS, transmission lines, energy storage, smart grid, demand response equipment, and electric and hybrid-electric vehicles.
http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=15501
Airline industry plans 50% cut in emissions (Financial Times, 22 September 2009)
The International Air Transport Association (IATA) announced its members have agreed to cut net CO2 emissions 50% from 2005 levels by 2050. Carbon efficiency would be improved 1.5% per year until 2020, from which time net emissions would be stabilised. IATA members number 230 airlines, making up 93% of scheduled international air traffic. Environmentalists said the target doesn’t go far enough, while some observers say it could substantially raise the cost of flying. The announcement could set a precedent for sectoral efforts to reduce emissions, though some business leaders warn this could be complex.
http://www.ft.com/cms/s/0/c65d6346-a75f-11de-9467-00144feabdc0.html
Buildings
EU starts hammering out deal on buildings directive (EurActiv, 16 September 2009)
Talks between the European Parliament and Council on the recast of the EPBD will start at the end of the month, with several conflicting positions. One surrounds the recast Directive’s implementation date, with member states seeking two to three years for implementation. There is agreement, however, that public buildings should seek to comply sooner. Other areas of conflict include whether the term “zero-energy building” will be used, whether a common definition or simply guiding principles for “low-energy” buildings should be included, as well as targets for low-energy or energy neutral buildings.
http://www.euractiv.com/en/energy-efficiency/eu-starts-hammering-deal-buildings-directive/article-185478
EurAce reviews national financing for building energy efficiency (15 September 2009)
Industry association EurAce has published a review of existing national financing mechanisms to encourage energy efficiency improvements in buildings, with a view to inform legislation debate surrounding the recast of the EPBD due to begin at the end of the month. Financing mechanisms are one of the contentious issues of the recast debate between the European Council and Parliament.
http://www.euroace.org/EuroACE%20documents/September%202009%20EuroACE_Working_Paper_Financial_and_Fiscal_Instruments_for_Energy_Efficiency_in_Buildings.pdf
Appliances and equipment
EU to correct mistakes in lighting ecodesign laws (ENDS Europe Daily, 17 September 2009)
The European Commission will be issuing changes to ecodesign rules on household and tertiary lighting, after certain oversights were spotted during a review. The rules on incandescent and low-efficiency halogen light bulbs unintentionally effectively banned the use of certain tungsten halogen light bulbs, which cannot for the moment be replaced. Changes to rules on tertiary lighting are also being made, as they do not exempt emergency ballasts and explosion proof lamps, and also unintentionally exempted certain halophosphate fluorescent lamps. The omissions were spotted by industry after the rules’ adoption. According to ENDS, amendments to household lighting rules should pass by early next week, while those for tertiary lighting will be adopted before the standards enter force in April 2010.
http://www.endseurope.com/22181?referrer=bulletin&DCMP=EMC-ENDS-EUROPE-DAILY (by subscription; free trial possible)
Emissions trading/Carbon market
(Commission press release, 18 September 2009)
EU Member States approved a draft Decision identifying 164 sectors and sub-sectors at risk of carbon leakage, and thus eligible to receive 100% of benchmarked allowances for free from 2013. The sectors are estimated to account for approximately a quarter of total EU ETS emissions, and around 77% of total manufacturing industry emissions in the ETS.
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1338&format=HTML&aged=0&language=EN&guiLanguage=en ; draft Commission Decision http://ec.europa.eu/environment/climat/emission/pdf/draft_dec_carbon_leakage_list16sep.pdf
Japan eyes mandatory cap-and-trade in 2011/12: Nikkei (Reuters, 19 September 2009)
The Nikkei business daily said Japan’s new government will seek to introduce a mandatory cap-and-trade scheme as early as March 2012, as part of its new goal of cutting GHG emissions 25% from 1990 levels by 2025.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58J03020090920
Climate change negotiations
China commits to reducing emissions intensity (Financial Times, 22 September 2009; Reuters, 22 & 23 September 2009)
At a UN climate change summit in New York, Chinese President Hu Jintao did not reveal specific emission reduction targets, but did say China will “endeavour to cut carbon dioxide emissions per unit of GDP by a notable margin by 2020 from the 2005 level.” The target will build on current commitments to expand the use of nuclear and renewable energy, as well as to reduce energy intensity and increase forest cover. He reiterated a call that developed countries support poorer countries with finance and green technology. Leaders had been looking to China for firm action, partly to push the US in passing domestic climate change legislation. Though seen as a significant announcement, some observers were unsure it would have the needed impact on negotiations without a clear figure. Xie Zhenhua, China's top environment official, said a target could be announced soon.
http://www.ft.com/cms/s/0/1079b734-a785-11de-b0ee-00144feabdc0.html; http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58M08Z20090923?pageNumber=2&virtualBrandChannel=0&sp=true ; http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58L2QP20090922
US-EU rift clouds climate summit (Financial Times, 21 September 2009)
EU officials say climate change talks are “not going well”, and are now seeing the US as a major stumbling block in the negotiations, frustrated at the country’s lack of putting forward ambitious targets and financing for developing countries. US officials counter that their announced target is equivalent to that of the EU and legislation is currently being debated that would provide comparable levels of financing. US chief negotiator Todd Stern said the administration had to wait for a clear signal from Congress before forging any international agreement, and that simply had to be accepted. The EU Ambassador to the US, John Bruton, blamed the Senate, saying it acted “as though it is the only deliberative body in the world and that we should all wait until it gets healthcare passed…The world cannot wait on the Senate’s timetable”.
http://www.ft.com/cms/s/0/e4328854-a6da-11de-bd14-00144feabdc0.html?nclick_check=1
Climate deal in peril, says Brown (BBC, 21 September 2009)
UK Prime Minister Gordon Brown is the first head of state so far to say he will go to global climate change negotiations in Copenhagen himself if necessary, and urge other world leaders to do the same, to ensure an agreement is reached. He said a deal is essential not only to avoid catastrophic climate change, but to kick-start the transition to a low-carbon economy.
http://news.bbc.co.uk/2/hi/uk_news/8265974.stm
Canada envoy sees draft climate treaty achievable (Reuters, 22 September 2009)
Canada’s chief negotiator and ambassador for climate change Michael Martin said he believe countries will be able to whittle down the current 199-page negotiating text into something resembling an agreement in Copenhagen. He said a lot of ministerial engagement will be required for this to occur, and that agreement boiled down to getting a few key governments on the same page: "If you got a half a dozen key governments -- China, Brazil and South Africa, along with the U.S., Japan and the European Union, you could get an agreement. Everybody else might not like it, but they wouldn't kick and scream and yell."
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58L5R120090922
China expected to unveil carbon trading plan (BusinessGreen, 21 September 2009)
According to some media reports, Chinese official will unveil proposals for the establishment of a national cap-and-trade scheme at a UN climate change summit in New York.
http://www.businessgreen.com/business-green/news/2249805/china-unveil-carbon-trading
Global businesses demand ambitious new climate deal (Reuters, 21 September 2009)
An international coalition of over 500 companies, including some of the world’s biggest energy companies, retailers and manufacturers, issued a statement calling for a strong new agreement to come out of climate talks in Copenhagen. This is needed, they say, to deliver the economic signals needed for investment low-carbon products, services, technologies and infrastructure.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58K5GR20090921
Copenhagen begins in Beijing. The world waits (The Guardian, 16 September 2009)
The Guardian’s Ian Katz reports on China’s central role in the current climate change negotiations, with some speaking of a hardening position – only a 40% reduction in developed country emissions by 2020 is mentioned, a stronger push for financing and technology transfer, and an emphasis on how differentiated our common responsibilities are: "The developed countries have the money, they have the technology and they think it's an important issue," says a Chinese official. "So why don't they do something about it?" At the same time, the country will announce a series of climate policies later this month and has already set efficiency targets and is investing massively in renewable energy. These two messages are not contradictory, while very serious about de-carbonising their economy, China is also determined to push developed countries to make deeper cuts and provide greater financing and technology transfer.
http://www.guardian.co.uk/commentisfree/cif-green/2009/sep/16/china-carbon-cuts-copenhagen-conference?commentpage=1
India challenges US by agreeing to impose limits on carbon emissions (Times, 18 September 2009)
Countering accusations that India is intransigent on climate change mitigation as “crap”, Indian Environment Minister Jairam Ramesh said that the Indian government is currently drafting legislation that would set various targets aimed at climate change mitigation through various actions, such as a large-scale plan to deploy solar energy. Ambitious action from India places increased pressure on developed countries, particularly the United States, to also undertake domestic measures. A group of Indian experts has recommended that the government seek to reduce projected emissions 25% by 2030, and the Delhi Science Forum recommends that commitment be conditional on developed countries adopting ambitious mitigation targets.
http://www.timesonline.co.uk/tol/news/environment/article6839231.ece
Japan to propose green technology, funding: minister (Reuters, 20 September 2009)
Japan’s environment minister has said that newly-elected Prime Minister Yukio Hatoyama will announce his “Hatoyama Initiative” at a UN climate change summit, which is a plan to provide developing countries with funding and technology support for climate change mitigation.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58J07D20090920?pageNumber=2&virtualBrandChannel=10522&sp=true
Australia plans Copenhagen climate pact compromise (Reuters, 20 September 2009)
Australia outlined its proposal that countries submit “national schedules” under a future climate change agreement, in which they would register their plan for lowering emissions. Commitments will thus be differentiated and reflect national circumstances, said climate change minister Penny Wong, and thus reach an agreement that is “less intimidating for new players”.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58J07D20090920?pageNumber=2&virtualBrandChannel=10522&sp=true
Carbon intensity in focus as China's Hu heads to U.N. (Reuters, 21 September 2009)
Despite no detail released on the substance of Chinese Premier Hu Jintao’s “important” speech at the UN climate change summit outlining China’s climate change policies, measures and actions, analysts are say this is likely to be a carbon intensity goal. This would allow China to continue growth while demonstrating its commitment to mitigation; according to a source the National Statistics Bureau is working on calculating emissions as part of a carbon target to be included in China’s next five-year plan.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE58K2GC20090921?sp=true
Global Insight: No melting of climate doubts (Financial Times, 21 September 2009)
Polls show that the UK is one of the most sceptical countries in Europe when it comes to anthropogenic climate change, with a steady 20% of those surveyed “hardened sceptics”, and 29% believing that claims that human activities change the climate are exaggerated. Public opinion in the US “tends to be more sceptical still”, according to environmental psychologist Adam Corner. The issue is also polarising and splits along the left-right political divide, with climate scientists unsure of what more they can do to convince people of the issue’s urgency: “It should be about the evidence but it’s actually about beliefs”, the UK Met Office’s head of climate change Vicky Pope says.
http://www.ft.com/cms/s/0/7916efdc-a6c2-11de-bd14-00144feabdc0.html; Scientific consensus over dire consequences http://www.ft.com/cms/s/0/c8f22c82-a6d7-11de-bd14-00144feabdc0.html
The UNFCCC Secretariat has released a reordered negotiation text: Reordering and consolidation of text in the revised negotiating text, FCCC/AWGLCA/2009/INF.2 http://unfccc.int/resource/docs/2009/awglca7/eng/inf02.pdf
Climate Change Summit Background Paper Released (Climate L, 17 September 2009)
The UN Secretary-General has released a background paper to guide roundtable discussions at the upcoming Climate Change Summit on 22 September. The questions raise cover adaptation, mitigation commitments and actions, finance and technology transfer, as well as governance structures and institutions.
The background paper http://www.un.org/wcm/webdav/site/climatechange/shared/Documents/Background_Paper.pdf