Energy Efficiency and Climate Change News: 23 – 29 July 2009
Industry, business and utilities
Emissions trading/Carbon market
General Policy
France Faces Internal Fight over Carbon Tax (Reuters, 28 July 2009)
The French parliament may be thrashing out details of a proposed carbon tax after the summer break, with compensation for poorer households, workers in certain sectors, and those living in rural areas or needing to drive for work purposes. Due to the complexity of implementing a tax, the chairman of the expert panel which produced the report expected to be the basis for legislation has expressed doubt over whether a tax could be ready for 2010.
http://planetark.org/wen/53972
India to Unveil 20GW Solar Target under Climate Plan (Reuters, 28 July 2009)
As part of its climate change action plan, India is considering a target of generating 20 GW of solar power by 2020. In a draft policy document the government says this would “cut” approximately 42 million tons on CO2 emissions, and would make the use of solar-powered equipment mandatory for hospitals, hotels and government buildings, while encouraging their use in villages and small towns through micro-financing. A scheme to pay households to feed surplus solar power back into the electricity grid is also outlined in the plan.
http://planetark.org/wen/53974
United States and China to Cooperate on Climate Change and Energy (EERE News, 29 July 2009)
At the close of the US-China Strategic and Economic Dialogue on Tuesday, a Memorandum of Understanding (MOU) has been signed between the two countries on climate change, energy, and the environment. The MOU establishes a mechanism for climate change policy dialogue and cooperation to promote a discussion and exchange of views on domestic strategies and policies for addressing climate change; practical solutions for promoting the transition to low-carbon economies; successful international negotiations on climate change; joint research, development, deployment, and transfer, as mutually agreed, of climate-friendly technologies. These can include energy conservation and efficiency, renewable energy, cleaner uses of coal and CCS, sustainable transport including electric vehicles, and modernisation of the electric grid.
http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=12680; see MOU http://www.state.gov/r/pa/prs/ps/2009/july/126592.htm and joint press release http://www.treas.gov/press/releases/tg242.htm
Indonesian official eyes fuel subsidy cuts (Reuters, 27 July 2009)
The head of Indonesia's National Council on Climate Change, Agus Purnomo, has said the Indonesian government may consider cutting fossil fuel subsidies. In addition to making alternative energy sources more competitive, Purnomo is pushing for the government to also introduce a feed-in tariff for renewable sources of energy and oblige the national electricity supplier PLN to purchase power from renewable sources.
http://planetark.org/wen/53950
Climate change: Govt in a bind on definition of `business-as-usual' (Times of India, 24 July 2009)
The Indian government is struggling to define “business-as-usual” following agreeing to a political commitment to reduce GHG emissions below business-as-usual levels. Gathering experts, organisations and companies that have undertaken economic modelling to determine India’s business-as-usual, substantial differences in assumptions across models were seen to generate different results. Those gathered “accepted that it was extremely difficult to understand how changes in quantum and direction of investments and technological inputs in a developing economy could alter the scenarios.” Some argue that given such difficulties India should instead take on alternative targets, such as energy intensity improvements.
http://timesofindia.indiatimes.com/articleshow/4812761.cms
UK "Carbon Budgets" Seen as Model for Others (Reuters, 24 July 2009)
Stepping down as Chairman of the UK’s Sustainable Development Commission, Jonathan Porritt gives a mixed report of the UK’s achievements. Regarding the UK’s 21% reduction in GHG emissions since 1990, Porritt says that over 70% of the cut is likely due to a shift from using coal to North Sea gas. The UK government’s greatest achievement, according to Porritt, is the implementation of legally binding “carbon budgets” that mobilise every government ministry to make emissions reductions in all areas under its responsibility.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE56N6EY20090724
Germany calls carbon tariffs "eco-imperialism" (Reuters, 24 July 2009)
Germany's State Secretary for the Environment Matthias Machnig and Swedish Environment Minister Andreas Carlgren have spoken out against the idea of imposing carbon tariffs against imports from countries that are not undertaking efforts to reduce GHG emissions. Recent proposals following discussion of the idea in France were rejected, with Mr. Machnig saying these would not only be in violation of WTO laws but “a new form of eco-imperialism”.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE56N1RJ20090724?sp=true
French tax on CO2 moving closer (Cop15, 23 July 2009)
A French government-nominated expert panel, submitting conclusions and recommendations on the implementation of a carbon tax, has suggested instating a tax of EUR 32 on every tonne of CO2 emitted in 2010, rising to EUR 100 per tonne in 2030. This would add EUR .077 to the cost of one litre of unleaded fuel and EUR 0.085 to a litre of diesel. According to the French energy agency ADEME, average household gas and fuel heating costs would rise by between EUR 60 and 170 per year.
http://en.cop15.dk/news/view+news?newsid=1756
U.S. top greenhouse gas emitter, counting imports (Reuters, 22 July 2009)
Research from the Center for International Climate and Environment Research in Oslo (CICERO) says that rankings of top emitter countries change considerably when responsibility for emissions is shifted to consumption of goods rather than their production. The study also finds that individual carbon footprints increased as income increased, posing a challenge for governments trying to both increase wealth and control emissions.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE56L4F720090722
EU Probes Austria's Green Electricity Act (Reuters, 22 July 2009)
While authorising Austrian plans to subsidise green electricity producers through feed-in tariffs, the European Commission has launched an investigation into other provisions of Austria’s Green Electricity Act. The provisions under examination would exempt certain energy intensive industries from green electricity purchase obligations, and thus from contributing to fund green electricity development. This may place an unfair burden on entities with purchase obligations, and the Commission has expressed doubts that the proposed exemptions are compatible with EU state aid rules.
http://planetark.org/wen/53895; http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1177&format=HTML&aged=0&language=EN&guiLanguage=en
U.S. Business Warns Congress of "Green Trade War" (Reuters, 22 July 2009)
In a letter to the US Senate, key business groups (including the US Chamber of Commerce and the National Foreign Trade Council) warn that border adjustment provisions allowing for tariffs on carbon-intensive goods from countries without climate change legislation could “negatively impact U.S. relations with key trading partners and disrupt the global trading systems". The groups urge the Senate to refrain from including such provisions, saying these are already “stirring consternation” among key trading partners and could lead to a “green trade war”.
http://planetark.org/wen/53887
Industry, business and utilities
British Gas flicks switch for online energy management trial (BusinessGreen, 21 July 2009)
British Gas has teamed up with smart meter specialist AlertMe to launch a trial among customers, allowing them to use AlterMe’s automated heating control system, which allows for changes in heat settings to be made by internet or mobile phone. British Gas will also trial some other AlterMe technologies, such as smart plugs and smart lamps.
http://www.businessgreen.com/business-green/news/2246423/british-gas-flicks-switch
EPA publishes proposed rule for recoverable waste energy registry (Van Ness Feldman, 27 July 2009)
As required under the Energy Independence and Security Act of 2007, the US EPA is establishing a Registry of Recoverable Waste Energy Sources. The Registry would contain information on major industrial and large commercial sites with potential for recovery of wasted energy from exhaust, steam, and other sources. The proposed rule for establishing the registry was published on 23 July and is open to comment until 21 September. The rule defines the sites that would be included in the Registry, and proposes the EPA collect data for the Registry using a software tool to calculate the quantity and quality of potentially recoverable waste energy.
http://www.vnf.com/news-policyupdates-379.html: http://www.epa.gov/cleanenergy/registry/index.html
Appliances and equipment
Commission adopts four ecodesign regulations (EC Press Release, 22 July 2009)
The European Commission adopted four new eco-design regulations for industrial motors, circulators, televisions, refrigerators and freezers. For motors, the regulation is based on the Energy Efficiency Level (IE1 to IE3), and low-efficiency motors (IE1 and below) will be phased out of the market as of June 2011, while IE2 motors will require variable speed drive to be on the market as of January 2015. For TVs, requirements will apply as of August 2010, and by April 2012 only TVs 20% more efficient than the current average (“C” class) will be placed on the market.
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1179&format=HTML&aged=0&language=EN&guiLanguage=en; http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/349&format=HTML&aged=0&language=EN&guiLanguage=en
Hyundai to Invest USD 3 Billion in Green Projects By 2013 (Reuters, 22 July 2009)
South Korean auto maker group Hyundai announced it would invest KRW 2.2 trillion into developing hybrid cars, KRW 1.4 trillion to improving engine efficiency, while also investing to reduce emissions from facilities. The company is aiming to develop environmentally friendly cars and reduce CO2 emissions by 2013.
http://planetark.org/wen/53894
To Green the Data Center, IT Has to Feel Some Pain (Reuters, 28 July 2009)
A survey of more than 1000 senior IT decision makers in companies in North America, Western Europe, the Nordic region, Turkey, and Dubai conducted by Brocade suggests that IT departments need to start paying for the energy they consume if they are to reduce their consumption. The survey found that 51% of IT departments had a system in place for measuring consumption from IT hardware, and only 45% of the IT departments paid for all or part of the electricity bill.
http://planetark.org/wen/53977
Emissions trading/Carbon market
Swiss seek to join EU carbon trading system (Reuters, 24 July 2009)
Moritz Leuenberger, Swiss transport and energy Minister, has said Switzerland will initiate talks with the European Commission on joining the EU Emissions Trading Scheme following international climate change talks in Copenhagen in December.
http://www.reuters.com/article/environmentNews/idUSTRE56N3RB20090724
Australian carbon plan divides opposition parties (Reuters, The Australian, 24 July 2009)
The possibility of a snap election should Australia’s planned emissions trading scheme remain stalled in the Senate has led to fissures among opposition parties, which previously acted as a block to defeat the legislation. Some liberal opposition figures are calling for the bill to be changed, or to be delayed until after global climate change talks, though others staunchly oppose the bill and would rather see it defeated.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE56N14Q20090724?pageNumber=2&virtualBrandChannel=0&sp=true; http://www.theaustralian.news.com.au/story/0%2C25197%2C25826885-601%2C00.html
New report: Tackling Leakage in a World of Unequal Carbon Prices (Climate Strategies, 16 July 2009)
In a new report, Climate Strategies says that dealing with carbon leakage requires finding solutions other than free allocation for at-risk sectors within an emissions trading scheme, given free allocation distorts price signals. The report pays special attention to the adjustment of carbon costs at the border as an alternative, saying ideally this should be done at a multilateral level. The report suggests a sector-based approach to screen for leakage concerns, which would also allow for tools dealing with leakage to be phased-out should international agreements regarding emissions caps on sectors or countries evolve.
http://www.climatestrategies.org/component/reports/category/32/153.html
VCS Eases Rules for Issuing Canada Carbon Credits (Reuters, 23 July 2009)
The Voluntary Carbon Standard Association (VCS), a leading standard setter for voluntary carbon market offsets, said it has relaxed rules for carbon offset projects hosted in Canada. Previously, such projects had to demonstrate they wouldn’t be double-counted under a Kyoto Protocol offset programme. The VCS said it had decided to relax rules because "there is no regulatory framework to implement the Kyoto Protocol (in Canada), none is likely to emerge, and the country is unlikely to achieve its Kyoto Protocol reduction commitment."
http://planetark.org/wen/53915
Oregon Climate Package Omits WCI Enabling Legislation (VanNess Feldman, 27 July 2009)
A package of seven different climate-related bills signed into law by Oregon Governor Ted Kulongoski address a range of issues, including expanded GHG emission reporting requirements, a feed-in tariff for small-scale solar power installations, authorisation for the development of a state low carbon fuel standard, and stringent new GHG emission standards for electricity generation sources. Originally part of the package was a bill enabling the state to implement a cap-and-trade scheme under the Western Climate Initiative, a regional emission trading programme. However, the bill was not voted upon.
http://www.vnf.com/news-policyupdates-379.html
Climate change negotiations
U.N. Seeks $10 Billion Aid as Good Start to Climate Pact (Reuters, 23 July 2009)
In an interview with BBC World Service, UNFCCC Executive Secretary Yve de Boer said that putting funds on the table would be a good start to achieving agreement in Copenhagen. More importantly, he said Copenhagen must “agree an architecture, a burden-sharing formula, that will allow us to share out the costs of climate action among countries as the needs increase over time".
http://planetark.org/wen/53912
India widens rift with west on climate (Financial Times, 24 July 2009)
Views on a future climate change agreement diverged even greater yesterday, when India’s Minister of Environment rejected research warning against the melting of Himalayan glaciers. Meanwhile, Swedish environment minister Andreas Carlgren said that while developed countries must do more to cut emissions, developing countries must do more by formalising plans to cut emissions and being able to demonstrate deviation from business-as-usual.
http://www.ft.com/cms/s/0/7aa73b0a-77eb-11de-9713-00144feabdc0.html
US and China must fight emissions together (Financial Times, 26 July 2009)
John Kerry’s op-ed points to the positive signs of change within both the US and China to lead on climate change, arguing that little is likely to happen without their leadership. While China will eventually need to accept limits on its GHG emissions, Kerry argues this mustn’t block agreement: “… it would be a mistake to focus single-mindedly on what China has said it will not do. Even as we push China to go further, we must deepen our collaboration on what China can and will do now.”
http://www.ft.com/cms/s/0/5d22dc38-7a07-11de-b86f-00144feabdc0.html
Climate activists in denial (Financial Times, 27 July 2009)
Gideon Rachman outlines the political complexities surrounding climate change negotiations in Copenhagen, where all politicians know that “a country that moves unilaterally risks severely damaging its economy, at least in the short-term – without affecting the global problem”, and thus lead many climate change activists to admit in private that any agreement will be feeble and ineffective. However, Rachman warns climate change activists not to become deniers in their own right: “…the climate change lobby is in the grip of its own form of dangerous fantasy. It is in denial not about science – but about international politics.”
http://www.ft.com/cms/s/0/37c9c748-7adf-11de-8c34-00144feabdc0,s01=1.html
Delayed US climate action increases risks: EU (Reuters, 27 July 2009)
In an internal EU Presidency report cited by Reuters, doubt is cast on current US proposals that a 2 degree temperature increase target can be reached with flexibility in emission pathways; the US is moving towards agreeing a moderate 2020 emissions reduction target, but aiming for an ambitious cut by 2020. The EU report says "It is not possible to fully compensate in future decades for higher emissions in the earlier years in a so-called 'delayed action scenario'".
http://planetark.org/wen/53953