Energy Efficiency and Climate Change News: 6 - 12 August 2009

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General Policy

North America nations to cooperate on emissions trade, efficiency standards (Reuters, Canoe, 10 August 2009)
At a meeting of North American leaders, dubbed “the three amigos”, US President Barack Obama, Mexican President Felipe Calderon and Canadian Prime Minister Stephen Harper signed the North American Leaders’ Declaration on Climate Change and Clean Energy. The Declaration recognised that global temperature should not exceed 2 degrees C, and that developed countries should reduce emissions 80% by 2050, and global emissions reducing 50% by 2050, compared to 1990 levels. Actions outlined in the Declaration include cooperating in greenhouse gas reporting, building infrastructure to facilitate future cooperation in emissions trading systems. The countries also agreed to pursue the alignment of energy efficiency standards in the region.
http://cnews.canoe.ca/CNEWS/Politics/2009/08/10/10415946-sun.html;
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5793PU20090810

New Zealand aims to cut CO2 by 10-20 percent by 2020 (Reuters, 10 August 2009)
New Zealand announced it would commit to reducing GHG emissions between 10 and 20% by 2020 from 1990 levels; whether the figure will be closer to 10 or 20 will depend on other countries’ commitments as part of an agreement in Copenhagen in December. New Zealand is currently much above its Kyoto Protocol target of keeping emissions at 1990 levels in the 2008-12 commitment period, rendering a bolder target difficult; emissions have increased 24% from 1990 to 2008. New Zealand plans to meet much of its commitment using a domestic cap and trade scheme, which it hopes to finalise by the end of the year.
http://www.reuters.com/article/environmentNews/idUSTRE5790LV20090810?sp=true

Senate Democrats Want Climate Bill to Protect Manufacturing (Wall Street Journal, 6 August 2009)
A group of ten Democratic Senators have written a letter to President Obama urging that any future climate change legislation include measures to protect the US manufacturing industry, notably a border tariff mechanism applied to goods from countries that don’t limit their GHG emissions that would be “trade neutral and environmentally effective”. President Obama had previously expressed discomfort with the idea of border tariffs, as have various other US businesses, concerned such measures could spark a trade war.
http://online.wsj.com/article/SB124959044772212205.html

Climate Legislation: Catalyst for Energy Efficiency (Reuters, 4 August 2009)
In an op-ed piece, Lauralee Martin of Jones Lang LaSalle and Mindy Lubber of Ceres argue that the ACES bill currently before senate will save businesses more than a cap-and-trade scheme will cost them – through improved energy efficiency. They point to the bill’s provision for a Retrofit for Energy and Environmental Performance (REEP) programme, which would mandate energy improvements through a national building code, and create mechanisms to help finance such improvements.
http://www.reuters.com/article/gwmCarbonEmissions/idUS55177364320090804?sp=true

Study calls for cheaper options to cut emissions (Financial Times, 7 August 2009)
A controversial new paper argues that the cost of reducing global temperature can be much lower by using geo-engineering techniques rather than reducing emissions. The paper says lowest cost technologies, such as making clouds whiter to reflect sunlight by spraying sea water into the air, could each the same cooling effect as emissions reductions for approximately USD 9 billion. Other scientists however caution that geo-engineering techniques are completely untested, and that interventions such as making clouds whiter could have unpredictable and potentially counter-productive consequences on rainfall patterns.
http://www.ft.com/cms/s/0/6df65ca0-82eb-11de-ab4a-00144feabdc0.html

Sceptic switches tack and urges more effective solutions (Financial Times, 7 August 2009)
Previously an influential figure among climate change sceptics, Bjorn Lomberg now says "the basic scientific questions [on climate change] have been answered pretty unequivocally". He says a global deal in Copenhagen is essential, but argues that there are cheaper ways of reducing emissions than imposing stringent reduction targets on rich countries. These include reducing emissions of other GHGs, such as methane and soot, investing in new technologies, deciding whether it is cheaper to make cuts now or later, planting more forests, and adapting to climate change. Mr. Lomberg has brought together a group of climate change economists to come up with such alternative options.
http://www.ft.com/cms/s/0/e2ff978c-82eb-11de-ab4a-00144feabdc0.html

Japan 2020 Climate Target Could Hurt Growth – Report (Reuters, 6 August 2009)
The economic burden of competing emissions reduction targets, proposed by the ruling LDP and opposition Democratic Party, is being debated in Japan. A government report on the costs of the current target to reduce emissions 8% below 1990 levels by 2020 said it would cost JPY 49 trillion over the next decade, reduce economic growth 0.6% and raise unemployment 0.2% by 2020. It said targets proposed by the Democratic Party (a 25% reduction from 19990 levels) would reduce GDP growth 3.2% and raise unemployment 1.3%.
http://planetark.org/wen/54104

Forgery scandal throws spotlight on anti-climate bill lobbying tactics (BusinessGreen, 5 August 2009)
Washington-based lobbying firm Bonner & Associates is facing Congressional investigation following the firm’s admission that it sent 12 forged letters to House Representatives, pretending to be from minority groups that opposed proposed climate change legislation. Representative Tom Perriello’s office detected the forgeries when the noticed the six letters they’d received used nearly identical language. The two groups supposedly represented by the letters, the NAACP and a Latino advocacy group, have reacted angrily, with the NAACP saying the letters are contrary to their stance of supporting the legislation. The firm’s president said the letters were the work of a rogue employee who has since been caught and removed. The firm was hired by another advocacy firm, the Hawthorn Group, which in turn was hired by the American Coalition for Clean Coal Electricity.
http://www.businessgreen.com/business-green/news/2247316/forged-letters-opposing-climate

India sets out ambitious solar power plan to be paid for by rich nations (The Guardian, 4 August 2009)
The Indian government’s previously announced plan to generate 20GW of solar power by 2020 was discussed at length at a meeting of the national climate change council, resulting in significant changes from earlier drafts. Solar thermal power will be given as much importance as solar photovoltaic power, and initial optimistic cost projections were debunked, leaving no clear indication of how much it will cost. Most significantly, the council found that initial plans to subsidise costs (with USD 20 billion and aim for decreasing production costs) was in contradiction with its stance at international UNFCCC negotiations, where India insists developed countries must pay for the development of clean energy in developing countries. India could use its solar plan as a bargaining chip in negotiations, and will seek to implement the plan with external technological and financial support.
http://www.guardian.co.uk/environment/2009/aug/04/india-solar-power

Bangladesh launches $29 million fund for green energy (Reuters, 5 August 2009)
Bangladesh’s central bank has launched a USD 29 million fund to provide 5% interest-rate loans to commercial banks lending for solar projects, bio-gas plants in rural and urban areas and effluent treatment plants for industries.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5742V220090805

Decision on pipeline threatens to soil Obama's green image (Financial Times, 11 August 2009)
The Obama administration is facing a conundrum regarding approval of a pipeline project that would carry 800,000 barrels of fuel a day from Canada’s oil sands into the US. While it would improve the US’s energy security, extraction of one barrel of crude from oil sands is estimated to emit up to five times more GHG emissions than for conventional crude. Environmentalists are urging the administration to delay the decision, while Enbridge Energy, the pipeline builder, is confident the permit will be received by the end of the month.
http://www.ft.com/cms/s/0/e58a9530-860e-11de-98de-00144feabdc0.html

Industry, business and utilities

Technology Smorgasbord Needed to Meet Climate Goals – EPRI (NY Times, 4 August 2009)
The Electric Power Research Institute (EPRI) published a study indicating that CO2 emissions from electricity generation in the US could go down 41% by 2030, but would require a “full” portfolio of technology options. These include new nuclear, expanded wind, as well as CCS, and would raise electricity costs 80% by 2050. EPRI’s assumptions regarding future energy conservation and renewable power generation are conservative, basing these on politically acceptable rather than technically feasible targets. While emissions reduction targets of 80% by 2050 can be met in EPRI’s model, these come at high costs; high energy costs will also be required to drive demand reduction.
http://www.nytimes.com/gwire/2009/08/04/04greenwire-technology-smorgasbord-needed-to-meet-climate-35698.html ;
http://my.epri.com/portal/server.pt

Smart Grid Requires New Profit Motives (Reuters, 11 August 2009)
Portland Energy Conservation Inc. has released a report outlining some of the challenges implementing a smart grid in the US faces. The report focuses on building integration, arguing that currently buildings are not equipped to participate in demand-response systems, and that there is no interoperability between grid equipment and building energy management tools. In addition, there is currently a lack of HVAC engineers with the skills to maximise energy efficiency. In addition, the report recommends that smart grid policy and associated energy reductions need to be in synch with GHG emission reduction goals. It also recommends that some form of utility decoupling and other incentives be linked to federal assistance for smart grid implementation. The report argues that while decoupling can allow a utility not to lose money from energy efficiency programmes, the aim should be to have the utility profit from these programmes.
http://www.reuters.com/article/mnEnergy/idUS115493389720090811?sp=true; Report, Wiring the smart grid for energy savings http://www.peci.org/About/smartgrid_whitepaper_final_071709.pdf

Japanese Utilities to Test 'Low Emissions' Coal Plant (Reuters, 10 August 2009)
Encouraging results from research into multi-purpose coal gas manufacturing technology by Japan’s Electric Power Development Co. and Chugoku Electric Power Co. since 2006 have led to the two companies joining forces in a new company to construct a large-scale demonstration plant. The new company, Osaki CoolGen Corporation, plan to begin construction in March 2013 of a large-scale demonstration test of oxygen-blown coal gasification combined cycle technology and CO2 separation and recovery technology.
http://www.reuters.com/article/gwmEnergy/idUS273993391020090810?sp=true

China to unveil plan for 'new energy' by year-end (Reuters, 9 August 2009)
Sun Qin, vice head of the National Energy Administration (NEA), announced the government would release a plan for the development of new energy sources by the end of the year. These include solar, wind, nuclear and clean coal technologies. A guide for developing new energy technologies would also be released, said Qin.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5790DU20090810?sp=true

Ofgem pledges to power up "smart cities" (BusinessGreen, 5 August 2009)
Ofgem is proposing a GBP 6.5 billion plan to invest in electricity networks, upgrading infrastructure which is both ageing and unable to meet future demands such as decentralised generation, microgeneration technologies, and supplying of power for electric vehicles. Ofgem says that while operators have cut their operating costs 10% original forecasts, the plan will add approximately GBP 20 to the average electricity bill between now and 2015, though better and more reliable service would be provided. The plan includes a GBP 500 million fund to launch pilot “smart grid city” schemes, installing smart meters and other technologies in selected cities and towns. Operators point out that two key issues have not yet been addressed by the regulator: The cost of borrowing, and whether the cost of deficits on their pensions plans could be passed on to consumers.
http://www.businessgreen.com/business-green/news/2247214/britain-grid-set-extra

Nuclear key to SA’s future (ESI Africa, 31 July, 21 July 2009)
South Africa says nuclear energy will play a key part of its energy mix; Eskom, the Industrial Development Corporation and Westinghouse Electric have spent more than USD 1 billion testing and developing pebble-fuel nuclear power since 1999. Jaco Kriek, CE of the Pebble Bed Modular Reactor Company, says the first pilot plant could come online by 2018 at an estimated cost of USD 3.45 billion, provided by a consortium of public and private investors. In addition, Eskom announced a third nuclear power station might be added to its development plans, on top of the two currently being built (Kusile and Medupi); the third plant could be commissioned as early as 2016.
http://www.esi-africa.com/node/10557; http://www.esi-africa.com/node/10541;

Carbon-eating "green" cement wins funds for UK firm (Reuters, 6 August 2009)
Companies are tapping into the emerging market of producing low- or zero-carbon cement, for example a start-up called Novacem that uses magnesium silicate to produce cement rather than calcium carbonate. The material doesn’t emit CO2 during manufacture, and absorbs the gas as it ages. The company just received GBP 1 million in investments. Other companies are working with various new materials and recycled industrial by-products. Novacem says that each ton of Portland cement replaced with theirs, ¾ of a ton of CO2 is saved – such materials are of interest both to the cement industry seeking to reduce emissions, as well as the building sector.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57549K20090806?sp=true

Crisis and climate force supply chain shift (Financial Times, 9 August 2009)
Concerns regarding potential regulatory changes, high future energy prices, and the need to switch to more sustainable business models, are factors leading to increased transformation of global supply chains into more regional ones. The current financial and economic crisis has triggered companies to look at making such changes in their supply chains, with European and North American companies increasing using Mexico and Eastern Europe for sourcing components rather than Asia.
http://www.ft.com/cms/s/0/65a709ec-850b-11de-9a64-00144feabdc0.html

Buildings

Transport

How 'Cash for Clunkers' is Adding Carbon (Reuters, 11 August 2009)
The US “cash for clunkers” programme has been criticised from an environmental point of view since it began. First because the fuel efficiency standards required have not been deemed high enough, and also because there is concern the new vehicles purchased will lead to them being driven more often and longer. In addition, some have pointed out the scheme did nothing for poorer consumers who are likely driving the least fuel efficient cars, and still cannot afford to replace them even with the scheme; several of the cars traded in are likely more efficient than theirs.
http://www.reuters.com/article/mnGreenAutos/idUS110917082820090811?sp=true

Cash for Clunkers Gets a $2 Billion Fill Up (ENS, 7 August 2009)
The US Consumer Assistance to Recycle and Save Program (CARS), more commonly know as “cash for clunkers”, was provided USD 2 billion in additional funding by the Senate. The programme had been set to run until 1 November or until funds ran out, but was swamped within five days of launching. The US National Highway Traffic Safety Administration said on average the fuel improvement of a vehicle under a CARS transaction is 9.6 miles per gallon. This translates to annual fuel savings USD 580 and 58 million gallons for each new vehicle owner.
www.ens-newswire.com/ens/aug2009/2009-08-07-091.asp?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=556211&utm_campaign=Nightly_%272009-08-08+01%3a15%3a00%27

Hybrid Vehicles Failing to Produce Environmental Benefits (Reuters, 10 August 2009)
A study of hybrid vehicle rebate programmes in the US and Canada by researchers at the University of British Columbia (UBC) indicates the programmes are not having the environmental benefits expected. According to findings, those purchasing hybrid vehicles were not motivated by the rebates, and these tend to replace small- and medium-sized relatively fuel-efficient cars rather than SUVs, trucks or vans. The report finds that these rebate programmes are highly cost inefficient when it comes to reducing GHG emissions, with the inefficiency of these programmes rising disproportionately when rebate amounts are increased.
http://www.reuters.com/article/mnGreenAutos/idUS166013414620090810; Paper available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1348808

GM's plug-in hybrid Volt to boast 230mpg (Financial Times, 12 August 2009)
General Motors announced that its Chevrolet Volt hybrid car, set to go into production late next year, will have a record-breaking fuel consumption of 230 miles per gallon (mpg) in city driving. In combined city and highway driving, consumption is still set to exceed 100mpg. The Volt will be powered by a battery pack with a 40-mile range and a small internal combustion engine that will recharge the battery while the car is in motion. The first generation of Volt is expected to be costly, and challenge to recharge for owners that cannot easily access an outlet, such as those without home garages. Like other auto makers, GM is in discussion with utilities, municipalities and car-park operators to develop easily accessible and reliable car-charging facilities.
http://www.ft.com/cms/s/0/921eda40-86d7-11de-9e8e-00144feabdc0.html

Battery maker Electrovaya rises on Ontario backing (Reuters, 5 August 2009)
The government of Ontario has invested in battery company Electrovaya, to support research and pre-commercialisation of its lithium ion battery technology. The Ontario government also announced last month it would offer rebates of up to CAD 10,000 to buyers of plug-in hybrid and electric vehicles.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5743N820090805

LG U.S. plant to support 250,000 electric cars (Reuters, 6 August 2009)
Supported by USD 151 million in grants awarded by the US administration, the Michigan-based unit of South Korea’s LG is investing USD 300-400 million in a new battery cell manufacturing facility that could produce up to 250,000 battery packs for electric vehicles when the plant becomes operational in 2013.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57562L20090806?sp=true

Portland Lands Major Upgrade to Electric Vehicle Infrastructure (Reuters, 6 August 2009)
Portland, Oregon, has been selected as a test site for the deployment of electric vehicles and the development of an electric charging station network. The deployment will involve the Electric Transportation Engineering Corporation (eTec), a company that has received federal funding to study electric vehicle usage, as well as an agreement between the State, Nissan North America and Portland General Electric. The programme will seek to deploy 5000 vehicles and 12,750 charging stations.
http://www.reuters.com/article/mnGreenAutos/idUS268106043420090806?sp=true

Electric car future may power a charging industry (Reuters, 9 August 2009)
The electric car charging industry that could grow around commitments to deploy electric vehicles could take on a variety of forms, with different kinds of companies potentially involved in deployment and partnerships. Utilities would of course provide power, but stations are most likely to be deployed by private companies, possibly partnering with information system companies. These could be deployed by the station producers themselves, purchased by companies, or operated in networks by companies offering a range of services to customers, such as battery leasing.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57823020090809?sp=true

Emissions trading/Carbon market

U.S. biofuel makers want CO2 credits in climate bill (Reuters, 10 August 2009)
Companies in the biofuels industry, including those producing plastics and chemicals, are lobbying US Senate offices for the industry to be awarded free GHG emissions permits under future climate change legislation. While the oil refinery in the bill’s current form receives 2% of freely allocated permits, no provision is made for the biofuels industry. Such incentives could benefit companies such as Archer Daniels Midland, DuPont, Dow Chemical and Metabolix.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5795CL20090810?sp=true

Australia opposition proposes rival carbon scheme (Reuters, 10 August 2009)
Australian opposition leader Malcolm Turnbull announced a rival carbon trading scheme, days ahead of a scheduled vote in the Senate where the opposition and Greens are expected to vote down the government’s current proposal for an emissions trading scheme. Under the plan, coal and other major export industries would receive full protection from the cost of purchasing permits, and only 30% of permits would be auctioned as opposed to 70% under the current plan. The opposition and Green parties are also determined to separate legislation for a national renewable energy target and the emissions trading scheme, currently linked, while the government says it wants to keep the schemes linked.
http://www.reuters.com/article/environmentNews/idUSTRE5790QQ20090810?sp=true

U.S. carbon market: many projects, many clouds (Reuters, 6 August 2009)
In anticipation of climate legislation currently favourable to offset projects that create carbon sinks, many owners of cultivated fields and forests are planning ways to benefit from a future market. Small forest owners are banding together into portfolios to reduce costs of having emissions measured and certified. The need for verifiers and certifiers has spawned a new professional industry, which could contribute towards the “green jobs” the US administration says the bill would create. However, many remain uncertain the bill will pass in its current form, and some say greater clarity would push investments.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5756WI20090806?sp=true

Climate change negotiations

Rich nations offer 15-21 percent CO2 cuts by 2020: U.N. (Reuters, 11 August 2009)
Industrialised countries, excluding the US, are all together planning to cut emissions 15-21% below 1990 levels by 2020, according to figures compiled by the UNFCCC Secretariat. The deepest cuts, dependent on certain conditions, are being proposed by the EU, Switzerland, Norway and Liechtenstein, while Canada, Japan, Belarus and Russia have proposed smaller reductions. Including the US would reduce the overall ambition level, since announced cuts would return emissions to 1990 levels by 2020.
http://www.reuters.com/article/environmentNews/idUSTRE57926O20090811?sp=true

India says developing world not split in climate talks (Reuters, 11 August 2009)
India denied that developing countries were split in their negotiating positions at UNFCCC climate change talks, reacting to observers seeing the US’s efforts at bilateral agreements with China, India and most recently Brazil as an attempt to drive a wedge between positions of developing countries. Special envoy Shyam Saran emphasised that bilateral agreements were insufficient to tackle climate change, and that a global agreement was needed “based on a spirit of collaboration and not on a false sense of competitive compulsion”. He also said India was prepared to undertake further mitigation actions, over and above measures taken domestically, “if an equitable and supportive global climate regime is put in place at Copenhagen".
http://www.reuters.com/article/environmentNews/idUSTRE57A2ND20090811?sp=true

New figures show India's emissions a fourth of China's (Reuters, 11 August 2009)
A government report says that while India contributes approximately 5% of global CO2 emissions, these are still only about a quarter of those released by the US or China. On a per capita basis, India’s emissions are a fraction of those in the US, Western Europe and Japan. In addition, another report indicated that India’s forests absorb about 24 billion tons of CO2 emissions a year, for which they could both request funds and use for trading, under a potential REDD scheme offering credits for forest preservation and rehabilitation.
http://www.reuters.com/article/environmentNews/idUSTRE57A30I20090811?sp=true

Sacrifice your luxuries, India tells West (The Age, 7 August 2009)
India’s climate change envoy Shyam Saran has reiterated that India will not take any climate change mitigation measures that restrict it growth, citing hypocrisy on the part of industrialised countries: "No one is prepared to touch their living standards," he said. "If you say, ‘You're producing Tata Nanos, what will that do to the world?', but not talk about your two or three cars per family, it's hypocritical…We can't be ambitious if we all protect our turf. We need a collaborative response." Mr. Saran said he was pessimistic regarding prospects of reaching an agreement in Copenhagen.
http://www.theage.com.au/world/sacrifice-your-luxuries-india-tells-west-20090806-ebgp.html

China keen to see CO2 emissions peak: diplomat (Reuters, 5 August 2009)
China’s climate change ambassador Yu Qingtai said “no one in the world” was keener than China to see the country reach its emissions peak as soon as possible, adding that the government was aware “addressing climate change is in the fundamental interests of our country." He reiterated that developed countries cannot dodge undertaking significant cuts beyond 2012, not only due to greater responsibility, but also because China’s priority still had to be raising millions of people out of poverty. He called China’s proposal that developed countries reduce emissions by 40% by 2020 “fair”, though said the figure would be decided through negotiation. As for prospects of agreement in Copenhagen, Yu said "I try to remain an optimist because the nature of the problem is such that we cannot afford a failure."
http://www.reuters.com/article/environmentNews/idUSTRE5742CZ20090805?sp=true

U.S. sees progress with Brazil on climate talks (Reuters, 6 August 2009)
US climate change envoy Todd Stern has returned from a three-day visit to Brazil, saying that Brazil was ready to show leadership in global climate change talks, with avoided emissions from deforestation of the Amazon potentially counting as emissions reductions.
http://www.reuters.com/article/environmentNews/idUSTRE57609020090807?sp=true

Climate change fight seen costing $300 billion a year (Reuters, 11 August 2009)
On the sidelines of climate change negotiations in Bonn, Yvo de Boer told Reuters that from 2020 onwards USD 300 billion a year will be needed for climate change mitigation (USD 200) and adaptation (USD 100). He also said current emissions reduction targets put on the table by rich nations by 2020 are “miles away” from the long-term goals set at the G8 summit last month. The negotiations should focus on establishing a fair mechanism to raise funds long-term, rather than on overall numbers, according to de Boer.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE57A3NO20090811?sp=true

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Energy Efficiency and Climate Change News: 6 - 12 August 2009

General Policy

Industry, business and utilities

Buildings

Transport

Emissions trading/Carbon market

Climate change negotiations