Energy Efficiency and Climate Change News: : 8 - 14 October 2009
Industry, business and utilities
Emissions trading/Carbon market
General Policy
Call for aligning climate and air policies (ENDS, 13 October 2009)
A draft discussion paper by the European Federation of Clean Air and Environmental Protection Associations (EFCA), to be presented at an EU Swedish presidency workshop next week, argues that the challenges of air quality and climate change need to be dealt with in a more integrated manner. Some argue such interactions could reduce the cost of improving air quality. A similar message emerged from a Eurelectric conference, where alignment of legislations was needed because short-term air quality requirements could mean dirty power plants remain open longer, justified by investments in end-of –pipe technologies.
EFCA draft discussion paper http://efca.net/uploads/file/Gothenburg%202009%20-%20DISCUSSION%20NOTE%20%28EFCA%20Task%20Force%29.doc and accompanying annex
Obama's climate-change hopes get a boost (Reuters, 12 October 2009)
The chances of passing climate legislation in the US Senate sooner rather than later were boosted after Senator Barbara Boxer said she felt her committee would approve the bill prior to Copenhagen – and perhaps even bring it on the Senate floor by then. In addition Senator Kerry and Republican Senator Lindsey Graham wrote a joint opinion piece in the New York Times outlining a compromise to climate change legislation. Senator Graham is one of the fence-sitters whose votes are needed to get the 60 votes needed for the Kerry-Boxer climate bill proposal to pass. US Energy Secretary Steve Chu also said he was hopeful a bill would be available for the President to sign prior to Copenhagen, saying it was “tight”, but that there was “a good shot.”
http://www.reuters.com/article/GCA-GreenBusiness/idUSN1252318120091012?sp=true ; http://www.reuters.com/article/environmentNews/idUSTRE59B3SW20091012?pageNumber=2&virtualBrandChannel=11604&sp=true ; http://www.reuters.com/article/environmentNews/idUSTRE59B3KT20091012
UK climate body urges "step change" on emissions (Reuters, 12 October 2009)
The UK’s Climate Change Committee says GHG emissions need to be cut six times faster than at present, from the current rate of 0.5% between 2003 and 2007 to 2-3% a year. The power sector will a crucial priority for reducing emissions according to the report, including investments in nuclear, clean coal and wind energy. It suggest the UK can complement the EU ETS carbon price through introducing a tax, loan guarantees for clean energy investments, “whole house” energy audits including installation and financing, and the deployment of electric vehicles.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59B1IQ20091012?sp=true; http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59A26Q20091011?sp=true
Carbon capture coal tech must be ready by 2019: U.S. (Reuters, 12 October 2009)
US Energy Secretary Steve Chu expressed ambitious targets for the deployment of CCS, saying the technology needed to be ready by 2017-19. Most analysts don’t believe the technology will be available by 2020 at the earliest. Mr Chu’s goal of having 10 demonstration plants online by 2016 echoes an EU target to deploy 12 pilot plants by 2015, something analysts say is unlikely given funding availability, costs, planning permission and construction times.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59B1UG20091012
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Report Identifies Potentially Regulated Facilities (Van Ness Feldman, 12 October 2009)
Duke University’s Nicholas Institute for Environmental Policy Solutions has issued a report looking at which kinds of entities would be regulated under the EPA’s proposed GHG reporting and Clean Air Act tailoring rules, as well as House and Senate cap-and-trade proposals. It finds that nearly the entire fossil-fuel power sector would be regulated, while only 1.3% of manufacturing facilities would fall under the 25 000 tonnes of CO2 emission threshold, and less than 10% of the facilities within the majority of individual industries. Less than a third of pharmaceutical facilities, food manufacturers, textile mills, and iron and steel mills would become regulated entities, though nearly all petroleum refineries, lime manufacturing plants, and chemical manufacturers would.
http://www.vnf.com/news-alerts-397.html
Rising U.S. population makes 2050 climate cut harder (Reuters, 12 October 2009)
Changes in projected population growth would mean that each Russian citizen would be allowed to emit twice as much as US citizen in 2050, as the latter would have to share its emission rights across a larger population, while Russia’s population is projected to fall 20%. However, analyst David Satterthwaite points out that the link between population and emissions is too often exaggerated, and is “at most” weak: "It's consumption that drives dangerous climate change, not population."
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59B2OX20091012?sp=true
Midwestern Accord Focuses on Clean Technology, CCS Development (Van Ness Feldman, 12 October 2009)
While the Midwestern Greenhouse Gas Accord suspended activities to develop a regional cap-and-trade scheme given legislative activity at the US federal level, the Midwestern Governors Association has signed the Midwestern Energy Infrastructure Accord. The Accord promotes CCS, smart grids and other clean technologies, increased electric transmission capacity, and renewable energy goals (10% by 2015 and 30% by 2030).
http://www.vnf.com/news-alerts-397.html
Climate no longer top policy issue with Australians (Reuters, 12 October 2009)
The fifth annual “Australia and the World” poll shows that Australians are no longer ranking climate change and the environment as top priorities, ranking climate change 7th out of 10 most important foreign policy goals, down 10 points since last year and 19 points since 2007. Concern over jobs, the economy, nuclear proliferation, terrorism and immigration all rank higher this year. Climate change Minister Penny Wong said the government’s policy was not determined by polls, and that remained committed to pass a cap-and-trade legislation.
http://www.reuters.com/article/environmentNews/idUSTRE59C07320091013?sp=true
FT Special Report Modern Energy: http://www.ft.com/reports/modern-energy-oct2009 Articles: Oil companies getting serious about adapting; US states taking own action on climate change; China’s difficulties with finding a new energy model; Electric mobility; Nuclear strategy; Research boom; and more…
'Scary' climate message from past (BBC, 10 October 2009)
New research looking back at moments in Earth’s history, when CO2 concentrations were in the 400 ppm range, indicate there was no ice cap on Antarctica and that sea levels were 25-40 m higher than today. While the research does not say this will necessarily happen should concentrations reach this level again, it indicates sustaining such levels for long time periods could produce such changes, and that ice sheet stability appears to have tipping points.
http://news.bbc.co.uk/2/hi/science/nature/8299426.stm
China’s new cultural revolution (Wall Street Journal, 9 October 2009)
Tony Blair reminds us of the hard facts of China’s reality and challenges, asking “that we understand how their country looks to them from the inside, not simply how it looks to us from the comfort of the outside.” While this doesn’t mean that “we cease posing the tough questions to China’s leaders…we should at least understand that this endeavour, political and economic, is unique in human history. It is huge, beyond the comprehension of most Western leaders, and its complexity should be recognized.”
http://online.wsj.com/article/SB10001424052748703298004574459890698286648.html
Ofgem review of Britain’s energy supplies (Ofgem press release, 9 October 2009)
Ofgem released a consultation document outlining the challenges for the UK’s energy industry, looking at four different scenarios over the next 10 to 15 years. The report projects an additional GBP 200 billion in power plant and other infrastructure investment over the next 10 years would be needed to secure energy supplies and to meet carbon targets. In all four scenarios, domestic energy bills would increase by 14% to 25% by 2020 from current levels.
http://www.ofgem.gov.uk/media/pressrel/Documents1/Ofgem%20-%20Discovery%20-%20PR8%20(2).pdf; Project Discovery Energy Market Scenarios consultation http://www.ofgem.gov.uk/Markets/WhlMkts/Discovery/Documents1/Discovery_Scenarios_ConDoc_FINAL.pdf
Few British worry about climate change (Cop 15, 9 October 2009)
The UK Department of Climate Change is launching an awareness campaign on climate change; survey results indicate less than 20% of the British think their children will be affected by global warming.
http://en.cop15.dk/news/view+news?newsid=2320
AP Interview: White House ramps up push on climate (AP, 8 October 2009)
The US Administration has stepped up efforts to get energy and climate legislation passed in Congress, meeting and discussing with a range of stakeholders to keep the bill moving and for legislation to be “as far along as we possibly can be."
http://news.yahoo.com/s/ap/20091008/ap_on_go_co/us_obama_global_warming
President Obama signs Executive Order for federal agencies to monitor GHG emissions, improve efficiency (White House, 5 October 2009)
US President Barack Obama signed an Executive Order requiring Federal agencies to set 2020 GHG reduction targets within 90 days, as well as improve fleet efficiency (30% reduction in vehicle fleet fuel use by 2020), undertake sustainable procurement practices (95% of all applicable contracts will meet sustainability requirements), and meet net-zero energy building requirements (Implementation of the 2030 net-zero-energy building requirement), among other measures. Agencies must reach their goals through the development and implementation of Strategic Sustainability Performance Plans.
http://www.whitehouse.gov/the_press_office/President-Obama-signs-an-Executive-Order-Focused-on-Federal-Leadership-in-Environmental-Energy-and-Economic-Performance/
Warning over global oil 'decline' (BBC, 8 October 2009)
The UK’s Energy Research Council has released a new report examining existing data on oil depletion. While the report highlights the difficulties in gauging oil depletion and thus knowing who is “right” in the polarised debate on peak oil, it concludes that easily exploitable oil has already been found, and that new reserves will be increasingly difficult and expensive to extract. These are also unlikely to make up for the decline of current oil fields: "More than two-thirds of current crude oil production capacity may need to be replaced by 2030, simply to keep production constant." The authors argue this risk is not considered seriously enough by governments.
http://news.bbc.co.uk/2/hi/uk_news/8296096.stm; the report: http://www.ukerc.ac.uk/support/tiki-index.php?page=Global+Oil+Depletion
Ministers cautious on EU-wide CO2 tax proposal (EurActiv, 5 October 2009)
A proposal for an EU-wide carbon tax to help finance a climate change agreement received a cautious welcome from EU finance ministers. Speaking to journalists, Taxation Commissioner László Kovács said "There were not many reactions but those reactions were all positive.” The introduction of a new tax would aim to cover sectors such as agriculture and transport not covered by the EU ETS, and would require unanimity in the 27-state Council of the European Union.
http://www.euractiv.com/en/climate-change/ministers-cautious-eu-wide-co2-tax-proposal/article-186073
Energy bill needs carbon cap: Obama aid (Reuters, 7 October 2009)
White House climate and energy advisor Carol Browner said it would be a “big mistake” for Congress to pass energy legislation without climate change legislation, notably a cap on GHG emissions. "I think you have to keep these programs coordinated because they do impact with each other," said Browner. Some moderate Democrats have suggested simply passing the energy package without the climate legislation.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59657620091007
EPA carbon control seen fraught with problems (Reuters, 7 October 2009)
The EPA could face a litany of problems if it attempts to regulate GHG emissions without legislation by Congress, including litigation and congressional intervention. The potential size of US carbon market would also be a complicating factor, being about 10 times greater than the acid rain programme the EPA has helped run. The EPA would also struggle with telling states how to distribute allowances and spend revenue.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59664A20091007?sp=true
Cities puzzled by greenhouse gas measurements (EurActiv, 7 October 2009)
The crucial role of cities for the EU meeting its target of a 20% reduction in GHG emissions by 2020 may require greater coordination in measurement and reporting, according to a recent report by the College of Europe and Institut Veolia Environnement. Their study underlines that a vast array of GHG emission reporting tools are available to cities, with methodological differences regarding whose emissions are measured, which gases are included and which method is used. This makes comparability quite difficult, and the report found a lack of awareness regarding advanced calculation tools for inventories among inventory developers. At a minimum, a protocol to allow different measurement tools to “dialogue” with each other would be needed.
http://www.euractiv.com/en/sustainability/cities-puzzled-greenhouse-gas-measurements/article-185981
Natural gas to play key role in cutting CO2: study (Reuters, 6 October 2009)
The International Gas Union (IGU), whose members account for about 95% of global natural gas output, saying gas production will need to increase 70% for the world to reduce GHG emissions at the scale need to avoid catastrophic climate change. The right policies would make gas 28% of the global fuel mix by 2030, up from 21% today. The IGU forecasts that continuation of current policy trends would lead to 4.3 trillion cubic meters (Tcm) of annual gas demand by 2030, increasing to 4.8 Tcm with a global climate agreement and high CO2 price – this compares with 3 Tcm of annual demand today. According to IGU’s president, the biggest challenges facing increased use of gas are geopolitical, requiring international agreements and solutions.
http://www.reuters.com/article/GCA-BusinessofGreen/idUSTRE59604T20091007; IGU Press release http://www.igu.org/news/latest/igu-natural-gas-industry-study-to-2030
New treaty on pollutants enters into force on 8 October (UNECE, 6 October 2009)
The Protocol on Pollutant Release and Transfer Registers will enter into force on 8 October. The first legally binding international instrument on pollutant release and transfer registers, the Protocol requires firm to report annually on release into the environment and transfers of 86 pollutants, including GHGs, dioxins and heavy metals. Information is placed in an online publicly accessible register. 20 countries are set to become Parties by the end of the year.
http://www.unece.org/press/pr2009/09env_p23e.htm
Industry, business and utilities
Virtual business models can save energy (Financial Times, 13 October 2009)
Various companies see ways of providing services online as being more efficient, as they can remove the need for manufacturing, transport, and other physical infrastructure. Smart metering, smart grids, and electric vehicle networks are also ways the virtual world can be used to optimise resource use.
http://www.ft.com/cms/s/0/e63770d4-b809-11de-8ca9-00144feab49a.html
U-turn urged on UK energy policy (Financial Times, 12 October 2009)
In its first annual report to Parliament, the UK’s Climate Change Committee is questioning two decades of energy market liberalisation, saying deregulated markets may not produce the level of investment needed in low-carbon energy. The Committee said the carbon price was too low and would likely remain low to spur such investment. Mandatory investment in low-carbon power by utilities and other broader measures would therefore be needed.
http://www.ft.com/cms/s/0/5454f4c4-b6c5-11de-8a28-00144feab49a.html; Report to Parliament http://www.theccc.org.uk/reports/progress-reports Chapter on low-carbon power http://hmccc.s3.amazonaws.com/docs/21667%20CCC%20Report%20Chapter%204.pdf
Soros aims to invest $1 bln in green tech (Reuters, 10 October 2009)
Billionaire George Soros said he would form and fund a new climate policy initiative with USD 10 million annually for ten years, since “global warming is a political problem”, with political leaders needing to demonstrate political will to solve the problem, despite the science being clear. Soros will also invest USD 1 billion in clean energy technology.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5992BJ20091010?sp=true
Energy Secretary hails companies that left Chamber (Reuters, 8 October 2009)
US Energy Secretary Steve Chu applauded companies that quit the US Chamber of Congress due to their negative stance on climate change legislation, saying the Chamber needed to change its position and “realize the economic opportunity that the United States can lead in a new industrial revolution." Chamber President Tom Donohue defended their position, saying they were for climate legislation that in its view was compatible with strong economic growth, something current bills before Congress were not.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5975AI20091009
Buildings
Audits that can save you money (Financial Times, 11 October 2009)
An FT journalist undertakes an energy audit of her home, from a company charging services varying in cost from USD 42 to USD 849 (blowing air and infrared cameras). The company says demand has surged, going from 1000 last year to 4000 scheduled for this year. Of those who undertake audits generally, 50-60% follow through on suggestions. Consumers view companies doing audits with scepticism, as these often sell products as well. The City of Houston is developing a website for people to determine the energy consumption of their home, providing typical consumption rates for different types of houses.
http://www.ft.com/cms/s/0/c145aed4-b4f4-11de-8b17-00144feab49a.html
Europe eyes 15 million eco-renovations: draft (Reuters, 9 October 2009)
A draft revised EU energy efficiency action plan seen by Reuters calls for a European Buildings Initiative that would stimulate the renovation of 15 million buildings in the EU with support from the European Investment Bank, alongside mandatory training for builders and architects. It also says the goal of cutting energy use 20% by 2020 should be made legally binding, a proposal likely to spark intense political debate.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5981CG20091009
Kenya electricity distributor to expand pre-paid metering system (ESI-Africa, 8 October 2009)
Electricity distributor Kenya Power and Lighting Company (KPLC) is planning on further rollout of its pre-paid metering system, under which customers buy pre-paid cards with which their electricity meters are topped up. The meters “subtract” credits on the card, and automatically disconnect the customer once the card has no credit. KPLC has transferred 7000 customers onto pre-paid meter systems, and is looking to increase this to 250 000 customers in the next 12 months. KPLC is using agents to sell the pre-paid cards, which could create thousands of jobs.
http://www.esi-africa.com/node/10756
Buildings
Demand up for energy-efficient homes: survey (Reuters, 6 October 2009)
A quarterly survey by the American Institute of Architects (AIA) indicates that while consumers are much more budget conscious than before, they are increasingly interested in energy efficiency. Two-thirds of architects surveyed said clients are requesting better insulation, as well as double- and triple-glazed windows, solar panels, and water conservation devices. The survey polled over 500 architecture firms that focus on residential buildings, and covers work on existing buildings as well as new homes. The prolonged housing downturn in the US led to a drop in the median home size in 2008 for the first time in 13 years; it has continued to fall in 2009.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5950WK20091006?sp=true
Code Compliance Tool Upgraded to Support State’s Responses to Recovery Act (EERE, 1 October 2009)
A software tool that helps builders and designers demonstrate compliance with the 2009 International Energy Conservation Code (IECC), REScheck 4.3.0, was upgraded at the beginning of September. As part of Recovery Act funding, state governors had to assure the DOE they would implement residential building codes meeting or exceeding 2009 IECC, and achieving 90% compliance of new and renovated residential building space within 8 years. The upgraded REScheck produces compliance forms and certificates and allows compliance forms to be submitted electronically.
http://apps1.eere.energy.gov/states/news_detail.cfm/news_id=14869
New York City Cultivates Green Building Upgrades Two Ways (ENS, 29 September 2009)
New York City launched an initiative to offer a 40-hour course to 1000 building service workers and superintendents to train them in identifying and addressing wasted energy, performing cost-benefit analysis for owners and managers, and develop a “green” operating plan. Another initiative was launched to mobilise volunteers to coat the rooftops of participating buildings with reflective white coating. Cool roofs absorb 80% less heat, thus reducing energy use and costs associated with air conditioning.
http://www.ens-newswire.com/ens/sep2009/2009-09-29-093.asp?utm_source=feedblitz&utm_medium=FeedBlitzEmail&utm_content=556211&utm_campaign=0
Appliances and equipment
DOE to Strengthen Enforcement of Energy Efficiency Standards (EERE, 13 October 2009)
The US Department of Energy (DOE) has issued guidance on the enforcement actions available to it to verify manufacturer compliance with energy efficiency standards. The DOE has also established a programme to review manufacturer compliance and has formed a new enforcement team within the Office of the General Counsel.
http://apps1.eere.energy.gov/news/news_detail.cfm/news_id=15544
Imaging industry told must go beyond business as usual (ENDS, 13 October 2009)
Reflecting concern raised by “green” NGOs, the European Commission is calling on the imaging equipment industry to strengthen proposed voluntary standards, currently calling for half of products on the market in 2011 to meet the latest Energy Star standards. This has been characterised as “more or less business as usual” by a Commission official, who added industry could be given an extended deadline to meet a higher target; such as 90% of products meeting the standards by 2012. The agreement is proposed to avoid the development of mandatory ecodesign regulations.
http://ec.europa.eu/energy/efficiency/ecodesign/forum_en.htm
European Commission adopts recommendation for ICT sector energy efficiency (ENDS Europe, 8 October 2009)
The European Commission adopted a recommendation on mobilising the information and communication technology (ICT) sector to transition towards an energy-efficient and low-carbon economy. The recommendation does not mention a target of cutting the sector’s carbon footprint 20% by 2015, which had met with industry resistance. It calls on the sector to develop a roadmap within 3 months on how to assess its energy performance in 2011, in which it should adopt 2011 energy efficiency targets that exceed those of the EU by 2015. The sector will also identify technologies that will help the building and transport sectors improve energy and environmental performance. Though they are not legally enforceable, Commission recommendations carry political weight.
http://ec.europa.eu/information_society/activities/sustainable_growth/energy_efficiency/index_en.htm; recommendation http://ec.europa.eu/information_society/activities/sustainable_growth/docs/recommendation_d_vista.pdf
Russia to ban incandescent light bulbs from 2014 (Reuters, 8 October 2009)
Russia’s Economy Minister Elvira Nabiullina said incandescent lamps with power rating of 75W or more would be banned from 1 January 2013, and all types of incandescent light bulbs would be banned from 1 January 2014 onwards. The ban would apply to production and sale.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59714Y20091008
Transport
EU's big 3 van makers put brakes on CO2 curbs (Reuters, 13 October 2009)
The governments of France, Italy and Germany have written to the European Commission about proposals that would require EU auto makers to cut CO2 emissions from new vans by 14%, to 175gCO2/km, by July 2013. The governments are suggesting the limits should be phased in later, by 2017. Proposed fines for non compliance have already been softened.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59C40C20091013
Airlines set new fuel efficiency goals: IATA (Reuters, 10 October 2009)
Industry group International Air Transport Association (IATA), representing 230 airlines, announced carriers, airports and aerospace firms have pledged to improve fuel efficiency 1.5% a year until 2020. They also set goals of achieving carbon-neutral growth by 2020, and cutting net CO2 emissions 50% in 2050 from 2005 levels.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE5991IM20091010
Death of "clunker" programme hits Prius sales (BusinessGreen, 5 October 2009)
Data from auto industry analyst Ward’s Auto indicated the end of the US “cash for clunkers” programme has led to significant drops in US auto sales, with “green” vehicles more affected than the market as a whole. Sales of the Prius nearly doubled in July and August and went back down to around pre-clunker figures in September. Sales of the Camry hybrid also dropped 59% from August to September.
http://www.businessgreen.com/business-green/news/2250555/death-clunker-programme-hits
Emissions trading/Carbon market
Push to exempt Australian farmers from carbon laws (Reuters, 14 October 2009)
Australia’s opposition will be presenting the changes it wants to see to proposed carbon trade laws in order for these to pass in the Senate. This includes an amendment that would exempt the agricultural sector, responsible for 16% of Australia’s GHG emissions, with a decision on whether to include them from 2015 onwards to be taken in 2013.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59D1M720091014
US carbon price to hit $15 a ton under Boxer-Kerry (BusinessGreen, 13 October 2009)
A new model developed by Point Carbon predicts that average emission allowance prices under the proposed Boxer-Kerry bill are unlikely to exceed the average floor price for allowances set by the bill (USD 11), and are likely to average USD 15 during the first 2012-2019 phase of the proposed cap-and-trade scheme. The gap between business-as-usual emissions and caps will narrow, according to Point Carbon, as a result of existing policies (e.g. renewable energy and vehicle emission standards).
http://www.businessgreen.com/business-green/news/2251145/carbon-price-hit-tonne-under
Voluntary CO2 market not netting emissions cuts (Reuters, 13 October 2009)
To date, the voluntary carbon market has retired 34.69 million tonnes of CO2; its small size means it has not as yet made an impact in emission reductions. According to First Climate, over 50% of the offset credits transacted in 2008 were originally designed as CDM projects, but were delayed by bottlenecks in the pipeline.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59C2GV20091013
Australia steps up pressure over carbon laws (Reuters, 12 October 2009)
Already revised and rejected once by the Senate, the Australian government is putting pressure on the opposition to put forward changes to the legislation that are “fiscally responsible”, following the release of proposals by the opposition that included a costing error. The government is aiming to pass legislation prior to the December climate change talks, while a new opinion poll has found voters are evenly split over whether laws should pass before or after the talks.
http://www.reuters.com/article/environmentNews/idUSTRE59B0Q120091012?sp=true
Commission presents consultation responses on EU ETS auctioning (ENDS, 8 October 2009)
The EU Commission presented the results of a stakeholder on new auctioning regulation under the ETS at a stakeholder conference last week. The consultation revealed that most stakeholders (states and emitters) would prefer large auctions starting early, with electricity companies strongly in support of large auctioning from 2011 onwards (to be able to predict costs in advance), while banks and member states are more cautious – worried about market flooding and lower carbon prices. Most support a centralised EU auctioning approach, with some states wishing to maintain their systems (UK, Germany). Major unresolved issues are the level of centralisation, how to prevent market abuse, and the need for a reserve price.
Consultation responses: http://ec.europa.eu/environment/climat/emission/pdf/090928consultation.pdf Key issues: http://ec.europa.eu/environment/climat/emission/pdf/090928key_issues.pdf
Japan goes CO2 shopping again (Cop15, 7 October 2009)
Kyodo News reported that Japan has concluded a contract to buy AAUs worth 1.5 million tonnes of CO2 from Latvia.
http://en.cop15.dk/news/view+news?newsid=2299
Climate change negotiations
Brazil eyes capping emissions at 2005 levels (Reuters, 13 October 2009)
Brazil’s Environment Minister Carlos Minc said he proposed a target of reducing national emissions to 2005 levels by 2020 to President Lula da Silva and cabinet ministers, and that “[t]here was not much disagreement over the target as such, but there were alternative proposals on how to get there.” He said the target could be reached even with economic growth of 4% per annum, and would cost at least USD 10 billion annually. Brazil agreed to increase its deforestation target this week, to an 80% reduction in the deforestation rate by 2020 (based on annual average between 1996 and 2005).
http://www.reuters.com/article/environmentNews/idUSTRE59C5N220091013
South Korea May Target 4% Cut in Emissions by 2020 (Bloomberg; BusinessGreen, 13 October 2009)
Despite industry supporting very weak emission limitation targets, South Korea’s Environment minister Lee Maanee said it was possible Korea would take on a 4% emissions reduction target for 2020, from 2005 levels. This could allow emissions to peak by 2012. The most ambitious in three options presented and being discussed, Mr. Maanee said all the targets would be challenging for Korea despite appearances, due to continued economic growth and rising energy demand.
http://www.bloomberg.com/apps/news?pid=20601130&sid=ag7ykt9K2cE4; http://www.businessgreen.com/business-green/news/2251186/south-korea-eyes-four-per-cent
India not changing position on climate change, says Jairam Ramesh (The Economic Times, 13 October 2009)
To dispel speculation on a possible “softening” of India’s negotiation stance, Environment minister Jairam Ramesh wrote to senior members of the negotiating team that the country’s position had not changed, including no monitoring/verification/reporting of domestically driven measures. He said sectoral performance targets currently proposed would in no way dilute India’s negotiating position, in which: “…commitments we take must be of our own accord, on our own terms, and in line with our own development priorities. The only entity to which we will be accountable for any form of commitment will be our Parliament, and Parliament alone,” according to Mr Ramesh’s communiqué.
http://economictimes.indiatimes.com/India-not-changing-position-on-climate-change-says-Jairam-Ramesh/articleshow/5117948.cms
China, U.S. can bridge global climate divide: group (Reuters, 13 October 2009)
Business leaders are pointing to the prospects for cooperation between the US and China, which gives some hope for progress in climate change talks. World Business Council for Sustainable Development (WBCSD) president Bjorn Stigson said dialogue between the two countries could be critical in bridging the current divide between developed and developing countries ahead of climate change negotiations in December.
http://www.reuters.com/article/GCA-GreenBusiness/idUSTRE59C65420091013
Asia finds common ground on climate policy (Cop15, 12 October 2009)
Chinese, Japanese and Korean leaders met over the weekend and announced they would “work closely together through strengthened dialogue to establish “an effective post-2012 international co-operation framework on climate change.”
http://en.cop15.dk/news/view+news?newsid=2329
Danish minister: North American politicians should learn from their European counterparts (Cop15, 12 October 2009)
In an interview with Canadian paper The Globe and Mail, Danish minister for climate and energy Connie Hedegaard said North American politicians needed to start acting seriously on climate change, and realise that action is just as difficult to undertake in theEU, and even more so if they do not move forward. Heidegaard asked, “How am I to convince Danish companies that they should go from 20 percent reductions in their CO2 emissions to maybe 30 percent by 2020, if their American and Canadian competitors are not part of that?”
http://en.cop15.dk/news/view+news?newsid=2334
Denmark’s chief climate negotiator resigns (Cop 15, 12 October 2009)
Denmark’s chief climate negotiator Thomas Becker has resigned as deputy permanent secretary in the Ministry for Climate and Energy, and declined to comment or give reasons for the resignation. Permanent Secretary Thomas Egebo was quoted by news sources as saying this followed “disagreements of a non-professional nature, matters that the ministry and Becker look differently upon”.
http://en.cop15.dk/news/view+news?newsid=2325
India against moves for ‘weak’ climate accord (The Hindu, 9 October 2009)
The Hindu speaks with India’s Special Envoy on climate change issues Shyam Saran, saying India is opposed to setting aside the Kyoto Protocol, as several developed countries are suggesting. Saran sees this as meaning diminished implementation of commitments and not enhanced commitments, and risks ending up being “much weaker than what the international community had agreed to by consensus.”
http://www.hindu.com/2009/10/09/stories/2009100952081100.htm
U.S. May Not Make CO2-Emissions Pledge, Pershing Says (Bloomberg, 9 October 2009)
Jonathan Pershing, top US climate negotiator says it will be “extraordinarily difficult for the U.S. to commit to a specific number in the absence of action from Congress,” adding it was not really possible to answer what and how much the US would be able to do.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aZNQ2TZcRnaM
Saudis ask for aid if world cuts dependence on oil (Cop15, 9 October 2009)
Saudi climate change delegation Mohammad S. Al Sabban dismissed the IEA’s figures on OPEC revenues should countries decide to reduce emissions as "biased", saying their calculations indicate Saudi Arabia would lose USD 19 billion a year starting in 2012 under a new climate agreement, and that region represented “economically vulnerable countries”. Environmental groups IndyACT and Germanwatch released a report accusing Saudi Arabia of purposely using such arguments to slow down and hinder negotiations, saying their position was “mainly focused around protecting the oil trade”.
http://en.cop15.dk/news/view+news?newsid=2310
Politicians wanted at the conference table (Cop15, 8 October 2009)
Bangladesh’s climate negotiator Quamrul Chowdhury said strong political leaders needed to attend the Bangkok climate negotiations for progress to be made, because "the technical people can't deliver," and lower-ranking negotiators "can't take strong political decisions".
http://en.cop15.dk/news/view+news?newsid=2309