Undisclosed pre-tax profits at the luxury sports-car maker were up – thanks to stock options trading in Volkswagen, where Porsche has acquired a majority and initially planned to raise it to 75% this year. Volkswagen, Europe's biggest carmaker, warned that its profits and sales this year would decline, but insisted it would boost its overall global market share. The German group refused to give a precise forecast after reporting record revenues and earnings for 2008 in a surprise announcement. However, elsewhere in the industry, the figures are deep red and are threatening to deteriorate as firms such as General Motors, Chrysler and the rest run out of cash.
On a more optimistic note, in Brussels, the European commission (EC) today waved through Italian and Spanish plans to bail out their respective auto industries after securing commitments that they would be non-discriminatory and remain within the hallowed internal market rules.
And, in Paris, Peugeot Citroënsaid it would accelerate a joint venture with Japan's Mitsubishi to launch electric cars on Europe's roads by late 2010. It is already bidding to provide La Poste with 500 electric vans and working with power group EDF on a plug-in hybrid capable of running on batteries for 50km.
This year's motor show will be centred on the environment. "There will be a green focus. It will be a welcome diversion from the financial crisis," said analyst Rebecca Wright of Global Insight. But, amid all the new green models on display, there will still be room among the 85 planned launches for high-performance Bentleys and Bugattis.
The industry's problems could lead to a re-drawing of the ownership structure worldwide with a radical move to shrink capacity. The European commission reckons the European industry is saddled with 20% over-capacity that needs to be stripped out in time for the recovery.
General Motors' Europe plan set out last Friday to save Opel and Britain's Vauxhall relies heavily on €3.3bn (£2.9bn) of government aid, including from Britain. Karl-Theodor zu Guttenberg, Germany's federal economics minister, indicated Berlin was in no hurry to oblige.
The plan requires €3bn from parent GM and €1.2bn of savings as well as private investors stumping up 25% to 50% of new capital and will almost inevitably see one or more of the plants close.
Brussels says the long-term global outlook is "promising", exponential demand in emerging markets and the imperative of a "greener" fleet bringing new opportunities. But, in the next few days, executives will warn that it could take years for China, India and the rest to recover, and reduced budgets for investment and R&D will put back the "greening" of the industry and make EU targets for cutting emissions to less than 120g a kilometre unreachable.
Tuesday, 3 March 2009
Boris jumps on board France's 'hire an electric car' scheme
Mayor may bring green travel scheme to London
By Michael McCarthy, Environment Editor
Monday, 2 March 2009
First it was public bicycles he was bringing to the streets of London. Now Mayor Boris Johnson is looking at pinching another green travel idea from the French – a public electric car hire scheme.
The project would allow casual car users to pick up a publicly-owned, battery-powered, zero-carbon vehicle in one part of the city and easily drop it off in another.
Mr Johnson says it would help make London the "electric capital of Europe". His officials are studying plans to introduce a similar scheme in Paris next year called Autolib – a brainchild of the Mayor of Paris, Bertrand Delanoë.
Autolib will see 4,000 electric cars sited across Paris and its suburbs, which drivers will be able to use at any time for a charge.
The scheme follows the city's hugely successful Vélib – an on-street bicycle hire scheme. Mr Johnson, a cycling enthusiast, will launch his own version of that in London in May 2010.
But the Conservative Mayor has now developed a similar enthusiasm for electric cars, and has set up a working group – the London Electric Vehicle Partnership – to encourage the car industry to speed the delivery of new technology, and increase support for drivers of electric cars in the capital.
At its first meeting late last year, representatives of the motor and energy industries and London boroughs agreed a plan to sharply increase electric car use in the capital.
Mr Johnson's officials are now looking at the capital's charging infrastructure, trialling electric technology, and closely studying Autolib – although no firm decision about introducing a London version has yet been taken.
The Parisian scheme, to begin operating at the end of this year, will see some 700 pick-up points established across the city, with 200 underground.
These will operate in the same way as Vélib. Users will either pay an annual subscription, or pay at pick-up points on the spur of the moment by using their public transport pass (equivalent to London's Oyster Card).
The great environmental attraction of the scheme is that electric cars produce no CO2 emissions.
M. Delanoë has described the plan as "a system of individual journeys that are completely clean" – although some members of the French Green party are opposed to it on the grounds that anything which puts more cars on the roads (instead of more bikes) is bad.
By Michael McCarthy, Environment Editor
Monday, 2 March 2009
First it was public bicycles he was bringing to the streets of London. Now Mayor Boris Johnson is looking at pinching another green travel idea from the French – a public electric car hire scheme.
The project would allow casual car users to pick up a publicly-owned, battery-powered, zero-carbon vehicle in one part of the city and easily drop it off in another.
Mr Johnson says it would help make London the "electric capital of Europe". His officials are studying plans to introduce a similar scheme in Paris next year called Autolib – a brainchild of the Mayor of Paris, Bertrand Delanoë.
Autolib will see 4,000 electric cars sited across Paris and its suburbs, which drivers will be able to use at any time for a charge.
The scheme follows the city's hugely successful Vélib – an on-street bicycle hire scheme. Mr Johnson, a cycling enthusiast, will launch his own version of that in London in May 2010.
But the Conservative Mayor has now developed a similar enthusiasm for electric cars, and has set up a working group – the London Electric Vehicle Partnership – to encourage the car industry to speed the delivery of new technology, and increase support for drivers of electric cars in the capital.
At its first meeting late last year, representatives of the motor and energy industries and London boroughs agreed a plan to sharply increase electric car use in the capital.
Mr Johnson's officials are now looking at the capital's charging infrastructure, trialling electric technology, and closely studying Autolib – although no firm decision about introducing a London version has yet been taken.
The Parisian scheme, to begin operating at the end of this year, will see some 700 pick-up points established across the city, with 200 underground.
These will operate in the same way as Vélib. Users will either pay an annual subscription, or pay at pick-up points on the spur of the moment by using their public transport pass (equivalent to London's Oyster Card).
The great environmental attraction of the scheme is that electric cars produce no CO2 emissions.
M. Delanoë has described the plan as "a system of individual journeys that are completely clean" – although some members of the French Green party are opposed to it on the grounds that anything which puts more cars on the roads (instead of more bikes) is bad.
Green cars could kick-start stalled motor industry
Glitz and bling tarnished by the downturn and a succession of grim sales statistics
David Gow
guardian.co.uk, Monday 2 March 2009 17.53 GMT
A man climbs out of an iChange, built by Swiss carmaker Rinspeed, at the 79th Geneva Car Show. The car changes shape to accommodate different numbers of people. Photograph: Arnd Wiegmann/Reuters
Japan today reported a 32% collapse in car sales in February – the worst decline since 1974 – and sales slumped in Spain by 48% highlighting the dire state of global carmaking on the eve of the Geneva motor show.
Carmakers are experiencing the worst slump in sales for 35 to 50 years, millions of jobs are under threat, several companies could go out of business and dozens of plants will close for ever. Tomorrow the 79th Geneva motor show, traditionally one of the world's biggest and most sumptuous, will showcase an industry starved of credit and customers. Normally an occasion for glitz and bling, for irrationally exuberant launches and parties, it will be leaner – and greener – than usual. Japan, home of the world's biggest car-maker Toyota, as well as Honda and Nissan and the like, reported a 32.4% collapse in car sales in February - on top of a 28% drop in January and the worst decline since 1974.
Spain, once one of the western Europe's fastest-growing economies and markets, saw sales fall 48.4% - close to the record 49.6% slide last November and coming after a "mere" 41.6% in January. The socialist government's "scrappage" scheme, paying drivers €1,500 each to trade in their elderly bangers for new, fuel-efficient models, ain't is not working - yet.
"Consumers continue to shy away in the face of an economic slump," said Kentaro Nakata of the Japanese car dealers' association. "Auto demand remains depressed and it is very difficult to predict an upturn in the market right now."
He could have been speaking for the global industry which, according to Carlos Ghosn, chief executive of Renault and Nissan and president of the European auto-manufacturers' association ACEA, expects sales of just 55m, perhaps even 50m, this year – compared with the expected pre-recession demand of 70m and capacity of 94m. India's Tata, owner of Jaguar Land Rover, today revealed its sales declined by 15%.
Only three months ago, Wendelin Wiedeking, Porsche's chief executive, arrogantly dismissed the clamour of European and US rivals for state bail-outs as he reported profits far exceeding sales. However, todayit announced first-half sales tumbled 27%, with revenues down nearly 13% as rich consumers boycott conspicuous consumption and sacked bankers hoard their shrunken bonuses.
Environmental focus
Undisclosed pre-tax profits at the luxury sports-car maker were up – thanks to stock options trading in Volkswagen, where Porsche has acquired a majority and initially planned to raise it to 75% this year. Volkswagen, Europe's biggest carmaker, warned that its profits and sales this year would decline, but insisted it would boost its overall global market share. The German group refused to give a precise forecast after reporting record revenues and earnings for 2008 in a surprise announcement. However, elsewhere in the industry, the figures are deep red and are threatening to deteriorate as firms such as General Motors, Chrysler and the rest run out of cash.
On a more optimistic note, in Brussels, the European commission (EC) today waved through Italian and Spanish plans to bail out their respective auto industries after securing commitments that they would be non-discriminatory and remain within the hallowed internal market rules.
And, in Paris, Peugeot Citroënsaid it would accelerate a joint venture with Japan's Mitsubishi to launch electric cars on Europe's roads by late 2010. It is already bidding to provide La Poste with 500 electric vans and working with power group EDF on a plug-in hybrid capable of running on batteries for 50km.
This year's motor show will be centred on the environment. "There will be a green focus. It will be a welcome diversion from the financial crisis," said analyst Rebecca Wright of Global Insight. But, amid all the new green models on display, there will still be room among the 85 planned launches for high-performance Bentleys and Bugattis.
The industry's problems could lead to a re-drawing of the ownership structure worldwide with a radical move to shrink capacity. The European commission reckons the European industry is saddled with 20% over-capacity that needs to be stripped out in time for the recovery.
General Motors' Europe plan set out last Friday to save Opel and Britain's Vauxhall relies heavily on €3.3bn (£2.9bn) of government aid, including from Britain. Karl-Theodor zu Guttenberg, Germany's federal economics minister, indicated Berlin was in no hurry to oblige.
The plan requires €3bn from parent GM and €1.2bn of savings as well as private investors stumping up 25% to 50% of new capital and will almost inevitably see one or more of the plants close.
Brussels says the long-term global outlook is "promising", exponential demand in emerging markets and the imperative of a "greener" fleet bringing new opportunities. But, in the next few days, executives will warn that it could take years for China, India and the rest to recover, and reduced budgets for investment and R&D will put back the "greening" of the industry and make EU targets for cutting emissions to less than 120g a kilometre unreachable.
David Gow
guardian.co.uk, Monday 2 March 2009 17.53 GMT
A man climbs out of an iChange, built by Swiss carmaker Rinspeed, at the 79th Geneva Car Show. The car changes shape to accommodate different numbers of people. Photograph: Arnd Wiegmann/Reuters
Japan today reported a 32% collapse in car sales in February – the worst decline since 1974 – and sales slumped in Spain by 48% highlighting the dire state of global carmaking on the eve of the Geneva motor show.
Carmakers are experiencing the worst slump in sales for 35 to 50 years, millions of jobs are under threat, several companies could go out of business and dozens of plants will close for ever. Tomorrow the 79th Geneva motor show, traditionally one of the world's biggest and most sumptuous, will showcase an industry starved of credit and customers. Normally an occasion for glitz and bling, for irrationally exuberant launches and parties, it will be leaner – and greener – than usual. Japan, home of the world's biggest car-maker Toyota, as well as Honda and Nissan and the like, reported a 32.4% collapse in car sales in February - on top of a 28% drop in January and the worst decline since 1974.
Spain, once one of the western Europe's fastest-growing economies and markets, saw sales fall 48.4% - close to the record 49.6% slide last November and coming after a "mere" 41.6% in January. The socialist government's "scrappage" scheme, paying drivers €1,500 each to trade in their elderly bangers for new, fuel-efficient models, ain't is not working - yet.
"Consumers continue to shy away in the face of an economic slump," said Kentaro Nakata of the Japanese car dealers' association. "Auto demand remains depressed and it is very difficult to predict an upturn in the market right now."
He could have been speaking for the global industry which, according to Carlos Ghosn, chief executive of Renault and Nissan and president of the European auto-manufacturers' association ACEA, expects sales of just 55m, perhaps even 50m, this year – compared with the expected pre-recession demand of 70m and capacity of 94m. India's Tata, owner of Jaguar Land Rover, today revealed its sales declined by 15%.
Only three months ago, Wendelin Wiedeking, Porsche's chief executive, arrogantly dismissed the clamour of European and US rivals for state bail-outs as he reported profits far exceeding sales. However, todayit announced first-half sales tumbled 27%, with revenues down nearly 13% as rich consumers boycott conspicuous consumption and sacked bankers hoard their shrunken bonuses.
Environmental focus
Undisclosed pre-tax profits at the luxury sports-car maker were up – thanks to stock options trading in Volkswagen, where Porsche has acquired a majority and initially planned to raise it to 75% this year. Volkswagen, Europe's biggest carmaker, warned that its profits and sales this year would decline, but insisted it would boost its overall global market share. The German group refused to give a precise forecast after reporting record revenues and earnings for 2008 in a surprise announcement. However, elsewhere in the industry, the figures are deep red and are threatening to deteriorate as firms such as General Motors, Chrysler and the rest run out of cash.
On a more optimistic note, in Brussels, the European commission (EC) today waved through Italian and Spanish plans to bail out their respective auto industries after securing commitments that they would be non-discriminatory and remain within the hallowed internal market rules.
And, in Paris, Peugeot Citroënsaid it would accelerate a joint venture with Japan's Mitsubishi to launch electric cars on Europe's roads by late 2010. It is already bidding to provide La Poste with 500 electric vans and working with power group EDF on a plug-in hybrid capable of running on batteries for 50km.
This year's motor show will be centred on the environment. "There will be a green focus. It will be a welcome diversion from the financial crisis," said analyst Rebecca Wright of Global Insight. But, amid all the new green models on display, there will still be room among the 85 planned launches for high-performance Bentleys and Bugattis.
The industry's problems could lead to a re-drawing of the ownership structure worldwide with a radical move to shrink capacity. The European commission reckons the European industry is saddled with 20% over-capacity that needs to be stripped out in time for the recovery.
General Motors' Europe plan set out last Friday to save Opel and Britain's Vauxhall relies heavily on €3.3bn (£2.9bn) of government aid, including from Britain. Karl-Theodor zu Guttenberg, Germany's federal economics minister, indicated Berlin was in no hurry to oblige.
The plan requires €3bn from parent GM and €1.2bn of savings as well as private investors stumping up 25% to 50% of new capital and will almost inevitably see one or more of the plants close.
Brussels says the long-term global outlook is "promising", exponential demand in emerging markets and the imperative of a "greener" fleet bringing new opportunities. But, in the next few days, executives will warn that it could take years for China, India and the rest to recover, and reduced budgets for investment and R&D will put back the "greening" of the industry and make EU targets for cutting emissions to less than 120g a kilometre unreachable.
Ford bucks Detroit's trend with 3 new-car debuts
By BILL VLASIC
Published: March 3, 2009
DETROIT: New-car introductions are becoming increasingly rare as the auto industry suffers through its worst downturn in 25 years.
Ford Motor is bucking the trend this month, however, gambling that its new Fusion hybrid sedan can interest some of the dwindling number of American consumers still interested in buying new cars.
Ford also hopes its Fusion hybrid will help separate the automaker in the public's mind from its crosstown rivals General Motors and Chrysler, which both need more U.S. government loans to avoid bankruptcy.
Ford has so far refrained from seeking federal aid.
"We are not about waiting for tomorrow and what it's going to bring," said James Farley, Ford's global marketing chief. "It's about what we're doing today to bring out car after car after car."
The industry has cut back considerably on new-model introductions - hardly a surprise considering the 18 percent drop in U.S. vehicle sales last year.
Last year, automakers brought out 17 new models, not including redesigns of existing vehicles, according to data from Ward's Automotive Reports.
That was about half the annual number of new models the industry turned out just a few years before. Now, with sales plunging to levels comparable to those in the early 1980s, automakers are delaying or canceling product programs to conserve cash.
The number of new models that will be introduced in 2009 will probably be fewer than 10, according to product plans disclosed by the car companies.
"The environment is obviously not good as far as the economy and consumer confidence goes," said Joseph Phillippi, principal in the firm Auto Trends Consulting.
Ford, however, is bringing out three new vehicles this year - the Fusion, with either a hybrid or conventional engine; the new Taurus sedan and the Transit Connect van.
Ford will introduce the Fusion Hybrid with an advertising campaign beginning Tuesday night on "American Idol."
With Ford shifting its product lineup to emphasize more fuel-efficient small cars, the Fusion Hybrid is seen in the company as an important vehicle for changing perceptions in the marketplace, even though the cost of gasoline is well below its high of nearly $4 a gallon, or $1.06 a liter.
"We're known to most people as a trucks and Mustang company," said Matt Van Dyke, Ford's American director of marketing communications. "How do we begin to tell the story that we're in the car business in earnest?"
The bigger challenge may be drawing consumers into showrooms. "The question is what people are going to respond to," Farley said. "And we think it is fuel economy."
Both the hybrid and conventionally powered Fusion models are ranked best in fuel economy in their respective segments, according to federal statistics.
While they do not talk about it much publicly, Ford officials also think that every car introduction this year will further separate their company from the troubles enveloping GM and Chrysler.
Ford is tracking how its decision not to take government money has affected consumers' perceptions of the company, but has declined to share that data.
The U.S. magazine Consumer Reports recently gave Ford's reputation a lift when it recommended more of its models to prospective buyers than vehicles from GM or Chrysler.
GM and Chrysler have received $17.4 billion combined in bailout loans, and are asking Washington for an additional $21.6 billion.
Analysts think the relentless coverage of their loan requests is taking a toll on GM and Chrysler - and consequently helping Ford.
"GM and Chrysler are in the media every day, and every story invariably cites the 'B' words - bankruptcy and bailout," Phillippi said. "It has to be helping Ford."
Published: March 3, 2009
DETROIT: New-car introductions are becoming increasingly rare as the auto industry suffers through its worst downturn in 25 years.
Ford Motor is bucking the trend this month, however, gambling that its new Fusion hybrid sedan can interest some of the dwindling number of American consumers still interested in buying new cars.
Ford also hopes its Fusion hybrid will help separate the automaker in the public's mind from its crosstown rivals General Motors and Chrysler, which both need more U.S. government loans to avoid bankruptcy.
Ford has so far refrained from seeking federal aid.
"We are not about waiting for tomorrow and what it's going to bring," said James Farley, Ford's global marketing chief. "It's about what we're doing today to bring out car after car after car."
The industry has cut back considerably on new-model introductions - hardly a surprise considering the 18 percent drop in U.S. vehicle sales last year.
Last year, automakers brought out 17 new models, not including redesigns of existing vehicles, according to data from Ward's Automotive Reports.
That was about half the annual number of new models the industry turned out just a few years before. Now, with sales plunging to levels comparable to those in the early 1980s, automakers are delaying or canceling product programs to conserve cash.
The number of new models that will be introduced in 2009 will probably be fewer than 10, according to product plans disclosed by the car companies.
"The environment is obviously not good as far as the economy and consumer confidence goes," said Joseph Phillippi, principal in the firm Auto Trends Consulting.
Ford, however, is bringing out three new vehicles this year - the Fusion, with either a hybrid or conventional engine; the new Taurus sedan and the Transit Connect van.
Ford will introduce the Fusion Hybrid with an advertising campaign beginning Tuesday night on "American Idol."
With Ford shifting its product lineup to emphasize more fuel-efficient small cars, the Fusion Hybrid is seen in the company as an important vehicle for changing perceptions in the marketplace, even though the cost of gasoline is well below its high of nearly $4 a gallon, or $1.06 a liter.
"We're known to most people as a trucks and Mustang company," said Matt Van Dyke, Ford's American director of marketing communications. "How do we begin to tell the story that we're in the car business in earnest?"
The bigger challenge may be drawing consumers into showrooms. "The question is what people are going to respond to," Farley said. "And we think it is fuel economy."
Both the hybrid and conventionally powered Fusion models are ranked best in fuel economy in their respective segments, according to federal statistics.
While they do not talk about it much publicly, Ford officials also think that every car introduction this year will further separate their company from the troubles enveloping GM and Chrysler.
Ford is tracking how its decision not to take government money has affected consumers' perceptions of the company, but has declined to share that data.
The U.S. magazine Consumer Reports recently gave Ford's reputation a lift when it recommended more of its models to prospective buyers than vehicles from GM or Chrysler.
GM and Chrysler have received $17.4 billion combined in bailout loans, and are asking Washington for an additional $21.6 billion.
Analysts think the relentless coverage of their loan requests is taking a toll on GM and Chrysler - and consequently helping Ford.
"GM and Chrysler are in the media every day, and every story invariably cites the 'B' words - bankruptcy and bailout," Phillippi said. "It has to be helping Ford."
Mitsubishi, Peugeot Plan Electric Car
By DAVID PEARSON and YOSHIO TAKAHASHI
Mitsubishi Motors Corp. of Japan and French partner PSA Peugeot Citroën SA said Monday they plan to launch an electric car model in Europe by late 2010 or early 2011 in response to stricter carbon-dioxide emissions regulations.
Mitsubishi Motors will produce the zero-emissions vehicle, which will be based on its small Imiev electric car. The company plans to launch the Imiev in Japan this year, and it is looking at other potential markets for the vehicle in addition to Europe, including the U.S.
A spokesman for Peugeot Citroën said that, if European demand for electric vehicles develops significantly, production of the vehicles could be located closer to the market.
Mitsubishi plans to sell the Imiev in Europe under its own brand, and Peugeot Citroën will market it under the Peugeot nameplate.
Citroën, Peugeot's sister brand, will be showing an all-electric version of its C-Cactus concept car at the Geneva Motor Show this week.
Lithium Energy Japan, a joint venture of GS Yuasa and Mitsubishi Motors' parent company, Mitsubishi Corp., will supply the batteries that will power the vehicles.
Peugeot and Mitsubishi's move comes after French car maker Renault SA said last month that it aims to become the market leader for low-emission internal combustion engines and no-emission electric powertrains. With its Japanese partner, Nissan Motor Co., Renault is developing a range of all-electric powertrains to cover vehicles ranging from city cars to large vans, said the company's senior vice president for powertrain engineering, Jacques Prost.
Peugeot Citroën and Mitsubishi Motors already cooperate in making a range of midsize sport-utility vehicles. Last year, they disclosed plans to start making these vehicles based on Mitsubishi's Outlander in Russia.
The industry still faces a bumpy road to an era of full-blown battery-powered cars. Gasoline prices have come down, potentially damping the public's willingness to embrace alternative-fuel vehicles. Safety has also come into question, as some lithium-ion batteries -- widely believed to be the key to making viable electric cars -- have shown a tendency to overheat and sometimes catch fire.
Auto makers with eco-friendly vehicles include Toyota Motor Corp. and General Motors Corp. Toyota's Prius hybrid is a gasoline-fueled car with an electric engine that propels the car at low speeds and assists the gasoline engine when accelerating. GM's Chevrolet Volt is an electric car with a small gasoline engine for backup power.
Write to David Pearson at david.pearson@dowjones.com and Yoshio Takahashi at yoshio.takahashi@dowjones.com
Mitsubishi Motors Corp. of Japan and French partner PSA Peugeot Citroën SA said Monday they plan to launch an electric car model in Europe by late 2010 or early 2011 in response to stricter carbon-dioxide emissions regulations.
Mitsubishi Motors will produce the zero-emissions vehicle, which will be based on its small Imiev electric car. The company plans to launch the Imiev in Japan this year, and it is looking at other potential markets for the vehicle in addition to Europe, including the U.S.
A spokesman for Peugeot Citroën said that, if European demand for electric vehicles develops significantly, production of the vehicles could be located closer to the market.
Mitsubishi plans to sell the Imiev in Europe under its own brand, and Peugeot Citroën will market it under the Peugeot nameplate.
Citroën, Peugeot's sister brand, will be showing an all-electric version of its C-Cactus concept car at the Geneva Motor Show this week.
Lithium Energy Japan, a joint venture of GS Yuasa and Mitsubishi Motors' parent company, Mitsubishi Corp., will supply the batteries that will power the vehicles.
Peugeot and Mitsubishi's move comes after French car maker Renault SA said last month that it aims to become the market leader for low-emission internal combustion engines and no-emission electric powertrains. With its Japanese partner, Nissan Motor Co., Renault is developing a range of all-electric powertrains to cover vehicles ranging from city cars to large vans, said the company's senior vice president for powertrain engineering, Jacques Prost.
Peugeot Citroën and Mitsubishi Motors already cooperate in making a range of midsize sport-utility vehicles. Last year, they disclosed plans to start making these vehicles based on Mitsubishi's Outlander in Russia.
The industry still faces a bumpy road to an era of full-blown battery-powered cars. Gasoline prices have come down, potentially damping the public's willingness to embrace alternative-fuel vehicles. Safety has also come into question, as some lithium-ion batteries -- widely believed to be the key to making viable electric cars -- have shown a tendency to overheat and sometimes catch fire.
Auto makers with eco-friendly vehicles include Toyota Motor Corp. and General Motors Corp. Toyota's Prius hybrid is a gasoline-fueled car with an electric engine that propels the car at low speeds and assists the gasoline engine when accelerating. GM's Chevrolet Volt is an electric car with a small gasoline engine for backup power.
Write to David Pearson at david.pearson@dowjones.com and Yoshio Takahashi at yoshio.takahashi@dowjones.com
Decision on new coal-fired plant delayed again
Juliette Jowit
The Guardian, Monday 2 March 2009
Decisions about any new coal-fired power plants in the UK have been delayed until the autumn, prompting warnings from energy companies about the growing risk that the country could run out of electricity generating capacity.
Ministers were due to make a decision last year on an application to build the first new coal plant in the UK for a generation at Kingsnorth in Kent - a move expected to trigger submissions for further projects.
However, insiders said the decision was not now expected until after the summer because of a decision by the energy and climate change secretary, Ed Miliband, to order a fresh review of coal policy. The Guardian revealed last week that Miliband was considering plans for tough new limits on global warming emissions from coal plants and wanted the government to help fund more carbon capture and storage projects to make this happen.
The decision was earlier delayed by another government consultation on what companies building new coal plants would have to do to make them "capture ready", announced last year.
Jonathan Smith, E.ON's media relations manager, said: "We do not expect any imminent decision, by any stretch of the imagination."
A further delay in the controversial decision about Kingsnorth will delight environmentalists, who have singled out the Kent plant for opposition, because coal is the most polluting form of energy, and because of concern that building a coal plant without strict pollution control would destroy attempts to curb carbon emissions in emerging economies.
However, Smith said further delays raised the threat that the UK could not build the new plants in time to replace the nuclear and old coal power stations that are due to be closed in the next decade.
A spokesman for the Department of Energy and Climate Change said: "A decision on Kingsnorth will follow our consultation on the conditions around new coal-fired power stations. We are aware of the need to ensure security of energy supplies."
The Guardian, Monday 2 March 2009
Decisions about any new coal-fired power plants in the UK have been delayed until the autumn, prompting warnings from energy companies about the growing risk that the country could run out of electricity generating capacity.
Ministers were due to make a decision last year on an application to build the first new coal plant in the UK for a generation at Kingsnorth in Kent - a move expected to trigger submissions for further projects.
However, insiders said the decision was not now expected until after the summer because of a decision by the energy and climate change secretary, Ed Miliband, to order a fresh review of coal policy. The Guardian revealed last week that Miliband was considering plans for tough new limits on global warming emissions from coal plants and wanted the government to help fund more carbon capture and storage projects to make this happen.
The decision was earlier delayed by another government consultation on what companies building new coal plants would have to do to make them "capture ready", announced last year.
Jonathan Smith, E.ON's media relations manager, said: "We do not expect any imminent decision, by any stretch of the imagination."
A further delay in the controversial decision about Kingsnorth will delight environmentalists, who have singled out the Kent plant for opposition, because coal is the most polluting form of energy, and because of concern that building a coal plant without strict pollution control would destroy attempts to curb carbon emissions in emerging economies.
However, Smith said further delays raised the threat that the UK could not build the new plants in time to replace the nuclear and old coal power stations that are due to be closed in the next decade.
A spokesman for the Department of Energy and Climate Change said: "A decision on Kingsnorth will follow our consultation on the conditions around new coal-fired power stations. We are aware of the need to ensure security of energy supplies."
Indian Biodiesel Firms Eye Local Sales
By GURDEEP SINGH
NEW DELHI -- Indian biodiesel producers are shedding their "only-for-export" status and looking to local sales, but even so are cutting output and shelving expansion projects due to caution about the market outlook.
Their prospects for foreign, and domestic, sales have been undermined by the collapse in the price of conventional diesel, which is now cheaper than crop-based diesel, by tough and sometimes subsidized competition, and by doubts about the ecological credentials of the fuel.
"We have a long-term goal to expand to 500,000 tons a year. But today there's no investor appetite. We'll have to wait for the market to stabilize," said C.S. Bhaskar, chief executive of Natural BioEnergy, who had to shut his 100,000-ton-a-year biodiesel plant in southern India in October after it could no longer export at a profit to the E.U.
He's been running the plant at 50% capacity since December and now plans to scrap its Indian government export-oriented-unit or EoU status, and focus on the domestic market.
"We will always have the option to export, whenever the market opens up," he said. Critical for future export sales is the price of conventional oil. Another factor is a probable E.U. ban on imports of U.S. biodiesel, which could make more room for other producers.
"Biodiesel prices revolve around fossil diesel. So if crude goes above $60 a barrel tomorrow, we'll again have a market," said Sanjiv Gupta, managing director of Universal Biofuels.
Universal's 150,000-ton-a-year biodiesel plant in southern India is also in the process of debonding from the export-oriented status, Mr. Gupta said.
"The export market is very weak now because of the sharp fall in diesel prices, this time the local market is significantly better," Mr. Gupta said.
The European Commission will decide by March 12 on whether to levy duties on U.S. biodiesel imports in retaliation for heavy subsidies Washington pays its biodiesel producers, according to Commission proposals seen by Dow Jones Newswires.
"It could be good news for us, at least it'll clear the pricing part," said Natural BioEnergy's Mr. Bhaskar.
Even if the EU imposes duties on imports from the U.S., Indian producers will have compete with other countries eyeing the growing biofuel energy market, said Mr. Gupta.
"Like Argentina, which has subsidies built in their tariff structure," he added.
Selling In India
India is advancing on several fronts to incorporate alternate energy into the mainstream to counter its rising emission levels, but hasn't made much progress with biofuels because of a lack of clear policy.
Its mandatory ethanol-gasoline blending program has been symbolic at best and the government currently doesn't mandate biodiesel blending with fossil diesel.
As a result, selling in India is not an easy job for now, even if the price is right.
"There's no awareness, concern for the environment or even any kind of guidance from the government," said Aditya Agrawal, a director at Emami Group, which is running its 100,000-ton-a-year biodiesel unit in eastern India at less than 10% of installed capacity.
The near-record crude oil prices last year forced India to set an "indicative" target to raise blending of biofuels with gasoline and diesel to 20% by 2017, said an official at the federal ministry of new and renewable energy.
"We were expecting that the biofuel policy will be cleared quickly but then crude fell and the focus went away," said the official, who did not wish to be named.
He said the government wants to ensure that biodiesel to be used in India comes from non-edible sources like jatropha -- a nonfood shrub that grows in arid regions and produces oil-rich seeds.
"India can't afford biodiesel made from edible resources, it's expensive and affects the food supply," he said.
However, jatropha availability is very low for now, so "we're building the plants in advance, to initially run on other feedstock and switch to jatropha when it's available," said Sandeep Chaturvedi, president of Biodiesel Association of India. "But we need a policy before investing millions of dollars."
The country has about 600,000 hectares of land planted with jatropha, which will start producing in about three years, Mr. Chaturvedi said. The seeds produced initially will be used to plant more jatropha, he said.
India has an installed capacity to produce about 1.2 million tons a year of biodiesel, a majority of which was earlier intended for exports, he said.
Indian manufactures, which had to use imported palm oil as a feedstock to export to the U.S. and E.U., are now switching to palm styrene -- a byproduct of the palm oil refining process that is available locally.
However, biodiesel made from palm styrene has a lower freezing point than the one made from palm oil, making it unsuitable for use in the big northern hemisphere markets.
Write to Gurdeep Singh at gurdeep.singh@dowjones.com
NEW DELHI -- Indian biodiesel producers are shedding their "only-for-export" status and looking to local sales, but even so are cutting output and shelving expansion projects due to caution about the market outlook.
Their prospects for foreign, and domestic, sales have been undermined by the collapse in the price of conventional diesel, which is now cheaper than crop-based diesel, by tough and sometimes subsidized competition, and by doubts about the ecological credentials of the fuel.
"We have a long-term goal to expand to 500,000 tons a year. But today there's no investor appetite. We'll have to wait for the market to stabilize," said C.S. Bhaskar, chief executive of Natural BioEnergy, who had to shut his 100,000-ton-a-year biodiesel plant in southern India in October after it could no longer export at a profit to the E.U.
He's been running the plant at 50% capacity since December and now plans to scrap its Indian government export-oriented-unit or EoU status, and focus on the domestic market.
"We will always have the option to export, whenever the market opens up," he said. Critical for future export sales is the price of conventional oil. Another factor is a probable E.U. ban on imports of U.S. biodiesel, which could make more room for other producers.
"Biodiesel prices revolve around fossil diesel. So if crude goes above $60 a barrel tomorrow, we'll again have a market," said Sanjiv Gupta, managing director of Universal Biofuels.
Universal's 150,000-ton-a-year biodiesel plant in southern India is also in the process of debonding from the export-oriented status, Mr. Gupta said.
"The export market is very weak now because of the sharp fall in diesel prices, this time the local market is significantly better," Mr. Gupta said.
The European Commission will decide by March 12 on whether to levy duties on U.S. biodiesel imports in retaliation for heavy subsidies Washington pays its biodiesel producers, according to Commission proposals seen by Dow Jones Newswires.
"It could be good news for us, at least it'll clear the pricing part," said Natural BioEnergy's Mr. Bhaskar.
Even if the EU imposes duties on imports from the U.S., Indian producers will have compete with other countries eyeing the growing biofuel energy market, said Mr. Gupta.
"Like Argentina, which has subsidies built in their tariff structure," he added.
Selling In India
India is advancing on several fronts to incorporate alternate energy into the mainstream to counter its rising emission levels, but hasn't made much progress with biofuels because of a lack of clear policy.
Its mandatory ethanol-gasoline blending program has been symbolic at best and the government currently doesn't mandate biodiesel blending with fossil diesel.
As a result, selling in India is not an easy job for now, even if the price is right.
"There's no awareness, concern for the environment or even any kind of guidance from the government," said Aditya Agrawal, a director at Emami Group, which is running its 100,000-ton-a-year biodiesel unit in eastern India at less than 10% of installed capacity.
The near-record crude oil prices last year forced India to set an "indicative" target to raise blending of biofuels with gasoline and diesel to 20% by 2017, said an official at the federal ministry of new and renewable energy.
"We were expecting that the biofuel policy will be cleared quickly but then crude fell and the focus went away," said the official, who did not wish to be named.
He said the government wants to ensure that biodiesel to be used in India comes from non-edible sources like jatropha -- a nonfood shrub that grows in arid regions and produces oil-rich seeds.
"India can't afford biodiesel made from edible resources, it's expensive and affects the food supply," he said.
However, jatropha availability is very low for now, so "we're building the plants in advance, to initially run on other feedstock and switch to jatropha when it's available," said Sandeep Chaturvedi, president of Biodiesel Association of India. "But we need a policy before investing millions of dollars."
The country has about 600,000 hectares of land planted with jatropha, which will start producing in about three years, Mr. Chaturvedi said. The seeds produced initially will be used to plant more jatropha, he said.
India has an installed capacity to produce about 1.2 million tons a year of biodiesel, a majority of which was earlier intended for exports, he said.
Indian manufactures, which had to use imported palm oil as a feedstock to export to the U.S. and E.U., are now switching to palm styrene -- a byproduct of the palm oil refining process that is available locally.
However, biodiesel made from palm styrene has a lower freezing point than the one made from palm oil, making it unsuitable for use in the big northern hemisphere markets.
Write to Gurdeep Singh at gurdeep.singh@dowjones.com
Eco-towns bill soars to more than £3m before a house is built
The cost of the Government's controversial eco-towns programme has risen to more than £3million before even one home is built, The Daily Telegraph can disclose.
By Christopher Hope, Whitehall Editor Last Updated: 9:18PM GMT 02 Mar 2009
Figures show that the Government has spent £3.1million on proposals to build tens of thousands of environmentally-friendly homes in England.
One third of the cash - £960,700 - was spent on PR and communications alone.
A further £820,000 was spent on local authority assessments and £720,000 on "financial assessments".
The Government also spent nearly £80,000 on developing website about eco-towns.
The news comes after the Government said it was delaying the ending of a consultation on the plans from next week to the end of April.
Gordon Brown originally announced that 10 eco-towns would be built. However those plans have since been scaled back as the scale of the opposition became clear.
Last year protesters were signing up at the rate of 2,000 a day to call on the Prime Minister to halt plans for the new towns which were dubbed "Gordon's ghettoes".
Up to 60,000 protesters have given their signatures to oppose the towns, which were opposed by environmental groups, planning authorities and residents.
Celebrities who opposed the plans included Ben Fogle and Duncan Goodhew, the Olympic gold medallist, Dame Judi Dench and John Nettles, the actor.
Grant Shapps, the Conservatives' housing spokesman, said: "This discredited scheme has cost the tax-payer over £3million at a time when thousands of families are facing repossession."
"This is the latest in a long line of set-backs for Brown's eco-town programme which always seemed to be more about grabbing headlines than building the kind of environmentally-friendly housing that this country needs."
A Communities and Local Government spokesman defended the spending: "This expenditure has ensured the potential eco-town locations undergo a rigorous assessment process.
"[There is an] extensive public consultation before any decisions are made, and demonstrates the transparent approach we have taken throughout this process."
The spokesman defended spending nearly £1million on communications, he said: "The Government has a duty to inform people of initiatives which could impact on them and their communities, and to give them the opportunity to have their say.
"Our spending on communications has been designed to give people the chance to voice their views during two stages of public consultation, including through a series of road shows in all the proposed eco-town locations as well as media and on-line activities."
By Christopher Hope, Whitehall Editor Last Updated: 9:18PM GMT 02 Mar 2009
Figures show that the Government has spent £3.1million on proposals to build tens of thousands of environmentally-friendly homes in England.
One third of the cash - £960,700 - was spent on PR and communications alone.
A further £820,000 was spent on local authority assessments and £720,000 on "financial assessments".
The Government also spent nearly £80,000 on developing website about eco-towns.
The news comes after the Government said it was delaying the ending of a consultation on the plans from next week to the end of April.
Gordon Brown originally announced that 10 eco-towns would be built. However those plans have since been scaled back as the scale of the opposition became clear.
Last year protesters were signing up at the rate of 2,000 a day to call on the Prime Minister to halt plans for the new towns which were dubbed "Gordon's ghettoes".
Up to 60,000 protesters have given their signatures to oppose the towns, which were opposed by environmental groups, planning authorities and residents.
Celebrities who opposed the plans included Ben Fogle and Duncan Goodhew, the Olympic gold medallist, Dame Judi Dench and John Nettles, the actor.
Grant Shapps, the Conservatives' housing spokesman, said: "This discredited scheme has cost the tax-payer over £3million at a time when thousands of families are facing repossession."
"This is the latest in a long line of set-backs for Brown's eco-town programme which always seemed to be more about grabbing headlines than building the kind of environmentally-friendly housing that this country needs."
A Communities and Local Government spokesman defended the spending: "This expenditure has ensured the potential eco-town locations undergo a rigorous assessment process.
"[There is an] extensive public consultation before any decisions are made, and demonstrates the transparent approach we have taken throughout this process."
The spokesman defended spending nearly £1million on communications, he said: "The Government has a duty to inform people of initiatives which could impact on them and their communities, and to give them the opportunity to have their say.
"Our spending on communications has been designed to give people the chance to voice their views during two stages of public consultation, including through a series of road shows in all the proposed eco-town locations as well as media and on-line activities."
TV drama 24 to go carbon neutral
The American TV network Fox has announced that their long-running spy drama 24 is the first carbon neutral production in TV history.
Last Updated: 6:50AM GMT 03 Mar 2009
Kiefer Sutherland, who plays the show's hero Jack Bauer, is due to promote the joys of green living
Fox is following through on a promise made by executives two years ago and are also launching a public service campaign during a two-hour special aired on Monday.
Kiefer Sutherland, who plays the show's hero Jack Bauer, is due to promote the joys of green living and will ask viewers to follow 24's lead in helping to combat global warming.
Over the last few years, the makers of 24 have already cut the show's carbon footprint by 43 per cent. However, in areas where that proved impossible - for example the carbon dioxide emissions released when a car is blown up - producers bought carbon offsets, such as wind-power plans in India.
According to Fox, producers also made on-set upgrades, such as swapping incandescent lighting for compact fluorescent lighting and turning off all electrical equipment when not in use.
"This is a passion project for us at 24, and we're amazed by how much we were able to achieve this past season in terms of conserving energy and reducing carbon emissions," Howard Gordon, the show runner, said.
"But now the really important work begins, which is to inspire our audience to make changes in their own lives."
Other changes on set include using biodiesel to power generators and production vehicles; using renewable power resources (wind, hydroelectric and solar) when purchasing electricity; incorporating fuel-efficient and low-emission hybrid vehicles into the production fleet, which saved 1,300 gallons of gas; and distributing all its scripts, schedules and other memos electronically.
The green impact of 24 is, apparently, the first step in Rupert Murdoch's plans to make News Corporation (Fox's parent company) carbon neutral by 2010.
Last Updated: 6:50AM GMT 03 Mar 2009
Kiefer Sutherland, who plays the show's hero Jack Bauer, is due to promote the joys of green living
Fox is following through on a promise made by executives two years ago and are also launching a public service campaign during a two-hour special aired on Monday.
Kiefer Sutherland, who plays the show's hero Jack Bauer, is due to promote the joys of green living and will ask viewers to follow 24's lead in helping to combat global warming.
Over the last few years, the makers of 24 have already cut the show's carbon footprint by 43 per cent. However, in areas where that proved impossible - for example the carbon dioxide emissions released when a car is blown up - producers bought carbon offsets, such as wind-power plans in India.
According to Fox, producers also made on-set upgrades, such as swapping incandescent lighting for compact fluorescent lighting and turning off all electrical equipment when not in use.
"This is a passion project for us at 24, and we're amazed by how much we were able to achieve this past season in terms of conserving energy and reducing carbon emissions," Howard Gordon, the show runner, said.
"But now the really important work begins, which is to inspire our audience to make changes in their own lives."
Other changes on set include using biodiesel to power generators and production vehicles; using renewable power resources (wind, hydroelectric and solar) when purchasing electricity; incorporating fuel-efficient and low-emission hybrid vehicles into the production fleet, which saved 1,300 gallons of gas; and distributing all its scripts, schedules and other memos electronically.
The green impact of 24 is, apparently, the first step in Rupert Murdoch's plans to make News Corporation (Fox's parent company) carbon neutral by 2010.
New banking rules should reveal emissions from investment, campaigners say
Environmental campaigners concerned that tax payers are potentially bankrolling highly polluting projects
Allegra Stratton, political correspondent
guardian.co.uk, Monday 2 March 2009 13.11 GMT
The government is under pressure to insert environmental criteria into new UK banking regulations as campaigners and opposition politicians call on it to use the state's 70% stake in the Royal Bank of Scotland to force the failed bank to disclose the carbon emissions of its investments.
In the past six months, when RBS received £33bn in consecutive government bail outs, it was also involved in financing loans to coal, oil and gas companies worth nearly £10bn (£9,941m) — over a quarter the amount the bank has received from the tax payers.
In November last year, RBS — along with a group of other banks — refreshed the financing for an existing £6.66bn loan to the German energy company E.ON. Campaigners claim E.ON's plans to build the UK's first new coal-fired power station for 20 years at Kingsnorth in Kent — as well as a reported 17 coal-fired power stations across Europe — will render impossible the UK's binding target of an 80% cut in greenhouse gas emissions by 2050. A Nasa scientist and leading climate change expert, Jim Hansen, recently called coal-fired power stations "factories of death".
The ABN Amro arm of RBS recently helped finance a £1.1bn pipeline to the Alberta Oil Sands region. Between 2004 and 2007 RBS was involved in loans to oil sands company OPTI Canada. The greater energy needed to extract oil from the sands results in three times more greenhouse gas emissions than producing a barrel of conventional oil.
A report last year from Platform, a pressure group, concluded RBS had helped lend more money to the coal industry, in more deals, than any other major UK bank.
The revelations have prompted anger from environmental campaigners, upset that tax payers are potentially bankrolling highly polluting projects, and criticism from the Liberal Democrats who point out a lack of transparency and possible conflicts of interest.
"It's a scandal that the hard-earned pounds of climate conscious tax payers across the country could be being used to bank roll the development of new coal-fired plants," Kevin Smith, the director of Platform, said. He called for greater clarity in the purpose for which banking finance is provided, since it is impossible to tell the extent to which financing supports high or low carbon projects.
The campaign group Climate Rush, which calls RBS the "biggest investor in climate chaos", will protest against the bank's coal investments outside its headquarters on Thursday.
The Liberal Democrats willtoday put down an early day motion (EDM) calling on the government to bring in new legislation to make banks disclose the nature of their carbon liabilities. Their EDM will also demand the government addresses the role banking finance plays in projects "that exacerbate climate change" by inserting into new banking regulation environmental concerns alongside financial ones. The chancellor, Alistair Darling, has asked Lord Turner, chair of both the Financial Services Authority and the Climate Change Committee, the government advisory body, to draw up new city guidelines. He is expected to publish them in mid-March.
The EDM will further call on the government to make RBS publish its "embedded emissions" — those that result from lending to fossil fuel projects rather than only those of its UK operations. This comes at a time when the government will announce its first national carbon budgets alongside the budget in April, putting limits on CO² emissions into legislation.
The Lib Dems are also pushing for legislation that would see banks, pension funds and other private finance investments investing in "unconventional" fossil fuels — such as the highly polluting tar sands extraction — accountable to share holders and the public for their investments.
Opposition politicians also urge the government to encourage investments by RBS in renewable energy. In September last year, RBS was also involved in at least one financing project for renewable energy worth £427m. In 2007, the bank described its investment in renewable energy at being just over £1bn.
RBS has been heavily involved in financing loans to E.ON. Data published in the magazine Project Finance, sourced to the finance analysts Dealogic, shows that over the past three years, RBS was involved in two other loans to E.ON — one worth £33bn in November 2006 and one for £15bn in November 2007. The RBS-involved extension of £6.66bn worth of credit to E.ON in November 2008 was detailed in a company press release.
E.ON has one of three bids in play to win a government competition for funding of the UK's first demonstration of carbon capture and storage (CCS), technology that aims to capture and bury underground damaging greenhouse gases.
The prospect of RBS-backed E.ON winning a contract from the government, which controls RBS, is "dubious", said Lib Dem climate change spokesman Simon Hughes: "The [bid] should be put on hold until independent scrutiny can make sure there is not a conflict of interest or vested interest. The Kingsnorth decision will be controversial enough without this added and dubious complication."
A Treasury spokesman dismissed the suggestion of any conflict of interest. He said: "The government has made clear all its investment in banks will be run on an arm's length basis [by United Kingdom Finance Investments LTD]. There is clear blue water between the government and the investments of the banks. This is just silly."
RBS has, in the past, also been involved in financing companies involved in the two other CCS bids, though these loans were smaller.
Allegra Stratton, political correspondent
guardian.co.uk, Monday 2 March 2009 13.11 GMT
The government is under pressure to insert environmental criteria into new UK banking regulations as campaigners and opposition politicians call on it to use the state's 70% stake in the Royal Bank of Scotland to force the failed bank to disclose the carbon emissions of its investments.
In the past six months, when RBS received £33bn in consecutive government bail outs, it was also involved in financing loans to coal, oil and gas companies worth nearly £10bn (£9,941m) — over a quarter the amount the bank has received from the tax payers.
In November last year, RBS — along with a group of other banks — refreshed the financing for an existing £6.66bn loan to the German energy company E.ON. Campaigners claim E.ON's plans to build the UK's first new coal-fired power station for 20 years at Kingsnorth in Kent — as well as a reported 17 coal-fired power stations across Europe — will render impossible the UK's binding target of an 80% cut in greenhouse gas emissions by 2050. A Nasa scientist and leading climate change expert, Jim Hansen, recently called coal-fired power stations "factories of death".
The ABN Amro arm of RBS recently helped finance a £1.1bn pipeline to the Alberta Oil Sands region. Between 2004 and 2007 RBS was involved in loans to oil sands company OPTI Canada. The greater energy needed to extract oil from the sands results in three times more greenhouse gas emissions than producing a barrel of conventional oil.
A report last year from Platform, a pressure group, concluded RBS had helped lend more money to the coal industry, in more deals, than any other major UK bank.
The revelations have prompted anger from environmental campaigners, upset that tax payers are potentially bankrolling highly polluting projects, and criticism from the Liberal Democrats who point out a lack of transparency and possible conflicts of interest.
"It's a scandal that the hard-earned pounds of climate conscious tax payers across the country could be being used to bank roll the development of new coal-fired plants," Kevin Smith, the director of Platform, said. He called for greater clarity in the purpose for which banking finance is provided, since it is impossible to tell the extent to which financing supports high or low carbon projects.
The campaign group Climate Rush, which calls RBS the "biggest investor in climate chaos", will protest against the bank's coal investments outside its headquarters on Thursday.
The Liberal Democrats willtoday put down an early day motion (EDM) calling on the government to bring in new legislation to make banks disclose the nature of their carbon liabilities. Their EDM will also demand the government addresses the role banking finance plays in projects "that exacerbate climate change" by inserting into new banking regulation environmental concerns alongside financial ones. The chancellor, Alistair Darling, has asked Lord Turner, chair of both the Financial Services Authority and the Climate Change Committee, the government advisory body, to draw up new city guidelines. He is expected to publish them in mid-March.
The EDM will further call on the government to make RBS publish its "embedded emissions" — those that result from lending to fossil fuel projects rather than only those of its UK operations. This comes at a time when the government will announce its first national carbon budgets alongside the budget in April, putting limits on CO² emissions into legislation.
The Lib Dems are also pushing for legislation that would see banks, pension funds and other private finance investments investing in "unconventional" fossil fuels — such as the highly polluting tar sands extraction — accountable to share holders and the public for their investments.
Opposition politicians also urge the government to encourage investments by RBS in renewable energy. In September last year, RBS was also involved in at least one financing project for renewable energy worth £427m. In 2007, the bank described its investment in renewable energy at being just over £1bn.
RBS has been heavily involved in financing loans to E.ON. Data published in the magazine Project Finance, sourced to the finance analysts Dealogic, shows that over the past three years, RBS was involved in two other loans to E.ON — one worth £33bn in November 2006 and one for £15bn in November 2007. The RBS-involved extension of £6.66bn worth of credit to E.ON in November 2008 was detailed in a company press release.
E.ON has one of three bids in play to win a government competition for funding of the UK's first demonstration of carbon capture and storage (CCS), technology that aims to capture and bury underground damaging greenhouse gases.
The prospect of RBS-backed E.ON winning a contract from the government, which controls RBS, is "dubious", said Lib Dem climate change spokesman Simon Hughes: "The [bid] should be put on hold until independent scrutiny can make sure there is not a conflict of interest or vested interest. The Kingsnorth decision will be controversial enough without this added and dubious complication."
A Treasury spokesman dismissed the suggestion of any conflict of interest. He said: "The government has made clear all its investment in banks will be run on an arm's length basis [by United Kingdom Finance Investments LTD]. There is clear blue water between the government and the investments of the banks. This is just silly."
RBS has, in the past, also been involved in financing companies involved in the two other CCS bids, though these loans were smaller.
China plans 59 reservoirs to collect meltwater from its shrinking glaciers
Major project for Xinjiang province amid concerns over future water supply
China is planning to build 59 reservoirs to collect water from its shrinking glaciers as the cost of climate change hits home in the world's most populous country.
The far western province of Xinjiang, home to many of the planet's highest peaks and widest ice fields, will carry out the 10-year engineering project, which aims to catch and store glacier run-off that might otherwise trickle away into the desert.
Behind the measure is a concern that millions of people in the region will run out of water once the glaciers in the Tian, Kunlun and Altai mountains disappear.
Anxiety has risen along with temperatures that are rapidly diminishing the ice fields. The 3,800-metre Urumqi No1 glacier, the first to be measured in China, has lost more than 20% of its volume since 1962, according to the Cold and Arid Regions Environmental and Engineering Research Institute (Careeri) in Lanzhou.
To deal with the consequences, Xinjiang will set aside 200m yuan (£20m) for each of the next three years. In the first phase, 29 reservoirs will be built with a combined capacity of 21.8 billion cubic metres of water, according to the Xinhua news agency.
Wang Shijiang, director of Xinjiang's water resource department, said the mountain reservoir system was designed to "intercept" meltwater, which has increased in volume over the past 20 years as a result of global warming.
Xinjiang is particularly dependent on a steady supply of meltwater from glaciers, which act as solid reservoirs that store precipitation in the winter and release it in the summer.
Few city residents understand the problem because in recent years water supplies have surged thanks to the extra meltwater and increased rainfall. The excess supply has been used to water golf courses and make artificial snow for a ski slope in semi-desert Urumqi. But scientists say the glut is unsustainable because it comes from the release of water that has built up over thousands of years.
"At the moment there is plenty of water in the big cities. But it is hard to say how long it will last," said He Yuanqing, a glaciologist at Careeri. "On one hand, global warming is accelerating the melt. But on the other, it is increasing rainfall, so we need a way to store the extra water."
It is unclear, however, how long the water can be stored without replenishment. Experts have previously called for the reservoirs to be built underground so that the water does not evaporate in the summer, when Xinjiang has the highest average temperatures in China.
Overexploitation of river systems and oases has exacerbated the problem. The volume of water in the once vast Aibi lake in Xinjiang has decreased by two-thirds over the past 50 years, the Beijing News reported today.
In terms of glacier melt, the worst affected area in China is the Tibetan plateau, often described as "the roof of the world". Last month, Chinese scientists warned that glaciers on the plateau had lost 989 million cubic metres over the past 40 years and were continuing to melt at a "worrying speed". They added that ice fields had shrunk by 196 sq kilometres, equivalent to a quarter of New York city.
China is planning to build 59 reservoirs to collect water from its shrinking glaciers as the cost of climate change hits home in the world's most populous country.
The far western province of Xinjiang, home to many of the planet's highest peaks and widest ice fields, will carry out the 10-year engineering project, which aims to catch and store glacier run-off that might otherwise trickle away into the desert.
Behind the measure is a concern that millions of people in the region will run out of water once the glaciers in the Tian, Kunlun and Altai mountains disappear.
Anxiety has risen along with temperatures that are rapidly diminishing the ice fields. The 3,800-metre Urumqi No1 glacier, the first to be measured in China, has lost more than 20% of its volume since 1962, according to the Cold and Arid Regions Environmental and Engineering Research Institute (Careeri) in Lanzhou.
To deal with the consequences, Xinjiang will set aside 200m yuan (£20m) for each of the next three years. In the first phase, 29 reservoirs will be built with a combined capacity of 21.8 billion cubic metres of water, according to the Xinhua news agency.
Wang Shijiang, director of Xinjiang's water resource department, said the mountain reservoir system was designed to "intercept" meltwater, which has increased in volume over the past 20 years as a result of global warming.
Xinjiang is particularly dependent on a steady supply of meltwater from glaciers, which act as solid reservoirs that store precipitation in the winter and release it in the summer.
Few city residents understand the problem because in recent years water supplies have surged thanks to the extra meltwater and increased rainfall. The excess supply has been used to water golf courses and make artificial snow for a ski slope in semi-desert Urumqi. But scientists say the glut is unsustainable because it comes from the release of water that has built up over thousands of years.
"At the moment there is plenty of water in the big cities. But it is hard to say how long it will last," said He Yuanqing, a glaciologist at Careeri. "On one hand, global warming is accelerating the melt. But on the other, it is increasing rainfall, so we need a way to store the extra water."
It is unclear, however, how long the water can be stored without replenishment. Experts have previously called for the reservoirs to be built underground so that the water does not evaporate in the summer, when Xinjiang has the highest average temperatures in China.
Overexploitation of river systems and oases has exacerbated the problem. The volume of water in the once vast Aibi lake in Xinjiang has decreased by two-thirds over the past 50 years, the Beijing News reported today.
In terms of glacier melt, the worst affected area in China is the Tibetan plateau, often described as "the roof of the world". Last month, Chinese scientists warned that glaciers on the plateau had lost 989 million cubic metres over the past 40 years and were continuing to melt at a "worrying speed". They added that ice fields had shrunk by 196 sq kilometres, equivalent to a quarter of New York city.
Obama’s chance to lead the green recovery
By Joseph Stiglitz and Nicholas Stern
Published: March 2 2009 19:16
We face two crises: a deep global financial crisis, caused by inadequate management of risk in the financial sector; and an even deeper climate crisis, the effects of which may seem more distant but will be determined by the actions we take now.
The scale of risk from climate change is altogether of a different and greater magnitude, as are the consequences of mismanaging or ignoring it. The US, in particular, has a window of opportunity to act on the financial crisis and, at the same time, lay the foundations for a new wave of growth based on the technologies for a low-carbon economy.
President Barack Obama, in his speech to Congress and budget last week, explained that we need to address both of these challenges, and outlined a broad approach. US leadership could generate a powerful response from across the world, making possible an agreement at the United Nations climate change conference in Copenhagen in December on a scale necessary to manage the risks involved.
We will eventually emerge from the financial crisis, although mistakes in management can affect its depth and duration. However, mistakes in managing the risks of the climate crisis may be irreversible. As noted in Making Globalization Work*, if we had a thousand planets we might continue with the reckless experiment on which we are embarked, and if the likely disaster occurred we could move on to another. Unfortunately we do not have that luxury: we have only one planet.
The financial crisis originated from the housing market bubble and was preceded by the dotcom boom. We cannot replace these with yet another bubble. The investments necessary to convert our society to a low-carbon economy – investments that can change the way we live and work – would drive growth over the next two or three decades. They would ensure that growth, with accompanying improvements in standards of living, was sustainable. The path that we have been on is not.
The economic crisis will leave the US and other economies greatly weakened and it will be imperative to increase efficiency. One area in which there is ample room for improvement is in the energy efficiency of businesses, consumers and the government.
According to a recent paper by the Peterson Institute, spending $10bn (€7.9bn, £7.1bn) to insulate US homes and federal buildings could create and sustain up to 100,000 jobs between 2009 and 2011, while saving the economy from $1.4bn to $3.1bn a year between 2012 and 2020.
This type of investment and those in green technology and infrastructure would not only provide a short-term stimulus but also improve the US competitive position. As the world moves to a low-carbon economy, there will be a competitive advantage for those who embrace these technologies.
Private investments are driven by market signals. These signals are distorted because we have been pricing one of the world’s scarcest resources – a “good” atmosphere; or the societal costs of emissions, which lead to a “bad” atmosphere – at zero. Not surprisingly, this has led to inefficient outcomes, with emissions levels too high and too little effort devoted to energy conservation and research.
Providing a strong, stable carbon price is the single policy action that is likely to have the biggest effect in improving economic efficiency and tackling the climate crisis. Clarity on policy and prices is all the more important now, with companies facing such uncertainty because of the financial crisis: the two risks compound each other, damping investment. We may not be able fully to resolve the risks of the financial crisis quickly; but we can take actions now that will markedly reduce uncertainties about future carbon policies and prices.
As creative entrepreneurs turn their minds to the challenges posed by a low-carbon economy, the excitement and drive of innovation is evident. This can be the spur to real growth that has so long been missing. The problems of global warming cannot be attacked without the participation of all countries. The world has been waiting for the US: there is now reason to believe that it is ready to lead.
Joseph Stiglitz, awarded the Nobel Prize in economics in 2001, is the author of Making Globalization Work*. Lord Stern is the IG Patel professor and chair of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics. They are attending the US Climate Action: a Global Economic Perspective symposium in Washington this Tuesday
Copyright The Financial Times Limited 2009
Published: March 2 2009 19:16
We face two crises: a deep global financial crisis, caused by inadequate management of risk in the financial sector; and an even deeper climate crisis, the effects of which may seem more distant but will be determined by the actions we take now.
The scale of risk from climate change is altogether of a different and greater magnitude, as are the consequences of mismanaging or ignoring it. The US, in particular, has a window of opportunity to act on the financial crisis and, at the same time, lay the foundations for a new wave of growth based on the technologies for a low-carbon economy.
President Barack Obama, in his speech to Congress and budget last week, explained that we need to address both of these challenges, and outlined a broad approach. US leadership could generate a powerful response from across the world, making possible an agreement at the United Nations climate change conference in Copenhagen in December on a scale necessary to manage the risks involved.
We will eventually emerge from the financial crisis, although mistakes in management can affect its depth and duration. However, mistakes in managing the risks of the climate crisis may be irreversible. As noted in Making Globalization Work*, if we had a thousand planets we might continue with the reckless experiment on which we are embarked, and if the likely disaster occurred we could move on to another. Unfortunately we do not have that luxury: we have only one planet.
The financial crisis originated from the housing market bubble and was preceded by the dotcom boom. We cannot replace these with yet another bubble. The investments necessary to convert our society to a low-carbon economy – investments that can change the way we live and work – would drive growth over the next two or three decades. They would ensure that growth, with accompanying improvements in standards of living, was sustainable. The path that we have been on is not.
The economic crisis will leave the US and other economies greatly weakened and it will be imperative to increase efficiency. One area in which there is ample room for improvement is in the energy efficiency of businesses, consumers and the government.
According to a recent paper by the Peterson Institute, spending $10bn (€7.9bn, £7.1bn) to insulate US homes and federal buildings could create and sustain up to 100,000 jobs between 2009 and 2011, while saving the economy from $1.4bn to $3.1bn a year between 2012 and 2020.
This type of investment and those in green technology and infrastructure would not only provide a short-term stimulus but also improve the US competitive position. As the world moves to a low-carbon economy, there will be a competitive advantage for those who embrace these technologies.
Private investments are driven by market signals. These signals are distorted because we have been pricing one of the world’s scarcest resources – a “good” atmosphere; or the societal costs of emissions, which lead to a “bad” atmosphere – at zero. Not surprisingly, this has led to inefficient outcomes, with emissions levels too high and too little effort devoted to energy conservation and research.
Providing a strong, stable carbon price is the single policy action that is likely to have the biggest effect in improving economic efficiency and tackling the climate crisis. Clarity on policy and prices is all the more important now, with companies facing such uncertainty because of the financial crisis: the two risks compound each other, damping investment. We may not be able fully to resolve the risks of the financial crisis quickly; but we can take actions now that will markedly reduce uncertainties about future carbon policies and prices.
As creative entrepreneurs turn their minds to the challenges posed by a low-carbon economy, the excitement and drive of innovation is evident. This can be the spur to real growth that has so long been missing. The problems of global warming cannot be attacked without the participation of all countries. The world has been waiting for the US: there is now reason to believe that it is ready to lead.
Joseph Stiglitz, awarded the Nobel Prize in economics in 2001, is the author of Making Globalization Work*. Lord Stern is the IG Patel professor and chair of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics. They are attending the US Climate Action: a Global Economic Perspective symposium in Washington this Tuesday
Copyright The Financial Times Limited 2009
Hundreds Rally for Legislation on Climate Change
Associated Press
WASHINGTON -- Hundreds of demonstrators are urging Congress to pass legislation to reduce greenhouse gases, and they're using the Capitol power plant as a symbol of the problem.
Despite attempts by lawmakers to clean up the power plant in southeast Washington, it still burns coal and accounts for a third of the legislative branch's greenhouse gas emissions.
Monday's rally on Capitol Hill was being followed by a march to the power plant, where some demonstrators planned to block entrances and get arrested.
The protest on energy and climate comes as Washington digs out from its largest snowfall of the season. Organizers note that climate change causes more extreme weather, and they say the issue is important enough that people are willing to brave the cold.
Copyright © 2009 Associated Press
WASHINGTON -- Hundreds of demonstrators are urging Congress to pass legislation to reduce greenhouse gases, and they're using the Capitol power plant as a symbol of the problem.
Despite attempts by lawmakers to clean up the power plant in southeast Washington, it still burns coal and accounts for a third of the legislative branch's greenhouse gas emissions.
Monday's rally on Capitol Hill was being followed by a march to the power plant, where some demonstrators planned to block entrances and get arrested.
The protest on energy and climate comes as Washington digs out from its largest snowfall of the season. Organizers note that climate change causes more extreme weather, and they say the issue is important enough that people are willing to brave the cold.
Copyright © 2009 Associated Press
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