China tries to throw off image as a global climate criminal with its aims to become the future leader in a low-carbon world
Jonathan Watts
guardian.co.uk, Wednesday 10 June 2009 14.34 BST
A game-changing moment could be upon us. In recent years, the world has grown used to condemning China as a climate criminal. But over the next few weeks and months, don't be surprised if you hear the same nation being hailed as the planet's first green superpower.
The State Council, China's cabinet, will soon release the details of a staggeringly large "new energy" programme that could propel the world's biggest greenhouse gas emitter past Europe and the US into a global leader in renewable energy and low-carbon technology.
This is no short-term economic boost or sop for climate change negotiations; it is a long-term investment aimed at making China a dominant force in the global low-carbon economy for decades to come. Power plays do not come much bigger.
The size of the energy stimulus has not yet been revealed, but reports in the domestic media and from foreign diplomats suggest between 1.4 trillion (US$200 bn) and 4.5 trillion yuan (US$600bn) will be invested over the next ten years in nuclear power plants, solar and wind farms, hydroelectric dams, "green transport", "clean coal" and super efficient electric grids.
The consequences will be staggering. If the bigger figure proves correct, China will be spending the equivalent of its 2009 military budget on "new energy" for each of the next ten years. Even the smaller figure would mean that China, which represents just 6 per cent of the global economy, would exceed the amount the entire world invested on new power generating capacity last year, including fossil fuels.
China already makes most of the world's solar panels and wind turbines. Its carmakers, such as BYD, are pushing ahead faster than established Japanese and American rivals to mass produce electric vehicles. Its carbon capture technology and high-efficiency "ultrasupercritical" coal plants are close to the global cutting edge. With the new package, the government will commit itself to developing domestic markets for these "sunrise" industries.
The speed at which the country can move has already been shown in the wind sector, where installed capacity has been doubling every year. According to Changhua Wu, director of the Climate Group's China operations, the pace will be quicker for solar. "They are learning from best practice. It took 15 years to do it in the wind sector. They want to go more quickly now."
The government's targets for wind power have already risen threefold, solar is likely to go up two to fourfold and nuclear sixfold. Overall, China will raise its target for renewables from 15 per cent of total energy by 2020, possibly even surpassing Europe's goal of 20 per cent by that date. By that time, China should also have a super high voltage grid.
If a substantial amount of the new package goes on renewables and efficiency, Julian Wong, an energy analyst at the Center for American Progress in Washington DC, says the potential is enormous.
He says: "If those expectations are fulfilled, China could emerge as the unquestioned global leader in clean energy production, significantly increasing its chances to wean [itself] off coal, and at the same time ushering in an era of sustainable economic growth by exporting these clean-energy technologies to the world."
This is not being done because of international obligations, but as an investment in national security. Renewable energy eases China's dependence on foreign fuel supplies, which are a growing concern. In an age of soft power, asymmetric warfare and carbon anxiety, an investment in solar and wind energy will help the country to stake a claim to the moral high ground.
Todd Stern, the top climate change envoy for President Barack Obama, recently warned that the US could fall behind.
"We need to recognise that if we aren't careful, we may spend the next few years chasing China to do more, but then spend all the years after that chasing them," he said before heading to Beijing for talks with his Chinese counterparts this week.
The US team is pressing China to do more in terms of slowing the growth in emissions. They are right. Regardless of the massive "new energy" investment, the country will remain dependent on coal and pump out more greenhouse gas than other nations for decades to come. True to its ability to produce superlatives and contradictions, China is likely to be both a black and a green superpower at the same time.
But the new energy plans may change the perceptions and parameters of the climate debate. While a proper assesment must wait until the details are released, the stimulus package ought to force Europe and the US to be more ambitious. The world might finally start to see a race to the top rather than the bottom.
Thursday, 11 June 2009
US wind farms face lack of fuel
Suzanne Goldenberg, US environment correspondent
guardian.co.uk, Wednesday 10 June 2009 19.59 BST
The great gusting winds of the Midwest may be dying, and with them hope for America's most promising source of green energy, according to a new report.
A study to be published in August in the Journal of Geophysical Research suggests average and peak winds may have been slowing across the Midwest and eastern states since 1973. The findings are preliminary, but measurements by wind towers raise the possibility of yet another side effect of global warming.
"We noted some periods in the past ... where there was a pretty substantial decrease in wind speed for 12 consecutive months," Eugene Takle of Iowa State University and one of the authors, told the Guardian. "We suspect it's some large scale influence we don't yet understand."
Areas of the Midwest have seen a 10% drop in wind speed over the decade. Some places have seen a jump in days where there was none at all. Takle said climate modelling suggested a further 10% dip may occur over the next 40 years. "Generally we expect there'll probably be a decline in speeds due to climate change."
The US is the world's largest producer of wind power; investment hit $17bn last year, and turbines are now a common sight. The American Wind Energy Association had no immediate comment, but a 10% fall in peak winds could translate into a 27% cut in energy, Takle said.
Gavin Schmidt, a climate scientist at Nasa, told the Guardian: "It's very preliminary. My feeling is that it's way too premature to be talking about the impact this makes."
guardian.co.uk, Wednesday 10 June 2009 19.59 BST
The great gusting winds of the Midwest may be dying, and with them hope for America's most promising source of green energy, according to a new report.
A study to be published in August in the Journal of Geophysical Research suggests average and peak winds may have been slowing across the Midwest and eastern states since 1973. The findings are preliminary, but measurements by wind towers raise the possibility of yet another side effect of global warming.
"We noted some periods in the past ... where there was a pretty substantial decrease in wind speed for 12 consecutive months," Eugene Takle of Iowa State University and one of the authors, told the Guardian. "We suspect it's some large scale influence we don't yet understand."
Areas of the Midwest have seen a 10% drop in wind speed over the decade. Some places have seen a jump in days where there was none at all. Takle said climate modelling suggested a further 10% dip may occur over the next 40 years. "Generally we expect there'll probably be a decline in speeds due to climate change."
The US is the world's largest producer of wind power; investment hit $17bn last year, and turbines are now a common sight. The American Wind Energy Association had no immediate comment, but a 10% fall in peak winds could translate into a 27% cut in energy, Takle said.
Gavin Schmidt, a climate scientist at Nasa, told the Guardian: "It's very preliminary. My feeling is that it's way too premature to be talking about the impact this makes."
Korea Hydro sees high demand for debt sale
By Song Jung-a in Seoul
Published: June 10 2009 18:33
Korea Hydro & Nuclear Power is selling up to $1bn of US dollar bonds in a deal that marks the country’s biggest corporate debt issue this year, people close to the deal said on Wednesday.
The state-run company has cut its guidance for the five-year debt’s yield to 362.5-375 basis points over US Treasuries. Korea Hydro, the unit of electricity provider Korea Electric Power Corp, offered about 400bp over US Treasuries this week.
The tighter guidance came as Korea Hydro attracted more than $8bn in orders for the debt sale.
Barclays Capital, Citigroup, Deutsche Bank and Goldman Sachs are arranging the deal and KDB is an additional co-lead manager.
Bankers expect more debt issues by state-run Korean companies in the coming weeks. State-run Korea National Oil Corp might issue dollar bonds as it is considering a takeover or asset deal with Addax Petroleum, an oil exploration and production group. Korea Gas is also thought to be planning a $500m dollar bond issue in June.
South Korean companies are tapping international debt markets in record numbers amid growing investor appetite for dollar-denominated issues from Asia’s fourth-largest economy. According to Dealogic, a record $12.8bn has been raised by Korean companies through 35 dollar-denominated bond issues this year.
“Korean issues are leading the way in re-opening the Asian credit market with investors from the US, Europe and Asia, whose risk appetite is returning on the back of successful transactions,” said John Kim, head of Korea Investment Banking at Goldman Sachs.
“In conjunction with the wider global market sentiment, there is a clear improvement of confidence in the Korean economy and its issuers.”
Government officials are becoming increasingly optimistic about the economic outlook after the Korean economy grew 0.1 per cent in the first quarter on a sequential basis.
A recovery in the Korean won, one of the best performing Asian currencies against the dollar this year, has soothed fears about overseas borrowings by Korean companies.
Korean financial companies are also rushing to refinance their existing debt, encouraged by improving market conditions.
Woori Bank plans to offer subordinated debt this week in exchange for $400m of notes that it did not redeem in March due to “adverse” market conditions.
The bank will offer 7.63 per cent notes maturing in April 2015.
Copyright The Financial Times Limited 2009
Published: June 10 2009 18:33
Korea Hydro & Nuclear Power is selling up to $1bn of US dollar bonds in a deal that marks the country’s biggest corporate debt issue this year, people close to the deal said on Wednesday.
The state-run company has cut its guidance for the five-year debt’s yield to 362.5-375 basis points over US Treasuries. Korea Hydro, the unit of electricity provider Korea Electric Power Corp, offered about 400bp over US Treasuries this week.
The tighter guidance came as Korea Hydro attracted more than $8bn in orders for the debt sale.
Barclays Capital, Citigroup, Deutsche Bank and Goldman Sachs are arranging the deal and KDB is an additional co-lead manager.
Bankers expect more debt issues by state-run Korean companies in the coming weeks. State-run Korea National Oil Corp might issue dollar bonds as it is considering a takeover or asset deal with Addax Petroleum, an oil exploration and production group. Korea Gas is also thought to be planning a $500m dollar bond issue in June.
South Korean companies are tapping international debt markets in record numbers amid growing investor appetite for dollar-denominated issues from Asia’s fourth-largest economy. According to Dealogic, a record $12.8bn has been raised by Korean companies through 35 dollar-denominated bond issues this year.
“Korean issues are leading the way in re-opening the Asian credit market with investors from the US, Europe and Asia, whose risk appetite is returning on the back of successful transactions,” said John Kim, head of Korea Investment Banking at Goldman Sachs.
“In conjunction with the wider global market sentiment, there is a clear improvement of confidence in the Korean economy and its issuers.”
Government officials are becoming increasingly optimistic about the economic outlook after the Korean economy grew 0.1 per cent in the first quarter on a sequential basis.
A recovery in the Korean won, one of the best performing Asian currencies against the dollar this year, has soothed fears about overseas borrowings by Korean companies.
Korean financial companies are also rushing to refinance their existing debt, encouraged by improving market conditions.
Woori Bank plans to offer subordinated debt this week in exchange for $400m of notes that it did not redeem in March due to “adverse” market conditions.
The bank will offer 7.63 per cent notes maturing in April 2015.
Copyright The Financial Times Limited 2009
Reprieve for Magnox plant
By Andrew Bounds
Published: June 11 2009 03:00
A second ageing Magnox nuclear plant has had its life extended, preserving over 1,000 jobs and easing fears of looming electricity shortages.
Magnox North, operator of Wylfa power station on Anglesey, has been granted approval to continue generating electricity until at least December 2010, past its planned closure date of March 2010.
Last year the operator also received approval to prolong generation at Oldbury in Gloucestershire.
Andrew Bounds
Copyright The Financial Times Limited 2009
Published: June 11 2009 03:00
A second ageing Magnox nuclear plant has had its life extended, preserving over 1,000 jobs and easing fears of looming electricity shortages.
Magnox North, operator of Wylfa power station on Anglesey, has been granted approval to continue generating electricity until at least December 2010, past its planned closure date of March 2010.
Last year the operator also received approval to prolong generation at Oldbury in Gloucestershire.
Andrew Bounds
Copyright The Financial Times Limited 2009
Zapatero's green credentials come under nuclear stress
By Paul Betts
Published: June 11 2009 03:00
From the very beginning, José Luis RodrÃguez Zapatero has been a diehard supporter of renewable energy such as wind and solar power and an opponent of the nuclear alternative. Under the stewardship of Spain's greener than green socialist prime minister, the country has become one of Europe's leading producers of electricity from wind farms along with Germany and Denmark. These days, wind power accounts for about 15 per cent of Spanish electricity consumption.
Mr Zapatero has also said he planned to shut down eight existing nuclear reactors when they reached the end of their natural life. He is about to have his first opportunity to confirm his anti-nuclear convictions with the country's oldest nuclear plant of Garona in northern Spain coming to the end of its 40-year lifespan.
But the prime minister is having second thoughts. Although the ultimate decision to close down Garona will be a political one, the country's nuclear security council has recommended that the plant should be kept going for another 10 years as long as its systems are updated and modernised. The operator of the facility - a joint venture between Iberdrola and Endesa - is also keen for an extension that would avoid it cutting some 1,000 jobs and shutting down a cost-efficient plant with a good safety record that produces about 1.35 per cent of all Spanish electricity. Spain depends on nuclear energy for about 20 per cent of its electricity production.
Opinion polls suggest that the Spanish public is beginning to warm towards nuclear, even though the majority is still either opposed or indifferent. Apart from Germany, which is still committed to shutting down its nuclear plants when they reach the end of their lifespan, other European countries are increasingly embracing the nuclear option. This is not only the case of the UK, but also of Italy.
Spain, like everybody else, is also under pressure to reduce its carbon emissions to comply with the Kyoto and European energy targets as well as reduce its costly imports of oil and gas. To this end, it has stimulated the development of wind power via generous state price support mechanisms, but there is a limit to how quickly and how much such renewable energy sources can replace the shortfall if the nuclear option was scrapped entirely.
For all these reasons, there is a convincing case for Mr Zapatero to dilute his green ideology and anti-nuclear convictions and adopt a more pragmatic approach to the issue
In the case of Mr Zapatero, there is an even more compelling political reason for such a compromise. His own centre-left party is split on the issue. After suffering badly in the recent European elections, Mr Zapatero can ill afford a damaging fracture in his own party over this issue.
All this suggests there will be a compromise. Mr Zapatero will probably agree to extend the life of the old Garona nuclear plant, but by only five years. This intermediate solution could be an expedient way of protecting his green virginity.
Low-profile rescue
A quiet changing of the guard took place in Milan this week as Matteo Arpe, the former chief executive of Capitalia, was appointed chairman of Banca Profilo, the listed private bank his Sator investment group stepped in to rescue in February.
Sator's timely intervention allowed the Bank of Italy to maintain its clean sheet during the financial crisis with no bank having gone belly-up in Italy to date. In more "sophisticated" countries such as the UK, bank failures have been all too frequent and no less costly.
Indeed the authorities in Italy, often criticised for their sclerotic decision- making and lack of communication among themselves, have on this occasion combined smoothly to ensure a solution that has protected clients and recapitalised the bank while also injecting a new and respected management team to boot.
Sator is apparently the first private equity player in Europe to be allowed by national authorities to rescue a regulated bank. While other funds have picked up distressed institutions, they did so after they had crashed. In Profilo's case, Sator stepped in before its impending failure became public. This is to the credit of all those involved and to their low key but effective approach. Hardly, it has to be said, the norm in Italy.
The handsome paper return that Sator has reaped since its emergence as Profilo's saviour will further burnish Mr Arpe's reputation for astuteness. The fact that taxpayers' pockets remain unpicked and minority shareholders have benefited from an impressive rally in the shares also makes this a doubly rare event in the Italian context - a deal in which those who normally lose out have quietly emerged winners.
european.view@ft.com
Copyright The Financial Times Limited 2009
Published: June 11 2009 03:00
From the very beginning, José Luis RodrÃguez Zapatero has been a diehard supporter of renewable energy such as wind and solar power and an opponent of the nuclear alternative. Under the stewardship of Spain's greener than green socialist prime minister, the country has become one of Europe's leading producers of electricity from wind farms along with Germany and Denmark. These days, wind power accounts for about 15 per cent of Spanish electricity consumption.
Mr Zapatero has also said he planned to shut down eight existing nuclear reactors when they reached the end of their natural life. He is about to have his first opportunity to confirm his anti-nuclear convictions with the country's oldest nuclear plant of Garona in northern Spain coming to the end of its 40-year lifespan.
But the prime minister is having second thoughts. Although the ultimate decision to close down Garona will be a political one, the country's nuclear security council has recommended that the plant should be kept going for another 10 years as long as its systems are updated and modernised. The operator of the facility - a joint venture between Iberdrola and Endesa - is also keen for an extension that would avoid it cutting some 1,000 jobs and shutting down a cost-efficient plant with a good safety record that produces about 1.35 per cent of all Spanish electricity. Spain depends on nuclear energy for about 20 per cent of its electricity production.
Opinion polls suggest that the Spanish public is beginning to warm towards nuclear, even though the majority is still either opposed or indifferent. Apart from Germany, which is still committed to shutting down its nuclear plants when they reach the end of their lifespan, other European countries are increasingly embracing the nuclear option. This is not only the case of the UK, but also of Italy.
Spain, like everybody else, is also under pressure to reduce its carbon emissions to comply with the Kyoto and European energy targets as well as reduce its costly imports of oil and gas. To this end, it has stimulated the development of wind power via generous state price support mechanisms, but there is a limit to how quickly and how much such renewable energy sources can replace the shortfall if the nuclear option was scrapped entirely.
For all these reasons, there is a convincing case for Mr Zapatero to dilute his green ideology and anti-nuclear convictions and adopt a more pragmatic approach to the issue
In the case of Mr Zapatero, there is an even more compelling political reason for such a compromise. His own centre-left party is split on the issue. After suffering badly in the recent European elections, Mr Zapatero can ill afford a damaging fracture in his own party over this issue.
All this suggests there will be a compromise. Mr Zapatero will probably agree to extend the life of the old Garona nuclear plant, but by only five years. This intermediate solution could be an expedient way of protecting his green virginity.
Low-profile rescue
A quiet changing of the guard took place in Milan this week as Matteo Arpe, the former chief executive of Capitalia, was appointed chairman of Banca Profilo, the listed private bank his Sator investment group stepped in to rescue in February.
Sator's timely intervention allowed the Bank of Italy to maintain its clean sheet during the financial crisis with no bank having gone belly-up in Italy to date. In more "sophisticated" countries such as the UK, bank failures have been all too frequent and no less costly.
Indeed the authorities in Italy, often criticised for their sclerotic decision- making and lack of communication among themselves, have on this occasion combined smoothly to ensure a solution that has protected clients and recapitalised the bank while also injecting a new and respected management team to boot.
Sator is apparently the first private equity player in Europe to be allowed by national authorities to rescue a regulated bank. While other funds have picked up distressed institutions, they did so after they had crashed. In Profilo's case, Sator stepped in before its impending failure became public. This is to the credit of all those involved and to their low key but effective approach. Hardly, it has to be said, the norm in Italy.
The handsome paper return that Sator has reaped since its emergence as Profilo's saviour will further burnish Mr Arpe's reputation for astuteness. The fact that taxpayers' pockets remain unpicked and minority shareholders have benefited from an impressive rally in the shares also makes this a doubly rare event in the Italian context - a deal in which those who normally lose out have quietly emerged winners.
european.view@ft.com
Copyright The Financial Times Limited 2009
GM Pulls Plug on Hybrid Model
By JOHN D. STOLL and SHARON TERLEP
General Motors Corp. has pulled the plug the hybrid-electric version of the Chevrolet Malibu sedan for the 2010 model year due to slow sales that has led to a backlog of inventory of the vehicles on dealer lots.
A GM spokesman said the company made the decision because of a "sufficient stock of 2009s," and said starting up production in the near future is "possible, but not likely." The company will continue to make hybrid versions of the Malibu for fleet buyers, but it is uncertain if GM will ever produce the Malibu hybrid for retail consumers ever again.
GM introduced hybrid-electric versions of the Chevrolet Malibu in 2008 in an effort to boost its portfolio of fuel-efficient models. But like many other auto makers offering hybrid versions of their vehicles, the hybrid Malibu has returned disappointing results and Chevy dealers are not ordering them any longer.
"We could care less," said Joe Menegos, sales manager at Ron Baker Chevrolet-Isuzu in National City, Calif. He noted the hybrid Malibu only gets what he described as marginally better fuel economy and said that the price is more expensive.
A base Malibu, carrying a four-cylinder engine, costs about $22,300, and a hybrid version, which uses a battery to help propel the vehicle, is about $4,000 more. Both models achieve 34 miles-per-gallon in highway driving, according to GM.
The Malibu sedan is a key product for GM and was redesigned for 2008 in order to better compete with Japanese competitors, such as the Honda Accord and Toyota Camry. Conventional versions of the Malibu, powered by traditional internal combustion engines, have been well received.
Toyota Motor Corp. is the only large auto maker in the U.S. to have a hot selling hybrid vehicle, the Prius sedan. But with the U.S. market slumping and demand for fuel-efficient vehicles being volatile, Toyota has been forced to offer big incentives -- including 0% financing for 60 month loans and $1,000 rebates -- in order to boost demand.
GM offers several trucks with hybrid engines, and those vehicles also sell in low volumes.
GM will continue making hybrid versions of its trucks, including the Chevrolet Silverado and Cadillac Escalade, in 2010. Hybrid vehicles carry much higher price tags than conventional cars and trucks due to the added cost of battery technology.
GM's decision to sell Saturn to auto retailer Roger Penske will put a further dent in GM's hybrid portfolio because that brand offers two hybrids -- the hybrid Vue crossover and the hybrid Aura sedan -- that will no longer be sold under the GM umbrella.
The GM spokesman said the auto maker continues to develop hybrid technology for future applications. The company plans to launch the Chevrolet Volt extended-range electric car in 2010, but the cost of that sedan is expected to be much than conventional hybrids.
GM, which filed for bankruptcy last week, posts substantial losses on every hybrid Malibu it builds. It has been under pressure in recent years to be more active in the hybrid market in recent years despite the red ink associated with the vehicles.
Honda Motor Co. recently launched the Insight hybrid to compete with Toyota. Nissan Motor Corp. and Ford Motor Corp. have also made forays into the hybrid vehicle market.
Ford recently launched the Fusion sedan hybrid, aimed to go head to head with the Prius and hybrid Malibu.
Write to John D. Stoll at john.stoll@wsj.com and Sharon Terlep at sharon.terlep@dowjones.com
General Motors Corp. has pulled the plug the hybrid-electric version of the Chevrolet Malibu sedan for the 2010 model year due to slow sales that has led to a backlog of inventory of the vehicles on dealer lots.
A GM spokesman said the company made the decision because of a "sufficient stock of 2009s," and said starting up production in the near future is "possible, but not likely." The company will continue to make hybrid versions of the Malibu for fleet buyers, but it is uncertain if GM will ever produce the Malibu hybrid for retail consumers ever again.
GM introduced hybrid-electric versions of the Chevrolet Malibu in 2008 in an effort to boost its portfolio of fuel-efficient models. But like many other auto makers offering hybrid versions of their vehicles, the hybrid Malibu has returned disappointing results and Chevy dealers are not ordering them any longer.
"We could care less," said Joe Menegos, sales manager at Ron Baker Chevrolet-Isuzu in National City, Calif. He noted the hybrid Malibu only gets what he described as marginally better fuel economy and said that the price is more expensive.
A base Malibu, carrying a four-cylinder engine, costs about $22,300, and a hybrid version, which uses a battery to help propel the vehicle, is about $4,000 more. Both models achieve 34 miles-per-gallon in highway driving, according to GM.
The Malibu sedan is a key product for GM and was redesigned for 2008 in order to better compete with Japanese competitors, such as the Honda Accord and Toyota Camry. Conventional versions of the Malibu, powered by traditional internal combustion engines, have been well received.
Toyota Motor Corp. is the only large auto maker in the U.S. to have a hot selling hybrid vehicle, the Prius sedan. But with the U.S. market slumping and demand for fuel-efficient vehicles being volatile, Toyota has been forced to offer big incentives -- including 0% financing for 60 month loans and $1,000 rebates -- in order to boost demand.
GM offers several trucks with hybrid engines, and those vehicles also sell in low volumes.
GM will continue making hybrid versions of its trucks, including the Chevrolet Silverado and Cadillac Escalade, in 2010. Hybrid vehicles carry much higher price tags than conventional cars and trucks due to the added cost of battery technology.
GM's decision to sell Saturn to auto retailer Roger Penske will put a further dent in GM's hybrid portfolio because that brand offers two hybrids -- the hybrid Vue crossover and the hybrid Aura sedan -- that will no longer be sold under the GM umbrella.
The GM spokesman said the auto maker continues to develop hybrid technology for future applications. The company plans to launch the Chevrolet Volt extended-range electric car in 2010, but the cost of that sedan is expected to be much than conventional hybrids.
GM, which filed for bankruptcy last week, posts substantial losses on every hybrid Malibu it builds. It has been under pressure in recent years to be more active in the hybrid market in recent years despite the red ink associated with the vehicles.
Honda Motor Co. recently launched the Insight hybrid to compete with Toyota. Nissan Motor Corp. and Ford Motor Corp. have also made forays into the hybrid vehicle market.
Ford recently launched the Fusion sedan hybrid, aimed to go head to head with the Prius and hybrid Malibu.
Write to John D. Stoll at john.stoll@wsj.com and Sharon Terlep at sharon.terlep@dowjones.com
Winter fuel payments could be taxed 'to help fuel poor'
Times Online
June 10, 2009
Tax on the £400 benefit should be used to help the most vulnerable households, according to a Government committee
Lauren Thompson
The winter fuel payment should be made taxable and stopped altogether for 200,000 pensioners who pay higher-rate tax, a government committee said yesterday.
The measure would save £250 million a year, which could be spent on better-targeted energy efficiency programmes to help the five million households living in fuel poverty, according to the Environment & Rural Affairs Select Committee .
Around 2.9 million pensioners receive winter fuel payments, currently worth £250 for over 60s or £400 for over 80s. However, only 12 per cent of recipients are in fuel poverty – where one tenth or more of income goes on fuel bills.
Michael Jack MP, chairman of the Environment and Rural Affairs Select Committee says: “The Government should instigate an action plan as a matter of urgency to help the millions of UK households who remain in fuel poverty as a result of fuel price rises.
“Taxing the winter fuel payment would fund a larger programme of practical energy saving improvements. This should be aimed in the first instance at the fuel poor, but then also at other vulnerable households, such as the disabled, with unusually high personal energy needs.”
However, consumer groups say that if the fuel payments become means-tested, this will deter millions of pensioners from applying and could leave some of the most vulnerable households worse-off.
Emma Hayes, of Consumer Focus, which campaigns for a fair deal for conusmers, says: ‘Winter fuel payments should remain universal to ensure that the much-needed cash reaches all pensioners who need it.
“However, the payment could be taxed for those on the highest tax-rate, and the funds raised invested in energy efficiency schemes.”
The committee also criticised the Government’s piecemeal approach to reducing fuel poverty, and recommended that the range of current energy efficiency programmes should be consolidated into one comprehensive programme to upgrade all homes, delivered by local authorities.
June 10, 2009
Tax on the £400 benefit should be used to help the most vulnerable households, according to a Government committee
Lauren Thompson
The winter fuel payment should be made taxable and stopped altogether for 200,000 pensioners who pay higher-rate tax, a government committee said yesterday.
The measure would save £250 million a year, which could be spent on better-targeted energy efficiency programmes to help the five million households living in fuel poverty, according to the Environment & Rural Affairs Select Committee .
Around 2.9 million pensioners receive winter fuel payments, currently worth £250 for over 60s or £400 for over 80s. However, only 12 per cent of recipients are in fuel poverty – where one tenth or more of income goes on fuel bills.
Michael Jack MP, chairman of the Environment and Rural Affairs Select Committee says: “The Government should instigate an action plan as a matter of urgency to help the millions of UK households who remain in fuel poverty as a result of fuel price rises.
“Taxing the winter fuel payment would fund a larger programme of practical energy saving improvements. This should be aimed in the first instance at the fuel poor, but then also at other vulnerable households, such as the disabled, with unusually high personal energy needs.”
However, consumer groups say that if the fuel payments become means-tested, this will deter millions of pensioners from applying and could leave some of the most vulnerable households worse-off.
Emma Hayes, of Consumer Focus, which campaigns for a fair deal for conusmers, says: ‘Winter fuel payments should remain universal to ensure that the much-needed cash reaches all pensioners who need it.
“However, the payment could be taxed for those on the highest tax-rate, and the funds raised invested in energy efficiency schemes.”
The committee also criticised the Government’s piecemeal approach to reducing fuel poverty, and recommended that the range of current energy efficiency programmes should be consolidated into one comprehensive programme to upgrade all homes, delivered by local authorities.
Green collar job creation 'outstripped traditional sectors in US'
Report on US job figures up to 2007 also says wind and solar sectors resisting recession better than traditional manufacturing
Suzanne Goldenberg
guardian.co.uk, Wednesday 10 June 2009 17.59 BST
America's emerging clean energy economy produced new jobs at more than twice the rate of more traditional industries in the years leading up to the economic downturn, a new study released today claimed.
The report by the Pew Charitable Trusts provides the first hard evidence of jobs created by the rising demand for environmentally friendly services, and in the new clean energy sectors like wind and solar.
It said such jobs grew at a rate of 9.1% from 1998-2007, easily outstripping job growth in traditional areas of the economy, which was 3.7%.
The study stopped before the economic downturn, which has caused steep job losses in the traditional economy. Some 347,000 Americans were put out of work in May alone.
However, its authors also noted that the rapid growth came at a time when there was little or no federal government support for clean energy – unlike today when Barack Obama has committed to greening the economy.
They also said that wind farms, solar projects, and battery factories had fared better than traditional manufacturing as the job market has contracted.
"This is a sector poised for explosive growth," said Lori Grange, the interim deputy director of Pew. "Our report points to trends that show a very promising future for the green energy economy."
The report helps bolster Obama's claims that his $787 billion economic recovery plan could create millions of new jobs. The package contains about $85 billion in green investment, and the administration has repeatedly touted its efforts at creating new clean energy jobs.
The Pew report said the new jobs were created across 38 states, and not restricted to specific regions.
By 2007, more than 68,200 businesses accounted for about 770,000 green jobs. That is not hugely below the numbers of jobs in fossil-fuel industries, including oil and gas extraction and coal mining, which employed 1.27 million people in 2007, the report said.
California created the most green jobs: 125,390, while Wyoming had the fewest, just 1,419. Pay scales among the new jobs ranged from $21,000 to $111,000 a year, Pew said.
Suzanne Goldenberg
guardian.co.uk, Wednesday 10 June 2009 17.59 BST
America's emerging clean energy economy produced new jobs at more than twice the rate of more traditional industries in the years leading up to the economic downturn, a new study released today claimed.
The report by the Pew Charitable Trusts provides the first hard evidence of jobs created by the rising demand for environmentally friendly services, and in the new clean energy sectors like wind and solar.
It said such jobs grew at a rate of 9.1% from 1998-2007, easily outstripping job growth in traditional areas of the economy, which was 3.7%.
The study stopped before the economic downturn, which has caused steep job losses in the traditional economy. Some 347,000 Americans were put out of work in May alone.
However, its authors also noted that the rapid growth came at a time when there was little or no federal government support for clean energy – unlike today when Barack Obama has committed to greening the economy.
They also said that wind farms, solar projects, and battery factories had fared better than traditional manufacturing as the job market has contracted.
"This is a sector poised for explosive growth," said Lori Grange, the interim deputy director of Pew. "Our report points to trends that show a very promising future for the green energy economy."
The report helps bolster Obama's claims that his $787 billion economic recovery plan could create millions of new jobs. The package contains about $85 billion in green investment, and the administration has repeatedly touted its efforts at creating new clean energy jobs.
The Pew report said the new jobs were created across 38 states, and not restricted to specific regions.
By 2007, more than 68,200 businesses accounted for about 770,000 green jobs. That is not hugely below the numbers of jobs in fossil-fuel industries, including oil and gas extraction and coal mining, which employed 1.27 million people in 2007, the report said.
California created the most green jobs: 125,390, while Wyoming had the fewest, just 1,419. Pay scales among the new jobs ranged from $21,000 to $111,000 a year, Pew said.
Wednesday, 10 June 2009
House Passes 'Cash for Clunkers' Bill
Associated Press
WASHINGTON--The House passed a plan to boost auto sales by providing vouchers of up to $4,500 for consumers who turn in their gas-guzzling cars and trucks for more fuel-efficient vehicles.
The House bill, which passed by 298 votes to 119, is aimed at stimulating car sales during a bleak period for the auto industry and increasing the nation's fleet of cars that get more miles to the gallon.
General Motors Corp. and Chrysler LLC have received billions of dollars in government aid and the entire auto industry has watched car sales plummet during the past year. In May, overall sales were 34% lower than a year ago.
"Our industry has been stuck in neutral and really has not started to move,'' said Larry Kull, president of Marlton, N.J.-based Burns Kull Automotive Group, which includes General Motors, Honda and Toyota dealerships.
President Barack Obama has urged Congress to approve consumer incentives for new car purchases as part of the government's efforts to reorganize General Motors and Chrysler through the bankruptcy courts.
The vehicle scrappage bill has been under negotiations for months as lawmakers try to find a solution that boosts car sales while providing some environmental benefits. Proponents have pointed to similar programs in Europe that have enhanced auto sales.
Analysts said the bill, which has not yet been considered by the Senate, would encourage car shoppers but would not be a panacea for carmakers. The U.S. industry is expected to generate about 9.5 million vehicles sales in 2009, compared to more than 13 million in 2008 and more than 16 million in 2007.
Auto analysts questioned whether it would be enough of an incentive for many consumers burdened by debt or financially stressed by the troubled economy.
Separately, House and Senate appropriators were discussing providing $1 billion to a supplemental war funding bill for the "cash for clunkers'' program, which aims to generate about one million new auto sales. Since the yearlong vehicle program is expected to cost $4 billion, lawmakers would attempt to find the additional money later this year.
Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker.
Owners of sport-utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles.
Rep. Betty Sutton (D., Ohio), the bill's chief sponsor, said the bill showed that "the multiple goals of helping consumers purchase more fuel efficient vehicles, improving our environment and boosting auto sales can be achieved.'' Sen. Debbie Stabenow (D., Mich.), has backed a similar version in the Senate, which has the support of automakers and their unions.
The bill would direct dealers to ensure that the older vehicles are crushed or shredded to get the clunkers off the road. It was intended to help replace older vehicles--built in model year 1984 or later--and would not make financial sense for consumers owning an older car with a trade-in value greater than $3,500 or $4,500.
Copyright © 2009 Associated Press
WASHINGTON--The House passed a plan to boost auto sales by providing vouchers of up to $4,500 for consumers who turn in their gas-guzzling cars and trucks for more fuel-efficient vehicles.
The House bill, which passed by 298 votes to 119, is aimed at stimulating car sales during a bleak period for the auto industry and increasing the nation's fleet of cars that get more miles to the gallon.
General Motors Corp. and Chrysler LLC have received billions of dollars in government aid and the entire auto industry has watched car sales plummet during the past year. In May, overall sales were 34% lower than a year ago.
"Our industry has been stuck in neutral and really has not started to move,'' said Larry Kull, president of Marlton, N.J.-based Burns Kull Automotive Group, which includes General Motors, Honda and Toyota dealerships.
President Barack Obama has urged Congress to approve consumer incentives for new car purchases as part of the government's efforts to reorganize General Motors and Chrysler through the bankruptcy courts.
The vehicle scrappage bill has been under negotiations for months as lawmakers try to find a solution that boosts car sales while providing some environmental benefits. Proponents have pointed to similar programs in Europe that have enhanced auto sales.
Analysts said the bill, which has not yet been considered by the Senate, would encourage car shoppers but would not be a panacea for carmakers. The U.S. industry is expected to generate about 9.5 million vehicles sales in 2009, compared to more than 13 million in 2008 and more than 16 million in 2007.
Auto analysts questioned whether it would be enough of an incentive for many consumers burdened by debt or financially stressed by the troubled economy.
Separately, House and Senate appropriators were discussing providing $1 billion to a supplemental war funding bill for the "cash for clunkers'' program, which aims to generate about one million new auto sales. Since the yearlong vehicle program is expected to cost $4 billion, lawmakers would attempt to find the additional money later this year.
Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle. The miles per gallon figures are listed on the window sticker.
Owners of sport-utility vehicles, pickup trucks or minivans that get 18 mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2 mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5 mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles.
Rep. Betty Sutton (D., Ohio), the bill's chief sponsor, said the bill showed that "the multiple goals of helping consumers purchase more fuel efficient vehicles, improving our environment and boosting auto sales can be achieved.'' Sen. Debbie Stabenow (D., Mich.), has backed a similar version in the Senate, which has the support of automakers and their unions.
The bill would direct dealers to ensure that the older vehicles are crushed or shredded to get the clunkers off the road. It was intended to help replace older vehicles--built in model year 1984 or later--and would not make financial sense for consumers owning an older car with a trade-in value greater than $3,500 or $4,500.
Copyright © 2009 Associated Press
Airlines 'must take initiative' before climate-change talks, warns BA boss
UN's International Civil Aviation Organisation has failed to thrash out an emissions-trading scheme for airlines
Dan Milmo in Kuala Lumpur
guardian.co.uk, Tuesday 9 June 2009 10.54 BST
Leading airlines have warned that they could be punished at the Copenhagen climate change talks this year because the industry has failed to influence environment ministers.
Willie Walsh, chief executive of British Airways, urged airlines to increase their lobbying efforts after delivering a warning about the efforts of the United Nations body charged with representing airlines, the International Civil Aviation Organisation.
ICAO, which is comprised of transport ministers from UN member governments, has failed to thrash out an emissions-trading scheme for airlines and is not due to meet again until October, by which point other groups could have proposed tougher measures for airlines.
Speaking at the annual general meeting of the International Air Transport Association in Kuala Lumpur, Walsh said Iata should take the initiative before it is too late.
"I don't think ICAO has done enough and I don't think they will be able to influence decisions at Copenhagen. That is why it is important for Iata to reach a position," he said.
Walsh also echoed fears among airline executives that carriers will be singled out by politicians because they have not been included in official carbon dioxide reduction targets.
"Getting our voice heard and being represented is critical. We have got to ask ourselves who is representing the airline industry at Copenhagen. We have got to do something to get our voice heard."
Walsh admitted that airlines had made an error by focusing their lobbying efforts on transport ministers and not their colleagues at environment departments.
"We tend to spend more of our time talking to transport ministers than environment ministers," he said. "It's not going to be the transport ministers who will be at Copenhagen. We may have been talking to the wrong audience and we have to turn that around very quickly."
Tony Tyler, chief executive of Hong Kong-based Cathay Pacific, said airlines still had an opportunity to state their case. "We don't want to be faced after Copenhagen with that feeling of 'oh my goodness we should have done something'."
Iata has been pushing ICAO to agree an action plan that would include a global emissions-trading scheme for airlines. However, ICAO's efforts have been stymied by a failure to reach agreement with emerging superpowers such as Brazil, India and China.
Other countries are preparing to fill the policy gap at Copenhagen while Iata stands on the sidelines. The world's poorest countries are pushing for a long-haul flight tax that would contribute $10bn (£6.2bn) towards fighting global warming and could be agreed at Copenhagen, where governments will thrash out a sequel to the Kyoto climate change agreement.
International aviation and shipping were carved out from Kyoto on the proviso that ICAO and the International Maritime Organisation came up with their own climate-change schemes – which both groups have failed to do after a decade of talks.
Dan Milmo in Kuala Lumpur
guardian.co.uk, Tuesday 9 June 2009 10.54 BST
Leading airlines have warned that they could be punished at the Copenhagen climate change talks this year because the industry has failed to influence environment ministers.
Willie Walsh, chief executive of British Airways, urged airlines to increase their lobbying efforts after delivering a warning about the efforts of the United Nations body charged with representing airlines, the International Civil Aviation Organisation.
ICAO, which is comprised of transport ministers from UN member governments, has failed to thrash out an emissions-trading scheme for airlines and is not due to meet again until October, by which point other groups could have proposed tougher measures for airlines.
Speaking at the annual general meeting of the International Air Transport Association in Kuala Lumpur, Walsh said Iata should take the initiative before it is too late.
"I don't think ICAO has done enough and I don't think they will be able to influence decisions at Copenhagen. That is why it is important for Iata to reach a position," he said.
Walsh also echoed fears among airline executives that carriers will be singled out by politicians because they have not been included in official carbon dioxide reduction targets.
"Getting our voice heard and being represented is critical. We have got to ask ourselves who is representing the airline industry at Copenhagen. We have got to do something to get our voice heard."
Walsh admitted that airlines had made an error by focusing their lobbying efforts on transport ministers and not their colleagues at environment departments.
"We tend to spend more of our time talking to transport ministers than environment ministers," he said. "It's not going to be the transport ministers who will be at Copenhagen. We may have been talking to the wrong audience and we have to turn that around very quickly."
Tony Tyler, chief executive of Hong Kong-based Cathay Pacific, said airlines still had an opportunity to state their case. "We don't want to be faced after Copenhagen with that feeling of 'oh my goodness we should have done something'."
Iata has been pushing ICAO to agree an action plan that would include a global emissions-trading scheme for airlines. However, ICAO's efforts have been stymied by a failure to reach agreement with emerging superpowers such as Brazil, India and China.
Other countries are preparing to fill the policy gap at Copenhagen while Iata stands on the sidelines. The world's poorest countries are pushing for a long-haul flight tax that would contribute $10bn (£6.2bn) towards fighting global warming and could be agreed at Copenhagen, where governments will thrash out a sequel to the Kyoto climate change agreement.
International aviation and shipping were carved out from Kyoto on the proviso that ICAO and the International Maritime Organisation came up with their own climate-change schemes – which both groups have failed to do after a decade of talks.
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