Jonathon Porritt steps down from Blair's sustainability commission with UK still second-worst greenhouse gas emitter in Europe
By Jonathan Owen
Sunday, 28 June 2009
The embarrassing report comes just days after Gordon Brown's proposals for a £60bn international fund to help poorer countries deal with climate change were announced
When it comes to environmental sustainability, the prognosis is grim: Britain is "winning battles, but still losing the war".
The UK is failing to hit a raft of key targets on sustainable living, according to a new report to be published this week. In its critical analysis, released on Wednesday, the Sustainable Development Commission (SDC) warns that progress on a number of green targets has been "undermined by stasis or even reversion". Jonathon Porritt, outgoing SDC chair and one-time "green guru" to Tony Blair, claims sustainability plays second fiddle to the drive for consumption-driven economic growth. "The thing that stands out is the very limited progress we've made on reducing inequity in our society... it's a startling indictment of this Government that more people will be living in fuel poverty at the time of next election than were living in fuel poverty in 1997," he said.
The "review of progress on sustainable development" details how the "Securing the Future" strategy launched by Tony Blair in 2005 has failed in a number of areas. It says Britain remains the EU's second-largest emitter of greenhouse gases and is not on track to meet its target of a 20 per cent reduction in CO2 emissions by 2010.
Britain remains well behind most European countries on supplying renewable energy, which accounts for less than 2 per cent of overall energy consumption, according to the report, which also predicts the proportion of energy produced by renewables in 2020 will be just 5 per cent – far short of the EU target of 20 per cent. And while recycling is on the increase, there is a long way to go to meet the 40 per cent target by 2010, with the UK heavily reliant on landfill, says the report.
Mr Porritt, who steps down next month, admitted: "I feel some disappointment inevitably because I would have wanted to see faster progress," and cites a new energy White Paper as something "they could, and should, have done four or five years ago".
The embarrassing report comes just days after Gordon Brown's proposals for a £60bn international fund to help poorer countries deal with climate change were announced. The Prime Minister is also arguing for aviation and maritime emissions to be included in global climate-change talks taking place in Copenhagen in December.
The Government's record on sustainability also came under attack from politicians and pressure groups last night. Greg Clark, Tory spokesman on energy and climate change, said: "This is a time when we need action rather than spin."
And Mike Childs of Friends of the Earth said of the Government: "They've produced strategies and had press conferences but there hasn't been conviction... that sustainable development is of critical importance."
In a statement, the Department for Environment, Food and Rural Affairs said: "We're grateful to the SDC for the work they've put into this report. We look forward to its publication... and we will consider its content carefully."
Greenhouse gas emissions
Government target
Twenty per cent cut in CO2 emissions by 2010, and an 80 per cent reduction by 2050.
What the report says
Britain remains the second-largest emitter of greenhouse gases in Europe. In 2007, CO2 emissions were 8.5 per cent below 1990 levels.
Verdict
Britain is not on track to meet its target on emissions. An apparent decrease becomes a significant increase once emissions embedded in trade and travel are taken into account.
Energy production
Government target
Britain to supply 10 per cent renewable energy by 2010. Twenty per cent of EU energy production from renewables by 2020.
What the report says
In 2007, the percentage of final energy consumption from renewable sources was less than 2 per cent. Projections suggest that this will increase to 5 per cent by 2020.
Verdict
Britain is one of the poorest performers in Europe in supplying energy from renewables and is not on track to meet national and EU targets.
Existing homes
Government target
To eliminate fuel poverty in all households by 2016.
What the report says
Cavity wall insulation is one of the most cost-effective measures to reduce carbon, yet 8.5 million UK households do not have this. In 2006, there were approximately 3.5 million UK households (14 per cent) in fuel poverty, an increase of 1 million since 2005. Some 2.75 million of these were classed as 'vulnerable' households.
Verdict
Despite some improvements, significant energy efficiency improvements are required to meet climate-change targets.
Healthy and safe mobility
Government target
To encourage cycling and walking and reduce dependence on cars.
Halve the number of children killed or seriously injured on Britain's roads by 2010.
What the report says
Between 1986 and 2003, the average number of trips by foot fell by 30 per cent. There has been a 52 per cent fall in children killed or seriously injured on roads.
Verdict
Road traffic volume has risen by 20 per cent since 1990, and the frequency of car journeys in the UK outranks walking, cycling and public transport.
Health
Government target
Halt increase in childhood obesity in under-11s by 2010.
Reduce adult smoking rates to 21 per cent.
Reduce health inequalities by 10 per cent by 2010.
What the report says
Almost 40 per cent of the population is expected to be obese by 2020.
Average smoking rates have fallen to 22 per cent.
In Scotland, life expectancy in deprived areas is around 10 years lower than the general population.
Verdict
Britain has the highest rate of childhood obesity in the EU.
We are not on target to meet the 2010 goal of reducing inequalities.
Sustainable communities
Government target
Eradicate child poverty by 2020.
Reduce the proportion of children living in workless households by 5 per cent between 2005 and 2008.
What the report says
Between 1997 and 2007 the number of children in workless households decreased from 19 to 16 per cent. One in five children still live in poverty.
Verdict
Some progress has been made on reducing income inequalities, but the gap between the richest and poorest is increasing. The UK is not on track to meet its child poverty target.
Local economies
Government target
Job and business creation with benefits for the community, and town centres that are economically viable and attractive.
Eighty per cent overall employment rate.
What the report says
There are more than 55,000 social enterprises in Britain generating more than £27bn in turnover. Over the past decade Britain has had high rates of employment but this fell to 74 per cent in December 2008.
Verdict
The economic downturn has caused increases in unemployment. Unemployment is not distributed evenly across the UK, and basic and intermediate skills need improving.
Domestic waste
Government target
Reduce household residual waste by 29 per cent in 2010.
Recycle or compost 40 per cent of household waste by 2010.
What the report says
In England, total household waste fell by 2 per cent between 2006/07 and 2007/08. The national household recycling rate has reached 34.5 per cent but is short of the 40 per cent 2010 target. The UK is also still heavily reliant on landfill.
Verdict
Households are recycling more of their waste, but most of that which is not recycled still goes to landfill. A third of the food we buy goes to waste.
Biodiversity
Government target
To halt biodiversity loss by 2010. To deliver 95 per cent of Sites of Special Scientific Interest (SSSI) into 'favourable' or 'recovering' condition by 2010.
What the report says
Eighty per cent of SSSIs are in 'favourable' or 'recovering' condition. Sustainable development issues, including biodiversity, risk being sidelined by Rural Development Agencies, due to an overriding focus on economic growth.
Verdict
Britain is not on target to halt biodiversity loss by 2010. Protected area arrangements appear to be working but the lack of cross-government action means non-protected areas are particularly vulnerable.
Air quality
Government target
The EU Air Quality Directive sets standards for major pollutants, including levels of particulates, nitrogen dioxide, and ozone.
What the report says
Overall emissions of nitrogen oxides, particulates and sulphur dioxide have been steadily decreasing since 1990. Despite this, air pollution in 2005 was estimated to reduce life expectancy by seven to eight months and cost up to £20.2bn per annum.
Verdict
Despite decreases in overall emissions of air pollutants, 20 cities fail to meet EU legislation for particulates, and the UK is at risk of missing targets for nitrogen dioxide levels.
Sunday, 28 June 2009
Masdar to launch clean-tech fund
By Andrew England in Abu Dhabi
Published: June 27 2009 03:00
Masdar, Abu Dhabi's renewable energy initiative, plans to launch a new clean-technology fund this year with capital of at least $250m as it seeks out investment opportunities created by the global economic turmoil.
Sultan al-Jaber, Masdar's chief executive, told the Financial Times that its existing $250m venture capital fund launched in late 2006 with Credit Suisse, Consensus Business Group and Siemens has already fully deployed its cash.
The new fund will be either the same size, or slightly larger, and will be launched in the fourth quarter, he said. He declined to name the new fund's partners.
Masdar is at the core of oil-rich Abu Dhabi's ambitious plans to become a global leader in renewable energy technology and it acquires strategic stakes in clean-tech companies - either through its funds or direct investments - to transfer technology to the emirate, as well as tap into the commercial benefits of renewable energy.
"We have always had an ambition to be a serious global player in this field and I believe there is an opportunity that we need to capitalise on which will help accelerate us become a real player in the market, by us having more stakes and more positions in different technologies around the world," Mr Jaber said.
Over the next five years, Masdar, which was launched in 2006 with $15bn capital, is likely to invest between $1.5bn and $2bn in stakes in companies.
The entity, which is wholly-owned by Mubadala, a government investment vehicle, has already been identifying potential investments in medium-sized companies across the US, Europe and Asia and is currently doing due diligence on a shortlist of companies, he said.
The size of the clean-tech funds investments range from $2m-$12m, but the acquisitions currently being looked at would require investments ranging from $50m to about $200m, Mr Jaber said, suggesting Masdar would invest directly in those companies.
Since its launch Masdar has directly invested $820m in clean-tech companies, including acquiring a 46 per cent stake in WinWinD, a Finnish wind turbine manufacturer. It also has a 20 per cent stake in a joint venture with Eon and Dong Energy to develop the London Array offshore wind farm.
It plans to invest $2bn in plants manufacturing solar power technology with its first facility, which is based in Germany, scheduled to begin production in October. A second Abu Dhabi-based plant is expected to begin production in January 2011, Mr Jaber said.
At the centre of Abu Dhabi's plans is the creation of the $22bn Masdar City, which has a target of being carbon-neutral while generating 70,000 jobs and, housing 40,000 residents when it is fully operational.
Copyright The Financial Times Limited 2009
Published: June 27 2009 03:00
Masdar, Abu Dhabi's renewable energy initiative, plans to launch a new clean-technology fund this year with capital of at least $250m as it seeks out investment opportunities created by the global economic turmoil.
Sultan al-Jaber, Masdar's chief executive, told the Financial Times that its existing $250m venture capital fund launched in late 2006 with Credit Suisse, Consensus Business Group and Siemens has already fully deployed its cash.
The new fund will be either the same size, or slightly larger, and will be launched in the fourth quarter, he said. He declined to name the new fund's partners.
Masdar is at the core of oil-rich Abu Dhabi's ambitious plans to become a global leader in renewable energy technology and it acquires strategic stakes in clean-tech companies - either through its funds or direct investments - to transfer technology to the emirate, as well as tap into the commercial benefits of renewable energy.
"We have always had an ambition to be a serious global player in this field and I believe there is an opportunity that we need to capitalise on which will help accelerate us become a real player in the market, by us having more stakes and more positions in different technologies around the world," Mr Jaber said.
Over the next five years, Masdar, which was launched in 2006 with $15bn capital, is likely to invest between $1.5bn and $2bn in stakes in companies.
The entity, which is wholly-owned by Mubadala, a government investment vehicle, has already been identifying potential investments in medium-sized companies across the US, Europe and Asia and is currently doing due diligence on a shortlist of companies, he said.
The size of the clean-tech funds investments range from $2m-$12m, but the acquisitions currently being looked at would require investments ranging from $50m to about $200m, Mr Jaber said, suggesting Masdar would invest directly in those companies.
Since its launch Masdar has directly invested $820m in clean-tech companies, including acquiring a 46 per cent stake in WinWinD, a Finnish wind turbine manufacturer. It also has a 20 per cent stake in a joint venture with Eon and Dong Energy to develop the London Array offshore wind farm.
It plans to invest $2bn in plants manufacturing solar power technology with its first facility, which is based in Germany, scheduled to begin production in October. A second Abu Dhabi-based plant is expected to begin production in January 2011, Mr Jaber said.
At the centre of Abu Dhabi's plans is the creation of the $22bn Masdar City, which has a target of being carbon-neutral while generating 70,000 jobs and, housing 40,000 residents when it is fully operational.
Copyright The Financial Times Limited 2009
Hong Kong bid for wind farms
From The Sunday Times
June 28, 2009
Danny Fortson
ASIA’S richest man could inject £150m into Centrica, the owner of British Gas.
Li Ka-shing, whose empire spans property and shipping to retail and the internet, is considering bidding for a stake in Centrica’s newly-operational wind farm at Lynn and Inner Dowsing, off the Lincolnshire coast. Sam Laidlaw, Centrica chief executive, is seeking new sources of cash for his global buying spree, snapping up gas fields that are relatively cheap after last year’s fall in the oil price. The wind farm, the largest in the world, is one of Centrica’s most bankable assets.
Bank of Tokyo-Mitsubishi has been hired to raise £350m of debt against the project, while Credit Suisse has begun an auction for a 50% equity stake that could fetch up to £150m.
Li Ka-shing’s Hongkong Electric is one of four bidders in the auction. The others are American private equity giant KKR, RREEF, Deutsche Bank’s infrastructure arm, and Datang International Power Generation, a Chinese utility.
Earlier this month, Centrica agreed to pay about $800m (£485m) for a slice of a new gas development in Trinidad. The Takeover Panel, meanwhile, has given the British Gas owner a “put-up or shut-up” deadline of July 13 to bid for Venture Production, in which it has a stake.
June 28, 2009
Danny Fortson
ASIA’S richest man could inject £150m into Centrica, the owner of British Gas.
Li Ka-shing, whose empire spans property and shipping to retail and the internet, is considering bidding for a stake in Centrica’s newly-operational wind farm at Lynn and Inner Dowsing, off the Lincolnshire coast. Sam Laidlaw, Centrica chief executive, is seeking new sources of cash for his global buying spree, snapping up gas fields that are relatively cheap after last year’s fall in the oil price. The wind farm, the largest in the world, is one of Centrica’s most bankable assets.
Bank of Tokyo-Mitsubishi has been hired to raise £350m of debt against the project, while Credit Suisse has begun an auction for a 50% equity stake that could fetch up to £150m.
Li Ka-shing’s Hongkong Electric is one of four bidders in the auction. The others are American private equity giant KKR, RREEF, Deutsche Bank’s infrastructure arm, and Datang International Power Generation, a Chinese utility.
Earlier this month, Centrica agreed to pay about $800m (£485m) for a slice of a new gas development in Trinidad. The Takeover Panel, meanwhile, has given the British Gas owner a “put-up or shut-up” deadline of July 13 to bid for Venture Production, in which it has a stake.
Scottish start-up defies the crunch
From The Sunday Times
June 28, 2009
Launched just before the economic meltdown, Scottish climate change consultancy Ecometrica is flourishing despite the recession
Ian Fraser
A Scottish start-up founded at the height of the credit crunch has grown to employing 18 people, with sites in Edinburgh and Montreal, and secured £500,000 funding in just nine months
Gary Davis, 29, launched the climate change consultancy Ecometrica in September 2008, just before the financial world went into meltdown.
Two months later, he secured his investment from two London-based private investors. He said he is considering opening additional offices in America and China.
The consultancy advises clients including National Express, the BBC, BP and the UK government’s Renewable Fuels Agency on carbon mapping, carbon footprinting and the cradle-to-grave assessment of individual products and brands.
The firm has had assistance from the Edinburgh Pre-Incubator scheme (EPIS), which is funded by Scottish Enterprise and run in tandem with Edinburgh University.
The scheme gives promising start-ups help with both business and academic mentoring, accommodation and £10,000 in interest-free loans.
Ecometrica’s scientific backers also include Imperial College, Oxford University, Lawrence-Berkeley National Laboratory and Nasa.
“It was just what we needed to get on with it,” said Davis. “It took us three months to get the business ready to the extent we felt able to put it to potential investors.”
He said the consultancy’s backers are “private individuals with an interest in biodiversity and carbon mapping”.
Davis, Ecometrica’s operations director, worked at the Edinburgh Centre for Carbon Management (ECCM), a consultancy where he specialised in quantifying greenhouse gas emissions.
Managing director Richard Tipper, also previously with ECCM, has advised organisations including the UK and Mexican governments, the OECD and the United Nations Environment Programme.
“We want to change the way people and businesses think about their activities” said Bertrand Revenaz, managing director of Ecometrica's North American division.
“People need to under-stand how their habits affect climate change and the environment.”
June 28, 2009
Launched just before the economic meltdown, Scottish climate change consultancy Ecometrica is flourishing despite the recession
Ian Fraser
A Scottish start-up founded at the height of the credit crunch has grown to employing 18 people, with sites in Edinburgh and Montreal, and secured £500,000 funding in just nine months
Gary Davis, 29, launched the climate change consultancy Ecometrica in September 2008, just before the financial world went into meltdown.
Two months later, he secured his investment from two London-based private investors. He said he is considering opening additional offices in America and China.
The consultancy advises clients including National Express, the BBC, BP and the UK government’s Renewable Fuels Agency on carbon mapping, carbon footprinting and the cradle-to-grave assessment of individual products and brands.
The firm has had assistance from the Edinburgh Pre-Incubator scheme (EPIS), which is funded by Scottish Enterprise and run in tandem with Edinburgh University.
The scheme gives promising start-ups help with both business and academic mentoring, accommodation and £10,000 in interest-free loans.
Ecometrica’s scientific backers also include Imperial College, Oxford University, Lawrence-Berkeley National Laboratory and Nasa.
“It was just what we needed to get on with it,” said Davis. “It took us three months to get the business ready to the extent we felt able to put it to potential investors.”
He said the consultancy’s backers are “private individuals with an interest in biodiversity and carbon mapping”.
Davis, Ecometrica’s operations director, worked at the Edinburgh Centre for Carbon Management (ECCM), a consultancy where he specialised in quantifying greenhouse gas emissions.
Managing director Richard Tipper, also previously with ECCM, has advised organisations including the UK and Mexican governments, the OECD and the United Nations Environment Programme.
“We want to change the way people and businesses think about their activities” said Bertrand Revenaz, managing director of Ecometrica's North American division.
“People need to under-stand how their habits affect climate change and the environment.”
At last, Britain is ready to build hybrid cars
The Sunday Times
June 28, 2009
Toyota expects to start making the Auris hatchback at its plant near Derby before the end of the year
Ray Hutton
BRITAIN is to make hybrid cars for the first time after a decision by Toyota to start production of the high-tech vehicles at its Burnaston plant near Derby.
The UK is the first European country the Japanese car giant has chosen for hybrid production, and only the third outside Japan. Toyota makes nearly all its hybrids in Japan, with small numbers produced in China and America. The best known of these cars is the Prius.
The introduction of the new vehicle to Burnaston – a hybrid version of the Auris hatchback – follows intense negotiations with the government in recent months. It is understood that Britain will provide financial assistance to help the move.
Official confirmation is expected in the next few months, with Gordon Brown expected to visit the Burnaston plant for the announcement. The Sunday Times has learnt that production is expected to start at the end of this year.
Ministers are expected to trumpet the move as an example of Britain prospering from a new low-carbon manufacturing sector. Ministers have forecast 1m “green-collar” jobs and have funnelled financial assistance for the motor industry towards hybrid and electric-vehicle projects.
Earlier this year Brown and Lord Mandel-son, the business secretary, said they planned to make Britain a centre for the production of low-emission vehicles.
Lord Adonis, the transport secretary, and Lord Drayson, the science minister, last week announced the award of grants under a £25m electric car trial (see panel on the right).
Besides introducing the hybrid Auris, Toyota will also participate in this electric-vehicle trial. A number of plug-in Prius prototypes will be included in the 340-model ultra-low-carbon vehicle demonstration programme set up by the Transport Strategy Board.
The Auris hybrid will not have a plug-in facility, but will use a petrol engine to drive the car in combination with an electric motor. It will share the 1.8litre petrol engine and electric motor with the new Prius, which has the lowest carbon dioxide emissions of any five-seater car, at 89g per kilometre, and an official average fuel consumption figure of 72.4mpg.
Although the Auris and Prius are built on the same chassis platform, the Auris is smaller and lighter and so is likely to have an even lower carbon-dioxide rating.
When it goes on sale early next year, it is expected to be priced below the £18,370 Prius, closer to the recently launched Honda Insight Hybrid, which starts at £15,490.
Burnaston makes the Auris and the larger Avensis in their entirety, using engines built at Deeside, North Wales, but the hybrid’s drive system (engine, motor, batteries and electronics) will be imported from Japan.
This will be the first hybrid based on an existing production model that Toyota has sold in Europe.
The popularity of the Prius on both sides of the Atlantic is at least partly because its futuristic styling identifies it as a special model – owners can be seen to be green. More than 1m Priuses have been sold world-wide since it first appeared in 1997.
It remains to be seen whether an Auris hybrid that looks like its petrol and diesel counterparts will be a success. The Honda Civic Hybrid – a version of an existing model – did not sell as well as the Prius, which is why the new Insight was established as a separate model with a remarkable similarity to Toyota’s trendsetter.
Toyota is working on a pure electric small car, based on the iQ, that will be recharged by plugging it into an external electricity supply, but the company continues to favour the petrol-electric hybrid system for mainstream models.
It has a target to build 1m hybrids a year. Those will include a wider variety of Lexus premium models and hybrid versions of the Toyota Yaris and Rav4.
Current plans for hybrid production at Burnaston do not extend beyond the Auris.
For most European markets, diesel engines are a stronger proposition in the Avensis size and price class.
Toyota is one of Britain’s largest motor-industry employers, with 4,300 staff at two plants – Burnaston and its engine plant at Deeside.
So far the plants have escaped the worst of the recession. While several British factories have had to close for several months, the Toyota facilities have been able to limit the fallout to a series of week-long stoppages, short-time working and a 10% across-the-board pay cut.
Last year Toyota’s car production in the UK fell by 20% to 213,000. Its sales of cars in the UK fell 13% to 124,382.
Akio Toyoda, who recently took over as president of Toyota, last week pledged a sweeping restructuring of the group to return it to profit. It lost $4.6 billion (£2.8 billion) last year and forecasts a bigger deficit this year.
IN THE MAGAZINE How to make Britain green and clean
Part one: Sea, shore and beach THE SUNDAY TIMES MAGAZINE TRIAL HITS THE STREETS EIGHT groups have been handed £25m by the Department for Transport to test-drive electric cars on our streets. The recipients range from car giants to groups led by local councils and technology companies. Ford will test a battery-powered version of the Focus, Britain’s best-selling car, while BMW will lead a team testing an electric Mini, and Toyota will try out a plug-in Prius. The aim is to make ultra-low-carbon vehicles an everyday feature of British life in less than five years.
In a separate move, four other companies – Ashwoods, Allied Vehicles, Modec and Smith Electric Vehicles – have been chosen by the Department for Transport to provide low-carbon and electric vans for government and council fleet trials.
The four will share £20m of government money to produce a fleet of 100 to 150 vehicles that will be put into service with council and government departments to assess their practicality and potential for fuel savings. Eventually, these trials will be used as the foundation for a larger, government-wide purchase of low-emission vans.
June 28, 2009
Toyota expects to start making the Auris hatchback at its plant near Derby before the end of the year
Ray Hutton
BRITAIN is to make hybrid cars for the first time after a decision by Toyota to start production of the high-tech vehicles at its Burnaston plant near Derby.
The UK is the first European country the Japanese car giant has chosen for hybrid production, and only the third outside Japan. Toyota makes nearly all its hybrids in Japan, with small numbers produced in China and America. The best known of these cars is the Prius.
The introduction of the new vehicle to Burnaston – a hybrid version of the Auris hatchback – follows intense negotiations with the government in recent months. It is understood that Britain will provide financial assistance to help the move.
Official confirmation is expected in the next few months, with Gordon Brown expected to visit the Burnaston plant for the announcement. The Sunday Times has learnt that production is expected to start at the end of this year.
Ministers are expected to trumpet the move as an example of Britain prospering from a new low-carbon manufacturing sector. Ministers have forecast 1m “green-collar” jobs and have funnelled financial assistance for the motor industry towards hybrid and electric-vehicle projects.
Earlier this year Brown and Lord Mandel-son, the business secretary, said they planned to make Britain a centre for the production of low-emission vehicles.
Lord Adonis, the transport secretary, and Lord Drayson, the science minister, last week announced the award of grants under a £25m electric car trial (see panel on the right).
Besides introducing the hybrid Auris, Toyota will also participate in this electric-vehicle trial. A number of plug-in Prius prototypes will be included in the 340-model ultra-low-carbon vehicle demonstration programme set up by the Transport Strategy Board.
The Auris hybrid will not have a plug-in facility, but will use a petrol engine to drive the car in combination with an electric motor. It will share the 1.8litre petrol engine and electric motor with the new Prius, which has the lowest carbon dioxide emissions of any five-seater car, at 89g per kilometre, and an official average fuel consumption figure of 72.4mpg.
Although the Auris and Prius are built on the same chassis platform, the Auris is smaller and lighter and so is likely to have an even lower carbon-dioxide rating.
When it goes on sale early next year, it is expected to be priced below the £18,370 Prius, closer to the recently launched Honda Insight Hybrid, which starts at £15,490.
Burnaston makes the Auris and the larger Avensis in their entirety, using engines built at Deeside, North Wales, but the hybrid’s drive system (engine, motor, batteries and electronics) will be imported from Japan.
This will be the first hybrid based on an existing production model that Toyota has sold in Europe.
The popularity of the Prius on both sides of the Atlantic is at least partly because its futuristic styling identifies it as a special model – owners can be seen to be green. More than 1m Priuses have been sold world-wide since it first appeared in 1997.
It remains to be seen whether an Auris hybrid that looks like its petrol and diesel counterparts will be a success. The Honda Civic Hybrid – a version of an existing model – did not sell as well as the Prius, which is why the new Insight was established as a separate model with a remarkable similarity to Toyota’s trendsetter.
Toyota is working on a pure electric small car, based on the iQ, that will be recharged by plugging it into an external electricity supply, but the company continues to favour the petrol-electric hybrid system for mainstream models.
It has a target to build 1m hybrids a year. Those will include a wider variety of Lexus premium models and hybrid versions of the Toyota Yaris and Rav4.
Current plans for hybrid production at Burnaston do not extend beyond the Auris.
For most European markets, diesel engines are a stronger proposition in the Avensis size and price class.
Toyota is one of Britain’s largest motor-industry employers, with 4,300 staff at two plants – Burnaston and its engine plant at Deeside.
So far the plants have escaped the worst of the recession. While several British factories have had to close for several months, the Toyota facilities have been able to limit the fallout to a series of week-long stoppages, short-time working and a 10% across-the-board pay cut.
Last year Toyota’s car production in the UK fell by 20% to 213,000. Its sales of cars in the UK fell 13% to 124,382.
Akio Toyoda, who recently took over as president of Toyota, last week pledged a sweeping restructuring of the group to return it to profit. It lost $4.6 billion (£2.8 billion) last year and forecasts a bigger deficit this year.
IN THE MAGAZINE How to make Britain green and clean
Part one: Sea, shore and beach THE SUNDAY TIMES MAGAZINE TRIAL HITS THE STREETS EIGHT groups have been handed £25m by the Department for Transport to test-drive electric cars on our streets. The recipients range from car giants to groups led by local councils and technology companies. Ford will test a battery-powered version of the Focus, Britain’s best-selling car, while BMW will lead a team testing an electric Mini, and Toyota will try out a plug-in Prius. The aim is to make ultra-low-carbon vehicles an everyday feature of British life in less than five years.
In a separate move, four other companies – Ashwoods, Allied Vehicles, Modec and Smith Electric Vehicles – have been chosen by the Department for Transport to provide low-carbon and electric vans for government and council fleet trials.
The four will share £20m of government money to produce a fleet of 100 to 150 vehicles that will be put into service with council and government departments to assess their practicality and potential for fuel savings. Eventually, these trials will be used as the foundation for a larger, government-wide purchase of low-emission vans.
Friday, 26 June 2009
Hello to Carbon Trading (but With Smog?)
By CAROLYN CUI
Carbon trading may get a long-awaited lift Friday, but perhaps with strings attached.
The House is expected to vote on a sweeping climate-change package being championed by President Obama: the American Clean Energy and Security Act.
On Wall Street, passage could breathe life into a market, carbon-emissions trading, that has failed to take off in a big way. The idea of carbon trading is to limit the amount of carbon that companies can emit and allow them to buy and sell carbon credits if they exceed or don't meet the caps. In recent years, banks, insurers and commodity brokerages set up carbon-emission trading desks in anticipation of a robust U.S. market.
But trading didn't gain momentum because the government didn't pass regulation setting national caps. Meanwhile, where there was regulation and markets, in Europe, carbon prices tumbled amid the global financial crisis. Global carbon markets contracted 16% to $28 billion for the first quarter.
U.S. legislation creating a cap-and-trade system would "be a big step" toward greater investment and a full-fledged market, said Anthony D'Agostino, director of the emissions markets at Royal Bank of Canada.
Still, traders aren't universally thrilled with some parts of the bill. One provision would require all carbon derivatives to executed on or through an exchange, an approach that would essentially restrict over-the-counter activity, or deals between private parties.
Banks maintain an exchange approach will increase costs for emitters and reduce product flexibility. Currently, most carbon products are tailored and traded off-exchange.
More broadly, some are worried that the restriction will be applied to other products such as commodities and credit derivatives. "I think it's an overreaction to the AIG mess," said Rep. Michael McMahon (D., N.Y.), a member of the New Democratic Coalition, in an interview. "When a car accident happens, we don't ban automobiles."
The coalition is trying to "knock [the provision] out or change it by amendment," said Rep. McMahon on Thursday afternoon. One possible approach would be an amendment allowing the provision to be superseded by subsequent financial-reform efforts, say people on Capitol Hill.
Email: tape@wsj.com
Carbon trading may get a long-awaited lift Friday, but perhaps with strings attached.
The House is expected to vote on a sweeping climate-change package being championed by President Obama: the American Clean Energy and Security Act.
On Wall Street, passage could breathe life into a market, carbon-emissions trading, that has failed to take off in a big way. The idea of carbon trading is to limit the amount of carbon that companies can emit and allow them to buy and sell carbon credits if they exceed or don't meet the caps. In recent years, banks, insurers and commodity brokerages set up carbon-emission trading desks in anticipation of a robust U.S. market.
But trading didn't gain momentum because the government didn't pass regulation setting national caps. Meanwhile, where there was regulation and markets, in Europe, carbon prices tumbled amid the global financial crisis. Global carbon markets contracted 16% to $28 billion for the first quarter.
U.S. legislation creating a cap-and-trade system would "be a big step" toward greater investment and a full-fledged market, said Anthony D'Agostino, director of the emissions markets at Royal Bank of Canada.
Still, traders aren't universally thrilled with some parts of the bill. One provision would require all carbon derivatives to executed on or through an exchange, an approach that would essentially restrict over-the-counter activity, or deals between private parties.
Banks maintain an exchange approach will increase costs for emitters and reduce product flexibility. Currently, most carbon products are tailored and traded off-exchange.
More broadly, some are worried that the restriction will be applied to other products such as commodities and credit derivatives. "I think it's an overreaction to the AIG mess," said Rep. Michael McMahon (D., N.Y.), a member of the New Democratic Coalition, in an interview. "When a car accident happens, we don't ban automobiles."
The coalition is trying to "knock [the provision] out or change it by amendment," said Rep. McMahon on Thursday afternoon. One possible approach would be an amendment allowing the provision to be superseded by subsequent financial-reform efforts, say people on Capitol Hill.
Email: tape@wsj.com
Europe moves to reduce pollutants
By Joshua Chaffin in Luxembourg
Published: June 26 2009 03:38
Environment ministers agreed on Thursday on a sweeping plan to reduce emissions of sulphur dioxide, dust and other pollutants spewed out by thousands of industrial facilities across Europe.
The legislation would reduce emissions of such pollutants by nearly a third by 2020, according to the European Commission. The measures would save up to €27bn ($38bn, £23bn) in annual health costs and spare thousands of lives by improving the quality of soil, air and water.
European Union member states will negotiate with the European parliament before the proposals can become law.
The plan does not cover carbon dioxide emissions, which are the subject of separate negotiations.
“If you compare 10 years ago with the 10 years ahead of us, we will have a completely different situation,” said Andreas Calgren, environment minister of Sweden, an early proponent of such measures.
Ministers approved the package by a narrow majority after a year of discussions that exposed sharp divisions between the likes of Sweden, Denmark and Germany, which have stringent pollution targets, and the UK and Poland, which pleaded for greater flexibility to accommodate ageing coal-fired power plants.
The legislation tightens emissions limits for certain industrial sectors and sets new inspection standards. At its heart is a requirement that operators of power generators, refineries and other big combustion plants bring facilities up to the best available techniques by the end of 2020. New plants will have to achieve that from 2012.
The UK succeeded in pushing back the deadline for full compliance to 2020 – four years later than originally proposed. But the delay could become an issue with the parliament.
● The European Commission on Thursday announced plans to contribute up to €50m to help China build a facility to test carbon capture and storage technology .
The Commission said the investment illustrated the EU’s commitment to speeding the transfer of green technology to developing nations to fight global warming.
Copyright The Financial Times Limited 2009
Published: June 26 2009 03:38
Environment ministers agreed on Thursday on a sweeping plan to reduce emissions of sulphur dioxide, dust and other pollutants spewed out by thousands of industrial facilities across Europe.
The legislation would reduce emissions of such pollutants by nearly a third by 2020, according to the European Commission. The measures would save up to €27bn ($38bn, £23bn) in annual health costs and spare thousands of lives by improving the quality of soil, air and water.
European Union member states will negotiate with the European parliament before the proposals can become law.
The plan does not cover carbon dioxide emissions, which are the subject of separate negotiations.
“If you compare 10 years ago with the 10 years ahead of us, we will have a completely different situation,” said Andreas Calgren, environment minister of Sweden, an early proponent of such measures.
Ministers approved the package by a narrow majority after a year of discussions that exposed sharp divisions between the likes of Sweden, Denmark and Germany, which have stringent pollution targets, and the UK and Poland, which pleaded for greater flexibility to accommodate ageing coal-fired power plants.
The legislation tightens emissions limits for certain industrial sectors and sets new inspection standards. At its heart is a requirement that operators of power generators, refineries and other big combustion plants bring facilities up to the best available techniques by the end of 2020. New plants will have to achieve that from 2012.
The UK succeeded in pushing back the deadline for full compliance to 2020 – four years later than originally proposed. But the delay could become an issue with the parliament.
● The European Commission on Thursday announced plans to contribute up to €50m to help China build a facility to test carbon capture and storage technology .
The Commission said the investment illustrated the EU’s commitment to speeding the transfer of green technology to developing nations to fight global warming.
Copyright The Financial Times Limited 2009
EU invests in China carbon capture facility
By Joshua Chaffin in Luxembourg
Published: June 25 2009 14:09
The European commission on Thursday announced plans to contribute up to €50m ($70m, £43m) to help China build a facility to test carbon capture and storage technology.
While relatively small, the commission said the investment illustrated the European Union’s commitment to speeding the transfer of green technology to developing nations to further the fight against global warming.
China, in particular, is a top priority for CCS, which aims to trap carbon emissions from power plants and industrial facilities and bury them underground, because the country relies on coal for 70 per cent of its energy.
In 2007, China built the equivalent of one 500 megawatt coal-fired power plant every two-and-a-half days, according to the International Energy Agency, making it a central battleground in the effort to curb global warming.
“We have taken action to put in place the regulatory framework and the incentives to facilitate CCS demonstration in Europe and now we are making good on our promise to China,” said Stavros Dimas, the European environment commissioner.
Mr Dimas called the investment a “model for cooperation” in the run-up to a December summit in Copenhagen, where world leaders will try to agree a global deal to reduce greenhouse gas emissions.
Those negotiations have been bogged down so far in disputes about how much money developed economies such as the US and EU should contribute to China and other developing nations to help them reduce emissions and cope with the effects of global warming.
The agreement was announced as European environment ministers gathered in Luxembourg, where a discussion of the bloc’s negotiating position heading into Copenhagen was high on the agenda.
The commission estimated it would cost €730m to €980m to build and operate a CCS-equipped power plant in China. It said it would work with member states and the private sector to try to secure additional funding.
Earlier this year, the EU agreed to devote €1.05bn to help fund up to a dozen CCS pilot plants. CCS also got a boost in December, when heads of state agreed to set aside some of the revenues from carbon permit auctions to help fund plants. Depending on the price of carbon, those revenues cold total some 6bn to 9bn euros.
The support for CCS has drawn criticism from environmental groups and members of parliament, who have argued that the resources should instead be devoted to renewable energy, such as wind and solar, and efforts to improve energy efficiency. Some have also questioned whether the technology can be effective on an industrial scale.
However, the commission, the IEA and other proponents maintain that CCS will be vital until those technologies mature – particularly as China, India and other emerging economies burn abundant coal reserves to power their development.
Copyright The Financial Times Limited 2009
Published: June 25 2009 14:09
The European commission on Thursday announced plans to contribute up to €50m ($70m, £43m) to help China build a facility to test carbon capture and storage technology.
While relatively small, the commission said the investment illustrated the European Union’s commitment to speeding the transfer of green technology to developing nations to further the fight against global warming.
China, in particular, is a top priority for CCS, which aims to trap carbon emissions from power plants and industrial facilities and bury them underground, because the country relies on coal for 70 per cent of its energy.
In 2007, China built the equivalent of one 500 megawatt coal-fired power plant every two-and-a-half days, according to the International Energy Agency, making it a central battleground in the effort to curb global warming.
“We have taken action to put in place the regulatory framework and the incentives to facilitate CCS demonstration in Europe and now we are making good on our promise to China,” said Stavros Dimas, the European environment commissioner.
Mr Dimas called the investment a “model for cooperation” in the run-up to a December summit in Copenhagen, where world leaders will try to agree a global deal to reduce greenhouse gas emissions.
Those negotiations have been bogged down so far in disputes about how much money developed economies such as the US and EU should contribute to China and other developing nations to help them reduce emissions and cope with the effects of global warming.
The agreement was announced as European environment ministers gathered in Luxembourg, where a discussion of the bloc’s negotiating position heading into Copenhagen was high on the agenda.
The commission estimated it would cost €730m to €980m to build and operate a CCS-equipped power plant in China. It said it would work with member states and the private sector to try to secure additional funding.
Earlier this year, the EU agreed to devote €1.05bn to help fund up to a dozen CCS pilot plants. CCS also got a boost in December, when heads of state agreed to set aside some of the revenues from carbon permit auctions to help fund plants. Depending on the price of carbon, those revenues cold total some 6bn to 9bn euros.
The support for CCS has drawn criticism from environmental groups and members of parliament, who have argued that the resources should instead be devoted to renewable energy, such as wind and solar, and efforts to improve energy efficiency. Some have also questioned whether the technology can be effective on an industrial scale.
However, the commission, the IEA and other proponents maintain that CCS will be vital until those technologies mature – particularly as China, India and other emerging economies burn abundant coal reserves to power their development.
Copyright The Financial Times Limited 2009
Australia delays vote on carbon trading
By Elizabeth Fry in Sydney
Published: June 25 2009 09:45
The Australian government failed to get its carbon trading scheme through the Senate on Thursday after the opposition Coalition and crossbench senators criticised the scheme’s economic and environmental analysis as being inadequate.
The upper house delayed a vote until August 13 when parliament returns from a six-week winter break, although senators warned that they would block the bill unless aspects of the scheme were overhauled.
The legislation is designed to introduce a government cap and trade scheme by July 2011 which guarantees a 5 per cent reduction in emissions. The scheme taxes the top 1,000 emitters but the government will also provide partial compensation to emitters for some activities.
According to Nick Xenophon, an independent senator from South Australia, the government scheme lacked any robust analysis or comparison with alternative emissions trading schemes (ETS).
“The government has been acting like a used car salesman who will only let you test drive one model, and then insists on you buying it,” Senator Xenophon said.
The Coalition and Senator Xenophon argued on Thursday that the government proposal relied on the heavy taxing of emissions which would have a big, adverse impact on the economy without improving the environmental.
They planned to canvass alternative schemes and had committed to completing their analysis before Parliament resumes on August 13th.
Senator Xenophon promised the government – which is seven votes short of a majority in the upper house and did not have the numbers to pass the ETS legislation — that the legislation would be dealt with that week. “That’s something the government has signed on to,” he said. “It’s not their preferred course but it means we’ll have some certainty as to where we’re going with this legislation.”
Thursday’s decision followed four days of fierce debate in the upper house during which Penny Wong, the Climate Change Minister, accused the opposition of ”playing political games.”
“The government has been consistent in its determination to have this bill discussed and debated this week,” Ms Wong told parliament.
”We have been frustrated at every opportunity by the procedural tactics, delaying tactics and irresponsibility of the opposition.”
Despite the fact that the legislation will ultimately be defeated in August unless some compromise is reached, it is unlikely that Minister Wong will change the government’s proposal. She said that the scheme was the result of the most comprehensive ETS modelling Australia had ever done.
Because the legislation did not go through a vote on Thursday, Prime Minister Kevin Rudd would not have a trigger for an early election until December.
In order to get a double dissolution trigger, the government must fail to pass the same bill twice, with a gap of three months between the two votes.
Copyright The Financial Times Limited 2009
Published: June 25 2009 09:45
The Australian government failed to get its carbon trading scheme through the Senate on Thursday after the opposition Coalition and crossbench senators criticised the scheme’s economic and environmental analysis as being inadequate.
The upper house delayed a vote until August 13 when parliament returns from a six-week winter break, although senators warned that they would block the bill unless aspects of the scheme were overhauled.
The legislation is designed to introduce a government cap and trade scheme by July 2011 which guarantees a 5 per cent reduction in emissions. The scheme taxes the top 1,000 emitters but the government will also provide partial compensation to emitters for some activities.
According to Nick Xenophon, an independent senator from South Australia, the government scheme lacked any robust analysis or comparison with alternative emissions trading schemes (ETS).
“The government has been acting like a used car salesman who will only let you test drive one model, and then insists on you buying it,” Senator Xenophon said.
The Coalition and Senator Xenophon argued on Thursday that the government proposal relied on the heavy taxing of emissions which would have a big, adverse impact on the economy without improving the environmental.
They planned to canvass alternative schemes and had committed to completing their analysis before Parliament resumes on August 13th.
Senator Xenophon promised the government – which is seven votes short of a majority in the upper house and did not have the numbers to pass the ETS legislation — that the legislation would be dealt with that week. “That’s something the government has signed on to,” he said. “It’s not their preferred course but it means we’ll have some certainty as to where we’re going with this legislation.”
Thursday’s decision followed four days of fierce debate in the upper house during which Penny Wong, the Climate Change Minister, accused the opposition of ”playing political games.”
“The government has been consistent in its determination to have this bill discussed and debated this week,” Ms Wong told parliament.
”We have been frustrated at every opportunity by the procedural tactics, delaying tactics and irresponsibility of the opposition.”
Despite the fact that the legislation will ultimately be defeated in August unless some compromise is reached, it is unlikely that Minister Wong will change the government’s proposal. She said that the scheme was the result of the most comprehensive ETS modelling Australia had ever done.
Because the legislation did not go through a vote on Thursday, Prime Minister Kevin Rudd would not have a trigger for an early election until December.
In order to get a double dissolution trigger, the government must fail to pass the same bill twice, with a gap of three months between the two votes.
Copyright The Financial Times Limited 2009
EU to help China on carbon capture
By Joshua Chaffin
Published: June 26 2009 03:00
The European Commission yesterday announced plans to contribute up to €50m ($70m) to help China build a facility to test carbon capture and storage technology.
While relatively small, the commission said the investment illustrated EU commitment to speeding the transfer of green technology to developing nations to further the fight against global warming.
China, in particular, is a top priority for CCS, which aims to trap carbon emissions from power plants and industrial facilities and bury them underground.
Joshua Chaffin, Luxembourg
Full story at www.ft.com/climatechange
Copyright The Financial Times Limited 2009
Published: June 26 2009 03:00
The European Commission yesterday announced plans to contribute up to €50m ($70m) to help China build a facility to test carbon capture and storage technology.
While relatively small, the commission said the investment illustrated EU commitment to speeding the transfer of green technology to developing nations to further the fight against global warming.
China, in particular, is a top priority for CCS, which aims to trap carbon emissions from power plants and industrial facilities and bury them underground.
Joshua Chaffin, Luxembourg
Full story at www.ft.com/climatechange
Copyright The Financial Times Limited 2009
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