On Africa, climate, nuclear arms, recession and terrorism, prime minister tells UN it stands 'at a point of no return'
Patrick Wintour
guardian.co.uk, Wednesday 23 September 2009 20.25 BST
Gordon Brown today warned that the world is entering a critical six-month period that is likely to test the resolve of global leaders even more than the banking crisis of the past year did.
Speaking to the UN general assembly in New York, he said that if world leaders showed the moral courage to meet the challenges, they would "have for the first time in human history created a truly global society".
He said: "The great lesson of the last year is that only bold and global action prevented a recession becoming a depression. We have delivered a co-ordinated fiscal and monetary response that the International Labour Organisation estimates has saved 7- to 11 million jobs."
Brown was speaking much later than expected owing to the vast overrun in speeches by other world leaders, notably those of Colonel Gaddafi of Libya and the US president, Barack Obama.
Setting out his foreign policy agenda in the run-up to next year's general election, Obama defined the five new great challenges for the next six months as famine in Africa, nuclear proliferation, climate change, ending the recession and terrorism. On all five issues, he said the world was "at a point of no return".
The lesson of the banking crisis was that "global challenges can only be mastered through global solutions".
In his starkest language yet about the risks of failure at the UN conference on climate change in December in Copenhagen, he describes the talks as "the next great test of our global co-operation".
"If we miss this opportunity to protect our planet, we cannot hope for a second chance some time in the future. There will be no restrospective global agreement to undo the damage we have caused. This is the moment now to limit and reverse climate change we are inflicting on future generations."
He added: "If the poorest and most vulnerable are going to be able to adapt, if the emerging economies are going to embark on low-carbon development paths, if the forest nations are going to slow and stop deforestation, then the richer countries must contribute financially."
He also warned Iran and North Korea that "the world will be even tougher on proliferation, and be ready to consider further sanctions".
He insisted a new non-nuclear pact would require non-nuclear states to prove they were not developing nuclear weapons, changing the whole onus of proof in the international inspection regime.
He also confirmed that, as part of the review conference next May, he would offer to reduce the number of planned replacement Trident nuclear submarines from four to three. But in comments outside the assembly speech, he denied the reduction in the number of submarines would lead to a fall in the number of weapons.
On the economy, he argued the G20 meeting in Pittsburgh would have to consider carefully when to reduce the impact of stimulus measures, but he insisted: "We must not turn off the life support for our economy prematurely."
He hailed an agreement announced yesterday that should bring free healthcare to 10 million Africans and Asians, and claimed that the beginnings of universal free health care in Africa were emerging in countries such as Burundi, Sierra Leone, Malawi, Liberia and Ghana.
Thursday, 24 September 2009
Sarkozy's big idea to save the world from global warming: another conference
Hu and Obama may have stolen the headlines but Nicolas Sarkozy tried to steal the limelight with a moment of rhetoric
Hu Jintao and Barack Obama got the main headlines from the UN climate change summit, but spare a moment for Nicolas Sarkozy. Even on a day of high rhetoric, nobody quite matched Sarkozy's intensity in chastising world leaders for failure to deal with the potential catastrophe that lies ahead.
"We are on the road to failure," he said. "Time is not on our side."
So what's his big idea to stop global warming, or in Sarkozy's own words, "transcend the role playing, the empty speeches, the petty diplomatic games" that have deadlocked negotiations?
Another summit, in November, just before the Copenhagen negotiations of the major developed countries that between them produce 80% of the world's emissions. And the creation of a new international organisation to deal with climate change. That will stop the speechifiers in their tracks. And the creation of a new international environmental organisation — which presumably would get rid of the bureaucratic infighting. Sarkozy such a new world body was needed to monitor any agreement that would come out of Copenhagen."
From the diplomats huddled within the shrine to modernist architecture that is the UN, there was little immediate enthusiasm for Sarkozy's big idea. But nobody was willing to publicly reject the notion either. Denmark's Lars Løkke Rasmussen, said simply: "We haven't discussed the Sarkozy proposal in detail." But it is now widely conceded that world leaders will need to apply themselves directly if there is going to be a meaningful agreement at Copenhagen. The question is whether they will want to do it Sarkozy's way.
Hu Jintao and Barack Obama got the main headlines from the UN climate change summit, but spare a moment for Nicolas Sarkozy. Even on a day of high rhetoric, nobody quite matched Sarkozy's intensity in chastising world leaders for failure to deal with the potential catastrophe that lies ahead.
"We are on the road to failure," he said. "Time is not on our side."
So what's his big idea to stop global warming, or in Sarkozy's own words, "transcend the role playing, the empty speeches, the petty diplomatic games" that have deadlocked negotiations?
Another summit, in November, just before the Copenhagen negotiations of the major developed countries that between them produce 80% of the world's emissions. And the creation of a new international organisation to deal with climate change. That will stop the speechifiers in their tracks. And the creation of a new international environmental organisation — which presumably would get rid of the bureaucratic infighting. Sarkozy such a new world body was needed to monitor any agreement that would come out of Copenhagen."
From the diplomats huddled within the shrine to modernist architecture that is the UN, there was little immediate enthusiasm for Sarkozy's big idea. But nobody was willing to publicly reject the notion either. Denmark's Lars Løkke Rasmussen, said simply: "We haven't discussed the Sarkozy proposal in detail." But it is now widely conceded that world leaders will need to apply themselves directly if there is going to be a meaningful agreement at Copenhagen. The question is whether they will want to do it Sarkozy's way.
EU Court Overturns Some Emission Caps
By ALESSANDRO TORELLO
BRUSSELS -- A European court overturned a European Commission decision to impose stricter limits on carbon emissions from Poland and Estonia from 2008 to 2012, sending the price of carbon credits lower.
Under the European Union's market for allowances to emit carbon dioxide -- called the Emissions Trading System -- EU governments must set national limits on the amount of CO2 industries can emit in the five years from 2008 to 2012. These caps must then be approved by the commission, the EU's executive branch.
The commission said in 2007 that the emission levels set by Poland and Estonia were too high, and sought to reduce them by 26.7% and 47.8%, respectively. However, the Court of First Instance said Wednesday that "by imposing ... a ceiling on emission allowances to be allocated, the commission exceeded its powers."
Barbara Helfferich, the commission's spokeswoman on environmental issues, said "We are extremely disappointed by the judgment. We are studying it carefully, with a view to a possible appeal of the decision," adding that it was still too early to assess what impact the ruling will have on the Emissions Trading System.
Analysts and carbon-market participants, meanwhile, expressed concerns about the potential implications of the ruling.
"This is a landslide judgment which fundamentally alters the way the supply side of the [Emissions Trading System] is administered," said Emmanuel Fages, an analyst at Société Générale. "It opens large uncertainty."
For the trading period of 2008 to 2012, the commission has approved the emissions levels of only four national plans -- those from Denmark, France, Slovenia and the U.K. -- and has sought reductions from the other 23 EU governments.
"It could very well be that in the near future, similar decisions will follow," said Wim Vandenberghe, an energy and environment lawyer at DLA Piper in Brussels. Six other countries -- Bulgaria, Romania, Hungary, the Czech Republic, Lithuania and Latvia -- have appealed cuts to emissions levels demanded by the commission.
Carbon-market participants said they were worried that extra allowances will enter the market, putting downward pressure on prices. On the European Climate Exchange, Europe's main platform for trading carbon credits, December carbon futures closed down 2.6% after having dropped as much as 4.7% earlier in the day.
"The market seems to expect an additional issuing of these allowances," said Nele Glienke, an analyst at UniCredit Markets & Investment Banking in Munich.
The Emissions Trading System is the EU's main instrument for reducing greenhouse-gas emissions and thus contributing to the fight against climate change. The bloc wants to lead negotiations on a new climate pact to replace the 1997 Kyoto accord when world leaders meet in December in Copenhagen.
The trading system, launched in 2005 and covering about 11,500 installations, ranging from power plants to steel and paper makers, is set to be expanded in 2013. Companies that stay below the limits can sell carbon permits to participants that have overshot their quotas. In theory, the stricter these limits are, the higher the price of carbon credits.
The commission now has two months to appeal Wednesday's ruling at a higher court.—Frank Huetten contributed to this article.
Write to Alessandro Torello at alessandro.torello@dowjones.com
BRUSSELS -- A European court overturned a European Commission decision to impose stricter limits on carbon emissions from Poland and Estonia from 2008 to 2012, sending the price of carbon credits lower.
Under the European Union's market for allowances to emit carbon dioxide -- called the Emissions Trading System -- EU governments must set national limits on the amount of CO2 industries can emit in the five years from 2008 to 2012. These caps must then be approved by the commission, the EU's executive branch.
The commission said in 2007 that the emission levels set by Poland and Estonia were too high, and sought to reduce them by 26.7% and 47.8%, respectively. However, the Court of First Instance said Wednesday that "by imposing ... a ceiling on emission allowances to be allocated, the commission exceeded its powers."
Barbara Helfferich, the commission's spokeswoman on environmental issues, said "We are extremely disappointed by the judgment. We are studying it carefully, with a view to a possible appeal of the decision," adding that it was still too early to assess what impact the ruling will have on the Emissions Trading System.
Analysts and carbon-market participants, meanwhile, expressed concerns about the potential implications of the ruling.
"This is a landslide judgment which fundamentally alters the way the supply side of the [Emissions Trading System] is administered," said Emmanuel Fages, an analyst at Société Générale. "It opens large uncertainty."
For the trading period of 2008 to 2012, the commission has approved the emissions levels of only four national plans -- those from Denmark, France, Slovenia and the U.K. -- and has sought reductions from the other 23 EU governments.
"It could very well be that in the near future, similar decisions will follow," said Wim Vandenberghe, an energy and environment lawyer at DLA Piper in Brussels. Six other countries -- Bulgaria, Romania, Hungary, the Czech Republic, Lithuania and Latvia -- have appealed cuts to emissions levels demanded by the commission.
Carbon-market participants said they were worried that extra allowances will enter the market, putting downward pressure on prices. On the European Climate Exchange, Europe's main platform for trading carbon credits, December carbon futures closed down 2.6% after having dropped as much as 4.7% earlier in the day.
"The market seems to expect an additional issuing of these allowances," said Nele Glienke, an analyst at UniCredit Markets & Investment Banking in Munich.
The Emissions Trading System is the EU's main instrument for reducing greenhouse-gas emissions and thus contributing to the fight against climate change. The bloc wants to lead negotiations on a new climate pact to replace the 1997 Kyoto accord when world leaders meet in December in Copenhagen.
The trading system, launched in 2005 and covering about 11,500 installations, ranging from power plants to steel and paper makers, is set to be expanded in 2013. Companies that stay below the limits can sell carbon permits to participants that have overshot their quotas. In theory, the stricter these limits are, the higher the price of carbon credits.
The commission now has two months to appeal Wednesday's ruling at a higher court.—Frank Huetten contributed to this article.
Write to Alessandro Torello at alessandro.torello@dowjones.com
Shipping bodies back cap and trade scheme to cut emissions
Proposal from five countries would cut emissions from the shipping industry, which accounts for nearly 3% of the world's man-made greenhouse gases
John Vidal, environment editor
guardian.co.uk, Wednesday 23 September 2009 17.41 BST
The global shipping industry should be treated as a separate country and given its own cap and trade scheme to cut carbon emissions - which amount to nearly 3% of the world's man-made greenhouse gases - industry bodies from five countries said today.
The proposal, which could cost the global industry up to €6bn a year at the present carbon price, was one of several ideas put forward by the UK Chamber of Shipping and its sister organisations in Australia, Belgium, Norway and Sweden. It is hoped that it will lead to a global agreement to significantly cut carbon emissions from the world's fleet of 100,000 ships at the UN climate talks in Copenhagen later this year.
But the five countries declined to propose specific targets or timetables and admitted it would be hard to gain consensus among other countries.
"We would welcome a challenging target. But we are looking to the UN's International Maritime Organisation or the UNFCCC [UN Framework Convention on Climate Change] to set that," said UK Chamber of Shipping president Jesper Kjaedegaard.
This week the international aviation industry pledged to reduce its carbon dioxide emissions by 50% by 2050 compared with 2005 levels, and to make the industry's growth carbon-neutral by 2020. However the shipping industry said it could not make more precise commitments at this stage.
"The two cannot be compared. Aviation is smaller and more concentrated. Shipping is much more broadly based. There is not enough data yet," said Kjaedegaard.
"We believe some form of emissions trading system is the way to reduce carbon outputs. But it is vital that any emissions trading regime be implemented without driving goods to other modes of transport, which would increase overall emissions and damage commercial shipping."
John Vidal, environment editor
guardian.co.uk, Wednesday 23 September 2009 17.41 BST
The global shipping industry should be treated as a separate country and given its own cap and trade scheme to cut carbon emissions - which amount to nearly 3% of the world's man-made greenhouse gases - industry bodies from five countries said today.
The proposal, which could cost the global industry up to €6bn a year at the present carbon price, was one of several ideas put forward by the UK Chamber of Shipping and its sister organisations in Australia, Belgium, Norway and Sweden. It is hoped that it will lead to a global agreement to significantly cut carbon emissions from the world's fleet of 100,000 ships at the UN climate talks in Copenhagen later this year.
But the five countries declined to propose specific targets or timetables and admitted it would be hard to gain consensus among other countries.
"We would welcome a challenging target. But we are looking to the UN's International Maritime Organisation or the UNFCCC [UN Framework Convention on Climate Change] to set that," said UK Chamber of Shipping president Jesper Kjaedegaard.
This week the international aviation industry pledged to reduce its carbon dioxide emissions by 50% by 2050 compared with 2005 levels, and to make the industry's growth carbon-neutral by 2020. However the shipping industry said it could not make more precise commitments at this stage.
"The two cannot be compared. Aviation is smaller and more concentrated. Shipping is much more broadly based. There is not enough data yet," said Kjaedegaard.
"We believe some form of emissions trading system is the way to reduce carbon outputs. But it is vital that any emissions trading regime be implemented without driving goods to other modes of transport, which would increase overall emissions and damage commercial shipping."
European carbon trading market takes hit
Carl Mortished, World Business Editor
The Europe-wide carbon trading market suffered a severe blow yesterday when a European court issued a ruling that will weaken carbon prices and undermine efforts by the European Commission to curb carbon emissions further.
In a landmark decision, the European Court of First Instance ruled in favour of an appeal by Poland and Estonia for the right to be more generous in granting carbon emission allowances. In its surprise annulment of a Commission decision to cut the carbon quotas of the two countries, the court said: “The Commission exceeded its powers.”
The decision is expected to weaken prices in Europe’s troubled carbon market and undermine efforts by the Commission to impose a stricter regime on carbon polluters.
The court said that the Commission had no right to impose a lower cap on the emissions of Estonia and Poland when it rejected the national allocation plans (NAPs) submitted by the two countries.
Under Europe’s Emissions Trading System (ETS), each state submits a plan setting out how many carbon allowances (EUAs) it will issue to industry each year.
The court’s ruling astounded carbon traders in Europe yesterday and the price of EUAs traded on the ETS fell 60 cents a tonne before recovering to €13.40 a tonne.
Carbon traders said that there was a risk of a further 50 million tonnes in EUAs coming on to the market as the two countries exploited the court’s ruling against the Commission’s authority.
“It means two things — possibly more allowances in the market and more uncertainty,” Emmanuel Fages, a carbon analyst with Société Générale, the investment bank, said. “It’s another blow because people will say the market doesn’t work.”
The ETS was set up to create a market incentive for businesses to reduce CO2 emissions by enabling companies to sell surplus carbon allowances for cash in the market. In its first phase, governments gave away too many allowances, depressing the price of EUAs and reducing incentives. In an effort to boost the ETS in its second phase, the Commission sought to rein in the volume of EUAs distributed by governments.
The ruling is a victory for Central and Eastern European states that fought against the Commission’s attempts to cut carbon emission quotas. Poland argued that its dependence on a Soviet-era coal and power industry deserved special treatment when it submitted its NAP to the Commission for approval. The Commission rejected the NAPs of several states, including Poland and Estonia, and ordered those two countries to reduce the number of EUAs by 27 per cent and 48 per cent, respectively.
However, the European Union’s court said that the Commission’s power of review was “very restricted”. The Commission could reject an NAP only if it failed to conform with criteria set out in the EU directive concerning greenhouse gas emissions. By imposing a different quota ceiling, the Commission was “encroaching on the exclusive competence which the directive confers on the member states”, the court said.
The Commission said that it was “extremely disappointed” and hinted that it would appeal against the ruling.
Other EU states that suffered cuts in their NAPs in the second phase may now challenge the Commission. The Polish and Estonian cases were supported by Hungary, Lithuania and Slovakia. The ruling will raise further questions about the effectiveness of market-based carbon trading systems in bringing about reductions in greenhouse gas emissions.
The Europe-wide carbon trading market suffered a severe blow yesterday when a European court issued a ruling that will weaken carbon prices and undermine efforts by the European Commission to curb carbon emissions further.
In a landmark decision, the European Court of First Instance ruled in favour of an appeal by Poland and Estonia for the right to be more generous in granting carbon emission allowances. In its surprise annulment of a Commission decision to cut the carbon quotas of the two countries, the court said: “The Commission exceeded its powers.”
The decision is expected to weaken prices in Europe’s troubled carbon market and undermine efforts by the Commission to impose a stricter regime on carbon polluters.
The court said that the Commission had no right to impose a lower cap on the emissions of Estonia and Poland when it rejected the national allocation plans (NAPs) submitted by the two countries.
Under Europe’s Emissions Trading System (ETS), each state submits a plan setting out how many carbon allowances (EUAs) it will issue to industry each year.
The court’s ruling astounded carbon traders in Europe yesterday and the price of EUAs traded on the ETS fell 60 cents a tonne before recovering to €13.40 a tonne.
Carbon traders said that there was a risk of a further 50 million tonnes in EUAs coming on to the market as the two countries exploited the court’s ruling against the Commission’s authority.
“It means two things — possibly more allowances in the market and more uncertainty,” Emmanuel Fages, a carbon analyst with Société Générale, the investment bank, said. “It’s another blow because people will say the market doesn’t work.”
The ETS was set up to create a market incentive for businesses to reduce CO2 emissions by enabling companies to sell surplus carbon allowances for cash in the market. In its first phase, governments gave away too many allowances, depressing the price of EUAs and reducing incentives. In an effort to boost the ETS in its second phase, the Commission sought to rein in the volume of EUAs distributed by governments.
The ruling is a victory for Central and Eastern European states that fought against the Commission’s attempts to cut carbon emission quotas. Poland argued that its dependence on a Soviet-era coal and power industry deserved special treatment when it submitted its NAP to the Commission for approval. The Commission rejected the NAPs of several states, including Poland and Estonia, and ordered those two countries to reduce the number of EUAs by 27 per cent and 48 per cent, respectively.
However, the European Union’s court said that the Commission’s power of review was “very restricted”. The Commission could reject an NAP only if it failed to conform with criteria set out in the EU directive concerning greenhouse gas emissions. By imposing a different quota ceiling, the Commission was “encroaching on the exclusive competence which the directive confers on the member states”, the court said.
The Commission said that it was “extremely disappointed” and hinted that it would appeal against the ruling.
Other EU states that suffered cuts in their NAPs in the second phase may now challenge the Commission. The Polish and Estonian cases were supported by Hungary, Lithuania and Slovakia. The ruling will raise further questions about the effectiveness of market-based carbon trading systems in bringing about reductions in greenhouse gas emissions.
Obama to press G20 leaders to cut fossil fuel subsidies that benefit big business
US president to propose elimination of tax breaks and cheap loans as 'downpayment to end global warming'
Suzanne Goldenberg, US environment correspondent
guardian.co.uk, Wednesday 23 September 2009 18.27 BST
Barack Obama will press leaders at the G20 summit tomorrow to end the billions of dollars of subsidies that encourage the use of fossil fuels around the world and help drive climate change.
Obama, who will host the summit in Pittsburgh, will propose a gradual elimination of the tax breaks, cheap loans and other measures extended to oil, gas, coal and electricity producers. The White House said elimination of the subsidies would be a "significant downpayment" to ending global warming.
Studies from the International Energy Agency (IEA) and the Organisation for Economic Development (OECD) have estimated that carbon saving of ending subsidies would be 10% by 2020.
But an end to the subsidies would bring world leaders into conflict with powerful fossil fuel lobbies as well as developing nations where the subsidies make fuel affordable. Over the past six years, oil and coal producers in the US received more than double the subsidy of renewable energy companies.
The world's biggest polluters — America, India, China, Brazil and Russia — all offer significant subsidies, totalling many billions of dollars every year which encourage the use of fossil fuel. OECD and IEA studies also found that last year, countries who subsidised fossil fuel increased their consumption by 1barrels of oil and in countries without subsidies, consumption fell by 1.5m barrels.
Another OECD report last week noted that removing the subsidies would free up cash for programmes that could help the poor. "Removing environmentally harmful subsidies would be an important first step," the OECD secretary-general Angel Gurría said. "It would also improve economic efficiency. For instance, the budgetary savings could be used to reduce other distorting taxes or to alleviate poverty in a more targeted and efficient way."
Obama has already faced multimillon dollar lobbying campaigns against his proposals to force cuts in US greenhouse gas emissions.
The US government has consistently offered more tax breaks and other incentives to the oil and gas industry — rather than producers of renewable energy — undermining efforts to reduce greenhouse gas emissions. In the last six years, oil and coal producers got $72bn in tax breaks compared with $29bn for renewable energy, said a report from the Environmental Law Institute.
Developing nations also spent heavily on fuel subsidies — and they are seen as crucial to keep prices low for the poor. Twenty of the largest non-OECD countries together spent $400m on subsidies last year.
Mike Froman, the national security adviser for international economic affairs, said: "We are working with the rest in the G20 to see if we can forge an agreement that would make significant contributions in direction [of removing subsidies]."
He emphasised that the US administration was not opposed to targeted fuel subsidies for the poor, but was seeking to phase out the blanket programmes that also benefit big business and the wealthy. He also said that the administration would maintain subsidies for cleaner technology, like carbon capture storage from coal plants.
"The G20 is not trying to do anything that would keep people in the dark but instead trying to encourage countries to move off blanket subsidies which are regressive," he said.
But he noted that developing countries spent more than 1% of GDP on fossil fuel subsidies last year. "So eliminating fossil fuel subsidies will promote more efficient investment climate, increase real income by as much as two percent in some developing countries and at the same time lead to better allocation of resources."
Suzanne Goldenberg, US environment correspondent
guardian.co.uk, Wednesday 23 September 2009 18.27 BST
Barack Obama will press leaders at the G20 summit tomorrow to end the billions of dollars of subsidies that encourage the use of fossil fuels around the world and help drive climate change.
Obama, who will host the summit in Pittsburgh, will propose a gradual elimination of the tax breaks, cheap loans and other measures extended to oil, gas, coal and electricity producers. The White House said elimination of the subsidies would be a "significant downpayment" to ending global warming.
Studies from the International Energy Agency (IEA) and the Organisation for Economic Development (OECD) have estimated that carbon saving of ending subsidies would be 10% by 2020.
But an end to the subsidies would bring world leaders into conflict with powerful fossil fuel lobbies as well as developing nations where the subsidies make fuel affordable. Over the past six years, oil and coal producers in the US received more than double the subsidy of renewable energy companies.
The world's biggest polluters — America, India, China, Brazil and Russia — all offer significant subsidies, totalling many billions of dollars every year which encourage the use of fossil fuel. OECD and IEA studies also found that last year, countries who subsidised fossil fuel increased their consumption by 1barrels of oil and in countries without subsidies, consumption fell by 1.5m barrels.
Another OECD report last week noted that removing the subsidies would free up cash for programmes that could help the poor. "Removing environmentally harmful subsidies would be an important first step," the OECD secretary-general Angel Gurría said. "It would also improve economic efficiency. For instance, the budgetary savings could be used to reduce other distorting taxes or to alleviate poverty in a more targeted and efficient way."
Obama has already faced multimillon dollar lobbying campaigns against his proposals to force cuts in US greenhouse gas emissions.
The US government has consistently offered more tax breaks and other incentives to the oil and gas industry — rather than producers of renewable energy — undermining efforts to reduce greenhouse gas emissions. In the last six years, oil and coal producers got $72bn in tax breaks compared with $29bn for renewable energy, said a report from the Environmental Law Institute.
Developing nations also spent heavily on fuel subsidies — and they are seen as crucial to keep prices low for the poor. Twenty of the largest non-OECD countries together spent $400m on subsidies last year.
Mike Froman, the national security adviser for international economic affairs, said: "We are working with the rest in the G20 to see if we can forge an agreement that would make significant contributions in direction [of removing subsidies]."
He emphasised that the US administration was not opposed to targeted fuel subsidies for the poor, but was seeking to phase out the blanket programmes that also benefit big business and the wealthy. He also said that the administration would maintain subsidies for cleaner technology, like carbon capture storage from coal plants.
"The G20 is not trying to do anything that would keep people in the dark but instead trying to encourage countries to move off blanket subsidies which are regressive," he said.
But he noted that developing countries spent more than 1% of GDP on fossil fuel subsidies last year. "So eliminating fossil fuel subsidies will promote more efficient investment climate, increase real income by as much as two percent in some developing countries and at the same time lead to better allocation of resources."
Electric vans are a viable cleantech alternative
Now able to compete on range and price, electric vans are a cleantech alternative to diesel
Marc Zakian
guardian.co.uk, Wednesday 23 September 2009 20.30 BST
I am cruising the outskirts of London in a vehicle that could turn white van drivers green. Green with envy, as a tank of diesel costs £100 compared with our £5 fill-up; and environmentally green because the van I am steering is electric.
The curved-nosed box-van can carry up to two tonnes (think Transit, but longer and taller). It is made by Modec, a Midlands-based company set up in 2004 by the former chairman of Manganese Bronze – makers of the iconic London taxi. After a £30m development, the Modec was launched in 2007.
Driving the Modec is a contradictory experience. Perched in its cabin, you command the road, and yet the ride is extraordinarily quiet; with none of the shake and rattle or the whiff of diesel of a traditional van – only the squeaks from the chassis and the beehive hum of the electric motor let you know you are driving. With no noise pollution or tailpipe emissions, the electric van should be the bright green future for commercial transport. But if the Zev (Zero Emission Vehicle) is to replace Britain's 3m diesel vans it will have to satisfy two demands: the distance it can travel on one charge, and its price.
Electric courier
"Range is an issue for our customers," explains George Smith, brand manager for Harris Van Centre who, after years of selling conventional trucks and vans, is convinced electric is the future. "But not as big an issue as you might think. When we first spoke to UPS about using electric vans on their courier routes in London, they looked at their mileage and worked out that the average distance travelled in the capital was 14 miles per day." Most commercial electric vehicles can cover about 100 miles on one six-hour charge.
So for door-to-door urban deliveries an electric Zev is a workable cleantech alternative. Tesco approached Modec in an initiative to reduce the company's global footprint, adding 15 Modec Zevs to its fleet. The courier company TNT has gone further, spending £7m on 100 seven-tonne electric vans from Smiths, Britain's largest and oldest electric vehicle maker. And by sourcing 20% of its electricity from renewables, TNT answers the charge that electric vehicles simply shift pollution from the road to the power station.
But while large companies can afford to invest in electric transport, the up-front cost is challenging for smaller businesses. At around £40,000, a Transit-size electric van is twice the price of a similar size diesel. And you will need a three-phase charging point to plug them into.
It is once the Zevs are on the road that savings are made. "We spend £25 a week charging an electric van, compared with £200 on a diesel equivalent," says Nick Murray, TNT's communications manager. "After three years an electric van works out cheaper than diesel."
As well as costing less in fuel, electric vans don't need an MOT, are zero-rated for road tax and have no oil or filters to change. And with only four moving parts in the engine – compared with more than 1,000 on an internal combustion engine – electric vehicles are cheaper to maintain and suffer fewer breakdowns.
The strongest financial incentive, however, is an emissions-based congestion charge. "If the government really wants people to stop using polluting vans," says Roger Atkins, Modec's sales director, "they just need to look at how the London congestion charge is an impetus for change. The exemption for electric vehicles represents an annual £2,000 incentive for Zevs."
So for short-haul delivery the electric van offers a cleantech solution. But what about the UK's 500,000 lorries? Last year, heavy goods vehicles covered 18bn miles on British roads, with a loaded articulated lorry averaging 6 to 8 miles a gallon. The rising cost of fuel has seen truck drivers blocking the roads in protest and consumers paying more for transport costs.
Long-haul solution
Although electric HGVs are starting to make an appearance – last May the port in Los Angeles started using electric trucks to move sea containers – they are short-range vehicles. Electric vans recharge on the move, generating power when the vehicle brakes and returning that power to the battery. So the stop/start rhythms of a delivery van are well-suited to electric power. Long-distance trucks drive for hours without stopping, way beyond the current 100- to 150-mile battery range.
One potential solution is already incorporated into the Modec van. The battery is exchangeable. This future-proofs the vehicle, so that as technology improves, vehicles can be retrofitted with the latest batteries. Currently this swap takes about 15 minutes. But if the exchange were speeded up, it would pave the way for a relay of "battery stations" around the country, with electric vans or trucks swapping spent batteries for charged ones, giving them an infinite range. This potential is being exploited by Project Better Place, who with Renault and Nissan are planning an electric car battery station network which they plan to deploy by 2011.
But Dan Jenkins, from Smiths Electric Vehicles, believes the eventual solution will be improved battery technology. "Lithium ion battery technology is only at the beginning of its performance curve," he stresses. "In the next few years we will see the range being extended to 200 miles and beyond. And in the long term, batteries using ultra-capacitors should mean you can fast-charge in minutes."
In the meantime, for the newly greened white van driver the Zev is good news. Goodbye to the bone-battering rattle of the diesel engine, and hello to the gearless, silent, stress-free world of the electric van.
Marc Zakian
guardian.co.uk, Wednesday 23 September 2009 20.30 BST
I am cruising the outskirts of London in a vehicle that could turn white van drivers green. Green with envy, as a tank of diesel costs £100 compared with our £5 fill-up; and environmentally green because the van I am steering is electric.
The curved-nosed box-van can carry up to two tonnes (think Transit, but longer and taller). It is made by Modec, a Midlands-based company set up in 2004 by the former chairman of Manganese Bronze – makers of the iconic London taxi. After a £30m development, the Modec was launched in 2007.
Driving the Modec is a contradictory experience. Perched in its cabin, you command the road, and yet the ride is extraordinarily quiet; with none of the shake and rattle or the whiff of diesel of a traditional van – only the squeaks from the chassis and the beehive hum of the electric motor let you know you are driving. With no noise pollution or tailpipe emissions, the electric van should be the bright green future for commercial transport. But if the Zev (Zero Emission Vehicle) is to replace Britain's 3m diesel vans it will have to satisfy two demands: the distance it can travel on one charge, and its price.
Electric courier
"Range is an issue for our customers," explains George Smith, brand manager for Harris Van Centre who, after years of selling conventional trucks and vans, is convinced electric is the future. "But not as big an issue as you might think. When we first spoke to UPS about using electric vans on their courier routes in London, they looked at their mileage and worked out that the average distance travelled in the capital was 14 miles per day." Most commercial electric vehicles can cover about 100 miles on one six-hour charge.
So for door-to-door urban deliveries an electric Zev is a workable cleantech alternative. Tesco approached Modec in an initiative to reduce the company's global footprint, adding 15 Modec Zevs to its fleet. The courier company TNT has gone further, spending £7m on 100 seven-tonne electric vans from Smiths, Britain's largest and oldest electric vehicle maker. And by sourcing 20% of its electricity from renewables, TNT answers the charge that electric vehicles simply shift pollution from the road to the power station.
But while large companies can afford to invest in electric transport, the up-front cost is challenging for smaller businesses. At around £40,000, a Transit-size electric van is twice the price of a similar size diesel. And you will need a three-phase charging point to plug them into.
It is once the Zevs are on the road that savings are made. "We spend £25 a week charging an electric van, compared with £200 on a diesel equivalent," says Nick Murray, TNT's communications manager. "After three years an electric van works out cheaper than diesel."
As well as costing less in fuel, electric vans don't need an MOT, are zero-rated for road tax and have no oil or filters to change. And with only four moving parts in the engine – compared with more than 1,000 on an internal combustion engine – electric vehicles are cheaper to maintain and suffer fewer breakdowns.
The strongest financial incentive, however, is an emissions-based congestion charge. "If the government really wants people to stop using polluting vans," says Roger Atkins, Modec's sales director, "they just need to look at how the London congestion charge is an impetus for change. The exemption for electric vehicles represents an annual £2,000 incentive for Zevs."
So for short-haul delivery the electric van offers a cleantech solution. But what about the UK's 500,000 lorries? Last year, heavy goods vehicles covered 18bn miles on British roads, with a loaded articulated lorry averaging 6 to 8 miles a gallon. The rising cost of fuel has seen truck drivers blocking the roads in protest and consumers paying more for transport costs.
Long-haul solution
Although electric HGVs are starting to make an appearance – last May the port in Los Angeles started using electric trucks to move sea containers – they are short-range vehicles. Electric vans recharge on the move, generating power when the vehicle brakes and returning that power to the battery. So the stop/start rhythms of a delivery van are well-suited to electric power. Long-distance trucks drive for hours without stopping, way beyond the current 100- to 150-mile battery range.
One potential solution is already incorporated into the Modec van. The battery is exchangeable. This future-proofs the vehicle, so that as technology improves, vehicles can be retrofitted with the latest batteries. Currently this swap takes about 15 minutes. But if the exchange were speeded up, it would pave the way for a relay of "battery stations" around the country, with electric vans or trucks swapping spent batteries for charged ones, giving them an infinite range. This potential is being exploited by Project Better Place, who with Renault and Nissan are planning an electric car battery station network which they plan to deploy by 2011.
But Dan Jenkins, from Smiths Electric Vehicles, believes the eventual solution will be improved battery technology. "Lithium ion battery technology is only at the beginning of its performance curve," he stresses. "In the next few years we will see the range being extended to 200 miles and beyond. And in the long term, batteries using ultra-capacitors should mean you can fast-charge in minutes."
In the meantime, for the newly greened white van driver the Zev is good news. Goodbye to the bone-battering rattle of the diesel engine, and hello to the gearless, silent, stress-free world of the electric van.
Bidders chosen for £1bn offshore links tender
By Sarah Arnott
Thursday, 24 September 2009
Thirteen companies are in the running to buy £1.15bn-worth of electricity transmission links to nine offshore windfarms as part of a £15bn plan to improve competition in the UK's green energy infrastructure.
The new regime from regulator Ofgem comes against the backdrop of the Government's target for another 33 gigawatts of offshore wind – or around 50 per cent of the current installed capacity – be built by 2020.
By separating the design, construction and operation of the cables linking to onshore sub-stations from construction of the farms themselves, Ofgem hopes to bring down costs.
The first phase covers nine wind farms including Barrow and Robin Rigg, which are already operating, and several more already in the process of being built. Bidders in the selection process include ABN Amro Infrastructure Capital Management, Balfour Beatty, Macquarie and National Grid.
The winning bidders will be announced in the spring, before a second round of contracts is put up for sale next summer. These first two tranches of tenders will cover infrastructure already either up and running or in the process of being built. After that, the regime will apply to all new construction programmes.
Thursday, 24 September 2009
Thirteen companies are in the running to buy £1.15bn-worth of electricity transmission links to nine offshore windfarms as part of a £15bn plan to improve competition in the UK's green energy infrastructure.
The new regime from regulator Ofgem comes against the backdrop of the Government's target for another 33 gigawatts of offshore wind – or around 50 per cent of the current installed capacity – be built by 2020.
By separating the design, construction and operation of the cables linking to onshore sub-stations from construction of the farms themselves, Ofgem hopes to bring down costs.
The first phase covers nine wind farms including Barrow and Robin Rigg, which are already operating, and several more already in the process of being built. Bidders in the selection process include ABN Amro Infrastructure Capital Management, Balfour Beatty, Macquarie and National Grid.
The winning bidders will be announced in the spring, before a second round of contracts is put up for sale next summer. These first two tranches of tenders will cover infrastructure already either up and running or in the process of being built. After that, the regime will apply to all new construction programmes.
Seeing through Hu's hazy policy
Activists expect progress despite the president's vague pledge on emissions
THE WALL STREET JOURNAL ASIA
Is Chinese President Hu Jintao's promise to make a "significant cut" in carbon-dioxide emissions by 2020 just a lot of hot air?
While disappointed that China's leader didn't pledge a hard number in his speech before the United Nations on Tuesday, climate activists still think there's some fire beneath the smoke. And in China, where local bureaucrats and executives at state-owned companies and banks are keenly sensitive to political shifts, the smoke will send an important signal that low-carbon projects will get priority for bank loans and regulatory approval.
"This is a step in the right direction and seriously challenges industrialized countries, especially the U.S., to take on their fair share of reducing emissions and protecting the world from climate catastrophe," said Greenpeace China's climate expert Yang Ailun.
Mr. Hu said China will try to decrease the amount of carbon dioxide that is used for each dollar of economic output. In other words, it's a relative measure that doesn't limit total emissions. If China's economy keeps growing fast, it will pump out more greenhouse gases, just at a slower rate than without the measure. Since China has already surpassed the U.S. as the world's biggest contributor to greenhouse gases, climate activists applaud any measures to slow down, even if a total cap is their ultimate goal.
Already, there are signs that China is serious. A day after Mr. Hu's speech, the government's tax authorities published a detailed blueprint on how to roll out a carbon tax by 2012. That is the year when the global climate treaty to be negotiated in December in Copenhagen will take effect, succeeding the current one. China faces mounting cries from Europe and the U.S. for greenhouse-gas duties on imports from countries that don't have a carbon cap to level the playing field.
A domestic carbon tax could head off those duties that would raise the price of China's exports, an essential part of the nation's economy. The proposed tax would exempt households and there's no guarantee a tax on commercial use of fossil-fuel emissions will ultimately take effect. Similar resource taxes have undergone drawn-out debate before they were finally rolled out.—Shai Oster, with contributions from Jing Yang
THE WALL STREET JOURNAL ASIA
Is Chinese President Hu Jintao's promise to make a "significant cut" in carbon-dioxide emissions by 2020 just a lot of hot air?
While disappointed that China's leader didn't pledge a hard number in his speech before the United Nations on Tuesday, climate activists still think there's some fire beneath the smoke. And in China, where local bureaucrats and executives at state-owned companies and banks are keenly sensitive to political shifts, the smoke will send an important signal that low-carbon projects will get priority for bank loans and regulatory approval.
"This is a step in the right direction and seriously challenges industrialized countries, especially the U.S., to take on their fair share of reducing emissions and protecting the world from climate catastrophe," said Greenpeace China's climate expert Yang Ailun.
Mr. Hu said China will try to decrease the amount of carbon dioxide that is used for each dollar of economic output. In other words, it's a relative measure that doesn't limit total emissions. If China's economy keeps growing fast, it will pump out more greenhouse gases, just at a slower rate than without the measure. Since China has already surpassed the U.S. as the world's biggest contributor to greenhouse gases, climate activists applaud any measures to slow down, even if a total cap is their ultimate goal.
Already, there are signs that China is serious. A day after Mr. Hu's speech, the government's tax authorities published a detailed blueprint on how to roll out a carbon tax by 2012. That is the year when the global climate treaty to be negotiated in December in Copenhagen will take effect, succeeding the current one. China faces mounting cries from Europe and the U.S. for greenhouse-gas duties on imports from countries that don't have a carbon cap to level the playing field.
A domestic carbon tax could head off those duties that would raise the price of China's exports, an essential part of the nation's economy. The proposed tax would exempt households and there's no guarantee a tax on commercial use of fossil-fuel emissions will ultimately take effect. Similar resource taxes have undergone drawn-out debate before they were finally rolled out.—Shai Oster, with contributions from Jing Yang
China's largest cloud seeding assault aims to stop rain on the national parade
Cloud-seeding aircraft to intercept rainclouds that threaten to cast shadow over communist party's 60th celebrations in Beijing
Jonathan Watts, Asia environment correspondent
guardian.co.uk, Wednesday 23 September 2009 17.41 BST
China's air force is gearing up for its biggest ever assault on the clouds to ensure blue skies above Beijing for the 60th anniversary of communist party rule, local media reported today.
Eighteen cloud-seeding aircraft and 48 fog-dispersal vehicles are on stand-by to intercept rainclouds that threaten to cast a shadow over the festivities, which will include the biggest display of military power in at least 10 years.
The weather modification could exceed the huge cloudbusting operation for the opening ceremony of the Olympic games last year, when more than 1,100 rain-dispersal rockets were fired into the sky.
"It is the first time in Chinese history that artificial weather modification on such a large scale has been attempted," said Cui Lianqing, an air force meteorologist, speaking to the Global Times newspaper.
Meteorologists will coordinate the mission using satellite data. The Beijing Weather Modification Office will supplement the air force's campaign with rockets and planes that load the clouds with silver iodide or liquid nitrogen — dry ice — to induce precipitation above reservoirs and rivers.
China has the world's most extensive rain creation infrastructure, employing about 50,000 people nationwide. Their job is usually to alleviate droughts in the arid north of the country. For national day they would have to encourage rain to fall from clouds before they reached Beijing.
The National Day events mark the founding of the People's Republic of China on 1 October, 1949. The communist party wants to use the occasion to showcase its achievements since Mao Zedong took power.
The centre of the city will be closed off for a huge parade, musical performance and show of military power. Clear skies are needed for the
firework display and fly past by air force jets.
Smog is another concern. Although air pollution has eased since the Olympics, when more than 100 factories were relocated and restrictions were imposed on cars, the Beijing authorities are taking no chances.
Environment officials have said they will inspect construction sites, regulate coal-burning facilities and impose extra restrictions on vehicles with high levels of exhaust fumes.
Inner Mongolia, Henan, Hebei and other neighbouring regions that host large-scale industrial parks have agreed to cooperate in reducing emissions ahead of the anniversary.
Fearing a major pollution incident might dampen the festive mood, the Ministry of Environmental Protection has mounted a week-long inspection of areas where accidents often happen or where dangerous chemicals are produced. Water supplies are being checked more stringently than usual.
Some of the security measures have frustrated many Beijingers. During rehearsals in recent weeks, residents along the route of the parade were instructed not to go on to their balconies or take pictures of tanks and other vehicles.
The authorities have banned the sale of knives in supermarkets and declared a no-fly zone for kites and racing pigeons. Whether non-compliant birds will suffer the same fate as wandering clouds has not been revealed.
Ten years after taking power, Mao Zedong declared a war on nature, including a disastrous campaign to eradicate sparrows, and a commitment to induce rain. "Manmade rain is very important. I hope the meteorological experts do their utmost to make it work," he said.
Today, however, the military admits there is a limit to their ability to control nature. "There are still a lot of uncertainties with the
weather," Cui told the Global Times. Past records suggest there is a 30% chance of rain on October 1, it said.
Jonathan Watts, Asia environment correspondent
guardian.co.uk, Wednesday 23 September 2009 17.41 BST
China's air force is gearing up for its biggest ever assault on the clouds to ensure blue skies above Beijing for the 60th anniversary of communist party rule, local media reported today.
Eighteen cloud-seeding aircraft and 48 fog-dispersal vehicles are on stand-by to intercept rainclouds that threaten to cast a shadow over the festivities, which will include the biggest display of military power in at least 10 years.
The weather modification could exceed the huge cloudbusting operation for the opening ceremony of the Olympic games last year, when more than 1,100 rain-dispersal rockets were fired into the sky.
"It is the first time in Chinese history that artificial weather modification on such a large scale has been attempted," said Cui Lianqing, an air force meteorologist, speaking to the Global Times newspaper.
Meteorologists will coordinate the mission using satellite data. The Beijing Weather Modification Office will supplement the air force's campaign with rockets and planes that load the clouds with silver iodide or liquid nitrogen — dry ice — to induce precipitation above reservoirs and rivers.
China has the world's most extensive rain creation infrastructure, employing about 50,000 people nationwide. Their job is usually to alleviate droughts in the arid north of the country. For national day they would have to encourage rain to fall from clouds before they reached Beijing.
The National Day events mark the founding of the People's Republic of China on 1 October, 1949. The communist party wants to use the occasion to showcase its achievements since Mao Zedong took power.
The centre of the city will be closed off for a huge parade, musical performance and show of military power. Clear skies are needed for the
firework display and fly past by air force jets.
Smog is another concern. Although air pollution has eased since the Olympics, when more than 100 factories were relocated and restrictions were imposed on cars, the Beijing authorities are taking no chances.
Environment officials have said they will inspect construction sites, regulate coal-burning facilities and impose extra restrictions on vehicles with high levels of exhaust fumes.
Inner Mongolia, Henan, Hebei and other neighbouring regions that host large-scale industrial parks have agreed to cooperate in reducing emissions ahead of the anniversary.
Fearing a major pollution incident might dampen the festive mood, the Ministry of Environmental Protection has mounted a week-long inspection of areas where accidents often happen or where dangerous chemicals are produced. Water supplies are being checked more stringently than usual.
Some of the security measures have frustrated many Beijingers. During rehearsals in recent weeks, residents along the route of the parade were instructed not to go on to their balconies or take pictures of tanks and other vehicles.
The authorities have banned the sale of knives in supermarkets and declared a no-fly zone for kites and racing pigeons. Whether non-compliant birds will suffer the same fate as wandering clouds has not been revealed.
Ten years after taking power, Mao Zedong declared a war on nature, including a disastrous campaign to eradicate sparrows, and a commitment to induce rain. "Manmade rain is very important. I hope the meteorological experts do their utmost to make it work," he said.
Today, however, the military admits there is a limit to their ability to control nature. "There are still a lot of uncertainties with the
weather," Cui told the Global Times. Past records suggest there is a 30% chance of rain on October 1, it said.
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