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Ofgem has warned energy suppliers to pick up the pace of improving the energy efficiency of customers' homes or risk missing government-set targets.
A report this week by the regulator showed that suppliers had delivered savings worth 197 million tonnes of CO2 – Mt CO2 by the end of the third year of the Carbon Emissions Reduction Target – 67 per cent of the overall 293 Mt CO2 target.
The scheme compels all domestic energy suppliers with more than 50,000 customers to fit £3bn worth of energy efficiency measures. By the end of March, cavity wall insulation was installed in 1.5 million households and professional loft insulation in more than two million.
Accordingly, insulation accounted for 61 per cent of the carbon savings achieved, with lighting efficiency saving another 26 per cent and heating 11 per cent.
Energy companies beat the original target of 185 Mt CO2 by the end March 2011, but progress slowed in year three, when 48 Mt CO2 of savings were achieved, compared with 55 Mt CO2 in the first year and 56 Mt CO2 in year two.
Ofgem voiced concern that installation levels would have to increase to meet the revised goal of 293 Mt CO2 by December 2012, which was set by the Department of Energy and Climate Change (DECC) in July last year.
"Suppliers will need to pick up their activity levels in years four and five of the programme to the levels seen in years one and two, if they are to comply with their new extension obligation," the report says.
E.ON and npower are leading the way, realising 73 per cent and 71 per cent of their respective obligations, while ScottishPower brought up the rear with 63 per cent.
British Gas scored 67 per cent, Scottish and Southern Energy 64 per cent, and EDF 65 per cent.
Despite mixed progress, a DECC spokeswoman told BusinessGreen the government was "very confident" energy suppliers would "up their game" to meet the 293 Mt CO2 by the end of next year.
"Consumers should make the most of offers available to insulate their homes and protect themselves from rising energy prices," she added.
Friday, August 26, 2011
Isra-Mart srl: US breaks ground on first industrial-scale CCS project
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The US government's carbon capture and storage (CCS) efforts stepped up a gear this week, with the start of construction on the government's first industrial-scale scheme and funds worth $41m set aside for another 16 research projects.
Work on the plant in Decatur, Illinois, which received $141m of public money and another $66.5m from private sector sources, started just a few weeks after American Electric Power abandoned plans to build its $668m CCS facility.
When operational in 2013, the Decatur plant will capture and store one million tonnes of carbon dioxide (CO2) per year generated by ethanol production at the nearby Archer Daniels Midland biofuels plant.
Since the captured CO2 will be produced from biologic fermentation, the plant claims to have a negative carbon footprint, meaning that the storage results in a net reduction of carbon in the atmosphere.
The gas will be held 7,000 feet beneath the surface in the saline Mount Simon Sandstone formation, which the Department of Energy (DoE) estimates has the capacity to sequester all of the 250 million tonnes of CO2 produced each year by industry in the Illinois Basin.
The Obama administration is deploying cost-effective carbon capture, utilisation and storage technologies within 10 years and wants to bring five to 10 commercial demonstration projects online by 2016.
The DoE said its selection yesterday of 16 projects across 13 states to share $41m funding over three years would further the aim.
Each project will focus on developing technologies capable of capturing at least 90 per cent of CO2 produced, as well as reducing the added costs at power plants to no more than a 35 per cent increase in the cost of electricity produced.
"Charting a path toward clean coal is essential to achieving our goals of providing clean energy, creating American jobs and reducing greenhouse gas emissions," US energy secretary Steven Chu said in a statement. "It will also help position the United States as a leader in the global clean energy race."
The US government's carbon capture and storage (CCS) efforts stepped up a gear this week, with the start of construction on the government's first industrial-scale scheme and funds worth $41m set aside for another 16 research projects.
Work on the plant in Decatur, Illinois, which received $141m of public money and another $66.5m from private sector sources, started just a few weeks after American Electric Power abandoned plans to build its $668m CCS facility.
When operational in 2013, the Decatur plant will capture and store one million tonnes of carbon dioxide (CO2) per year generated by ethanol production at the nearby Archer Daniels Midland biofuels plant.
Since the captured CO2 will be produced from biologic fermentation, the plant claims to have a negative carbon footprint, meaning that the storage results in a net reduction of carbon in the atmosphere.
The gas will be held 7,000 feet beneath the surface in the saline Mount Simon Sandstone formation, which the Department of Energy (DoE) estimates has the capacity to sequester all of the 250 million tonnes of CO2 produced each year by industry in the Illinois Basin.
The Obama administration is deploying cost-effective carbon capture, utilisation and storage technologies within 10 years and wants to bring five to 10 commercial demonstration projects online by 2016.
The DoE said its selection yesterday of 16 projects across 13 states to share $41m funding over three years would further the aim.
Each project will focus on developing technologies capable of capturing at least 90 per cent of CO2 produced, as well as reducing the added costs at power plants to no more than a 35 per cent increase in the cost of electricity produced.
"Charting a path toward clean coal is essential to achieving our goals of providing clean energy, creating American jobs and reducing greenhouse gas emissions," US energy secretary Steven Chu said in a statement. "It will also help position the United States as a leader in the global clean energy race."
Isra-Mart srl: WikiLeaks cables reveal fears over China's nuclear safety
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China has "vastly increased" the risk of a nuclear accident by opting for cheap technology that will be 100 years old by the time dozens of its reactors reach the end of their lifespan, according to diplomatic cables from the US Embassy in Beijing.
The warning comes weeks after the government in Beijing resumed its ambitious nuclear expansion programme, which was temporarily halted for safety inspections in the wake of the meltdown of three reactors in Fukushima, Japan.
Cables released this week by WikiLeaks highlight the secrecy of the bidding process for power plant contracts, the influence of government lobbying, and potential weaknesses in the management and regulatory oversight of China's fast-expanding nuclear sector.
In August 2008, the embassy noted that China was in the process of building 50-60 new nuclear plants by 2020. This target, which has since increased, was a huge business opportunity. To keep up with the French and Russians, the cable urged continuous high-level advocacy on behalf of US company Westinghouse to push its AP-1000 reactor.
This is crucial, according to the cable dated 29 August 2008 from the American Embassy in Beijing, because "all reactor purchases to date have been largely the result of internal high-level political decisions absent any open process".
For the US Embassy, a bigger concern was that China seemed more interested in building its own reactors – the CPR-1000 – based on old Westinghouse technology, at Daya Bay and Ling Ao.
"As the CPR-1000 increases market share, China is assuring that rather than building a fleet of state-of-the-art reactors, they will be burdened with technology that, by the end of its lifetime, will be 100 years old," reads another cable dated 7 August 2008.
For the past 10 years, the CPR-1000 has been the most popular design in China. In 2009, state news agency Xinhua reported that all but two of the 22 nuclear reactors under construction applied CPR-1000 technology.
The cable suggests this was a dangerous choice: "By bypassing the passive safety technology of the AP1000, which, according to Westinghouse, is 100 times safer than the CPR-1000, China is vastly increasing the aggregate risk of its nuclear power fleet. "
"Passive safety technology" ensures that a reactor will automatically shut down in the event of a disaster, without human intervention. Plants without this feature are considered less safe as they rely on human intervention, which can be difficult to provide in a crisis situation.
China says it has updated and improved the technology on which the CPR-1000 is based, but the government recognises it is less safe than newer models. China's national nuclear safety administration and national energy administration are currently drafting new safety plans, which are thought likely to include a stipulation that all future plants have to meet the higher standards of third-generation reactors like the AP-1000 or thorium technology.
But it will still have to manage dozens of second-generation reactors for decades to come. Four CPR-1000s were approved by the state council just days before the Fukushima explosions. That accident, which was ranked on the same level as Chernobyl, has prompted a dramatic rethink of nuclear policy in Japan, Germany and Italy.
There is no sign of a change of heart in China, which plans to build more reactors than the rest of the world put together between now and 2020. The latest to be completed was the CPR-1000 at Ling Ao earlier this month.
The US Embassy and Westinghouse may have wanted to play up the risks to improve the strength of their own bids, but safety concerns are also expressed within China. This year, Professor He Zuoxiu, who helped to develop China's first atomic bomb, claimed plans to ramp up production of nuclear energy twentyfold by 2030 could be as disastrous as the "Great Leap Forward" – Mao Zedong's disastrous attempt to jump-start industrial development in the late 1950s.
Writing in the Science Times, he asked: "Are we really ready for this kind of giddy speed [of nuclear power development]? I think not. We're seriously underprepared, especially on the safety front."
The rush to build new plants may also create problems for effective management, operation and regulatory oversight. Westinghouse representative Gavin Liu was quoted in a cable as saying: "The biggest potential bottleneck is human resources – coming up with enough trained personnel to build and operate all these new plants, as well as regulate the industry."
Such worries increased in July when another of China's new industrial projects – a high-speed railway – led to a collision that killed 39 people. It too was built domestically, based on foreign designs and rolled out faster than its operators appear to have been capable of dealing with.
China has "vastly increased" the risk of a nuclear accident by opting for cheap technology that will be 100 years old by the time dozens of its reactors reach the end of their lifespan, according to diplomatic cables from the US Embassy in Beijing.
The warning comes weeks after the government in Beijing resumed its ambitious nuclear expansion programme, which was temporarily halted for safety inspections in the wake of the meltdown of three reactors in Fukushima, Japan.
Cables released this week by WikiLeaks highlight the secrecy of the bidding process for power plant contracts, the influence of government lobbying, and potential weaknesses in the management and regulatory oversight of China's fast-expanding nuclear sector.
In August 2008, the embassy noted that China was in the process of building 50-60 new nuclear plants by 2020. This target, which has since increased, was a huge business opportunity. To keep up with the French and Russians, the cable urged continuous high-level advocacy on behalf of US company Westinghouse to push its AP-1000 reactor.
This is crucial, according to the cable dated 29 August 2008 from the American Embassy in Beijing, because "all reactor purchases to date have been largely the result of internal high-level political decisions absent any open process".
For the US Embassy, a bigger concern was that China seemed more interested in building its own reactors – the CPR-1000 – based on old Westinghouse technology, at Daya Bay and Ling Ao.
"As the CPR-1000 increases market share, China is assuring that rather than building a fleet of state-of-the-art reactors, they will be burdened with technology that, by the end of its lifetime, will be 100 years old," reads another cable dated 7 August 2008.
For the past 10 years, the CPR-1000 has been the most popular design in China. In 2009, state news agency Xinhua reported that all but two of the 22 nuclear reactors under construction applied CPR-1000 technology.
The cable suggests this was a dangerous choice: "By bypassing the passive safety technology of the AP1000, which, according to Westinghouse, is 100 times safer than the CPR-1000, China is vastly increasing the aggregate risk of its nuclear power fleet. "
"Passive safety technology" ensures that a reactor will automatically shut down in the event of a disaster, without human intervention. Plants without this feature are considered less safe as they rely on human intervention, which can be difficult to provide in a crisis situation.
China says it has updated and improved the technology on which the CPR-1000 is based, but the government recognises it is less safe than newer models. China's national nuclear safety administration and national energy administration are currently drafting new safety plans, which are thought likely to include a stipulation that all future plants have to meet the higher standards of third-generation reactors like the AP-1000 or thorium technology.
But it will still have to manage dozens of second-generation reactors for decades to come. Four CPR-1000s were approved by the state council just days before the Fukushima explosions. That accident, which was ranked on the same level as Chernobyl, has prompted a dramatic rethink of nuclear policy in Japan, Germany and Italy.
There is no sign of a change of heart in China, which plans to build more reactors than the rest of the world put together between now and 2020. The latest to be completed was the CPR-1000 at Ling Ao earlier this month.
The US Embassy and Westinghouse may have wanted to play up the risks to improve the strength of their own bids, but safety concerns are also expressed within China. This year, Professor He Zuoxiu, who helped to develop China's first atomic bomb, claimed plans to ramp up production of nuclear energy twentyfold by 2030 could be as disastrous as the "Great Leap Forward" – Mao Zedong's disastrous attempt to jump-start industrial development in the late 1950s.
Writing in the Science Times, he asked: "Are we really ready for this kind of giddy speed [of nuclear power development]? I think not. We're seriously underprepared, especially on the safety front."
The rush to build new plants may also create problems for effective management, operation and regulatory oversight. Westinghouse representative Gavin Liu was quoted in a cable as saying: "The biggest potential bottleneck is human resources – coming up with enough trained personnel to build and operate all these new plants, as well as regulate the industry."
Such worries increased in July when another of China's new industrial projects – a high-speed railway – led to a collision that killed 39 people. It too was built domestically, based on foreign designs and rolled out faster than its operators appear to have been capable of dealing with.
Wednesday, August 24, 2011
Isra-Mart srl: EU attempts to salvage Kyoto Protocol
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The EU is reportedly working on a compromise package of proposals designed to end the deadlock between developing and industrialised nations over the future of the Kyoto Protocol.
A senior EU official told influential newswire Point Carbon News that diplomats are working on a plan that would see Kyoto extended beyond its current expiration date of 2012, on the understanding that it is then allowed to lapse in 2018 to be replaced by a new global pact.
European environment ministers are expected to consider the new plan when they meet in October to finalise the EU's formal negotiating period ahead of the next UN climate summit in Durban at the end of the year.
"It's not a formal EU position yet, although it is something that has gained ground in recent months," the source told Point Carbon News, adding that the compromise agreement would allow countries to maintain the legal framework for Kyoto-backed carbon trading schemes such as the Clean Development Mechanism, without ratifying a full second period for Kyoto.
The future of the Kyoto Protocol is expected to again prove one of the most contentious elements of the Durban Summit.
At last year's Cancun Summit, diplomats clashed over proposals to extend the Protocol beyond 2012, after Japan, Russia and the US all signaled they would not sign up to a second commitment period for the controversial treaty, arguing that a replacement agreement was required that imposes emissions targets on all nations.
Developing countries countered by insisting that the extension of the Kyoto Protocol was non-negotiable as it currently represents the only legal mechanism requiring industrialised nations to curb their emissions.
The on-going deadlock over the future of the protocol has fuelled fears that the agreement will be allowed to lapse at the end of 2012, removing the legal framework for carbon trading schemes such as the UN-backed Clean Development Mechanism (CDM) offsetting scheme, which allows industrialised nations to fund emission reduction projects in developing countries.
The EU's aim is to break the deadlock by temporarily extending Kyoto's legal framework, at the same time as setting a firm deadline for the negotiation of an alternative international treaty supported by all nations.
A spokeswoman for the UK's Department of Energy and Climate Change refused to be drawn on the on-going EU negotiations, but hinted that work to find a suitable compromise agreement over the future of the Kyoto Protocol was continuing.
"The UK, together with the EU, has already stated it is willing to consider a second commitment period beyond 2012 for the Kyoto Protocol provided it is in the context of a wider outcome involving all major economies," she told BusinessGreen. "However, this would have to be part of an interim step towards a legally binding global deal."
The proposals are likely to receive a mixed response from green businesses and NGOs, many of which are fearful that the long-running climate change negotiations could collapse without any formal agreement in place post-2012, but are equally concerned that another compromise deal will simply delay the urgent action required to deliver deep cuts in global emissions.
The news comes just a day after South Africa downplayed the prospect of a formal treaty being agreed in Durban, warning that the summit was more likely to deliver only incremental progress.
In a speech delivered yesterday, foreign minister Maite Nkoana-Mashabane said that compromises would have to be reached in order to move the negotiations forward and accelerate support for those countries suffering the most from climate change impacts.
She also warned that South Africa was under pressure from other developing countries to protect their right to continue to accelerate development efforts, at the same time as curbing emissions.
"People need to eat," she said. "People need sustainable jobs for survival."
The EU is reportedly working on a compromise package of proposals designed to end the deadlock between developing and industrialised nations over the future of the Kyoto Protocol.
A senior EU official told influential newswire Point Carbon News that diplomats are working on a plan that would see Kyoto extended beyond its current expiration date of 2012, on the understanding that it is then allowed to lapse in 2018 to be replaced by a new global pact.
European environment ministers are expected to consider the new plan when they meet in October to finalise the EU's formal negotiating period ahead of the next UN climate summit in Durban at the end of the year.
"It's not a formal EU position yet, although it is something that has gained ground in recent months," the source told Point Carbon News, adding that the compromise agreement would allow countries to maintain the legal framework for Kyoto-backed carbon trading schemes such as the Clean Development Mechanism, without ratifying a full second period for Kyoto.
The future of the Kyoto Protocol is expected to again prove one of the most contentious elements of the Durban Summit.
At last year's Cancun Summit, diplomats clashed over proposals to extend the Protocol beyond 2012, after Japan, Russia and the US all signaled they would not sign up to a second commitment period for the controversial treaty, arguing that a replacement agreement was required that imposes emissions targets on all nations.
Developing countries countered by insisting that the extension of the Kyoto Protocol was non-negotiable as it currently represents the only legal mechanism requiring industrialised nations to curb their emissions.
The on-going deadlock over the future of the protocol has fuelled fears that the agreement will be allowed to lapse at the end of 2012, removing the legal framework for carbon trading schemes such as the UN-backed Clean Development Mechanism (CDM) offsetting scheme, which allows industrialised nations to fund emission reduction projects in developing countries.
The EU's aim is to break the deadlock by temporarily extending Kyoto's legal framework, at the same time as setting a firm deadline for the negotiation of an alternative international treaty supported by all nations.
A spokeswoman for the UK's Department of Energy and Climate Change refused to be drawn on the on-going EU negotiations, but hinted that work to find a suitable compromise agreement over the future of the Kyoto Protocol was continuing.
"The UK, together with the EU, has already stated it is willing to consider a second commitment period beyond 2012 for the Kyoto Protocol provided it is in the context of a wider outcome involving all major economies," she told BusinessGreen. "However, this would have to be part of an interim step towards a legally binding global deal."
The proposals are likely to receive a mixed response from green businesses and NGOs, many of which are fearful that the long-running climate change negotiations could collapse without any formal agreement in place post-2012, but are equally concerned that another compromise deal will simply delay the urgent action required to deliver deep cuts in global emissions.
The news comes just a day after South Africa downplayed the prospect of a formal treaty being agreed in Durban, warning that the summit was more likely to deliver only incremental progress.
In a speech delivered yesterday, foreign minister Maite Nkoana-Mashabane said that compromises would have to be reached in order to move the negotiations forward and accelerate support for those countries suffering the most from climate change impacts.
She also warned that South Africa was under pressure from other developing countries to protect their right to continue to accelerate development efforts, at the same time as curbing emissions.
"People need to eat," she said. "People need sustainable jobs for survival."
Isra-Mart srl: Fuel-efficiency drive promises hefty returns for lightweight materials
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The global market for materials and chemicals capable of reducing the weight of cars and trucks is set to more than double over the next six years as a result of demanding new fuel-efficiency standards in the EU, US and Japan.
That is the conclusion of a new report from research firm Frost & Sullivan, which predicts the market for automotive lightweighting will climb from $38bn in 2010 to $95.34bn in 2017 – an increase of 150 per cent.
According to the study, a 10 per cent reduction in vehicle weight, coupled with an accompanying reduction in the size of the vehicle's powertrain, delivers fuel-efficiency savings of between five and seven per cent, and as such manufacturers are investing heavily in lightweighting as a means of ensuring that recently introduced fuel-efficiency standards are met.
A flurry of new fuel-efficiency standards means that European auto firms have to reduce average carbon emissions across their fleets, from 160g/km currently to 130g/km between 2012 and 2015, while similar rules in the US mean average fleet efficiency has to reach 35-39 mpg by 2016.
The Japanese government is also pursuing standards that would require a 25 per cent improvement in efficiency by 2020.
"While these laws go a long way towards easing environmental concerns, they also challenge OEMs to find innovative solutions to comply with them and still stay profitable," Frost & Sullivan senior research analyst Sandeepan Mondal said in a statement, adding that lightweighting would also help manufacturers comply with regulations governing auto waste.
The report, Prevalent Substitution Trends within Materials and Chemicals in Automotive Lightweighting, states that aluminium remains the most widely used lightweight material, and that advanced polymers can also play an increasingly significant role.
The global market for materials and chemicals capable of reducing the weight of cars and trucks is set to more than double over the next six years as a result of demanding new fuel-efficiency standards in the EU, US and Japan.
That is the conclusion of a new report from research firm Frost & Sullivan, which predicts the market for automotive lightweighting will climb from $38bn in 2010 to $95.34bn in 2017 – an increase of 150 per cent.
According to the study, a 10 per cent reduction in vehicle weight, coupled with an accompanying reduction in the size of the vehicle's powertrain, delivers fuel-efficiency savings of between five and seven per cent, and as such manufacturers are investing heavily in lightweighting as a means of ensuring that recently introduced fuel-efficiency standards are met.
A flurry of new fuel-efficiency standards means that European auto firms have to reduce average carbon emissions across their fleets, from 160g/km currently to 130g/km between 2012 and 2015, while similar rules in the US mean average fleet efficiency has to reach 35-39 mpg by 2016.
The Japanese government is also pursuing standards that would require a 25 per cent improvement in efficiency by 2020.
"While these laws go a long way towards easing environmental concerns, they also challenge OEMs to find innovative solutions to comply with them and still stay profitable," Frost & Sullivan senior research analyst Sandeepan Mondal said in a statement, adding that lightweighting would also help manufacturers comply with regulations governing auto waste.
The report, Prevalent Substitution Trends within Materials and Chemicals in Automotive Lightweighting, states that aluminium remains the most widely used lightweight material, and that advanced polymers can also play an increasingly significant role.
Isra-Mart srl: China's love affair with the car shuns green vehicles
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Beijing used to be famous for the millions of bicycles thronging its streets. But it is the success of the motor car there and in other Chinese mega-cities that has now tipped the number of cars in the world over the one billion mark.
According to a report by the trade journal Ward's, 35 million new cars and lorries were sold worldwide last year - the second-biggest increase ever recorded. That is 95,500 extra vehicles being added to the global traffic jam every day.
Almost half of the new growth is in China, which recently overtook the US as the world's biggest car market thanks to the sales of 13.8m new passenger vehicles. Despite the surge in sales, car ownership in China is still only half the global average.
But hopes that the country will also become a pioneer in the shift towards "clean car" technology have suffered a setback as the Chinese show little sign of interest in electric and hybrid vehicles despite ambitious government plans. Last year, Toyota managed to sell only one Prius - the world's most commercially successful hybrid car - in the fastest-growing market. Sports utility vehicle sales, by contrast, are surging.
This is not just affecting Toyota. It had been hoped that government subsidies and policy support would help China's manufacturers, such as BYD, to leapfrog better established overseas rivals by mass-producing electric cars.
But BYD has scaled back its ambitions after failing to find a market because of costs, safety concerns and underdeveloped battery technology. Reflecting the lack of progress, Prime Minister Wen Jiabao recently published an article in a Communist party journal calling for a rethink of China's "road map" towards alternative powertrain vehicles - those that do not rely only on a conventional internal combustion engine.
In a report earlier this week, IHS Automotive, a Shanghai-based consultancy, said the takeup for such vehicles was far behind the government's time-frame. It noted, too, the lack of interest in the Prius, which has witnessed sales in China fall from about 200 in 2009 to just one in 2010. It is not known who made that solitary purchase - industry analysts said it was unlikely to be an individual as there is little technical support for the model. "It may be a domestic rival that bought the hybrid to strip it down and see how it works," said one industry observer who did not want to be named.
Among registrations of new passenger cars were 850,000 SUVs - a rise of 24 per cent - including 425 Hummers. Since then car sales have flattened but the luxury sector is still surging.
Thanks largely to its business in China, Mercedes announced earlier this year the highest monthly worldwide car sales in the company's 110-year history. BMW, Audi and Rolls-Royce are also recording strong sales which have pushed China to the forefront of their global strategies.
This runs directly opposite to the government's stated goal of creating a more equal, environmentally friendly nation, suggesting a change of strategy may be needed. The state is unlikely to completely abandon its promotion of "clean" car technology, but it may have to revise its plans.
The government's current aim is to put one million "new energy" vehicles on the roads by 2015 - electrics and plug-in hybrids - but this now looks overambitious. Despite subsidies of 60,000 yuan (£5,700) for pure electric vehicles and 50,000 yuan (£4,700) for plug-in hybrids in five pilot cities, there have been few buyers because regular cars are still cheaper and more reliable. According to IHS Automotive, electric vehicles sales are unlikely to reach a tenth of the state's target over the next five years. Rather than jump directly to electric cars, it now expects bureaucrats to pay more attention to hybrid cars and fuel-efficient conventional vehicles. Although "in the long term pure [electric vehicles] may still become mainstream, it is welcome to see the government slowly but surely recognising that its targets are inflated," IHS noted.
Many are still betting on the Chinese market. GreenTech Automotive of the US recently announced a venture with Shengyang ZhongRui to create a plant in Inner Mongolia with capacity to build 300,000 electric and hybrid cars a year.
Between 2000 and 2010, the number of cars and motorcycles in China increased twentyfold. In the next 20 years it is forecast to more than double again, which means there will be more cars in China in 2030 than there were in the entire world in 2000.
The big brands argue that there is room for growth. Only one in 16 Chinese people owns a car, which is less than half the global average. If the country were to match the three-in-four ownership levels of the US, that would mean an extra 900m vehicles.
Given the frequent traffic congestion and smog even at current levels, it is hard to imagine that ever happening. Even if all the new cars were hybrid or electric, the congestion would be incredible. Beijing has already begun restricting new licence registrations. Sales have flattened.
"Green growth" now looks a less likely prospect than a simple market slowdown.
Beijing used to be famous for the millions of bicycles thronging its streets. But it is the success of the motor car there and in other Chinese mega-cities that has now tipped the number of cars in the world over the one billion mark.
According to a report by the trade journal Ward's, 35 million new cars and lorries were sold worldwide last year - the second-biggest increase ever recorded. That is 95,500 extra vehicles being added to the global traffic jam every day.
Almost half of the new growth is in China, which recently overtook the US as the world's biggest car market thanks to the sales of 13.8m new passenger vehicles. Despite the surge in sales, car ownership in China is still only half the global average.
But hopes that the country will also become a pioneer in the shift towards "clean car" technology have suffered a setback as the Chinese show little sign of interest in electric and hybrid vehicles despite ambitious government plans. Last year, Toyota managed to sell only one Prius - the world's most commercially successful hybrid car - in the fastest-growing market. Sports utility vehicle sales, by contrast, are surging.
This is not just affecting Toyota. It had been hoped that government subsidies and policy support would help China's manufacturers, such as BYD, to leapfrog better established overseas rivals by mass-producing electric cars.
But BYD has scaled back its ambitions after failing to find a market because of costs, safety concerns and underdeveloped battery technology. Reflecting the lack of progress, Prime Minister Wen Jiabao recently published an article in a Communist party journal calling for a rethink of China's "road map" towards alternative powertrain vehicles - those that do not rely only on a conventional internal combustion engine.
In a report earlier this week, IHS Automotive, a Shanghai-based consultancy, said the takeup for such vehicles was far behind the government's time-frame. It noted, too, the lack of interest in the Prius, which has witnessed sales in China fall from about 200 in 2009 to just one in 2010. It is not known who made that solitary purchase - industry analysts said it was unlikely to be an individual as there is little technical support for the model. "It may be a domestic rival that bought the hybrid to strip it down and see how it works," said one industry observer who did not want to be named.
Among registrations of new passenger cars were 850,000 SUVs - a rise of 24 per cent - including 425 Hummers. Since then car sales have flattened but the luxury sector is still surging.
Thanks largely to its business in China, Mercedes announced earlier this year the highest monthly worldwide car sales in the company's 110-year history. BMW, Audi and Rolls-Royce are also recording strong sales which have pushed China to the forefront of their global strategies.
This runs directly opposite to the government's stated goal of creating a more equal, environmentally friendly nation, suggesting a change of strategy may be needed. The state is unlikely to completely abandon its promotion of "clean" car technology, but it may have to revise its plans.
The government's current aim is to put one million "new energy" vehicles on the roads by 2015 - electrics and plug-in hybrids - but this now looks overambitious. Despite subsidies of 60,000 yuan (£5,700) for pure electric vehicles and 50,000 yuan (£4,700) for plug-in hybrids in five pilot cities, there have been few buyers because regular cars are still cheaper and more reliable. According to IHS Automotive, electric vehicles sales are unlikely to reach a tenth of the state's target over the next five years. Rather than jump directly to electric cars, it now expects bureaucrats to pay more attention to hybrid cars and fuel-efficient conventional vehicles. Although "in the long term pure [electric vehicles] may still become mainstream, it is welcome to see the government slowly but surely recognising that its targets are inflated," IHS noted.
Many are still betting on the Chinese market. GreenTech Automotive of the US recently announced a venture with Shengyang ZhongRui to create a plant in Inner Mongolia with capacity to build 300,000 electric and hybrid cars a year.
Between 2000 and 2010, the number of cars and motorcycles in China increased twentyfold. In the next 20 years it is forecast to more than double again, which means there will be more cars in China in 2030 than there were in the entire world in 2000.
The big brands argue that there is room for growth. Only one in 16 Chinese people owns a car, which is less than half the global average. If the country were to match the three-in-four ownership levels of the US, that would mean an extra 900m vehicles.
Given the frequent traffic congestion and smog even at current levels, it is hard to imagine that ever happening. Even if all the new cars were hybrid or electric, the congestion would be incredible. Beijing has already begun restricting new licence registrations. Sales have flattened.
"Green growth" now looks a less likely prospect than a simple market slowdown.
Isra-Mart srl: London flooding costs could hit 'tens of billions'
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As the Great British Summer continues to alternate between sunny afternoons and severe weather warnings, a new report has today urged the Mayor of London to step up efforts to protect businesses and communities from increasing flood risks.
The call came in a new report published by the London Assembly's environment committee, which highlights the financial and social impact of heavy rain and resulting floods on the capital.
The report said that London is at risk of serious flood damage in the event of extreme rainfall, adding that it is simply a matter of chance that the city has to date managed to avoid rainfall intense enough to cause widespread flooding.
London's extensive impermeable pavements and roads greatly increase its vulnerability to flooding, which could cause damage to properties and risk lives, the report concluded.
The Association of British Insurers told the committee that it is "very concerned" about London's lack of preparedness, warning that rainfall such as that which caused the UK's 2007 floods could cause far greater damage if it hit London.
"The estimated insured cost of the 2007 event was £3bn, which suggests that a similar event in London could cost tens of billions," the report stated.
Despite noting that much of the flood protection responsibility lies with the Environment Agency, the report identifies ways that the Mayor's Office could help the capital to strengthen its flood defences.
These include better communication of flood risks, extending the Green Roofs Fund to improve drainage, and devising an action plan to restore 15km of rivers by 2015.
The report also urges the Mayor to look beyond traditional public grants from central government to fund such schemes.
"There are plenty of highly beneficial flood protection projects that could go ahead, and there are potential new sources of funding in the private and third sectors as well as the wider public sector," it said.
"Strategic leadership with a cross-sectoral reach could play an important role in bringing funders and planners together, and the Mayor would be well-placed to play this role."
As the Great British Summer continues to alternate between sunny afternoons and severe weather warnings, a new report has today urged the Mayor of London to step up efforts to protect businesses and communities from increasing flood risks.
The call came in a new report published by the London Assembly's environment committee, which highlights the financial and social impact of heavy rain and resulting floods on the capital.
The report said that London is at risk of serious flood damage in the event of extreme rainfall, adding that it is simply a matter of chance that the city has to date managed to avoid rainfall intense enough to cause widespread flooding.
London's extensive impermeable pavements and roads greatly increase its vulnerability to flooding, which could cause damage to properties and risk lives, the report concluded.
The Association of British Insurers told the committee that it is "very concerned" about London's lack of preparedness, warning that rainfall such as that which caused the UK's 2007 floods could cause far greater damage if it hit London.
"The estimated insured cost of the 2007 event was £3bn, which suggests that a similar event in London could cost tens of billions," the report stated.
Despite noting that much of the flood protection responsibility lies with the Environment Agency, the report identifies ways that the Mayor's Office could help the capital to strengthen its flood defences.
These include better communication of flood risks, extending the Green Roofs Fund to improve drainage, and devising an action plan to restore 15km of rivers by 2015.
The report also urges the Mayor to look beyond traditional public grants from central government to fund such schemes.
"There are plenty of highly beneficial flood protection projects that could go ahead, and there are potential new sources of funding in the private and third sectors as well as the wider public sector," it said.
"Strategic leadership with a cross-sectoral reach could play an important role in bringing funders and planners together, and the Mayor would be well-placed to play this role."
Isra-Mart srl: Shell defends reporting of North Sea oil spill
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Shell has defended its much-criticised reporting of this month's North Sea oil spill, but has stopped short of providing a full picture of how the decision to announce the spill was made.
The company has recently been under fire from green groups. These have accused the oil giant of failing to provide transparent information on the largest UK oil spill in the past decade, after it emerged that the spill was first detected on Wednesday 10th August, but was not publicly confirmed until two days later.
Dr Richard Dixon of WWF Scotland accused the company of only "grudgingly" releasing information to the public, while Per Fischer, communications officer at Friends of the Earth Scotland, said Shell was guilty of providing "drip-fed information" to the press and public.
Green NGOs also accused Shell of only issuing a public statement on the leak after industry magazine Upstream approached the company on Friday 12 August, seeking confirmation on reports that there was a major spill in the North Sea. The incident has further fuelled allegations that oil companies frequently fail to provide public updates on oil leaks, ensuring that many smaller spills go largely unnoticed.
But a Shell spokesman defended the company's reporting of the spill. He told BusinessGreen that the delay in announcing the spill was simply the result of the company's efforts to ascertain the nature and scale of the leak.
"We informed the relevant authorities (MCA, DECC, HSE) of the leak immediately, in line with standard procedures," he said in an emailed statement. "However, we recognise that we were slow to tell the general public, but wanted to be able to give a clear picture of what was happening and how we would respond before engaging more widely.
"It took some time to understand exactly what we were dealing with, principally because the leak location was amongst some very complex subsea infrastructure, which was covered in grating. Only once we were confident in the information that we had did we want to share it."
However, he declined to respond to questions on whether the public announcement was triggered by Upstream breaking the story, and also failed to provide further details on the precise nature of Shell's policy for publicly reporting oil spills.
Dixon today again accused Shell of badly mishandling the reporting of the spill.
"Shell clearly made a big mistake in not making a public statement as soon as they discover the leak," he told BusinessGreen. "They say they were trying to gather the full facts but it looks more like they were trying to get away with waiting until they could say they had stopped the leak.
"If this is the mess Shell make in their own home waters, they clearly can't be trusted to work in the much more difficult and remote waters of the Arctic."
His comments were echoed by Stan Blackley, chief executive of Friends of the Earth Scotland, who said the NGO was "sceptical" of Shell's claims over why it delayed publicly reporting on the oil spill.
"We continue to suspect that the delay in their releasing information regarding their most recent oil spill was based around their hope that the spill might go unnoticed by others and the weather might make it disappear," he said. "According to the Health and Safety Executive, serious spills of oil and gas from North Sea platforms are occurring at the rate of one a week and Shell has emerged as one of the top offenders in this regard."
The incident has led to renewed calls from environmental groups for the government to impose a moratorium on drilling licenses for deep-water areas in the North Atlantic and Arctic seas. There are fears that any spills near delicate Arctic habitats would be extremely difficult to clean up.
Blackley said Shell should now abandon plans to drill in "ever more dangerous and fragile environments for increasingly hard to extract oil, and channel its considerable wealth and expertise into developing clean and safe ways of powering our country".
The Shell spokesman insisted that the company was fully committed to tackling the risks presented by drilling in the Arctic.
"We recognise oil spill prevention and response capability as a critical part of all plans to develop oil and gas resources in the Arctic," he said. "There are strict regulations in place to report any incident, however small, to the authorities and these are made public. Independent regulators are also on our rigs to ensure we are in compliance."
The company confirmed late last week that the leak has been successfully plugged. Engineers are currently working on plans to recover the estimated 660 tonnes of oil trapped in the stricken pipeline.
The government also announced that an independent investigation is underway into the causes of the spill and Shell's response.
Dixon said that the inquiry should investigate the delay in publicly reporting the leak. "The inquiry will tell us if Shell's technical response was adequate but it can't fail to criticise their woeful communications with the public and the media," he predicted.
In other oil industry news, the official tasked with distributing the $20bn fund set up in the wake of last year's BP oil spill in the Gulf of Mexico yesterday announced that BP has paid out more than $5bn to 204,434 victims of the spill.
Shell has defended its much-criticised reporting of this month's North Sea oil spill, but has stopped short of providing a full picture of how the decision to announce the spill was made.
The company has recently been under fire from green groups. These have accused the oil giant of failing to provide transparent information on the largest UK oil spill in the past decade, after it emerged that the spill was first detected on Wednesday 10th August, but was not publicly confirmed until two days later.
Dr Richard Dixon of WWF Scotland accused the company of only "grudgingly" releasing information to the public, while Per Fischer, communications officer at Friends of the Earth Scotland, said Shell was guilty of providing "drip-fed information" to the press and public.
Green NGOs also accused Shell of only issuing a public statement on the leak after industry magazine Upstream approached the company on Friday 12 August, seeking confirmation on reports that there was a major spill in the North Sea. The incident has further fuelled allegations that oil companies frequently fail to provide public updates on oil leaks, ensuring that many smaller spills go largely unnoticed.
But a Shell spokesman defended the company's reporting of the spill. He told BusinessGreen that the delay in announcing the spill was simply the result of the company's efforts to ascertain the nature and scale of the leak.
"We informed the relevant authorities (MCA, DECC, HSE) of the leak immediately, in line with standard procedures," he said in an emailed statement. "However, we recognise that we were slow to tell the general public, but wanted to be able to give a clear picture of what was happening and how we would respond before engaging more widely.
"It took some time to understand exactly what we were dealing with, principally because the leak location was amongst some very complex subsea infrastructure, which was covered in grating. Only once we were confident in the information that we had did we want to share it."
However, he declined to respond to questions on whether the public announcement was triggered by Upstream breaking the story, and also failed to provide further details on the precise nature of Shell's policy for publicly reporting oil spills.
Dixon today again accused Shell of badly mishandling the reporting of the spill.
"Shell clearly made a big mistake in not making a public statement as soon as they discover the leak," he told BusinessGreen. "They say they were trying to gather the full facts but it looks more like they were trying to get away with waiting until they could say they had stopped the leak.
"If this is the mess Shell make in their own home waters, they clearly can't be trusted to work in the much more difficult and remote waters of the Arctic."
His comments were echoed by Stan Blackley, chief executive of Friends of the Earth Scotland, who said the NGO was "sceptical" of Shell's claims over why it delayed publicly reporting on the oil spill.
"We continue to suspect that the delay in their releasing information regarding their most recent oil spill was based around their hope that the spill might go unnoticed by others and the weather might make it disappear," he said. "According to the Health and Safety Executive, serious spills of oil and gas from North Sea platforms are occurring at the rate of one a week and Shell has emerged as one of the top offenders in this regard."
The incident has led to renewed calls from environmental groups for the government to impose a moratorium on drilling licenses for deep-water areas in the North Atlantic and Arctic seas. There are fears that any spills near delicate Arctic habitats would be extremely difficult to clean up.
Blackley said Shell should now abandon plans to drill in "ever more dangerous and fragile environments for increasingly hard to extract oil, and channel its considerable wealth and expertise into developing clean and safe ways of powering our country".
The Shell spokesman insisted that the company was fully committed to tackling the risks presented by drilling in the Arctic.
"We recognise oil spill prevention and response capability as a critical part of all plans to develop oil and gas resources in the Arctic," he said. "There are strict regulations in place to report any incident, however small, to the authorities and these are made public. Independent regulators are also on our rigs to ensure we are in compliance."
The company confirmed late last week that the leak has been successfully plugged. Engineers are currently working on plans to recover the estimated 660 tonnes of oil trapped in the stricken pipeline.
The government also announced that an independent investigation is underway into the causes of the spill and Shell's response.
Dixon said that the inquiry should investigate the delay in publicly reporting the leak. "The inquiry will tell us if Shell's technical response was adequate but it can't fail to criticise their woeful communications with the public and the media," he predicted.
In other oil industry news, the official tasked with distributing the $20bn fund set up in the wake of last year's BP oil spill in the Gulf of Mexico yesterday announced that BP has paid out more than $5bn to 204,434 victims of the spill.
Isra-Mart srl: Carbon fraud trial focuses on Deutsche Bank role
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Deutsche Bank employees have become the focus of a trial in which six men stand accused of evading more than €200m in value-added tax (VAT) as part of a carbon market fraud.
The trial, which began last week in Frankfurt, is the culmination of a wider EU investigation, where prosecutors in Germany have identified approximately 170 suspects believed guilty of fraud related to the trading of carbon credits.
Although none of the six defendants on trial in Frankfurt work for Germany's biggest bank, seven of the 170 supsects have been identified as Deutsche Bank employees.
According to reports from Reuters, Bjoern Peitzmeyer, one of the first defendants to stand trial yesterday, argued that the bank had left the door open for tax evasion when it established its emissions trading division.
Peitzmeyer said he passed his carbon exchanges' trader exams shortly before German authorities carried out a swoop on 230 offices and homes nationwide in connection with an alleged €180m tax fraud.
However, Deutsche Bank denies the accusations, arguing that its employees were not guilty of any wrong-doing.
It also insisted that while its employees may stand trial, the bank itself is not under investigation.
"We remain of the opinion that Deutsche Bank did not cause any fiscal damage, and therefore should not [suffer] any consequences," a spokesman told Reuters.
Judge Martin Bach said he would investigate if Deutsche Bank employees could have known the risk of tax evasion or fraud by carbon traders when it made finances available for emissions trading in the EU.
The trial, scheduled to run until at least March 2012, will determine if the accused men took part in carousel fraud, a process by which carbon traders collect tax and disappear before turning it in to authorities.
European police suspect that fraud in the carbon market cost national exchequers up to €5bn until a crackdown and tightening of the rules governing carbon trading made it harder for traders to avoid paying VAT on emissions credits.
Deutsche Bank employees have become the focus of a trial in which six men stand accused of evading more than €200m in value-added tax (VAT) as part of a carbon market fraud.
The trial, which began last week in Frankfurt, is the culmination of a wider EU investigation, where prosecutors in Germany have identified approximately 170 suspects believed guilty of fraud related to the trading of carbon credits.
Although none of the six defendants on trial in Frankfurt work for Germany's biggest bank, seven of the 170 supsects have been identified as Deutsche Bank employees.
According to reports from Reuters, Bjoern Peitzmeyer, one of the first defendants to stand trial yesterday, argued that the bank had left the door open for tax evasion when it established its emissions trading division.
Peitzmeyer said he passed his carbon exchanges' trader exams shortly before German authorities carried out a swoop on 230 offices and homes nationwide in connection with an alleged €180m tax fraud.
However, Deutsche Bank denies the accusations, arguing that its employees were not guilty of any wrong-doing.
It also insisted that while its employees may stand trial, the bank itself is not under investigation.
"We remain of the opinion that Deutsche Bank did not cause any fiscal damage, and therefore should not [suffer] any consequences," a spokesman told Reuters.
Judge Martin Bach said he would investigate if Deutsche Bank employees could have known the risk of tax evasion or fraud by carbon traders when it made finances available for emissions trading in the EU.
The trial, scheduled to run until at least March 2012, will determine if the accused men took part in carousel fraud, a process by which carbon traders collect tax and disappear before turning it in to authorities.
European police suspect that fraud in the carbon market cost national exchequers up to €5bn until a crackdown and tightening of the rules governing carbon trading made it harder for traders to avoid paying VAT on emissions credits.
Isra-Mart srl: ETS regulation for airlines
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The EU has decided to include aviation in the European Emissions Trading Scheme (EU ETS). From 2012, operators will have to surrender one allowance per tonne of CO2 emitted on a flight to and from (and within) the EU. This covers passenger, cargo and non-commercial flights and applies no matter where an operator is based - non-EU carriers will also need to comply with the scheme. Non-complying operators face a penalty of €100 per missing allowance on top of the obligation to procure and surrender missing allowances. They may even be banned from operating in the EU.
The compliance period for aviation will start in 2012. The benchmark for free allowances will use transport data from 2010. By then, operators need to have reliable systems to generate this data; the related monitoring plans will have to be submitted in by 31 August 2009 latest. This baseline data will determine the number of free allowances for 9 years (2012-2020), making it worth up to several billion Euro for some airlines. Emissions will also need to be reported by 2010, two years before trading starts. Monitoring plans for emissions data have to be submitted to the authorities in advance, also by 31 August 2009. Both the 2010 transport data and emission reports must be verified by an accredited independent verifier. Verifiers are being selected already now to ensure the aircraft operator is able to meet the requirements. Verification usually starts four to five months before the deadline to submit emission reports, i.e. March 31 each year starting from 2011.
It has appeared aircraft operators need clarification on many issues. PwC is working for and with the EU Member States to develop guidance for completing Monitoring Plans which also explains the Monitoring and Reporting Guidelines. The European Commission issued templates for such plans which Member States will have to use. Both documents can be found through your Competent
The EU has decided to include aviation in the European Emissions Trading Scheme (EU ETS). From 2012, operators will have to surrender one allowance per tonne of CO2 emitted on a flight to and from (and within) the EU. This covers passenger, cargo and non-commercial flights and applies no matter where an operator is based - non-EU carriers will also need to comply with the scheme. Non-complying operators face a penalty of €100 per missing allowance on top of the obligation to procure and surrender missing allowances. They may even be banned from operating in the EU.
The compliance period for aviation will start in 2012. The benchmark for free allowances will use transport data from 2010. By then, operators need to have reliable systems to generate this data; the related monitoring plans will have to be submitted in by 31 August 2009 latest. This baseline data will determine the number of free allowances for 9 years (2012-2020), making it worth up to several billion Euro for some airlines. Emissions will also need to be reported by 2010, two years before trading starts. Monitoring plans for emissions data have to be submitted to the authorities in advance, also by 31 August 2009. Both the 2010 transport data and emission reports must be verified by an accredited independent verifier. Verifiers are being selected already now to ensure the aircraft operator is able to meet the requirements. Verification usually starts four to five months before the deadline to submit emission reports, i.e. March 31 each year starting from 2011.
It has appeared aircraft operators need clarification on many issues. PwC is working for and with the EU Member States to develop guidance for completing Monitoring Plans which also explains the Monitoring and Reporting Guidelines. The European Commission issued templates for such plans which Member States will have to use. Both documents can be found through your Competent
Isra-Mart srl: Our airports ain't what they used to be
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Two classic American airport buildings are in the process of disappearing.
Over at New York's Kennedy airport, crews are laying waste to I.M. Pei's Terminal 6. I was there the other day, taking in the destruction from the elevated walkway between JetBlue and the JFK AirTrain. The gateside section has been annihilated, the earth turned inside-out to a depth of two stories, as if it took a direct hit from a couple of bunker busters. The main building, with its boxy rectangular rooftop and exterior glass walls, awaits the bulldozers.
The facility opened in 1970 as the home of National Airlines. It was called the "Sundrome" -- a nod to National's yellow and orange sunburst logo, and its popular routes between the Northeast and Florida. After National was folded into Pan Am, the terminal was taken over by TWA. It was later used by JetBlue, then abandoned when that carrier moved to the new (and much overrated) Terminal 5. It has been vacant since 2008.
If it's any consolation, right next door, enveloped by the JetBlue complex, Eero Saarinen's landmark TWA "Flight Center" still stands -- albeit in a state of restoration limbo. Saved from the wrecking ball in 2003, it was supposed to serve as an entryway lobby and ticketing plaza for JetBlue's T5. For now it remains semi-derelict and only partly renovated. I wish they'd finish the thing so that more people could appreciate what is arguably the most architecturally significant airport terminal in the world.
Pei and Saarinen, a half-minute walk from each other. Our airports ain't what they used to be.
Over on the north side of Queens, meanwhile, say goodbye to the 40-year-old control tower at LaGuardia. Frequent fliers remember this building well -- hourglass-shaped and of modest height, bejeweled with a top-to-bottom series of portholes. It was an odd, playful structure.
Two classic American airport buildings are in the process of disappearing.
Over at New York's Kennedy airport, crews are laying waste to I.M. Pei's Terminal 6. I was there the other day, taking in the destruction from the elevated walkway between JetBlue and the JFK AirTrain. The gateside section has been annihilated, the earth turned inside-out to a depth of two stories, as if it took a direct hit from a couple of bunker busters. The main building, with its boxy rectangular rooftop and exterior glass walls, awaits the bulldozers.
The facility opened in 1970 as the home of National Airlines. It was called the "Sundrome" -- a nod to National's yellow and orange sunburst logo, and its popular routes between the Northeast and Florida. After National was folded into Pan Am, the terminal was taken over by TWA. It was later used by JetBlue, then abandoned when that carrier moved to the new (and much overrated) Terminal 5. It has been vacant since 2008.
If it's any consolation, right next door, enveloped by the JetBlue complex, Eero Saarinen's landmark TWA "Flight Center" still stands -- albeit in a state of restoration limbo. Saved from the wrecking ball in 2003, it was supposed to serve as an entryway lobby and ticketing plaza for JetBlue's T5. For now it remains semi-derelict and only partly renovated. I wish they'd finish the thing so that more people could appreciate what is arguably the most architecturally significant airport terminal in the world.
Pei and Saarinen, a half-minute walk from each other. Our airports ain't what they used to be.
Over on the north side of Queens, meanwhile, say goodbye to the 40-year-old control tower at LaGuardia. Frequent fliers remember this building well -- hourglass-shaped and of modest height, bejeweled with a top-to-bottom series of portholes. It was an odd, playful structure.
Isra-Mart srl: Airline CO2 emissions covered by the EU ETS increase 2.6 per cent in 2010 as they resume upward trend
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According to data just published by consultants RDC Aviation, the total CO2 emissions of scheduled airlines flying to, from and within Europe rose by 2.66% in 2010. This follows a fall of 3.86% in 2009 compared to 2008, so overall emissions have not yet returned to pre-recession levels. Although final air traffic figures for last year have yet to be published, the increase in emissions follows an estimate by the Association of European Airlines that its members carried 10 million more passengers in 2010 than in 2009 and recorded a 2.5% increase in revenue passenger-kilometres (RPKs). Lufthansa pipped British Airways to the post as the airline with the highest European CO2 emissions, followed by Air France and KLM, although all four were down on their 2008 outputs.
Breaking down CO2 emissions covered by the Aviation EU Emissions Trading Scheme (EU ETS) by country, airlines serving airports in the United Kingdom emitted a total of 44.9 million tonnes in 2010, considerably higher than Germany’s 31.4 million tonnes and France’s 25 million tonnes. Airlines flying to and from London’s Heathrow Airport were responsible for 16.2 million tonnes, followed by Frankfurt and Paris Charles de Gaulle at around 9.8 million tonnes each.
Reflecting the continued strength of the low-cost airline sector, which appears to have withstood the effects of the recession in Europe, Ryanair, easyJet and airberlin maintained their year-on-year growth in emissions. Ryanair’s emissions were up by over 20% and airberlin’s by 18%. The rapid growth of Middle East carriers is reflected by sizeable increases in CO2 emissions from their European operations. According to RDC’s estimates, CO2 emissions from Qatar Airways’ European flights rose by over 22% last year and Emirates by 11.6%. A double-digit growth in emissions by Air China is a sign of growing air traffic and the increasing influx of Chinese tourists to Europe.
It should be stressed that the figures have not been provided by the carriers themselves but are based on data from commercial aviation flight schedules supplied by Innovata at an origin or destination within the scope of the EU ETS and uses EMEP/CORINAIR ETS methodology for calculating fuel burn and conversion factors as directed by the UN’s Intergovernmental Panel for Climate Change (IPCC). RDC says the IPCC calculation logic and emissions factors use a distance-based formula between airport pairs (taking the great circle distance) and the aircraft type to calculate the CO2 emissions. This may not reflect the efficiency of different airlines using similar aircraft types but does provide a consistent method of comparison, claims RDC.
Emissions at airports are calculated by adding together all flights that arrive or depart that airport.
At present, the data only includes emissions within the EU-27 states although the scope of the Aviation EU ETS extends to non-EU countries such as Norway and Iceland.
RDC Aviation provides software, consultancy, environmental emissions analysis and data to the international aviation industry.
According to data just published by consultants RDC Aviation, the total CO2 emissions of scheduled airlines flying to, from and within Europe rose by 2.66% in 2010. This follows a fall of 3.86% in 2009 compared to 2008, so overall emissions have not yet returned to pre-recession levels. Although final air traffic figures for last year have yet to be published, the increase in emissions follows an estimate by the Association of European Airlines that its members carried 10 million more passengers in 2010 than in 2009 and recorded a 2.5% increase in revenue passenger-kilometres (RPKs). Lufthansa pipped British Airways to the post as the airline with the highest European CO2 emissions, followed by Air France and KLM, although all four were down on their 2008 outputs.
Breaking down CO2 emissions covered by the Aviation EU Emissions Trading Scheme (EU ETS) by country, airlines serving airports in the United Kingdom emitted a total of 44.9 million tonnes in 2010, considerably higher than Germany’s 31.4 million tonnes and France’s 25 million tonnes. Airlines flying to and from London’s Heathrow Airport were responsible for 16.2 million tonnes, followed by Frankfurt and Paris Charles de Gaulle at around 9.8 million tonnes each.
Reflecting the continued strength of the low-cost airline sector, which appears to have withstood the effects of the recession in Europe, Ryanair, easyJet and airberlin maintained their year-on-year growth in emissions. Ryanair’s emissions were up by over 20% and airberlin’s by 18%. The rapid growth of Middle East carriers is reflected by sizeable increases in CO2 emissions from their European operations. According to RDC’s estimates, CO2 emissions from Qatar Airways’ European flights rose by over 22% last year and Emirates by 11.6%. A double-digit growth in emissions by Air China is a sign of growing air traffic and the increasing influx of Chinese tourists to Europe.
It should be stressed that the figures have not been provided by the carriers themselves but are based on data from commercial aviation flight schedules supplied by Innovata at an origin or destination within the scope of the EU ETS and uses EMEP/CORINAIR ETS methodology for calculating fuel burn and conversion factors as directed by the UN’s Intergovernmental Panel for Climate Change (IPCC). RDC says the IPCC calculation logic and emissions factors use a distance-based formula between airport pairs (taking the great circle distance) and the aircraft type to calculate the CO2 emissions. This may not reflect the efficiency of different airlines using similar aircraft types but does provide a consistent method of comparison, claims RDC.
Emissions at airports are calculated by adding together all flights that arrive or depart that airport.
At present, the data only includes emissions within the EU-27 states although the scope of the Aviation EU ETS extends to non-EU countries such as Norway and Iceland.
RDC Aviation provides software, consultancy, environmental emissions analysis and data to the international aviation industry.
Isra-Mart srl: Airlines hit back over ETS criticism
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The European aviation industry has moved to clarify its stance on carbon pricing, after facing mounting criticism over its alleged reluctance to join the EU's emissions trading scheme (ETS) from next year.
The Association of European Airlines (AEA) yesterday issued a strongly worded statement insisting carriers were not looking to "shirk their environmental obligations" and did not want all airlines to be excluded from the EU's emissions trading scheme (EU ETS).
The statement comes after the AEA and manufacturer Airbus wrote to the European Commission warning of a "trade conflict" with the rest of the world if plans to charge operators per tonne of CO2 emitted for every flight in and out of Europe went ahead.
Aviation emissions account for around two per cent of global output, but the sector is predicted to expand rapidly. The EU expects bringing these emissions into the EU ETS will save 183 million tonnes of CO2 per year by 2020, a 46 per cent reduction on a 'business as usual' scenario.
The industry says the only fair way to deal with the issue without damaging trade or risking retaliatory action is through a global deal, but the EU and green groups say sluggish progress made at International Air Transport Association (IATA) talks means such an agreement is a long way off.
American carriers have already launched legal action against the EU's decision, while the China Air Transport Association (CATA) has said it too will consider a lawsuit.
AEA secretary general Ulrich Schulte-Strathaus used yesterday's statement to plead with the Commission to work with the industry to head off a trade war with the world's other aviation powerhouses.
He warned complying with the EU ETS would impose a €3.5bn annual burden on airlines, which would have pushed all 36 AEA members into the red in every year but one of the past decade.
He added that the efficiency and voluntary emissions targets agreed at IATA put the industry ahead of other sectors and argued that efforts to develop biofuels underlined its commitment to reducing its environmental impact.
Ultimately, the EU's unilateral action was "unnecessarily burdensome" and could even "jeopardise a global approach", he said.
"At a time when Europe's economic recovery is lagging behind other regions and the Eurozone is struggling to regain stability, we want to avoid trade conflict which could potentially damage Europe's air links, with knock-on consequences for imports, exports and mobility," he concluded.
The European aviation industry has moved to clarify its stance on carbon pricing, after facing mounting criticism over its alleged reluctance to join the EU's emissions trading scheme (ETS) from next year.
The Association of European Airlines (AEA) yesterday issued a strongly worded statement insisting carriers were not looking to "shirk their environmental obligations" and did not want all airlines to be excluded from the EU's emissions trading scheme (EU ETS).
The statement comes after the AEA and manufacturer Airbus wrote to the European Commission warning of a "trade conflict" with the rest of the world if plans to charge operators per tonne of CO2 emitted for every flight in and out of Europe went ahead.
Aviation emissions account for around two per cent of global output, but the sector is predicted to expand rapidly. The EU expects bringing these emissions into the EU ETS will save 183 million tonnes of CO2 per year by 2020, a 46 per cent reduction on a 'business as usual' scenario.
The industry says the only fair way to deal with the issue without damaging trade or risking retaliatory action is through a global deal, but the EU and green groups say sluggish progress made at International Air Transport Association (IATA) talks means such an agreement is a long way off.
American carriers have already launched legal action against the EU's decision, while the China Air Transport Association (CATA) has said it too will consider a lawsuit.
AEA secretary general Ulrich Schulte-Strathaus used yesterday's statement to plead with the Commission to work with the industry to head off a trade war with the world's other aviation powerhouses.
He warned complying with the EU ETS would impose a €3.5bn annual burden on airlines, which would have pushed all 36 AEA members into the red in every year but one of the past decade.
He added that the efficiency and voluntary emissions targets agreed at IATA put the industry ahead of other sectors and argued that efforts to develop biofuels underlined its commitment to reducing its environmental impact.
Ultimately, the EU's unilateral action was "unnecessarily burdensome" and could even "jeopardise a global approach", he said.
"At a time when Europe's economic recovery is lagging behind other regions and the Eurozone is struggling to regain stability, we want to avoid trade conflict which could potentially damage Europe's air links, with knock-on consequences for imports, exports and mobility," he concluded.
Isra-Mart srl: Chinese, Arab airlines push back against EU ETS
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The China Air Transport Assn. and the Arab Air Carriers Organization reiterated their calls for the European Union to rethink plans to include aviation in its Emissions Trading Scheme starting next year.
In line with its counterparts in the Americas—the US Air Transport Assn. and the Latin American and Caribbean Air Transport Assn.—CATA and AACO doubt the legality of applying the EU ETS to international aviation (ATW Daily News, July 6). "Trying to impose a unilateral approach will only lead to conflict and will not lead to a better environment," AACO stated, advocating instead a global solution under ICAO to monitor and control air transport carbon dioxide emissions (ATW Daily News, July 3, 2009).
CATA said the EU scheme is "unlawful and violates international law, which directly interferes with other countries' sovereignty and would seriously affect global airline industry's healthy and sustainable development."
AACO asserted that including airlines in the ETS is only "addressing, and wrongly so, the aviation emissions focusing on financial returns to EU governments … Aviation is a global business. The cause of the environment is also global. Therefore, the fight against climate change cannot be but global. Unilateral initiatives will not improve the environment."
Etihad Airways last week revealed that the cost of it complying with the EU ETS could reach up to €500 million ($719 million) total by 2020. "These estimates are based on a number of dynamic factors, including estimates as to the number of free allowances that will be granted to Etihad … our growth into Europe over the next 10 years, the ability of the industry to reduce emissions growth … and the cost of carbon," said Etihad Head-Environmental Affairs Linden Coppell.
CATA estimated the ETS will cost Chinese carriers CNY800 million ($123.6 million) annually and noted that the costs will keep rising as flights increase between China and Europe. The organization revealed it is assisting Air China, which operates a large number of routes to/from the EU, to prepare a lawsuit against non-EU airlines' inclusion in the ETS.
The China Air Transport Assn. and the Arab Air Carriers Organization reiterated their calls for the European Union to rethink plans to include aviation in its Emissions Trading Scheme starting next year.
In line with its counterparts in the Americas—the US Air Transport Assn. and the Latin American and Caribbean Air Transport Assn.—CATA and AACO doubt the legality of applying the EU ETS to international aviation (ATW Daily News, July 6). "Trying to impose a unilateral approach will only lead to conflict and will not lead to a better environment," AACO stated, advocating instead a global solution under ICAO to monitor and control air transport carbon dioxide emissions (ATW Daily News, July 3, 2009).
CATA said the EU scheme is "unlawful and violates international law, which directly interferes with other countries' sovereignty and would seriously affect global airline industry's healthy and sustainable development."
AACO asserted that including airlines in the ETS is only "addressing, and wrongly so, the aviation emissions focusing on financial returns to EU governments … Aviation is a global business. The cause of the environment is also global. Therefore, the fight against climate change cannot be but global. Unilateral initiatives will not improve the environment."
Etihad Airways last week revealed that the cost of it complying with the EU ETS could reach up to €500 million ($719 million) total by 2020. "These estimates are based on a number of dynamic factors, including estimates as to the number of free allowances that will be granted to Etihad … our growth into Europe over the next 10 years, the ability of the industry to reduce emissions growth … and the cost of carbon," said Etihad Head-Environmental Affairs Linden Coppell.
CATA estimated the ETS will cost Chinese carriers CNY800 million ($123.6 million) annually and noted that the costs will keep rising as flights increase between China and Europe. The organization revealed it is assisting Air China, which operates a large number of routes to/from the EU, to prepare a lawsuit against non-EU airlines' inclusion in the ETS.
Isra-Mart srl: ETS to cost airline sector over €1bn annually: Study
www.isra-mart.com
Airlines could face a collective annual cost of over €1 billion ($1.4 billion) from 2012 under the sector's inclusion in the European Union's Emissions Trading Scheme (ETS), according to new independent research.
A report published by aviation consultancy RDC Aviation and energy sector market intelligence specialist Point Carbon estimates the aviation sector could face a shortfall of 77 million tonnes of CO2 when it enters the ETS in 2012. This equates to €1.1 billion at today's spot price of €14.40 per tonnes of CO2.
"The cost is just an indication," explains the report's co-author, and senior analyst at Point Carbon, Andreas Arvanitakis. "The actual cost will be whatever the carbon price will be in 2012." But he describes the €1.1 billion annual cost figure as "conservative" given current forecasts of the spot price for carbon in 2012 of nearer €20 per tonne.
Additionally the shortfall seems likely to grow in 2013 and over the rest of the next decade as the number allowances are reduced - in 2012 the free allowances to airlines will be 85% of 97% of the 2004-06 average emissions, moving to 85% of 95% of the 2004-06 average from 2013 - and as air transport continues to grow. The EC is expected to publish the baseline average figure for 2004-06, on which the sector's caps will be based, next month.
Under the controversial expansion of the EU ETS to include aviation, all airlines operating flights into the EU regardless of their country of origin will be covered by the scheme from 2012. The EC is expected to publish a final list of the number of airlines covered shortly.
The next stage of the process for calculating each airline's free allowance will be for carriers next year to submit revenue tonne kilometres figures. "This will decide how big a slice of the cake each airline will get," explains Arvanitakis. To this end airlines have been required to show their plans for collecting this data by the end of August. But many smaller operators, including operators of business aircraft, are behind the curve in submitting monitoring plans.
"The big carriers I think are prepared," says Sebastian Gallehr, chief executive and founder of consultant energy and risk management consultancy, Gallehr and Partner. "But in the end there are 2,700 operators [on the EC's preliminary list] obliged to take part in the scheme and our assumption is maybe 2,000 are not prepared.
"This is all new for the airlines and the authorities concerned and it is understandable that there is still confusion and uncertainty," he says.
Gallehr says carriers which do not submit their monitoring plans, or do not have them fully approved by the national regulator, before the start of 2010, risk losing out on their share of free allowances. "They are the basis for the free allocation, it is only the one year - 2010 - which is defining the share of the cake you get," he notes.
A final list of the carriers covered by the EU ETS is expected shortly, while there are already signs of slippage in the end of August deadline for submission of monitoring plans. The UK - which will be by far the biggest national regulator of the scheme handling most of the larger non-EU carriers in addition to UK operators - has already slipped the deadline for these plans to be submitted.
"I expect more delays in the dates of submitting plans," says Gallehr. "But it does not matter if the deadline is delayed or not, you have to begin monitoring from the beginning of 2010."
The UK, for example, says it remains committed to starting the scheme on schedule from 2012.
The RDC/Point Carbon study estimates that British Airways will face the largest shortfall of EU carriers at 3 million tonnes of CO2 in 2012, and that US carriers Delta Air Lines and United Airlines will face even higher levels. RDC Aviation managing director Peter Hind explains carriers that have had only a relatively gradual increase in growth by RTKs since 2006 are likely to face a disproportionately larger shortfall then those with faster growth over that period, as the faster growing carriers will now take a larger share of the available allowances.
Hind says US carriers could be particular hard hit if the transatlantic market remains weak next year but rebounds and they add capacity by the time ETS begins in 2012. Legacy carriers are also in general likely to be harder hit than low-cost rivals which have grown rapidly since 2004-06. "It's the impact of LCCs coming in and eating up the cake," says Hind.
Low-cost carriers though do face a challenge in that the allowances are based on weight, including freight. "As low-cost carriers take passengers only and no freight, they face a relatively larger shortfall," says Hind. "Many low-cost carriers have aggressive growth plans as well, which could increase that shortfall." But he also notes low-cost carriers with significant growth plans may be eligible for more allowances from a special reserve for new entrants and fast-growers.
A further option open to airlines to ease the cost burden is by investing directly in clean development mechanism (CDM) projects, allowable under the Kyoto Protocol, which provides a discount on carbon prices.
"In theory it will be possible for an airline to roll-up its sleeves and get in a CDM, and get them at a €4 to €5 discount. Pretty much half of the total shortfall could be covered by CDMs," says Arvanitakis. But he cautions airlines must be careful to ensure they choose the right CDMs, as the environmental gains of some such projects have been discredited.
Airlines could face a collective annual cost of over €1 billion ($1.4 billion) from 2012 under the sector's inclusion in the European Union's Emissions Trading Scheme (ETS), according to new independent research.
A report published by aviation consultancy RDC Aviation and energy sector market intelligence specialist Point Carbon estimates the aviation sector could face a shortfall of 77 million tonnes of CO2 when it enters the ETS in 2012. This equates to €1.1 billion at today's spot price of €14.40 per tonnes of CO2.
"The cost is just an indication," explains the report's co-author, and senior analyst at Point Carbon, Andreas Arvanitakis. "The actual cost will be whatever the carbon price will be in 2012." But he describes the €1.1 billion annual cost figure as "conservative" given current forecasts of the spot price for carbon in 2012 of nearer €20 per tonne.
Additionally the shortfall seems likely to grow in 2013 and over the rest of the next decade as the number allowances are reduced - in 2012 the free allowances to airlines will be 85% of 97% of the 2004-06 average emissions, moving to 85% of 95% of the 2004-06 average from 2013 - and as air transport continues to grow. The EC is expected to publish the baseline average figure for 2004-06, on which the sector's caps will be based, next month.
Under the controversial expansion of the EU ETS to include aviation, all airlines operating flights into the EU regardless of their country of origin will be covered by the scheme from 2012. The EC is expected to publish a final list of the number of airlines covered shortly.
The next stage of the process for calculating each airline's free allowance will be for carriers next year to submit revenue tonne kilometres figures. "This will decide how big a slice of the cake each airline will get," explains Arvanitakis. To this end airlines have been required to show their plans for collecting this data by the end of August. But many smaller operators, including operators of business aircraft, are behind the curve in submitting monitoring plans.
"The big carriers I think are prepared," says Sebastian Gallehr, chief executive and founder of consultant energy and risk management consultancy, Gallehr and Partner. "But in the end there are 2,700 operators [on the EC's preliminary list] obliged to take part in the scheme and our assumption is maybe 2,000 are not prepared.
"This is all new for the airlines and the authorities concerned and it is understandable that there is still confusion and uncertainty," he says.
Gallehr says carriers which do not submit their monitoring plans, or do not have them fully approved by the national regulator, before the start of 2010, risk losing out on their share of free allowances. "They are the basis for the free allocation, it is only the one year - 2010 - which is defining the share of the cake you get," he notes.
A final list of the carriers covered by the EU ETS is expected shortly, while there are already signs of slippage in the end of August deadline for submission of monitoring plans. The UK - which will be by far the biggest national regulator of the scheme handling most of the larger non-EU carriers in addition to UK operators - has already slipped the deadline for these plans to be submitted.
"I expect more delays in the dates of submitting plans," says Gallehr. "But it does not matter if the deadline is delayed or not, you have to begin monitoring from the beginning of 2010."
The UK, for example, says it remains committed to starting the scheme on schedule from 2012.
The RDC/Point Carbon study estimates that British Airways will face the largest shortfall of EU carriers at 3 million tonnes of CO2 in 2012, and that US carriers Delta Air Lines and United Airlines will face even higher levels. RDC Aviation managing director Peter Hind explains carriers that have had only a relatively gradual increase in growth by RTKs since 2006 are likely to face a disproportionately larger shortfall then those with faster growth over that period, as the faster growing carriers will now take a larger share of the available allowances.
Hind says US carriers could be particular hard hit if the transatlantic market remains weak next year but rebounds and they add capacity by the time ETS begins in 2012. Legacy carriers are also in general likely to be harder hit than low-cost rivals which have grown rapidly since 2004-06. "It's the impact of LCCs coming in and eating up the cake," says Hind.
Low-cost carriers though do face a challenge in that the allowances are based on weight, including freight. "As low-cost carriers take passengers only and no freight, they face a relatively larger shortfall," says Hind. "Many low-cost carriers have aggressive growth plans as well, which could increase that shortfall." But he also notes low-cost carriers with significant growth plans may be eligible for more allowances from a special reserve for new entrants and fast-growers.
A further option open to airlines to ease the cost burden is by investing directly in clean development mechanism (CDM) projects, allowable under the Kyoto Protocol, which provides a discount on carbon prices.
"In theory it will be possible for an airline to roll-up its sleeves and get in a CDM, and get them at a €4 to €5 discount. Pretty much half of the total shortfall could be covered by CDMs," says Arvanitakis. But he cautions airlines must be careful to ensure they choose the right CDMs, as the environmental gains of some such projects have been discredited.
Isra-Mart srl: Global airlines blast EU ETS decision
www.isra-mart.com
The International Air Transport Association (IATA) has condemned a decision by EU ministers to ignore the current economic downturn and approve a compromise deal on including aviation activities in the bloc's emission trading scheme (EU ETS).
On Friday (24 October), EU justice ministers rubberstamped a deal, agreed between the Council and Parliament in June (EurActiv 27/06/08), requiring all flights - both within the EU as well as international ones entering or leaving the bloc - to participate in the Union's carbon cap-and-trade scheme from 2012.
The aim is to tackle aviation's small but fast-growing contribution to climate change, helping the Union to achieve its agreed long-term target of slashing total CO2 emissions by 20% by 2020.
Anger amid gloom
But the ministers' decision to approve the new law without discussion despite the sudden economic downturn triggered by the financial crisis was harshly criticised by international airlines.
"Crisis is not the time for rubber stamps. But that is exactly what the Council of Justice and Home Affairs Ministers used today - without a word of debate - to seal into law the €3.5 billion cost of bringing airlines into the European ETS. It's Brussels acting in a bubble - even in the middle of a global economic crisis," said Giovanni Bisignani, IATA's director general and CEO.
European airline traffic has been facing its first negative growth attributable to economic factors (thus excluding decreases triggered by external shocks such as 9/11) since the 1980s, according to the Association of European Airlines (AEA), which explains that this downward trend places "a massive burden on the industry's profitability".
According to AEA Secretary General Ulrich Schulte-Strathaus, these figures are unlikely to improve in the near future as the economic slowdown kicks in amid inflation driven by high fuel prices and a steep decline in business and consumer confidence. "The time could not be worse to be hastily finalising, without any impact assessment, the design elements of the looming Emissions Trading Scheme, which high auctioning levels have transformed into a barely disguised kerosene tax – and this on top of a proliferation of national taxes, making both airlines and their passengers pay for their carbon footprint several times over," he stressed.
A choice between climate and economic growth?
Airlines and other energy-intensive industries have been warning for months that EU plans to tighten its carbon 'belt' will put European factories out of business as companies are forced to evacuate their operations and jobs – as well as their emissions – to third countries with cheaper labour and less restrictive environmental legislation.
The growing threat of recession does appear to be giving new weight to such concerns, with a number of countries calling for industry exemptions to planned EU climate rules (EurActiv 26/09/08). Namely, the automotive industry could face less stringent CO2 legislation as France and Germany push to defend their ailing home industries and the millions of jobs that go with them (EurActiv 01/10/08).
Green groups and EU Environment Commissioner Stavros Dimas nevertheless insist that the economic slowdown should not be used as an excuse to stall the EU's climate efforts. "The financial crisis is here one day and it is gone another day. But the climate crisis will be there always and we must face it," Dimas has warned.
Shifting to a middle path?
One accepatable compromise could see the EU plough on with its climate agenda while providing increased support to industry. Last week, EU leaders pledged to consider a financial support plan – likely in the form of looser state aid rules – to help the auto industry undertake the necessary technological shift to a low-carbon economy. Similar aids could be applied to other industries, they said (EurActiv 17/10/08). Measures will be decided upon in December 2008 at the next European Council, when leaders are also due to take a final decision on the bloc's climate change plans.
The International Air Transport Association (IATA) has condemned a decision by EU ministers to ignore the current economic downturn and approve a compromise deal on including aviation activities in the bloc's emission trading scheme (EU ETS).
On Friday (24 October), EU justice ministers rubberstamped a deal, agreed between the Council and Parliament in June (EurActiv 27/06/08), requiring all flights - both within the EU as well as international ones entering or leaving the bloc - to participate in the Union's carbon cap-and-trade scheme from 2012.
The aim is to tackle aviation's small but fast-growing contribution to climate change, helping the Union to achieve its agreed long-term target of slashing total CO2 emissions by 20% by 2020.
Anger amid gloom
But the ministers' decision to approve the new law without discussion despite the sudden economic downturn triggered by the financial crisis was harshly criticised by international airlines.
"Crisis is not the time for rubber stamps. But that is exactly what the Council of Justice and Home Affairs Ministers used today - without a word of debate - to seal into law the €3.5 billion cost of bringing airlines into the European ETS. It's Brussels acting in a bubble - even in the middle of a global economic crisis," said Giovanni Bisignani, IATA's director general and CEO.
European airline traffic has been facing its first negative growth attributable to economic factors (thus excluding decreases triggered by external shocks such as 9/11) since the 1980s, according to the Association of European Airlines (AEA), which explains that this downward trend places "a massive burden on the industry's profitability".
According to AEA Secretary General Ulrich Schulte-Strathaus, these figures are unlikely to improve in the near future as the economic slowdown kicks in amid inflation driven by high fuel prices and a steep decline in business and consumer confidence. "The time could not be worse to be hastily finalising, without any impact assessment, the design elements of the looming Emissions Trading Scheme, which high auctioning levels have transformed into a barely disguised kerosene tax – and this on top of a proliferation of national taxes, making both airlines and their passengers pay for their carbon footprint several times over," he stressed.
A choice between climate and economic growth?
Airlines and other energy-intensive industries have been warning for months that EU plans to tighten its carbon 'belt' will put European factories out of business as companies are forced to evacuate their operations and jobs – as well as their emissions – to third countries with cheaper labour and less restrictive environmental legislation.
The growing threat of recession does appear to be giving new weight to such concerns, with a number of countries calling for industry exemptions to planned EU climate rules (EurActiv 26/09/08). Namely, the automotive industry could face less stringent CO2 legislation as France and Germany push to defend their ailing home industries and the millions of jobs that go with them (EurActiv 01/10/08).
Green groups and EU Environment Commissioner Stavros Dimas nevertheless insist that the economic slowdown should not be used as an excuse to stall the EU's climate efforts. "The financial crisis is here one day and it is gone another day. But the climate crisis will be there always and we must face it," Dimas has warned.
Shifting to a middle path?
One accepatable compromise could see the EU plough on with its climate agenda while providing increased support to industry. Last week, EU leaders pledged to consider a financial support plan – likely in the form of looser state aid rules – to help the auto industry undertake the necessary technological shift to a low-carbon economy. Similar aids could be applied to other industries, they said (EurActiv 17/10/08). Measures will be decided upon in December 2008 at the next European Council, when leaders are also due to take a final decision on the bloc's climate change plans.
Monday, August 22, 2011
Isra-Mart srl: Le gaz a le vent en poupe
www.isramart.com
Les volumes de gaz échangés sur Powernext Gas, la Bourse française du gaz naturel, ont atteint un nouveau record quotidien la semaine dernière, a annoncé mardi l'opérateur boursier Powernext.
Le 20 août, quelque 378.400 mégawattheures (MWh) ont été négociés, pulvérisant le précédent record qui datait du 17 juin (293.800 MWh) indique Powernext dans un communiqué.
Ce nouveau record est dû à une meilleure attractivité du marché français du gaz, le lancement de nouveaux produits financiers sur le négoce du gaz et l'augmentation du nombre d'intervenants sur le marché, selon l'opérateur. Cette hausse des volumes est également très sensible depuis le début de l'année: entre janvier et fin juillet, le volume total négocié sur le marché "spot" (au comptant) de Powernext Gas s'est élevé à 13 TWh contre 5,90 TwH pour la même période l'an passé.
Volume des «Futures» multiplié par dix
Sur le marché à terme, Powernext Gas Futures, le volume est multiplié par près de dix par rapport à l'an dernier, à 69,84 TwH sur sept mois contre 7,39 Twh en 2010. Powernext, qui a lancé un marché français du gaz en novembre 2008, est détenu par un groupe de gestionnaires de réseaux de transport de l’électricité et du gaz naturel européens (RTE, Elia...) et par diverses entreprises européennes du secteur de l’énergie, comme Total, GDF Suez, EDF, EON.
L'opérateur gère également un marché de l'électricité en coentreprise avec l'allemand EEX.
Les volumes de gaz échangés sur Powernext Gas, la Bourse française du gaz naturel, ont atteint un nouveau record quotidien la semaine dernière, a annoncé mardi l'opérateur boursier Powernext.
Le 20 août, quelque 378.400 mégawattheures (MWh) ont été négociés, pulvérisant le précédent record qui datait du 17 juin (293.800 MWh) indique Powernext dans un communiqué.
Ce nouveau record est dû à une meilleure attractivité du marché français du gaz, le lancement de nouveaux produits financiers sur le négoce du gaz et l'augmentation du nombre d'intervenants sur le marché, selon l'opérateur. Cette hausse des volumes est également très sensible depuis le début de l'année: entre janvier et fin juillet, le volume total négocié sur le marché "spot" (au comptant) de Powernext Gas s'est élevé à 13 TWh contre 5,90 TwH pour la même période l'an passé.
Volume des «Futures» multiplié par dix
Sur le marché à terme, Powernext Gas Futures, le volume est multiplié par près de dix par rapport à l'an dernier, à 69,84 TwH sur sept mois contre 7,39 Twh en 2010. Powernext, qui a lancé un marché français du gaz en novembre 2008, est détenu par un groupe de gestionnaires de réseaux de transport de l’électricité et du gaz naturel européens (RTE, Elia...) et par diverses entreprises européennes du secteur de l’énergie, comme Total, GDF Suez, EDF, EON.
L'opérateur gère également un marché de l'électricité en coentreprise avec l'allemand EEX.
Isra-Mart srl: Ford's new wind turbine makes greener cars
www.isramart.com
Ford has cut the ribbon on a third wind turbine at its Dagenham Diesel Centre in Essex allowing the expanded factory to get all its electricity from renewable sources.
The auto maker announced yesterday that Ecotricity has completed installation of the 2.3MW wind turbine first proposed in 2008 following the decision to install a 1.4/1.6-litre Duratorq TDCi engine manufacturing line at the site.
Groundwork for the third wind turbine began in June and installation of the tower and blades took just four days to finish. The main assembly was completed when the 82 metre-diameter blades and hub were hoisted 80 metres onto the top of the tower.
The two existing turbines at the site generate 5.92 million units of electricity a year, but this is expected to reach 11.4 million units with the addition of the higher capacity third turbine.
Chris Woolacott, Ford Dagenham Diesel Centre line manager, explained that the plant is now once again completely powered by wind energy.
"The Dagenham Diesel Centre assembles Ford's greenest engines, which return over 76mpg," he said. "Rising demand has prompted this additional turbine to maintain the plant's own green energy source."
Dale Vince, founder of Ecotricity, added: "We are really pleased to come back and build a third windmill so that the green energy supply keeps pace with the customer demand for Ford's most fuel-efficient diesel engines."
Ford has cut the ribbon on a third wind turbine at its Dagenham Diesel Centre in Essex allowing the expanded factory to get all its electricity from renewable sources.
The auto maker announced yesterday that Ecotricity has completed installation of the 2.3MW wind turbine first proposed in 2008 following the decision to install a 1.4/1.6-litre Duratorq TDCi engine manufacturing line at the site.
Groundwork for the third wind turbine began in June and installation of the tower and blades took just four days to finish. The main assembly was completed when the 82 metre-diameter blades and hub were hoisted 80 metres onto the top of the tower.
The two existing turbines at the site generate 5.92 million units of electricity a year, but this is expected to reach 11.4 million units with the addition of the higher capacity third turbine.
Chris Woolacott, Ford Dagenham Diesel Centre line manager, explained that the plant is now once again completely powered by wind energy.
"The Dagenham Diesel Centre assembles Ford's greenest engines, which return over 76mpg," he said. "Rising demand has prompted this additional turbine to maintain the plant's own green energy source."
Dale Vince, founder of Ecotricity, added: "We are really pleased to come back and build a third windmill so that the green energy supply keeps pace with the customer demand for Ford's most fuel-efficient diesel engines."
Isra-Mart srl: Carbon fraud suspects appear in Frankfurt court
www.isra-mart.com
Six men accused of evading more than €200m in value-added tax (VAT) as part of a carbon market fraud yesterday appeared before a Frankfurt court for the first time.
According to Reuters reports, the individuals are aged between 27 to 65 and are from Germany, France and Britain. They are accused of conspiring to evade VAT on the trading of carbon credits between September 2009 and April 2010.
The trial represents the culmination of just one of a series of investigations into VAT carbon fraud scandals that rocked the EU Emissions Trading System.
According to European police agency Europol, widespread VAT fraud is thought to have cost member states an estimated €5bn in lost tax revenue in the 18 months up to the end of 2009.
Fraudsters are believed to have exploited a technique known as "carousel fraud", whereby front companies were used to trade carbon credits. The fraudsters then pocketed the VAT levelled on the trades before then closing the front companies and disappearing without handing the VAT raised on to the Exchequer.
The practice prompted a crackdown across Europe that saw the European Union impose new "reverse VAT" rules that shifted the reponsibility for paying VAT on carbon credits on to the company purchasing the credits.
The men accused in Frankfurt – Claude Bauduin, Robert Peitzmeyer and his son Bjoern Peitzmeyer, Wayne Stewart Brown, Irfan Musa Patel and Fraz Mir – are just six of a total 170 people currently under investigation for alleged carbon fraud.
The German prosecutors said the men took advantage of tax rules in Germany that were valid until June of last year. The defendants were not required to make a plea yesterday but, if found guilty, they could be sentenced to prison for six months to 10 years for each indictable offence if found guilty.
The hearing is scheduled to run until Wednesday this week, with the trial finishing in March 2012.
Seven UK defendants have also been charged over suspected VAT fraud in the carbon market, with a plea and case management hearing scheduled for the end of October.
Six men accused of evading more than €200m in value-added tax (VAT) as part of a carbon market fraud yesterday appeared before a Frankfurt court for the first time.
According to Reuters reports, the individuals are aged between 27 to 65 and are from Germany, France and Britain. They are accused of conspiring to evade VAT on the trading of carbon credits between September 2009 and April 2010.
The trial represents the culmination of just one of a series of investigations into VAT carbon fraud scandals that rocked the EU Emissions Trading System.
According to European police agency Europol, widespread VAT fraud is thought to have cost member states an estimated €5bn in lost tax revenue in the 18 months up to the end of 2009.
Fraudsters are believed to have exploited a technique known as "carousel fraud", whereby front companies were used to trade carbon credits. The fraudsters then pocketed the VAT levelled on the trades before then closing the front companies and disappearing without handing the VAT raised on to the Exchequer.
The practice prompted a crackdown across Europe that saw the European Union impose new "reverse VAT" rules that shifted the reponsibility for paying VAT on carbon credits on to the company purchasing the credits.
The men accused in Frankfurt – Claude Bauduin, Robert Peitzmeyer and his son Bjoern Peitzmeyer, Wayne Stewart Brown, Irfan Musa Patel and Fraz Mir – are just six of a total 170 people currently under investigation for alleged carbon fraud.
The German prosecutors said the men took advantage of tax rules in Germany that were valid until June of last year. The defendants were not required to make a plea yesterday but, if found guilty, they could be sentenced to prison for six months to 10 years for each indictable offence if found guilty.
The hearing is scheduled to run until Wednesday this week, with the trial finishing in March 2012.
Seven UK defendants have also been charged over suspected VAT fraud in the carbon market, with a plea and case management hearing scheduled for the end of October.
Isra-Mart srl: Nine out of 10 firms meet Carbon Reduction Commitment reporting deadline
www.isra-mart.com
More than 90 per cent of firms have met the first reporting deadline imposed by the Carbon Reduction Commitment (CRC) scheme, providing detailed data on their carbon footprint to the Environment Agency.
According to figures released yesterday by the watchdog, 4,295 reports were lodged with the agency ahead of last month's deadline, out of an anticipated 4,549 organisations that are thought to face CRC reporting obligations.
The result means that around 95 per cent of the companies and public sector bodies required to file official CRC carbon reports have met the first reporting deadline.
The Environment Agency said that the reports cover over 60 million tonnes of carbon emissions, equivalent to more than 10 per cent of the UK's total carbon footprint.
The high level of compliance was arguably greater than had been anticipated given earlier reports that large numbers of organisations were either unaware of the new rules or ill-prepared to report on their carbon emissions.
"This is a new scheme for the UK, so we are pleased that the vast majority of organisations required to submit a report have done so by the deadline," said Tony Grayling, head of climate change and communities at the Environment Agency, in a statement.
He added that the high level of compliance meant the agency was now well positioned to produce the first public CRC league table in the autumn, which will rank companies based on their energy efficiency performance.
A spokeswoman for the Environment Agency told BusinessGreen that those organisations that failed to lodge an official report detailing their energy use and carbon emissions ahead of the deadline would be called on to comply with the rules as soon as possible or risk potential fines.
"We have sent warning letters to non-compliant participants that they have failed to comply with the reporting deadline and civil penalties may apply," she said. "We will keep under review and may decide to impose these penalties if they remain in breach of the CRC Order."
The CRC remains highly controversial, with a number of business groups, including the CBI, leading calls for the government to reverse its decision to scrap the original revenue recycling element of the scheme, which was axed last autumn effectively turning the scheme into a carbon tax.
Meanwhile, some green groups have also criticised the scheme's complexity, arguing that a simple carbon tax would represent a less onerous means of driving investment in energy efficiency.
The government and the Environment Agency are currently seeking feedback on the costs of complying with the CRC with a view to simplifying the scheme, and are inviting participants to provide information on their experiences through an online survey.
The deadline for registering responses to the survey is the end of August.
More than 90 per cent of firms have met the first reporting deadline imposed by the Carbon Reduction Commitment (CRC) scheme, providing detailed data on their carbon footprint to the Environment Agency.
According to figures released yesterday by the watchdog, 4,295 reports were lodged with the agency ahead of last month's deadline, out of an anticipated 4,549 organisations that are thought to face CRC reporting obligations.
The result means that around 95 per cent of the companies and public sector bodies required to file official CRC carbon reports have met the first reporting deadline.
The Environment Agency said that the reports cover over 60 million tonnes of carbon emissions, equivalent to more than 10 per cent of the UK's total carbon footprint.
The high level of compliance was arguably greater than had been anticipated given earlier reports that large numbers of organisations were either unaware of the new rules or ill-prepared to report on their carbon emissions.
"This is a new scheme for the UK, so we are pleased that the vast majority of organisations required to submit a report have done so by the deadline," said Tony Grayling, head of climate change and communities at the Environment Agency, in a statement.
He added that the high level of compliance meant the agency was now well positioned to produce the first public CRC league table in the autumn, which will rank companies based on their energy efficiency performance.
A spokeswoman for the Environment Agency told BusinessGreen that those organisations that failed to lodge an official report detailing their energy use and carbon emissions ahead of the deadline would be called on to comply with the rules as soon as possible or risk potential fines.
"We have sent warning letters to non-compliant participants that they have failed to comply with the reporting deadline and civil penalties may apply," she said. "We will keep under review and may decide to impose these penalties if they remain in breach of the CRC Order."
The CRC remains highly controversial, with a number of business groups, including the CBI, leading calls for the government to reverse its decision to scrap the original revenue recycling element of the scheme, which was axed last autumn effectively turning the scheme into a carbon tax.
Meanwhile, some green groups have also criticised the scheme's complexity, arguing that a simple carbon tax would represent a less onerous means of driving investment in energy efficiency.
The government and the Environment Agency are currently seeking feedback on the costs of complying with the CRC with a view to simplifying the scheme, and are inviting participants to provide information on their experiences through an online survey.
The deadline for registering responses to the survey is the end of August.
Isra-Mart srl: Evergreen Solar files for bankruptcy and seeks buyer
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US manufacturer Evergreen Solar yesterday filed for bankruptcy, blaming competition from cheaper Chinese rivals and cuts to clean energy subsidies.
The maker of thin polysilicon wafers announced earlier this year it would need a cash injection after recording first-quarter sales well below expectations.
The company was forced to close its manufacturing plant in Devens, Massachusetts, with the loss of 800 jobs, and prospects looked bleaker still when it failed to reach a deal to restructure its debt that would have made raising capital easier.
Evergreen was popular with investors in 2007 and 2008 because it used far less polysilicon, then priced at almost 10 times today's levels, than its rivals.
But the value of silicon fell dramatically and previously growing solar markets in Italy and Germany slowed as subsidies were cut, meaning global solar panel supplies increased and prices dipped. Evergreen was hit particularly hard – the price of its solar wafers plunged by 35 per cent this year.
The company now plans to sell itself at auction to raise the $485.6m needed to pay its creditors.
Documents filed yesterday show existing investors have launched a 'stalking horse' bid of $165m, while Evergreen is marketed to potential buyers, possibly including competitors such as Renesola, LDK Solar or Norway's Renewable Energy Corp.
In contrasting news, rival US photovoltaic cell manufacturer Ascent Solar has announced that it has signed a $450m deal to set up new facilities in Asia.
The company had lost 64 per cent of its value over this year, but its shares more than doubled on the Nasdaq yesterday morning after the announcement was made.
Ascent agreed to sell a fifth of its shares to Chinese firm TFG Radiant Group as part of a deal that will see the two companies establish a Chinese manufacturing facility with an annual production capacity of 100MW.
The US firm will receive royalties on sales from products produced at the plant and receive up to $250m in licence fees and milestone payments if certain production and cost goals are met.
Ascent retains rights to sell its panels in other countries and will also build a production facility in Colorado, as it looks to concentrate on specialty markets, such as military and defence, off-grid charging in developing countries and integrating its panels on the roofs of buses, trucks and trains.
US manufacturer Evergreen Solar yesterday filed for bankruptcy, blaming competition from cheaper Chinese rivals and cuts to clean energy subsidies.
The maker of thin polysilicon wafers announced earlier this year it would need a cash injection after recording first-quarter sales well below expectations.
The company was forced to close its manufacturing plant in Devens, Massachusetts, with the loss of 800 jobs, and prospects looked bleaker still when it failed to reach a deal to restructure its debt that would have made raising capital easier.
Evergreen was popular with investors in 2007 and 2008 because it used far less polysilicon, then priced at almost 10 times today's levels, than its rivals.
But the value of silicon fell dramatically and previously growing solar markets in Italy and Germany slowed as subsidies were cut, meaning global solar panel supplies increased and prices dipped. Evergreen was hit particularly hard – the price of its solar wafers plunged by 35 per cent this year.
The company now plans to sell itself at auction to raise the $485.6m needed to pay its creditors.
Documents filed yesterday show existing investors have launched a 'stalking horse' bid of $165m, while Evergreen is marketed to potential buyers, possibly including competitors such as Renesola, LDK Solar or Norway's Renewable Energy Corp.
In contrasting news, rival US photovoltaic cell manufacturer Ascent Solar has announced that it has signed a $450m deal to set up new facilities in Asia.
The company had lost 64 per cent of its value over this year, but its shares more than doubled on the Nasdaq yesterday morning after the announcement was made.
Ascent agreed to sell a fifth of its shares to Chinese firm TFG Radiant Group as part of a deal that will see the two companies establish a Chinese manufacturing facility with an annual production capacity of 100MW.
The US firm will receive royalties on sales from products produced at the plant and receive up to $250m in licence fees and milestone payments if certain production and cost goals are met.
Ascent retains rights to sell its panels in other countries and will also build a production facility in Colorado, as it looks to concentrate on specialty markets, such as military and defence, off-grid charging in developing countries and integrating its panels on the roofs of buses, trucks and trains.
Isra-Mart srl: Allocation of aviation allowances in an EEA-wide Emissions Trading System
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The total quantity of allowances to be allocated to aircraft operators is determined based on the "historical" CO2 emissions from the aviation sector (average of the annual emissions from years 2004, 2005 and 2006). The total quantity of allowances to be allocated in 2012 will be equal to 97% of the EEA-wide estimated historical aviation emissions. In the period 2013-2020 this percentage will be reduced to 95% of the EEA-wide estimated historical aviation emissions.
Historical aviation emissions
The EU-wide historical aviation emissions were established by the European Commission in its decision of 7 March 2011. In addition, the historical emissions figure related to the extension of the aviation part of the EU ETS to two EEA-EFTA countries (Iceland and Norway) has been calculated. It has been added to the figure for EU-27 in order to set the EEA-wide historical aviation emissions.
The decision on the EEA-wide historical aviation emissions adopted on 1 July 2011 serves as the basis to calculate the EEA-wide cap for aviation, which is now set at 221 420 279 tonnes of CO2. This figure represents the average of the annual emissions for the years 2004, 2005 and 2006 of all activities covered by the scope of the legislation.
The calculation of historical aviation emissions is based on data from Eurocontrol (the European Organisation for the Safety of Air Navigation) and actual fuel consumption information provided by aircraft operators. Additional calculations were carried out to account for fuel consumption associated with the use of the auxiliary power units (APUs) on aircraft at airports.
All legislative documents as well as the methodology describing the calculation of historical aviation emissions are available under the "Documentation" tab on top of this page.
Total quantity of allowances allocated to aviation sector
The total quantity of allowances to be allocated for the aviation sector (cap) in 2012 will be equal to 97% of the EEA-wide historical aviation emissions. In the period 2013-2020 this percentage will be reduced to 95%.
The Directive 2008/101/EC foresees that in 2012, 85% of the allowances will be given for free to aircraft operators and 15% of the allowances will be allocated by auctioning. In the trading period 2013-2020, 82% of the allowances will be granted for free to aircraft operators, 15% of the CO2 allowances will be assigned by auctioning and the remaining 3% will remain in a special reserve for later distribution to fast growing airlines and new entrants into the market.
On 30 June 2011 the Commission adopted a decision on the quantity of allowances to be allocated to aircraft operators free of charge, to be auctioned and the number of allowances in the special reserve. The decision covers two trading periods: 2012 and 2013-2020.
The total quantity of allowances to be allocated to aircraft operators is determined based on the "historical" CO2 emissions from the aviation sector (average of the annual emissions from years 2004, 2005 and 2006). The total quantity of allowances to be allocated in 2012 will be equal to 97% of the EEA-wide estimated historical aviation emissions. In the period 2013-2020 this percentage will be reduced to 95% of the EEA-wide estimated historical aviation emissions.
Historical aviation emissions
The EU-wide historical aviation emissions were established by the European Commission in its decision of 7 March 2011. In addition, the historical emissions figure related to the extension of the aviation part of the EU ETS to two EEA-EFTA countries (Iceland and Norway) has been calculated. It has been added to the figure for EU-27 in order to set the EEA-wide historical aviation emissions.
The decision on the EEA-wide historical aviation emissions adopted on 1 July 2011 serves as the basis to calculate the EEA-wide cap for aviation, which is now set at 221 420 279 tonnes of CO2. This figure represents the average of the annual emissions for the years 2004, 2005 and 2006 of all activities covered by the scope of the legislation.
The calculation of historical aviation emissions is based on data from Eurocontrol (the European Organisation for the Safety of Air Navigation) and actual fuel consumption information provided by aircraft operators. Additional calculations were carried out to account for fuel consumption associated with the use of the auxiliary power units (APUs) on aircraft at airports.
All legislative documents as well as the methodology describing the calculation of historical aviation emissions are available under the "Documentation" tab on top of this page.
Total quantity of allowances allocated to aviation sector
The total quantity of allowances to be allocated for the aviation sector (cap) in 2012 will be equal to 97% of the EEA-wide historical aviation emissions. In the period 2013-2020 this percentage will be reduced to 95%.
The Directive 2008/101/EC foresees that in 2012, 85% of the allowances will be given for free to aircraft operators and 15% of the allowances will be allocated by auctioning. In the trading period 2013-2020, 82% of the allowances will be granted for free to aircraft operators, 15% of the CO2 allowances will be assigned by auctioning and the remaining 3% will remain in a special reserve for later distribution to fast growing airlines and new entrants into the market.
On 30 June 2011 the Commission adopted a decision on the quantity of allowances to be allocated to aircraft operators free of charge, to be auctioned and the number of allowances in the special reserve. The decision covers two trading periods: 2012 and 2013-2020.
Isra-Mart srl: les compagnies aériennes européennes craignent la concurrence
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A moins d’un an de l’application du projet européen anti-CO2, les compagnies aériennes françaises s’inquiètent de voir leurs concurrents échapper au dispositif et prendre un avantage concurrentiel non négligeable.
Au 1er janvier 2012, les compagnies aériennes européennes devront payer leurs émissions de CO2 en intégrant le marché des quotas d’émissions de CO2 (ETS). L’union européenne prévoit alors de leur attribuer un quota correspondant à 85% de leurs émissions annuelles moyennes sur le période 2004-2006. Au delà de ce quota, elle devront acheter des droits à émettre à un prix qui pourrait avoisiner les 28 dollars la tonne.
Si elles préfèrent ce système plutôt qu’une taxe pure et simple, les compagnies européennes, Air France- KLM en tête, émettent néanmoins certains doutes sur le dispositif. Jean-Cyril Spinetta, président du conseil d’administration de la compagnie européenne, confie aux Echos aujourd’hui qu’un tarif de 28 euros la tonne pourrait représenter un coût supplémentaire pour la compagnie aérienne de 150 millions d’euros la première année.
Par ailleurs, la question de la concurrence internationale occupe également toujours une place importante dans les débats. L’Organisation de l’aviation civile internationale interdit à l’Union européenne d’imposer l’ETS aux compagnies étrangères et plusieurs d’entre-elles ont déjà fait savoir qu’elles le rejetteraient. La question de l’imposition d’une taxe sur les vols au départ de l’Europe revient donc dans les discussions.
A moins d’un an de l’application du projet européen anti-CO2, les compagnies aériennes françaises s’inquiètent de voir leurs concurrents échapper au dispositif et prendre un avantage concurrentiel non négligeable.
Au 1er janvier 2012, les compagnies aériennes européennes devront payer leurs émissions de CO2 en intégrant le marché des quotas d’émissions de CO2 (ETS). L’union européenne prévoit alors de leur attribuer un quota correspondant à 85% de leurs émissions annuelles moyennes sur le période 2004-2006. Au delà de ce quota, elle devront acheter des droits à émettre à un prix qui pourrait avoisiner les 28 dollars la tonne.
Si elles préfèrent ce système plutôt qu’une taxe pure et simple, les compagnies européennes, Air France- KLM en tête, émettent néanmoins certains doutes sur le dispositif. Jean-Cyril Spinetta, président du conseil d’administration de la compagnie européenne, confie aux Echos aujourd’hui qu’un tarif de 28 euros la tonne pourrait représenter un coût supplémentaire pour la compagnie aérienne de 150 millions d’euros la première année.
Par ailleurs, la question de la concurrence internationale occupe également toujours une place importante dans les débats. L’Organisation de l’aviation civile internationale interdit à l’Union européenne d’imposer l’ETS aux compagnies étrangères et plusieurs d’entre-elles ont déjà fait savoir qu’elles le rejetteraient. La question de l’imposition d’une taxe sur les vols au départ de l’Europe revient donc dans les discussions.
Friday, August 19, 2011
Isra-Mart srl: Indian prime minister throws weight behind green reforms
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India's prime minister Manmohan Singh has today outlined his government's plans for a more robust environmental protection regime backed by a new green watchdog tasked with cracking down on illegal or environmentally damaging developments.
Speaking as part of his annual Independence Day address, Singh confirmed plans, that he announced last month, to launch a new independent National Environment Appraisal and Monitoring Authority (NEAMA) that would aim to take controversial planning decisions out of the hands of elected officials.
The Indian government has faced criticism from green groups in recent years for waving through projects with significant environmental impacts without carrying out adequate impact assessments – a practice that Singh has said must end.
The prime minister today again stressed the need to revamp agricultural infrastructure and land ownership rules in order to enable more sustainable and low carbon development.
"Preserving our environment even as we develop rapidly is a huge challenge for us," he said. "Climate change poses a threat to both our development processes and our natural resources."
He said that in addition to enacting the new NEAMA watchdog, the government had also established eight "missions" to tackle climate change, including the high-profile Solar Mission, which aims to deliver 20GW of new solar energy capacity by 2020.
He also added that the government had recently set up the National Ganga River Basin Authority to help protect and clean the river Ganga, and established the National Green Tribunal "for quick disposal of cases involving environmental issues".
India's prime minister Manmohan Singh has today outlined his government's plans for a more robust environmental protection regime backed by a new green watchdog tasked with cracking down on illegal or environmentally damaging developments.
Speaking as part of his annual Independence Day address, Singh confirmed plans, that he announced last month, to launch a new independent National Environment Appraisal and Monitoring Authority (NEAMA) that would aim to take controversial planning decisions out of the hands of elected officials.
The Indian government has faced criticism from green groups in recent years for waving through projects with significant environmental impacts without carrying out adequate impact assessments – a practice that Singh has said must end.
The prime minister today again stressed the need to revamp agricultural infrastructure and land ownership rules in order to enable more sustainable and low carbon development.
"Preserving our environment even as we develop rapidly is a huge challenge for us," he said. "Climate change poses a threat to both our development processes and our natural resources."
He said that in addition to enacting the new NEAMA watchdog, the government had also established eight "missions" to tackle climate change, including the high-profile Solar Mission, which aims to deliver 20GW of new solar energy capacity by 2020.
He also added that the government had recently set up the National Ganga River Basin Authority to help protect and clean the river Ganga, and established the National Green Tribunal "for quick disposal of cases involving environmental issues".
Isra-Mart srl: E.ON buys 112 Vestas turbines for US wind farm
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Vestas has bagged a 202MW order from E.ON's North America climate and renewables division, providing a further boon for the wind turbine manufacturer ahead of its half-year results on Wednesday.
The Danish manufacturer today confirmed that E.ON has ordered 112 of its V100-1.8MW turbines for an unnamed wind farm in the US.
Delivery is scheduled for the first half of 2012 and commissioning is expected in mid-2012. Once finished, the project will provide enough electricity to power more than 60,000 American homes for a year.
Martha Wyrsch, president of Vestas-American Wind Technology, said the company was looking forwards to working with E.ON again. It also supplied 109 machines to E.ON's 180 MW Papalote Creek wind farm in Texas in 2009.
"E.ON chose a turbine that is specifically designed to capture the lower wind speeds of this area," she added.
The order marks Vestas' sixth North American deal during 2011. The total capacity now comes to 976MW across three turbine models.
The news comes as analysts Matrix today downplayed concerns that Vestas will cut its 2011 guidance during its second-quarter results announcement on Wednesday.
Vestas' shares have fallen 22 per cent since June 30, compared with a 12 per cent decline in the MSCI World index. However, the analysts said the weakness was likely a reflection of general "flight from high-beta, subsidy-driven sectors" by investors, and not a statement on Vestas' prospects.
Matrix retained its buy recommendation for Vestas, claiming it has sufficient projects on the order book to cover 2011 revenue and EBIT forecasts, despite a recent slowdown in order intake.
"We maintain our buy rating and DKK234 price target on the stock," it said, while noting the risk of a cut in global renewable energy incentives, which could lead to weaker-than-expected orders.
Vestas has bagged a 202MW order from E.ON's North America climate and renewables division, providing a further boon for the wind turbine manufacturer ahead of its half-year results on Wednesday.
The Danish manufacturer today confirmed that E.ON has ordered 112 of its V100-1.8MW turbines for an unnamed wind farm in the US.
Delivery is scheduled for the first half of 2012 and commissioning is expected in mid-2012. Once finished, the project will provide enough electricity to power more than 60,000 American homes for a year.
Martha Wyrsch, president of Vestas-American Wind Technology, said the company was looking forwards to working with E.ON again. It also supplied 109 machines to E.ON's 180 MW Papalote Creek wind farm in Texas in 2009.
"E.ON chose a turbine that is specifically designed to capture the lower wind speeds of this area," she added.
The order marks Vestas' sixth North American deal during 2011. The total capacity now comes to 976MW across three turbine models.
The news comes as analysts Matrix today downplayed concerns that Vestas will cut its 2011 guidance during its second-quarter results announcement on Wednesday.
Vestas' shares have fallen 22 per cent since June 30, compared with a 12 per cent decline in the MSCI World index. However, the analysts said the weakness was likely a reflection of general "flight from high-beta, subsidy-driven sectors" by investors, and not a statement on Vestas' prospects.
Matrix retained its buy recommendation for Vestas, claiming it has sufficient projects on the order book to cover 2011 revenue and EBIT forecasts, despite a recent slowdown in order intake.
"We maintain our buy rating and DKK234 price target on the stock," it said, while noting the risk of a cut in global renewable energy incentives, which could lead to weaker-than-expected orders.
Isra-Mart srl: Atlantis flicks switch on giant 1MW tidal turbine
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Scotland's first grid-connected, commercial-scale tidal turbine came online last week when Atlantis Resources Corporation flicked the switch on its AR1000 device at the European Marine Energy Centre (EMEC) in Orkney.
The 1MW capacity, three-blade turbine stands 22.5 metres high and has an 18 metre rotor diameter, making it one of the largest marine turbines ever built.
It will be tested for two years in the waters off Orkney before being deployed in Scotland's Pentland Firth.
Atlantis has a 10 per cent stake in MeyGen, a joint venture with International Power and investment bank Morgan Stanley, which won the right to develop the Inner Sound site in October last year.
Tim Cornelius, Atlantis chief executive, said that the deployment of the AR1000 represents the culmination of a long development process, including fine-tuning the nacelle from its earlier two-rotor, AK1000 turbine.
"Our business enters the next phase of its evolution in great shape and I want to thank the huge ecosystem of technology partners, suppliers, contractors and industry figureheads who have supported us to date," Cornelius said in a statement.
"We will continue to invest in the AK1000 research and development programme as the supply chain matures, but our customers need commercial reliability and that's what the AR1000 system can give them today."
The AK1000 will soon be joined at EMEC by rival developer Aquamarine Power's Oyster 800. The 800kW wave energy device, which was unveiled last month, is set to be far more efficient that its 315kW predecessor, and Aquamarine plans to fit two more devices off the coast of Orkney in 2012 and 2013.
All three Oysters will eventually form a 2.4MW array linked to an onshore hydro-electric plant, the company said.
The west of Scotland could also see a further marine energy boost after Argyll and Bute council revealed that it is bidding for £20m of government funds to develop the town of Oban as a renewable energy hub.
Council leader Dick Walsh told The Scotsman today that discussions are already underway with renewable energy industry and government representatives, adding that ScottishPower's proposed Argyll Array wind farm off the coast makes Oban the ideal location for a west coast service centre.
Scotland's first grid-connected, commercial-scale tidal turbine came online last week when Atlantis Resources Corporation flicked the switch on its AR1000 device at the European Marine Energy Centre (EMEC) in Orkney.
The 1MW capacity, three-blade turbine stands 22.5 metres high and has an 18 metre rotor diameter, making it one of the largest marine turbines ever built.
It will be tested for two years in the waters off Orkney before being deployed in Scotland's Pentland Firth.
Atlantis has a 10 per cent stake in MeyGen, a joint venture with International Power and investment bank Morgan Stanley, which won the right to develop the Inner Sound site in October last year.
Tim Cornelius, Atlantis chief executive, said that the deployment of the AR1000 represents the culmination of a long development process, including fine-tuning the nacelle from its earlier two-rotor, AK1000 turbine.
"Our business enters the next phase of its evolution in great shape and I want to thank the huge ecosystem of technology partners, suppliers, contractors and industry figureheads who have supported us to date," Cornelius said in a statement.
"We will continue to invest in the AK1000 research and development programme as the supply chain matures, but our customers need commercial reliability and that's what the AR1000 system can give them today."
The AK1000 will soon be joined at EMEC by rival developer Aquamarine Power's Oyster 800. The 800kW wave energy device, which was unveiled last month, is set to be far more efficient that its 315kW predecessor, and Aquamarine plans to fit two more devices off the coast of Orkney in 2012 and 2013.
All three Oysters will eventually form a 2.4MW array linked to an onshore hydro-electric plant, the company said.
The west of Scotland could also see a further marine energy boost after Argyll and Bute council revealed that it is bidding for £20m of government funds to develop the town of Oban as a renewable energy hub.
Council leader Dick Walsh told The Scotsman today that discussions are already underway with renewable energy industry and government representatives, adding that ScottishPower's proposed Argyll Array wind farm off the coast makes Oban the ideal location for a west coast service centre.
Isra-Mart srl: Chinese protests force chemical plant shutdown
China's promised crackdown on polluting industries has claimed a major scalp after the government responded to protests in the north-eastern port city of Dalian by ordering the shutdown and relocation of a large chemical plant.
The state-owned news agency Xinhua reported that more that 12,000 people demonstrated over pollution fears related to the Fujia chemical plant, which produces the potentially toxic chemical paraxylene, or PX.
The protests were sparked after Tropical Storm Muifa last week breached a dyke guarding the chemical plant, prompting fears that PX could leak into local water supplies and lead to an evacuation of some local residents.
PX is used in the production of polyester, but it can cause respiratory problems in humans, while prolonged exposure has been known to damage the nervous system and even cause fatalities.
Xinhua reported that there had been no leaks from the plant, but protestors still gathered yesterday to demand the closure of the plant, prompting a number of minor scuffles with police.
In a rare move, the news agency reported that the municipal committee of the Communist Party and the government had ordered an immediate shutdown of the plant, while local government officials told the crowd that they would move the plant out of the city.
The move marks the second time environmental protests have prompted the Chinese government to relocate a PX plant, after officials in the south-eastern city of Xiamen announced in 2007 that a planned chemical plant would be moved to a less populated area.
The decision is also the latest evidence that the Chinese government is seeking to tighten environmental regulations following a series of speeches and policy measures from senior government officials highlighting the need to curb pollution levels and carbon emissions.
Speaking ahead of the launch of the latest five-year plan in March this year, which contained a series of targets designed to reduce the carbon intensity of China's economy, premier Wen Jiabao said the government would actively move to better balance economic growth with the need to protect the environment. "We must not any longer sacrifice the environment for the sake of rapid growth and reckless rollouts," he said.
The shift in strategy could have a significant impact for heavy industry and manufacturing investors who have long regarded China as a market where relatively lax environmental regulations can allow for the rapid expansion of polluting industries.
In recent years, however, a host of measures have been deployed to try and tighten environmental regulations and law enforcement, while the government famously also moved to unilaterally shut down carbon-intensive factories in 2010 in order to ensure that energy-efficiency targets were met
Isra-Mart srl: DECC opens £3m social housing renewable heat fund
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Social housing landlords have today been invited to enter a £3m competition to install renewable heat technologies, such as solar thermal panels and ground source heat pumps, in the homes of tenants.
The Department of Energy and Climate Change (DECC) formally launched the £3m social housing element of the Renewable Heat Premium Payment Scheme (RHPP), after unveiling the general £12m pot for all homeowners at the start of this month.
Registered providers of social housing, such as local authorities and social housing associations, will be able to bid for up to €200,000 (£175,000) to help fund the installation of renewable heat technologies.
Landlords have one month from today to bid, with applications closing on 15 September. Successful landlords will then need to install the technologies by March 2012, after which they will be reimbursed for their investments by DECC.
Energy and climate change minister Greg Barker said the social housing element of the RHPP was directly targeted at those at risk of fuel poverty.
"It will drive the take-up of new heating technologies in social housing and help slash their dependence on big energy companies and expensive tariffs," he said in a statement.
"In the face of rising gas and electricity bills, the Premium Payment scheme is a valuable way for people to get involved in energy generation at a local level, insulating them from volatile fossil fuel costs and ensuring homes are heated in a greener, more sustainable way."
Eligible technologies include biomass boilers, solar thermal panels, ground source heat pumps, air-to-water-source heat pumps and water-to-water-source heat pumps.
David Orr, chief executive of the National Housing Federation, welcomed the launch of the competition.
"[It will] assist social housing providers, such as housing associations, to increase their use of renewable heating technologies and so reduce emissions," he said.
Further details on how to apply and the terms and conditions for the competition can be viewed at the Energy Saving Trust's website.
The move comes just weeks ahead of the launch of the business section of the Renewable Heat Incentive scheme, which from this autumn will allow firms that install renewable heat technologies to qualify for guaranteed payments based on how much heat they generate.
Social housing landlords have today been invited to enter a £3m competition to install renewable heat technologies, such as solar thermal panels and ground source heat pumps, in the homes of tenants.
The Department of Energy and Climate Change (DECC) formally launched the £3m social housing element of the Renewable Heat Premium Payment Scheme (RHPP), after unveiling the general £12m pot for all homeowners at the start of this month.
Registered providers of social housing, such as local authorities and social housing associations, will be able to bid for up to €200,000 (£175,000) to help fund the installation of renewable heat technologies.
Landlords have one month from today to bid, with applications closing on 15 September. Successful landlords will then need to install the technologies by March 2012, after which they will be reimbursed for their investments by DECC.
Energy and climate change minister Greg Barker said the social housing element of the RHPP was directly targeted at those at risk of fuel poverty.
"It will drive the take-up of new heating technologies in social housing and help slash their dependence on big energy companies and expensive tariffs," he said in a statement.
"In the face of rising gas and electricity bills, the Premium Payment scheme is a valuable way for people to get involved in energy generation at a local level, insulating them from volatile fossil fuel costs and ensuring homes are heated in a greener, more sustainable way."
Eligible technologies include biomass boilers, solar thermal panels, ground source heat pumps, air-to-water-source heat pumps and water-to-water-source heat pumps.
David Orr, chief executive of the National Housing Federation, welcomed the launch of the competition.
"[It will] assist social housing providers, such as housing associations, to increase their use of renewable heating technologies and so reduce emissions," he said.
Further details on how to apply and the terms and conditions for the competition can be viewed at the Energy Saving Trust's website.
The move comes just weeks ahead of the launch of the business section of the Renewable Heat Incentive scheme, which from this autumn will allow firms that install renewable heat technologies to qualify for guaranteed payments based on how much heat they generate.
Isra-Mart srl: Nickel catalysts aim to boost hydrogen fuel cells
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Scientists in America have moved a step closer to creating energy-storing hydrogen quickly and cost effectively by using a synthetic catalyst based on natural nickel enzymes.
Researchers from the US Department of Energy's Pacific Northwest National Laboratory (PNNL) say they have broken the speed record for producing hydrogen using the experimental catalyst.
Traditional hydrogen production processes use catalysts that rely on expensive metals such as platinum. Nickel is cheaper and more abundant, but is too weak to be used in its original form.
Copying natural energy storage reactions, the researchers wanted to recreate the final part of the process, in which two hydrogen atoms are snapped together using a protein called hydrogenase as a catalyst.
The catalyst dismantles atoms then moves the resulting electrons into the right positions so they can be put back together in a new structure.
However, natural hydrogenase has a shorter lifespan and is fairly weak, so the team took the active portion of the protein and made it stronger using "pendant amines" as a catalyst and a nickel atom to add an extra electron to the processes.
This step is just one of a series of reactions to split water and make hydrogen, but the researchers said the result shows they can learn from nature how to control those reactions to make durable synthetic catalysts that can produce hydrogen for use in fuel cells.
"This nickel-based catalyst is really very fast," said report co-author Morris Bullock of PNNL. "It's about 100 times faster than the previous catalyst record. And from nature, we knew it could be done with abundant and inexpensive nickel or iron."
However, despite the speeds achieved, the process currently requires more electricity than is practical, meaning that it is not yet a commercially viable process.
Scientists in America have moved a step closer to creating energy-storing hydrogen quickly and cost effectively by using a synthetic catalyst based on natural nickel enzymes.
Researchers from the US Department of Energy's Pacific Northwest National Laboratory (PNNL) say they have broken the speed record for producing hydrogen using the experimental catalyst.
Traditional hydrogen production processes use catalysts that rely on expensive metals such as platinum. Nickel is cheaper and more abundant, but is too weak to be used in its original form.
Copying natural energy storage reactions, the researchers wanted to recreate the final part of the process, in which two hydrogen atoms are snapped together using a protein called hydrogenase as a catalyst.
The catalyst dismantles atoms then moves the resulting electrons into the right positions so they can be put back together in a new structure.
However, natural hydrogenase has a shorter lifespan and is fairly weak, so the team took the active portion of the protein and made it stronger using "pendant amines" as a catalyst and a nickel atom to add an extra electron to the processes.
This step is just one of a series of reactions to split water and make hydrogen, but the researchers said the result shows they can learn from nature how to control those reactions to make durable synthetic catalysts that can produce hydrogen for use in fuel cells.
"This nickel-based catalyst is really very fast," said report co-author Morris Bullock of PNNL. "It's about 100 times faster than the previous catalyst record. And from nature, we knew it could be done with abundant and inexpensive nickel or iron."
However, despite the speeds achieved, the process currently requires more electricity than is practical, meaning that it is not yet a commercially viable process.
Isra-Mart srl: Smart meter installations to near one billion by 2020
www.isra-mart.com
The number of smart meter installations around the world will increase almost four-fold over the next decade, nearing one billion by 2020, according to a new study from Pike Research.
The report, released last week, predicts that the rapid rollout of smart meters in China will ensure that the sector's stellar growth rates can be maintained through to the end of the decade.
According to the research firm, the installed global base for smart meters will reach 251 million units by the end of this year before more than doubling to 535 million units by 2015. Growth is then expected to slow fractionally during the second half of the decade, with the report predicting the total number of installations will reach 963 million by 2020.
"Smart meters represent a compelling value proposition for utilities around the world," said research director Bob Gohn. "The industry has made significant headway during the past two years, and the growing installed base of smart meters will be an important precursor of more diverse energy management solutions in the years to come."
The market is expected to peak in 2015, with around 100 million installations taking place before experiencing a gradual contraction as the smart meters become more commonplace. The report predicts that by 2018 smart meters will represent the majority of electricity meters installed and that by 2020 smart meter penetration globally will reach nearly 60 per cent of the available market.
The report, entitled Smart Meter Market Forecasts, also notes that with a number of governments pushing through mandatory smart meter rollouts, the market will experience "regional waves of adoption".
As such the North American market is expected to peak in 2012, followed by a peak in the Asia-Pacific region in 2015, and Europe in 2017.
The number of smart meter installations around the world will increase almost four-fold over the next decade, nearing one billion by 2020, according to a new study from Pike Research.
The report, released last week, predicts that the rapid rollout of smart meters in China will ensure that the sector's stellar growth rates can be maintained through to the end of the decade.
According to the research firm, the installed global base for smart meters will reach 251 million units by the end of this year before more than doubling to 535 million units by 2015. Growth is then expected to slow fractionally during the second half of the decade, with the report predicting the total number of installations will reach 963 million by 2020.
"Smart meters represent a compelling value proposition for utilities around the world," said research director Bob Gohn. "The industry has made significant headway during the past two years, and the growing installed base of smart meters will be an important precursor of more diverse energy management solutions in the years to come."
The market is expected to peak in 2015, with around 100 million installations taking place before experiencing a gradual contraction as the smart meters become more commonplace. The report predicts that by 2018 smart meters will represent the majority of electricity meters installed and that by 2020 smart meter penetration globally will reach nearly 60 per cent of the available market.
The report, entitled Smart Meter Market Forecasts, also notes that with a number of governments pushing through mandatory smart meter rollouts, the market will experience "regional waves of adoption".
As such the North American market is expected to peak in 2012, followed by a peak in the Asia-Pacific region in 2015, and Europe in 2017.
Isra-Mart srl: REpower considers UK offshore turbine manufacturing base
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The UK's offshore wind industry could soon receive another boost, now that German turbine manufacturer REpower became the latest firm to reveal it is actively considering plans to open a UK factory.
A host of leading manufacturers, including General Electric, Vestas, Siemens and Mitsubishi, have all revealed in recent months that they are all considering developing new manufacturing facilities in the UK to serve a booming offshore wind energy market that could see 18GW of capacity installed over the next decade.
Most recently, Vestas announced it had acquired a tranche of land at Sheerness in Kent, where it could locate a new turbine factory, while Siemens is widely expected to announce final confirmation for its proposed manufacturing plant on Humberside within the next few months.
Now REpower, the company that provided 5MW turbines to the soon to be completed 150MW Ormonde offshore wind farm near Barrow, has hinted it could follow suit after revealing that work is underway to select a suitable location for a British factory.
Speaking to BusinessGreen, Norbert Giese, vice president for offshore development at REpower Systems, refused to reveal the names of the sites under consideration, but confirmed that a number of possible locations were being looked at that could be used to produce the company's new 6.15MW turbines.
"We are screening the market in terms of suitable harbour facilities with the right space and skills base," he said. "That is what we are doing behind the curtain, so we can move quickly if we decide there is the demand in the market from customers to justify the investment."
Giese stressed that any investment would be dependent on the company's success securing orders from the giant Round 3 wind farm projects, construction on which is expected to start from 2016.
He also hinted that the company could wait to secure orders before giving the green light to any UK factory.
"We think we could get a facility in place in 15 to 18 months," he said. "We have shown with our existing offshore turbine factory in Germany that we can deliver a new facility in that time."
The UK's offshore wind industry could soon receive another boost, now that German turbine manufacturer REpower became the latest firm to reveal it is actively considering plans to open a UK factory.
A host of leading manufacturers, including General Electric, Vestas, Siemens and Mitsubishi, have all revealed in recent months that they are all considering developing new manufacturing facilities in the UK to serve a booming offshore wind energy market that could see 18GW of capacity installed over the next decade.
Most recently, Vestas announced it had acquired a tranche of land at Sheerness in Kent, where it could locate a new turbine factory, while Siemens is widely expected to announce final confirmation for its proposed manufacturing plant on Humberside within the next few months.
Now REpower, the company that provided 5MW turbines to the soon to be completed 150MW Ormonde offshore wind farm near Barrow, has hinted it could follow suit after revealing that work is underway to select a suitable location for a British factory.
Speaking to BusinessGreen, Norbert Giese, vice president for offshore development at REpower Systems, refused to reveal the names of the sites under consideration, but confirmed that a number of possible locations were being looked at that could be used to produce the company's new 6.15MW turbines.
"We are screening the market in terms of suitable harbour facilities with the right space and skills base," he said. "That is what we are doing behind the curtain, so we can move quickly if we decide there is the demand in the market from customers to justify the investment."
Giese stressed that any investment would be dependent on the company's success securing orders from the giant Round 3 wind farm projects, construction on which is expected to start from 2016.
He also hinted that the company could wait to secure orders before giving the green light to any UK factory.
"We think we could get a facility in place in 15 to 18 months," he said. "We have shown with our existing offshore turbine factory in Germany that we can deliver a new facility in that time."
Isra-Mart srl: US government hails billion-tonne sustainable biomass supply
www.isra-mart.com
The US could produce over a billion tonnes of biomass material to supply the biofuels and bio-energy industries, without having an adverse impact on other agricultural and forestry markets.
That is the conclusion of a major new report released this week by the Department of Energy, which undertakes an in-depth analysis of the potential availability and cost of the primary feedstocks required for the production of biofuels and biomass power.
The biofuel and biomass industries have faced widespread criticism in recent years, with environmental groups warning that their expansion could indirectly increase deforestation, result in potentially harmful land use changes and push up food prices by eating into the supply of available agricultural land.
However, the 229-page report, which updates a previous 2005 study, undertakes a county-by-county inventory of potentially available primary biomass feedstocks and analyses the sustainability of those feedstocks. It concludes the US can support the continued expansion of the bioenergy sector.
"The baseline scenario in the newly released report shows that biomass resources could be increased from a current 473 million dry tonnes annually to nearly 1.1 billion dry tonnes by 2030, under a conservative set of assumptions about future increases in crop yield," the Department of Energy said in a statement.
The report, entitled US Billion-Ton Update 2011, also predicts that improvements in biofuel technologies could allow for the production of around 85 billion gallons of biofuels a year – enough to replace approximately 30 per cent of the nation's current petroleum consumption.
Energy Secretary Steven Chu welcomed the report as further evidence that the biofuel and bioenergy industries can play an increasing role in the US energy mix.
"Developing the next generation of American biofuels and bioenergy will help diversify our energy portfolio, reduce our dependence on foreign oil and produce new clean energy jobs," he said in a statement. "This study identifies resources here at home that can help grow America's bioenergy industry and support new economic opportunities for rural America."
The Department of Energy said the new report featured a more in-depth analysis of the sustainability of different biomass feedstocks than the previous study, including an examination of potential land use changes and the impact on food supplies.
It added that while the bioenergy sector can have negative environmental impacts, effective policies should allow over a billion tonnes of feedstocks to be produced in a sustainable manner, delivering a significant reduction in greenhouse gas emissions.
In particular, it said that widely accepted conservation practices, such as no-till farming and crop rotation, can help to reduce environmental impacts, while in some cases biomass production can lead to environmental improvements.
"For example, removing tree portions that are unfit for market in the forest industry can reduce forest fire risk, and planting energy crops on marginal lands can reduce soil erosion," the department said in a statement.
The US could produce over a billion tonnes of biomass material to supply the biofuels and bio-energy industries, without having an adverse impact on other agricultural and forestry markets.
That is the conclusion of a major new report released this week by the Department of Energy, which undertakes an in-depth analysis of the potential availability and cost of the primary feedstocks required for the production of biofuels and biomass power.
The biofuel and biomass industries have faced widespread criticism in recent years, with environmental groups warning that their expansion could indirectly increase deforestation, result in potentially harmful land use changes and push up food prices by eating into the supply of available agricultural land.
However, the 229-page report, which updates a previous 2005 study, undertakes a county-by-county inventory of potentially available primary biomass feedstocks and analyses the sustainability of those feedstocks. It concludes the US can support the continued expansion of the bioenergy sector.
"The baseline scenario in the newly released report shows that biomass resources could be increased from a current 473 million dry tonnes annually to nearly 1.1 billion dry tonnes by 2030, under a conservative set of assumptions about future increases in crop yield," the Department of Energy said in a statement.
The report, entitled US Billion-Ton Update 2011, also predicts that improvements in biofuel technologies could allow for the production of around 85 billion gallons of biofuels a year – enough to replace approximately 30 per cent of the nation's current petroleum consumption.
Energy Secretary Steven Chu welcomed the report as further evidence that the biofuel and bioenergy industries can play an increasing role in the US energy mix.
"Developing the next generation of American biofuels and bioenergy will help diversify our energy portfolio, reduce our dependence on foreign oil and produce new clean energy jobs," he said in a statement. "This study identifies resources here at home that can help grow America's bioenergy industry and support new economic opportunities for rural America."
The Department of Energy said the new report featured a more in-depth analysis of the sustainability of different biomass feedstocks than the previous study, including an examination of potential land use changes and the impact on food supplies.
It added that while the bioenergy sector can have negative environmental impacts, effective policies should allow over a billion tonnes of feedstocks to be produced in a sustainable manner, delivering a significant reduction in greenhouse gas emissions.
In particular, it said that widely accepted conservation practices, such as no-till farming and crop rotation, can help to reduce environmental impacts, while in some cases biomass production can lead to environmental improvements.
"For example, removing tree portions that are unfit for market in the forest industry can reduce forest fire risk, and planting energy crops on marginal lands can reduce soil erosion," the department said in a statement.
Isra-Mart srl: Solar revenues to dip ahead of long-term gains
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The solar industry will experience a rollercoaster few years as revenues dip ahead of a rapid recovery, according to a major new study from analyst firm Lux Research, which predicts the market will contract from $64.4bn in 2010 to $56.9bn next year, before recovering to more than $65bn by 2016.
The report, which analyses the cost of solar power and rate of return from solar investments across 156 countries, argues that scaling back subsidies in core European markets has resulted in a period of oversupply that has forced down the price of solar panels – a trend that is likely to continue as solar technologies improve.
As a result, the value of the market is expected to fall, despite continued increases in the rate of solar installation, driven in large part by incentive schemes in Japan, China, India and North America.
"The global solar market for grid-connected systems will grow from 15.8GW in 2010 to 37.5GW in 2016, a compound annual growth rate of 15.5 per cent," said Lux Research Analyst Matt Feinstein, in a statement. "However, price declines will outpace volume increases, at least at first – the industry will actually shrink on a revenue basis – from $64.4bn in 2010 to $56.9bn in 2012 before recovering to $65.4bn in 2016."
Significantly, the research backs up predictions from solar manufacturers that solar energy will be able to compete on price with conventional power by the second half of the decade – a scenario known as "grid parity".
The report predicts that 10 states or nations will see commercial rooftop installations reach grid parity by 2016, while seven residential markets will achieve the landmark by the same date, including Hawaii, Italy, Denmark and the Ukraine.
In an another encouraging development for solar manufacturers the report suggests that subsidies or grid parity are not always necessary for solar markets to prosper, as demand can increase as a result of an anticipated future increase in the cost of conventional energy.
The study cites the example of Brazil, where investors in solar installations are expecting to see rates of return of 12 per cent on commercial scale arrays by 2016, despite the absence of a subsidy and the expectation that grid parity will take several more years to materialise.
The report will also provide further ammunition to campaigners in the UK who have roundly criticised the government for cutting incentives for large-scale solar installations earlier than expected and are currently urging ministers not to impose further deep cuts when they review the UK's feed-in tariff incentive scheme next year
The solar industry will experience a rollercoaster few years as revenues dip ahead of a rapid recovery, according to a major new study from analyst firm Lux Research, which predicts the market will contract from $64.4bn in 2010 to $56.9bn next year, before recovering to more than $65bn by 2016.
The report, which analyses the cost of solar power and rate of return from solar investments across 156 countries, argues that scaling back subsidies in core European markets has resulted in a period of oversupply that has forced down the price of solar panels – a trend that is likely to continue as solar technologies improve.
As a result, the value of the market is expected to fall, despite continued increases in the rate of solar installation, driven in large part by incentive schemes in Japan, China, India and North America.
"The global solar market for grid-connected systems will grow from 15.8GW in 2010 to 37.5GW in 2016, a compound annual growth rate of 15.5 per cent," said Lux Research Analyst Matt Feinstein, in a statement. "However, price declines will outpace volume increases, at least at first – the industry will actually shrink on a revenue basis – from $64.4bn in 2010 to $56.9bn in 2012 before recovering to $65.4bn in 2016."
Significantly, the research backs up predictions from solar manufacturers that solar energy will be able to compete on price with conventional power by the second half of the decade – a scenario known as "grid parity".
The report predicts that 10 states or nations will see commercial rooftop installations reach grid parity by 2016, while seven residential markets will achieve the landmark by the same date, including Hawaii, Italy, Denmark and the Ukraine.
In an another encouraging development for solar manufacturers the report suggests that subsidies or grid parity are not always necessary for solar markets to prosper, as demand can increase as a result of an anticipated future increase in the cost of conventional energy.
The study cites the example of Brazil, where investors in solar installations are expecting to see rates of return of 12 per cent on commercial scale arrays by 2016, despite the absence of a subsidy and the expectation that grid parity will take several more years to materialise.
The report will also provide further ammunition to campaigners in the UK who have roundly criticised the government for cutting incentives for large-scale solar installations earlier than expected and are currently urging ministers not to impose further deep cuts when they review the UK's feed-in tariff incentive scheme next year
Isra-Mart srl: Barclays snaps up wind farm stake as onshore developments expand
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The UK's onshore wind industry has enjoyed a flurry of activity this week, after leading developers sought to expand and offload a number of wind farm projects.
Renewable Energy Generation (REG) today announced it has bought five 2MW Vestas V80 GridStreamer turbines to build its Sancton Hill site in Yorkshire.
The project, which was granted planning permission in February this year, is expected to cost approximately £12.5m including turbines and will be funded from REG's existing cash resources.
Turbines are scheduled for delivery in Spring next year, with the site expected to be operational in the first half of 2012. The wind farm is expected to produce approximately 27GWh of output per year and will boast a capacity of 10MW.
REG chief executive Andrew Whalley said the project will increase the company's wind output by 25 per cent to around 133GWh per year and boost its total capacity to 51.15MW.
"We are delighted to be working with Vestas again as its turbines are performing extremely well on a number of our operational sites," he said.
The news came after the RES Group yesterday agreed to sell an 85 per cent equity share in its 26MW Wadlow Wind Farm project, Cambridgeshire, to Barclays Infrastructure Funds.
The companies refused to disclose the value of the deal after it was completed at the end of last week.
RES will retain a 15 per cent share and continue to manage the wind farm once it is operating. It will also retain responsibility for community relations, said Gordon MacDougall, chief operating officer for RES UK and Ireland.
Andy Matthews, managing director of Barclays Infrastructure Funds, said the deal demonstrates the bank's long-term commitment to low-carbon infrastructure and forms part of its continuing expansion in the renewable energy sector.
RES started constructing the wind farm in June, with full power planned for October 2012. The site is expected to provide enough electricity to power 29 per cent of the homes in the South Cambridgeshire District.
The sale is part of a growing trend that has seen developers recycle equity by selling off stakes in complete or near complete wind farms in order to help fund new projects.
Meanwhile, Fred Olsen Renewables (FOR) yesterday announced it is expanding its already consented Mid Hill wind farm, Aberdeenshire.
The company will be submitting a nine-turbine extension in order to fully utilise the 75MW connection at Mid Hill. If consented in time, the extension would be constructed alongside the original project, starting in late 2011.
The company also confirmed it has recently issued tenders for turbines for the 40MW Rothes II wind farm and Mid Hill.
In addition, FOR annouced it has appointed renewable energy consultancy Natural Power to conduct ground investigations on both sites.
Earlier this year, FOR abandoned its offshore wind plans to concentrate its efforts on land. These two projects, if successfully consented, will take the company's portfolio in the UK to 430MW.
The UK's onshore wind industry has enjoyed a flurry of activity this week, after leading developers sought to expand and offload a number of wind farm projects.
Renewable Energy Generation (REG) today announced it has bought five 2MW Vestas V80 GridStreamer turbines to build its Sancton Hill site in Yorkshire.
The project, which was granted planning permission in February this year, is expected to cost approximately £12.5m including turbines and will be funded from REG's existing cash resources.
Turbines are scheduled for delivery in Spring next year, with the site expected to be operational in the first half of 2012. The wind farm is expected to produce approximately 27GWh of output per year and will boast a capacity of 10MW.
REG chief executive Andrew Whalley said the project will increase the company's wind output by 25 per cent to around 133GWh per year and boost its total capacity to 51.15MW.
"We are delighted to be working with Vestas again as its turbines are performing extremely well on a number of our operational sites," he said.
The news came after the RES Group yesterday agreed to sell an 85 per cent equity share in its 26MW Wadlow Wind Farm project, Cambridgeshire, to Barclays Infrastructure Funds.
The companies refused to disclose the value of the deal after it was completed at the end of last week.
RES will retain a 15 per cent share and continue to manage the wind farm once it is operating. It will also retain responsibility for community relations, said Gordon MacDougall, chief operating officer for RES UK and Ireland.
Andy Matthews, managing director of Barclays Infrastructure Funds, said the deal demonstrates the bank's long-term commitment to low-carbon infrastructure and forms part of its continuing expansion in the renewable energy sector.
RES started constructing the wind farm in June, with full power planned for October 2012. The site is expected to provide enough electricity to power 29 per cent of the homes in the South Cambridgeshire District.
The sale is part of a growing trend that has seen developers recycle equity by selling off stakes in complete or near complete wind farms in order to help fund new projects.
Meanwhile, Fred Olsen Renewables (FOR) yesterday announced it is expanding its already consented Mid Hill wind farm, Aberdeenshire.
The company will be submitting a nine-turbine extension in order to fully utilise the 75MW connection at Mid Hill. If consented in time, the extension would be constructed alongside the original project, starting in late 2011.
The company also confirmed it has recently issued tenders for turbines for the 40MW Rothes II wind farm and Mid Hill.
In addition, FOR annouced it has appointed renewable energy consultancy Natural Power to conduct ground investigations on both sites.
Earlier this year, FOR abandoned its offshore wind plans to concentrate its efforts on land. These two projects, if successfully consented, will take the company's portfolio in the UK to 430MW.
Isra-Mart srl: US army to enlist private sector for $7.1bn of renewable energy projects
www.isra-mart.com
The US Army has high hopes of using renewable energy to fulfill a quarter of its energy needs by 2025. But it can not get there without adding large-scale renewable energy projects to its arsenal, so the Army has launched a special task force to enlist the private sector for the challenge.
The Energy Initiatives Office (EIO) Task Force will be operational by September 15 to engage the private sector in identifying and investing in big green power projects that may be built on the Army's vast land holdings.
"Through that office we intend to work very hard with the private sector," said Army Secretary John M. McHugh during a conference call with reporters Wednesday. "It will serve as a one-stop shop to allow the private sector to come and find opportunities for partnership in a variety of renewable energy and alternative energy programs."
And the project has a budget only the military could procure: McHugh said that in order to meet its energy security measures, the Army expects to invest $7.1bn in the task force in the next 10 years.
The federal government is the nation's largest energy consumer, accounting for about 1.5 per cent of use. And the Department of Defense is the biggest driver behind that energy consumption, responsible for about 80 per cent.
"The Army (uses) about 21 per cent of that 80 per cent, so we view ourselves as a target-rich environment in terms of trying to a better job with taxpayer dollars, trying to do a better job in our stewardship of the environment, and perhaps most importantly, in terms of force protection and doing a better job of reducing our reliance on traditional fossil fuels," McHugh said.
He described a partnership between the Army and private sector as a win-win situation. The Army would get access to locally produced clean energy, likely at a fixed price.
"For the private sector, it's a guaranteed customer and opportunity to sell excess power to the outside grid," McHugh said.
Partnering with the private sector ensures the projects will have a strong business case for all involved parties, said Katherine Hammack, assistant secretary of the Army for Installations, Energy and Environment. The EIO Task Force, which is to be staffed with the Army's own renewable energy and financing experts, would focus on streamlining approval and execution for projects in the 10 megawatt-range.
"One of the challenges we have consistently seen is comments that the Army is difficult to deal with and that there are logistical challenges in advancing the projects," Hammack said.
The Army has 126 renewable energy projects underway right now, including a massive solar energy installation at the Army's Fort Irwin base in California, which McHugh said would cover land equivalent to the size of Manhattan.
"We do have a number of bases, Fort Bliss and others, that have we think very promising opportunities for the private sector," he said. "What we're hoping of course is the private sector will help us identify those opportunities that perhaps we haven't looked at as creatively as we'd have liked."
The US Army has high hopes of using renewable energy to fulfill a quarter of its energy needs by 2025. But it can not get there without adding large-scale renewable energy projects to its arsenal, so the Army has launched a special task force to enlist the private sector for the challenge.
The Energy Initiatives Office (EIO) Task Force will be operational by September 15 to engage the private sector in identifying and investing in big green power projects that may be built on the Army's vast land holdings.
"Through that office we intend to work very hard with the private sector," said Army Secretary John M. McHugh during a conference call with reporters Wednesday. "It will serve as a one-stop shop to allow the private sector to come and find opportunities for partnership in a variety of renewable energy and alternative energy programs."
And the project has a budget only the military could procure: McHugh said that in order to meet its energy security measures, the Army expects to invest $7.1bn in the task force in the next 10 years.
The federal government is the nation's largest energy consumer, accounting for about 1.5 per cent of use. And the Department of Defense is the biggest driver behind that energy consumption, responsible for about 80 per cent.
"The Army (uses) about 21 per cent of that 80 per cent, so we view ourselves as a target-rich environment in terms of trying to a better job with taxpayer dollars, trying to do a better job in our stewardship of the environment, and perhaps most importantly, in terms of force protection and doing a better job of reducing our reliance on traditional fossil fuels," McHugh said.
He described a partnership between the Army and private sector as a win-win situation. The Army would get access to locally produced clean energy, likely at a fixed price.
"For the private sector, it's a guaranteed customer and opportunity to sell excess power to the outside grid," McHugh said.
Partnering with the private sector ensures the projects will have a strong business case for all involved parties, said Katherine Hammack, assistant secretary of the Army for Installations, Energy and Environment. The EIO Task Force, which is to be staffed with the Army's own renewable energy and financing experts, would focus on streamlining approval and execution for projects in the 10 megawatt-range.
"One of the challenges we have consistently seen is comments that the Army is difficult to deal with and that there are logistical challenges in advancing the projects," Hammack said.
The Army has 126 renewable energy projects underway right now, including a massive solar energy installation at the Army's Fort Irwin base in California, which McHugh said would cover land equivalent to the size of Manhattan.
"We do have a number of bases, Fort Bliss and others, that have we think very promising opportunities for the private sector," he said. "What we're hoping of course is the private sector will help us identify those opportunities that perhaps we haven't looked at as creatively as we'd have liked."
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