Isra-Mart srl: BT Cool Broadband to take heat out of giant energy footprint

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BT is trialling a new ‘sleep mode' for broadband connections that promises to slash energy use by broadband infrastructure by almost a third, delivering deep cuts in carbon emissions in the process.

Dubbed Cool Broadband, the new system is being piloted at the research and development centre at Martlesham in Suffolk and a nearby exchange, and early indications are that it can cut energy use per line by around 30 per cent.

Speaking to BusinessGreen, BT's recently appointed chief sustainability officer Niall Dunne said the algorithms at the heart of the new technology could deliver major cuts in emissions.

"We want to shift broadband from always on to always available," he said. "The plan is that if the broadband line is 20Mbit/s, then it can go into a sleep mode where it is cut to 200kb/s, which is sufficient to support a phone call. Then it powers back up instantly when people want to use the full broadband connection."

The breakthrough has the potential to deliver a "massive" reduction in energy use, according to Dunne who also revealed that currently BT's infrastructure uses 0.7 per cent of the UK's energy.

The company said there were still some "technical challenges" for the project to overcome, but engineers are now planning a larger trial of the system with a view to rolling it out more widely in the coming years.

The project is part of a raft of sustainability initiatives from BT, which has seen the company sign one of the UK's largest green energy contracts and pursue plans to build two of its wind farms with a view to sourcing a quarter of its energy from renewables by 2016.

Dunne also revealed that the company is expecting to cut its energy bills by £13m and cut its carbon footprint five per cent as the result of the roll out of a new smart meter system across BT's offices.

The company is currently in the process of deploying over 22,000 smart energy meters and 1,500 building energy management systems to monitor and control energy use across its estate and infrastructure.

The wireless smart meters provide real-time updates to a central system that can then automatically control IT, heating, ventilation, and air-conditioning systems to optimise their efficiency.

Dunne said the company-wide system would provide a template that it can then offer to its clients as demand grows for smart meters and automated energy management systems.

Isra-Mart srl: Shipping leaders set course for greener future

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Steps to pioneer energy efficient vessels, make greater of use renewable energy, and design ships that can be reused or recycled are all today included in a new roadmap designed to achieve a "step-change" in the industry's carbon intensity through to 2040.

The document, a "Vision for 2040," will be published later today by think-tank Forum for the Future's Sustainable Shipping Initiative (SSI) and has been endorsed by some of the shipping industry's biggest operators, including Maersk Line, Rio Tinto, Wärtsilä, and BP Shipping.

Each of the 15 signatories has agreed to communicate the work they are doing to curb their environmental impacts and open this up to SSI scrutiny as part of a biannual reporting process.

They also all acknowledge that work to cut emissions must begin immediately if the 2040 vision is to be achieved.

Emissions from the sector account for just over three per cent of the global total, but are predicted to rise by between 150 and 250 per cent over the next 40 years.

"The anticipated, radical changes in the external operating environment indicate an urgent need to reshape the way in which shipping business is conducted," the report says. "Our vision sets out our aspirations for 2040. But we cannot wait until 2040 to become sustainable; we need to act today."

While international negotiations have resulted in technical efficiency standards designed to lower emissions between 25 and 30 per cent by 2030 the SSI says further progress will require a global "beyond-compliance" standard and has tasked members to produce this new measure.

Other stakeholder groups in the SSI will work towards changing the way ships are designed and operated to incorporate more technologies that reduce energy consumption and cut emissions.

Reducing the life-cycle impact of ships will also be considered, while the SSI is aware a new set of financial mechanisms may be needed to ensure "the wider industry can get faster access to the technology available and that the most important new innovations are supported".

The SSI document comes in the same week the Committee on Climate Change is expected to publish its long-awaited review of UK shipping emissions.

The shipping industry remains largely divided on how best to tackle the sector's environmental impacts with some firms and national chambers of shipping calling for demanding new international regulations to curb emissions, and others arguing such measures would drive up shipping costs and damage the global economy.

Isra-Mart srl: Airlines step-up battle against EU carbon trading

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A formal protest against the EU's plans to make airlines pay for the carbon they emit is expected to be launched this week, with 26 countries, including China, Russia and the US, backing the complaint.

All airlines flying in and out of Europe will have to buy carbon allowances to cover emissions from 1 January next year as part of the EU Emissions Trading Scheme (EU ETS).

But a working paper seen by news agency Reuters ahead of the International Civil Aviation Authority (ICAO) meeting in Montreal on Wednesday states that the regulation poses "major challenges and risks for aircraft operators".

The ICAO is expected to vote through resolutions calling on Brussels to ensure that the scheme does not extend to non-EU airlines, and adopt a previous motion proposed in New Delhi earlier this year which labelled the plans discriminatory and in breach of international laws.

The 26 member states expected to oppose the EU are Argentina, Brazil, Burkina Faso, Cameroon, Chile, China, Colombia, Cuba, Egypt, India, Japan, South Korea, Malaysia, Mexico, Nigeria, Paraguay, Peru, Qatar, Russia, Saudi Arabia, Singapore, South Africa, Swaziland, Uganda, the US and the United Arab Emirates.

EU sources told Reuters that, of the non-EU members on the 36-nation ICAO governing body, only Australia and Canada were not originally in agreement with the council working paper, although Canada is now also expected to back the airlines' complaints.

The resolutions are the latest bid by international carriers to limit the impact of the EU's decision, which some estimates say will cost airlines over €10bn by 2020 even though they are receiving 85 per cent of the required permits for free in the first year of their involvement in the scheme.

However, the EU is preparing to resist all calls to reverse its decision to include airlines in the emissions trading scheme.

US airlines look set to fail in their legal efforts to have the decision overturned in the European Court of Justice, after Advocate General Juliane Kokott ruled earlier this month that incorporating aviation emissions into EU ETS was not in breach of international law. She also stated that the airlines' case against the EU was "unconvincing", "untenable" and "erroneous".

The decision prompted the US House of Representatives to further crank up the pressure on the EU by passing a bill that would heavily fine any US airlines complying with European emissions trading.

The bill will now move to the Senate where it is unlikely to pass into law, but the House vote has further underlined the potential for the issue to sour relations between Washington and Brussels.

The EU has so far refused to back down and it is unlikely that the ICAO resolutions will affect its stance, given that the EU only decided to act after more than a decade of negotiations at the ICAO failed to produce an international deal to tackle the aviation sector's emissions, estimated to make up two to three per cent of the global total.

Isra-Mart srl: Feed-in tariff fiasco forces solar firms to start laying off staff this week

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Solar photovoltaic installers will stop taking new orders this week and start laying off employees, after the government launched a consultation this morning that could see deep cuts to feed-in tariff incentives for any project registered after 12 December.

Solar power companies and green groups have united in warning that companies "will go bust" after the Department of Energy and Climate Change (DECC) launched a fast track consultation that would slash solar incentives by over 50 per cent, cutting the feed-in tariffs available to domestic and small scale business installations from 43p per kWh to just 21p per kWh.

BusinessGreen has learned of at least one firm that is now expecting to begin redundancy proceedings this week, as it will need to give staff a 30-day notice period before laying them off. A number of other firms have similarly warned that job cuts will be announced in the coming weeks as a direct result of the government's proposed changes.

"This is not scare-mongering," one industry insider told BusinessGreen. "Those larger solar firms that have diversified will probably survive, but plenty of others will go under and even the larger companies will contract."

Under the proposals the new tariffs would apply to all new solar PV installations with an eligibility date on or after 12 December 2011, meaning installers are now bracing for a six-week rush to complete projects ahead of a dramatic drop in demand.

If brought into effect they would cut rates of return for solar installations from current levels that have in some cases topped 10 per cent to just 4.5 to five per cent.

The government has maintained that the cuts are urgently needed to stop the scheme exceeding its spending cap, a move that would result in higher energy bills as energy firms are forced to cover any extra spending.

But the recently launched Cut Don't Kill campaign has warned that such deep cuts would "kill the UK solar industry stone dead", destroying up to 4,000 companies and 25,000 jobs. It is planning to stage a protest at Downing Street on 23 November in an effort to persuade MPs to block the planned cuts to the Feed-in Tariff and agree to more modest reductions in the level of support.

Howard Johns, of the Cut Don't Kill campaign, explained that, while the industry supports cuts to feed-in tariffs, today's proposals will be too deep and quick to allow the industry to survive.

"We are happy to accept some cuts, but the government must recognise that wiping out 4,000 companies and 25,000 jobs by cutting too deeply would be an appalling waste of economic potential," he said.

"Our message to the government is cut us, but don't kill us - we want a sustainable cut that would allow us to survive and deliver the green growth that David Cameron said he was committed to.

"The government has a choice - either they can cut like this and make an entire industry go bust, or they can work with us to properly plan the phasing out of the tariff bit by bit, which will produce a flourishing industry that won't need any subsidy or support."

Meanwhile a senior executive at one PV installer predicted that the industry would see an 80 per cent drop in demand, which could lead to an equivalent level of redundancies.

"This will result in massive job losses and my company is no exception," he said.

However, other companies argued that the new rates could prove "workable", particularly for those companies which have diversified into other technologies.

David Hunt, director of Eco Environments, which installs wind turbines and heat pumps as well as PV, told BusinessGreen that he is hoping to retain all 46 employees.

However, he added that the company will stop taking new orders today to ensure that it fulfils its current solar order book ahead of the 12 December cut off.

"We've got to install three months' worth of projects in a month, and that's going to be a major headache," he said. " I think we've always suggested the feed-in tariffs were due a cut to the rate, but this deadline is going to have a devastating effect. People will go bust."

Dave Sowden of the Micropower Council warned that the pace of the proposed changes would not only trigger bankruptcies, but result in legal action across the sector's supply chain.

"The timing of the changes is disastrous," he said. "You are giving companies six weeks who will have ordered panels that will have just been put on a ship from China that they will not be able to sell. A lot of people are going to be left with stranded assets and will now be calling in the lawyers to see if they can get out of contracts. You will see people suing each other over this."

Concerns are also mounting that the pace and scale of the proposed changes will have a chilling impact on wider green investor confidence.

"There were investors who, after the early changes to support for solar farms, said they would not in the future touch UK low carbon projects that were supported by policy," said Sowden, predicting that the latest changes would again discourage investors.

Others predicted that the consultation could prompt some investors to ask whether similar unexpected changes could undermine the effectiveness of the soon-to-be-launched Renewable Heat Incentive scheme and the Energy Company Obligation element of the Green Deal.

Isra-Mart srl: Crown Estate downplays prospects for offshore wind Round 4

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The UK's emerging offshore wind industry has only just started work on ambitious plans to build more than 30GW of new capacity, and is not yet looking to invest in a fourth round of offshore wind farms.

That is the clear message from the Crown Estate, the body responsible for leasing the seabed to developers.

The Crown Estate has previously said that it could start leasing sites for so-called Round 4 offshore wind farms in the second half of this decade.

But speaking to BusinessGreen last week, Crown Estate offshore wind development manager Chris Lloyd downplayed the prospect of a new leasing round in the medium term.

"We're on Round 5 already," he quipped at first, before stressing that developers and the Crown Estate are not looking beyond the current Round 3 programme, which is not expected to be fully completed until 2025.

"We haven't even suggested there will be a Round 4. All we've said is that we will review the need for further development opportunity," he explained.

"At the moment there's nearly 50GW of development opportunity out there and there's a whole range of developers working incredibly hard developing that. Until we see signals from the market that there is a need for further opportunity, we're not going to make move in that direction."

The news may come as something of a disappointment to industry players, some of which have already called on the government to develop a plan for offshore wind farm development that stretches beyond 2020.

Trade body RenewableUK has already published analysis arguing that there is a an early need for Round 4 or Round 3.5 "to avoid a sharp drop in activity" during the second half of the decade.

The report proposed that applications for Round 4 should be open by 2018 to deliver a "healthy industry" scenario, or could even be launched as early as 2015 if the government wants to deliver a more ambitious rollout that would see the rapid deployment of offshore wind capacity and huge investment in the supply chain.

Similarly, Scottish Enterprise has said that a Round 4 will be required to maintain activity levels, particularly within the growing UK supply chain, once Round 3 projects start to get underway.

Isra-Mart srl: Kuwait sets ambitious 10 per cent renewables goal

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The oil rich Gulf region is not often regarded as a clean energy hub. But that has not stopped the Kuwaiti government setting the most ambitious renewable energy targets in the region – albeit in an attempt to boost fossil fuel exports.

Eyad Ali al-Falah, assistant undersecretary for technical services at the Ministry of Electricity and Water, yesterday told Bloomberg that the government is aiming to get 10 per cent of the country's electricity from renewable sources by 2020.

"Renewable energy is a new subject for Kuwait," he said, adding that the ministry will now gather information on solar intensity and wind speeds to help determine which renewable energy technologies will offer the best returns.

Al-Falah said there were already a number of projects in the pipeline to build up renewable energy capacity, including a study at the Kuwait Institute for Scientific Research to build 10MW wind turbines and a proposal for a 50MW solar PV plant.

The overarching aim of the new target is to allow renewables to supply domestic power, freeing up more oil for export.

The country's electricity demand is currently growing at eight per cent a year, raising concerns that it could soon outstrip supply. In the summer of 2010, 99 per cent of capacity was used up.

If the goal is achieved, Kuwait's proportion of renewables in its energy mix would exceed that of Abu Dhabi, which is aiming for seven per cent renewable power by 2020. Dubai is also developing an environmental plan focusing on improved demand-side-management of electricity and the development of better public transport infrastructure.

Isra-Mart srl: Feed-in tariff cuts threaten to 'kill interest in solar PV'

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Anticipated cuts to feed-in tariffs of around 50 per cent will "kill interest in solar PV", restricting the market to small numbers of installations by green households and businesses, according to a senior executive at the UK's largest solar company.

Speaking to BusinessGreen, Seb Berry, head of public affairs at Solarcentury, warned that if reports the government is planning to cut the level of feed-in tariff support for small-scale solar installations from 43p per kWh to around 20p per kWh prove accurate, the sector's recent growth will grind to a halt.

"This will kill interest in solar PV for social housing and free schemes," he said. "It reduces the rate of returns to under five per cent and no investor will go near that."

Berry admitted some projects would continue to go ahead, particularly from businesses keen to reduce their carbon emissions and enhance their green credentials, but he warned that the market would no longer be driven by investors.

Climate change minister Greg Barker today addressed a solar industry conference in Birmingham, insisting he was "personally committed" to driving the success of the solar industry, although he failed to provide further detail on the imminent cuts to the level of support.

However, he did maintain that the feed-in tariff scheme was "unsustainable" in its current form, given that the cost of solar panels has fallen 70 per cent over the past two years. He also called for the industry and government to work together to deliver effective reforms to the scheme.

But industry insiders expressed frustration at the government's apparent reluctance to engage with the solar sector, noting that after his speech Barker refused to take questions from the audience of industry executives and instead opted to host a press conference that was only open to journalists.

Howard Johns of the Solar Trade Association, which is today launching a new campaign called Cut Don't Kill urging the government not to impose deep cuts to incentives on the sector, said the industry was being sidelined by ministers and civil servants.

"[Climate change minister] Greg Barker has called for co-operation between industry and government, but we have been trying to do that and it is just not working," he said, adding that when 84 per cent of respondents to the government's most recent review of feed-in tariffs urged it not to impose deep cuts in the level of support available to solar farms they were ignored.

"We are having to deal with a constant rumour mill where numbers keep getting leaked to the press, but no one is speaking to the industry," he said. "We still don't know when the review will be released, whether it will be a fast-track review, what the cuts will be, or when they will be applied."

Berry argued that the sector was not being granted the same input to policy making as is typically offered to other energy industries. "It is unacceptable that an industry that now employs more people than the nuclear sector has to rely on nods and winks to newspapers to find out what is going on," he said.

Berry also revealed that ministers had failed to honour a pledge last year to set up a government-industry working group to discuss solar policy, and had not followed up on a commitment in the summer to appoint a secondee from the solar sector to work within DECC.

"We are probably the only energy industry that employs 25,000 people that does not have a single secondee within Whitehall," he said.

It has also emerged that the Treasury has rejected official calls for a meeting from the Parliamentary Renewable and Sustainable Energy Group, instructing the parliamentary group to instead meet with DECC ministers.

"If another industry of a similar size wanted that meeting, you would expect a Treasury minister to make time," he said.

Responding to questions from industry executives on Twitter this afternoon, Barker said he planned to host a round-table meeting with industry representatives next week at DECC.

Speaking to BusinessGreen, a spokesman for DECC rejected accusations that the solar industry was being sidelined. "The department has been talking to the industry throughout this process and will continue to do so, but there is a limit to what we can say ahead of the announcement [of changes to feed-in tariffs]," he said.

Isra-Mart srl: London's green economy could exceed £27bn by 2013

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London's growing green economy could be worth more than £27bn by April 2013, according to a major new report designed to help businesses step up investment in low carbon and environmental services.

The preliminary findings of the study, released yesterday by consultancy Innovas, reveal that the capital's low carbon and environmental goods and services firms have grown four per cent between 2009 and 2010 despite the economic downturn.

The report also concluded that the sector employs 160,000 people across 9,000 businesses, with key strengths in carbon finance, geothermal power, solar photovoltaics and waste management.

In addition, Innovas highlighted areas where London is underperforming, such as waste recovery and recycling, energy management and building technologies.

The study, which was commissioned by the Mayor's Office, is expected to inform planners, investors and London boroughs as they seek to support the development of the capital's green businesses.

The full report is expected to published in the coming weeks, and will identify clusters of enterprises working in the same supply chain in an attempt to encourage similar green businesses to co-locate.

Mayor Boris Johnson said he was encouraged by the figures, suggesting that they demonstrate the success of London's environmental policies, such as his RE:NEw insulation scheme.

"The capital is already established as a leader in low carbon finance, and it is encouraging to see our city gathering strength in other significant areas of the green economy, such as renewable energy and low carbon building technologies," he said.

However, the news emerged just a day after Johnson launched a campaign designed to tackle the low uptake of government-subsidised energy efficiency schemes.

Johnson warned this week that Londoners have missed out on £350m worth of energy efficiency measures owing to low adoption rates for the Carbon Emissions Reduction Target (CERT), Warm Front and Warm Homes Discount schemes.

London boroughs have the lowest UK home insulation rates under CERT, which places an obligation on energy companies to cut the amount of carbon emitted by households, primarily by offering free cavity wall and loft insulation.

Johnson said that retrofitting was "at the top of his to-do list", and urged households to take advantage of the offers.

However, Green Party Assembly member Darren Johnson accused the mayor of "hypocrisy", after he oversaw delays and budget cuts to London's own RE:NEW scheme.

The project has visited only 13,865 homes so far, and there is no confirmed funding available to reach the 95 per cent of homes estimated to require insulation.

"The mayor has dithered while more than a million people are shivering in their homes this winter," said Johnson.

"I'm amazed that he claims this is at the top of his to-do list. He lost his home insulation budget for future years to cuts, and he has failed to secure any changes to the national scheme that has left London short changed by £350m."

Isra-Mart srl: Carbon Trust urges businesses to turn down the heat as winter approaches

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Super-heated offices are costing UK firms millions of pounds in wasted energy, according to new guidelines from the Carbon Trust. The guidelines suggest turning down workplace heating by just one degree could save businesses and the public sector £35m a year.

The consultancy has launched two free guides addressing heating, ventilation and air conditioning and heating control systems, which it says could help businesses cut winter heating bills by up to 30 per cent.

According to the Carbon Trust, companies in the service sector spend three quarters of their energy bills on heating, while costs are rising as a result of climbing energy costs and a decades-long trend that has seen average indoor temperatures rise steadily.

However, the organisation maintains that relatively simple measures can deliver deep cuts in heating bills and significant carbon savings.

Most notably, it claims resetting timers and replacing outdated controls can cut annual heating costs by 15 per cent, while lowering heating levels by just one degree can similarly reduce fuel consumption by eight per cent.

"Many companies are in for an energy cost shock in the coming weeks as the temperature drops and heating bills rise," warned Richard Rugg, director of Carbon Trust Programmes. "[But you can] insulate yourself against rising costs by making sure your system is serviced and the controls are set correctly this autumn."

In addition to advising businesses to consider lowering heating levels, the two new guides also urge facilities managers to undertake regular servicing of heating equipment, train staff to ensure optimum temperatures are maintained, and remember to change heating controls when the clocks go back.

Isra-Mart srl: China to set regional energy caps

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China's efforts to curb its greenhouse gas emissions are poised to take another major step forward, according to reports from the state-backed Xinhua news agency detailing plans to set binding regional caps on energy consumption.

Quoting Jiang Bing, head of the planning department of the National Energy Administration, the news agency reported that the proposals for energy quotas would be released in the near future, although it added that the plans would need approval from China's State Council.

Jiang also signalled that the quotas would only apply to energy derived from fossil fuels with hydro, wind and solar power exempted from the caps.

The Chinese government has previously said it will impose a cap on energy consumption as part of its latest five-year plan, which has set a series of targets designed to enhance energy efficiency and cut the carbon intensity of the country's economy by 17 per cent by 2020. The plan is seen as essential to meeting China's stated goal of cutting its carbon intensity by between 40 per cent and 45 per cent by 2020.

The government has shown a willingness to impose relatively draconian legislation in order to ensure energy targets are met. In 2010, premier Wen Jiabao vowed to use an "iron hand" to ensure energy efficiency targets are met, overseeing a programme of forced closure for many of the country's most inefficient factories.

The proposed energy consumption quotas are the latest in a series of mooted green policy announcements from Beijing designed to curb emissions and accelerate investment in clean technologies.

In the last month alone reports have emerged detailing the government's plans to increase its renewable energy target for 2015, impose a major new resource tax on oil, gas, coal and scarce raw materials, and tighten air pollution standards.

Isra-Mart srl: Scotland promises funding to charge up public sector electric car adoption

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The Scottish government has unveiled a £4.2m tranche of funding to encourage public bodies to replace conventionally powered cars with low carbon vehicles.

The new funding builds on around £4.3m made available last year, which resulted in 145 low carbon vehicles being purchased by public sector bodies and the installation of a further 74 electric vehicle charging points.

"This extra funding will allow local authorities and their community planning partners to bridge the gap between the cost of petrol or diesel powered vehicles and their electric powered equivalents, and help drive down air-polluting emissions," said Alex Neil, cabinet secretary for infrastructure and capital investment, in a statement.

"This exciting scheme has the potential to directly support innovative Scottish companies at the forefront of electric vehicle and battery production, and the expansion of these kinds of businesses will help support and create jobs, in turn supporting sustainable economic growth."

The announcement comes just days after new figures showed that the adoption of electric vehicles across the UK remains lower than anticipated. Just 786 cars have taken advantage of the government's plug-in car grant, despite the incentive scheme having budget to support 8,600 cars.

However, industry experts are convinced that demand will pick up next year when a wave of new plug-in hybrid cars becomes available, and corporate and public sector customers are expected to play a major role in driving adoption.

Isra-Mart srl: EU crackdown on oil firms will not extend to overseas operations

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European plans to crack down on oil companies, with orders to improve safety to prevent a spill like that in the Gulf of Mexico last year, will be unveiled on Thursday.

The European commission has stopped short of extending the tougher new rules to the overseas operations of EU-based companies, after pressure from oil companies and the UK government.

The measures, from the European Union's energy commissioner, Guenther Oettinger, will force companies drilling in EU waters to release details of their safety procedures, place new liabilities on them in the event of an accident, and require them to prove they have the money to clean up any spills that do occur.

"Oil companies have to be fully liable," Oettinger told the Guardian. "We want to make sure that the highest standards are put in place."

At least 486 UK installations will be covered by the new rules, more than in all of the other member states combined.

The rules apply to all drilling sites within 200 miles of the coast, the first time EU regulations on oil drilling have been extended so far. Previously they were limited to 12 miles.

They would cover the boundary with international waters where the legal standing of wells is unclear, and mean virtually all offshore oil drilling operations within the EU will be covered.

Oil drillers will have to use a higher standard of equipment, and will have to prove they can pay for any damage they cause, either through an obligation to buy sufficient insurance or by paying into a fund - it will be left to member states to decide which one. Companies will also have to submit to independent third party auditing.

However, the commission will not force European companies to adhere to the same standards in their overseas operations, a step some activists had called for in order to improve the sometimes woeful safety record of European oil companies in developing countries.

For instance, this year the Guardian uncovered in Nigeria evidence of oil leaks for which Shell was partly liable, amounting to a greater volume of spillage than in the Gulf accident. If the EU had extended its rules as urged, Shell would be forced to reveal details of its practices and prove it was using the same stringent safety controls it uses in the North Sea.

Oettinger said such a sweeping change was outside the scope of the current directive, and extension would be hard to formulate in legal terms as it would involve complex areas of international law. But he vowed to put pressure on companies to pursue "best practice" and to co-operate with other countries to achieve this, particularly around the Mediterranean. If European companies did not voluntarily extend their EU safety practices to other areas, he indicated, this issue could be looked at again.

The EU will stay out of rows over where drilling should be allowed to take place. At present, several companies are seeking to explore areas near the Shetland Islands and in Greenland where their wells would be in far deeper water than normal, and potentially in environmentally sensitive areas.

Activists oppose these operations, warning of the dangers of leaks occurring where they are difficult to reach, and where they could damage pristine habitats. Greenpeace has mounted several protests against Cairn Energy this year in an attempt to stop its operations in Arctic waters.

The new energy directive may face a difficult ride through the rest of the legislative process, as the UK government is known to be wary of some of the plans. If it is accepted, it could be in force by the end of next year.

The Department of Energy and Climate Change said: "Today the UK has a robust, proven national regime with decades of experience in regulating the offshore industry. The lessons of Piper Alpha led to a dramatic improvement in the regulatory system in the UK and more generally in Europe.

"We know that the commission is considering proposals which might result in a greater regulatory burden on the UK industry. We will continue to work with the commission towards a pragmatic approach which does not reduce the standards of the very robust regulatory system which we already have here."

The proposed new rules were a direct response to the explosion last spring at BP's Deepwater Horizon drilling rig in the Gulf of Mexico, which killed 11 people and caused the biggest offshore oil spill in US history, wreaking devastation over a wide area.

Isra-Mart srl: UK onshore wind farm consent rates crash to all-time low

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Onshore wind farm developers have been urged to deepen their engagement with local communities after a new report revealed that planning approval rates for new wind farms have sunk to an all-time low of just 42 per cent.

The latest State of the Industry report (PDF) from trade association RenewableUK shows that approval rates for new onshore wind farms in the UK fell by 11 per cent to 42 per cent in 2010/11.

Meanwhile, the average amount of time projects wait for planning approval increased from 24 to 33 months.

In England alone, approval rates fell from 33 per cent last year to what RenewableUK regards as a "critically low" level of 26 per cent in 2010/11.

The figures sparked fresh fears of a gap in the UK's renewable energy project pipeline over the next few years, despite the fact that last year saw an increase in the number of new wind farms coming online.

The report confirms that 44 projects totalling 985MW of capacity went operational across the UK last year, an improvement of almost 20 per cent on 2009/10.

Gordon Edge, director of policy at RenewableUK, told reporters at the organisation's annual conference in Manchester today that some developers are not maximising their chances of gaining planning approval by failing adequately to engage with local communities, and in some cases failing to ensure that projects are economically viable before applying for consent.

He added that other common barriers to gaining planning consent include radar objections from aviation authorities, concerns over transportation of equipment to the site, and failure to ensure timely grid connections for new wind farms.

Edge urged developers to increase efforts to "proactively engage" with local communities, to ensure that objections put forward by opposition groups are minimised and receive an adequate response.

"I'm hoping that we've had enough wake up calls in the industry that our members will really be taking seriously issues they have to deal with on the ground," he said.

"I've always thought the localism agenda could be very dangerous [for wind farm developers] but is also a really good opportunity for us to raise our game and win the arguments.

Isra-Mart srl: Renewables industry urged to step up battle against sceptics

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Green campaigner Tony Juniper has urged renewables firms to reposition themselves as part of an economically booming, as well as low carbon, industry in an attempt to fight back against a rising tide of criticism from right wing media and politicians.

Speaking at RenewableUK's annual conference in Manchester yesterday, the former Friends of the Earth director warned that the industry can no longer rely on touting the environmental benefits of green energy, and must broaden its appeal by promoting the ability to create jobs and drive investment.

Speaking just a week after being appointed advisory board chairman of RenewableUK's new grassroots campaign, Action for Renewables, Juniper told delegates that it is no longer enough for renewables to "be right".

Instead, he called on the industry to develop a "new narrative" that more effectively counters recent criticism of the sector, such as erroneous media claims that renewable energy subsidies are the primary driver of recent increases in energy bills.

Specifically, he warned against a growing tide of anti-green sentiment from politicians such as Chancellor George Osborne and Communities Secretary Eric Pickles.

"On the policy level, a new wave of 1980s-style rhetoric on austerity is wrongly condemning renewables and environmental measures as too expensive in the current economic climate," he said.

"In the media, a misleading narrative about the effectiveness and efficiency of renewables has been allowed to take root. At the local level, opposition groups are fed by misinformation and scaremongering about renewable energy developments."

The Action for Renewables campaign is backed by 12 renewable energy companies and includes representatives from Greenpeace and the TUC, as well as conservationist Bill Oddie and journalist Polly Toynbee.

Juniper maintained that the campaign has no plans to enter tit-for-tat rows with those critical of renewable energy, but would rather aim to "rise above" the debate by engaging with communities more effectively and putting forward verifiable facts on renewable energy.

He added that the campaign is specifically designed to give a voice to the so-called "silent majority" of people who support renewable energy but do not actively campaign for it.

RenewableUK has long maintained that a minority of opposition groups are allowed to have a disproportionally loud voice in the debate surrounding green energy, despite polls showing that a clear majority of people are in favour of new wind farms and other forms of renewable energy.

Further details of the Action for Renewables strategy will be set out after the board holds its first meeting in December.

Isra-Mart srl:House Bill Makes It Illegal for US Airlines to Comply With EU Emissions Laws

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The House passed legislation last night that makes it illegal for US airlines to participate in the European Union's cap-and-trade program, which goes into effect for the airline industry on January 1, 2012.

The House passed the "European Union Emissions Trading Scheme Prohibition Act of 2011."

Under the program, airlines that land or take off at Europe's airports will pay penalties if they produce emissions beyond their allotted limit. Those that reduce emissions below the cap can sell permits to more polluting companies. Proceeds are distributed to member states, which use the revenues to address climate change.

The cap-and-trade program, which has been operating for six years, covers many industries. The airline industry is the latest to be included - the largest industry after power plants - and is expected to raise ticket prices by $11-57 round-trip, depending on how far they exceed pollution limits.

The fee is about the same amount US airlines currently charge to carry luggage that exceed weight limits.

US airlines want to be exempt from the rules, and the Obama Administration has negotiated on their behalf, saying it should only apply to European airlines. The EU says it will go forward with its plan to include all airlines, however. The industry is one of the fastest-growing sources of greenhouse gases - having doubled emissions over the past 20 years. Chinese airlines have also expressed opposition.

As of January 1, the airline industry - under the EU program - will have an upper limit of 213 million metric tons of carbon; it drops to 208.5 million tons in 2013.

"‘We are confident the U.S. will respect European law, as E.U. always respects U.S. law," says EU Commissioner Connie Hedegaard.

"The legislation tells US companies to break another country's law. Could you imagine the outrage if another country told its companies to break a US law when they operate here?" says Jake Schmidt, international climate policy director at the Natural Resources Defense Council (NRDC).

US airlines filed a lawsuit in the European Court of Justice to win exemption from the requirement, arguing their emissions between the US and Europe are released into international airspace.

In a preliminary judgment, the court ruled this month against the carriers, noting that cities and countries around the world impose a variety of landing fees, and airlines that want to land at their airports have to pay them.

"The E.U. program will provide an incentive for airlines to find the best way to reduce their fuel use and encourage them to purchase the most efficient aircraft that are already rolling off the production line," says Schmidt. "These are investments that will spur savings to American consumers as U.S.-based carriers improve the efficiency of their aged fleet."

US airlines have been preparing to comply with the EU system, calculating flight emissions to establish a baseline, for example. They've been buying more efficient planes and testing biofuels. In August, President Obama announced a $510 million public-private partnership to produce advanced drop-in aviation and marine biofuels.

The bill is the latest in over 160 votes taken by the Republican dominated House (over one vote each day) to eliminate environmental regulations.

Democrats were against the bill, and no companion bill has been introduced in the Senate.

Isra-Mart srl: Cutting Business Carbon Emissions Can Be Easily Managed

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At a recent party conference, the UK chancellor highlighted the need to continue to reduce business carbon emissions, but at a sustainable rate which allows business to continue to grow. The UK has the world's toughest targets for cutting the carbon emissions that create global warming, but how do businesses begin the process of managing their carbon impact?

Businesses around the world are increasingly looking for ways to be greener and to reduce their carbon footprint, but achieving meaningful carbon reduction often seems like a mammoth task for lots of companies.

Mark Chadwick is the CEO of Carbon Clear, a UK based company that specialises in helping clients manage their carbon impact, and he explained why it’s such a challenge for so many businesses:

“It’s fantastic that so many companies want to make the commitment to carbon reduction. The issue is that for busy managers reducing their carbon footprint is just one thing on a list of thousands they have to do. To bring down a firm’s carbon footprint requires a time investment in research, strategy formulation and implementation that many leaders in organisations may struggle to find the time for.”

For this reason, many organisations opt to invest in Carbon Credits and Carbon Offsetting as a way to achieve carbon reductions while they implement internal measures. Carbon Credits and Carbon Offsetting schemes allow companies to invest in carbon reduction projects around the world that both reduce global carbon emissions at the same time as providing other environmental and social co-benefits.

For example a company might offset their carbon emissions by purchasing credits for a renewable energy project such as a wind farm or solar energy facility in a developing country, or it could be invested into reforestation project.

“These schemes really do benefit the environment because they work on the basis that for every tonne of carbon dioxide created, a tonne will be removed elsewhere. Using these schemes is a great way for businesses to show commitment to their environmental and Corporate Social Responsibility programmes” added Mark Chadwick.

Recent research by Carbon Clear shows that of the 20 companies in the FTSE 100 choose to purchase carbon offset credits, 85% also show internal carbon reductions. Carbon Clear’s Managing Director Jamal Gore explained why this is often the case: “Most firms do not see Carbon Credits as simply a stop gap to ensure they are offsetting their emissions whilst they implement a full carbon strategy. Given that no company is going to be able to reduce their carbon footprint to zero given the available energy mix, purchasing carbon credits is an important and valid part of any comprehensive carbon reduction strategy. It is a key way to demonstrate their long-term commitment to environmental well-being.”

Unfortunately for business leaders, all carbon offsetting schemes were not created equal. Mr Chadwick and Mr Gore explained that key criteria need to be considered for Carbon Credit purchasing.

Mr Chadwick: “The key to a successful carbon offsetting programme is credibility. Firms need to make sure that any credits they do purchase are of the highest quality and have been independently verified, for example by the Verified Carbon Standard or the Gold Standard. If businesses purchase these credits directly from a broker or trading platform then they must register the credits and later retire the credits appropriately. If a company decides to use and external consultancy to do this then they should always ensure that those consultants have a strong track record in this area as this can be a complex process to navigate."

Isra-Mart srl: NYMEX-Natural gas ends up 1.5 pct, forecasts turn colder

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U.S. natural gas futures ended higher on Tuesday, backed by colder extended weather forecasts for the Northeast and Midwest that should stir more heating
demand despite concerns about an oversupplied market.
NYMEX front-month gas NGc1, which expires on Thursday, climbed 5.4 cents, or 1.5 percent, to settle at $3.658 per million British thermal units after trading between $3.581 and $3.70.
The November-January spread widened slightly, with the premium for January at 31.9 cents, up from Monday's six-week low of 31.6 cents. That spread is down 38 percent since peaking 2-1/2 weeks ago at an 11-month high of 51.9 cents, "The market's been hammered, but we're coming into winter, so there's support here. No one wants to bet short heading into the heating season, but if the cold doesn't happen next month, prices could be in trouble," a Massachusetts trader said.
He noted front-month prices have been moving up since hitting an 11-1/2-month low of $3.446 two weeks ago.
Traders have mostly shrugged off Rina, which strengthened into a Category Two hurricane on Tuesday and was located in the western Caribbean. Most computer models show the system steering northeast, towards southern Florida.
The U.S. National Hurricane Center gave another system,located in the eastern Caribbean, a 20 percent chance of becoming a tropical cyclone in the next 48 hours.
Despite the colder late-week outlook which could prop up prices, traders said recent big inventory builds and record high domestic gas production were likely to limit any price gains in the near term.
WEATHER, OTHER FUNDAMENTALS
Most traders expect any upside in prices to be difficult to sustain until more persistent cold forces homeowners and businesses to crank up their burners.
After a mild start to the week, AccuWeather.com expects temperatures in the Northeast and Midwest, key gas-consuming regions, to cool to below normal late this week and next week.
Heating demand in both regions should pick up later in the week as overnight lows, at times, dip into the 30s and low-40s degrees Fahrenheit area.
Most traders expect another above-average inventory build when the U.S. Energy Information Administration releases its next weekly storage report on Thursday.
Injection estimates range from 62 billion to 93 billion cubic feet, with most near 80 bcf. Stocks rose an adjusted 74 bcf during the same week last year, while the five-year average increase for that week is 47 bcf.
EIA data last week showed that gas in storage climbed to 3.624 trillion cubic feet last week, 46 bcf, or 1.3 percent, below the same year-ago week but 113 bcf, or 3.2 percent, above the five-year average.
Several triple-digit inventory builds over the last month have forced analysts to raise estimates of where inventories will peak this year. Most now expect storage to climb to near 3.8 tcf, or just shy of last year's record high of 3.84 tcf,
before winter withdrawals begin.
Record high gas production, primarily from shale, has dampened price expectations this year despite strong weather demand during a cold winter and a very hot summer.
The EIA expects marketed gas output this year to climb by more than 4 bcf per day to a record high 65.99 bcf daily, eclipsing the previous high of 62.05 bcf from 1973.
Drilling data on Friday from Baker Hughes offered little hope that production would slow down any time soon, with the rig count at 927 still well above 800, a level some analysts say is needed to cut output and tighten supplies.

While gas burns during winter on average run about 50 percent, or 30 bcf per day, higher than summer and could help tighten an oversupplied market, many traders question whether even a cold winter would be enough to soak up excess supply.
Storage will begin the heating season just below record highs. With production running 3 bcf per day or more above last year, that could mean an additional 450 bcf of winter supply.
Traders note that most forecasters expect winter to be colder than normal but not as cold as last winter when about 2.26 tcf of gas was pulled from inventory.
Some say stocks could end the heating season at a record high near 1.9 tcf and keep prices on the defensive next year.

Isra-Mart srl: Natural Gas Technical Analysis for the Week of October 24, 2011

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Natural gas markets fell again the previous week as the bear market shows no real signs of slowing down. The supply is simply too much for any conceivable demand, and the rallies have only been chances to sell. The market has been acerbating over the last couple of months to the downside, and there is no real reason to think that will change. However, the Friday close showed a possible bounce coming in the form of a hammer, but at this point in time – we see this as a chance to sell it after a day or two long bounce.

Isra-Mart srl: Natural Gas Futures Advance on Forecasts for Colder Weather

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Natural gas futures rose for the first time in three days in New York on forecasts of colder- than-normal weather that may increase demand for the heating fuel as winter approaches.

Gas futures advanced 1.5 percent after Commodity Weather Group LLC said in its seasonal forecast yesterday that the coming U.S. winter may be the coldest in more than 10 years. Temperatures may be below-normal along the Eastern Seaboard from Oct. 30 through Nov. 3, the company said.

“We have some forecasts of early cold,” said Ed Kennedy, a trader at INTL Hencorp Futures LC in Miami. “It looks like we might have quite a severe winter, especially in the heartland of the country.”

Natural gas for November delivery gained 5.4 cents to settle at $3.658 per million British thermal units on the New York Mercantile Exchange. The futures have risen 10 percent from a year ago.

November $3.50 puts, bets that prices will fall, were the most active options in electronic trading. The puts were down 0.8 cent to 0.3 cents per million Btu on volume of 490 lots.

The price difference, or spread, between November- and December-delivery futures widened 0.4 cent to 19.4 cents.

November is expected to be 9.3 percent colder than last year, with December forecast to be 0.6 percent cooler, said Matt Rogers, CWG’s president, in his seasonal outlook.

Light Snow

Light snow may fall across northern New England and upstate New York by the end of this week, according to the National Weather Service.

The low temperature in Concord, New Hampshire, on Nov. 3 may be 26 degrees Fahrenheit (minus 3 Celsius), 5 below normal, according to AccuWeather Inc. in State College, Pennsylvania.

Heating demand in the U.S. Northeast may be 6 percent above normal from Oct. 31 through Nov. 4, data from Weather Derivatives in Belton, Missouri, show.

About 51 percent of U.S. households use natural gas for heating, Energy Department data show.

“The 6-10 day forecast includes a solid cold region spanning from the mid-Atlantic down through Florida and is incrementally bullish for demand compared with previous forecasts,” Michael Zenker, an analyst at Barclays Capital Inc. in San Francisco, said in a note to clients dated yesterday.

The number of rigs drilling for natural gas in the U.S. declined last week, according to data from Baker Hughes Inc. The gas rig count fell by nine to 927, 3.9 percent below the level from a year earlier.

Lower 48

Gas production from the lower 48 states rose 0.1 percent in July to a record 69.48 billion cubic feet as output from shale formations in Louisiana and the Northeast rose, according to department data going back to 2005.

Production climbed from a revised 69.38 billion cubic feet a day in June, the department’s Energy Information Administration said in a monthly report known as EIA-914, released Sept. 29.

Natural gas futures volume in electronic trading on the Nymex was 242,011 as of 2:39 p.m., compared with the three-month average of 310,000. Volume was 213,789 yesterday. Open interest was 989,099 contracts, compared with the three-month average of 971,000. The exchange has a one-business-day delay in reporting open interest and full volume data.

Isra-Mart srl: Thompson Creek Metals Makes a Move: Down 3.1%

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Down 3.1% to $6.88, Thompson Creek Metals (NYSE:TC), is one of today's notable movers. The S&P is currently trading 0.8% lower to 1,244 and the Dow Jones Industrial Average is trading 0.6% lower to 11,845.

There is potential upside of 67.0% for shares of Thompson Creek Metals based on a current price of $6.88 and an average consensus analyst price target of $11.49. The stock should find initial resistance at its 50-day moving average (MA) of $7.28 and further resistance at its 200-day MA of $10.51.

In the past 52 weeks, shares of Thompson Creek Metals have traded between a low of $5.44 and a high of $16.06 and are now at $6.88, which is 26% above that low price. Over the last five market days, the 200-day moving average (MA) has gone down 1.1% while the 50-day MA has declined 0.7%.

Thompson Creek Metals Company, Inc. mines and processes molybdenum. The Company operates mines, mills, and metallurgical roasting facilities in Canada and the United States.

Isra-Mart srl: China calls for trading in renminbi

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One of China's most senior bankers has called on Commonwealth countries to adopt the renminbi as the preferred currency of trade when dealing with the Middle Kingdom in order to simplify transactions and reduce foreign exchange and hedging costs.

Industrial and Commercial Bank of China executive vice-president Lili Wang, regarded as one of the most powerful women bankers in the world, told the Commonwealth Business Forum in Perth yesterday that 12 per cent of China's cross-border trade, worth 1.3 trillion renminbi ($191.3 billion) of transactions, was being settled in the Asian country's currency.

The figure was up from just 9 per cent at June 30 and rising fast, as evidenced by the fact that the level of renminbi-denominated foreign trade was more than 13 times higher than this time last year.

In July, Fortescue Metals Group, which sells most of its Pilbara iron ore to China and also buys much of its equipment from the country, announced a maiden transaction in the renminbi, just weeks after Rio Tinto floated the idea of settling iron ore prices, traditionally denominated in US dollars, in the first Chinese currency.

China's Government is relaxing rules governing the international use of its currency, and already analysts have forecast that the renminbi could become the world's third most-important currency, behind the US dollar and the euro.

In her address to the Commonwealth Business Forum yesterday, Madame Wang also called on member nations to help "break down barriers of trade protectionism".

It was a sentiment later echoed by her countryman, China Council for the Promotion of International Trade vice chairman Wang Jinzhen.

"China has continuously improved its business environment by revising, abolishing working out laws, rules and regulations including ones on the patents, trademarks and copyright," Mr Wang said.

"Also, China has lowered its average tariff rate from 16.3 per cent to down to 9.8 per cent, which is a bit higher than the world average of 6.8 per cent but much lower than most of the countries, including some developed countries, in the world."

Madame Wang and Mr Wang were part of a discussion, also featuring Fortescue's billionaire chairman Andrew Forest and Federal Trade Minister Craig Emerson, about China and the Commonwealth: Forging New Partnerships.
China's rampant economic growth, which has sparked the Australian resources boom, has also had a far-reaching impact in Africa. However, a delegate from Nigeria questioned the change in Chinese attitude towards Africa, describing a historic policy of funding everything from roads and airports to school desks to the "new profit-driven China".

Isra-Mart srl: COMEX gold trades higher as equities weaken

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Comex Gold has hit its highest level in a little more than a week as some safe-haven demand returns and the market maintains technical strength, says Dave Meger, director of metals trading with Vision Financial Markets.

For some time now, gold has tended to move with risk assets such as stocks and other commodities. But that is not the case at the moment. As of 11:02 a.m. EDT, Comex December gold was $36.40 higher to $1,688.70 an ounce with the Dow industrials lower by triple digits.

U.S. consumer confidence was weaker than forecast. Also, a meeting of European finance ministers to discuss debt issues Wednesday was canceled, although European leaders still will have a summit.

“We have not seen the safe-demand element in Gold and it seemed to be trading more correlated with equities (recently). But today, we are seeing more of that safe-haven demand element come back,” Meger says.

“But I think it’s more.” He also cited an improved technical picture and the second wave of a strong seasonal pattern. “We’re certainly seeing adequate demand on dips,” Meger says. December gold peaked at $1,689.80, its strongest level since Oct. 17.

Isra-Mart srl: BASE AND PRECIOUS METALS - European Opening View - Metals recover, precious metals break higher

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The strong rebound in the base metals that started on Friday and accelerated on Monday, peaked in Asian trading yesterday. At the day’s high yesterday prices were up an average of 1.7 percent, they ended the day down an average of 1.5 percent. The market became increasingly nervous ahead of the EU summit and especially when it learnt that the EU finance ministers’ summit was cancelled leaving just the EU leaders’ Summit. Quite how to interpret this remains to be seen, but generally base metals and equities did not like the development, while Gold climbed from lows at around $1,643 to over $1,700, with silver moving above $33.

Despite a lot of uncertainty going into today’s EU summit, the base and precious metals are upbeat – the latter is not surprising, but we are somewhat surprised by the 1.7 percent average gain in the base metals this morning.

Copper leads the advance with a 2.8 percent gain to $7,750, while aluminium is up 1.5 percent at $2,245 and zinc is up 1.9 percent at $1,888. Volumes are strong at 10,111 lots, of which 6,079 lots are copper.

Gold and silver are strong they are up 1.1 percent and 1.4 percent to $1,715.90 and $33.44, respectively, while platinum is at $1,567 and palladium is at $651.

In Shanghai the January contracts are mixed – copper is up 2 percent at Rmb 57,500, lead is down 0.6 percent at Rmb 15,180, aluminium is down 0.4 percent at Rmb 16,410 and zinc is down 0.1 percent at Rmb 15,130. Gold is up 3.7 percent at Rmb 354.93.

Spot copper in Changjiang has bucked the trend – it is down 0.9 percent at Rmb 57,000-57,600 which puts prices either side of the futures and suggests the higher prices of late have attracted destocking. The LME/Shanghai arb has reopened with imported copper at a small discount of $20/tonne to Shanghai futures price.

Equities – the Dow closed down 1.75 percent yesterday and this morning Asia is more upbeat, with the Nikkei up 0.3 percent, the Hang Seng is up 0.4 percent, China’s CSI 300 is up 1.4 percent, although the MSCI Asia Apex is down 0.4 percent. More dovish comments from China’s Premier Wen Jiabao gave the market some hope that some parts of its monetary policy may be eased. This seems to have off set some of the concerns over the EU – at least in the short term.

The dollar is in limbo with the dollar index at 76.17, while the euro remains remarkably strong at 1.3915, cable is at 1.6015, the aussie is at 1.0370, the yen is extremely strong at 75.95 and the yuan is firmer too at 6.3570.

Although the EU summit will no doubt be the dominating factor today, there is also some important data out including US durable goods orders, new home sales and crude oil inventories, see table on right for more details.

Today was set to be an all important decision day on EU debt, but we are now less sure that EU policy markers are ready to lay out a comprehensive plan, so the market may have to wait a while longer. Overall, we remain medium term bearish as the size of the debt issues are unlikely to go away regardless of what policy makers decide. If they manage to contain the situation that will be a result, but if they are to come up with a plan to get to the root of the problem then that is likely to mean further economic hardship.

Overall we would be braced for both a relief rally and disappointment and have contingency plans for each outcome. Given this uncertainty we are not at all surprised gold is attracting fresh safe-haven buying.

Isra-Mart srl:Rising Mineral Prices and Global Demand Boost the Mining, Oil and Gas Machinery Industry

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After a volatile period between 2006 and 2011, firms in the Mining, Oil and Gas Machinery Manufacturing industry are projected to enjoy smoother conditions between 2012 and 2016, with rising commodity prices underpinning stronger demand for new equipment, according to IBISWorld, the nation’s largest publisher of industry research. Throughout the five years to 2016, commodities growth and heightened global efforts to discover new oil and gas reserves will stimulate sales of industry products. Also, the relatively weak dollar will underpin robust growth in exports. As a result, IBISWorld forecasts industry revenue will increase at an average annual rate of 4.9% to $24.9 billion in the five years to 2016, including 3.0% growth in 2012 alone.

According to IBISWorld analyst, Josh McBee, during the five years to 2011, the Mining, Oil and Gas Machinery Manufacturing industry has undergone a period of growth underpinned by booming global demand for mineral and energy commodities. “Rising resource prices have led the mining and oil industries to expand existing production and increase exploration, resulting in strong demand for machinery and equipment,” says McBee. “Following the financial crisis of late 2008, however, the faltering global economy, credit crisis and weaker commodity prices resulted in a sharp downturn in energy and mineral exploration and production. As a result, decreased demand for industry products caused revenue to fall 20.0% to total $19.3 billion in 2009.”

Steady growth from 2006 to 2008 offset more recent declines. IBISWorld estimates revenue in the Mining, Oil and Gas Machinery Manufacturing industry will increase at an average annual rate of 5.7% during the five years to 2011. Conditions are improving in 2011 due in part to the resilient Chinese economy, which is stimulating global mining activity. As a result, revenue is expected to increase 8.2% and total $19.6 billion in 2011 as global demand picks up. Lingering economic uncertainty and weak global drilling activity will continue to present issues, though, negatively impacting capital expenditure plans in oil and gas exploration and development.

After a relatively strong year in 2011, industry firms are expected to continue steady growth in 2012, with rising commodity prices encouraging customers in the mining, oil and gas sectors to resume spending on machinery and equipment. This trend is anticipated to continue through 2016 as a prolonged commodities bull market and heightened global efforts to discover new oil and gas reserves stimulate further sales of industry products. In addition, shale gas, which is a type of natural gas produced from sedimentary rock, will play a key role in the growth of the domestic energy industry as concerns about global warming escalate. Meanwhile, the relatively weak dollar will underpin robust growth in exports over the next five years. As a result of these factors, IBISWorld projects industry revenue will increase at an average annual rate of 4.9% to $24.9 billion through 2016.

Isra-Mart srl: Oil Advances a Fourth Day as China Considers Economic Stimulus

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Oil rose for a fourth day in New York on speculation China’s government will boost the economy of the world’s second-biggest crude consumer, while European leaders prepared a plan to tackle the region’s debt crisis.

Prices gained as much as 0.5 percent after settling yesterday at the highest in almost three months. Chinese Premier Wen Jiabao said economic policy will be fine-tuned as needed and the industry ministry said it is studying “stimulative policies” for smaller companies. European government heads will hold a summit today to agree on a plan to rein in a sovereign- debt crisis that threatens to curb economic growth and slow demand for commodities.

“The market has been re-pricing a view that we might be looking at a low-growth environment, rather than a recessionary environment,” said Ric Spooner, a chief market analyst at CMC Markets in Sydney. “The market has run up quite a lot in advance” of the European summit, he said.

Crude oil for December delivery was at $93.32 a barrel, up 15 cents, in electronic trading on the New York Mercantile Exchange at 5:41 p.m. Sydney time. The contract yesterday increased 2.1 percent to $93.17, the highest settlement since Aug. 2. Prices are up 2.1 percent this year.

December futures were at a 23-cent premium to January, compared with 24 cents at yesterday’s close. The front-month contract on Oct. 24 settled higher than the next month for the first time since Nov. 20, 2008. The so-called backwardation typically signals an increase in demand or decline in supply in the near term.

China, Europe

Brent oil for December settlement gained 41 cents, or 0.4 percent, to $111.33 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $18.01 to New York crude, compared with a record settlement of $27.88 on Oct. 14.

Chinese officials will make policy adjustments at a “suitable time and by an appropriate degree,” Wen said in a statement published late yesterday. The Ministry of Industry and Information Technology and other government agencies will work to help small businesses facing difficulties, it said separately in a statement today.

European leaders are in Brussels today for their 14th crisis summit in 21 months. A meeting of finance ministers scheduled to precede it was canceled, with officials now set to gather at an as-yet undetermined time to complete the rescue plan’s main elements.

U.S. Stockpiles

U.S. crude supplies in Cushing, Oklahoma, fell on Oct. 21 to the lowest level in a year, according to measurement of tanks using satellite photographs. Total U.S. inventories dropped to the lowest level in 20 months in the week ended Oct. 14, the Energy Department said. The country is the world’s biggest crude-consuming nation.

Oil in New York earlier declined as much as 0.9 percent after the American Petroleum Institute reported that inventories rebounded 2.71 million barrels last week. An Energy Department report today may show supplies increased 1.48 million barrels.

The industry-funded API collects stockpile information on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the Energy Department for its weekly survey.

Hurricane Rina may become a major storm “at any time” on a track toward Mexico’s Yucatan Peninsula resorts and away from the major oil regions of the Gulf of Mexico, the U.S. National Hurricane Center said in an advisory at 11 p.m. New York time. Mexican crude output may be curbed by the storm.

Petroleos Mexicanos, Latin America’s largest oil producer, said port and offshore operations are normal, according to an e- mail sent to Bloomberg News. Kinetic Analysis Corp., which assesses the potential impact of hazards, estimated the storm may shut in 6.51 million barrels a day of oil produced by Pemex.

Isra-Mart srl: Forex Technical Analysis Overview: October 26th

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Tonight, Chancellor Merkel will address the German lower house before a vote on the increase of Germany’s contribution to the European rescue fund. The vote will pass as Merkel’s coalition have persuaded the opposition parties to support the proposal by promising to pass a motion that will cap the German guarantees. However, intense discussions are still taking place in Brussels over the mechanisms surrounding the operation of the EFSF, the quantum of forgiveness in relation to Greek debt and the plan to recapitalize banks. The markets now enter a period of significant event risk with investor expectations for a workable European rescue package so high that a disappointing summit result could precipitate a catastrophic sell off in the markets.

Closer to home, inflation in Australia slowed to its lowest levels in 14 years and prompting traders to increase their bets that the Reserve Bank will re-duce rates next week. The Australian dollar fell from as high as 1.0439 to as low as 1.0354 as a combination of the inflation data and jitters over Europe hit the currency. The numbers indicate that the Australian economy may be softer than many had expected and will continue to weigh on the AUD. In other currencies, the EUR is closing the Asian session at 1.3915 while the GBP consolidated above 1.6020.

Equity markets reversed earlier losses, prompted by European fears, when Chinese Premier Wen Jiabao made comments which suggested that the nation may ease monetary policy. His comments that China will make adjustments at a “suitable time and by an appropriate degree” and is studying “stimulative policies” saw markets stabilize. The ASX 200 was supported by the inflation data which pointed to an imminent reduction in rates by the RBA. The index gained 0.35% to 4,242 with gold and copper related stocks rising as commodity prices surged overnight. The Hang Seng is down 0.11% to 18,947.80 while the Nikkei is flat at 8.766.78.

Commodities continue to perform well despite the jitters surrounding the European summit and the promised announcement of a rescue plan. WTI continues to gain, rising to as high as $93.65 today. Precious metals continued to gain on safe haven buying on the eve of the European summit. Gold is higher by more than 0.8% to $1,717 while silver is 1% higher to $33.40. Soft commodities were mostly higher while copper surged more than 2.4%. Overnight, we have the release of US New Homes Sales and Durable Goods orders and the Bank of Canada Monetary Policy Report.

GOLD:

GOLD continued to post fresh monthly gains in Asian trade today as investors pile back into precious metals in the lead up to the EU Summit meetings. As crude prices remain well bid so do Gold prices and copper is helping t support commodities across the board. We see the move higher as safety flows and USD weakness related flows for now. Gold traded in a $1,694-$1,718 range and finished the session stronger by 0.90% at $1,715. Another solid performance for Gold today in Asia and we expect the run to continue as investors look for places to park their cash as uncertainty remains in global markets, and in particular, Europe. Some may expect a pullback from here but we may not get it as investors may start to jump over one another to get long again as their money sits on the sidelines and needs to provide returns which Gold may well do. WE remain firmly bullish but do not count out a pullback towards $1,677 but this should limit declines. We remain long at $1,635 and now trailstops higher to $1,670 for now. Solid offers should start to slow gains towards $1,725/35 and a breach would be very bullish and could see a quick move targeting $1,800/20. Buying dips remains the strategy in this market.
Compass Direction: Short-Term: BULLISH ; Medium-Term: BULLISH

AUD/USD:

AUD/USD opened the local session at 1.0420 with the focus firmly on the CPI q/q release at 11.30am local time after Deputy Gov. Battellino signalled the RBA would be watching it closely for the possibility of a cut in interest rates as early as next Tuesday. The result coming in as expected at 0.6% gave the markets fuel for fire that the RBA will cut next week and the pair fell sharply lower to meet our pivotal support line at 1.0355. The level has held during the afternoon and with the majors finding late Asia buying and AUD having nothing to do with it, it is looking likely for a fall during the European morning especially if there is any sign of the Euro weakness seen yesterday. On the charts the 1.0355 support remains the key for the next two sessions or until the EU summit results are announced. We are looking for the release to disappointthe high expectations of the markets with the risk currencies falling sharply but until then we shouldn’t see any great moves. Solid selling at 1.0440 should be able to handle rallies for now.

Isra-Mart srl: US House votes to ban airline compliance with EU law

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U.S. passenger and cargo airlines would be shielded from a European law making carriers worldwide pay for carbon emissions under legislation approved by the House of Representatives on Monday.

Lawmakers sent a strong message to the European Union on its unilateral action, which is fiercely opposed by carriers, travel groups, labour and a number of countries, including China.

"We made it clear that the United States would pursue the matter," House Transportation Committee Chairman John Mica told reporters. "They were not very happy campers."

Mica discussed the matter with EU officials last week in Montreal, and called the initiative "a taxing scheme" and a violation of international law and trade treaties.

European officials had no comment on developments in Congress.

There was bipartisan support for action in the Republican-led House, which swiftly approved the measure with little debate.

But key Democrats on environmental issues praised Europe's effort to "take climate change seriously" and urged the bill's defeat.

"If we expect European companies to comply with U.S. law then we have to respect their laws," said Representative Henry Waxman of California, the top Democrat on the House Energy and Commerce Committee.

There is no companion legislation in the Senate although House passage was likely to lead to a proposal. It was unclear, however, if the Democratic-led chamber would support the House action.

Combined with Obama administration opposition, House approval alone sends an important message to Europe about sentiment in Washington.

The Obama administration has strong objections to inclusion of non-EU carriers in the plan, and does not see the current legal process in Europe addressing the matter satisfactorily, the State Department said in a statement.

Under the plan challenged in court but still due to take effect in January, airlines will have to buy permits under the EU's emissions trading scheme to help offset greenhouse gas pollution from commercial jetliners operating in or to and from Europe.

Under the law due to take effect January 1, pending the outcome of legal wrangling, airlines will have to buy permits under the EU's emissions trading scheme to help offset greenhouse gas pollution from jets operating to and from Europe.

The change would impact the largest U.S. passenger and cargo carriers, which estimated on Monday the regulation would cost them more than $3 billion through 2020. These include United Airlines (UAL.N), Delta Air Lines (DAL.N), American Airlines (AMR.N), and US Airways (LCC.N), and worldwide cargo haulers FedEx Corp (FDX.N) and UPS (UPS.N).

Airlines would face stiff fines for noncompliance and said the economic hit would cost jobs in a tough economy, a factor motivating the congressional response.

Big U.S. airlines have been slower than carriers elsewhere to upgrade their fleets with technology offering greater fuel efficiency and lower emissions output. Boeing's (BA.N) 787, billed as the most environmentally friendly big jet, is due to make its maiden commercial flight this week for Japan's All Nippon Airways ANA.L.

American, which has a large presence at London's Heathrow airport, has spearheaded the legal challenge of the new rule now before the European Court of Justice.

But airlines ultimately expect the matter will rest with aviation officials at the United Nations, an option the administration and supporters of the House measure advocated.

Others have raised objections, including India, China and countries in Latin America, Asia, the Middle East and Africa.

Isra-Mart srl: California's cap-and-trade program gets green light

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California's Air Resources Board has formally adopted the state's greenhouse cap-and-trade program today, following a lawsuit that delayed compliance with the controversial scheme by a year.

The program, which will begin in mid-2012 with auctions of the emissions allowances, will be the nation's most stringent cap-and-trade mandate but not the first. It follows in the footsteps of the Regional Greenhouse Gas Initiative, a program that covers utilities in Northeastern and mid-Atlantic states.

"When fully implemented, it will cover 85 per cent of the state's greenhouse gas pollution, making this the first-ever economy-wide market for greenhouse gas reductions in North America," Tim O'Connor, the director of the Environmental Defense Fund's California Climate and Energy Initiative, said earlier this week during a conference call with reporters.

The cap-and-trade program is one of more than 70 measures being carried out under the Global Warming Solutions Act of 2006, also known as AB 32. As O'Connor indicated, the program will cover 85 per cent of the economy, namely the utility, natural gas, industrial and transportation fuel sectors, including power plants, cement factories and refineries. AB 32 calls for California, the nation's most populous state and world's eighth largest economy, to reduce global warming pollution to 1990 levels by 2020. The cap-and-trade program will deliver 20 per cent of the emissions reductions needed to meet this goal.

Under the program, polluters must obtain and surrender an allowance for each ton of emissions they produce, O'Connor explained. Polluters can satisfy their obligations by making onsite emissions reductions, purchasing the emissions allowances and buying verified carbon offsets.

"The ability of polluters to make onsite reductions or purchase verified pollution reduction credits from others creates a market for emissions reductions," O'Connor said. "This market establishes a statewide incentive for regulated business, clean tech innovators, and third-party emissions reduction project providers to find ways to cut climate pollution as fast and as cheap as possible."

Thomson Reuters forecasts the price of each ton of CO2e to be about $36 on average from 2013 through 2020. The average price may drop to the $30 range if the ARB allows additional carbon offsets into the program.

The ARB will withhold 10 per cent of allowances from auctions, forcing covered businesses to buy 10 per cent of the permits they need, rather than receiving all or more for free. This has led some, including the AB 32 Implementation Group, to call it a "10 Per cent Haircut" or tax.

The program was threatened by a lawsuit from environmental justice groups that argued the cap-and-trade would disproportionately impact poor communities. A California Supreme Court judge ruled last month that the ARB could continue work on the program while the lawsuit is still pending. Before that, opponents tried to derail the whole AB 32 law last year through a defeated ballot measure that would have suspended it until the unemployement rate fell significantly.

Isra-Mart srl: Scotland follows Westminster with proposed changes to renewables subsidies

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The Scottish government has today launched its own consultation on proposed changes to the Renewables Obligation scheme, which would largely bring subsidies for projects north of the border into line with the level of support proposed yesterday for the rest of UK by Westminster.

Most notably, the Scottish government is proposing that the level of support for marine energy project mirrors the rest of the UK.

Previously, Scotland has attempted to attract marine energy projects by offering higher subsidies, with wave energy projects qualifying for five Renewable Obligation Certificates (ROCs) per MWh and tidal stream projects eligible for three ROCs/MWh.

However, the Department of Energy and Climate Change (DECC) yesterday proposed raising the level of support for both wave and tidal stream projects in the rest of the UK, from two ROCs/MWh to five ROCs/MWh.

Now Edinburgh is preparing to match the new support levels, raising the number of ROCs available to tidal stream projects to five ROCs/MWh.

Energy minister Fergus Ewing said the changes should help cement Scotland's position as one of the world's leading marine energy markets.

"We have a quarter of Europe's tidal stream, and the increase in support for this technology will encourage energy firms to capitalise on the enormous potential this presents," he said in a statement.

The rest of the proposed changes largely follow those put forward by Westminster, curbing support levels for a number of renewable energy technologies such as onshore wind and anaerobic digestion, and setting out clear rates of degression through to 2017.

However, the Scottish government is considering a break with the rest of the UK in one crucial area, with ministers proposing a consultation on whether to remove all subsidies for large biomass power plants.

The consultation document puts forward plans for a cap on the size of biomass plants that will qualify for ROCs that would allow smaller community scale plants to proceed, but would effectively curb investment in large-scale plants that only generate electricity.

Ewing said the proposal was designed to ensure valuable timber resources are used to generate both heat and electricity in the most efficient possible manner

"While the Scottish government supports the deployment of woody biomass in heat-only or combined heat and power plants, UK ambitions for large-scale, electricity-only woody biomass plants are an inefficient use of a finite resource," he said.

"We have serious concerns around the sustainability of supply. If proposed levels of imports are not matched with forecast demand or become more difficult to access, there is the danger that energy generators will find it easier to access their feedstocks from domestic wood-processing industries' well-established wood supply chains."

There are also minor differences between Edinburgh and Westminster on the level of support proposed for dedicated biomass power plants with combined heat and power (CHP), and dedicated energy crops with CHP.

The Scottish proposals would set out a degression curve for both technologies that would see support levels gradually cut from two ROCs/MWh currently to 1.8 ROCs/MWh by 2017, while the DECC is proposing that support levels remain at two ROCs/MWh through to 2015.

In related news, the Scottish government also announced today that it will up funding for the country's boiler scrappage scheme by £1.5m, in a move designed to help a further 3,600 households upgrade to more efficient domestic boilers.

"The boiler scrappage scheme has been a resounding success with over 6,000 households benefiting this year to date," said Alex Neil, cabinet secretary for infrastructure and capital investment.

"Around a further 2,400 private homes will benefit from this cash injection, together with around an additional 1,200 households via private landlords."

Isra-Mart srl: EU moves to tackle carbon market fraud

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The regulation of European spot carbon permits will be brought into line with other financial instruments as the EU looks to enhance oversight of the carbon market.

Proposals published yesterday by the commission would reclassify spot carbon permits as financial instruments, bringing them under the same MiFID directive as futures, forwards and options.

Climate commissioner Connie Hedegaard said in a statement that the move would provide the "robust level of oversight" the rapidly growing carbon market requires.

"It will provide further certainty for carbon market participants as the market grows and matures," she said. "This way, the carbon market will better play its full role to mobilise the substantial investments needed for the transition to a low-carbon economy."

The commission said it not only wanted to improve transparency, but also minimise the risk of insider dealing and manipulation of the carbon market, whose security problems were starkly exposed when Europe's registries were the subject of a series of frauds and suspected cyber-attacks earlier this year.

The EU beefed up security in response to the scandal, but has now moved to tighten the regulations governing the market further.

The proposals have been criticised by the International Emissions Trading Association (IETA), which claims that the new rules could prove unnecessarily onerous.

"The approach taken... is not industry's preferred choice for extending oversight to the spot carbon market because it automatically triggers burdensome requirements that are not relevant to the risks in this market," said Henry Derwent, president and chief executive of the IETA.

"Further work will be required to ensure that the treatment of emission allowances within MiFID does not undermine the functioning of this market and is effective in preventing abuse."

The new rules must be approved by the European Parliament and Council of Ministers before they come into force.

Isra-Mart srl: China hits back at US solar complaint

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The Chinese government has today given short shrift to proposals from a group of US solar firms for new import duties on low-cost Chinese solar panels, which they allege have benefited from "illegal" subsidies.

In a widely expected move, the Chinese government issued a statement on the website of the country's Commerce Ministry, criticising the complaint and warning the US not to introduce new duties.

"If the US government files a case, adopts duties and sends an inappropriate protectionist signal, it would cast a shadow over world economic recovery," the statement read.

"The Chinese government hopes the US will scrupulously abide by its promise to oppose trade protectionism, avoid adopting protectionist measures on Chinese solar cell products, jointly protect a free, open and fair international trade environment, and adopt a more rational means of handling trade frictions."

In an indication that any attempt by the US to block imports of Chinese solar panels could spark a trade war, the statement also noted the US has put in place its own subsidies and support mechanisms to accelerate the development of its domestic solar industry.

Launching their official complaint earlier this week, the coalition of seven US solar firms acknowledged that support mechanisms were in place in the US, but argued they were in line with the World Trade Organisation.

In contrast, they allege the scale and scope of Chinese subsidies constitutes a breach of international competition rules.

The group claimed imports of heavily subsidised Chinese solar panels has driven down the cost of the technology, forcing the closure of seven US solar factories in the past 18 months.

The US government will have to decide whether to pursue the complaint and impose import duties of more than 100 per cent on Chinese imports.

The spat is the latest in a series of trade clashes between the US and China, several of which have centred on clean technologies.

Last year, the US successfully pursued a case against Chinese subsidies for wind turbine manufacturers, while clean-tech firms in both the US and EU have long-complained that Chinese firms are benefiting from generous levels of government support.