Isramart : Green Economic world

Isra-Mart srl: Senate bill would shield US airlines from EU law

2011-12-09T01:52:00.001-08:00

www.isramart.com
Isra-Mart news:
A Republican senator introduced legislation on Wednesday to shield U.S. airlines from a law set to take effect in Europe that would charge carriers globally for aircraft emissions.

The bill was proposed by John Thune, but lacks a Democratic co-sponsor that airlines were hoping would give the proposal more weight in the Democrat-controlled Senate.

A similar bill was approved by the House of Representatives in October with bi-partisan support.

The Obama administration opposes the European law, due to take effect in January.

The law would require airlines to join the European Union's Emissions Trading Scheme and buy permits to offset greenhouse emissions from jetliners operating in, or to, and from, Europe.

Airlines globally say compliance would hurt them financially. The change is estimated to cost U.S. airlines $3.1 billion between 2012 and year-end 2020, an industry trade group said.

China, India and two dozen other nations also object and a United Nations' body that oversees civil aviation is accelerating its efforts to try to craft a compromise.

Isra-Mart srl: Negotiators Discuss Taxing Ships to Pay for Climate Change

2011-12-09T01:51:00.001-08:00

www.isramart.com
Isra-Mart news:
One of the big issues under discussion at the climate talks here in Durban is how to pay for the programs that reduce greenhouse gas emissions and help people adapt to climate change. There's been a lot of work already done on setting up a multi-billion dollar Green Climate Fund, but it's still not clear where all that cash would come from.

One option on the table—and a pretty good one—is a tax on global shipping. This is generally called a "bunker" tax, referring to the place where fuel is stored on a ship. The idea is to put a fee on emissions that stem from shipping stuff all over world on cargo boats, which would have the impact of both pushing the industry to reduce its emissions, and creating a source of revenue that can be put into the Green Climate Fund.

Emissions from maritime shipping account for about 3 percent of greenhouse gases currently, but are on the rise. A levy on those emissions could generate quite a bit of money. Oxfam estimates that a fee of $25 per ton of carbon would generate $10 billion per year. Meanwhile, it would only raise the price of shipping by an estimated 0.2 percent. Part of the revenues would likely be rebated to poorer countries to make sure the tax doesn't put new burdens on their domestic industries, but the fee has still made some developing countries nervous.

It's also supported by some industry players, including the International Chamber of Shipping, which represents 80 percent of the industry. NGOs like it too. "Raising money for climate action from the shipping industry is just good policy," said Steve Herz, senior attorney with the Sierra Club's International Climate Program. "It will help reduce a large and growing source of carbon pollution, will impose little if any costs on consumers, and can be designed to protect the poor from any adverse impact."

Some developed countries (read: the United States) have been resistant to having any formal directive within the conference on where the money for the Green Climate Fund should come from; that, they argue, should be up to each of the donor countries to decide.

Another option that has been discussed is a fee on aviation. The bloc of least-developed countries has proposed a levy on all international flights, paid for by the ticket-buyer. Their argument, of course, is that if you can afford an expensive international trip, you can afford a few extra dollars to pay for your emissions. But when the European Union recently put a tax on all flights through EU countries, members of Congress freaked out; the House actually passed a bill that would forbid US airlines from paying the fee. A number of other countries were also displeased with the EU's plan. But it can be hard to get developed countries to commit to public funding for climate, and the specific amounts are offered at the discretion of political leaders or bodies. A funding stream like a bunker or aviation tax is more reliable, and it's outside the control of a particular country, which makes it an appealing option for many negotiators.

Isra-Mart srl: Germany To Distribute CO2 Vouchers Worth EUR3B To Airlines 2012-202

2011-12-09T01:39:00.000-08:00

www.isramart.com
Isra-Mart news:
A German environment authority said Thursday it has begun notifying airlines around the world about how many carbon dioxide emission certificates they will receive for free each year, preparing the carriers for the inclusion of the aviation industry in the European Union's cap and trade CO2 scheme from 2012.

In a written statement, the Federal Environment Authority--known as Umweltbundesamt--said that it will hand out some 42.8 million CO2 certificates for the year 2012, the first year that airlines are included in the EU's CO2 emissions trading scheme.

In the 2013 to 2020 period the airlines will receive 40.5 million CO2 allowances per year, said the authority.

"These [CO2 emission rights] have a value of around EUR3 billion according to present market prices," the Umweltbundesamt said.

A spokeswoman for the environment authority said that the notifications have been sent to some 130 airlines around the world. In total, Germany is responsible for overseeing the CO2 trading scheme for a total of 409 airlines, she added.

The number of notifications sent to airlines for now remains relatively low, as some have requested or have been granted exemption from the CO2 trade, the spokeswoman said. Others haven't yet provided information necessary to determine how many CO2 rights they would receive free of charge.

The Umweltbundesamt Thursday declined to detail the allocation of CO2 allowances to individual airlines, but added that it plans to publish a list with this information on Dec. 23.

Isra-Mart srl: EU carbon allowance allocation to airlines proceeds despite protest

2011-12-09T01:38:00.000-08:00

www.isramart.com
Isra-Mart news:
As international opposition to the inclusion of aviation in the EU's carbon emission trading system (ETS) continues to grow, member states have begun informing airlines of their exact free allocation.

Germany is the latest country to do so, saying on Thursday that it expects to allocate 42.8m free EU allowances (EUAs) to airlines at the start of 2012, which is the first year that the aviation sector will be included within the ETS.

German carbon registry DEHSt said it will inform individual airlines about the number of certificates they will receive until 2020.

The UK and Ireland have already published this information (see EDCM 3 October 2011 and 28 Ocotber 2011).

However, DEHSt said it will publish only a detailed list of relevant airlines and their respective EUA allocations on 23 December.

Pushed for details of the German system, a registry spokeswoman said: "All I can say is that we are going to allocate in total 42.8m EUAs in 2012 and 40.5m EUAs annually from 2013-2020 to around 130 airlines that have applied for the allocation of free allowances in Germany."

The allowances will be handed out to airlines by 28 February.

In early 2013, the airlines will have to report their emissions for the year 2012 and hand in the relevant number of allowances to registries.

The EU set the emission benchmarks, on which the exact allocation is based, in September ( see EDCM 26 September 2011).

US opposition grows

Meanwhile, after the European Court of Justice (ECJ) said it will rule on 21 December whether the EU's inclusion of airlines in the ETS is legal (see EDCM 7 December 2011) - which is expected to give the move a green legal light - US Senator John Thune introduced a bill to block the inclusion of US airlines in the trading system.

"The idea that the European Union has the right to tax American air passengers and carriers flies in the face of our country's sovereignty," Thune said in a statement on his website on Wednesday.

"I reject this proposed European tax and will work with my colleagues in Congress and countless concerned stakeholders to block this tax."

The bill introduced by Thune is similar to one brought by John Mica to the House of Representatives that was passed on 24 October (see EDCM 25 October 2011).

European estimates

In 2012, airlines will receive 0.6797 free aviation emissions allowances for every 1,000 tonne-kilometre reported for 2010.

A tonne-kilometre is a measure of the distance travelled and the total weight of load and passengers of flight.

According to calculations by consulting firm Altimedes, British Airways will receive the most 2012 allowances, collecting around 4.82% of total free credits, amounting to 10.35m EUAs.

It will be followed by Ryanair (5.6m EUAs), Iberia (4.6m), Emirates (4.3m) and Easy Jet (3.7m) as the top five recipients of free allowances in 2012.

In 2013-2020, the allocation will fall to 0.64219 free aviation allowances per 1,000 tonne-kilometre reported for 2010.

From 30 April 2013, flights landing or departing from airports within the territories of the EU states, as well as Norway, Liechtenstein and Iceland, will have to surrender EUAs matching their emissions in the previous year.

Each year, airlines will receive some free EUAs and will have to buy any extras they need on the carbon market.

Isra-Mart srl: Tourism bosses’ long-hop tax fears

2011-12-09T01:37:00.000-08:00

www.isramart.com

Isra-Mart news:
A Queenstown tourism chief fears a green tax hike on long haul flights from the UK could set a harmful precedent.

The British Government has announced its Air Passenger Duty (APD) will increase next April.

The levy – which goes up from £85 to £92 ($170-$184) for flights to New Zealand – is banded on distance travelled.

Destination Queenstown boss Tony Everitt says: “It sets a precedent for other countries around the world.
“That’s the thing that needs to be watched out for.

“I wouldn’t expect this single action to have an immediate significant impact on Queenstown.

“Obviously it is not desirable. It is great the Minister [John Key] is on the case because the UK is an important market for Queenstown, in the top five.”

Prime Minister John Key, also Tourism Minister, is lobbying the British Government on what he regards as an unjustified tax.

Key says environmental concerns have already been addressed through the European Union’s extension of the Emissions Trading Scheme to aviation emissions.

Key says: “That puts a levy on airlines – meaning there is no justification for an additional duty on air passengers which discriminates on the basis of distance.

“The APD places a significant burden on New Zealand businesses, on families who travel, and on our tourism industry,” Mr Key says.

Last month, Key told Mountain Scene he was concerned about what he viewed as inappropriate taxes getting a hold in the UK and extending to other places.

The Tourism Industry Association, New Zealand, is lobbying on the charge, which for the first time will also cover business jets.

Everitt says: “It is something that needs to be addressed on a national and international level.

“We support the Minister and Association’s efforts to get some relief on this.

“The UK market is a tough one for us and other destinations at the moment due to the economic situation there. We do want to see that turn around.”

The APD will be set at £13 for short-haul flights, £65 for mid-distance and £81 for between 6400km and 9600km.

Isra-Mart srl: IATA warns EU ETS could trigger trade war

2011-12-09T01:36:00.000-08:00

www.isramart.com
Isra-Mart news:
Opposition from governments against the inclusion of aviation next year in the European Union’s Emissions Trading Scheme (EU ETS) is growing and could result in a trade war, IATA warned.

IATA still is pushing for a global solution within ICAO through negotiations (ATW Daily News, Dec. 1), but the “level of opposition is mounting. More than 20 states have indicated their dissatisfaction with Europe’s unilateral action. The danger of a trade war is still possible with Russia, China and India … while a bill is making its way through Congress to prevent US carriers from taking part,” IATA director-aviation environment Paul Steele told reporters in Geneva via satellite from the Climate Change Conference in Durban, South Africa.

Steele also said the option of filing a complaint under Article 84 of the Chicago Convention is being increasingly discussed. Article 84 allows ICAO members to file a complaint against other members for violating “the cardinal principle of state sovereignty” outlined in the Convention on International Civil Aviation (the Chicago Convention).

Last week, several airlines confirmed to ATW that using Article 84 to stop the EU ETS was raised at the ICAO council last month. Also, Assn. of European Airlines (AEA) secretary general Ulrich Schulte-Strathaus conceded to ATW that the risk of retaliation against EU carriers and an action through Article 84 were becoming a real concern.

According to sources, India is seriously considering using Article 84 against the EU and its 27 member states. There have been similar complaints in the past but all of them have been settled out of court. If no settlement is reached, the case will end up in the International Court of Justice, the principal judicial organ of the United Nations, in The Hague.

Steele said the EU was in a difficult position. “There is demand from governments worldwide to change the EU ETS but it is not easy to change an existing regulation and all change options— intra-EU scheme, departing flights only, delay of the introduction—are problematic,” he said, adding that the only “real way to solve this is for all governments to get back around the table at ICAO.”

EU climate action commissioner Connie Hedegaard reiterated the EU was steadfast in its decision to include aviation in its ETS from next month. “There is no way the EU will change legislation,” she said in Durban. She also criticized the US House of Representatives for passing a bill prohibiting its airlines from participating in the ETS aviation scheme, calling the move “arrogant and ignorant.”

The House bill is merely symbolic at this stage, with action needed in the US Senate to move the issue forward. To that end, US Senator John Thune (R-S.D.) this week proposed similar legislation that he said would "enable the US Dept. of Transportation to take necessary action to ensure America's aviation operators are not penalized by any tax unilaterally imposed by the EU."

Isra-Mart srl: California's low carbon vehicles plan moves up a gear

2011-12-09T01:33:00.001-08:00

www.isramart.com
Isra-Mart news:
California has unveiled proposals to slash transport emissions and put 1.4 million electric, plug-in hybrid and hydrogen-powered cars on its roads by 2025.

The Advanced Clean Car package of regulations put forward by the state's Air Resources Board (ARP) should result in a 75 per cent reduction in smog-forming emissions by 2025 and cut greenhouse gas emissions by 52 million tonnes, the equivalent of taking 10 million cars off the streets.

The proposed rules are in line with California's ambition to reduce its emissions 80 per cent by the middle of the century and come soon after US President Barack Obama published early plans to double car fuel efficiency to 54.5 miles per gallon by 2025.

As well as improving the efficiency of petrol and diesel cars, the regulations would aim to ensure low-carbon vehicles make up one in seven new cars sold in California in 2025 and should also supply the infrastructure to support them.

While the ARB noted implementing the technologies needed to achieve the new smog and greenhouse gas standards would increase a new vehicle's price in 2025 by about $1,900, it said this would be more than offset by $6,000 in fuel cost savings over the life of the car.

It expects the monthly cost of running a new car to fall by $12, even when considering the higher cost of the loan or lease, and predicts overall operating cost savings will reach $5bn in 2025, rising to $10bn in 2030 when more advanced cars are on the road.

Together, the entire package should result in a cumulative reduction of more than 870 million metric tonnes of greenhouse gases through to 2050, as well as creating an additional 21,000 jobs in 2025, rising to 37,000 in 2030.

"These rules will make California the advanced car capital of the world, driving the innovation, patents and technology that will generate thousands of jobs here, and set the stage for us to compete in the global clean car marketplace," said ARB executive officer James Goldstene.

However, the measures were criticised by the Union of Concerned Scientists (UCS), which argued that the goals for zero-emissions vehicles should be stronger.

"California needs to ensure we get on the right trajectory to meet the state's public health and climate goals by mid-century," said Don Anair, senior engineer with the UCS Clean Vehicles programme.

"With more than 30 models of electric cars expected from automakers in the next few years, California should feel confident enough to eliminate special credits that could undermine the proposal and set a 30 per cent more aggressive sales target."

Isra-Mart srl: UK could face legal action from EU over solar subsidy fiasco

2011-12-09T01:32:00.000-08:00

www.isramart.com
Isra-Mart news:
The UK government could face legal action from Brussels over plans to slash feed-in tariffs for solar installations and introduce energy efficiency requirements on buildings seeking the incentives, the European Commission has revealed.

Energy commissioner Günther Oettinger yesterday confirmed legal proceedings would be launched if changes to the feed-in tariff scheme threatened progress towards the UK's binding EU target to supply 15 per cent of its energy from renewable sources.

Responding to a question from Green MEP for London Jean Lambert, Oettinger said legal action would be taken against any member state which weakened its policies in such a way that they threatened progress towards their green energy targets.

He also confirmed that the EU had already been in contact with the government over the consultation.

"Whenever Member States revise their support for support schemes for renewable energy, they need to do so in a manner which does not destabilise the renewable energy industry or risk undermining their own plans to achieve their 2020 targets," he said.

"Should the UK or any Member State weaken policies in such a way that it would threaten progress towards their targets, the Commission would take action, launching legal proceedings if necessary."

The government has consistently maintained the changes to the incentives are necessary to stop the feed-in tariff scheme exceeding its budget, and that the cuts will not threaten the UK's renewable energy or emission reduction targets.

But in a statement Lambert argued the UK's current plans, which will more than halve feed-in tariffs and place a requirement on buildings to meet energy efficiency standards before receiving feed-in tariffs, will put thousands of jobs at risk in the solar industry and cause bankruptcies.

"Under the Commission's ruling, the UK is prevented from making amendments to support schemes which could jeopardise the renewables industry, yet sudden, drastic cuts to the tariff will strip away investor confidence, reduce the market for solar companies across the country, and threaten jobs," she said.

"In the current climate, with unemployment reaching record levels, we can ill afford further job losses which could potentially reach into the thousands. This would seem to be a risky move: "destabilising" the industry by anyone's definition."

She urged the UK government to prove its plans to slash the subsidy will not stop the UK from delivering 15 per cent of its energy from renewable sources by 2020 as required under the EU directive.

Earlier this week it emerged the High Court has refused to proceed with legal action by Friends of the Earth and two solar power firms seeking to block the deep cuts to feed-in tariffs.

However, the court will next week hear an appeal against the decision.

In related news, the Solar Trade Association is seeking signatories for a letter that will urge the Prime Minister and Deputy Prime Minister to intervene to block the controversial cuts to the incentives.

The letter will be delivered on 13 December, one day after the proposed cut off for solar installations to receive the current rate of incentives.

"Letter to PM & DPM on Solar #FIT Review... To sign it, email jbeard@r-e-a.net with your name, position and company!," Howard Johns, chairman of the STA, wrote on Twitter.

The letter warns that energy ministers have signed off proposals which could see the sector reduced to a tenth of its current size, at the cost of tens of thousands of jobs.

"Failure to secure a sensible solution to the unfolding crisis in the solar power industry makes no sense for tax-payers, consumers or voters." it says.

David Cameron side-stepped a call to halt the plans at Prime Minister's Question Time last month.

Isra-Mart srl: Environment Agency taskforce orders businesses to bin waste crime

2011-12-09T01:31:00.002-08:00

www.isramart.com
Isra-Mart news:
The Environment Agency has ploughed £5m into a new taskforce as it looks to crackdown on illegal waste sites in England and Wales, warning businesses to be on the lookout for offenders.

Around 600 illegal waste sites are thought to be in operation in the UK, potentially contaminating land and rivers with oil and toxic chemicals.

The agency closed or brought into regulation 1,195 illegal waste sites, undertook 400 waste-related prosecutions during 2010/11, and has recouped almost £1m from offenders through court orders in the last six months.

However, the problem has not been eradicated and the task force, which will include former police detectives, will be charged with gathering intelligence and acting quickly to close the remaining sites.

The agency also warned businesses to be wary of anyone offering cheap waste disposal services and urged companies to check if waste management firms have a valid licence.

It added that businesses must complete waste transfer notes - and keep them for two years - and use the NetRegs Waste Directory to find licensed recycling and waste disposal sites.

"Waste crime is a serious offence that poses a risk to human health and can damage the environment," said Dr Paul Leinster, chief executive of the Environment Agency. "If you're involved in illegal waste activities, you should be looking over your shoulder and expecting a visit from our enforcement officers.

"We'll press for the strongest possible penalties - including prison - for those convicted of these crimes against communities."

Isra-Mart srl: Durban close to breakthrough climate deal

2011-12-09T01:31:00.001-08:00

www.isramart.com
Isra-Mart news:
Rumours are circulating at the UN's climate summit in Durban that a major deal could be reached in the next 24 hours, paving the way for a global emissions reduction treaty to be agreed by 2015.

Unconfirmed reports suggest high level ministerial negotiations could be closing in on a breakthrough, with observers speculating that the EU and the China and G77 group of developing economies are close to a deal that could see the Kyoto Protocol extended and a roadmap agreed towards a parallel legally binding treaty.

A series of press conferences were cancelled this afternoon as closed door negotiations overran, prompting a flurry of excitement in the conference hall.

The WWF's Samantha Smith told the RTCC website that China was "putting more detail on the table" outlining its conditions for an agreement.

"They put their initial proposal on the table in a meeting with NGOs on Sunday, it was rather detailed then," she said. "But when they were in the informals and in press conferences they were not giving a detailed proposal. My impression is that other countries have now come back to them with different offers and that is moving the process along, that is why everyone is running around."

She added that a number of other countries, including Brazil, were also putting forward new texts, several of which have been well received and have fuelled hopes an agreement can be reached tomorrow.

In addition, RTCC said there were unconfirmed reports that a deal on the structure for the proposed $100bn Green Fund had been "signed off", while separately observers writing on the social media site Twitter suggested agreements were close to being finalised on reforms to the REDD forest protection scheme and the CDM offsetting scheme.

Earlier in the day, hopes that an agreement could be reached on the EU's proposed roadmap were fuelled by comments from US climate envoy Todd Stern in which he said the US supported the idea of a new roadmap and wanted to see an ambitious international deal reached by 2020.

Silvia Merega, chief negotiator for the G77 group, similarly told news agencies that the negotiations on the proposed roadmap were progressing well. "We have no problem dealing with what will be the next steps after Durban," he said. "We have to have some kind of rules. I don't know at this point if these rules would establish what the outcome of the negotiation would be."

Meanwhile, the Guardian reported that the African Group of Nations has also signalled its support for the EU plan, despite remaining frustrated at the stance of the US and those countries that have ruled out signing up to a second Kyoto commitment period.

However, while the group of least developed countries has supported the EU's plans for a new roadmap any agreement is likely to be met with a mixed response from green groups and development charities.

Critics have already warned that delaying a treaty until 2020 risks missing the opportunity to avoid temperature increases of over two degrees and could result in temperature increases of over four degrees unless extremely steep emission reductions are delivered post 2020.

Moreover, there remain no guarantees that a deal will be finalised with the EU remaining insistent that it will only sign up to a second Kyoto commitment period if other large emitters make detailed commitments to agree a new binding treaty by 2015.

A number of countries, including India and the US, have been reluctant to make such a commitment, while it also remains unclear how Japan, Russia and Canada, which have each signalled they will not extend the Kyoto Protocol, will fit into any new deal.

Negotiations are now expected to extend late into the evening ahead of the official final day of the summit tomorrow.

Ministers moved this evening to counsel against undue optimism. British Energy and Climate Change Secretary Chris Huhne led the way, telling the Press Association that while good progress was being made the mooted deal could still "go pear-shaped".

However, reports continued to circulate that the US, Canada, and Brazil had all agreed to support the EU's roadmap, leaving China and India under growing pressure to sign on to the plan.

Isra-Mart srl: US insists it supports EU calls for climate treaty roadmap

2011-12-09T01:30:00.001-08:00

www.isramart.com
Isra-Mart news:
The US has rejected accusations that it is blocking plans to deliver a global climate change treaty, insisting it supports EU proposals for a new roadmap that could see an international treaty to curb emissions agreed by 2015.

The US and India have been widely blamed for blocking the EU plan, which would see the bloc sign up to an extension of the Kyoto Protocol if other major economies commit to agreeing a binding climate deal by 2015 that would then come into force by 2020 at the latest.

However, speaking earlier today US climate envoy Todd Stern told reporters the US did support the EU plan.

"It is completely off base to suggest the US is proposing it will delay action to 2020," he said. "The EU has called for a roadmap. We support that."

He said the US is fully engaged with the negotiations and remains committed to delivering a binding international treaty that imposes obligations on all countries. "The kind of roadmap that countries have called for, that the EU has called for, that the US supports," he said, although he failed to provide further details on whether the US would sign up to a formal roadmap agreement.

Stern also further fuelled hopes an agreement could be reached on the shape of the proposed $100bn a year Green Fund, confirming he remains optimistic a deal can be finalised.

Stern's comments came ahead of British energy and climate change secretary Chris Huhne's address to the conference, during which he reiterated the EU would only extend the Kyoto Protocol if other nations agree to ambitious emissions-reduction targets.

"Together with the EU, we have clearly stated we are willing to move to a second Kyoto commitment period, maintaining ambition and environmental integrity," he said.

"But to do that in isolation makes no sense... That would not provide the certainty investors need; it would not close the emissions gap; it would not meet the hopes of Cancun; it would not help the poor and the vulnerable.

"We need a clear roadmap to a wider agreement. If that roadmap cannot be agreed here in Durban, we will not agree a second commitment period of Kyoto."

The US intervention suggests such a roadmap could yet be agreed, but with less than two days to go to the official close of the summit a large number of issues remain unresolved.

Most notably, the US, China and India appear unlikely to sign up to the new roadmap without further details on what an eventual treaty would look like when it is finalised in 2015.

Moreover, all the key players remain hugely divided on the crucial subject of how emissions reductions should be shared, with emerging economies continuing to argue that industrialised nations must shoulder more of the costs.

Isra-Mart srl: Water efficiency technologies to be included in Green Deal

2011-12-09T01:29:00.000-08:00

www.isramart.com

Isra-Mart news:
Businesses keen to invest in more energy efficient water systems look set to receive a boost, after the environment secretary today confirmed a range of hot water technologies could be included in the government's flagship energy efficiency Green Deal scheme.

Caroline Spelman said hot water efficiency measures, such as new efficient boilers, might be included in the Green Deal financing scheme which is due to launch next autumn.

The comments came as Spelman launched the government's delayed white paper setting out how it intends to improve water management across the UK.

"Making sure we've got enough water for everyone is going to be one of the major challenges this country will have to deal with in the years ahead," she said. "We can already see the problems we may face with part of Britain still in drought even though we're in December."

The White Paper outlines how the government plans to drive investment in new water infrastructure and encourage water efficiency among homes and businesses through new incentives and labelling systems.

In addition to revealing that hot water efficiency measures might be available through the Green Deal, the paper also confirms government plans to develop water efficiency guidelines designed to encourage greater uptake of water butts and dual flush toilets.

It also hinted that some of these water saving measures could be promoted to businesses and homeowners applying for Green Deal financing to undertake efficiency makeovers.

The paper sets out a wide-ranging package of reforms designed to extend competition among water companies and prevent steep increases in water bills.

Responding to questions from BusinessGreen, Spelman said businesses were increasingly considering water and energy efficiency in tandem and cited Defra research which found the UK economy could save £23bn by using resources more efficiently.

"As part of the greening of our economy an increasing number of businesses taking up new technological solutions to reduce their carbon footprint and their water footprint," she said.

"Water as a resource and energy as a resource are two commodies that businesses generally are reviewing their use of as part of their own resource efficiency."

Today's wide-ranging White Paper is a precursor to a draft Water Bill which will be presented for pre-legislative scrutiny in early 2012.

Spelman said government was keen for UK businesses to take advantage of the $300bn a year global market for water products and services.

She added that Defra will launch a £3.5m innovation competition in March 2012, seeking technologies which can recover 1,000 megaliters per day from surface water and ground water cycles.

"Part of what we need to do in order to grow our economy is support science and technology, research and development into these new green technologies because they are undoubtedly growth area and also exportable technologies," she said.

"The UK already has a lot of international leadership in terms of green technologies and our commitment to reduce our carbon footprint and be more resource efficient. And the opportunities for businesses to invest go hand-in-hand with delivering those objectives."

However, experts have suggested the changes will lead to increased water bills as water companies pass on the costs of upgrades and government compensation schemes that allow abstraction licences to be changed.

Alongside the white paper, the Environment Agency published research analysing the impact of climate change and population growth on water resources.

It found that by the 2050s, under a medium emissions scenario, short duration droughts of 12 to 18 months are likely to become more frequent. It added that as a result severe droughts like that experienced in 1976 could become more common, despite the increased resilience of public water supply and more winter storage.

Commenting on the water strategy Friends of the Earth's Nature Campaigner Paul de Zylva said a national water strategy was long overdue.

"Households, farmers and wildlife across the UK are being left high and dry by Ministers' failure to properly manage our precious water supplies," he said. "We can't keep lurching between floods, droughts and hose-pipe bans - a national water strategy is long overdue.

"Fast action is needed to cut water waste, tackle floods and prevent our rivers and wildlife being sucked dry."

Shadow Environment Secretary Mary Creagh insisted the government had to take more action to help reduce water bills.

"The Tories' botched water privatisation left South West residents facing the highest bills in the UK and we welcome the Government's offer of £50 a year off their bills," she said. "The 2.4 million households across the rest of the country who spend more than five per cent of their income on water need a more robust approach from government and the water companies to ensure water remains affordable to all."

Isra-Mart srl: Durban inches towards deal on Green Fund, shipping, and CCS

2011-12-09T01:28:00.000-08:00

www.isramart.com

Isra-Mart news:
The negotiations on the future of the Kyoto Protocol may remain deadlocked, but a breakthrough could still be delivered on the promised $100bn-a-year Green Climate Fund.

According to reports, ministers are close to agreeing the framework for how the new fund would operate, funnelling billions of dollars to help poor nations cut emissions and adapt to inevitable climate change impacts.

Critics, including leading economist Lord Stern, have warned that the talks have focused almost entirely on how the fund would operate with little attention paid to how it will raise $100bn a year from 2020.

However, negotiators remain optimistic that once the framework for the new fund is in place it will become easier to agree on the mechanisms that can be used to raise the necessary finance.

Earlier in the week, it had been suggested that the US and Saudi Arabia were blocking a deal on the new fund, but in an encouraging development US lead negotiator Todd Stern told reporters yesterday that he had "a fair amount of confidence this is going to get done in a positive way".

In another encouraging sign, a bidding war is already under way to host the headquarters of the proposed fund with both Mexico and Germany putting themselves forward for consideration.

Senior diplomats said that any agreement on the new fund would represent a major breakthrough and could also have a knock-on effect on the wider negotiations given influential countries such as Brazil and China have made the launch of the fund a condition of their continuing negotiations on a future global climate treaty.

There was also speculation ministers could agree one of the mechanisms for raising capital for the new fund, with officials expressing optimism that they were close to a deal on some form of international levy on shipping and potentially even aviation emissions.

UK energy and climate change secretary Chris Huhne confirmed significant progress was being made, telling reporters that "we certainly think the aviation and shipping areas are the most likely areas to yield early dividends when it comes to funding finance".

Despite the concept being agreed in Copenhagen two years ago, financing the Green Fund when it comes into force in 2020 has remained a bone of contention, with cash-strapped countries arguing over the proportion of private and public funds.

But a document is circulating that would funnel the receipts of a tax per tonne on bunker fuel, simultaneously helping to tackle the three per cent of global emissions shipping contributes. It uses the same assumptions as a paper by Oxfam and WWF, which estimated a $25 tax, adding just 0.2 per cent to shipping costs, has the potential to generate $25bn a year in receipts by 2020.

Under the proposals, around $16bn a year would go to developing countries to offset the higher import costs that would result from the levy and $10bn would go to the Green Fund.

International Maritime Organisation (IMO) secretary-general Efthimios Mitropoulos told news agency Bloomberg yesterday that the UN body was considering the proposal, as well as alternative plans to establish an emissions-trading programme. He added that a decision on the measures could be made next year.

However, he did not specify what would be an appropriate levy and insisted any deal must apply globally.

"For this system to succeed, ships should comply with the same global standards all over the world," he said. "Were we to move to different standards for different ships you would have a major problem."

However, significant obstacles to a deal remain. The US is reportedly intent on stripping all mention of specific funding sources from the UN Green Fund document, while Australia has said UN bodies should deal with the problem of rising emissions.

"[Australia] supports multilateral discussions on this issue," a spokesman for climate change minister Greg Combet told the Australian newspaper. "There have been fruitful discussions in the International Maritime Organisation and the International Civil Aviation Organisation in recent months."

Any deal on aviation emissions is also likely to prove even more elusive than an agreement on shipping, with the EU currently battling with China and the US over its plans to impose emissions levies on airlines.

In related news, an agreement that could help accelerate investment in carbon capture and storage (CCS) projects in developing countries will be submitted to delegations for final adoption on Friday.

Talks on bringing the technology into the UN's Clean Development Mechanism (CDM) carbon offsetting scheme have been going on for the best part of a decade and at last year's Cancun summit participating countries agreed to allow it inclusion if a list of criteria were addressed and solved.

A draft decision obtained by Norwegian NGO Bellona states that CCS "is a relevant technology for the attainment of the ultimate goal of the Convention and may be part of a range of potential options for mitigating greenhouse gas emissions".

If adopted, CCS projects in developing countries could therefore sell carbon credits through the CDM scheme.

"COP 17 is looking good at this time to provide a milestone achievement for CCS that can remove much of the uncertainty of recent years on the capacity of the UNFCCC to support CCS-related (and therefore very large-scale) mitigation activities in developing countries," wrote Meade Harris, European regional representative for the Global CCS Institute, in a blog on the organisation's web site.

"Such a decision could also help enhance the ability of many national governments to put in place the appropriate frameworks that can give CCS projects their social licence."

Isra-Mart srl: Senate bill aims to stop US airlines being pulled into EU emissions trading

2011-12-09T01:27:00.002-08:00

www.isramart.com
Isra-Mart news:

A Republican senator introduced legislation yesterday that would attempt to stop the EU from forcing US airlines to purchase carbon allowances to cover emissions from flights in and out of the bloc.

The bill was put forward by South Carolinia Senator John Thune, but does not have a a Democratic co-sponsor so is unlikely to be passed in the Democrat-controlled Senate.

It follows a similar bill approved by the House of Representatives in October that would have effectively made it illegal for US airlines to participate in the EU emissions trading scheme (ETS). Thune said participating in the EU's emissions trading scheme (EU ETS) would cost airlines $3.1bn between 2012 and 2020 and put 40,000 jobs at risk.

"The idea that the European Union has the right to tax American air passengers and carriers flies in the face of our country's sovereignty," he said in a statement. "I reject this proposed European tax and will work with my colleagues in Congress and countless concerned stakeholders to block this tax."

Environmental campaigners have criticised the US opposition to a system they say could save around 183 million tonnes of carbon dioxide a year by 2020 and urged politicians to work with the EU when representatives meet in Washington DC later today.

But Thune's bill was welcomed by trade organisation Airlines for America (A4A), formerly known as Air Transport Association of America.

"We commend Senator Thune for his leadership in joining the administration and his colleagues in the House of Representatives in opposing the application of the EU ETS to US airlines, as it is both illegal and bad policy," said A4A president and chief executive Nicholas Calio.

"Subjecting airlines to the EU's unilateral system will be counterproductive to helping the environment, result in the loss of US jobs, and hamper airlines' ability to invest in new aircraft and continue their extensive efforts to reduce their environmental impact."

The House and Senate bills are unlikely to make it into law given they would almost inevitably spark a huge trade war with the EU and would have a huge impact on the viability of transatlantic flights.

Various legal attempts to overturn the EU's plans have also faltered, with the European Court judgement recently ruling against a group of US carriers that argued the EU's plans are illegal under international aviation treaties.

As such airlines look set to be included in the ETS from January, obliging them to hold emission allowances to cover their emissions – a move that will add to the cost of flights in to and out of the bloc.

However, the Congressional action has cranked up the pressure on the Obama administration to secure exemptions for US airlines.

President Barack Obama "forcibly" made clear his opposition to European Commission president Barroso at a recent summit meeting, said Paul Gretch, director of the Office of International Aviation at the US Department of Transportation (DOT).

Gretch told the GreenAirOnline website that the US was "pro-environmental action" but that the EU was going about reducing emissions from the sector in the wrong way.

"I fear we're heading towards a trade war that airlines and the economy cannot afford," he said, adding that the scheme is "illegal" despite EU rulings to the contrary.

Isra-Mart srl: EU insists it will “not budge” on Kyoto without wider emissions deal

2011-12-09T01:27:00.001-08:00

www.isramart.com

Isra-Mart news:

The EU has hardened its stance as the Durban Summit enters its final few days, with ministers insisting it will not sign up to an extension of the Kyoto Protocol without a tangible commitment towards a parallel global treaty from other large polluters.

Officials and ministers lined up to warn the EU was not bluffing when it said that the survival of the Kyoto Protocol was dependent on other large economies such as the US, China and India signing up to a roadmap that would see them agree a legally binding global treaty by 2015.

Writing on Twitter this morning, EU climate change commissioner Connie Hedegaard said the EU had established a "firm position: 2015 is enough time for those who are not ready to commit. Why further delay?"

Her comments were echoed by British Climate Minister Greg Barker, who also took to the social networking site to reveal there was a "V sober atmosphere at EU Umbrella meeting real determination not 2 budge on KP2 without clear roadmap 2 Global deal".

Energy and Climate Change Secretary Chris Huhne also reiterated the bloc's stance, insisting that it was "absolutely essential that we have real commitments" from other nations if the EU is to sign up to a new set of Kyoto targets.

If the EU maintains its position the future of the Kyoto Protocol and the wider climate change negotiations will rest on the willingness of the US and the so-called BASIC countries of Brazil, South Africa, India and China to sign up to a roadmap that would see a new treaty agreed by 2015.

Observers have suggested Brazil, South Africa, and potentially China could agree to the roadmap, while the US and India appear more resistant. As one anonymous official told the BBC: "The question will be whether India or the US or both really want to be the ones to stand up and say 'we broke the deal in Durban'."

However, others have accused China of bluffing, indicating publicly that it could sign up to a global treaty while remaining resistant to any move that would see binding emission reduction targets imposed on the country.

Speaking to news agency Reuters, one source close to the talks said there was "no way China will sign up legally, but it doesn't want to be blamed if the talks fail".

US negotiator Todd Stern insisted more detail was required on how any new treaty would work before the US could sign up to the EU's proposed roadmap.

"In order for there to be a legally-binding agreement that makes sense, all the major players are going to have to be in with obligations and commitments that have the same legal force," he told reporters. "That means no conditionality, no condition of receiving the financing, no trap doors, no Swiss cheese kind of agreement."

With the talks entering their final two days observers are divided on the likelihood of a successful outcome.

There have been reports a deal is close to being finalised on the framework for a new $100bn a year Green Fund, but concerns remain that the deadlock over Kyoto will remain unbroken.

There are also fears Prime Ministers and Presidents are less likely to intervene in the final hours of the talks, as has been the case at previous summits, given that EU leaders are currently involved in a crucial summit on the future of the eurozone.

US President Barack Obama did however make his one contribution to the summit yesterday, using a video message to encourage ministers at the talks to step up forest protection measures.

Obama hailed the work of Nobel peace prize winner and Kenyan environmentalist Wangari Maathai who died earlier this year and urged ministers to emulate her global tree-planting programme.

"Wangari's work stands as a testament to the power of a single person's idea that the simple act of planting a tree can be a profound statement of dignity and hope first in one village, then in one nation, and now across Africa," he said.

"Here in Durban, we can carry on her work, to ... grow our economies in a way that's sustainable and that addresses climate change."

Isra-Mart srl: Obama stands firm on Keystone XL oil pipeline

2011-12-09T01:26:00.000-08:00

www.isramart.com

Isra-Mart news:

US President Barack Obama has refused to speed up a decision on the proposed $7bn oil pipeline to link Canada's oil sands with refineries in Texas, rejecting calls from Republicans to tack the project on to renewal of a soon-to-expire payroll tax cut.

Speaking to reporters after meeting Canadian President Stephen Harper at the White House, Obama said it was important the potential environmental impact of the 1,700-mile Keystone XL pipeline was thoroughly examined before a decision is made.

"With respect to the politics, look, this is a big project with big consequences," he said. "We've seen Democrats and Republicans express concerns about it. And it is my job as President of the United States to make sure that a process is followed that examines all the options."

Keystone XL would transport around 700,000 barrels of oil each day through Montana, South Dakota, Kansas, Nebraska and Oklahoma before reaching the Texas coast. Supporters claim it would bring much needed jobs and reduce the country's reliance on Middle Eastern oil imports.

But opponents argue the pipeline would merely import "dirty" oil, which requires huge amounts of energy to extract. They are also concerned about the risk of environmental contamination, given a current pipeline operated by TransCanada has had several spills in the past year.

Obama faced down pressure from both Canada, which relies on the US for 97 per cent of its energy exports, and Republicans to delay a decision on Keystone until 2013, after the next election, providing time for a full environmental review of the project.

However, Republicans are continuing to push for the project to be given the green light and have argued that approval should form part of a deal that could see the GOP approve soon-to-expire payroll tax breaks that Democrats urgently want to see extended.

But yesterday Obama said he would reject any attempts to tie approval of the project to the proposed extension of the payroll tax cut, which is set to expire on 1 January. However, he stopped short of threatening a veto if the bill does move forward.

Senate Minority Leader Mitch McConnell, a Republican from Kentucky, urged the President to rethink, saying the pipeline offered Obama the chance to follow through on his pledge to make job creation a top priority.

He said: "Here's the single greatest shovel-ready project in America, ready to go, and for some reason he's suddenly not interested."

Isra-Mart srl: Lord Stern: rich nations should stop subsidising fossil fuel industry

2011-12-09T01:25:00.000-08:00

www.isramart.com
Isra-Mart news:
If rich nations were to stop subsidising fossil fuels to the tune of billions of dollars a year, the money raised could go a substantial way to providing the cash needed to help poor countries develop a "green" economy and cope with the effects of climate change, one of the world's leading economists said.

Lord Nicholas Stern, former World Bank chief economist and author of the landmark report for the previous Labour government on the costs of climate change, told the Guardian that rich economies waste money and disadvantage renewable energy by giving away tax breaks, loans and other subsidies to the fossil fuel industry. If governments were to cut these out, and dedicate the savings to helping poor countries, that could raise about $10bn a year towards helping the poor on climate change.

Developed countries have already committed to help poor countries in this way, pledging $100bn a year by 2020, most of which would be channelled through a fund called the "green climate fund", which is the subject of intense debate at the two-week United Nations climate talks in Durban.

But Stern pointed out that the discussions at Durban have focused overwhelmingly on the technicalities of how a fund should be set up. There has been very little discussion on how the sums needed can be raised, although within eight years at least $100bn annually must be channelled to developing countries if existing commitments are to be fulfilled.

Rich nations need to focus urgently on how to raise the money needed, he said.

In addition to cutting out fossil fuel subsidies, Lord Stern said, developed countries could raise the remainder needed from carbon taxes, the auction of permits to emit carbon, levies on international transport and loans from international development banks would all be needed. The sums involved would be affordable if countries put the right policies in place, he said.

"It is all eminently doable. We have set out in detail our estimates and the policies that could achieve them - if governments show the political will," he said.

A tax on carbon of $25 a tonne in developed countries could raise as much as $50bn a year for the fund, while a tax on aviation and shipping emissions could raise $10bn even if countries retained half the revenues for themselves. Stern suggested this should be an attractive idea to cash-strapped government Treasuries. If loans from development banks are added, this could be enough to meet the $100bn a year target.

But the true benefits would be much larger - Stern calculated that these policies, and carbon trading, should be enough to stimulate an additional $200bn to $250bn from the private sector.

The estimates are contained in a report by Lord Stern and Mattia Romani of the Grantham Institute at the London School of Economics.

Discussions on the green fund were "going pretty well" at Durban, said Todd Stern, the US special envoy for climate change. Other countries were also optimistic on Wednesday that the fund could be launched at the Durban meeting, which would help to release billions in funding for poor countries, to be spent on ways of cutting emissions - for instance through renewable energy - and adapting to the effects of global warming.

If the green fund is launched, it may be the one clear success of the conference. Talks on the other main issues - the future of the Kyoto protocol and the potential for a new global treaty on the climate - were crawling at a snail's pace.

The EU reiterated its demand for other countries to join it in pressing for a new international legally binding treaty, to be signed in 2015 or 2016, and to come into force in 2020. Only if some other major economies, such as China or the US, sign up to this "roadmap" will the EU agree to continue the Kyoto protocol after its first "commitment period" expires in 2012. So far, none have done so and some developing countries are insisting the EU should go it alone with a continuation of the Kyoto protocol.

Connie Hedegaard, EU climate chief, said: "There are not many hours left - we want to encourage the big emitters to come forward with more clarity on their real positions."

Chris Huhne, the UK climate and energy secretary, said the EU would not go it alone because, together with a handful of smaller developed countries such as Norway and Switzerland that have also agreed to continue Kyoto, it makes up only 15 per cent of global emissions. "It is absolutely essential that we have real commitments to the roadmap.

Isra-Mart srl: Wetherspoon's moves to down food waste in one

2011-12-09T01:24:00.000-08:00

www.isramart.com

Isra-Mart news:

Wetherspoon's pubs are raising a glass to environmental performance with the launch of a new trial designed to turn food waste into energy.

The chain has started sending around eight tonnes of food waste each week from 28 of its pubs to the country's largest anaerobic digestion (AD) plant, the Poplars facility in Staffordshire.

Poplars is operated by waste management company Biffa, which already deals with Wetherspoon's glass recycling and general waste throughout the UK.

The company could not confirm how long the trial would last or how much waste it expects to divert from landfill.

But Bob Barltrop, group sales and marketing director at Biffa, said the extension of the partnership between the two companies showed the food industry recognised the financial benefits of reducing its environmental impacts.

"It's the right thing to do and, as landfill tax costs continue to rise it makes good business sense; it will increasingly be the cheapest thing to do with food waste," he said in a statement. "In fact collection contracts such as this are set to be the most economical way for businesses of all sizes to deal with food and general waste."

Wetherspoon's said that it has also looked to curb its environmental impacts by recycling cans, glass, and paper, fitting energy efficient equipment in new or upgraded pubs, and using the same lorries that deliver drinks and food to take away recyclable items.

Isra-Mart srl: Food and drinks firms remain on track to meet ambitious carbon targets

2011-12-09T01:23:00.000-08:00

www.isramart.com

Isra-Mart news:

The UK's leading food and drinks manufacturers, including Coca-Cola, Mars and United Biscuits, are on track to meet ambitious green goals, despite increasing production in recent years, according to a major new report.

The Food and Drink Federation (FDF) yesterday issued an annual update of its members' progress towards a series of voluntary targets for reducing environmental impacts, including carbon emissions, water use and waste.

FDF members have reduced CO2 emissions by 25 per cent this year compared with 1990, the report said, adding that they are on track to meet a target to cut emissions by 35 per cent against the same baseline by 2020.

The report also showed that firms had reduced water use, excluding that embedded in products, by 5.3 per cent, edging them towards a 2020 goal of reducing water use by 20 per cent.

In addition, the report revealed that manufacturers this year began tackling the wider environmental impact of their supply chain, adopting goals to reduce water use and management, protect biodiversity, and develop more sustainable sourcing guidelines.

As part of that drive, FDF yesterday launched a campaign encouraging food and drinks companies to save water. Dubbed 'every last drop' it offers guidelines for manufacturing businesses to effectively manage water use across the supply chain.

Minister of state for agriculture and food Jim Paice hailed the industry's progress, but warned there was "no scope for complacency" in curbing the environmental impact of food and drink supply chains.

"There is a huge challenge ahead of us to balance the competing pressure and demands on the global food system," he said.

"This challenge applies to the whole of the food supply chain, so I am particularly pleased to see that the Five-fold Environmental Ambition is encouraging collaboration and engagement with food producers on sustainability objectives."

Nick Bunker, president of Kraft Foods UK & Ireland, and chairman of FDF's sustainability steering group, said the progress was particularly admirable given that overall production has increased.

Output in the food and drink industry increased by 3.5 per cent between September 2010 and 2011, according to the Office of National Statistics.

"In [CO2 emissions] and other areas, we have also improved performance while increasing output to meet higher demand, successfully decoupling environmental impacts from economic growth, which is key to meeting the sustainability challenges of the future and to our own and global food security," he said.

Isra-Mart srl: South Africa green lights 1.4GW of new wind and solar power projects

2011-12-09T01:22:00.000-08:00

www.isramart.com
Isra-Mart news:

Plans to build more than 3.5GW of renewable energy capacity in South Africa have taken a major step forward after 28 wind and solar power projects were approved as part of a government tender round that should serve to burnish the host country's green credentials as the Durban Summit enters its final few days.

The government yesterday awarded preferred bidder status to projects totalling 1,416MW of capacity, split between wind power, solar photovoltaic and concentrated solar power projects.

The 28 winners were selected from a total of 53 bids and now have until June 2012 to secure financial close and then begin construction.

The government awarded preferred bidder status to 18 solar PV projects totalling 632MW, and eight wind power projects, totalling 634MW. Two concentrated solar projects totalling 150MW, including the 100MW Abengoa-led KaXu Solar One also got the green light.

A consortium led by Ireland-based Mainstream Renewable Power emerged as a major winner, securing bids to deliver one 138MW wind farm and two solar PV projects totalling 100MW.

The consortium could invest up to £400m in the three projects, which have been co-developed by Mainstream and local partner Genesis Eco-Energy, with Absa Capital having underwritten the debt.

Siemens, Suntech and Group Five Iberdrola are expected to help deliver the technical aspects of the projects.

Mainstream's chief executive Eddie O'Connor welcomed the news, noting the consortium won all the projects it bid for.

"The government has shown tremendous vision and foresight in creating this new and sustainable industry for South Africa, firmly placing it on the world map for renewable energy generation," he said.

"Mainstream is fully committed to playing a leading role in the delivery of this vision and we look forward to participating in Round 2 and all future rounds."

Further rounds are expected to allocate more than 2GW of capacity to help reach the government's target of delivering over 3.6GW of new renewable energy capacity.

Isra-Mart srl: Buffett branches into solar power with Topaz purchase

2011-12-09T00:58:00.001-08:00

www.isramart.com

Isra-Mart news:

US tycoon Warren Buffett has made his first investment in solar power with the announcement this week that he has agreed to purchase First Solar's 550MW Topaz Solar Farm for an undisclosed fee.

The purchase of the $2bn project in San Luis Obispo County, California, is dependent on permits and electrical interconnections, and will be managed through Buffet's MidAmerican Energy Holdings Company.

The deal comes after First Solar was forced to look for alternative finance for the project after missing a deadline for a government loan guarantee.

The move also marks a departure for Mid-Western, which until now has focused its renewable energy investments on wind farms.

"Adding solar energy to our generation portfolio is a strategic move to invest in yet another renewable energy source," said Greg Abel, chairman, president and chief executive of MidAmerican Energy Holdings Company.

"This project also demonstrates that solar energy is a commercially viable technology without the support of governmental loan guarantees, and reflects the type of solar and other renewable generation that MidAmerican will continue to seek to add to its unregulated portfolio."

Topaz is one of the two largest solar plants being developed in the world and is expected to come online in 2015.

First Solar will continue to construct the plant and assume responsibility for operations and maintenance, while Pacific Gas and Electric Company will take the electricity from Topaz under a 25-year power purchase agreement.

Isra-Mart srl: Bill Gates in nuclear talks with China

2011-12-09T00:57:00.000-08:00

www.isramart.com

Isra-Mart news:

Bill Gates has confirmed he is looking to develop a new type of nuclear reactor that can be run on depleted uranium with the Chinese government.

In a talk at China's Ministry of Science and Technology, Gates confirmed TerraPower, the start-up he and fellow entrepreneur Vinod Khosla have invested millions of dollars in, is "having very good discussions with CNNC [state-owned China National Nuclear Corporation] and various people in the Chinese government".

Although he stressed negotiations were still at an early stage, Gates said up to $1bn could be put into research and development of the innovative reactor technology over the next five years.

TerraPower claims its so-called 'travelling wave reactor' can run for up to 50 years on depleted uranium and produce much less nuclear waste than conventional reactors.

Moreover, Gates said the technology can simulate earthquakes and tidal waves, which would give it extra protection from the kind of devastating event that hit the Fukushima nuclear plant in March.

"The idea is to be very low-cost, very safe and generate very little waste," Gates told the audience. "All these new designs are going to be incredibly safe. They require no human action to remain safe at all times."

Gates has invested millions in the Seattle-based nuclear firm in line with his belief that breakthrough technologies are needed to tackle the world's climate problems.

Both travelling wave reactors and thorium reactors are currently being touted by experts as a safer alternative to conventional uranium reactors, which have fallen out of favour in many countries following the Fukushima disaster.

Isra-Mart srl: Green energy firms urged to bid for £125m fund

2011-12-09T00:56:00.002-08:00

www.isramart.com
Isra-Mart news:

Green energy supply chain firms, such as those developing wind turbine and electric car components, have been urged to bid for a share of a new £125m government fund designed to boost UK competitiveness.

Business Secretary Vince Cable launched the Advanced Manufacturing Supply Chain Initiative yesterday, targeting key growth areas such as renewable energy and low carbon technologies.

The initiative was based on a bid by local enterprise partnerships to the Regional Growth Fund to boost automotive and aerospace sectors in the Midlands and Liverpool.

However, the government has expanded the fund to cover the whole of England and a range of advanced manufacturing sectors.

Suppliers of all sizes will be encouraged to submit formal proposals to the Technology Strategy Board from early next month for support worth £2m or more. Further details of the programme are expected to be revealed on 13 December.

Cable explained that the fund is designed to boost existing UK supply chain firms and encourage major new suppliers to manufacture in the UK.

"Recent economic and natural shocks such as the ash clouds, tsunami and Japanese earthquake have shown the fragility of long-distance and single-source supply chains," he said.

"I want to seize on the increased preference that big global companies are showing for co-locating key elements of their supply chains with their UK manufacturing operations."

The lack of a strong supply chain is often cited as a major barrier to the growth of the emerging green energy market.

The programme is expected to work alongside the Regional Growth Fund, which was given a £1bn boost last week in the Chancellor's Autumn Statement.

Deputy Prime Minister Nick Clegg set out further details yesterday on the increase in the fund, which will now reach £2.4bn, confirming at least two further rounds of bidding, the next round opening in February 2012.

"This additional £1bn boost for British businesses means the Regional Growth Fund will create an estimated 500,000 jobs before the end of this parliament," he said.

"With this targeted support for companies we're unlocking private sector investment, with at least £5 put in for every £1 of public money."

Isra-Mart srl: MPs demand clarity on carbon capture funding

2011-12-09T00:56:00.001-08:00

www.isramart.com

Isra-Mart news:

The head of an influential committee of MPs has expressed his shock at the decision to reallocate funds away from developing carbon capture and storage (CCS) technology and demanded to know when the government envisages the technology being up and running.

Tim Yeo, chair of the energy and climate change committee, today issued an open letter to Chris Huhne after last week's Autumn Statement siphoned off the £1bn earmarked for the UK's first CCS demonstration programme to finance a new set of infrastructure projects.

The move took the industry by surprise and was criticised by the government's own independent advisors after it threw into doubt the agreed timeline for having the first demonstration project completed by 2016 and three more operational by 2020.

CCS is one of the main pillars of the government's energy policy and is expected to become a £10bn industry in the UK employing up to 27,000 people by 2025.

But to date, only one small pilot project has come online with many observers blaming the lack of progress on the lengthy time taken to award funding to the first demonstration project, which saw all applicants withdraw from the process, culminating in Scottish Power's Longannet project in Fife dropping out of the competition in October.

The technology is thought to be well suited to the UK as it has access to geological formations in the North Sea capable of storing carbon emitted from factories and power plants on the east coast, as well as transferable skills from the oil and gas industry.

In his letter to the Energy and Climate Change Secretary, Yeo warns that CCS is a vital technology for the low-carbon transition and without it the UK's emissions targets may come under threat.

He calls on Huhne to urgently clarify exactly how much of the promised £1bn of CCS funding will be moved to the infrastructure budget, when he expects a commercial-scale project to be underway, and how the decision affects the next round of plants.

"There would be serious international and economic implications if we were not able to make this technology available," Yeo writes. "Without it, we may face an impossible trade-off between our environmental objectives and energy security.

"We are extremely concerned that the Treasury's short-term fixes will endanger our long-term economic and environmental prospects and these issues are not being given the weight they deserve in Whitehall."

A Department of Energy and Climate Change (DECC) spokesman insisted the government remained "fully committed" to cost-competitive deployment of CCS in the 2020s.

"We are clear that £1bn remains available to support future projects ... and expect CCS projects to come forward in this spending review period," he said in a statement. "The detailed profile of spend will be determined by the projects selected and when they require funding."

Yeo's letter comes after shadow energy minister Tom Greatrex quizzed Danny Alexander, the chief secretary to the Treasury, on the matter in Parliament yesterday.

Alexander said "£1bn is available for the carbon capture and storage project" and that the funds would be allocated "as soon as the competition is completed".

Speaking afterwards Greatrex said the answer "failed to clear up the uncertainty" that is afflicting the industry over how much funding will be made available during this parliament.

"The government refuses to say how much money there will be before 2015, and won't outline a revised timetable for CCS development on a commercial scale," he added. "If businesses are to invest in the long term development of this vital low-carbon technology, they need clarity from the government not dither and delay.

"It is time Danny Alexander and Chris Huhne came clean, rather than persistently undermining the UK's current commercial advantage on CCS technology."

Isra-Mart srl: Reports: Clean energy investments pass trillion-dollar mark

2011-12-09T00:54:00.000-08:00

www.isramart.com

Isra-Mart news:

Hopes that the Durban Summit will result in a new roadmap for a binding global climate treaty agreed by 2015 received a major blow last night, after Indian officials rejected the EU-backed proposals and senior diplomats accused China of failing to clarify whether it will sign up to legally enforced emissions targets.

Reports in The Guardian said that Indian environment minister Jayanthi Natarajan yesterday ruled out signing up to the EU proposal, which would see the Kyoto Protocol extended for a second commitment period on the understanding that all countries, including large emerging economies, agree to finalise a parallel binding treaty by 2015.

The new agreement is expected to impose emissions targets on all major polluters with a view to enacting the treaty by 2020.

The proposal has secured preliminary support from many developing countries, but speaking ahead of a series of crucial meetings between the EU, the US and the so-called Basic countries of Brazil, India, South Africa and China, Natarajan insisted that India is not willing to negotiate any future deal until industrialised nations extend the Kyoto Protocol and make good on all climate aid pledges.

Natarajan argued that industrialised nations have still not fulfilled all their obligations under the first phase of the Kyoto Protocol and, in a reference to Canada, Russia and Japan, accused a handful of nations of preparing to leave the long-running treaty.

She also warned that industrialised nations are guilty of an "ambition gap", citing a recent report from the Stockholm Environment Institute that analysed the voluntary emission reduction pledges made at last year's Cancun Summit and concluded that, when various loopholes are taken into account, developing nations have agreed to deeper emissions cuts than rich countries.

The comments are the latest in a series of blows to the EU's proposal for a new roadmap, after senior Chinese officials signalled that they want to see the Kyoto Protocol extended before any new agreement can be reached, and the US continued to argue that new legally binding emissions targets may not be necessary.

Brazilian envoy Luiz Alberto Figueiredo also offered a lukewarm welcome to the proposals, telling news agency Bloomberg that, while the country has "no problem" with looking at a new timeline, plenty of details will need to be finalised before the country is willing to sign up to any new agreement.

The stand off has led to a ratcheting up of tensions between the main players at the talks.

In an unusually outspoken intervention, EU climate change commissioner Connie Hedegaard told the summit yesterday that "the EU has put a significant offer on the table" and the onus is on other countries to follow suit.

"Even if others are not, we are ready to take a second commitment period of the Kyoto Protocol - now," she said. "We do this in order to preserve what it took us all so many years to agree upon. But we must be reassured that others will join us in a new legally binding framework after that second commitment period and when they will."

Writing later on Twitter, Hedegaard also accused some countries of undermining progress towards a deal while insisting in public that they are looking to reach an agreement. "Sometimes messages are more progressive at public press conferences than in negotiation rooms," she wrote.

Christiana Figueres, head of the UN climate change secretariat, also sought to crank up pressure on the US, warning that the nation is at risk of losing its position as an economic superpower if it does not step up efforts to cut emissions.

"It's concerning and sad that the US has lost leadership, not just politically but, perhaps more importantly for them, in their economy," she told a meeting to launch the second Globe International Climate Legislation study.

"The fact they are losing out on the green economy, losing out on investments in clean energy, losing out on the possibility of being a large exporter of clean energy and technology. It's something that's very difficult to understand and one wonders when they are going to wake up to that."

Figueres was speaking alongside British Energy and Climate Change Secretary Chris Huhne, who challenged the US argument that a non-binding treaty could deliver deep emissions reductions.

"I don't think President Ronald Reagan would have decided that the best way to deal with the international missile race was through voluntary pledges. Exactly the same thing applies with climate change," he said.

"The US has recognised the need for a globally binding framework in the past, and I believe the US will recognise it again in the future... One of the most frustrating things about these talks is the way everybody is waiting for the other to go first."

Isra-Mart srl: Reports: India rejects EU climate deal roadmap

2011-12-09T00:53:00.000-08:00

Isra-Mart srl: Firms urged to accelerate efforts to green their IT systems

2011-12-09T00:43:00.002-08:00

www.isramart.com
Isra-Mart news:

Businesses have been urged to develop green IT policies after a new survey revealed nearly half of the UK's organisations fail to ensure that computers power down out of hours.

A survey of 1,000 IT staff, published today by OnePoll on behalf of software developer Faronics, found that 40 per cent of the UK's private and public organisations have failed to develop green IT strategies.

The vast majority of those organisations without a plan in place believe it would be too time-consuming, taxing or expensive to enforce a green IT strategy.

However, 40 per cent of respondents said they did have green IT policies in place, and nearly a third considered their businesses to be a "green" organisation in terms of IT efficiency.

Significantly, nearly half of those with green IT policies cited cost savings as the main driver, while just 18 per cent cited environmental concerns. Nearly a third said they were driven by corporate social responsibility or reputational concerns.

Bimal Parmar, vice president of marketing at Faronics, said the survey showed businesses were gradually shifting towards developing green IT plans in the face of rising energy bills and growing customer awareness of environmental concerns.

"While organisations have long been sceptical of the financial and business benefits of sustainability, this perception is finally changing," he said.

He urged businesses to adopt simpler green IT measures such as powering down their desktops out of hours, arguing that recent research from energy giant E.ON revealed that £30.8m is wasted every day as a result of idle workstations.

"The impact of a sound desktop management strategy should not be underestimated, especially when considering that only 30 per cent of a desktop's energy is actually utilised productively," he said. "This not only wastes a significant amount of power, but also results in unnecessarily high costs.

"What some people do not seem to realise is that solutions are becoming increasingly sophisticated. IT departments are now able to boot desktops for scheduled maintenance whenever desired and ensure that computers are not shut down while essential updates are occurring out of hours, thus having no effect on company productivity."

Faronics is one of a number of companies to offer PC power management software that allows firms to automatically power down or turn off machines that are not in use. Other providers include UK-based 1E and US software firm Verdiem.

Isra-Mart srl: Court to decide on EU aviation emissions trading case before Christmas

2011-12-09T00:43:00.001-08:00

www.isramart.com

Isra-Mart news:

The European Court of Justice is poised to make a final decision on the legality of EU plans that will force airlines to purchase carbon credits to cover the emissions of all flights in and out of the bloc's airports.

A spokesman for the Court told BusinessGreen that the ruling will be delivered on 21 December, rather than in January as had been expected.

"There had been no date set until this one," he said. "If the case had taken the average length of time these things usually take it would have been in January, but the Court has moved quicker."

The formal ruling is widely expected to uphold a preliminary judgement made in October, which dismissed US airlines' accusations that the EU had exceeded its jurisdiction and violated international aviation treaties by incorporating aviation in its emissions trading scheme (ETS).

The move should clear the way for airlines to begin buying EU carbon allowances as part of the ETS from 1 January, as originally envisaged, although appeals and the threat of further legal action by Chinese carriers could still disrupt the plans.

Airlines are concerned that the plans could spark trade wars or even tit-for-tat legislation, a fear given more credence by a bill passed in the US House of Representatives that will impose heavy fines on any of the country's carriers that comply with the EU emissions trading rules.

US and EU representatives will meet in Washington this Thursday to discuss the move, which could save around 183 million tonnes of carbon dioxide a year by 2020.

To date, Brussels has stood firm on its plans and refused pleas to exempt non-EU airlines.

The European Commission agrees with the industry that a global solution to cut emissions would be preferable, but argues that, with little sign of such a deal on the horizon, it must take action to limit the sector's emissions.

The stance has won support from green groups, which urged the US to stop fighting the legislation and work with the EU instead.

"The US should follow words with action and co-operate with Europe in proposing enforceable emissions reductions for the aviation sector," said Pamela Campos, an attorney with the Environmental Defense Fund, in a statement.

"It's time for the US to stop complaining about Europe's actions, and instead put homegrown ingenuity to work with our diplomatic allies to show that there is a pathway to sustainable, climate-sensitive air travel."

Isra-Mart srl: Siemens adds eMeter to smart grid portfolio

2011-12-09T00:42:00.000-08:00

www.isramart.com

Siemens has agreed to purchase US data-management company eMeter for an undisclosed amount.

The companies, which have been working together since 2008, signed the agreement at the beginning of the month, paving the way for the deal to close before the end of the year.

eMeter designs software to record and process energy consumption data in electronic, gas, and water meters, which Siemens already uses in some of its own products.

The company manages more than 20 million meters in the US and counts a number of large utilities such as Centerpoint Energy and Silicon Valley Power as customers.

Siemens said eMeter's San Mateo, California, headquarters will be retained and the company is now expected to become part of the German conglomerate's newly-formed Infrastructure and Cities division.

"The acquisition of eMeter means that EnergyIP meter data management software will become an integral part of our smart grid portfolio," said Jan Mrosik, chief executive of the Smart Grid Division of the Siemens Infrastructure and Cities Sector.

"Ever-increasing demand for more efficient power supply networks for cities and utilities make this acquisition even more important."

The deal is the latest in a series of acquisitions across the smart meter and smart grid markets that has prompted speculation about further consolidation across the sector.

Most notably, Toshiba acquired smart meter giant Landis+Gyr for $2.3bn earlier this year, after overcoming reported competition from GE, Honeywell International and ABB.

Isra-Mart srl: Tesco pops cork on lightweight Champagne bottles

2011-12-09T00:41:00.000-08:00

www.isramart.com

As retailers gear up for the annual boost in sales of Champagne ahead of the holiday season, Tesco has unveiled a new lighter bottle designed to curb carbon emissions and reduce waste associated with toasting in the new year.

The supermarket chain has started this month stocking its De Vallois Champagne in 830g bottles, a reduction of 70g on the standard 900g design.

The company confirmed plans to use lightweight bottles across its entire Champagne range over the next few years, arguing that the design will cut waste levels, curb the carbon footprint of the drink, and reduce transport costs.

The move forms part of an industry-wide initiative to use lighter bottles currently being pursued by the Comité Interprofessionnel du Vin de Champagne, the body responsible for producing and distributing wine from the world-famous Champagne region.

Andrew Gale, category technical manager for Tesco Beers, Wines and Spirits, said that the move is part of a broader initiative to reduce the amount of glass used across the division.

The company claimed last year to have introduced the lightest-ever wine bottle, weighing in at 300g compared to a standard bottle at 420g, and Gale said that further improvements are in the pipeline.

"We are fully committed to reducing glass waste across our entire drinks portfolio and are working closely with our suppliers and the wider industry to deliver significant CO2 reductions throughout our supply chain," he said. "We are confident that the Tesco shopper will respond positively to the move."

The move came in the same week as the government-backed Waste and Resources Action Programme released its latest update on supermarkets' progress on the voluntary waste reduction targets set as part of the Courtauld Commitment.

The report concluded that supermarkets had made good progress reducing packaging and food waste, but urged them to step up efforts to cut waste produced across their supply chains.

Isra-Mart srl: UN: IT must play crucial role in climate adaptation

2011-12-09T00:38:00.002-08:00

www.isramart.com

Delegates at the Durban Summit would be well advised to consider the role IT can play in cutting emissions and mitigating the impact of climate change, the UN's own technology body has said.

IT is estimated to be responsible for between two and five per cent of global emissions, and businesses and governments are well aware of how to lessen that impact, Dr Bilel Jamoussi, chief of the International Telecommunication Union's study groups department, said in an interview.

Technologies such as smart grids and intelligent transport systems are already well established as a means of reducing greenhouse gas emissions, but Jamoussi said that the potential for IT to be used to support climate adaptation efforts has been overlooked until fairly recently.

The ITU will release a report at the Durban Summit this week highlighting how an IT project in Ghana has helped adapt the country's cocoa industry to make it more resilient to climate change impacts.

"The report will look at how ICT [information and communications technology] can be used in optimising production," Dr Jamoussi said. "For example, sharing real-time information between producers and end users."

The report is based on one country, but Jamoussi told BusinessGreen that the findings are applicable to most developing nations.

"It's a really good sign that these countries are seeing how they can adapt," he said. "These countries are not always big producers of greenhouse gases, but they are the most affected [by climate change]."

The ITU has also launched a set of three standardised methodologies that will allow businesses and governments to compare the direct and indirect environmental impacts of products and networks throughout their lifecycle.

And it has helped develop a universal charger for mobile phones that is due to hit stores next year and which reduces the consumption of electricity when no device is attached.

The EU threatened legislation unless mobile phone manufacturers agreed to work on a standardised charger, after research revealed that they generate more than 51,000 tonnes of electric waste each year.

Jamoussi speculated that the global savings resulting from the new standardised design could be even higher.

"We believe this one charger will have a huge impact on e-waste," he said. "When people get a new phone they also need a new charger. This results in hundreds of thousands of tonnes of e-waste we can save."

With reports from Durban suggesting the talks are again deadlocked, the ITU is also campaigning for technology to be better integrated into the long-running negotiations.

"Our key goal is that ICT is viewed as an enabler and plays a central role in adaptation and mitigation," Jamoussi said. "Our report and recommendations are a concrete example of that."

Isra-Mart srl: Government announces £30m boost to green community and public sector projects

2011-12-09T00:38:00.001-08:00

www.isramart.com

The government has today announced an additional £30m of funding designed to support energy efficiency improvements to public sector buildings and help local communities deploy renewable energy technologies.

Energy and Climate Change Secretary Chris Huhne said £10m would be ploughed into a new Local Energy Assessment Fund (LEAF), while a further £20m would be provided to the Salix scheme, which provides low interest loans to schools, hospitals, and public sector buildings, allowing them to undertake energy efficiency projects and then repay the loans through the resulting energy bill savings.

Huhne said the funding was "great news" for the public sector and community level projects, adding that the new finance would "encourage energy efficiency in our schools, hospitals and universities... [and] get green energy generation and energy efficiency into our communities".

The new £10m LEAF fund will be managed by the Energy Saving Trust and community groups such as parish councils, voluntary associations, development trusts and faith groups are being invited to apply online for funding awards worth around £50,000.

The funding will be awarded in two phases with the first application period running from today until noon on 22 December and the second round running until noon on 20 January 2012. All successful projects will be notified by the end of January.

"The Government is making huge changes to the UK's energy system, including reforms to the electricity market to make sure that we can replace aging power stations and keep the lights on in the cheapest, cleanest way, and the Green Deal, the biggest home energy efficiency drive since the Second World War," said Climate Change Minister Greg Barker. "I want to make sure that local communities are at the heart of this energy revolution, and this funding will help make sure that can happen."

A spokeswoman for the Department of Energy and Climate Change (DECC) told BusinessGreen that the £50,000 of funding could be used by community groups to deploy small scale renewable energy technologies or undertake feasibility studies and prototype deployments to lay the ground work for larger projects.

However, the move is likely to anger solar firms who have accused the government of sparking the cancellation of a raft of community scale solar installations in the past month as a result of its proposals to impose cuts to feed-in tariff incentives of over 50 per cent for community owned and social housing projects.

The spokeswoman said the department was consulting on how to better support community scale renewable energy projects as part of the review of feed-in tariff incentives. But she maintained some projects will be able to proceed even if deep cuts to incentives are imposed.

Meanwhile, the additional £20m of funding for the Salix loan scheme is expected to reduce public sector energy bills by up to £46m a year while cutting carbon emissions by 210,000 tonnes.

Public sector bodies working on energy efficiency projects that can deliver a return on investment within five years are invited to apply for the new financing before the end of March next year.

Alastair Keir, chief executive of Salix Finance Ltd, the government-backed company set up to administer the loan scheme, said the new funding would allow the firm to continue to provide "much needed assistance to the public sector, helping it reduce its carbon emissions and energy bills".

He added that the interest free loans would allow public sector organisations to "remove the barrier of having to find capital to pay for the energy efficiency measures at a time of tight budgets".

Isra-Mart srl: Climate Committee: Biomass has "no role" in electricity production without CCS

2011-12-09T00:37:00.000-08:00

www.isramart.com

Large-scale biomass power plants have "no appropriate role" in future electricity generation without carbon capture technology the government's emissions reduction advisors will say today, prompting further criticism of the decision to delay a promised £1bn of support for a large scale carbon capture demonstration project.

A new report from the influential Committee on Climate Change (CCC) will say that meeting the UK's overall 2050 emissions targets will be difficult unless bioenergy increases it share of the country's energy mix from two per cent to 10 per cent.

But it warns that in order to maximise emissions reductions carbon capture and storage (CCS) technology will have to be fitted to biomass power plants, in a move that would effectively remove carbon from the atmosphere.

The committee advises that if CCS proves unfeasible the UK must ditch biomass power plants and focus its biomass resources on heat generation, assuming that technological breakthroughs, such as algae-based fuels, do not emerge and provide sustainable biomass materials.

The report calculates that deploying biomass power plants without CCS could force the UK to roll out large numbers of such facilities in order to meet its emission reduction requirements, risking increased emissions elsewhere as a result of the deforestation and land use changes that could be required to provide sufficient biomass feedstocks.

The report follows the government's decision to transfer an as yet unspecified amount of the £1bn budget set aside for CCS to finance a new package of infrastructure projects after it failed to agree a deal to fund the UK's first demonstration project at Longannet.

David Kennedy, chief executive of the CCC, told BusinessGreen the indication that the government will not be spending significant amounts on CCS technology until the next Parliament "doesn't give a good signal" to the sector.

Kennedy warned demonstration projects of around 300MW need to start in 2013 and come online by 2017 if the government wants to use commercial-scale biomass for power generation in the future.

"The government needs to make good on the commitment to having four [CCS] projects," he said. "We need clear milestones for moving projects forward in the next few months. If we don't have projects commencing until the next parliament it would put us back a long way."

Although it estimates a large proportion of the feedstock could be sourced from the UK, the CCC report warns any biomass energy targets will need to remain "flexible" until stringent sustainability regulations can be put in place to ensure feedstocks are harvested in a manner that does not result in uncontrolled deforestation and a net increase in emissions.

"The killer number is the UK currently consumes around 30MT wood, of which 1MT is biomass," Kennedy said. "We're looking at up to 25MT in power generation - effectively doubling the overall wood demand. That's pushing the limits of sustainable demand... and the worry is that we'd be felling trees in an unsustainable way."

The CCC is also calling on the government to remove support for electricity production from large scale dedicated biomass plants, which currently receive 1.5 Renewable Obligation Certificates (ROCs) per megawatt hour (MWh) under the Renewables Obligation (RO) scheme.

Kennedy argued that converting coal plants to biomass or co-firing biomass with fossil fuels represents a much cheaper way of delivering low-carbon power, but because both approaches currently receive only 1 ROC they are less attractive to investors.

"You've got two choices - you can either use biomass in converted coal plants or build new large scale biomass stations," he said. "There's a very big difference in the associated costs, which raises the question why would you pay a £60 per MW premium to get the same thing in carbon terms?"

However, bioenergy does have a role in sectors such as heavy industry, shipping and aviation, Kennedy added, although he argued that electric and fuel-cell powered cars will have a bigger role in decarbonising surface transportation.

"You use bioenergy where no alternative to decarbonisation exists," he said. "You can't have electric planes or electric ships so biofuels make sense."

A Department of Energy and Climate Change (DECC) spokesman said the government would respond to the CCC's recommendations as part of its forthcoming bioenergy strategy, due to be published early next year.

While he could not give details on the government's revised plans for funding CCS projects, he reiterated the government's commitment to the technology and added the timetable for new projects would be outlined in a soon-to-be-released "accelerated timetable".

Kenneth Richter, biofuels campaigner for Friends of the Earth, said it was vital to reduce the UK's ambition for bioenergy and move towards clean-energy alternatives.

"Big industrial power stations burning huge quantities of imported wood pose a real threat to the world's forests - they should not be supported by taxpayers' money," he said in a statement.

"Instead Ministers should back small-scale UK biomass sources like slurry and food waste - and focus on meeting our energy needs by developing clean energy from wind, sun and waves."

Isra-Mart srl: Ban Ki-moon demands 'real progress' towards Durban climate deal

2011-12-09T00:36:00.000-08:00

www.isramart.com

UN Secretary-General Ban Ki-moon has issued his customary call today for world leaders to take urgent action on climate change, marking the start of high-level ministerial negotiations at the Durban Summit.

Ministers from almost 200 countries are preparing to embark on four days of intensive talks intended to secure a new international climate change treaty, and Ban acknowledged that the deadlock over the future of the Kyoto Protocol means that "a binding agreement may be beyond our reach for now".

But he added that, despite "great economic troubles", ministers should aim to make "real progress" in Durban.

"Now is the moment to be ambitious," he said, noting that recent research from the International Energy Agency confirmed that the world is fast approaching the "point of no return" for tackling climate change.

"It would be difficult to overstate the gravity of this moment," he added. "Without exaggeration, we can say: the future of our planet is at stake - people's lives, the health of the global economy, the very survival of some nations."

Ban advised ministers to deliver progress on four fronts by fully implementing the Cancun Accords agreed last year, delivering tangible commitments on long- and short-term finance, securing the future of the Kyoto Protocol, and setting out concrete steps towards a new comprehensive treaty.

The checklist represents a tacit approval for the EU's much-discussed roadmap, which was released over the weekend and proposes extending the Kyoto Protocol into a second commitment period while also securing a binding parallel treaty that would cover all countries that do not face emissions reduction targets under Kyoto.

Ban's comments were echoed by South African President Jacob Zuma who told ministers that the Durban Summit represents a "decisive moment for the rules[Kyoto]-based regime".

He added that all parties should aim to move towards a global deal that covers all countries by 2020.

The launch of the ministerial level talks came as senior officials downplayed hopes of a breakthrough on the crucial issue of the future of the Kyoto Protocol.

China fuelled optimism of a breakthrough yesterday by hinting that it could sign up to a legally binding treaty if the Kyoto Protocol is extended and other conditions are met.

However, Canada, Russia and Japan have all signalled that they will not sign up to a second commitment period of the Kyoto Protocol, while Indian officials indicated that they will not follow China in agreeing to binding emissions targets.

US negotiator Todd Stern further dampened enthusiasm, telling reporters earlier today that he had not detected "any change at all in the Chinese position with respect to a legally binding agreement".

He also reiterated the US view that a new legally binding treaty is not the "be all and end all" when it comes to tackling climate change - a stance that has infuriated developing countries which accuse the US of singularly failing to take sufficient action to curb emissions.

The talks now look set to enter several days of brinkmanship that will be familiar to veterans of the long-running negotiations, with the EU seeking to build a coalition of support for its roadmap, and countries attempting to deliver progress on arcane technical agreements and the overarching principles of how any new treaty should be structured.

Isra-Mart srl: Future business leaders hold promise of 'sustainable generation'

2011-12-09T00:35:00.000-08:00

www.isramart.com

The next generation of corporate leaders are broadly committed to developing more sustainable business models, regard green issues as a major commercial opportunity, and want to work for companies with strong environmental records.

That is the conclusion of a major new survey of 750 corporate graduate trainees, MBA students and "high potential middle-managers" commissioned by broadcasting giant Sky, which confirmed that a self-styled "sustainable generation" is committed to embedding green technologies and business models into the companies they work for.

The report, entitled The Sustainable Generation: The Sky Future Leaders Study, found that 70 per cent of young executives regard sustainability as an area where businesses can create new opportunities, while two thirds believe the tough economic climate should not be used as a excuse for sidelining green projects.

It also revealed that just over a third of respondents regard "creating social and environmental value" as an overall career goal, while nearly 80 per cent said that the "vision and values" of a company are an important factor when they are looking at potential employers.

Speaking at the launch of the report, Sky chief executive Jeremy Darroch said the results prove that there is a new generation of future business leaders who have grown up with sustainability issues.

"They are engaged already with sustainability and it is encouraging that they see it as a priority even in tough economic conditions," he said, adding that the stance of young executives highlighted the need for green businesses to better communicate their values. "All businesses need to get better at communicating their values; it is not just about saying what you have done, but why you have done it."

However, the survey also highlighted a number of challenges faced by businesses in trying to attract the best young executives.

For example, over a third said that they do not believe their employers are providing adequate levels of training or education on sustainability.

Moreover, while 78 per cent of respondents believe that UK businesses are making a genuine effort to become more sustainable, just three per cent said that firms are fully succeeding in meeting their sustainability goals.

Jo Fox, director of the Bigger Picture campaign at Sky, suggested that the onus is on employers to significantly improve how they communicate sustainability initiatives so that they credibly explain what they are doing and outline the motivations that have driven green investments.

Leo Johnson, of PwC Sustainability and Climate Change, said that businesses that can attract young executives who are committed to sustainability are likely to reap plenty of rewards.

"You want someone who wants to get out of bed in the morning and go to work to do something good," he said. "They will be more motivated and they will care more."

However, he voiced scepticism as to whether this new "sustainable generation" fully understands the scale of the changes that will be required to develop a genuinely sustainable economic model.

"I am not remotely convinced this is a generation we can call sustainable," he said, adding that, according to recent research, the average British student now owns nine internet connected devices. "There is still an obsession with consumption over production in this generation."

Isra-Mart srl: Government confirms delay to HS2 decision

2011-12-09T00:34:00.002-08:00

www.isramart.com

Transport secretary Justine Greening has announced that the government will delay a decision on the controversial High Speed Rail 2 (HS2) project until early next year.

The government was scheduled to rubberstamp the £34bn project before the end of the month after a consultation closed in July, although speculation was rife that it could delay the decision in order to explore alternative plans that limit the impact of the project on areas of the Chilterns.

Greening issued a written statement today confirming that the Department for Transport will not make any announcements until January.

"In order to ensure that my decision is based on a careful consideration of all relevant factors, I have concluded that I should allow myself until early in 2012 to announce my decisions," she said.

"I am therefore notifying the House that I will not be making a further statement on the subject of high speed rail this year, but I expect to announce my decisions in January."

The decision will come as a blow to supporters of the scheme, who fear that the government is wavering on its commitment to the line, which will cut journey times between London and the north and offer an alternative to domestic flights.

The proposed route from London to Birmingham through the Chilterns has sparked fierce opposition, forcing the government to consider a £500m tunnel to avoid the 250mph trains damaging the area's natural beauty.

Backers are worried that this could have huge implications for other parts of the route, potentially raising the overall cost and negating any ambitions to be low-carbon.

Opponents argue that HS2 will not displace any domestic flights and that the money would be better spent on improving the existing rail network.

However, a report last week from the Campaign for Better Transport, conservation groups, and train manufacturer Siemens argued that, if the project is well managed and the network powered using low carbon sources, it could deliver a net reduction in carbon emissions.

Isra-Mart srl: Durban negotiators plan to tap shipping for $100bn climate fund

2011-12-09T00:34:00.001-08:00

www.isramart.com

A tax on the shipping industry could provide finance for a fund to help poorer countries tackle climate change, according to a formal proposal published at the Durban climate summit today.

The document proposes that "financial resources" are raised through unspecified measures designed and implemented by the International Maritime Organisation as part of efforts to cut the sector's emissions.

It adds that the resulting revenue should be funnelled towards the $100bn Green Climate Fund in order to compensate developing countries whose own fleets might be affected by the levy.

The idea has been discussed at UN level for some time, but today's document is significant as it represents the first formal proposals on how the Green Climate Fund could be financed.

Prior to the Durban summit, experts predicted that the fund, agreed at the Copenhagen summit in 2009, might be one of the few areas of progress.

However, reports emerged last week that the US, Venezuela and Saudi Arabia have refused to accept a draft plan to establish the fund.

Green campaigners have long argued that a tax on shipping would have the dual effect of providing much needed finance at the same time as cutting carbon emissions from the sector, which is currently outside global emissions targets set by the Kyoto treaty.

Shipping is responsible for around three per cent of total global emissions, but this is expected to grow dramatically over the coming years in line with the expansion in global trade.

A report by WWF and Oxfam earlier this year calculated that a $25 per tonne tax on bunker fuel could generate $25bn a year in receipts by 2020, adding that more than $10bn of this could go to climate aid.

The shipping industry is broadly supportive of such a scheme as long as it is applied globally.

Prior to Durban, the International Chamber of Shipping joined green groups to call for countries to lay the ground for a market-based measure addressing emissions that could be in place by 2015.

Isra-Mart srl: UK allocates over £1bn of climate aid

2011-12-09T00:33:00.000-08:00

www.isramart.com

The UK is on track to provide the £1.5bn of fast-start climate aid to developed countries that it committed to deliver by the end of 2012.

Figures released by the Department of Energy and Climate Change (DECC) today show that more than two thirds of the money pledged at the Copenhagen climate summit in 2009 has already been allocated, primarily to projects in Africa.

These include £150m to fund public transport systems and promote energy efficiency in Nigeria, a project expected to save 47 million tonnes of carbon dioxide, and £27.6m to co-finance low-carbon electricity generation for thousands of poverty stricken rural households unconnected to the grid in eastern and southern Africa.

At a press conference on the sidelines of the Durban climate summit, Energy and Climate Change Secretary Chris Huhne also announced around £125m of new projects, aimed at helping countries most vulnerable to a changing climate to improve their resilience.

"We promised we'd be the greenest government ever at home and abroad and passing the £1bn milestone shows the UK's commitment to helping developing countries tackle and cope with the effects of global warming," Huhne said in a statement.

"Climate change is the greatest challenge of the 21st century so we have a moral responsibility to help the poorest countries respond. This not only benefits the most vulnerable but helps all of us move towards a safer and cleaner future."

The fast-start aid was promised to developing countries as part of a $30bn fund to help climate change adaptation and mitigation efforts before the UN's $100bn Green Climate Fund begins in 2020.

However, while the Green Climate Fund was almost universally agreed in Copenhagen and Cancun the following year, it has proved a sticking point in the current Durban negotiations.

Reports emerged last week that the US, Venezuela and Saudi Arabia have refused to accept a draft plan to establish the fund, and that the Saudis are demanding compensation for any loss of oil revenues as a result of countries adopting climate-friendly policies.

Isra-Mart srl: Branson predicts aviation could be among 'cleanest' industries within 10 years

2011-12-09T00:32:00.000-08:00

www.isramart.com

Half the fuel used by airlines could be sustainably sourced biofuels by the end of the decade, according to Sir Richard Branson.

The Virgin Atlantic founder and serial entrepreneur made the claim at the launch yesterday of RenewableJetFuels.org, a website rating around 40 companies producing green aviation fuels based on their economic viability, scalability and sustainability.

New Zealand firm Lanzatech, which is pioneering a method of producing biofuels from steel production waste gases with Virgin, and California's SG Biofuels, seized the top spots in the new rankings, while Solazyme and Neste, both of which have deals in place with leading airlines, also appear in the top 10.

Currently, around a third of the companies on the list are judged to be "credible" producers of commercial volumes of biofuels.

However, suppliers seeking to improve their rankings can upload new data on their biofuels to a database hosted by academic publisher Elsevier, which will then be assessed by independent experts.

The approach has been imported from ShippingEfficiency.org, a website showing the environmental performance of more than 60,000 international vessels, which is also backed by Branson's Carbon War Room organisation.

Branson thinks the economic case for switching to jet biofuels is strengthening as a result of rising fuel costs that will see airlines spend $200bn on fuel in 2011, a huge rise on the $140bn spent in 2010.

He told the Guardian that the fact airplanes only have "about 1,700" filling stations, as opposed to the millions worldwide that serve land transport, also means aviation biofuels could be rolled out relatively quickly.

"Once the breakthrough takes place, getting to 50-100 per cent [sustainable biofuel] is not unrealistic," he told the paper. "Aviation fuel is 25-40 per cent of the running costs of airlines, so the industry is open to new fuels."

Aviation accounts for around three per cent of global emissions, and while a global deal to limit its impact has proved elusive, the EU will force airlines to buy carbon credits to cover emissions from flights in and out of Europe from January 2012.

Biofuels are seen as a method of reducing emissions from the sector, although campaigners argue there is insufficient feedstock to supply the industry and increasing demand for energy crops will undermine food production.

Lord Adair Turner, chairman of the Committee on Climate Change, has even suggested that aviation may prove a high-carbon exception in a future low-carbon world.

However, Branson is confident biofuels could enable low-carbon commercial flights within a few years.

"We're heading in the right direction," he told the Guardian. "The industry could go from one of the dirtiest to one of the cleanest in 10 years. We are investing in different companies and really beginning to see traction."

But Jean Leston, senior transport policy advisor at WWF-UK, did not share his enthusiasm.

"Richard Branson has always been an optimist about biofuels but I hadn't realised he was a fantasist," she said. "We're a long way away from having the quantities of biofuels that Branson is counting on, let alone ensuring that these have minimal impacts and are from sustainable sources."

Isra-Mart srl: Consultancy aims to wave goodbye to lengthy life-cycle analysis

2011-12-09T00:30:00.000-08:00

www.isramart.com

Isra-Mart news:

A new footprinting service piloted by Tesco and PepsiCo promises to accelerate impact calculations for businesses looking to cut emissions from their supply chain and products.

The new Product Portfolio Footprinting service has been launched by consultancy Best Foot Forward to help companies with substantive products ranges avoid lengthy lifecycle analyses on each one.

By compiling materials and emissions data about each component, which can then be applied to different product ranges and combined with sales data, Best Foot Forward said it analysed over 300 Crown Paints products in less than 10 weeks.

"Our business now has detailed footprints for all of our products manufactured in the UK, and we've used the findings to set sustainability targets for the business going forward," said Mark Lloyd, sustainability manager at Crown Paints. "Crown Paints is working with our supply chain to target high carbon impacts, to see how we can reduce our final product footprints."

Major companies are increasingly aware of the cost-saving opportunities asspciated with reducing carbon emissiosn across their supply chain.

Research by published by the Carbon Trust in September found around 40 per cent of multinational companies are currently monitoring supply chain emissions, while 80 per cent of those that do not are planning to have a programme in place in the next three years.

Simon Miller, director at Best Foot Forward, said that the new product will help large businesses understand and reduce greenhouse gas emissions across their supply chains.

"Many larger businesses are looking for ways to reduce their total footprint in the most intelligent, efficient way," he said.

"It's estimated that the top 100 companies together control more than one quarter of the key resources in global supply chains. Changing what those companies do can have a huge impact."

Isra-Mart srl: Businesses urged to flick switch on £700m in efficient lighting savings

2011-12-09T00:29:00.000-08:00

www.isramart.com

Isra-Mart news:

UK businesses and the public sector could cut their annual energy bills by up to £700m a year by switching to energy efficient lighting technologies, according to a report from the Carbon Trust.

The company yesterday launched a new guide detailing how embracing lighting best practices, such as installing efficient LED bulbs or automated sensor-based controls, can help the average organisation reduce energy bills by a fifth.

It added that companies with significant lighting requirements such as supermarkets, retailers and large office environments could cut electricity use by between 30 per cent and 50 per cent by installing efficient lighting technologies.

Some firms are reluctant to invest in energy efficient lighting technologies on the grounds that they can cost more than traditional lighting systems.

However, the report also argues that with lighting accounting for around a fifth of all the electricity used in the UK, even zero cost measures such as encouraging staff to switch lights off when they are not in use can deliver savings equivalent to around £350m or 2.2 million tonnes of CO2 a year.

"As the Christmas lights go on and the days grow shorter, I'm urging businesses to think about the huge savings they could make by boosting the efficiency of their lighting systems," said Richard Rugg, director of Carbon Trust Programmes.

"From simple reminders to turn the lights off, to installing the latest in lighting technology, there's £700m and 4.4 million tonnes in CO2 emissions to be saved by UK businesses making lighting more efficient. The guide demonstrates how businesses can dramatically reduce both their carbon output and their bottom line."

The free guide contains a wide range of recommendations designed to help companies reduce their lighting bills, including proposals to install modern lighting controls, ensure fittings are positioned to reduce the number of bulbs you need, and switch to energy efficient technologies that can deliver rapid rates of return.

Isra-Mart srl: Report: Small subsidy increase could save solar industry

2011-12-09T00:28:00.000-08:00

www.isramart.com

Isra-Mart srl news:
Adding as little as £6.50 to annual power bills could ensure electricity from solar panels in the UK drops to the grid average cost within a few years, one of the country's leading solar installation companies has claimed.

Research by Engensa finds that a modest increase on the £2 currently tacked on to bills could build a viable industry and protect the 25,000 jobs the sector currently supports.

Toby Ferenczi, the company's chief technology officer, told BusinessGreen that "£6.50-£8 per household per year would get us to grid parity", allowing the industry to grow at a sustainable rate until the point at which solar energy costs the same as conventional energy.

The estimate contrasts sharply with the £120 per household the Department of Energy and Climate Change (DECC) estimates is spent on nuclear decommissioning by the government.

"What we're asking for is nowhere near £120 - it's significantly less than £10 per household per year," Ferenczi added. "With that we can create a solar industry that doesn't require subsidy."

The government will cut support to solar photovoltaic (PV) panels by half for installations completed after Monday, arguing that without swift and deep cuts to incentives the feed-in tariff subsidy would add £55 a year to bills by 2020, a figure climate minister Greg Barker has since raised to £80.

These figures have been hotly disputed by the industry, who have argued the government's estimates are based on the government taking no action to reduce feed-in tariffs, when the industry is in fact calling for deep cuts to be imposed, but only after April.

Ferenczi called DECC's £80 estimate a "nonsense figure" taken from a hypothetical and extreme scenario, adding that it was indicative of how little those at the heart of government knew about the actual cost of renewable energy subsidies.

A survey to be published by Engensa later today finds that while 77 per cent of the 858 respondents supported the idea of producing energy from renewable sources rather than fossil fuels in the next five to 10 years, just six per cent knew feed-in tariff subsidies added just £2 to bills.

"The attitude towards renewable energy amongst the general public is much more positive than it has been portrayed in the media," Ferenczi said. "There's a lot of politicking going around.

"The green agenda is seen as something that comes from the left and as a hindrance to businesses. Actually, there's a huge amount of opportunity in green energy - the carbon plan [published last week] showed a "do nothing" strategy is actually more expensive than green agenda."

Some solar companies are bracing themselves for layoffs as a result of the cuts, and Ferenczi admits the climate is now much more hostile, both for sales of solar systems and financing models where the company installs the kit for free and keeps the feed-in tariff payments.

"The cuts have caused huge disruption to the way we operate on the investment side," he said. "We expect to see significantly reduced demand in paid-for installations, although this may pick up slowly in the New Year.

"We expect to be able to offer free solar post December 12th, but it will be extremely challenging."

The government has consistently maintained its proposed cuts are necessary to stop the feed-in tariff exceeding its spending cap before next April.

Isra-Mart srl: Supermarkets struggle to cut supply chain waste

2011-12-09T00:27:00.000-08:00

www.isramart.com

Supermarkets are struggling to meet targets to curb the carbon impact of their supply chain, despite making excellent progress in slimming down packaging and encouraging customers to throw away less food, according to a government-backed report.

The Waste and Resources Action Programme (WRAP) yesterday published an update on the second phase of the so-called Courtauld Commitment - a series of voluntary waste reduction pledges from the supermarket industry, including a commitment to reduce the carbon footprint of grocery packaging by 10 per cent on 2009 levels by 2012.

The update showed that since setting the targets last year, retailers have cut the carbon impact of packaging by 5.1 per cent, making significant progress towards their target.

It also confirmed the carbon impact of household food and drink waste was slashed three per cent, against a four per cent reduction target.

However, the report showed that the industry is struggling to meet a new goal covering supply chain emissions, having reduced food, drink and packaging waste in the UK supply chain by just 0.4 per cent, against a five per cent reduction target.

WRAP attributed the relatively small reduction to the fact that it is a new area for signatories, adding that a 1.4 per cent increase in sales volumes would have also made it harder to reduce overall emissions.

The British Retail Consortium (BRC) said retailers had spent the last year laying the ground work for greater supply chain efficiency gains in future.

"Waste within the supply chain is a particular challenge because preventing it can require investment and for businesses to introduce new processes. The ground-work is being done which will lead to bigger improvements in the near future," said BRC head of environment Bob Gordon.

The report did also show that the retail supply chain made strides in diverting waste away from landfill towards recovery and recycling routes. However, that does not directly contribute to the Courtauld target which aims to drive waste prevention behaviour.

Defra Minister for Environment Lord Taylor urged the industry to step up its efforts to cut supply chain waste.

"These results show excellent progress towards cutting down on food and packaging waste that are part of our ambition to move to a zero waste economy," he said.

"However, there is no room for complacency and it's clear that more work needs to be done in meeting our new target for reducing waste in the supply chain. I will be pushing for industry to build on their efforts to make sure we meet these goals over the next two years."

Isra-Mart srl: Canada reiterates it will withdraw from Kyoto, as China breathes fresh hope into talks

2011-12-09T00:26:00.002-08:00

www.isramart.com

Canada has confirmed that it will withdraw from the Kyoto Protocol by the end of next year, although the move looks set to be overshadowed by fresh reports that China could agree to binding emission reduction targets as part of a new treaty.

According to reports from Canadian news channel CTV, environment minister Peter Kent told a teleconference earlier today that Canada will not agree to a second commitment period for the Kyoto Protocol that would run beyond 2013.

The move was widely expected, following several years during which Canada has consistently signalled that it will not sign up to an extension of the treaty.

However, the confirmation will still come as a blow as negotiators attempt to end the deadlock between developing and industrialised nations over the future of the treaty.

The EU had hoped to broker a compromise, outlining a new roadmap late last week that would see the Kyoto Protocol extended, while developing countries that do not face emissions targets under Kyoto would sign up to a parallel treaty featuring new binding emissions reduction obligations.

The Canadian government has repeatedly argued that an alternative framework for reducing global emissions is needed, but the move is likely to spark fierce criticism from developing nations already angry at Canada after reports last week suggested that the country is planning to ditch the Kyoto Treaty later this month.

It remains unclear whether Canada will honour its obligations under the treaty until the first phase ends in 2012 or pull out of the agreement earlier.

The move will also spark speculation as to whether Japan and Russia, which have also said that they will not sign up to a second Kyoto commitment period, will formally reject any proposals to extend the treaty.

In contrast, observers expressed hopes earlier in the day that a breakthrough could be reached after Chinese diplomats indicated that the country could sign up to binding emissions targets if the Kyoto Protocol is extended.

China's Xie Zhenhua told reporters that the country has a series of conditions, which if met will allow it to sign up to binding emissions targets, including the extension of the Kyoto Protocol for industrialised nations, and clear commitments on climate aid and technology transfer mechanisms.

Christiana Figueres, head of the UN climate change secretariat, said that the move sparked an "excited buzz" around the summit, while British Energy and Climate Change Secretary Chris Huhne was quoted by Bloomberg as saying that the move could represent a major breakthrough for the long running talks.

"If China moves, we'll be able to see the signing of the Kyoto Protocol, we'll be able to get the rest of the world committed to a roadmap which gets us to a single legally binding overarching agreement, so China's position is absolutely critical," he said.

The move was given a cautious welcome by US lead negotiator Todd Stern, who told reporters that he will meet Xie tomorrow to discuss China's conditions.

However, he insisted that, if a new parallel treaty is to be agreed alongside an extension of the Kyoto Protocol, as the EU roadmap suggests, "all the major players" are going to have to be involved.

Concerns are mounting that India could quickly replace China as one of the main barriers to a deal, after senior Indian negotiators signalled that they will not agree to binding emissions targets.

Isra-Mart srl: High Court rejects legal action over solar incentive cuts

2011-12-09T00:26:00.001-08:00

www.isramart.com

The High Court has refused to proceed with legal action by Friends of the Earth and two solar power firms seeking to block government plans to slash feed-in tariffs for installations completed after next Monday.

Friends of the Earth said today that it will appeal against the High Court's decision alongside solar panel installers Solarcentury and HomeSun.

The next hearing is scheduled for 15 December, two days after the proposed cut off for solar installations to receive the current rate of incentives.

The three parties separately announced plans to take legal action against the government after the decision on 31 October to slash feed-in tariffs by more than half for any project completed after 12 December.

The challenges centre on the 12 December deadline, which comes two weeks before the consultation officially ends on 23 December. Friends of the Earth believes that the timeline is unlawful and has already led to unfinished or planned projects being abandoned.

Some 4,500 Carillion employees learned last week that they could face redundancy as a direct result of the government's proposals.

Laura Gyte, a solicitor for Friends of the Earth, told BusinessGreen that the case was rejected on 25 November after the court ruled that the lobby group's argument did not warrant a full hearing.

"We were disappointed because we think we've got a strong case," she said.

Friends of the Earth executive director Andy Atkins said that he hopes the High Court will reverse its decision at the next hearing next week.

"We've also asked the High Court to cap our potential costs. International rules say this should be allowed in public interest cases on the environment. We can't afford to bring a challenge if we face unlimited liability for the other side's legal fees," he said.

A coalition of solar firms and green groups campaigning against the cuts have also revealed plans to hold another day of action, following a protest last month which saw hundreds of people march on Westminister and lobby their MPs.

The Cut Don't Kill campaign posted a note on its web site today, proposing to host a protest on 13 December, one day after the proposed cut-off date for the higher tariffs.

The protest will take place in London or as a series of regional demonstrations, depending on industry interest in attending and helping to organise the event.

"We want to use the day after the feed-in tariff deadline to make our voices heard again about the devastation this government is wreaking on a growing green industry," said the site.

Isra-Mart srl: Met Office report warns of soaring climate risks

2011-12-09T00:25:00.001-08:00

www.isramart.com

The Met Office's Hadley Centre has today added to the flurry of recent reports warning of potentially catastrophic climate impacts if urgent action is not taken to try to limit global average temperature rises to 2º Centigrade.

The new report, which was commissioned by energy and climate change secretary Chris Huhne, and unveiled today on the sidelines of the Durban Summit, echoes a host of recent scientific studies in warning that the world is currently on track to realise a "worst-case scenario" that would see average temperatures rise by between three and five degrees by the end of the century.

"This report highlights some of the very real dangers we face if we don't limit emissions to combat the rise in global temperature," said Huhne. "Life for millions of people could change forever, with water and food supplies being placed in jeopardy and homes and livelihoods under threat. This makes the challenge of reducing emissions ever-more urgent."

The report, entitled Climate: observations, projections and impacts, brings together the latest peer-reviewed climate science from 24 different countries, concluding that each has seen significant warming since the 1960s, with extreme hot weather becoming more common and extreme cold weather becoming less frequent.

The Hadley Centre applied the same methodology for assessing climatic predictions for each of the 24 countries and found that most face significant climate-related risks.

For example, all the countries studied expect to see an increased risk of coastal flooding as a result of sea level rises, while a majority expect to see a significant increase in river flooding.

The report also finds that changing rain and temperature patterns will result in an increased incidence of drought in some areas that will have a detrimental effect on food production.

As a result, Bangladesh, Brazil, China, Egypt, India, Russia, Turkey and the US are all expected to experience declines in food production, although some other regions such as Germany and Japan could see production rise as a result of higher temperatures.

"Projections of climate change impacts often fall in a wide range, which can include both beneficial and detrimental outcomes," said Richard Jones, manager of regional climate change research at the Met Office Hadley Centre. "This study has begun the important work of applying a globally consistent approach to assess the impacts of climate change at the national level."

A spokesman for the Met Office told BusinessGreen that while the impacts noted in the report provided a mix of positive and negative climatic changes, there were more negative than positive changes recorded in the countries studied.

"What this report shows very clearly is that climate change is happening, mankind has caused it, and we are seeing more extremes of temperature," he said. "We can see changes have already happened and businesses would be advised to adapt to those changes as a bare minimum."

The government said the paper represented a pilot study that is likely to be followed by further research into country-level climate impacts.

The findings are likely to further step up pressure on businesses and governments to develop climate change adaptation measures and increase investment in more climate-resilient infrastructure.

Earlier this year, the Department of Environment, Food and Rural Affairs released a tool designed to help firms assess how they will be impacted by climate change and a spokesman today urged businesses to consider taking action to adapt to inevitable climate change impacts.

"It's very important that we continue to cut emissions, but we've also got to face up to the fact that what happened in the past means some climate change is inevitable," he said. "We need to adapt to these changes now, so that we can protect ourselves and our economy from the risks we'll face in the future.‪

"In January Defra will publish the Climate Change Risk Assessment which will provide the UK with the most comprehensive picture of the risks we face of any nation in the world, and give us the evidence we need to develop a full action plan to meet the challenge of climate change."

The Met Office report also comes on the same day as a new study from the Australia-based Global Carbon Project, which warned greenhouse gas emissions will rise three per cent this year, confirming that emissions are climbing again following a short recession-induced blip during 2008 and 2009.

Isra-Mart srl: Renovalia and First Reserve sign $150m wind power venture

2011-12-09T00:24:00.000-08:00

www.isramart.com

First Reserve Corporation and Renovalia Energy have signed a $150m deal to create a wind energy joint venture, marking a major boost for Renovalia's plans to establish itself as a leading green energy provider.

Private equity and infrastructure investor First Reserve confirmed plans today to establish a new company with Renovalia, dubbed Renovalia Reserve, which will seek to own and operate nearly 600MW of wind farms in Europe and North America.

The 559MW portfolio will comprise Renovalia's existing 259MW of wind farms in Spain and Hungary, and more than 300MW in the pipeline in Canada, Romania and Spain.

Family-owned Renovalia has more than 570MW of green energy projects in operation and under construction, consisting of 10 wind farms, six photovoltaic solar farms, one mini-hydro plant and one thermal solar plant.

Juan Domingo Ortega, Renovalia Energy chairman, said that First Reserve's investment will take the company a major step closer to achieving its goal of becoming a global player in the renewable energy market.

The news will also be welcomed by the renewable energy industry, which often cites the lack of project finance as a major barrier to growth.

First Reserve, one of the world's largest energy-focused private equity investors, said that it was attracted to Renovalia Energy by its experience in the sector, wide-ranging portfolio, strong financial track record and growth potential.

During the first nine months of 2011, Renovalia Energy's pre tax earnings grew by 27.5 per cent compared to the same period last year. Turnover stood at €140m by the end of the third quarter, compared to €93m in the same period in 2010.

John Barry, director of First Reserve, told the Financial Times that the company is seeking to invest in further projects in North America and Europe.

Isra-Mart srl: Durban inches towards deal to drive CCS investment

2011-12-09T00:23:00.002-08:00

www.isramart.com

The Durban Summit could yet result in a deal that would accelerate investment for carbon capture and storage (CCS) projects in developing countries, with one industry expert putting the chances of an agreement at around 90 per cent.

Over the weekend, the working group tasked with negotiating the potential inclusion of CCS projects in the UN-backed Clean Development Mechanism (CDM) carbon offsetting scheme approved a package of measures that will allow the new proposals to move from the negotiations' Subsidiary Body for Scientific and Technological Advice through to the full talks.

The move means that the proposals to include CCS in the CDM, which would allow projects in developing countries to sell carbon credits to help bolster the financial case for such investments, could be finalised as "clear recommendations" by the end of the week.

Writing on the Global CCS Institute's blog, Mark Bonner, principal manager of the policy, legal and regulatory team at the Institute, said that an agreement is "90 per cent there in terms of a likely positive outcome".

However, he acknowledged that two "make or break" issues still need resolving in the final week of the talks, based on who should be liable for CDM-backed CCS projects and how local environmental risks should be managed.

Brazil and the EU are said to be at loggerheads over whether the country hosting a CCS project or the country purchasing carbon offset credits from a project should be liable for the project.

Similarly, there are also differences between countries over how many carbon credits projects should hold in reserve to cover any leak of carbon emissions from underground formations during the life of a CCS project.

However, Bonner said that he remains "mildly optimistic" that an agreement can be reached this week, despite ongoing fears that a failure to break the deadlock over the future of the Kyoto Protocol could remove the legal foundations for the CDM scheme.

In other news from the Durban Summit, the US government-backed Overseas Private Investment Corporation (OPIC) announced a new $10m loan to support the rollout of clean energy projects, such as clean stoves, water purifiers and solar lighting systems.

OPIC said that it has issued the loan to Seattle-based MicroEnergy Credits, which specialises in carbon credit programmes that provide clean energy products to low-income micro-borrowers around the world.

"Making clean energy technology available to individual micro-borrowers and micro-entrepreneurs on a widespread basis is an important - and often overlooked - part of the international effort to reverse climate change," said OPIC president and chief executive Elizabeth Littlefield.

"This landmark project has the potential to transform low-income populations' access to affordable clean energy products, and in the process improve their health and prospects for economic growth. Partnering with MicroEnergy Credits to deliver innovative financing through the use of carbon credits only makes the project more remarkable."

The project is part of a growing trend that has seen investors attempt to generate carbon offset credits by supporting development projects that also help curb emissions, such as initiatives to roll out cleaner and more efficient cooking stoves or solar lighting systems for off-grid families.

The UN has also been working to streamline the CDM to make it easier for such projects to issue carbon credits that have been approved by the UN-backed offset market.

Isra-Mart srl: India and US accused of blocking roadmap for Durban deal

2011-12-09T00:22:00.001-08:00

www.isramart.com

Isra-Mart srl news:

Ministers will begin gathering in Durban today, and observers have again warned that long running talks to reach an international agreement on climate change are at risk of collapse.

An intensive first week of negotiations culminated on Friday with the release of a new 'roadmap' from the EU, outlining plans to extend the Kyoto Protocol and agree a parallel legally binding treaty that will set emissions reductions targets for all countries.

The EU is proposing that a new treaty be agreed by 2015 and enacted by 2020, delivering binding commitments from all countries to curb emissions.

Significantly, despite reservations among many developing nations that they could end up facing demanding emission reduction targets, the plan has secured high-profile support from the group of 48 Least Developed Countries (LDCs) and the 42-strong Alliance of Small Island States (AOSIS).

Writing on Twitter this morning, EU climate change commissioner Connie Hedegaard said: "Good news from Durban. LDCs & AOSIS think along the same lines as EU on the roadmap. The world doesn't need more time to reflect, but decisions."

China's lead negotiator, Xie Zhenhua, also signalled late last week that the country could in principle sign up to a legally binding deal, telling environmental groups that China is "open to the process" of agreeing a new binding treaty if industrialised countries extend the Kyoto Protocol and make good on other commitments such as climate aid pledges.

A senior EU official also told The Guardian that Indonesia, South Africa and Brazil are "sympathetic" to the EU roadmap alongside China.

However, he added that India has so far completely rejected any proposals that would impose legally binding emission reduction targets, amid fears that such a move could undermine its rapid economic development.

Moreover, the US delegation has also expressed scepticism over the EU plan. One anonymous official told reporters that the US will not sign up to any roadmap without seeing more detail on what the eventual treaty will look like.

He also cast doubt on China's willingness to agree to legally binding emissions reduction obligations.

The current state of play leaves ministers with the daunting task of mapping out a compromise agreement when China and other emerging economies will not countenance a new parallel treaty unless the Kyoto Protocol is first extended, while Japan, Russia and Canada maintain that they will not agree to a second Kyoto commitment period.

Meanwhile, India is refusing to consider a new binding treaty under any circumstances, and the US is continuing to stall the talks on several fronts amid fears that it will be unable to get any ambitious agreement through Congress.

The first week also saw little progress on the controversial plans for a new $100bn a year Green Fund, after the US and Saudi Arabia were reported to be resisting recommendations for the formation of the fund.

In related news, former head of the UN climate change secretariat Yvo de Boer offered a damning assessment of the current state of the talks, warning that the negotiations are failing to make sufficient progress.

Speaking to Associated Press in his capacity as an advisor to consultancy firm KPMG, the former Dutch diplomat said that he is "deeply concerned about where [the talks are] going, or rather where it's not going, about the lack of progress".

He added that he is increasingly sceptical that the long-running negotiations can deliver the scale of change necessary to build a global low carbon economy.

"I do not see the negotiating process being able to rise to that challenge, being capable of delivering on that," he told the news agency. "I believe the sincerity on the part of world leaders is there, but it's almost as though they do not have control of the process that's supposed to take them there."

Meanwhile, six Greenpeace protesters were arrested earlier today after staging a protest at a global business summit being held alongside the Durban talks.

The group broke into a Durban hotel and hung a banner from the building reading 'Listen to the People, not the Polluters', protesting at the involvement of carbon intensive firms at the 'Global Business Day'.

Isra-Mart srl: Industrial emissions rise after recessionary blip

2011-12-09T00:21:00.001-08:00

www.isramart.com

Worldwide carbon emissions from industry rose three per cent this year fuelled by strong growth in a handful of countries, a study released today shows.

The paper by the Australian-based Global Carbon Project (GCP) says the rise follows a six per cent increase in 2010 and concludes that the slowdown in emissions experienced during 2008 and 2009 as a result of the global recession has not marked the start of a long-term downward trend as had been hoped.

In a warning that will make awkward reading for countries sitting down to the second week of negotiations at the Durban climate summit, the authors argue that the world is seeing a return to the carbon intense economic models that dominated the late 20th century.

"The global financial crisis was an opportunity to move the global economy away from a high-emissions trajectory. Our results provide no indication of this happening," they say in the study, published in the journal Nature Climate Change.

"The return to growth after the [global financial crisis] has only continued the deterioration in the fossil fuel carbon intensity trend since 2000."

Despite long-term green stimulus plans proposed by China, South Korea, and the US, carbon intensity, a measure of carbon emissions per unit of GDP, is on the up.

For example, analysis of data from the US government, the United Nations, and oil giant BP shows global emissions from burning fossil fuels and cement production grew 5.9 per cent in 2010, compared with a 1.4 per cent drop the previous year.

Emerging economies are leading the growth, with Brazil's emissions increasing 11.6 per cent over 2010, China's up 10.4 per cent, India's rising 9.4 per cent, and South Korean emissions climbing 9.2 per cent.

However, in absolute terms, increases in the developed world was not far behind. According to the report, the US saw emissions increase 4.1 per cent, while Russian emissions climbed 5.8 per cent.

China still leads the way in terms of emissions growth - its emissions having doubled between 2002 and 2010.

The study comes after UN body the World Meteorological Organisation reported greenhouse gases reached their highest ever level last year.

Isra-Mart srl: Concerns mount over Green Investment Bank

2011-12-09T00:19:00.000-08:00

www.isramart.com

The government's Green Investment Bank (GIB) has had its actions so limited that it will not be able to support the coalition's much-vaunted Green Deal to refurbish millions of homes to save energy.

The details have emerged in a draft document drawn up by the Treasury and the Department for Business, Innovation and Skills (BIS), and presented to the advisory board at their most recent meeting.

The proposals, seen by the Guardian, have also caused consternation because the government is proposing to help set strategic priorities, a move one critic said opened up the risk of "pork-barrel politics" if ministers insisted on pushing ahead with certain schemes to curry favour with voters ahead of an election.

At worst, some people close to the talks fear the government could fail to get state aid approval from the European commission to provide funding for the bank because it will be seen as too close to ministers.

There is also concern about the increasingly "negative" language, including a downgrading of the funds being offered by the Treasury from £3bn to "up to £3bn".

Another recommendation that is likely to cause controversy is that the bank would be instructed to invest on commercial terms, and to make a profit every year, raising questions about whether it will be able to invest in important areas that are currently too risky for private lenders.

Ben Caldecott, head of European policy at the low-carbon investment advisers Climate Change Capital, said: "If it's only ever going to act as an investor of last-resort investing on market terms, and if it's going to avoid passing-through its lower cost of capital [from government], that could undermine its ability to deliver its objectives."

The draft paper, intended for the European commission, which must approve the bank's public funding, has emerged following a torrid week for the environmental movement and businesses after the chancellor used his autumn statement on Tuesday to announce green regulations would be reviewed to clear the way for development and economic growth.

In answer to criticism of the coalition's apparent U-turn on its early promise to be the "greenest government ever", George Osborne later defended his record, telling MPs: "I am the chancellor who funded the first ever Green Investment Bank."

The same week, Chris Huhne, the climate secretary, admitted to MPs in departmental questions that the date at which the bank might start borrowing money had been delayed from 2015 to 2016 at the earliest. There is also growing concern about the indebted government's willingness to guarantee any bonds or loans, which private investors say will make it much harder for the GIB to offer the low-cost finance needed by some industries and new technologies.

Caroline Flint, Labour's shadow energy and climate secretary, said: "The Green Investment Bank - a plan Labour set out in government - is vital for creating jobs and supporting growth in the green economy. But, for all of George Osborne's empty boasts, we [have] found out that because the government is set to borrow a staggering £158bn more than they planned a year ago, we won't have a proper Green Investment Bank, with full borrowing powers, until 2016 at the earliest. Day by day, David Cameron's promise to run the greenest government ever is falling apart."

Other details in the draft proposals, discussed by the government's advisory panel at their November meeting, include the expected cost of setting up the bank is £82m. Assuming the full £3bn is paid, the document suggests the bank will get £865m in 2012-13, £1bn in 2013-14, and £1.225bn in 2014-15.

The bank will initially be asked to spend at least 80 per cent of its funds on four sectors: offshore wind (which could take approximately half the funds available), waste processing and recycling, energy from waste generation, and non-domestic energy efficiency. In future it could also fund home energy efficiency schemes such as the Green Deal.

Ministers would appoint the bank's chairman and chief executive, who would then help appoint of the rest of the board. The bank would be expected to make a 3.5 per cent average return on investment over five years - below what is currently the most risk-proof returns - and make a profit every year, though this last point could be negotiated with the Treasury, it says.

Another proposal that has caused concern is that the bank cannot invest more than five per cent of its funds in one scheme, leading to concerns it cannot take a major lead in developing offshore windfarms and other expensive schemes in the early days to give private investors more confidence in the sector.

A Department for Business spokeswoman said she would not comment on a leaked document. But she said the Green Bank would "drive growth and keep the UK ahead of the game in the transition to a low carbon economy".

She added: "Government investment will mobilise significant private finance, providing in the region of £18bn of additional investment in green infrastructure."

Isra-Mart srl: Point Carbon issues 'very gloomy' forecast for EU carbon prices

2011-12-09T00:18:00.001-08:00

www.isramart.com

Reuters Point Carbon has slashed its forecast for the price of carbon to just €12 per tonne during phase three of the EU's Emissions Trading Scheme (EU ETS) as a result of the sovereign debt crisis.

The carbon market analyst issued a statement late last week predicting the average EU Allowance (EUA) price will be €12/t from 2013 to 2020, €10/t less than its July 2011 forecast.

Anne Kat Brevik, commercial manager at Point Carbon, said the price would be lower than previously thought because of the impact of the global economic crisis.

"Not only do we see industrial output and associated emissions down – we predict by some 700Mt for the period up to 2020 – but we also see governments recoiling from tougher climate action in the wake of domestic economic hardship," she said.

The new prediction is based on the EU meeting a target to cut emissions by 20 per cent, because member states have so far failed to agree to aim for 25 per cent emissions cuts.

Point Carbon now believes the most depressed price levels will be seen in the 2013-2015 period when the average price of EUAs could drop to as little as €10/t, before rising again in the 2018-2020 period, reaching €16/t in 2020.

The new prediction is barely a third of Point Carbon's forecast this time last year. In November 2010, it said EUAs would cost €30/t in 2016. But that figure was revised down to €22/t in July 2011 because renewable energy was being deployed earlier and in greater quantities than previously assumed.

However, despite the "very gloomy" outlook, Marcus Ferdinand, senior carbon analyst at Point Carbon, said prices were unlikely to fall in the short term because the power and heat sectors still required credits for future power sales and because a shift to a 25 per cent emissions reduction target remained a possibility.

"We assume this inherent uncertainty will deter the industry sector from selling off its entire length," he said.

However, he warned there could be a further substantial drop in EUA prices if the current debt crisis does lead to financial markets drying up. This would lead to pronounced industrial selling by industry trying to monetise its EUA length to boost cashflow.

Isra-Mart srl: CloudApps launches Sustainability Space to get green firms talking

2011-12-09T00:16:00.000-08:00

www.isramart.com

Isra-Mart news:

Sustainability software provider CloudApps has launched a free networking site to help firms across the country share best practices for reducing their environmental impact.

As revealed by BusinessGreen in September, CloudApps has created the Sustainability Space, which was launched late last week, offering more than 100 ideas to help green businesses.

CloudApps hopes these initial ideas will be reviewed by users, creating a platform which allows businesses to share and improve green initiatives.

The company also launched its Winter '12 edition of its Sustainability Suite late last week to help firms better measure the economic, social and environmental impacts of their sustainability programmes.

Unlike previous versions, Winter '12 allows users to share their environmental goals with the wider workforce.

It also enables businesses to forecast the impact that sustainability measures are likely to have on their performance.

"Our customers are innovators and they expect their suppliers to be leaders. The new CloudApps Winter '12 release is a massive step forward in sustainability, covering more sources, more accurately than ever," said Peter Grant, CEO of CloudApps.

"Combined with access to the very latest in sustainability thinking available for free via Sustainability-Space, it provides the 'How?' to Sustainability's 'What?'. With these advantages there simply is no excuse for organisations to miss out on the cost and brand advantages early adopters are clearly experiencing from sustainability."

Isra-Mart srl: EPA to release power plant emissions rules next year

2011-11-18T08:51:00.000-08:00

www.isramart.com

Rules to curb emissions from US power plants could finally be proposed next year after being delayed twice during the course of this year.

The performance standards, which could also force large companies to invest in low-carbon technologies, are likely to be announced in 2012, Environmental Protection Agency (EPA) administrator Lisa Jackson says in a forthcoming TV interview seen by news agency Reuters.

"I can't tell you what the regulations say right now, but what we are planning to do is release them early next calendar year," she says.

The rules for power plants had first been expected in July, but were postponed by the EPA, which said it needed more time to consult with businesses, states and green groups. Another mooted deadline in September was also pushed back.

The news that the regulations should appear next year will come as a relief to many businesses and green campaigners who have been disheartened, not only by the previous delays but also by President Obama's decision to postpone a major rule on smog-forming pollutants until 2013.

The EPA has also come under sustained attack from Republicans determined to slash the agency's funding and axe a raft of environmental regulations.

Isra-Mart srl: Mayor Boris urges London firms to stamp out waste

2011-11-18T08:50:00.000-08:00

www.isramart.com

Mayor of London Boris Johnson has urged firms to boost their use of recycling and green energy technologies in an ambitious new waste management strategy that aims to save the capital £77m a year.

Johnson today launched a series of plans to tackle municipal and business waste, including a target to achieve 70 per cent reuse, recycling and composting of commercial and industrial waste by 2020.

The strategies set out how London could save £77m a year and create 1,260 jobs by boosting recycling and opting for green technologies, such as anaerobic digestion.

Other key targets include: no household waste going to landfill by 2025; and recycling or composting at least 45 per cent of London rubbish by 2015, rising to 60 per cent by 2031.

It also aims to reuse, recycle or compost 95 per cent of construction demolition and excavation waste by 2020, and cut London's greenhouse gas emissions through waste management by 545,000 tonnes of CO2 equivalent in 2015, rising to one million tonnes of CO2 equivalent in 2031.

The mayor wants to increase the use of energy from waste technology, aiming to process 40 per cent of London's municipal waste in this way, after recycling or composting targets are achieved, by 2031.

Launching the plan today at an event in London's Trafalgar Square, Johnson also asked businesses to pledge to minimise the amount of food sent to landfill, already agreed by Waitrose, the New Covent Garden Market, Cafe Spice, Wahaca, Innocent Drinks, and Abel and Cole.

Using a so-called "food waste pyramid" businesses would avoid buying surplus food, and redistribute any unwanted food to charities such as FareShare and FoodCycle. Thirdly, food unfit for human consumption is fed to livestock or disposed through composting and processes such as anaerobic digestion.

"Throwing away mountains of perfectly edible food is crazy at a time when Londoners are feeling the pinch," said Johnson.

"I urge businesses and Londoners to get on board to reduce waste and help save millions for the capital's economy. It is my vision to make London a zero-waste city, which is why I am working closely with London's boroughs with the aim of creating the capital's very first zero-waste ward to show the rest of the city how it can be done."

Rosie Boycott, chair of the London Food Board, said reducing food waste could have a significant impact on the capital's environment, by cutting emissions and reducing the amount of edible produce sent to landfill.

"The mayor has set out ambitious targets to cut waste, and if we are to achieve them we need businesses and residents in the capital to sign up to this pledge and work together to stamp out avoidable food waste," she said.

Isra-Mart srl: Global firms fail to account for looming water risk

2011-11-18T08:48:00.002-08:00

www.isramart.com

The corporate response to climate change is significantly more advanced than efforts to address water-related risks, despite the fact that flooding and drought are likely to have a major near-term impact on many firms' operations.

That is the conclusion of a major new report from the Carbon Disclosure Project (CDP), which found that only 57 per cent of 190 listed companies have board-level water strategies in place. Moreover, 40 per cent of the Global 500 companies that were approached to provide information on their water management strategies by the investor-backed group failed to respond.

In contrast, the most recent CDP survey on carbon management strategies found that 94 per cent of companies now have board-level oversight of climate change related issues.

"Some of the largest multinational companies have experienced the detrimental effects that water can have on their bottom line," said CDP chief executive Paul Simpson. "We need to see more companies understand that water is a critical issue, requiring greater board-level attention than it currently receives. Those corporations that navigate the challenges effectively will be able to profit from the significant opportunities that result from a robust water strategy."

The survey found that 59 per cent of respondents had already identified water-related risks such as flooding, scarcity and reputational damage.

In addition, it revealed that many firms accept water-related risks will be experienced in the near term, with 64 per cent reporting risks to their direct operations, which they will have to face between now and 2016, and 66 per cent identifying similar risks impacting their supply chain over the same period.

Moreover, 38 per cent of respondents said that water-related issues such as flooding or scarcity had already had a negative impact on their business.

Nick Main, leader for global sustainability at Deloitte Touche Tohmatsu Limited (DTTL), which sponsored the CDP water disclosure project, said the survey revealed encouraging improvements in water management at many firms.

"It is promising to see that a growing number of companies are recognising the importance of having strategies that respond to the increasing risks and opportunities arising from dependencies on this increasingly vulnerable resource," he said. "There is a need for broader action by companies to address water stewardship, both at the enterprise and product levels."

Isra-Mart SRL: Green policy uncertainty sees UK slip down energy sustainability rankings

2011-11-18T08:48:00.001-08:00

www.isramart.com

Uncertainty surrounding the government's electricity market reform (EMR) programme is detering low-carbon investment and damaging the UK's ability to develop a stable, affordable and environmentally sustainable energy system.

That is the conclusion of a major new report from the influential World Energy Council (WEC), which confirms the UK has slipped from 8th to 14th place in the latest Energy Sustainability Index – a fall of six places since last year.

The annual review of the energy investment climate in 92 countries is based on governments' approaches to tackling what the WEC describes as the "energy trilemma" of supply security, access to energy and environmental impact.

According to the index, the UK's performance relative to other countries has declined in all three areas in the past year, most notably dropping from 22nd to 58th in terms of energy security, behind countries such as Albania, Nigeria and Tanzania.

Speaking on the sidelines of the launch event for the index this morning, Joan MacNaughton, executive chair of WEC's policy assessment group, told BusinessGreen the UK's drop in the rankings was the result of a lack of diversity in power generation as well as regulatory uncertainty.

"The headline of the [EMR] proposals is known, but the detail of how they're going to work is not known," she said. "I think that detail needs to be filled in and the credibility of the execution of the policies needs to be built to encourage people to invest."

The flagship EMR package, which includes subsidies for green energy, a carbon floor price, and emissions standards for coal plants, was announced earlier this year as part of the government's strategy to invest £200bn in upgrading the UK's power sector.

However, it is unlikely to be finalised until late 2013, which, along with recent changes to feed-in tariffs and other energy policies, could further hamper the UK's position in the 2012 rankings, MacNaughton said.

"It will be interesting to see what happens next year, because there is a lot of uncertainty at the moment in UK policy," she told BusinessGreen. "I'll be interested to see whether that has been resolved in time for next year for the UK to at least hold its position in the index."

She also warned policymakers that further steps needed to be taken urgently to create an environment that would encourage the private sector to invest the £200bn in new low-carbon energy infrastructure that the government estimates is required over the next decade.

"Policymakers need to understand that companies must make a reasonable return [if they are to invest]," she said. "Of course they want to ensure there isn't anti-competitive behaviour or... price gouging, but for longer-term sustainability you have to acknowledge the legitimacy of companies making profits."

A Department of Energy and Climate Change (DECC) spokesman said the "key elements" of EMR would reach the statute books by spring 2013, so the first low-carbon projects can be supported under its provisions the following year. A technical update to the white paper is also due at the turn of this year.

"Our proposals to reform the electricity market will deliver the best deal for Britain and for consumers, helping get us off the hook of relying on imported oil and gas by creating a greener, cleaner and ultimately cheaper mix of electricity sources right here in the UK," he said.

"We are determined to nurture a new generation of power sources including renewables, new nuclear, and carbon capture and storage, bringing new jobs and creating new expertise in the UK workforce."

But the UK has a way to go to catch Switzerland, Sweden, France, Germany and Canada, which WEC listed as the most successful at balancing the "energy trilemma".

However, Canada's strong performance is likely to anger green groups that have been highly critical of the country's continued support for carbon-intensive tar sands projects.

Bringing up the rear of the 92 countries rated was Mongolia, followed by Libya, Trinidad and Tobago, Senegal and Botswana. The US came in 16th, with emerging superpowers China and India at 32 and 71, respectively.

Interestingly, the Philippines, which has a substantially lower GDP than many nations ranked, also has a very balanced energy system, according to WEC.

"It shows you don't have to be a rich or resource-endowed country to address the energy trilemma," said Mark Robson, partner at consultants Oliver Wyman, which helped develop the rankings. "All nations through good policy have the opportunity to provide people with stable, affordable and environmentally friendly energy."

Isra-Mart srl: Global renewable energy investment to double over next 10 years

2011-11-18T08:47:00.001-08:00

www.isramart.com

Global investment in renewable energy infrastructure will double over the next 10 years, soaring to $395bn a year by 2020, according to a major new report from Bloomberg New Energy Finance (BNEF).

The report, entitled Global Renewable Energy Market Outlook, also predicts that growth will be maintained throughout the 2020s, with annual investment in new capacity and retrofitting of existing infrastructure reaching $460bn by 2030.

Speaking to BusinessGreen, Guy Turner, director of commodity market research at BNEF, said that the surge in investment will prove a truly global phenomenon.

"One of the most startling statistics is that around 40 per cent of global power demand will come outside the EU, North America and the BRIC [Brazil, Russia, India and China] countries," he said.

"There is going to be huge growth in markets such as Indonesia, Vietnam, Thailand, the Middle East, Africa and Latin America."

The report confirms that the short-term outlook for the European renewable energy market remains bearish as a result of the tough economic climate and the scaling back of government support mechanisms, which will result in China overtaking Europe as the lead market for renewable energy asset finance in 2014.

However, it predicts that there will be no major slowdown in project construction in North America, while emerging markets such as India and Africa will see investments grow by between 10 and 18 per cent a year through to 2020.

Turner said that the prospects for the sector after 2020 are even more encouraging as improvements in solar and wind energy technologies in particular should make renewable power cost competitive with fossil fuels.

"Once you get to post-2020 you start to get growth driven by raw economics rather than policies. Solar will continue to come down in price while better blades and energy storage will make onshore wind competitive at the same time as fossil fuel prices are likely to rise," he said.

"Then you will start to see a step change in renewable energy economics where it will make more sense for people to invest in clean energy."

These predictions are borne out in the report, which estimates that global solar energy capacity will rise from 51GW currently to 1,137GW in 2030, driven by $130bn a year of investment, while the wind energy sector will see investment increase from $82bn last year to $140bn in 2020 and $206bn in 2030.

However, despite the rapid growth, the report predicts that renewable energy including hydropower will account for only 15.7 per cent of global energy by 2030.

Turner warned that, while renewables will make a significant contribution to global electricity generation, the combination of rising energy demand and challenges transitioning to renewable powered transport and heat generation will make it difficult for renewables to account for a greater proportion of global energy output.

"With electricity generation we can move to lots of renewables, but electricity only accounts for 30 per cent of global energy," he said. "There are renewable options for heat and transport, but there are major challenges to rolling them out."

Isra-Mart srl: New initiatives to keep lid on emissions

2011-11-10T08:56:00.001-08:00

www.isramart.com

New initiatives are in the pipeline to combat greenhouse gas(GHG) emissions in the transport sector. Given the "permanent and constant increase" in these emissions, "business as usual is not a realistic option," Climate Action Commissioner Connie Hedegaard told the European Parliament's Committee on Transport (TRAN), on 10 November in Brussels. Along with the inclusion of aviation in the EU's Emission Trading Scheme (ETS – see separate article), the European Commission plans to keep up pressure on the maritime sector. The commissioner spoke of an "unsustainable trend" of rising emissions in this sector. "We have to tackle this problem more ambitiously," she declared, announcing an impact assessment in 2012 in order to "see how to move forward".

New legislative proposals on CO 2 emissions in the road sector will also be presented next year. Hedegaard nevertheless finds that the automotive industry "is on the right track" since EU targets for emissions limits for new vehicles for 2015 are already being met in 2012 (between 2006 and 2010, emissions from new vehicles declined by an average of 20 g of CO 2 per km, much more than reductions in previous years). A "specific strategy" is being defined for emissions from heavy goods vehicles – 20% of road transport emissions, according to the Commission – which is set to be unveiled in 2013. Consultation of the sector is under way.

Transport is the second largest source of GHG emissions. The largest share of these emissions – 70% – comes from road transport.

Isra-Mart srl: El Al to become WheelTug launch customer

2011-11-10T08:55:00.001-08:00

www.isramart.com
WheelTug has developed tech that temporarily turns aircraft into electric hybrids, helping to save fuel, cut emissions and help keep arrivals and departures on time.
And it might soon be found in El Al Israel Airlines‘ Boeing 737s.
WheelTug announced this week a tentative deal to install an electric motor into the Israeli carrier’s Boeing 737s that will eliminate the need to use engines or a tug for both pushing back from the gate and taxiing down the runway. WheelTug conducted numerous tests of the system in 2010 at the Prague airport.
The deal with the Israeli carrier comes as the company awaits certification of technology from both American and European regulators. The company expects to begin deliveries of certified production models by 2013.
The electric drive system, which uses high-performance electric motors, are installed in the nose gear wheels of an airplane. The motors are driven by electricity generated from the plane’s auxiliary power unit, which runs when the main engines are off to keep the lights on and the plane ventilated.
Most fuel is used while the aircraft is in flight. However, switching to electric power while pushing away from the gate and taxiing down the runway does provide some savings. According to the Gibraltar-based company, a typical 737 consumes between 17 and 25 pounds of fuel per minute — or between two and three gallons a minute — while idling.
The company said fuel savings of between one to two gallons per minute can be expected with the electric drive system. That translates to about $100 savings for a typical 25-minute round trip taxi time. There are other reductions as well from not using engines to push back from the gate and maintenance savings. In all, WheelTug estimates the total savings can be $405 per flight. It’s not much compared to an airliner’s overall fuel costs. But it can add up to more than $554,000 in savings per aircraft per year.

Isra-Mart srl: Government plans will price people off flights, warns regional airport

2011-11-10T08:54:00.002-08:00

www.isramart.com
The owners of Liverpool airport have called on the Government to rethink its aviation policy, which they say will suppress demand for air travel from regional airports.

Peel Airports Limited warned that travel behaviour in the regions is price-led and said further increases in air tax would price a large proportion of passengers out of air travel.

In submitting their response to the Department for Transport's proposal for a Sustainable Framework for UK Aviation, Peel Airports said it had failed to set out a clear policy that would grow the industry's contribution to both regional and national economies. Instead, they claimed the plan would constrain growth by suppressing demand for air travel.

"Such policies are in stark contrast to the Government's stated aims of the policy, which stated "......We want to explore how to create the right conditions for regional airports to flourish"," Peel said.

They said the the proposed policy framework failed to address the fact that UK aviation pays the highest taxes in the world, with further increases in air passenger duty (APD) planned next year, when airlines will also have to pay the cost of entering into the EU Emissions Trading Scheme.

"UK airports are now far less attractive options for airline business than many of their European competitors, whose own Governments abolished their equivalent of APD. Under these latest proposals, this lack of a 'level playing field' is set to continue," they said.

Peel warned that High Speed Rail, which is viewed by the Government as a substitution for domestic and short-haul flights, will only benefit a small number ofairports and those regions to be served by faster train services, at the expense of others.

Peel Airports also questioned the validity of passenger forecasts used in developing the Government's proposals which show only minimal growth over the next 20 years, claiming they failed to recognise a number of developments across the regions, which it believes will stimulate growth in air travel.

Chief executive Craig Richmond said:"We welcome the Government's review on future aviation policy, however we have one chance to get this right, otherwise regional airports and the regions they serve will have their economies damaged for the longterm.

"The Government has stated on numerous occasions in the past that it recognises the importance of aviation for economic growth and rebalancing of the UK economy. Sadly these latest proposals contradict the desire for aviation related growth and we are calling upon the Government to implement a long-sighted aviation policy."

Isra-Mart srl: Carbon Plan May Weaken EU Airlines’ Position, Deutsche Bank Says

2011-11-10T08:54:00.001-08:00

www.isramart.com
The European plan to impose carbon limits on aviation could undermine the competitiveness of the region’s airlines as they may not be able to shift to passengers all the related costs, Deutsche Bank Research said.

The EU, which wants to lead the battle against climate change, decided in 2008 to include flights to and from the region’s airports in its emission-trading system as of 2012 after airline discharges in Europe doubled over two decades. The plan is under fire from airlines and governments outside the bloc, who claim it breaches international law.

“Fundamentally, emissions trading is an appropriate instrument to limit and/or reduce carbon emissions in aviation,” Eric Heymann and Joachim Hartel, analysts at Deutsche Bank Research in Frankfurt, wrote in a report dated yesterday. “However, the international orientation of the sector means that if the EU goes it alone on this issue the result will be competitive distortions to the detriment of European carriers.”

Carriers including American Airlines Inc. and United Continental Inc. are already challenging the law in an EU court, and China’s airline association said earlier this year the European initiative may prompt trade conflict. The United Nations aviation body adopted last week a non-binding resolution at the urging of 26 nations, including India, Japan and Russia, calling for the exemption of non-EU airlines from the cap-and- trade program.
Not Giving Up

The EU is not planning to give up or amend its plans in face of international opposition, Climate Commissioner Connie Hedegaard told a committee hearing in the European Parliament today. Her vow follows a non-binding opinion by an adviser to the EU court handling the U.S. airlines lawsuit that the bloc’s emissions measure is compatible with international law.

When international carriers join the system next year they will be given emission permits making up 85 percent of the industry cap and will have to buy the remaining 15 percent at auction. The free allocation will fall to 82 percent from 2013 to 2020. Since the annual limit for the aviation industry was based on 2004-2006 pollution and the sector’s emissions rose by around 15 percent through 2011, airlines will have to buy permits to cover 30 percent of their discharges, Deutsche Bank Research estimated.
Most Efficient

The European plan will favor most-efficient carriers, which are due to receive proportionally more cost-free allowances based on benchmarks published by the commission, the bloc’s regulatory arm, in September. Member states are obliged to calculate the number of permits for each aircraft operator that applied for them by Dec. 26.

All “commercial carriers with significant operations to or from Europe” have so far complied with deadlines set in the EU legislation even as the industry voices opposition to the plan, Hedegaard told the European Parliament’s transport committee.

While the EU’s favored choice is a global solution to cut greenhouse gases from aviation, Europe decided to act after more than a decade of international talks on the issue brought no international deal, she said. The bloc’s law offers a possibility of excluding incoming flights from a particular country if that nation implements equivalent measures to cut pollution from its air transport sector.

“I would just recommend we should stay calm, we should work with different partners, seek solutions,” she said. “Don’t believe that Jan. 1 is the clash date, it’s not.”

1.1 Billion Euros

The actual costs being faced by the airlines next year will be around 1.1 billion euros ($1.5 billion), assuming a carbon price of 15 euros, according to the Deutsche Bank Research report. EU allowances for December 2012 were 1.9 percent down at 10.11 euros today, losing 31 percent this year on oversupply concern and speculation that the European debt crisis may worsen.

“The financial burden on the airlines will depend on the extent to which the additional costs can be transferred to customers,” Deutsche Bank Research said. “Due to the fierce competition in the sector, airlines will probably have to bear part of the costs themselves. True, the additional burden is likely to be moderate at first, but it affects a sector that for structural reasons only generates low margins.”

Any increase in air fares related to the inclusion of airlines in the ETS will be “modest at most,” ranging from $1.40 to $8.60 per ticket each way on long-haul flights at current CO2 prices, according to the European Commission.

EU airline ticket prices will probably increase faster on intercontinental flights than those of foreign peers, and a potential consequence could be shifting of passenger flows from European hubs, such as London, Paris or Frankfurt, to non- European airports, Deutsche Bank said.

“In the near future, traffic flows will be diverted only little because of the integration of the aviation sector in emissions trading,” it said. “Nevertheless, non-European airlines and airports stand to benefit in intercontinental traffic. The growth of the sector will be curbed.”

Isra-Mart srl: Chinese airlines to sue EU over emissions

2011-11-10T08:52:00.002-08:00

www.isramart.com

Chinese airlines are preparing to take Brussels to court over its plan to charge carriers for carbon emissions, a Chinese industry official has said, and are also considering how they might retaliate against European airlines.

The hard line from the China Air Transport Association, which represents all major Chinese airlines, intensifies a dispute with the European Union that the head of Airbus has warned could turn into a trade war. It comes shortly before the EU’s January 1 start date for bringing the aviation sector into its emissions trading scheme.
Cai Haibo, deputy secretary-general with CATA, said it intended to make the legal challenge in Europe before the end of this year. “There is no way the emission charge can be justified. It violates the basic principles of international law and infringes on other nations’ sovereignty,” Mr Cai told the Financial Times.

He said Chinese representatives had expressed their objections directly to European regulators but been dismayed by the response. “Chinese airlines have been so good to Airbus [a subsidiary of the Franco-German EADS]. But the EU turns around and tries to take more of the airlines’ money. They are not happy.”

Europe’s climate commissioner, Connie Hedegaard, expressed confidence any court would side with Brussels. “We are fully confident that our legislation is compliant with international law,” she said.

A Chinese suit, if filed, could differ from that launched by US airlines in the European Court of Justice, which questioned whether EU regulators were exceeding their jurisdiction by applying the emissions trading scheme to carriers outside their borders.

EU officials believe the Chinese would instead challenge the legality of the European policy under the Kyoto protocol, which makes a distinction between the efforts that developed and developing nations should have to make to address climate change. EU officials accept that principle but say it applies to governments and not to private companies such as air carriers.

The commission had been engaged in talks with Beijing to resolve the dispute under a clause in the ETS regulations that allows carriers from specific countries to be exempted if they can prove they are taking equivalent measures to limit their emissions. But those talks have broken down, the commission acknowledged.

Ms Hedegaard has argued that the extra cost of complying with the policy would amount to a €6 to €12 ($8.15 to $16.30) ticket price increase for a transatlantic flight.

But Chinese airlines estimate the EU tax would cost them Rmb17.6bn ($2.8bn) by 2020, adding roughly Rmb300 ($47.50) to each ticket for flights between China and Europe.

The EU commissioner’s determination to press ahead with the emissions policy also reflects frustration with what she believes has been years of foot-dragging by the industry through its UN umbrella group, the International Civil Aviation Organisation. Last week, the ICAO adopted a working paper from the United States, China and other nations urging the EU to exclude non-European carriers from the scheme.

The official Xinhua news agency reported this week that China would impose “stricter limits” on EU airlines when they departed from or arrived at Chinese airports if Brussels went ahead with the carbon scheme. It did not specify what those limits might entail.

Tom Enders, Airbus chief executive, told the EU this year it was “madness to risk retaliation” from China and other powerful countries. The Commercial Aircraft Corporation of China has predicted that China will add nearly 5,000 commercial aircraft by 2030, making it far and away the biggest source of new aircraft demand in the world. Airbus has a nearly 50 per cent share of the Chinese market.

Isra-Mart srl: The Canadian way on the environment

2011-11-10T08:52:00.001-08:00

www.isramart.com

The federal government seems to be embracing the role of international wet blanket on the environment file.

Not only did Environment Minister Peter Kent vowed “not to cave” to international pressure to take on new climate change commitments at the Durban talks next month, but Foreign Minister John Baird recently took a few minutes to pour cold water (and here) on Australia’s carbon tax policy, saying neither Canada nor the U.S. would ever introduce an emissions trading scheme.

Baird, who was in Australia last month to attend the Commonwealth Heads of Government meetings was quoted in the newspaper The Australian as having “cast doubt on the fundamental analysis underpinning Australia’s carbon tax policy.” The policy has since become law.

According to The Australian, Stephen Harper’s government “won an absolute majority in the Canadian Parliament for the first time by advocating a policy of no-carbon tax and no ETS.” He also said it is unlikely the U.S. would introduce a carbon tax or emissions trading scheme.

The Australian said Baird’s comments were ”devastating” for Julia Gillard’s Labour government “because if the U.S. and Canada do not go down a market road for cutting greenhouse gas emissions, it is impossible that anything remotely resembling a global market could emerge.” Even more devastating, said the newspaper, “is Mr. Baird’s judgment that carbon-trading schemes are inherently unreal and non-productive.”

Baird likened market mechanisms for dealing with greenhouse gases to a “pyramid marketing scheme. You don’t have to sell this dog food, you just have to get 10 of your friends to sell it and get the royalties from that.”

Isra-Mart srl: Coke's zero waste plans to deliver greener Olympic Games

2011-11-10T08:50:00.001-08:00

www.isramart.com

Coke Zero could take on a whole new meaning next year, after Coca-Cola revealed plans to turn plastic discarded at the London 2012 Olympic Games into 80 million new drinks bottles.

The company announced the plan today as part of its commitment to help the London Organising Committee of the Olympic Games achieve its target of sending zero waste to landfill, and to reuse, recycle or compost at least 70 per cent of all waste.

Estimates suggest that the initiative will see Coke recycle a fifth of the consumer waste produced at London 2012 venues.

Colourless polyethylene terephthalate plastic waste will be recycled at Continuum Recycling, Coca-Cola Enterprises' new joint venture recycling facility with ECO Plastics, which is expected to open in north Lincolnshire in 2012.

WWF 2012 spokesman Simon Lewis said that he hopes Coca-Cola's efforts will prompt consumers and other businesses to reduce the amount of waste they throw away.

"The strength of the Coca-Cola brand puts it in a unique position to trigger a significant shift in sustainable behaviour with the potential to leave a legacy of positive environmental change long after the Olympics have left town," he said. "I welcome this strategy for supporting the delivering of a sustainable Games."

Isra-Mart srl: BlackBerry maker hits bottom of green electronics rankings‎

2011-11-10T08:49:00.001-08:00

www.isramart.com

Blackberry maker Research in Motion (RIM) has come bottom of a list of the world's greenest electronics firms. The Canadian-based mobile maker is featured for the first time in the quarterly Greenpeace Guide to Greener Electronics, published on Wednesday and ranking 15 top electronic companies by their environmental policies and the impact of their products.

According to the campaign group, RIM does not have a clean electricity plan or a target to increase use of renewable energy. Its products are energy inefficient, and it is a member of a trade association that has attacked stringent energy efficiency standards, Greenpeace says.

Although the report is not designed to be a product guide for consumers, it does allow for a comparison of the leading manufacturers of PCs, TVs and mobile phones.

"Right now, HP takes the top spot because it is scoring strongly by measuring and reducing carbon emissions from its supply chain, reducing its own emissions and advocating for strong climate legislation. However all companies we included in the guide have an opportunity to show more leadership in reducing their climate impact," said Greenpeace International campaigner Tom Dowdall.

Dell takes second position, making a dramatic improvement from its 10th position in the last guide. The computer manufacturer scores well for having the most ambitious climate target, with plans to reduce its emissions by 40 per cent by 2020, and a strong policy on sustainable paper sourcing. After three years at the top, Nokia has slipped from first place to third, mainly due to weaker performance on the energy criteria.

The guide, which assesses companies based on their public information only, was first started in August 2006. It was set out mainly to put pressure on manufacturers to reduce the amount of toxic chemicals such as polyvinyl chloride (PVC) and brominated flame retardants (BFRs). Greenpeace claims it has already prompted improvements - particularly noticeable for mobile phones and PCs, with less progress having been made on TVs.

In response to the progress, the environmental watch group added new criteria and challenged firms to reduce their carbon footprint in manufacturing, in their supply chain and through to the end-of-life phase of their products and to set ambitious goals for renewable energy use. The latest version of the guide also features new criteria for the sourcing of paper, conflict minerals and product life cycle.

A RIM spokeswoman told the Guardian: "We are continuing to improve our sustainability practices and have a number of initiatives underway."

A Nokia spokesman said: "We are still No1 compared to any other mobile and device manufacturer, we stick to our sustainability targets."

Isra-Mart srl: Solar firms seek injunction against DECC over feed-in tariff cuts

2011-11-10T08:48:00.002-08:00

www.isramart.com

A group of solar firms have today confirmed they will launch legal action against the Department of Energy and Climate Change (DECC) over its controversial proposals to halve incentives for solar installations with just six weeks' notice.

The group, led by Solarcentury, said it is now seeking an interim injunction to stop the government imposing changes to the feed-in tariff scheme from 12 December, ahead of the completion of the formal consultation period on the proposed reforms.

The move follows an ultimatum earlier this week from Friends of the Earth, which warned climate minister Greg Barker that unless he ordered a rethink on the government's proposed cuts by 4pm tomorrow, the green NGO would also launch legal action.

The DECC review of solar feed-in tariffs, which was launched on 31 October, controversially proposes that all solar installations completed after 12 December will only be able to access the current level of incentives until next April, at which point tariff payments will be cut by 50 per cent to the new proposed rate.

The government insists the changes need to come into effect from next month in order to avoid a "gold rush" that would threaten to push the feed-in tariff scheme past its spending cap – a scenario that would result in increases in energy bills.

However, Solarcentury and its partners will argue that the pace of the cuts and the decision to change the scheme before the completion of the official consultation on 23 December is "illegal, irrational and unreasonable".

A spokeswoman for the company said the legal action would centre on the pace at which the government is trying to impose the cuts to incentives and will initially seek an injunction that stops any cuts to tariff levels being made until DECC has "completed a proper, legal review and followed the correct processes".

She added that the company had seen many large contracts cancelled over the past few days as a result of the pace of the proposed cuts, including several deals with housing associations and local authorities that were originally planned to be completed early next year ahead of the April 2012 date that had been the expected cut-off date for any changes to the feed-in tariff scheme.

Other firms are reporting that redundancies could be confirmed within the next month as a result of the changes.

Solarcentury chairman, Jeremy Leggett, said the company had been left with no choice but to resort to the courts.

"It is profoundly depressing that the greenest government ever has, after just 18 months, launched such an assault against a growing industry employing 25,000 people," he said. "I would much rather be helping to create many more Big Society jobs than taking the government to court, but sadly they leave us no choice. If they were to get away with this the consequences will go way beyond the wider PV sector. What low-carbon industry investor or company will be able to trust the prime minister, Mr Huhne and Mr Barker ever again?"

The other companies in the group seeking legal action are yet to go public, but Solarcentury predicted the coalition would grow as more solar firms seek to delay the proposed changes.

Pressure is mounting on the government to order a rethink, with Friends of the Earth's legal action looking almost inevitable, and a host of renewable energy firms and housing associations writing to Prime Minister David Cameron, calling for the proposed cuts to be restructured. A day of protests by the industry is also planned for Westminster on 22 November.

In addition, BusinessGreen has learned that a number of councils that are at risk of losing hundreds of thousands of pounds as a result of the changes are also considering legal action against DECC.

Solar industry representatives are scheduled to meet climate change minister Greg Barker later today to argue that the proposed cuts should be phased in more slowly and should be more modest in scale.

They are also expected to argue that the government's own impact assessment shows that delaying the proposed cuts until April next year would add just £1 a year to average energy bills in 2020, and seek clarification on how the government's proposed introduction of an energy efficiency standard for buildings installing solar panels will work.

However, DECC has consistently maintained it is committed to the current package of proposals and is believed to have taken detailed legal advice before launching the consultation.

Responding to the news, a DECC spokeswoman said: "We're consulting on proposed new tariffs for a reason - to protect consumers from footing the bill for excessive subsidies. This is a live consultation and it will be open for people to comment until 23 December. We can confirm that an application has been made for judicial review of certain aspects of the current consultation, which we shall be defending."

Isra-Mart srl: China accused of 'climate blackmail' over HFC credits

2011-11-10T08:48:00.001-08:00

www.isramart.com

China has threatened to release huge amounts of the potent greenhouse gas HFC-23 if the international community proceeds with plans to ban carbon credits generated by destroying the gas.

HFC-23 is a by-product of the refrigerant gas HCFC-22 which has a much greater warming effect than carbon dioxide and stays in the atmosphere for up to 200 years.

The EU moved to exclude HFC-generated credits from its emissions trading scheme from 2013 amid fears that developers were deliberately manufacturing and then destroying the gases to generate credits that can be sold for 70 times the actual cost of destroying HFC-23.

The UN has also considered taking action and will discuss banning HFC projects from qualifying for the Clean Development Mechanism (CDM) offsetting scheme at a meeting of the CDM executive board a week before the Durban Summit later this month.

However, China has blocked similar moves to reform the CDM at previous meetings, and officials have indicated that they remain unwilling to give up on a practice thought to have generated revenues of $1.3bn for Chinese industrial firms in a move described by green campaigners today as "a shocking attempt to blackmail the international community".

According to the Environmental Investigation Agency (EIA), Xie Fei, revenue management director at the China Clean Development Mechanism Fund, told the Carbon Forum Asia in Singapore last week that "if there is no trading of [HFC-23] credits, they will stop incinerating the gases" and instead vent them directly into the atmosphere.

Xie claimed that he spoke for "almost all the big Chinese producers of HFCs" which "cannot bear the cost" of destroying the gases and maintain that "they will lose competitiveness" if they are forced to do so without the compensation provided by the CDM scheme.

The EIA said that such claims are unjustified, and branded China's attempt to force countries to continue sponsoring the practice as "extortion". It also accused China of having no interest in emissions reduction beyond "profiting from a fatally flawed CDM system".

Clare Perry, senior campaigner at the EIA, said that the EU and UN have to stand firm and ban HFC credits from international emissions trading.

"HFC-23 CDM projects have cost European taxpayers untold millions, and allowed European industries to increase their emissions whilst subsidising chemical producers in China to produce yet more greenhouse gases," she said. "These dirty credits should be discontinued immediately."

Isra-Mart srl: Solar drags Siemens' renewables division into fourth-quarter loss

2011-11-10T08:47:00.001-08:00

www.isramart.com

Siemens' renewable energy division has reported a fourth-quarter loss, after writing off €231m (£197m) in its solar power business.

The German engineering giant today reported its fourth-quarter results for 2011, revealing its Renewable Energy division made a €154m loss, compared with a €97m profit during the same quarter last year.

The loss was caused by €231m in charges against its solar business, including a €128m goodwill write down based on the decision by a number of governments to reduce financial support for solar installations and delays to projects.

However, Peter Löscher, president and chief executive of Siemens, said the company remained optimistic about the long-term future for solar energy.

"Our expectations have not yet been met in the area of solar thermal power because regulatory conditions have deteriorated and projects have been delayed," Löscher told reporters.

"In the fourth quarter we wrote off €231m. However, the progress being made in the first Desertec project shows this market does have a future."

Siemens has been pushing into the solar market for a number of years, after acquiring Isreal's Solel Solar for $418m in 2009 and purchasing a stake in Italy-based Archimede Solar Energy.

In contrast to the write downs for the solar business, Siemens' wind power operations reported strong growth, including the company's first order for a Chinese offshore wind farm.

Löscher hailed the contract as a major milestone in the company's plans to grow in what has become the world's largest wind energy market.

The wind power division maintained its earnings contribution year on year, with two large contract wins for Danish and German offshore wind farms and several large orders for onshore wind farms from other countries.

Overall the renewables division fourth-quarter revenue came in 18 per cent higher than last year, while new orders were up 67 per cent from the prior-year period, including a substantially higher volume from major orders.

Siemens' total sectors profit reached €2.166bn in the fourth quarter, of which its energy division contributed €631m. Total sectors profit was €791m in the same period a year earlier.

Isra-Mart srl: Solar industry 'despondent' as Barker rules out immediate delay to feed-in tariff cuts

2011-11-10T08:46:00.001-08:00

www.isramart.com
Climate minister Greg Barker has today all but ruled out any delay to the proposed changes to solar feed-in tariff incentives due to come into effect from 12 December, arguing he cannot legally change the proposals until the official consultation exercise is complete.

Barker today met with representatives from the solar industry to discuss the government's controversial plan to halve the level of incentives available to solar installations and bring the changes into effect from next month – a move that, according to the solar industry, will result in widespread job losses and possible bankruptcies.

BusinessGreen understands representatives from across the solar industry argued that while the scale of the proposed cuts would damage their growth prospects, it is the pace of the proposed changes that will cause the greatest damage to the sector.

One industry source said Barker faced a "lot of flak" over the government's decision to effectively pre-empt the results of the consultation and propose that all installations completed after 12 December will only receive the current level of feed-in tariffs until April next year, at which point they will see the incentives they receive halved.

"There was a lot of talk of people being made redundant just before Christmas, the risk of unscrupulous dealers not giving back deposits on projects that cannot be completed before 12 December, and stranded assets where firms have ordered panels they will now struggle to sell," said the source. "There was an unbreaking consensus among the firms that the 12 December date is going to be very, very difficult."

The government is now facing at least two separate legal actions challenging the legality of the proposals and seeking an interim injunction to force the government to delay any changes to the incentive regime until after the official consultation exercise is completed.

But Barker insisted that because the consultation was now underway he could not legally make any changes to the proposals until after the exercise was completed and ministers had taken time to consider the responses.

The stance means that while ministers could, as a result of the consultation, change the 12 December cut-off date for installations to receive the higher rate of feed-in tariffs, they would not be able to announce such a move until mid January at the earliest.

"It is absolutely farcical," said one industry insider. "The 12 December date could technically be changed because it is subject to consultation, but we would not find out until January, by which point it will be too late because no one is going to take the risk of going through with a project when they know they could be left with the reduced tariff rate... People are pretty despondent."

Barker apparently stressed that all the proposals were still subject to consultation, but left the industry with the clear impression that significant changes remain unlikely.

Tweeting following the two-hour meeting, Howard Johns of the Solar Trade Association revealed Barker had warned that if current levels of feed-in tariffs were retained until April as originally planned, the scheme's entire budget would be gone. "We have to take demand away," he was quoted as saying.

A separate source told BusinessGreen that Barker had repeatedly stated that any changes to the proposed cuts to incentives, or the date they will be introduced, would have to ensure the scheme remains within the current spending cap.

Arguments that the feed-in tariff spending cap could be raised by transferring funds from other energy bill levy funded schemes were put forward by the industry, but Barker said such an approach would only gain traction if the industry could demonstrate it represents good value for money compared with other forms of renewables.

The meeting appears to leave legal action as the only avenue left available to solar firms as they attempt to force the government to delay the introduction of the changes and give the industry more time to adapt to the reduced feed-in tariff rates.

However, insiders said the meeting did deliver a number of positive developments.

Barker again said he was fully committed to developing a sustainable solar industry in the UK, and reiterated he wanted to work with the sector to develop a clear and stable degression mechanism as part of the second consultation on reforms to the feed-in tariff scheme, which is due to be launched before the end of the year.

Tweeting after the meeting he said: "Constructive meeting with solar stakeholders. Budget under huge strain but genuinely keen to engage industry + consumers on proposals."

He also told industry representatives that he wanted to meet with them again next month and in January to discuss the issues raised by the consultation exercises.

The industry was also given the opportunity to voice concerns that while government proposals to introduce energy efficiency standards for any building fitting solar panels were welcome in principle, they would have to be well managed to ensure they do not block large numbers of potential installations.

One industry source said the sector would continue its campaign for a rethink on the pace and scale of the proposed cuts, and continue to argue that only a modest increase in the scheme's spending cap is required to minimise the disruption caused by the cuts.

He added that the industry would now also begin work on submissions to the consultation that aim to set out a clear "flight path" detailing how incentives can be reduced over time to support the sustainable and cost-effective development of the industry.

Isra-Mart srl: EU finance ministers confirm €7.2bn climate financing

2011-11-10T08:44:00.000-08:00

www.isramart.com

EU finance ministers yesterday pledged €7.2bn in short-term funding to help developing countries tackle the effects of climate change, but were quickly accused by green campaigners of "re-labelling" development aid.

A statement outlining the conclusions of the latest meeting of finance ministers showed EU states had provided €4.68bn in 2010 and 2011 towards the $30bn "fast-start" climate fund agreed at the 2009 climate change summit in Copenhagen.

"Despite the severe economic downturn and strong fiscal constraints in Europe, we have mobilised €2.34bn also in 2011," said Connie Hedegaard, the EU's climate action commissioner, in an emailed statement.

"This figure shows Europe's clear commitment to support actions for reducing emissions and adapting to climate change in developing countries. And after the first year of funding, it's very encouraging to see tangible results in a number of developing countries."

But NGO's claimed that rather than meeting its climate finance commitments, the EU has simply diverted large amounts of existing development funds to climate projects.

"On first sight it looks like European governments have done well on meeting their commitments to help poor countries cope with immediate climate change impacts," said Lies Craeynest, Oxfam's EU climate change policy advisor. "But they have done this mainly by re-labelling development aid as climate finance."

The fast-start finance is intended to fill a funding gap before the proposed $100bn Green Climate Fund kicks in from 2020.

But developing countries are concerned the fund will be scaled back unless public money is used, as they do not feel the private sector can be relied upon to provide funds for aspects such as climate adaptation where there is little prospect of profit.

Oxfam and WWF have proposed a levy on shipping emissions or a tax on financial transactions would be better able to supply funds for adaptation and would be easier to regulate.

Craeynest said: "Major reports by Bill Gates, the World Bank and IMF stress that both a Financial Transaction Tax and a fair carbon price on shipping are technically feasible and would raise billions of fresh money to deal with the growing challenges of climate change in poor countries, whilst also tackling emissions from ships and sorting out the financial crisis."

However, Bloomberg New Energy Finance among others has claimed raising funds from private sources will be easier than from cash-strapped governments.

Climate funding is likely to be one of the key areas of negotiation at the upcoming UN climate summit in Durban with an influential working group scheduled to present a package of proposals on how to raise the promised $100bn a year of funding from 2020 onwards.

The latest statement from the EU came as the International Energy Agency released a major new report warning that with global greenhouse gas emissions rising to record levels the world only has a few years left to take action to avoid dangerous levels of climate change.

Isra-Mart srl: Councils could save £15bn by sharing buildings, says Eric Pickles

2011-11-07T08:54:00.000-08:00

www.isramart.com

Local councils and frontline services, such as health visitors and fire fighters, will today be urged to share buildings in an attempt to cut carbon and shave up to £15bn off public sector spending.

A report by the cross-parliamentary Westminster Sustainable Business Forum will show co-location of services raises productivity of a workforce by up to £8bn a year, as result of better communication, enhanced efficiency, and integrated building services.

The £8bn productivity boost is on top of a £7bn saving in property costs identified in an earlier report by the Forum, resulting in total potential savings of £15bn.

Communities and Local Government Secretary Eric Pickles will launch the report today, urging civil servants "to be ruthless in the pursuit of good value - and utterly unforgiving of bureaucracy".

"The best councils are doing everything in their power to make taxpayers' money go further. Cutting out waste, sharing back offices and redesigning services," he will say.

"This report clearly shows how it is possible to deliver real savings and other benefits. The expertise is there, the experience is there. Time to get on and do it".

However, Conservative MP Matthew Hancock, who chairs the committee, said a major shift in mindset across the public sector will be needed to achieve the promised savings.

He told BusinessGreen that the public sector must no longer "hoard" buildings as an asset, but view them as a cost which should be reduced.

"Once that change of mindset has been made then a lot of the benefits should unlock themselves," he said.

He also admitted that there was a security risk of co-locating public services - a concern which needed to be addressed if greater sharing of buildings is to take place.

However, despite these challenges, the report shows a number of cases where co-location has been a success.

For example, shared services across Hampshire were found to save up to £324m, reducing both operational costs and carbon by up 50 per cent.

"When I began interviewing people a year ago, this was viewed as a radical idea, but now its becoming to become widespread thinking," added Hancock. "This prize is obtainable."

Isra-Mart srl: Green leaders urge Cameron to intervene in solar subsidy fiasco

2011-11-07T08:39:00.000-08:00

www.isramart.com

A coalition of 51 solar power firms, housing associations and politicians have written to Prime Minister David Cameron urging him to intervene to block government plans to halve feed-in tariff incentives for photovoltaic installations, with effect from next month.

The open letter, dated 1 November, emerged as the latest part of a mounting campaign opposing the consultation launched by the government last week, which proposes reducing the incentive for solar photovoltaic installations with more than 4kW of capacity, from 43p/kWh to 21p/kWh.

Controversially, the reduced incentives would come into effect from next April and apply to all solar installations completed after 12 December, giving the solar industry just six weeks to prepare for the changes.

Signatories of the letter include Juliet Davenport, founder of Good Energy, Green MP Caroline Lucas, and Stephen Howlett, the chief executive of Peabody, one of the largest and oldest housing associations in London.

It calls for more moderate cuts to those proposed in the consultation and the removal of an £856m cap on the feed-in tariff (FIT) budget imposed by the Treasury.

"We urge you to request the chancellor of the exchequer revisit the spending constraints his department has placed on a scheme which makes no contribution to reducing the government deficit and is funded by energy companies, and to give special consideration to the contribution it has made to the UK's social housing sector," concludes the letter.

It also calls on Cameron to recognise the way in which solar energy is benefiting social housing schemes. The 18 social landlords who signed the letter are responsible for a total of 316,000 homes around the UK.

The government's proposals mean that aggregated solar schemes face a further 20 per cent cut to incentives on top of the 50 per cent already planned for small-scale installations, taking the tariff down to 16.8p/kWh.

"At a time of great economic uncertainty, FIT installations are one of the very few things that social landlords can do to support their tenants," the letter states. "However, the proposed level of these reductions will, quite simply, render new projects financially unviable.

"For the vast majority of social landlords, the risks of projects will be too big and the return on investment too small."

In a separate open letter to the prime minister released on Friday, Jeremy Leggett, founder of Solarcentury, issued a heartfelt plea to Cameron to stand by his earlier commitments to support the development of the UK's solar industry.

The letter recalls Cameron's decision to host media events at Solarcentury's headquarters and draw on the company's assistance to develop its position on green issues.

"In the early months of your premiership... I was very proud to be able to accompany you to India and genuinely welcomed prospects for the 'greenest government ever'," Leggett writes. "Eighteen months after the election, this company has done everything asked of it by your government. We have invested, innovated, researched, exported, manufactured, supported Big Society projects and created jobs winning a Queens Award for Enterprise only last year. But today, surveying the wreckage caused to my company by Monday's DECC announcement, I have to ask you prime minister, where did it all go wrong?

"The immediate impact of DECC's unlawful decision on Monday for my own company and the industry is that bad news is hitting us from almost every quarter."

The letter draws on the government's own impact assessment to argue that the cost to energy bill payers of giving solar firms sufficient time to prepare for the proposed cuts would amount to about £1 a year.

"Prime minister, an entire industry is being destroyed inside six weeks for the sake of saving households a sum of money roughly equivalent to purchasing one copy of the Daily Mail per year," the letter states. "The Impact Assessment published yesterday reveals the cost of delaying the 12 December deadline to a date consistent with Energy Act procedures can be measured in pennies rather than pounds on average annual household energy bills."

It concludes by urging the prime minister to "intervene personally on this issue to safeguard the livelihoods of 25,000 solar staff, and to reduce the number of bankruptcies that are set to engulf the industry as a direct result of this decision".

A spokesman for Number 10 failed to respond to BusinessGreen's enquiries as to whether Cameron would address calls for a u-turn on the cuts to feed-in tariffs.

He also side-stepped a call to intervene in the cuts, when asked to do so by Labour MP Alan Whitehead in Parliament last week.

Isra-Mart srl: Global carbon intensity on the rise for first time in a decade

2011-11-07T08:37:00.000-08:00

www.isramart.com

Global emissions output is now outpacing economic growth, meaning that the world's carbon intensity has increased for the first time since 2000.

A PwC report to be published today will say that while carbon emissions fell along with the recession-inspired dip in industrial output the trend was reversed in 2010.

Last year, global GDP increased 5.1 per cent but emissions grew 5.8 per cent, resulting in a 0.6 per cent rise in carbon intensity, the figure that reflects the level of emissions per unit pf production.

The combination of strong growth in the emerging economies of China, Brazil and South Korea, unusually cold winters in the northern hemisphere, a drop in the price of coal relative to gas, and a slowdown in renewable energy deployment was credited with driving the increase in emissions.

The report calculates that global carbon intensity now needs to reduce by 4.8 per cent a year, over twice the rate required in 2000, if temperatures are to be kept below the 2º C increase most scientists say is necessary to avoid the worst effects of climate change.

PwC also said the UK will need sweeping reforms to generate the annual cuts in emissions of 5.6 per cent that are required if it is to stay within its carbon budget, noting that the necessary emission reductions equate to turning off power to the entire UK for a third of the year, every year, until 2020.

The consultancy explained that reaching the government's low carbon targets will require the Big Six utility companies to triple capital expenditure to a cumulative £199bn by the end of the decade.

However, the report reveals the UK is by no means alone in currently under-spending on green infrastructure, highlighting how Germany, often regarded as a low carbon pioneer, will still require €20bn (£17bn) a year of additional investment to meet its 2050 targets.

The report comes just days after the US Department of Energy announced a six per cent increase in global greenhouse gas emissions last year, and will further crank up pressure on global leaders scheduled to meet in Durban later this month for the UN's annual climate change summit.

Leo Johnson, a partner in PwC's sustainability and climate change practice, warned that the report's findings paint a stark picture.

"We are at the limits of what is achievable in terms of carbon reduction, when you consider the growth cycles predicted for developed and developing nations, versus what is required in terms of carbon reduction to stay within the 2º C scenario," he said.

"The G20 economies have moved from travelling too slowly in the right direction, to travelling in the wrong direction."

Jonathan Grant, a director at PwC, maintained that policies need to be put into place to decouple growth from carbon intensity, as decarbonising will be even more expensive in the future despite the current hysteria over rising energy bills.

"Achieving the rates of carbon productivity needed requires a revolution in the way the world produces and uses energy," he said.

"Married to that, and in the midst of a global financial crisis, we need a transformation in financing to achieve the transition at the scale and speed needed.

"Delaying action to break the link between high carbon and economic growth means that the reductions required in future are steeper, and will be more costly, threatening even greater consumer impacts in the future."

Isra-Mart srl: UK firms lead the pack in responsible reporting

2011-11-07T08:34:00.002-08:00

www.isramart.com

UK firms are leading the global pack when it comes to reporting on environmental and social corporate responsibility (CR) activities, according to a major new survey from accountancy firm KMPG.

Published today, KPMG's International Survey of CR Reporting 2011 (PDF) examined data from 3,400 companies worldwide, including the Global Fortune 250 and the largest 100 companies in 34 countries and 15 industry sectors.

UK firms were found to be leading the way, with every one of its top 100 companies reporting CR initiatives.

The performance just edged Japan into second place with 99 per cent of its largest companies reporting on CR efforts.

Globally, 64 per cent of the largest 100 companies in each country reported on environmental and social performance, representing an increase of 11 per cent since KMPG's 2008 survey.

The lowest ranked countries were New Zealand and Chile, both with 27 per cent of companies producing CR reports, followed by India with 20 per cent and Israel in last place with 18 per cent.

Vincent Neate, who leads KPMG's UK Climate Change and Sustainability practice, said the figures confirm that CR reporting is moving up the corporate agenda, noting that nine per cent more UK firms reported on CR issues in 2011 than 2008, despite the economic downturn.

"This report bears out the view that one of the effects of the volatility and tough trading conditions of recent years has been to make companies keener to measure, evaluate and articulate their activities around sustainability and social responsibility," he said.

"As well as enhancing the value of their brands, it can show that they are investing time and money wisely."

Among the Global Fortune 250, 95 per cent of firms were found to be reporting on CR issues, a 14 per cent increase on the 2008 findings.

"Further weight is thrown behind the assertion that CR initiatives have moved from a moral to a critical business imperative through the finding that almost half of the Global Fortune 250 companies report gaining financial value from CR," added Neate.

Isra-Mart srl: "Historic week" for US aviation as United launches first biofuel-powered service

2011-11-07T08:34:00.001-08:00

www.isramart.com

The first commercial biofuel-powered flight in the United States is set to take place later today, according to reports.

United Airlines, the world's largest air carrier, will pilot the service between Houston, Texas, and Chicago, Illinois, in a Boeing 737-800, according to news agency Reuters, which cited algae-based biofuel maker Solazyme as its source.

But hot on United's heels is Alaska Airlines, which today announced it will fly 75 commercial passenger flights powered by biofuel starting on Wednesday.

Today's maiden flight links the former base of Continental Airlines with the global HQ of United, which took over Continental last year.

It will reportedly use Solazyme's Solajet branded fuel, a blend of 60 per cent petroleum-based jet fuel and 40 per cent biofuel.

The San Francisco-based company manufactures Solajet by breaking down agricultural waste into algal oil that can then be tailored to produce a jet fuel, which it claims has full lifecycle greenhouse gas emissions 93 per cent lower than standard diesel.

By contrast, Alaska Airlines and its sister company carrier Horizon Air will pilot two flights from Seattle to Washington D.C. and Portland, Oregon, using a 20 per cent blend of sustainable biofuel made from used cooking oil.

The technology has been developed by Dutch firm SkyNRG, which already supplies biofuel blends to Finnair, Thomson airways and KLM.

Further selected flights between the cities will continue to use the fuel over the next few weeks, Alaska Airlines said. It estimates it will reduce greenhouse gas emissions by an estimated 10 per cent, or 134 metric tons, the equivalent of taking 26 cars off the road for a year.

It added that if the company powered all of its flights with a 20 per cent biofuel blend for one year, the annual emissions savings would equate to taking nearly 64,000 cars off the road or providing electricity to 28,000 homes.

"This is a historic week for US aviation," Alaska Air Group Chairman and chief executive Bill Ayer said in a statement. "Commercial airplanes are equipped and ready for biofuels. They will enable us to fly cleaner, foster job growth in a new industry, and can insulate airlines from the volatile price swings of conventional fuel to help make air travel more economical.

"What we need is an adequate, affordable and sustainable supply. To the biofuels industry, we say: If you build it, we will buy it."

The green aviation fuel market is likely to become more lucrative as oil prices continue to rise and the costs of complying the EU's emission trading scheme, which airlines estimate could be up to €10bn by 2020, start to bite.

Solazyme, backed by Morgan Stanley and Chevron among others, and SkyNRG, already have rivals in the form of Finnish refiners Neste Oil, whose biojet fuel has been trialled by Lufthansa, and Solena, which is building a plant producing waste-derived fuel in London after signing a deal with BA last year.

However, environmental groups remain deeply concerned over the sustainability of jet biofuels, with experts warning that without major breakthroughs in the development of such fuels it is unlikely that suppliers will be able to produce the fuel in sufficient quantity to meet demand.

Isra-Mart srl: NER300 sale to proceed, despite plunging carbon prices

2011-11-07T08:22:00.000-08:00

www.isramart.com

The EU has insisted that falling carbon prices will not affect the planned sale of 300 million emission allowances set aside to fund renewable energy and carbon capture and storage (CCS) projects across Europe.

Between €4bn and €5bn was expected to be raised for the NER300 fund when the sale was announced in February last year. But since then the fluctuating price of carbon has dipped significantly, hitting record lows in August, before again falling during the autumn on the back of the Eurozone debt crisis.

EU allowances are currently sitting at about €9.50, which would mean the sale of the reserved allowances would only raise about €2.85bn if sold at today's market prices.

Some commentators had suggested postponing the sale until prices recovered to maximise the funds available, while last month the European Investment Bank (EIB) said that while sales of the credits may start this year they could run beyond the end of the original 2012 deadline for completing the sell-off.

But speaking to reporters in Brussels today, Jos Delbeke, director general for climate at the European Commission, ruled out any delay.

"Can we linger out? I'm afraid we can't," he said. "We have to spend the money by 2015. If we lingered out we'd miss the opportunity to move ahead with clean technologies."

He added that the EIB had been instructed that the commission "won't tolerate any slippage in the timetable".

"It's better to be on time than take six or 12 months and not be sure if the price is going to improve," he said.

The NER300 is intended to cover half the construction costs of eight CCS projects with over 250MW capacity and 34 renewables projects, including wind energy, marine energy and technologies to convert plant waste into biofuels, biogas or electricity.

The UK put forward 12 projects for consideration in May, including ScottishPower's Longannet CCS project, which has since dropped out of the UK government's funding competition, and Clipper Wind's high-profile Britannia project to build a 10MW offshore turbine, which was shelved in August.

The NER300 fund will provide a major boost to a large number of cutting-edge low-carbon projects, but concerns remain that if the Eurozone crisis worsens the price of carbon could fall, further limiting the available funds for new projects.

Isra-Mart srl: Rio +20 Summit postponed to avoid Queen's diamond jubilee

2011-11-07T08:11:00.000-08:00

www.isramart.com
The Brazilian government has reportedly postponed the Rio +20 Earth Summit by two weeks to avoid a clash with the Queen's diamond jubilee celebrations that threatened to leave 54 Commonwealth Leaders facing a tough decision on which event to attend.

According to reports, the crucial three day summit, which marks the 20th anniversary of the first Rio Earth Summit and is being widely touted as the last chance to deliver a breakthrough in moribund international climate change negotiations, will now take place between 20-22 June rather than 4-6 June.

The meeting's official website still states that it will take place on 4-6 June, but according to reports in the Guardian Brazilian officials told their counterparts at last week's G20 Summit in Cannes that the date would be moved.

European governments are understood to already be planning to work to the new dates.

Fears had been mounting that the diary clash would result in several of the world's most powerful leaders avoiding the summit, with Downing Street confirming last month that British Prime Minister David Cameron would not attend.

However, in what is likely to be a controversial move Downing Street again confirmed today that the Prime Minister still had no plans to attend the Rio +20 summit, despite calls from green groups and a cross party committee of MPs for him to do so.

The UK is expected to represented by Environment Secretary Caroline Spelman instead.

Speaking following the launch of a report from the environmental audit committee of MPs last month chairwoman Joan Walley said the onus was on Cameron to attend the summit.

"The prime minister should lead by example," she said. "He could make a big difference by demonstrating his commitment to Rio+20 and letting other world leaders know that he will personally be attending."

Cameron's non-attendance will fuel concerns that other world leaders could similarly avoid the summit, after seeing their attempts to broker an international agreement to tackle climate change fail at 2009's Copenhagen Summit.

Most notably, Barack Obama will be under political pressure not to attend during an election year.

In related news, Labour today sought to step up pressure on David Cameron over his apparent reluctance to maintain his earlier commitment to environmental issues with the launch of a new campaign designed to push action on climate change change up the political agenda.

The Prime Minister has famously failed to give a single significant speech on environmental issues since taking office, despite his high profile commitment to green policies while in opposition.

Launching the Climate Change Pledge campaign, Shadow Secretary of State for Energy and Climate Change Caroline Flint urged people to sign up to the new pledge, adding that the opposition would challenge the government to take more ambitous steps to curb greenhouse gas emissions.

"In opposition David Cameron was telling us to 'vote blue and go green'," she said. "Now he's in government we don't hear anything from him about climate change or the green economy.

"The Government should be acting to build a low carbon economy, pushing for an agreement on long term sources of climate finance at the Durban conference and pushing for a second period of the Kyoto Protocol as a route towards a global agreement on cutting carbon emissions."

Isra-Mart srl:EU Faces Global Oopposition to ETS

2011-11-03T09:50:00.002-07:00

www.isramart.com

The European Union has vowed to impose carbon emissions caps on flights in and out of the region’s airports starting next year. This comes in the face of opposition from non-EU countries, including the US and Russia, and a formal complaint was filed on Wednesday. The US, Russia, China and 23 other countries urged that non-EU carriers be exempt from the scheme at a meeting of the United Nations International Civil Aviation Organisation’s (ICAO) governing council.

The dispute highlights the challenge of creating a global deal to put a price on CO2 emissions, only four weeks before the UN summit on post-2012 climate-protection regulations. This follows the US House of Representatives approving a bill that will ban the nation’s airlines from participating in the scheme.

The EU is aiming to lead the battle against climate change and decided in 2008 that the aviation industry should be part of its cap-and-trade programme after emissions in Europe doubled over 20 years. US-based airlines are challenging the legislation in an EU court, and the carrier association of China had predicted that the scheme could prompt conflict.

The opposing nations say that the legislation will infringe a ‘cardinal principle of state sovereignty’ by founding its charges on the distance flown by every flight. This means calculations will include airspace outside of the EU, which will violate a 1944 pact that allows every nation exclusive authority over its skies. It will also discriminate against countries further away from Europe than others.

The Emissions Trading Scheme (ETS) is the cornerstone of the plan set out by the EU to reduce greenhouse gases, which are blamed for global warming. Pollution limits are already imposed on over 11,000 power companies and manufacturers, leading to a cap in 2020 that will reduce discharges to 21% below 2005 levels.

The law that extends to airlines offers an option of excluding incoming flights from a certain nation if that country imposes equivalent measures that will reduce pollution from its air transport sector. Due to the rule, airlines are slated to lose €1.2 billion next year. Carriers that don’t comply with the regulation will face fines of €100 per missing permit, or 10 times their current value.

European Commission climate spokesman Isaac Valero-Ladron said that they aren’t going to modify the plan to extend the ETS to all airlines entering or leaving the region. EU top climate action official Connie Hedegaard says that it’s disappointing that the ICAO talks are again focusing on what States shouldn’t do, rather than what they should do, to curb increasing aviation emissions. Unfortunately, the organisation has missed the opportunity to tell the world when it will provide a viable international solution.

Isra-Mart srl: 26 Nations Defy Europe on Airline Emissions

2011-11-03T09:50:00.001-07:00

www.isramart.com

China, the United States and 24 other nations backed a declaration on Wednesday urging that their airlines be exempted from the European Union’s Emissions Trading System.

The move at the International Civil Aviation Organization, an arm of the United Nations, is another challenge to environmental leadership by the European Union, which has failed in its efforts to get some of the biggest polluters in the developed world to adopt crucial parts of its agenda for tackling climate change.

The declaration said the European directive was “inconsistent with applicable international law” and that the signatory nations would work together to oppose it.

The declaration is not binding, but it does represent a shot across the bow, as it could lead to a formal dispute procedure through the international aviation organization.

Connie Hedegaard, the European Union’s commissioner for climate action, defended the European emissions plan and faulted the other countries for failing to address the greenhouse gas issue. “Unfortunately, I.C.A.O. has missed again today the opportunity to tell the world when it will table a viable global solution,” she said.

Pamela Campos, an attorney with the Environmental Defense Fund who attended the meeting in Montreal, said the declaration was no more than “a political expression of a group of countries that their airlines aren’t happy about having to comply with pollution controls.”

She said that any “formal legal action would have to follow very different procedures that were not considered today.”

European Union officials have emphasized that some of the countries that supported the declaration on Wednesday had backed earlier conclusions by the aviation organization that emissions trading could be developed regionally before expanding to a global system.

Isra-Mart srl: World's top airports rally against ETS

2011-11-03T09:49:00.000-07:00

www.isramart.com

Members of the Airports Council International (ACI) are urging the International Civil Aviation Organisation to intervene over the proposed EU Emissions Trading Scheme (ETS).

From January, all airlines crossing EU airspace will be expected to join the ETS and will need to buy permits for any carbon emissions they produce over a certain limit.

ACI said yesterday that its 580 members “recognised the risk to trade posed by the ETS” and were extremely concerned about the potential negative affects on international air transport.

“The ICAO is the international authority in matters involving civil aviation and we believe it should intervene and resolve this conflict before the scheme is implemented”, said the ACI’s Director General, Angela Gittens.

Isra-Mart srl: The view from Chinese airspace

2011-11-03T09:48:00.000-07:00

www.isramart.com

From 2012, the European Union’s Emission Trading Scheme (ETS) will set carbon quotas for airlines flying into or out of the trading bloc. Airlines exceeding their quota will need to buy extra emission permits. China’s airlines have consistently opposed the move and threatened to take the matter to court.

Is the EU move legal? Does it breach the principle of common but differentiated responsibilities set out in the Kyoto Protocol? chinadialogue’s Meng Si asked three Chinese experts for their views: Jiang Kejun, head of the Energy Research Institute at the National Reform and Development Commission, China’s top economic planner; Yang Fuqiang, senior adviser on climate, energy and environment for the Natural Resources Defense Council’s China Program; and Luo Rui, senior consultant at ICF International, a consultancy specialising in energy, environment and transport.

For a view on the row from Europe, read “Battle of the skies” by Oxford University aviation expert Christian Carey here .

Meng Si: What’s your view on Chinese threats to sue the European Union over the inclusion of aviation in the ETS?

Jiang Kejun: It’s natural that China’s airlines will object to paying charges, but I don’t think there’s any need for China to make too much of a fuss. The inclusion of aviation in the ETS will have a greater impact on European airlines, as they have more European routes. Also, there are advantages for China. First, the higher costs for European airlines will result in a relative increase in the competitiveness of Chinese firms. Second, it will promote low-carbon development for China’s airlines. China’s late-starter advantage means its firms are very likely to lead others in emissions reductions – there’s no need to be particularly concerned.

Yang Fuqiang: China has failed to pay enough attention to the way this has developed. The European Union has been working on the inclusion of aviation within the ETS for years, and they informed other nations and asked for feedback well in advance – but nobody thought there was any rush and didn’t pay too much attention. Now the EU has actually passed the legislation and everyone’s apparently been caught unawares. China’s in the same boat, but it’s too late now.

Another thing is that the EU has been working on this for years – it’s legally sound, and China won’t win any court cases. So China’s opposition is merely political. And flights between China and the EU are more important to China than to Europe, so the EU has the stronger negotiating position.

Luo Rui: Aviation emissions should be a focus of concern, but enforcing an emissions policy in the face of widespread opposition may affect international climate talks and disrupt genuine cooperation.

International industry associations such as the International Air Transport Association have already produced roadmaps for emissions reduction, but the EU’s unilateral, regional measures mean this is no longer a simple climate change matter – it has become a trade issue. China has every right to make its opinions clear. Of course, the EU’s own airlines may believe that including overseas firms is fairer, for the sake of their own competitiveness.

There’s nothing wrong with the ETS itself – the problem is that it’s not a global system. Steve Ridgway, Chairman of the Association of European Airlines, said in Brussels in September that the ETS will result in annual costs of 3.1 billion euros [US$4.3 billion] for European airlines – 1.1 billion euros [US$1.5 billion] of which will go to EU governments. This has been opposed by airlines and some industry associations. The ETS rules that the length of flights landing in the EU will be calculated from the last non-EU point of landing. So if you fly from Beijing to Paris, you are judged to have flown that whole distance. But if you fly from Beijing to Dubai, then to Norway, then to Paris, then only the Norway to Paris leg is used. That’s a focus of debate, as there’s a loophole there.

Developing nations will also worry that this model will be extended to other sectors, wrecking the principle of common but differentiated responsibilities.

Meng Si: If this system goes into effect, what impact will it have on China?

Jiang Kejun: In terms of response to climate change, I think it’ll have a positive effect. Chinese airlines need to look to the future and become low-carbon if they are to be more competitive. Their passengers come from all over the world and, in particular, European consumers will tend to choose environmentally friendly airlines. If the airlines fight this too much, they’ll spoil their image and that won’t help future growth. I think China’s consumers can stand the extra costs, it won’t affect the market.

Yang Fuqiang: Chinese airlines have said this will result in 800 million yuan [US$126 million] of increased costs a year. That’s a huge number, but divide it across passengers and it’s not that much, under 100 yuan [US$15.7] extra per ticket. The EU looked at this when they were designing the system and believe that the costs are bearable.

But it should be stressed that, from China’s standpoint, this is not fair. Developing nations will suffer more, which breaches the principle of common but differentiated responsibilities.

This affair should sound a warning bell for China’s climate negotiators. China’s airlines have sent representatives to negotiations on aviation emissions, but sometimes they turn up, sometimes they don’t – often they’re just seeing what’s going on, rather than putting forward their own proposals. Then when things get started, it’s too late and there’s little they can do about it. Even if the ongoing discussions go well for China, I guess the airlines are still looking at extra costs of 200 to 300 million yuan.

Luo Rui: Needing to buy emission permits will increase costs for airlines, but those costs are related to the price of carbon, and ultimately might not be as high as the 800 million yuan figure that’s been mentioned. Currently buying carbon credits costs 3% of fuel costs, and if the price of carbon increases it still shouldn’t be more than 10%. I don’t think initially there’ll be very much increase in costs, but by around 2014 to 2016, expected increases in the cost of carbon may make things much more expensive.

Different companies will have different abilities to absorb those costs, so it’s hard to say how much will be passed onto consumers. China’s aviation sector is expected to expand rapidly and it’s unlikely the number of flights to the EU will decrease – but environmental costs will become more important when routes are being chosen.

Meng Si: How could a compromise be reached?

Jiang Kejun: It’s hard to say whether or not the Chinese airlines will be able to change the rules through legal action. Personally, I don’t think they’ll gain anything. The lesson here for the European Union is that there was a lack of communication early on. China being suddenly informed like that – that’s hard to accept in Asian culture.

Yang Fuqiang: I think China and the EU should sit down for constructive talks rather than just work against each other. Both sides should seek a solution though high-level government talks. After all, the EU has no desire to see deadlock with China.

The EU should offer a grace period for developing-nation airlines, during which these charges will not be collected. That would be in line with the principle of common but differentiated responsibilities. The length of the grace periods should be set in accordance with the ability of different nations to make emission cuts.

China’s aviation industry wasn’t included in the emission-reduction and energy-saving plans of the 11th Five-Year Plan, and the targets now set for the industry in the 12th Five-Year Plan aren’t very ambitious. If airlines had made improvements during the 11th Five-Year Plan, they could argue more convincingly with the EU. China should join with developing nations and argue for the principle of common but differentiated responsibilities to be applied, rather than opposing the move along the same lines as the United States [north American airlines have sued the EU on the grounds that its aviation ETS plans violate international law].

Luo Rui: In September, the EU publicised a proposal for allocation of free quotas, with charges to be reduced or waved in exchange for measures to reduce emissions, such as using biofuel or new materials. Currently, China is trying to gather as many bargaining chips as possible in the hope that the EU will recognise the industry’s undertakings on emissions reduction and thus reduce its costs. At the same time, I think the industry should be preparing, working out emissions data and making sure it is ready for the worst-case scenario.

Isra-Mart srl: IATA calling for an innovative approach to airline-airport cooperation

2011-11-03T09:47:00.000-07:00

www.isramart.com

Marrakech – The International Air Transport Association (IATA) called for innovation and a renewed agenda of cooperation in the relationship between airports and airlines. “We need a common and forward-looking agenda that builds on past successes and puts innovation at the heart of our common issues. Airports and airlines share a common interest in making aviation safer, more secure, user-friendly, operationally efficient and environmentally responsible. Combined, these are our common license to grow,” said Tony Tyler, IATA’s Director General and CEO.

Tyler’s remarks came in a keynote address to the world’s airports at the Airports Council International (ACI) World Annual General Assembly in Marrakech, Morocco. Tyler highlighted six areas where airports and airlines can enhance cooperation to innovate and deliver value: safety, security, improving the customer experience, infrastructure investments, environment and charges.

Safety: “Safety is our top priority and requires a team effort. We are already doing good and important work together in critical areas such as runway safety. Addressing ground safety and reducing the $4 billon cost of ground damage is another area. ACI contributed to building the IATA Safety Audit for Ground Operations (ISAGO) which has become the global standard. Seattle Tacoma and Amsterdam Schiphol now mandate ISAGO as a requirement for all ground operators at their airports. I urge others to do the same. If we are serious about safety—and we are—there is no reason not to,” said Tyler. There are 128 ISAGO registrations covering 83 ground service providers at 104 airports, with 25 airports having indicated their support of ISAGO.

Tyler also called for cooperation between IATA and ACI in promoting the IATA Ground Operations Manual (IGOM). IGOM will be launched in 2012 to globally harmonize ground operations and will become a tool to address deficiencies in safety and efficiency, particularly in rapidly developing markets.

Security: IATA is promoting a dialogue among industry and government stakeholders on a Checkpoint of the Future (CoF) that takes a risk-based approach with the aim of allowing passengers to move through security without stopping, unpacking or removing outerwear. “Airport security is effective but it needs a major re-think to meet growing passenger numbers and calls for less intrusive processes. Convenient and effective security will make air travel a more compelling product. And the less time travelers spend queuing, the more time they will have for airport shopping, eating and entertainment,” said Tyler. Tyler also noted the cooperation with ACI on Secure Freight, which will secure the supply chain based on global standards and best practices.

Improving the Customer Experience: “Airlines and airports worked together to improve efficiency and passenger convenience through IATA’s Simplifying the Business program, starting with e-ticketing, common use self-service (CUSS) kiosks and bar coded boarding passes. These are three enablers that give us an enormous opportunity to innovate the passenger experience even further through Fast Travel,” said Tyler. Fast Travel is a suite of self-service options to add further efficiency to the travel experience from check-in to baggage retrieval that has been implemented in airline-airport partnerships including SAS and Copenhagen Airport, the first to implement all five Fast Travel projects.

Tyler urged airlines and airports to work more closely on baggage delivery accuracy to support airlines as they unbundle their product, including baggage charges. IATA’s Baggage Improvement Program helped Air New Zealand and Auckland International Airport reduce baggage mishandling by 75%.

Tyler also called for more airport partnerships to promote e-freight. Implementing e-freight will lower costs across the supply chain, improve efficiency, reliability, accuracy and security, and has the potential to contribute to shortening process cycles by up to 24 hours.

Environment: Airports and airlines are united with air navigation service providers and manufacturers to tackle aviation’s carbon emissions. To achieve the industry’s commitments to improve fuel efficiency by 1.5% annually to 2020, cap net emissions from 2020 and cut net emissions in half by 2050 (compared to 2005), Tyler called for innovative cooperative approaches. “I encourage airports around the world to team-up with airlines. Some airports—Madrid-Barajas, Detroit and Stockholm-Arlanda have allocated land to grow source crops for sustainable biofuels. Zurich Airport has mandated the used of fixed ground power. These are all important moves to improve our environmental performance,” said Tyler.

Infrastructure Investments: “Building infrastructure to handle growth is a challenge best handled in close cooperation between airports and airlines. This includes working together in the airport master planning to ensure that investments are being made that match the needs of airlines,” said Tyler. He pointed to London’s Heathrow Airport where an ongoing dialogue between the airport operator and the airlines is helping, among other things, to promote capacity expansion, optimize existing capacity, take advantage of developing technology, mitigate noise and emissions, enhance surface access and improve operational resilience. “There are robust discussions on price, affordability and service standards, but what is important is to have an open and honest dialogue on our common future and a rolling capital expenditures (CAPEX) plan to accommodate aviation’s dynamic nature,” said Tyler.

Cost-Efficiency: Tyler also reiterated the importance of cost efficient, affordable airports with charges in line with International Civil Aviation Organization (ICAO) principles. “Airlines and airports are in a business relationship. And it is a tough business. Airlines are expected to make a margin of 1.2% this year and 0.8% in 2012. Airports will be under similar pressure. In fact, regardless of the economic situation, there is a natural tension in the supplier-customer relationship between airports and airlines. But let’s keep focused on the fact that airlines and airports both need to be financially sound financial partners that are able to plan and grow our businesses together,” said Tyler. Tyler proposed innovation in four aspects of the ongoing discussion on airport charges:

Airline engagement in major capital expenditure development

More transparent and meaningful consultation processes

Longer-term charges agreements which include service level agreements

Development of innovative concepts for risk sharing

ACI

IATA congratulated ACI on 20 years of industry leadership. “ACI—the collective voice of the world’s airports—has played a critical role in developing global aviation. And I am confident it will continue to do so, I hope in even greater partnership with IATA and the airlines. With openness to innovation and a common understanding of the issues and the potential, I am convinced that together we can direct the future of a sustainable aviation industry that is an even more successful driver of national and global economies,” said Tyler.

Isra-Mart srl: Asia airline body raps EU plan for carbon tax

2011-11-03T09:44:00.000-07:00

"Essentially, it's Europe versus the rest," said Andrew Herdman, of the Association of Asia Pacific Airlines (AAPA) which is holding its annual meeting in Seoul.

But Herdman called for caution by governments contemplating retaliation, saying a trade war would hit aviation especially hard.

The European Union from January 1 plans to compel all airlines travelling to and from the continent to buy carbon permits to offset their emissions.

The plan has sparked protests from numerous nations, and US legislators are proposing a bill which would effectively make it illegal for their country's airlines to obey the directive.

Herdman told a briefing that airlines including US carriers are ready to comply with the EU Emissions Trading Scheme "because the penalties for non-compliance don't bear thinking about".

But foreign governments had woken up to the development and were starting to make their own objections heard.

"We hear a number of governments contemplating retaliatory measures of one form or another," Herdman said.

"Personally I don't look forward to a trade war, especially in aviation, because we'll be getting hit by both sides."

He described the dispute as "high-stakes" and political. "I don't think it will be resolved in the courts... one way or another it will end up as some sort of political negotiation."

Herdman said the EU "over-reached" in extending the carbon tax to all outbound and inbound flights.

"When you are going to design an international emissions trading scheme, the idea -- that you can design it to cover international airlines without getting the consent of foreign governments -- doesn't fly," he said.

The AAPA director-general said airlines did not rule out market-based measures including emissions trading to help the industry meet its own commitment to cut greenhouse gases.

But Europe should have followed the example of New Zealand and Australia and started the system domestically, to show it was workable, he said.

The AAPA said traffic results for September showed sustained growth in international passenger traffic, but a slowdown in European and US demand for Asian exports had seen international air freight traffic continue to decline.

It said in a statement that Asia-Pacific airlines flew a total of 16 million international passengers in September, a 5.4 percent increase over the same month in 2010.

Isra-Mart srl: Airlines Ballyhoo Greenhouse Plans, Then Complain About Cost

2011-11-03T09:43:00.000-07:00

www.isramart.com

U.S. airlines are addicted to the concept of nickel-and-diming customers for each additional cost they can pass along, from baggage fees, to food, to fuel, to imperceptibly “better” seats.

But for some reason they are upset about a European Union plan to charge them for their carbon dioxide emissions on flights going to and from EU countries, despite the fact that all the U.S. carriers who have complained about the EU plan boast about their strategies to lower their “carbon footprint.” USA Today reports that the scheme, beginning next year, could raise round-trip ticket prices to Europe by as much as $30.

“Airlines are fighting the program aggressively in court and in the political arena,” the newspaper reported. “The meter starts running Jan. 1 on fees that U.S. airlines estimate will cost them $3.1 billion over the next decade.”

A lawsuit has been launched in England against the so-called Emission Trading Scheme, with the U.S. Air Transport Association, American Airlines, United Airlines, and Continental Airlines as the plaintiffs. The ETS allows airlines to emit 85 percent of 2006 carbon dioxide levels in 2012, and 82 percent in subsequent years, but must pay for credits for any amounts above those levels in a cap-and-tax European trading system. As USA Today noted, “That's where the costs and the grumbling come in.”

What’s the big deal? Just as the airlines love to remind travelers about the privileges they enjoy in paying for a $5 beer and a $15 seat a few rows closer to the exit, they can easily sell the additional charge that comes with saving the planet from global warming – right?

After all, just look at how seriously the airline industry has taken its role in the reduction of its contribution to greenhouse gases in the atmosphere. American Airlines says on its Web site, “Our long-term goal is to improve our fuel efficiency by 30 percent within 20 years. Upgrading our fleet with new, lighter, more fuel-efficient jets that also offer our passengers more comfort and amenities will continue to be one of our chief strategies for reaching that goal.” Hope that doesn’t compromise safety!

And from its “sustainable” Admirals Club at San Francisco (where else?) International Airport, to the beverages it serves in-flight, AA carries its environmental conscientiousness to absurd levels: “By changing to single-service decaf coffee, we have reduced excess weight onboard, reducing fuel burn and emissions.” However, one eco-unfriendly practice remains in place:

“Styrofoam cups…are much lighter than paper, and so they help reduce fuel use….Sometimes, when you’re working to be good to the environment, you have to make trade-offs. For now, we’re using Styrofoam for serving your hot coffee or tea safely while reducing your carbon footprint when you fly.”

United Airlines similarly shows off its eco-mindedness, claiming it has “reduced CO2 emissions on our mainline fleet by 11 percent from 2008 to 2009, in direct correlation to our capacity reductions, while continuing to improve our fuel efficiency.” United is so proud of its “corporate social responsibility” that it boasted in its 2009-2010 report:

We put significant resources towards efforts to address climate change, and actively engage with our domestic and international industry associations…on the environment and other industry issues. And in 2009, we were actively involved in formulating the industry’s global vision and promoted the industry position at the sixteenth Conference of the Parties (COP 16) to advance the United Nations Framework Convention on Climate Change. Through this international forum, we helped address climate change for our industry as a global issue with a global solution.

And then there is Continental Airlines, now merged with United.

“We support a global approach to addressing greenhouse gas (GHG) emissions in the commercial aviation industry,” Continental’s “Eco-Skies” Web page says. “Together with other airlines, engine and airframe manufacturers, fuel suppliers, airports, and governments, we’re working toward collective industry goals, including 1.5 percent average annual fuel efficiency improvement through 2020, carbon neutral growth beginning in 2020, and a 50 percent reduction in CO2 by 2050 relative to 2005 baseline levels.”

Surely those sentiments warm the hearts of the target-minded Henry Waxmans and Barbara Boxers of the world, but as the corporate world never learns, attempts to appease environmentalists never pay off. For example, you’d think eco-grader Climate Counts would be impressed with the efforts by the airlines, but instead American, United and Continental rate poorly in their greenhouse gas reduction achievements. The carriers can spend and say all they want in the name of fighting the fantasy that is global warming, but all it will earn them from Greenpeace and other environmental groups are accusations of “Greenwashing.”

Nevertheless the U.S. air transport industry has played the game, spent money to become “sustainable,” crowed about it, but now balks at EU efforts to make them a full team player? Corporate executives need to learn that environmentalism never stops, because even though you comply with their initial demands, they will always clamor for more.

Isra-Mart srl: Airline dispute exposes U.S., China climate inaction-Gerard Wynn

2011-11-03T09:27:00.000-07:00

A European Union plan to charge airlines for their carbon emissions has made unlikely allies of China and the United States in a trade dispute which underlines a failure in climate leadership by the world's top two emitters.

Their resistance could sap progress at a U.N. climate conference in Durban which starts later this month and may be a forerunner of similar disputes, for example over prospective EU environmental limits on fuels including Canadian crude from tar sands and Asian biofuels.

The EU from January next year will require all flights into and out of Europe to account for every tonne of carbon emissions, including those outside European airspace, and buy permits where these exceed a certain quota.

A majority of countries in the 36-member, U.N. International Civil Aviation Organization (ICAO) on Wednesday adopted a non-binding declaration urging the EU to refrain from the measure, which effectively includes flights from non-EU airlines in the bloc's emissions trading scheme.

Emerging economies argue that border measures lump them with richer countries, forcing them to take equivalent climate action and so contradicting a 1992 U.N. Climate Convention which puts the onus of carbon emissions cuts on developed countries.

Both U.S. and developing country opposition to the EU airline plan has focused on a preference for multilateral action, among other, legal objections for example that the plan counts as tax on jet fuel.

The positions seems inconsistent.

Clearly it's optimistic to expect Europe both to take world-leading climate action and only regulate consumption of products made inside its own borders, exempting imports and hurting its own industry.

And by exercising balancing border adjustments the bloc is applying measures similar to those included in a draft U.S. climate bill, which ultimately failed to pass the Senate last year, but which did pass a House of Representatives which voted last week to ban U.S. airline compliance with the EU plan.

GLOBAL ACTION

The opposition drives home how a rather small trade measure - the EU estimates it will add $1-9 each way to the cost of a long-haul ticket - can leverage a lot of politics.

And there's more to come: the EU's executive Commission is also working up plans to limit the use of more carbon-emitting fuels, threatening biofuel imports from Malaysia and Indonesia and oil extracted from tar sands in Canada, under its Fuels Quality Directive.

Imposing border tariffs, adjustments and other limits inevitably raises tensions.

Perhaps for that reason, the EU has so far chosen to shield its domestic steel and cement industries from its emissions trading scheme, giving them free carbon permits rather than penalise local production and take equivalent steps against imports.

Evidence of a global political backlash to its aviation plan is now abundant.

Apart from Wednesday's ICAO declaration, U.S. airlines have sued the bloc at the European Court of Justice.

And India has tabled an agenda item on "unilateral trade measures" to be discussed at a Durban climate conference which starts later this month.

The move may illustrate a new hardline Indian stance since the departure of former environment minister Jairam Ramesh, who took a committed position on applying green concerns.

The agenda item will mobilise opposition to the EU aviation scheme and likely garner support from holdout countries such as oil exporter Saudi Arabia.

It could also entrench a circular stalemate at multilateral talks where progress would make unilateral action such as that of the EU less necessary.

The Durban meeting will fail in the main aim of the UN talks, to agree a broad, new climate deal to succeed the Kyoto Protocol whose present round expires in 2012, largely because domestic politics at present will stop the United States from ratifying a deal.

But there is much to play for, both on a face-saving commitment to reach agreement in 2015 or so, and in the meantime to mobilise aid for countries most vulnerable to temperature and sea level rises.

Isra-Mart srl: Could Scots independence damage green energy investor confidence?

2011-11-03T09:22:00.000-07:00

www.isramart.com

Scotland's First Minister has downplayed concerns that his party's ambition for full independence could conflict with its hopes of delivering billions of pounds of renewable energy investments.

Citigroup yesterday published a report urging "extreme caution" over investing in Scotland's renewables energy sector, on the grounds the Scottish National Party's plans for a referendum on independence would create huge uncertainty at the same time when major decisions on green projects are needed.

The report also argued that an independent Scotland would be too small to generate the annual £4bn subsidy which could be initially required to drive the move to a low carbon economy.

"Continued subsidy from consumers in England and Wales would be required, but Scotland seceding from the UK would clearly place this subsidy stream at grave risk," it said.

"Renewable investors risk seeing their assets stranded in a newly independent Scotland."

However, First Minister Alex Salmond dismissed the concerns, telling the BBC that the analysis failed to take account of the export market.

"In order to get anywhere near the renewable energy obligations that London is going to have, England is going to have to have Scottish renewables from the sea," he said.

"Perhaps the reason why all these international companies are committing funds to Scotland is because in 10 years' time, without Scottish offshore wind power, then there would be a severe danger of the lights going off in England. I don't think anybody is going to want or allow that to happen.

"Believe me, in the modern world the ability to produce power is a great asset, not a liability."

Isra-Mart srl: Tidal energy could power giant Thames Estuary airport

2011-11-03T09:20:00.000-07:00

www.isramart.com

A £5bn tidal energy scheme forms the centrepiece of hugely ambitious £50bn redevelopment plans for the Thames Estuary, which were unveiled yesterday by celebrated architect Norman Foster.

The Thames Hub project, designed by Foster + Partners and Halcrow, would see a barrage installed with in-stream tidal power arrays, new flood defences, and a total re-vamping of the region's transport infrastructure.

A new flood barrier 500 metre wide and 5km long would incorporate a hydropower array with the potential to produce up to 525GWh/year of energy.

The architects said this would be sufficient to supply 76,000 homes or meet demand at a giant new airport on the Isle of Grain, capable of handling 150 million passengers per annum and replacing Heathrow as the UK's main aviation hub.

As many as 1,000 extra 60-90kW turbines could also be fitted on the estuary bed or on floating pontoons, which along with the tidal array, could make use of the connecting infrastructure currently being installed for the London Array offshore wind farm.

The barrier would support a new road crossing and host conduits for high voltage
power, broadband fibre, and water distribution.

The scheme also includes a high-speed passenger and freight rail route running around London, which would link the airport to the planned high-speed rail line to the Midlands and the North, the Thames Estuary ports, and Europe via the Channel Tunnel.

The project could take 10 to 15 years to build and cost around £50bn, although the developers estimate the Orbital Rail route, the Thames Barrier, and the new Estuary Airport will deliver up to £150 billion in economic benefits.

The UK's creaking energy, transport and technology networks were ranked as significantly worse than its European competitors in a September CBI survey, a situation that Foster said required "the foresight and political courage of our 19th century forebears", to rectify.

"Great challenges require bold solutions, which is why I believe our Thames Hub vision is critical to society and to the country's economic prosperity," added Halcrow group board director, David Kerr.

"If we don't sustain and invest in infrastructure, then it's at our peril. If the UK is to remain globally competitive, these proposals need to be seriously considered."

However, the project is expected to face intense opposition from green groups who have warned any increase in renewable energy capacity in the region would be more than offset by the increase in flights resulting from the new airport.

Isra-Mart srl:Shipping emissions must be included in 2050 carbon target

2011-11-03T09:19:00.001-07:00

www.isramart.com

The government should include emissions from UK shipping in its 2050 carbon targets and step-up efforts to decarbonise other sectors, the influential Committee on Climate Change (CCC) will say today.

Carbon emissions from both shipping and aviation are currently excluded from the limits set by the Climate Change Act, which stipulates only 160 million tonnes of CO2 can be emitted by the UK by 2050 - a reduction of 80 per cent on 1990 levels.

However, the CCC's new report, out later today, warns the country's share of global shipping emissions could equate to up to 18MtCO2 by 2050 - around 11 per cent of the UK's overall carbon budget, and a level that the committee says is too high to be ignored.

"[The report] confirms shipping emissions are material and if we're not talking about shipping emissions we are missing a potential non-trivial source," David Kennedy, chief executive of the CCC, told reporters at a briefing earlier this week. "They should definitely be included in the [2050] target, as not having them would lead us to proceed in a way not consistent with the Climate Change Act."

One stumbling block to shipping's inclusion in the carbon budgets could be the implications for the wider economy, which would then have to deliver deeper emissions cuts than currently planned in order to compensate for the impact of shipping.

Kennedy said the UK would have to go further and faster in its efforts to cut emissions if shipping is included in the target as recommended. "You're looking at fully decarbonising power, heat in buildings and surface transport, particularly cars and vans [by 2050]," he said.

The proposed change could also pose legal issues as definitive current and future levels of emissions would have to be calculated if shipping emissions were to be included in the legislation, a task which Kennedy and the CCC acknowledge is highly problematic due to varying methodologies for recording shipping's emissions and patchy carbon data.

Using sales of bunker fuel at UK ports, the government estimates UK shipping emissions at around 10MtCO2.

However, many experts believe the government's figures are an underestimate as ships importing and exporting goods from the UK frequently refuel at cheaper European ports.

Last year, the Tyndall Centre for Climate Change Research calculated emissions of shipped goods exported from or imported into the UK and concluded emissions for the sector reached between 31 and 42 MtCO2.

The CCC's estimate that the sector's emissions reach 12 to 18 MtCO2 is based on the UK's 150,000 shipping arrivals in 2006. But the committee acknowledges that projections are fraught with difficulty as cargo is frequently unloaded at different ports before arrival in the country.

The CCC report sets out three alternative recommendations for the government: including shipping emissions in the 2050 target and carbon budgets immediately; including them once an accurate methodology has been determined; or including them in the 2050 target now, but only incorporating them in the rolling five year carbon budgets when a method for measuring emissions has been finalised.

Kennedy said one or possibly two options would be formally recommended to government in the CCC's formal advice on including shipping and aviation in the carbon budgets, set to be published in March.

The call to include shipping was welcomed by Richard Dyer, Friends of the Earth's transport campaigner.

"Leaving out the UK's share of international shipping from our climate targets would be like an alcoholic giving up all booze except whisky," he said in a statement. "Ignoring the growing climate impact of shipping would be a titanic mistake, which could sink our ability to develop a safe and prosperous future."

Dyer also echoed the CCC's call for more efforts to be made to limit the environmental impact of international shipping, which is estimated to make up around three per cent of global emissions.

Earlier this year, industry negotiations at the International Maritime Organisation (IMO) came up with a series of energy efficiency targets for new ships.

But Kennedy said there is significant scope to reduce emissions further, which would take pressure off the rest of the economy to cut emissions.

Powering vessels with biofuels or liquefied natural gas (LNG) could cut carbon intensity, the report says, while travelling at slower speeds and making use of technology such as towing kites should reduce fuel usage.

The government should also work with the EU to gain access to fuel-use data from ship operators to better calculate current emissions and support market-based approaches to reducing shipping emissions at a European level if an international agreement continues to prove elusive.

Trade body the UK Chamber of Shipping said that while it welcomed shipping becoming part of the 2050 targets, any market-based measures, such as carbon trading or a fuel levy, must only be brought in at an international level through the IMO.

"Any solution must be global rather than regional to avoid distorting world trade and potentially damaging an industry that is vital to the future prosperity of the United Kingdom," David Balston, director of safety and environment at the UK Chamber of Shipping, said in a statement.

His view was echoed by Søren Stig Nielsen, head of sustainability at Maersk Line, who rejected the CCC's view that the Energy Efficiency Design Index (EEDI) agreed in July is insufficient to tackle the sector's emissions.

"The industry has to step up and handles its share of emissions ... but our position is this is best done at IMO level," he said at a Sustainable Shipping Initiative event earlier in the week. "EEDI is a good step in the right direction and other steps will follow. Regionalised or patchwork legislation will not work for the environment or the industry."

Shipping minister Mike Penning said the government welcomed the review and would respond to next year's formal recommendation "in due course."

Isra-Mart srl: Barker accuses Labour of 'knee-jerk opposition' to solar subsidy cuts

2011-11-03T09:14:00.000-07:00

www.isramart.com

The cross-party spat over solar feed-in tariffs has intensified after climate change minister Greg Barker wrote to Labour's shadow energy and climate change secretary, Caroline Flint, accusing her of "knee-jerk opposition" to the government's proposed cuts to subsidies.

In an open letter published on the Conservative Home website, Barker accuses newly appointed Flint of being in league with solar industry lobbyists and failing to support ordinary people facing mounting energy bills.

It makes clear the government's frustration at Labour's criticism of the proposals announced on Monday, which aim to cut feed-in tariffs (FITs) for solar installations by about 50 per cent, arguing that the opposition has failed to present any concrete ideas of its own on how to reform the scheme.

The industry has warned that the pace and scale of the proposed cuts will result in job losses and kill off a wide-range of solar photovoltaic (PV) projects.

But in the letter Barker, who is believed to have actually fought with colleagues for lesser reductions, said the changes were necessary to keep within the scheme's £867m budget and not add extra costs onto energy bills.

Without action, Barker warned that tariffs for solar PV could cost consumers £1bn a year by 2014-15, adding £26 to annual energy bills by 2020.

The letter expressed his surprise that in Parliamentary exchanges earlier in the week Flint said the reductions were "yet another example of a government which is out of touch", before demanding to know by how much Labour would increase the budget and how high she was prepared to let energy bills rise.

"Through your knee-jerk opposition to our changes you are effectively calling on the government to substantially increase energy bills," Barker wrote. "Your comments place you on the side of the solar industry lobby and against hard-pressed families struggling to pay their bills. I am afraid they starkly expose the cynicism of the position that Labour has taken on energy prices."

As a final sting in the tail, Barker wondered why, if as Flint said Labour were "proud" to have started feed-in tariffs, the party voted against the scheme in April 2008 and "was forced to introduce FITs only after it was defeated in the House of Lords".

A spokesman for Flint said she would be responding and dismissed the letter as "bizarre".

"Considering the cuts have put 25,000 jobs on the line, writing letters seems a bizarre priority," he told BusinessGreen. "Caroline fully stands by her statements in Parliament."

Barker is also continuing to face criticism from solar firms that have today complained that the minister has so far failed to honour a commitment made at a solar conference last week to meet with industry representatives this week.

One industry source told BusinessGreen that a coalition of solar firms had been told by DECC officials that Barker was keen to host the meeting, but diary constraints meant it had yet to be scheduled.

"This is just another example of how a sector that now employs more people than the nuclear industry is being short changed, and has not even been granted the promised opportunity to discuss these potentially devastating changes with the minister," said one source.

Isra-Mart srl: Solar subsidy fiasco sparks panic buying

2011-11-03T09:11:00.001-07:00

www.isramart.com

Homeowners and businesses have started panic buying solar photovoltaic (PV) panels, following the announcement of the government's controversial plans to dramatically cut feed-in tariff incentives for projects registered after 11 December.

Leading PV installer EvoEnergy said that it is getting hundreds of calls from people desperate to beat the December deadline. Inquiries reached 400 a day between Monday and Wednesday, a four-fold increase on the usual 100 inquiries a day.

The boom was sparked by the launch of a Department of Energy and Climate Change (DECC) consultation on Monday proposing that anticipated cuts to subsidies for solar power will take effect from 12 December, instead of the expected 1 April 2012 date.

Under DECC's plans, anyone who registers a PV installation smaller than 4kW after midnight on 11 December will initially receive the current higher feed-in tariff rate of 43p per kWh, but the incentive will then drop to 21p per kWh from 1 April.

The phased introduction of the reduced feed-in tariff rate appears to be tailored to allow the government to introduce the changes early, even though the official consultation on the new tariffs will not end until 23 December. The timeline means that installations completed after 12 December could be assigned different rates post-April 2012 depending on the results of the consultation.

However, anyone who registers PV panels before 12 December is guaranteed the current 43p per kWh rate for the 25-year life of the feed-in tariff scheme.

Kevin Hard, chief executive of EvoEnergy, said that orders have been flooding in since the announcement on Monday, adding that some people are buying panels immediately in an attempt to meet the December deadline.

"What's most striking about the calls is that people are ringing up ready to buy there and then," he said. "In the past it's been a process that's taken a few weeks as people think over the decision. We think they should still do that."

A spokesman for EvoEnergy told BusinessGreen it is "highly unlikely" that anyone installing on 11 December will be able to get approval in time for the higher feed-in tariff rate, and the company plans to issue a suggested cut off date for new orders shortly.

EvoEnergy also said that its order books are now full right up to the deadline, and that the company is now booking orders for after 11 December. EvoEnergy is advising people not to "panic-buy", arguing that solar PV will remain commercially viable if the new rates are confirmed.

If brought into effect, the new tariffs will reduce the 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 maintains that the new rates of return will still prove attractive as they exceed the returns available from many other savings options. However, the industry has warned that they are too low to attract private finance and that free solar and social housing schemes will be closed as a result.

The reported surge in demand will provide ammunition for the government's argument that rapid cuts to incentives are necessary to stop a 'gold rush' that would push the feed-in tariff scheme over budget.

However, while some firms are seeing a rush of interest in new installations, others are seeing a more muted response from customers. A number of councils and businesses have also confirmed that they are cancelling projects that cannot be completed before the 12 December cut off.

A spokeswoman from Homesun, another leading installer, told BusinessGreen that enquires have been stable, but that the company is receiving calls from "angry and confused" existing customers concerned by the cuts.

She warned that solar installers will see a large drop in demand from next month because the new rates almost double the payback period for solar installations to 20 years.

"The thing about solar is that you attach it to your house, so it's difficult to compare to other kinds of financial investments such as ISAs," she said.

"The median length of time people stay in a house is eight years, but if you ask them how long they think they will stay, it's five. You can't even pay back before you move house. The only people who will want solar panels now are the wealthy who have £10,000 to spare."

The spokeswoman added that Homesun has earmarked 5 December as the cut off installation date for anyone seeking to secure the current higher feed-in tariff.

Meanwhile, The Guardian reported yesterday that a host of solar projects are now facing the axe, including proposed installations by the RSPB, Norwich Council, Morecambe Bay Community Renewables and South Yorkshire Housing Association.

Isra-Mart srl: Exempt international airlines from EU carbon plans, UN body says

2011-11-03T09:07:00.000-07:00

www.isramart.com

The UN's aviation body has adopted a statement asserting that international airlines should be exempt from the EU's plans to cap the industry's emissions, raising the prospect of an all-out trade war.

The non-binding working paper was promoted by 26 nations, including China, Russia and the US, at this week's meeting of the International Civil Aviation Organisation (ICAO) in Montreal.

Despite opposition from European members, the ICAO said that the paper has been adopted by "a clear majority", underlining mounting tension over the EU's plan to impose an emissions levy on flights.

Airlines would be compelled under the Aviation Directive to buy permits in the EU's emissions trading scheme (EU ETS) to cover emissions for flights arriving at and departing from the region's airports.

The move, which will come into force in January next year, has incensed non-EU carriers which argue that it is a breach of international treaties and discriminates against airlines furthest away from Europe.

A court case brought to the European Court of Justice by a US trade body was dismissed last month, but countries have turned up the pressure in other ways. The US lower house passed a bill that will impose heavy fines on any of its carriers complying with the scheme, while China put its purchase of 88 Airbus A320 planes on hold in protest.

But, despite the pressure, the EU has repeatedly refused to back down, arguing that regional action is necessary given the sluggish progress to agree a global deal to tackle the aviation sector's emissions, estimated to make up around three per cent of the global total.

The EU's climate action commissioner, Connie Hedegaard, reiterated the region's position last night, saying that ICAO had missed another opportunity to "tell the world when it will table a viable global solution".

"It is disappointing that ICAO discussions once again focus on what states should not do instead of what they should do to curb growing aviation emissions," Hedegaard said in an emailed statement.

"But this decision will affect neither the EU's commitment to working within ICAO to agree on a global solution, nor our adopted legislation to include aviation in the EU ETS."

US non-profit group the Environmental Defense Fund (EDF) was quick to point out that the adopted statement is not legally binding and has no obligatory power.

"While the airlines may try to claim this is a Council 'ruling', the ICAO president made very clear this morning that the 'declaration' is simply that - a political expression of a group of countries that their airlines aren't happy about having to comply with pollution controls," said EDF attorney Pamela Campos, who was present at the meeting.

"Any formal legal action would have to follow very different procedures that were not considered today."

Meanwhile, WWF said that the ICAO should put its energies into complying with the legislation rather than trying to block the move.

"Everyone would prefer to see a global deal for aviation but, until this is in place, we need the ETS as the world's first mandatory scheme to tackle aviation emissions," said Samantha Smith, leader of WWF's global climate and energy initiative.

"It should be used to speed up progress towards a global deal, not detract from it, so ICAO should be giving it their full support."

Isra-Mart srl: Cornish geothermal plant gets £6m government boost

2011-11-03T09:06:00.000-07:00

www.isramart.com

Plans to build the UK's first commercial-scale geothermal power plant have taken a major step forward after the company behind the £50m project secured a £6m government grant.

Cornwall-based Geothermal Engineering announced on Monday that it has been awarded the grant from the government's £1.4bn Regional Growth Fund.

Once fully operational, the plant is expected to have a 10MW capacity and will also provide up to 50MW of renewable heat energy for the local community – the equivalent of heating 20 schools for a year.

The company aims to begin drilling the first well onsite in late 2012.

Ryan Law, managing director of Geothermal Engineering, said the award marked a major step forward for the industry.

"We are pleased the government has recognised the potential of the deep geothermal industry in the South West of the UK," he said. "The grant will be used to leverage significant levels of private funding into the United Downs deep geothermal project."

He also said the grant would help to counter the government's recent refusal to increase support for geothermal as part of its review of the Renewables Obligation Certificate (ROC) scheme.

The Department of Energy and Climate Change launched a consultation last month, proposing to maintain the current level of saleable ROCs issued to geothermal power plants at 2 ROCs/MWh, then cutting the level to 1.9 ROCs in 2015/16, and 1.8 ROCs in 2016/17.

The industry had been calling for greater support, arguing that subsidies will have to increase if the UK is to have any chance of establishing itself as a significant player in the global geothermal energy market.

"The geothermal industry was disappointed at the outcome of the Renewable Obligation Certificate Review published at the end of October," added Law. "However, this grant will help the industry move forward."

Geothermal Engineering already has planning permission to build the plant, which is located at the United Downs, near Redruth in Cornwall. A research centre into geothermal energy is also planned in conjunction with the University of Exeter Sustainability Institute.

In addition, the company hopes that once the first plant is operational it will be able to build further projects across Devon and Cornwall, which could produce up to 300MW of electricity in total.

Isra-Mart srl: Scottish government slams proposed solar incentive cuts

2011-11-03T09:04:00.000-07:00

www.isramart.com

The Scottish government has added its voice to the growing clamour for a rethink on the coalition government's proposed cuts to solar feed-in tariff incentives.

Energy minister Fergus Ewing today issued a statement criticising both the proposal to halve the level of support for solar installations and the move to impose the changes within six weeks.

"Cutting the feed-in tariff so sharply, and with so little warning, will have a devastating impact on families and businesses across Scotland," he said.

"This change will be a body blow both to the blossoming Scottish solar industry and to thousands of households across Scotland that will lose their chance to escape from fuel poverty."

According to figures from the Scottish government, more than 1,300 solar installations were completed in Scotland in September alone.

However, Ewing warned that the government's proposed cuts will put a raft of future projects at risk, including Glasgow Housing Association plans to install panels on 500 homes and Dundee City Council's proposals to fit panels on 1,000 homes.

"Companies with full order books that have invested in recruiting and training new staff, including many I have visited in the past few months, will find the carpet pulled from under them as the numbers on which they have based their business plans are changed, suddenly and without warning," he said.

"Families in social housing, who were expecting to be able to live without dreading their electricity bill, will be deeply affected by this change."

He added that he had written to energy and climate change secretary Chris Huhne, urging him to "reconsider both the speed of these cuts and how he will prevent those in most need being hit most".

BusinessGreen has also learned that the Environmental Audit Committee of MPs will this afternoon issue a call for evidence on the proposed changes to feed-in tariffs and the likely impact on the industry. The session could result in either a full report on the controversial changes or publishing of the evidence gathered.

The government has consistently maintained that the proposed cuts are necessary to halt the current rush of solar installations, which it claims are threatening to push the feed-in tariff scheme overbudget, resulting in higher energy bills.

Isra-Mart srl: Delaying cuts to feed-in tariffs would cost households less than £1 a year

2011-11-03T09:00:00.000-07:00

www.isramart.com

Delaying the government's proposed cuts to solar feed-in tariffs until April next year would add between 10p and £1.60 to annual energy bills, according to the Department of Energy and Climate Change's (DECC's) draft impact assessment of the controversial changes.

The 27-page document (PDF) was published on the DECC web site yesterday, providing an assessment of the economic, financial, and environmental impact of the government's choosing to maintain solar incentives at current levels, impose deep cuts to incentives from April next year as originally planned, or bring cuts into effect from 12 December as proposed earlier this week.

The assessment confirms that, if the government makes no changes to solar feed-in tariff incentives, the scheme will quickly exceed its spending cap, leading to an increase in average domestic energy bills of almost £26 a year by 2020.

In contrast, it shows that the government's preferred option of halving the level of incentives available to small solar installations, and applying the lower rate from April next year to any installation completed after 12 December, would limit the impact on average annual energy bills by 2020 to £2.60 to £3.20, assuming that the government also introduces new standards to limit installations to energy efficient buildings.

The proposal effectively to impose the cuts to incentives with just six weeks' notice has drawn a furious response from solar firms, which have warned that it will not give them long enough to complete orders and manage stock ahead of an anticipated reduction in demand.

A number of firms are expected to take legal action against the government over the pace of the changes, with complaints focusing on the decision to impose the changes to the feed-in tariff scheme before the completion of the consultation on the proposed reforms.

The government has maintained that the cuts need to come into effect quickly to head off a rush of new installations that would exceed the scheme's budget, resulting in significant increases to energy bills.

The impact assessment shows that delaying the cuts to incentives until April next year, as had been anticipated by solar firms, would result in an increase in installations. But it also calculates that those extra installations would lead to an increase in average annual energy bills in 2020 of just £3.30 to £4.20, again assuming that the government's proposed energy efficiency standards are introduced for future solar installations.

Solar industry insiders said that the impact on energy bills of delaying the proposed changes until April next year would therefore range from just 10p at the lowest end of the government's estimates to £1.60 at the high end, compared to the estimated impact of the current proposals.

Taking the mid-point of the government's estimates for the two scenarios the likely increase in energy bills from delaying the proposed changes until April is 85p a year.

"The assessment shows that, if there is the political will to find a compromise, we are talking about peanuts to pay for it," said one industry source. "DECC hasn't done the modelling for it, but the assessment suggests that, if there was a sensible delay that gave firms more time to prepare, the impact on energy bills in 2020 would be around 20p to 30p a year."

A DECC spokeswoman reiterated the government's view that "urgent action" is needed to stop the feed-in tariff scheme exceeding its funding allocation for the current spending period.

"The Impact Assessment notes that we estimate the costs to consumers (nominal, undiscounted) of Option 2 (tariff reductions from April 2012 to installations with eligibility dates from 12 December 2011) will be £320m-£350m in 2014-15 versus a FITs budget of £357m, whereas for Option 3 (delaying the tariff reductions until April 2012) the estimated range is £390m-£430m," she said.

The latest development comes as solar firms reported that they have received a glut of orders from households and businesses hoping to complete installations before 12 December, while several councils and businesses confirmed that they are cancelling high profile projects, leaving solar firms facing huge liabilities.

A number of companies are now recommending that the government delays any changes to the feed-in tariff until late January or early February, a move they argue would give firms enough time to complete their current order book, clear pre-ordered stock, and limit the financial liabilities as a result of the cuts.

The impact assessment also reveals that official government figures show that, far from seeing costs fall by up to 70 per cent, as Climate Change Minister Greg Barker has suggested, the industry has in fact seen installation costs fall by 30 to 40 per cent since the launch of the feed-in tariff scheme.

Moreover, the smallest installations, which now face cuts to incentives of over 50 per cent, have seen the lowest reductions in installation costs, with the estimated cost of a 2.6kW installation falling 30 per cent from £13,000 to £9,000.

Isra-Mart srl: Ofgem eyes changes to UK electricity cash-out system

2011-11-02T09:09:00.000-07:00

www.isramart.com

British energy regulator Ofgem has set the wheels in motion for changing the UK wholesale electricity market's cash-out price system.

The planned evolution of the UK electricity market has led Ofgem to suggest that the system needs a serious overhaul. The regulator has linked changing the cash-out price with its drive to increase liquidity in the UK wholesale power market.

The overhaul would alter the cash-outs paid by traders to transmission system operator National Grid when they have caused system imbalances.

The UK government's electricity market reform is one driver of the need for change. The potential introduction of capacity payments - which will pay generators to keep some plants running to be used as reserve capacity - needs to be considered side-by-side with the cash-out price, said Ofgem in its consultation published late Tuesday.

The government is due to publish the finer details of the makeup of the capacity mechanism at the end of the year, but it is possible that the cash-out price might have a direct role in it.

Increasing amounts of renewables generation coming onto the grid and the mothballing of older existing plants are also important drivers of change.

Possible changes

National Grid has already launched its own consultation on the balancing mechanism because of the effect of intermittent wind-generated power coming onto the system (see EDEM 20 September 2011).

Ofgem is looking at taking two approaches. The first the so-called "narrow scope" approach would introduce incremental changes.

The second the "wide scope" approach could potentially make substantial changes to the system, such as a new pre-gate closure balancing market to clear energy imbalances.

Potential changes to balancing could include the creation of a reserve market in the form of a day-ahead auction.

Ofgem mentioned that an alternative to the current system includes a centralised market for intermittent renewables, although the regulator ruled out a change to a pool-based system for the whole market, which was on the options set out in Ofgem's Project Discovery.

Ofgem has launched a consultation on whether it should open a significant code review into the cash-out price − the next stage in making changes. The consultation ends on 24 January, which means that any code review can take account of the makeup of the capacity payments. It is expected that a code review could take about 12 months.

Isra-Mart srl: UK spot natural gas down 21% on Norwegian flows

2011-11-02T09:08:00.001-07:00

www.isramart.com

The UK prompt gas market crashed on Wednesday morning as a jump in Norwegian flows to the UK caused an oversupply as temperatures above seasonal norms meant low demand continued.

The Within-day contract reached a low of 47.10 pence/therm (54.64 euro cents/therm), according to traders, 9.90 p/therm or 21% below the price at the close of the previous session.

By 11:50 GMT, Within-day was back to 50.60 p/therm.

The key Day-ahead contract reached a low of 51.50 p/therm, 9% down from Tuesday's close.

"Given the price crash we saw on the prompt this morning, we could see Norwegian flows to the UK fall back again, but if they need to hit volume targets by the end of the year the higher rates could persist," said one trader.

Flows through the Langeled pipe - which links Norway with the UK - had risen to a rate of around 70 million cubic metres (Mm³)/day by Wednesday morning, up from below 40Mm³/day the previous afternoon.

Imports through the BBL pipeline between the Netherlands and the UK also jumped on Wednesday morning. This was one day later than the typical rise in BBL imports that usually comes on 1 November, when the higher-volume winter period of the contract between Dutch GasTerra and Britain's Centrica kicks in.

System length was greater than 40Mm³ early on, but a rise in UK exports through the Interconnector pipe to Belgium helped bring the market closer into balance.

Other prompt and near-term contracts also traded down, on the arrival of warmer weather forecasts for the coming week, which would push demand further below normal levels.

Isra-Mart srl: Optimization Engineers joins EEX as new natural gas market maker

2011-11-02T09:04:00.000-07:00

www.isramart.com

Natural gas distribution company Optimization Engineers GmbH will join European Energy Exchange AG (EEX) as a new market maker, the exchange said on Monday. The Hattingen-based company will be the first market maker to quote only in 1MW contracts on the spot market in the GASPOOL and NCG market zone.

"This might be a signal for other smaller or medium sized energy companies to become actively involved in the trade for smaller volumes at EEX," Klaus Schäfer, Optimization Engineers' managing director, said.

As a market maker, Optimization Engineers will submit bids and offers for spot market products at the same time during the trading day, which is supposed to improve liquidity by narrowing the bid/offer spreads.

According to Schäfer, Optimization Engineers trades volumes of around 400-500GWh per year and distributes gas for about 20,000 private customers and smaller commercial customers. At EEX, Optimization Engineers has been licensed since the beginning of 2010 and also trades on the derivatives market.

"The 1MW contracts facilitate optimisation on the natural gas spot market of the exchange for small and medium-sized traders," explained Oliver Maibaum, managing director of the exchange.

The other EEX market makers for the natural gas spot market are E.ON Energy Trading SE, RWE Supply & Trading GmbH and Vitol S.A. EEX offers spot and derivatives trading in power, gas and carbon dioxide emission allowances, as well as trading in financial coal futures.

Isra-Mart srl: High demand for Zeebrugge/NCG cross-border natural gas capacity

2011-11-02T09:03:00.000-07:00

www.isramart.com

A bundled Day-ahead cross-border capacity product between Zeebrugge and the German virtual trading point NetConnect Germany (NCG) has received a "positive response," according to the Belgian natural-gas transmission system operator (TSO) Fluxys.

The product, which enables shippers to book bundled capacity at the border, was launched by Fluxys and the German TSO Open Grid Europe on 14 September.

The Belgian TSO said results so far showed the bundled capacity "successfully links two liquid markets and is yet another step towards a European gas market."

On some days, according to Fluxys, the offered capacities have sold out immediately on the opening of the market, reflecting the strong demand and increasingly close connection between the two hubs.

Precisely how many times the capacity has sold out since the launch could not be confirmed, however. Nor was there official comment on the predominant flow of gas.

But the small premium the NCG Day-ahead contract traditionally holds to its Zeebrugge equivalent, as assessed by ICIS Heren, indicates that the majority of gas is shipped from Belgium to Germany.

Since the product's launch, the average premium of the NCG Day-ahead contract to its Zeebrugge equivalent has been €0.27/MWh, according to ICIS Heren data.

Given that the new product has made it easier to flow gas between the two markets on a daily basis, more arbitrage opportunities could be available in the future.

The bundled capacities are sold each day on a first-come first-served basis between 12:00 and 16:00 CET through the Capsquare platform, which is operated by Fluxys and the French TSO GRTgaz and also offers secondary capacity and bundled products between Zeebrugge and France's PEG Nord hub.

Isra-Mart srl: CEGH and NCG natural gas spreads will narrow - Austrian regulator

2011-11-02T09:02:00.000-07:00

www.isramart.com

Spreads between CEGH and NCG natural gas contracts will decrease significantly in the next two years, the CEO of Austrian energy regulator E-control said in an interview with ICIS Heren in Vienna.

Walter Boltz said that liquidity on the Austrian market will be boosted by several changes in the market, but the upcoming approval of the Gaswirtschaftsgesetz (GWG) in parliament should have the biggest impact.

"We hope that the law will be approved within the coming weeks," said Boltz.

The GWG is an amendment to the country's gas industry law that incorporates the measures of the EU's third energy package. It has faced political resistance since March of this year.

However, Boltz believes that by the end of next year, the GWG will have attracted new players and more speculative trading into the Austrian market, which traditionally has been dominated by a few participants.

"In recent years, some market participants have managed to keep our outdated model of a separate transit and internal market by a lot of lobbying work. We always believed this separation to be against European legislation. But things will change with the new law," Boltz added.

The separation of transit and internal nets is an obstacle to free competition on the market, according to the regulator. "Austrian participants do not have access to all of the gas that is being transported through the country," said Boltz.

He added that around 40 billion cubic metres (Gm³) of gas is shipped through the country on the separate transit network each year, while Austria only has an annual demand of around 10Gm³.

"If you want to buy some of the transit gas and sell it within Austria, you have to wait until it reaches Germany and then book capacity for re-transporting it into Austria at Oberkappel," said Boltz.

This system is regarded as complicated and expensive for traders.

Once the GWG is approved, Austria will have an entry/exit model like other European countries and could therefore attract more market participants, since they will not have to concern themselves with capacity problems, said Boltz.

Limited exit capacity at Oberkappel

The transit point between Germany and Austria at Oberkappel is subject to a different capacity allocation problem.

Boltz said: "If there was plenty of exit capacity from Germany to Austria at Oberkappel, the spreads between prices would lower. But on the German side of the border, exit capacity is rather limited and most of it is used for transit. We have been in contact with our German equivalent, Bundesnetzagentur, for some time now and hope to find a solution for a bigger German exit capacity in the next months."

In the new entry/exit model, the capacity problem could also be diminished by better coordination between the Austrian and German transmission system operators (TSOs).

Currently, Austria has a physical trading point in Baumgarten, with just one entry point into the internal Austrian network. Boltz believes the country could turn the physical into a virtual trading hub by October 2012, in line with the GWG.

"We are already preparing this transformation and it won't take long to put it into practice, once the law is approved."

Another factor that might add to liquidity at CEGH is the construction of the Nabucco pipeline. "If Nabucco is realised, Austria will have facilitated access to LNG deliveries from Italy and therefore more natural gas sources at hand," Boltz added.

Unbundling

The GWG also includes guidelines for the TSOs on unbundling. According to the regulator, all three Austrian TSOs have opted for the independent transmission operator (ITO) model.

Boltz added that the unbundling of the Trans Austria Gasleitung (TAG) transit pipe to Italy would be particularly interesting, given its significance.

TAG's sale to Cassa Depositi e Prestiti is currently pending EU approval.

Boltz remains sceptical regarding the ITO model for unbundling. "I do not believe that a lot of companies in Europe will stick with this model. It is not attractive enough for most investors and in some time a lot of companies will opt for full ownership unbundling and sell their ITOs."