Friday, June 24, 2011

Isra-Mart srl: EU energy efficiency proposal ‘destined for failure’, say enviros

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The European Commission has put forward a proposal which it claims will enable the EU to meets its 2020 energy efficiency target. But the EU executive body has shied away from making the target binding and environmental lobbyists claim that the proposal is therefore destined for failure.

The Commission is targeting a 20% reduction in energy consumption by 2020, compared with a ‘business as usual’ projection from 2005 levels.

Its proposal calls on energy distributors to save 1.5% of their annual energy sales through improving heating system efficiency, installing double-glazed windows or insulating roofs for final customers. However, unlike in previous drafts, member states will be able to propose other energy savings mechanisms, such as funding programmes or voluntary agreements “that lead to the same results but are not based on obligation on energy companies”.

Moreover, public bodies will have to purchase energy-efficient services and products, and refurbish at least 3% of their buildings to higher efficiency standards every year. The Commission also wants consumers to have easy access to smart meters to monitor their energy use in real time.

“Our proposal aims at making the way we use energy in our daily life more efficient and at helping citizens, public authorities and the industry to better manage their energy consumption, which should also lead to a reduced energy bill,” said Günther Oettinger, EU Energy Commissioner.

Brussels said it will monitor the impact of greater efficiency on EU carbon prices “in order to maintain the incentives in the emissions trading system rewarding low-carbon investments”. In a non-binding memorandum accompanying the directive, the Commission said that “appropriate measures need to be considered, including recalibrating the emissions trading system” by setting aside a number of allowances corresponding to extra emission reductions resulting from proposed efficiency measures.
Commission is 'fooling itself' – FoE

Brook Riley, climate justice and energy campaigner for Friends of the Earth Europe, said the Commission is “fooling itself” if it believes the proposed directive will deliver a 20% savings target. “Its own internal analyses show that only a binding target will suffice,” she said. “Instead of showing leadership, the Commission is giving in to industry scaremongering and pandering to the lack of understanding among national governments. This directive is set up to fail.”

Arianna Vitali Roscini, policy officer for energy conservation at WWF's European policy office, likewise rued the lack of binding targets. She said the Commission is “setting up measures that are no better than place holders”.

Business is likewise unhappy with the proposal. Electricity industry association Eurelectric noted several areas of “concern and ambiguity” surrounding permitting and authorisation procedures, and inconsistencies with the energy market liberalisation package.

Eurochambres, which represents chambers of commerce across Europe, suggested any legal obligations, however minor, “would create unnecessary burdens compared to a voluntary approach based on advisory services to better inform and encourage energy consumers to increase energy efficiency”.

Arnaldo Abruzzini, the organisation’s secretary general, also questioned the proposed obligation on energy distributors and retailers to achieve energy savings for their customers, commenting that “they are not in a position to fully steer the consumption behaviour and actions of their customers.”

The requirements will become binding a year after the adoption of the directive, which the Commission expects in late 2012 after approval by the European Parliament and national governments.

Meanwhile, member states failed to endorse the Commission's low-carbon roadmap on Tuesday after Poland said it was unhappy about a reference to a possible 25% cut in 1990-level carbon dioxide emissions by 2020. The proposal needed unanimity to pass. A draft resolution stated that “if the EU delivers on its energy-efficiency objectives… [it would] outperform the current 20% emission reduction target and achieve a 25% reduction by 2020”.

MEPs will vote today on whether to increase the emissions reduction target to 30% by 2020.

Isra-Mart srl: NextGen, Sesar, Emissions Trading, Globalization and Business Ethics on Agenda for Aviation Industry

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Ethics in the global aerospace industry is one of many topics that CEOs from the U.S. and Europe are addressing at meetings here this week, according to U.S. Aerospace Industries Association (AIA) president and CEO Marion Blakey.

The former FAA Administrator came to the Paris Air Show along with a large congressional delegation to speak with counterparts from the EU and other aerospace executives from around world.

“The show is obviously one that has full, intense involvement and engagement even in difficult times for the industry globally,” she told AIN just before the opening of the Paris Air Show.

“From a U.S. DOD [Department of Defense] standpoint, we have a good contingent of aircraft that are coming over,” Blakey said. “And we are providing support for the aircrews and the [aircraft] corral.”

Blakey said the show is exciting because she thinks unmanned air systems and vehicles continue to be of much interest, and that U.S. Atomics has brought a maritime version of its Predator B. On the civil side, Boeing has the new 747-8 and the Dreamliner on display.

“We will get together with our counterparts from Europe, the ASD [Aerospace and Defence Industries Association of Europe], and the CEOs, the leadership of both organizations, sit down and have a discussion where, I have to say, the agenda is heavily into civil aviation and commercial aviation,” Blakey added.

According to Blakey, the agenda is going to be focused around NextGen and Sesar and the optimization questions. She noted there is new leadership in the International Civil Aviation Organization (ICAO) to both ensure that the two major satellite-based systems are achieving true harmonization and rationality together, as well as taking stock of how the two sides are developing on both the technical and policy standpoints.

“And I think that ICAO is committed to increasingly globalizing this ATM modernization initiative worldwide,” Blakey explained. “They are approaching this from the standpoint of block builds, one of the things the industry worldwide should be alert to.”

In addition to carbon emissions and the EU’s stand on its European Emissions Trading Scheme, the CEOs are talking here about the ethics initiative that was started several years ago. Members of AIA and ASD have created a new task force to administer the ongoing activities of the International Forum on Business Ethical Conduct (IFBEC).

IFBEC is an opportunity to exchange best practices for business ethics among industry participants and identify areas of commonality. While a number of U.S. and European companies have voiced their support for IFBEC and its global principles, there have been no formal procedures or requirements for participation in IFBEC or for registering adherence to the principles until now. AIA and ASD endorsed the global ethics principles in October 2010.

“We are putting forward a new charter, which we are committing to both on the European standpoint and our standpoint,” Blakey said. “There are a number of companies that are willing to stand up and be essentially accountable in terms of providing information and their commitment to reaching the global principles of business conduct that we have laid out.”

In order to participate in IFBEC, the new charter would require companies to execute an annual company statement about their corporate ethics policies and practices, their participation in industry-wide ethics activities and their commitment to bolstering adherence to the global principles within their company and among other industry customers, partners and suppliers.

Thursday, June 23, 2011

Isra-Mart srl: US demands its airlines are exempted from EU carbon trading

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The EU is headed for a showdown with its largest trading partner after the US demanded its airlines are exempted from the bloc's emissions trading scheme when it expands to include aviation emissions next year.

The US is incensed that non-EU carriers will be included in the bloc's plans to charge per tonne of CO2 emitted for every flight in and out of Europe, and heated talks in Oslo yesterday brought the sides no closer to a resolution.

"We clearly stated our strong objections to the EU plans on both legal and policy grounds," a US administration official told a telephone news conference, adding that the EU was using "the wrong way to pursue the right objective" of lowering the sector's emissions.

Aviation is thought to account for around two per cent of global CO2 output, but is expected to expand substantially over the coming years. The EU plans to tackle this by imposing a cap on the amount of carbon airlines can emit, forcing them to buy permits from lower-emitting companies if they go over their limit.

European delegates echoed EU president Jose Manuel Barroso's vow to enforce the plan, telling news agency Reuters: "The Commission is ready to consult at any time, but there should be no illusion – the EU does not intend to withdraw or amend the... directive. It is established EU law."

A group of US airlines (American, Continental/United) and their trade body, the Air Transport Association (ATA), have launched a legal challenge to the EU's stance and are expected to put their case before the court on 5 July.

However, US officials told reporters it was not looking for the scheme to be abolished; rather that it should not apply to US carriers.

"The demand we made is that the EU ETS [Emissions Trading Scheme] should not apply to US carriers. We did not talk about how that might be done," another US official said.

He did not comment on what might happen if the deadlock is unresolved by the start of next year, although the EU has said it will impose fines for non-compliance.

Opponents of the plans, including European, Chinese and Russian airlines, argue that the EU's unilateral action will overly penalise long-haul airlines, spark tit-for-tat legislation and damage an already fragile industry, and they want the issues of emissions reduction addressed with a global agreement.

Wednesday, June 22, 2011

Isra-Mart srl: DECC renewables expert slams ministers' EV reluctance

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Isra-Mart news:

Plans to tighten up security for the EU's emissions trading scheme (EU ETS) have today been endorsed by the UK government and the European climate change committee.

The European Commission acted to introduce new security standards after a spate of cyber attacks earlier this year forced carbon registries across the continent to suspend trading.

It plans to introduce measures that would bring security for the carbon market into line with state-of-the-art measures used in the financial sector. The move, including the introduction of a Europe-wide Single Registry to replace national registries in early 2012, is intended to prevent a reocurrence of the cyber fraud experienced earlier this year.

The measures include introduction of a trusted account list, strengthened customer checks, new account categories, and out-of-band confirmation of transactions.

The authorities will also have the power to freeze allowances and accounts or delay transactions in cases of suspected fraud, and will have wider access to confidential information.

Measures will also be put in place to make sure the market is less disrupted when frauds occur.

The proposed regulations will be adopted after a three-month scrutiny phase, assuming the European Parliament and the Council do not raise objections.

"With these measures and a more harmonised approach for the third phase of the ETS due to start in 2013, we have certainly strengthened the integrity of the European carbon market," said climate commissioner Connie Hedegaard.

Greg Barker, UK climate change minister, added that the proposals would lend added protection to a market that has a significant presence in London.

"The new rules will put serious obstacles in the way of carbon crooks, while ensuring this valuable market... can continue to function effectively," he said. "I want the City of London to remain the global capital for carbon trading and green finance, and today's decision is an important step to protect this market and restore confidence."

Isra-Mart srl: Poland blocks deeper EU emissions cuts

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Poland has thwarted an attempt to beef up the EU's carbon-cutting targets, drawing sharp criticism from the UK energy and climate change secretary Chris Huhne.

Just days before Poland ascends to a six-month presidency of the EU, it made an isolated stand against the European Commission's Roadmap to 2050 document, which says the bloc must exceed its target of reducing emissions by 20 per cent by 2020 if it is to achieve an 80 per cent cut in time for 2050.

The UK and other supportive countries have been pushing for the EU to raise its goal to 30 per cent by 2020, although more fossil-fuel dependent countries and energy commissioner Günter Oettinger fear such deep cuts could harm industry.

EU environment ministers yesterday agreed a compromise figure of 25 per cent cuts on 1990 levels, which would not have been a binding target, but a milestone along the way to the 2050 goal.

This was accepted by 26 out of 27 countries with Poland, which produces around 90 per cent of its electricity from coal, the lone opponent. Proposals need to be unanimously supported to be taken forward, and UK officials are now resigned to little action being taken until Denmark takes over the presidency in January 2012.

UK energy and climate change minister Chris Huhne called the failure to agree a compromise target a "dark day for Europe's leading role in tackling climate change" and promised to keep pushing for deeper cuts

"The UK, together with its European colleagues, will continue to make the economic case for tighter EU carbon targets, so that we can make the most of the future green economy," he said. "Delay and blockage is a recipe for increased costs and missed opportunities."

EU climate commissioner Connie Hedegaard admitted the outcome was "disappointing," while campaign group WWF's energy chief Jason Anderson condemned Poland for "showing a shocking disregard for climate protection and economic revitalisation".

However, Polish environment minister Andrzej Kraszewski said the potential impact of such cuts on particular countries required more analysis. "We expect greater solidarity within Europe and an understanding of the situation of specific member states," he said.

Isra-Mart srl: Microgeneration strategy to bring "power to the people"

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The government today released its microgeneration strategy accompanied by an action plan to encourage businesses and households to start producing their own energy.

The strategy formalises the document released for consultation in December and shows little change to the policies outlined then, addressing financial payments for small systems, reforming the Microgeneration Certification Scheme (MCS) process and addressing skills shortages in the industry.

The proposals outlined will be taken forward to the planned comprehensive review of feed-in tariffs expected later this summer.

The government has been heavily criticised for scaling back support for larger renewable energy generation, but Energy and Climate Change Minister Greg Barker said the strategy for installations producing under 50kW of electricity or less than 300kW of heat would spark a "revolution in energy generation at a local level".

"We want to help people who are enthusiastic to generate their own energy matched by an industry with the desire, creativity and tenacity to grow in a sustainable and responsible way," he added. "That's why we have worked with industry to develop a clear way forward."

The government says the feed-in tariff (FiT) scheme and the Renewable Heat Incentive (RHI) will provide the impetus behind the industry, and help drive costs down over time as technologies such as solar panels, micro wind turbines and small-scale hydro systems reach a critical mass.

It promises £15m of support through Renewable Heat Premium Payments before the RHI commences next year, but says the onus is on the sector to make the most of financial incentives by overcoming non-financial barriers including quality and performance.

These barriers are addressed in the accompanying action plan, which was developed with industry, and outlines steps to make it easier for companies to obtain the MCS label, and proposes allowing hydro schemes to be eligible for feed-in tariffs without having the label.

Other actions include ensuring consumer protection is maintained across the microgeneration sector, and developing the skills and knowledge needed to support the industry as it expands.

Dave Sowden, chief executive of the Micropower Council, told BusinessGreen the strategy gave the sector the "motivation to drive forward".

"The sector is not without faults – there are still some creases we can iron out," he said. "People understand that the FiTs piece is important, but if we don't do the other stuff, we're not going to have an industry that grows sustainably."

Isra-Mart srl: Industry applauds minister's pledge to boost green construction

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Businesses have welcomed the launch of a joint government and industry action plan to decarbonise the built environment by 2050, but warned that a new panel tasked with scrutinising the sector must show strong leadership to be effective.

Business minister Mark Prisk today unveiled the action plan in response to a major report published by a panel of industry experts last November led by the government's construction tsar Paul Morrell.

The action plan forms the centre piece of today's response (pdf) and will be overseen by a new Green Construction Board, which will be chaired by Prisk and include Morrell. Prisk will chair alongside an industry representative who will be announced shortly.

The wide-ranging plan includes many pre-exsisting actions and commits three industry bodies to develop strategies to boost the low carbon construction sector.

The UK Green Building Council (UK-GBC) will publish a business plan in March 2012 to put the construction sector on course to cut emissions by 50 per cent by 2050.

The Institution of Civil Engineers (ICE) will publish a route map in October this year, identifying what infrastructure will be required to meet the 2050 80 per cent carbon reduction targets.

Finally, the Strategic Forum for Construction will develop a sustainability accreditation scheme in summer 2012 for companies to commit to improving their environmental credentials.

Morrell said he was delighted that government had adopted many of the recommendations from the original report.

"To ensure that construction rises to the low carbon challenge we need to continue this new level of co-operation so I am also pleased that a joint government and industry board has been set up to ensure implementation of this plan," he said.

However, both the UK-GBC and the ICE warned that the new panel must show strong leadership to be effective.

Paul King, chief executive of the UK-GBC, said: "The Green Construction Board has the potential to play a pivotal role in joining up both industry and government activities. However, for it to be successful, it needs to have a voice – with a genuine mandate to shape the policy landscape and ensure that government is providing the right enabling conditions for industry to invest and deliver."

ICE president Peter Hansford echoed this warning, adding that it was crucial the board is led "by someone with significant standing within the construction industry and who commands respect among ministers and government officials".

A spokesman from BIS today told BusinessGreen that there has already been a great deal of interest from industry in joining the board, adding that the panel will be "forthright".

Employers body the CBI also welcomed the report but urged government to ensure both businesses and consumers take up the planned Green Deal incentive scheme.

Neil Bentley, CBI deputy director-general, said: "The CBI has serious concerns about the financing and take-up of the Green Deal, and we are calling on the government to stimulate both consumer and business interest."

The news came as London Mayor Boris Johnson today started a search for sponsors to help fund a competition for students to develop new energy reduction measures for buildings.

The Mayor will launch the competition in the next academic year, awarding at least £20,000 to the student at a London university who develops the best efficiency measure.

The Mayor also launched a fresh call for public-sector building owners to invest in the capital's RE:FIT scheme, which offers guaranteed paybacks from retrofitting measures.

Building retrofitting accounts for 41 per cent of the overall investment that the city requires to achieve the mayor's 60 per cent carbon cut by 2025. However, earlier this year it emerged that the capital is well short of its target to make 200,000 homes more energy and water efficient by 2012.