Energy

Canada and Oil Sands contest future energy markets

Posted by Chris Fellingham on February 19, 2010
Canada, Energy, Instanalysis / No Comments

In January 2010, California passed regulation over Green House gases by determining the pollution of fuels coming into California: LA times has coverage here:

“The Air Resources Board voted 9 to 1 in favor of the complex new rule, which is expected to slash the state’s gasoline consumption by a quarter in the next decade”

The move was historic with California, evidently not unnerved enough by the state’s precarious financial position to press on with passing a remarkably progressive piece of Climate legislation.

Continue reading…

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Obama’s first State of the Union - a disappointment from the climate perspective

Posted by Ruth Brandt on January 31, 2010
Energy, Instanalysis, Politics, USA / 1 Comment

The past week has marked Barack Obama’s first State of the Union address, where the president traditionally outlines his agenda and priorities for the coming year, as well as reporting on the condition of the United States. As far as climate change is concerned, Obama seems to be continuing the approach we have seen him taking in the past months – while it is probably important to him, there are apparently many other issues that are more pressing and deserve a larger share of his attention.

In fact, he did not even mention climate change per se, other than referring to the (energy and) climate bill that was passed in the House over the summer, and even that, only as it relates to clean energy. Clean energy by the way – as far as Obama is concerned – is apparently nuclear (Obama’s proposed budget for 2011, to be sent to Congress on Monday, contains a tripling of government loan guarantees for nuclear power), offshore oil and gas, biofuels and clean coal. There was no mention of solar nor of wind, and the word ‘renewable’ was never used throughout the 71 minutes speech.

Once again, Obama skirts around the issue of climate change, referring only to clean energy, energy security and jobs. High speed rail is not a matter of moving away from dirty fuels used in planes and cars, but rather a way to create jobs. And it does not seem to take higher priority than building new highways. Apparently the Recovery Act should be enough to prevent “Europe or China [from] hav[ing] the fastest trains” (it’s not), as there was no mention of continuing investing in rail infrastructure beyond the one off investment in the Act.

Obama continues not to show strong leadership when it comes to climate change. He says he is grateful to the House for passing its bill last summer and that he is eager to help advance the bipartisan effort in the Senate, yet he does not mention what he would like to see in such a bill, he does not use this rare platform to move the discussion forward.

This was not the case in other issues – he used the SOTU to give quite a talking to to Republicans, especially in the Senate, for being continually obstructive and for focusing only on the next election rather than on governing the country. He made a gentle veto threat “if the [financial reform] bill that ends up on my desk does not meet the test of real reform”. Why then didn’t Obama even mention what a good climate bill should contain in his opinion? Why is there no mention of cap-and-trade or some other mechanism to reduce carbon emissions? Pandering to wavering Democrats and potential Republican allies is all very well, but what about showing the way? What about using this opportunity to outline his plans and his vision, as he has done with financial reform or Afghanistan?

Already, in the aftermath of the SOTU, business leaders such as Tom Donahue, President of the U.S. Chamber of Commerce and a well known antagonist to the House climate bill, and John Rice, a vice chairman of General Electric Co. pointed to the fact that America has a lot on its plate, and therefore a cap and trade bill is not likely to be passed in the coming year.

This is how momentum is brought to a halt…

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Nuclear Power: The answer to the UK’s energy woes?

Posted by Nyla Sarwar on November 11, 2009
Australia, Energy, Politics, UK / 1 Comment

The UK’s energy security prospects are once again making the headlines, as Ed Milliband this week announced the top 10 suitable sites for the next generation of nuclear power plants, describing nuclear power as a “proven, reliable source of low carbon energy”.

The announcement comes amidst heightened concerns surrounding the peak oil debate, with the UK ERC claiming that conventionally extracted global oil production could ‘peak’ and go into terminal decline before 2020.

However, the environmentalists have criticised the decision, warning of the “deadly legacy” of radioactive waste, and argued that investment should be focused on renewables instead. Interestingly, one of the oldest and most efficient windfarms in Britain will be dismantled at Kirksanton to make way for the nuclear plant, to the dismay of some locals.

Faced with the prospect of depleting supplies from the North Sea, the UK is now paying the price for its ‘dash for gas’, following the closure of the coal mines in the 1980s. To support the development of this next generation of energy infrastructure, the UK Government has announced a host of measures to reduce the planning constraints that are likely to hamper such large infrastructure projects, and hopes to have the first new nuclear plant operating by 2018.

Professor Barry Brook at the University of Adelaide has welcomed the announcements from the UK government, and encouraged the Australian government to take heed. He highlights that unlike the situation for uranium power, the electricity price is strongly tied to the fuel price for gas and therefore fluctuations in gas prices lead to price spikes in power prices.

Cheap uranium energy, on the other hand, provides a much more secure proposition to meet both energy security and climate change goals; and he adds that

“…there is enough uranium to provide the whole world with zero-carbon power for millions of years.”

Nuclear power is the only proven electricity generation technology that can simultaneously meet reliable baseload demand, anywhere, and yet emit no carbon dioxide when operating. Along with hydropower from dams, it is the only clean energy technology that has been shown to be scalable.

France is a case in point. It derives nearly 80% of its electricity from 59 nuclear plants and is the world’s biggest electricity exporter. It has the cheapest power rates in Europe, and has the lowest carbon footprint per person.

However, the significance of radioactive wastes and contamination threats should not be underestimated if we really want to promote sustainable development that considers the intergenerational impact and legacy of such technologies. In this vein, it might be argued that the significant funds for these large infrastructure projects would, in fact, be better targeted at scale-up and capacity building for renewable technologies such as wind, solar, tidal and others, which don’t generate such controversial by-products.  For now, the pressure is on in the UK to streamline the planning process to enable the speedy construction required to bridge the expected energy gap.

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Smart grid, green jobs, clean future - the administration is getting more vocal on climate change

Posted by Ruth Brandt on November 03, 2009
Energy, Instanalysis, Politics, USA / No Comments
by Ian Muttoo
image by Ian Muttoo @ Flickr

In the last week of October the Obama administration seemed to be finally making a concentrated effort to show that climate change is high on its agenda, with several public appearances from the president and the vice president during which they sang the praise of a low-carbon future for America.

It started the previous Friday, when President Obama paid a visit to MIT and gave a speech on clean energy and climate change. Without going into policy details, Obama emphasized the innovation needed to respond to the climate challenge (which was very appropriate to the location) and reminded how such innovation is part of what helped shape the United States and how it can place the US back in a leadership position. He also attacked those who appose any attempts to move towards a low carbon economy, saying that There are those who will suggest that moving toward clean energy will destroy our economy — when it’s the system we currently have that endangers our prosperity and prevents us from creating millions of new jobs.”

As if to prove that last point about creating new jobs, Vice President Biden went to Delaware on Tuesday to announce the reopening of a former General Motors factory by Fisker Automotive. Only now the factory will produce plug-in hybrid vehicles. Like other members of the administration, the vice president noted the importance of such projects to the American economy as a whole - “we’re on our way to helping America’s auto industry reclaim its top position in the global market.”

That very same day, Obama was in Florida where he announced an investment of $3.4 billion of Recovery Act funds in projects aimed to start the transition to a smart energy grid. Out of the three this is by far the biggest development – not only is it the largest single energy grid modernization investment in U.S. history, it is also a huge push towards making America more energy efficient and more reliant on alternative energy. And of course, another opportunity for new jobs. This is a very important point when garnering support for climate action within the US, alongside direct economic benefits to the public, which is why Obama once more emphasized that “Such an investment won’t just create new pathways for energy — it’s expected to create tens of thousands of new jobs all across America… It’s expected to save consumers more than $20 billion over the next decade on their utility bills.”

These are just the most public and high-level of the administration’s involvements this past week in supporting a clean energy future. There were also the testimonies of several cabinet members and the head of the EPA in front of the Senate’s Environment and Public Works committee (which held three days of hearings on the Kerry-Boxer climate bill – the bill’s markup is expected to start today, assuming the Republican boycott of the meeting won’t prevent it from happening) and Energy Secretary Chu published a piece about weatherisation and energy efficiency in the Huffington Post.

It seems then, that now that the climate bill is being discussed in the Senate, the administration is publicly showing its support for climate action, something that was sorely lacking during discussions in the House (though behind the scene the White House did apply pressure on Democrats to support the bill). And though the main target is domestic, this is probably also suppose to serve as a demonstration of the administration’s commitment in the international arena in the run up to Copenhagen.

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Windmill Proposal blows apart environmental groups in France

Posted by jennhelgeson on October 27, 2009
Countries, EU, Energy, France / 2 Comments

Mont-Saint-Michel, on the Normandy coast of France, is the sight of new conflict.  The most recent battle is not in a medieval setting, but a modern struggle against two good, but opposed environmental causes.  On one side are those who want to reduce carbon emissions by installing windmills.  On the other side stand ecologists who suggest that windmills churning above the tidal flats of Mont-Saint-Michel would distract from the natural beauty of the medieval monument and potentially destroy the landscape in the future.

France is on an ambitious route to expand its use of windmills in renewable energy.  Currently there are 2500 windmills producing 4500 megawatts per year; the goal is to have 8500 windmills producing 25000 megawatts by 2020.  Windmills are becoming increasingly sought after by EU goals to limit greenhouse gases.  Last week, the EU recommended that it invest $ 70 million in clean energy over the coming decade, tripling windmill construction to produce 20 % of Europe’s electricity.

Those against the windmills near Mont-Saint-Michel have nothing against the quest for clean energy but rather argue that windmills above the ridgeline are not the way to achieve this goal.  Allies have formed across France, and an ambitious campaign to prove the windmills would desecrate the vista has begun.

The mayor of Mont-Saint-Michel, Eric Vannier, has stayed out of the debate for the most part, but 600 locals have pooled finances to hire lawyers to sue local government.  They expect a court ruling in Spring 2010.  If the group wins the lawsuit, “they’ll have to put everything back beyond 30 km (~18.5 miles),” said Corinne Gressier, who runs the group “Windmills: Turbulences.”  But she also realizes, “if we lose, it’s over.”

French law bans windmills closer than 1500 feet from historical monuments.  The current court case in will be on trial in Nantes.  It concerns plans to build 300 foot high windmills on farmland in Argouges, on a plateau a bit more than 10 miles southeast of Mont-Saint-Michel.  The monument attracts about 3 million visitors each year to admire the rock-top monastery.  Andre Antolini, president of renewable Energies Syndicate, told reporters last month that, “at the proposed distance, tourists to the monument would only see tiny blades peeking over the horizon.”

But for protesters like Gressier and the national alliance of environmental groups, the three windmills at Argouges would just be the tip of the iceberg if building is permitted.  There are current plans for an additional 80 towers in farming communities across the entire ridgeline above Mont-Saint-Michel.

The complicating issue is that farmers and village counters tend to embrace proposals to install windmills in their fields because of the payments they receive.  They get stipends for use of the land and villages are provided tax revenue on income from electricity, which is sold to the national grid.  “It’s a flourishing business,” said Jean-Louis Butre, president of the Durable Environmental Federation, based in Paris.

At present France gets about 80 percent of its energy from nuclear reactors and an additional 12 percent from hydraulic generators.  That leaves a balance of 8 percent that must be filled by oil, coal, natural gas, solar, or wind.  Butre explains that if government decided to fill that gap with windmills, it would have so many that they would be part of the scenery in more than a third of the country.

In fact last year, Butre challenged president Sarkozy’s strong push for wind energy in the book “Fraud: why windmills are a danger for France.”  The former President Velery Giscard d’Estaing, a supporter for nuclear power, wrote the preface to the book.  He denounced windmills as an “unacceptable use of public funds, a deceptive public discourse, and often questionable business.”

Now the delegation from Argouges, with support from groups around France, waits to see if they will win the court battle and put atop to the windmill construction near Mont-Saint-Michel.  It remains to be seen how this part of Mont-Saint-Michel’s represents 13 centuries of history will play out.

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European Commission unveils plans but no new money for low-carbon technology

Posted by Dafydd Elis on October 25, 2009
EU, Energy, Mitigation / No Comments

This month, the European Commission published development roadmaps for seven key low carbon technologies. Thy relate to wind, solar, bioenergy, CCS, nuclear technologies, as well as smart grids and energy efficiency, for the period 2010 and 2020. phault @Flickr)

There is a long-standing policy debate over how best to spur innovation in low-carbon technologies. One option is to let markets ‘pull’ technology development along. According to this reasoning, if governments ensure there is a credible price for CO2 and other greenhouse gases, then companies will start to develop new technologies with lower emissions in response to this market signal. The other possibility is for governments to use a policy ‘push’ and pay directly for early-stage R&D into new and promising technologies.

The roadmaps follow the publication of a EU Strategic Energy Technology Plan in 2007. It outlined a vision where the EU enjoyed global leadership in a range of low-carbon technologies. Each roadmap has been developed by the Commission in consultation with the relevant industries, and attempts to describe, step by step, how each technology should develop over the next decade in order to fulfil the vision of the SET Plan. Development in each of the technology areas is backed by an European Industrial Initiative, which is a public-private partnership working in each of the low-carbon technology areas.

In practice, governments usually opt for a combination of the two. The SET Plan was the EU’s policy push for low technologies, accompanying the market pull of the carbon and renewable energy targets included in the Climate and Energy Package it unveiled in the same year.

While the Climate and Energy Package and its 20/20/20 targets have successfully made it into EU law, the SET Plan has arguably been somewhat neglected by comparison. The Commission’s new communication implicitly acknowledges this by speaking of the need for the SET Plan now to be ‘taken forward to implementation’.

But implementation costs money and, critically, the Commission’s new roadmaps don’t come with any new funding plans attached. The Commission calls on Member States to dig deeper into their own pockets to fund energy R&D – a recommendation that is unlikely to receive a warm welcome from treasuries across Europe as they seek to recover their battered public finances – and proposes to use the European Investment Bank’s lending power to fund research in promising areas.

The communication also refers to the role of other countries in developing low-carbon technologies. As with other areas of international climate negotiations, there are large inequalities in the distribution of low-carbon innovation. While the EU can justifiably point to its global climate leadership committing early to substantial emission reductions (at least, compared to other developed countries), the US is leading the pack in terms of its expenditure on developing low-carbon technologies, from biofuels to smart grids. A number of international negotiations are in progress to improve coordination between developed countries and sure that they all pull their weight when it comes to energy R&D; another set of negotiations again are discussing how developing countries can access these new technologies.

As reported by EurActiv, it is not only global cooperation that lies behind the SET Plan: there is something of a technology race occurring between different developed countries, with potentially large future gains available to countries who lead the development of new low-carbon technologies. The IEA this week released its technology road map for CCS that envisages an investment of US$6 trillion by 2050. Companies who are successful in developing CCS technologies now will be able to profit from this economic activity in future. Similar arguments apply to other low-carbon technologies like renewable generation and low-emissions vehicles.

There is no question that low-carbon technologies will be vital during the twnty-first century: without them mitigating climate change will be intolerably expensive. How many of those technologies will be European in origin depends in no small part on whether the Commission succeeds in finding R&D funding at a scale that matches its R&D vision.

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Climate policy action in the United States

Posted by Ruth Brandt on October 15, 2009
Adaptation, Energy, Instanalysis, Mitigation, USA / No Comments

For Blog Action Day, focusing this year on climate change, I thought to do something a little different and take a look at climate action, and how it relates to climate policy and politics. So I talked with Ada Aroneanu, an organiser with 1Sky, a collaborative campaign bringing together many organisations so as to bring about “public demand for a clear, simple, specific national policy platform that would set America on the road to real solutions.”

I asked Ada how and when 1Sky came into being?

During 2007 several groups who were active on climate change at the local level came to realise that there was a need for a mouthpiece on the federal climate policy level, and that these groups involved in climate action lacked variety. 1Sky evolved out of the coming together of these local groups as well as new groups who haven’t been directly involved with climate change before then (faith, human rights, anti-poverty, etc).

This also coincided with other national events – the ‘Step It Up’ campaign, which formed in 2007, and the 2007 Power Shift in November which saw 6,000 youths lobbying Congress on 1Sky principals.

And what are these principles?

1Sky promotes 3 main principles –

  1. Creating green jobs - 5 million new green jobs focused on climate solutions and energy efficiency.
  2. GHG emissions reduction - at least 25% below 1990 levels by 2020 and at least 80% below 1990 levels by 2050.
  3. An end to coal - a moratorium on new coal plants

These principles are the prism through which 1Sky analyses policy.

My main interest was how on-the-ground actions might affect policy, so I asked Ada to tell me about some of their past actions and successes.

1Sky actions kicked off with the 2nd Step It Up action in November 07 which called for a 20% reduction by 2020 and 80% by 2050 (below 1990 levels). At the time these numbers were not in the public debate, but following this action they started to be commonly referred to.

Green Jobs Now – a call to create 5 million green jobs. A collaboration with Green for All and Al Gore’s “We” campaign (now Repower America), with about 700 events covering diverse locations - urban sprawl, coloured communities – across the country. This number – 5 million jobs – and the principles of this campaign were incorporated into Obama’s presidential campaign which was nearing its final stages before the elections.

Power Shift 09 brought 12,000 students to Washington. 6,000 went to campaign on the Hill (despite a freak snow storm). There was a lot of face time with politicians over that weekend.

When asked about 1Sky’s current focus Ada told me about two of their summer actions -

Business outreach where 1Sky volunteers contacted local businesses and encouraged them to call their local chambers of commerce and talk to them about their climate change policy; and direct lobbying, with visits to - and rallies at - regional offices of representatives before the vote on the Waxman-Markey bill in June.

Currently 1Sky are focusing on the 350.org’s International Day of Climate Action on October 24, getting their volunteers and mobilizers to participate. Following that they are shifting their focus to placing some pressure on President Obama, calling on him to make America a leader in clean energy. Pushing the president, which will be done alongside pushing senators, comes as - in Ada’s words – “we need to be putting pressure on both branches of the federal government to act at the executive/agency level as well as Senators to act through congress.”

[I believe this focus on the president might also prove to be important in encouraging him to take a more active role in the climate legislation, as he did with health care but only very little with the climate bills, something that many US climate campaigners and analysts have noted.] 

Finally, as the main action in US domestic climate politics at the moment is the bill currently making its way through the Senate, I wondered how 1Sky were dealing with it.

“As it is currently at the committee level, we are working in the states of the relevant committee members. Once it reaches the floor, hopefully before Copenhagen, we will work across the entire country.”

With over 2,000 Climate Precinct Captains across the country, and 40 organisers, mobilizing communities on the ground, 1Sky joins million of people the world over in demanding bold climate action from their leaders.

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The Recession Bites Back: Devastating Impacts on Low Carbon Technologies in the UK

Posted by Nyla Sarwar on October 12, 2009
EU, Energy, Politics, UK / No Comments

The Committee on Climate Change released its latest report today highlighting the devastating impact the economic recession has had on carbon trading schemes and investment for low carbon technologies. The report emphasises the vast investment needed in efficiency through green housing, power and transport in Britain, to service the goal of meeting the commitments in the Climate Change Act.

The Committee has called for ‘dramatic improvements’ in efficiencies across the economy, suggesting that more ‘forceful’ policies may be required to increase annual cuts in emissions by four-fold.

The Committee also recommends

- The introduction of 1.7m electric cars, with 3.9m drivers trained in fuel-efficient techniques, by 2020

- Building 8,000 new wind turbines, alongside four new coal power stations fitted with carbon capture technology and three new nuclear power plants, to slash emissions from the power sector by 50% by 2020.

The Government’s largest proposed clean coal plant to be fitted with CCS was shelved by E.ON last week, also reportedly as a result of the recession. However, the announced delay in the Kingsnorth project, which had become the focus of protests against climate change, heavily targeted by climate camp activists and the media; leaves politicians wondering how they might fill the expected energy supply gap in 2016.

The recession has also had a significant impact on the world’s emissions trading schemes - expected to be pivotal in driving market signals for low carbon investment. The drop in energy consumption, which led to the shelving of the Kingsnorth project in the UK, has also led to a drop in emissions in Europe, resulting in a surplus of carbon credits in the EU ETS. It is feared that this might result in a carbon price of just €20 a tonne in 2020, rather than the €50 a tonne used for its previous analysis.

The Committee has suggested that options to strengthen the carbon price, including the government underwriting a minimum price or intervening in the electricity market, should be “seriously considered”. On Friday, a report from Ofgem suggesting domestic energy bills could rise 14-60% by 2020 was seen by energy industry experts as an acceptance that the market-driven system has failed and the government needs to be more interventionist.

So the recession has played its role in dampening the prospects of the low carbon investment opportunities, and strong leadership will be essential to deliver the ‘radical’ and ‘dramatic’ improvements that the Committee has demanded. With Ed Milliband’s small budget, and uncertainties over changes in government next year, the UK needs to dig deep to create green opportunities that rescue the nation from the dire straits, courtesy of the economic recession.

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Over 100 years of CCS Treasures held under the North Sea!

Posted by Samia Robbins on October 07, 2009
Countries, EU, Energy, Politics, UK / No Comments

A Calm North Sea

A Calm North Sea

According to UK’s  Department of Energy and Climate Change (DECC) the North Sea has potential to store over 100 years worth of UK power station CO2 emissions.

In the build up to the Carbon Sequestration Leadership Forum (CSLF) in London on 13th October, DECC has launched a UK wide consultation to explore the idea to develop and manage the potential carbon storage sites under the North Sea, to harness the huge potential for storing CO2.

According to the Energy and Climate Change Secretary, Ed Milliband says:-

“There’s enough potential under the North Sea to store more than 100 years worth of CO2 emissions from the UK’s power fleet.  We are also working closely with Norway and other North Sea Basin countries to ensure the North Sea fulfils its potential in the deployment of CCS in Europe. We want to get the UK regulatory framework in place so we can harness that potential and make the North Sea part of the CCS revolution.”  (Source: DECC)

The future talks of The Carbon Sequestration Leadership Forum (CSLF), which is made up from a private and public member (including Ministers from 23 countries) will build on the foundations of the G8’s ambition to launch twenty CCS demonstration projects globally by 2010; and prospects of a global agreement on CCS prior to the UN Climate Change conference in Copenhagen this December. (Source: DECC)

 “Without CCS there is no solution to climate change.   As well as getting things in place in the UK and Europe we need that consensus at the global talks in Copenhagen.   The meeting in London will be a pivotal part of moving the discussion on CCS forwards.”  (Quote: Ed Milliband).

Subject to the outcome of this consultation, DECC aim to make and lay regulations in the first quarter of 2010 in order to bring the regime into force in April 2010. (Source: DECC)

This CCS target will form part of the UK’s Low Carbon Transition Plan which was first introduced in 2008, it sets out how the UK will meet the 34 percent cut in emissions on 1990 levels by 2020.  The plans set out to reach the following target by 2020:

  • More than 1.2 million people will be in green jobs
  • 7 million homes will have benefited from whole house makeovers, and more than 1.5 million households will be supported to produce their own clean energy.
  • Around 40 percent of electricity will be from low-carbon sources, from renewables, nuclear and clean coal.
  • UK will be importing half the amount of gas that we otherwise would.
  • The average new car will emit 40 percent less carbon than now. 

 

In times of financial and economic instability, the government has committed a very large sum of £405 million towards developing low carbon technologies to meet the Transition Plan targets. This commitment to CCS is prevalent in the recent announcement to support a multimillion-pound research facility in Yorkshire, The Centre for Low Carbon Futures.  This is an innovative £50m research centre that combines the expertise and research power of the Yorkshire universities, with funding from Yorkshire Forward.  The centre aims to build a competitive, sustainable and carbon-efficient regional economy, while providing climate change solutions of national and international significance in collaboration with local business.

So far, the Centre has already identified its first four pilot research projects, which include:

  • The regional economics of climate change
  • Low carbon supply chains
  • Biorenewables
  • Carbon Capture Technology

In September 2009, the UK government has also injected £20m into early stage works for developing advances in wave, tidal, fuel cells, solar and energy efficiency technologies.   Announced in September, the ‘clean energy technologies fund’ will be like the ‘Dragons Den’ Venture Capitalists TV series, aiming to attract private sector finance in coming forward to fund new innovative clean technology projects.

 Simon Walker, Chief Executive of the British Venture Capital Association, said:

“Low carbon energy technologies backed by venture capitalists will play an important role in creating a sustainable energy future for the UK. In 2009 we have seen a dramatic fall in the amount invested into clean energy companies in the UK. We welcome any initiative which boosts the supply of capital into this crucial sector.”

Penny Shepherd MBE, Chief Executive of UK Sustainable Investment and Finance said:

“Government support now is vital to develop the UK low carbon technology businesses that we need for lasting prosperity. This commitment shows that the Government is serious about promoting a low carbon economy and sustainable investment in the UK.”

With the financial commitment from government and the new opportunities exposed by the CCS storage capacity in the North Sea emerging, the academic support is absolutely paramount into driving UK’s commitment to achieving further gains in meeting not only the UKs carbon reduction targets, but also to share these technologies with the rest of the world at the UN Summit in Copenhagen to contribute to the global efforts needed.

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Germany’s elections and climate change: bad, but not terrible, news

Posted by Fabian Teichmueller on October 01, 2009
Countries, Energy, Germany, Instanalysis, Politics / No Comments

Angela Merkel’s CDU (with their Bavarian sidekicks, the CSU) and the free-market FDP - the main winner of Germany’s federal elections - will form the next governing coalition. This is almost certainly bad news for German climate change policy - both domestically and on the international stage - but the policy setbacks in this area will arguably be more limited than what the FDP would prefer. Looking at international negotiations and energy policy as examples will show why.

1) International negotiations

Within the Grand Coalition that governed Germany for the past 4 years, Germany’s stance at international negotiations was never a hotly contested political terrain, for several reasons. Because Germany started important environmental measures earlier than other countries (and cleverly pushed for CO² emission-reduction targets to be based on 1990, before the heavily eastern German industry was mostly shut down) being progressive in contrast to international negotiating partners was never particularly hard, because it did not necessitate painful domestic policy measures. While this is changing to an extent, Germany, and indeed Europe, are not the crucial barriers to a post-Kyoto. And Angela Merkel, a former environment minister and early believer in the science behind climate change is unlikely to give up control over negotiations to an extent that would endanger a progressive German position.

Nevertheless, another danger is more real. Sigmar Gabriel (SPD), German’s environment minister had four years in which to build relationships with other negotiators and governments, get a feeling for the limits of other countries’ room for political maneouvre and learn the tricks of the trade. Given the lack of high-profile candidates in the area of environmental and climate change policy within the FDP and CDU/CSU, Gabriel successor will almost certainly struggle to make a similar impression. And, in addition, she or he will only have had three weeks at the most to get their head into an issue that is among the most complicated and tricky of any ever attempted to be dealt with by international negotiations.

2) Energy policy

While it is fair to say that climate change policy did not feature in the run-up to the federal elections at all, this is not true for energy policy. A long string of lies about nuclear energy was masterfully publicised by SPD environment minister Sigmar Gabriel. They included cover-ups about leaks in the site of Germany’s proposed site for the long-term storage of nuclear energy, high costs for cleaning up an alternative site borne by the tax-payer, the existance (and subsequent denial of this fact) of a strategy paper commissioned by an energy major and outlining communication strategies to promote nuclear energy in the election campaign (conclusion: keep quiet and point out nuclear energy’s green credentials). In addition to further accidents in a notorious north-German nuclear power plant and the emotive nature of many Germans’ thinking about nuclear energy made the CDU/CSUs and FDPs election pledge of ‘exiting-the-exit’ of nuclear energy (Ausstieg vom Ausstieg) one of the few clear dividing lines in an otherwise uneventful election campaign.

The high percentage of Germans who want to exit nuclear energy doesn’t seem to have helped the SPD very much. Nor is there a clear-cut impact of nuclear policy on climate change. Nuclear energy is clean (with regards to CO² emissions), and not extending the life of nuclear power plants would almost certainly have meant building more coal powered ones, even at the breakneck speed of German renewables growth. While there is a valid argument that being able to keep written-off nuclear plants running will decrease the pressure for large energy companies to invest in renewables, this would have been equally true for investment in coal that is already happening. If the new government sticks to the CDUs election pledges of not building new nuclear and taxing nuclear providers half the extra profits they make from extending their lifetime to invest this money in renewable energy, then this may not actually be bad news for preventing climate change. Yet this is doubtful. The traditional energy companies are not friends of renewables, and their deep pockets and lobbying prowess may mean they will push further, for government-subsidised new nuclear power stations and reductions in funding for renewables. If the market knows best, skepticism may prevail. On Monday morning after the election the shares of EON and RWE jumped, while those of renewable technology producers fell sharply…

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