News digest 8 – 22 July 2008

Companies
Exelon sets low-carbon plan
Fewer Indian companies fighting climate change
Mitsubishi plans electric car
GE renewables investments top $4 billion
Bombardier launches green plane design




Policy
Report convinces UK to backpedal biofuel targets
EU approves including airlines in ETS
London abandons higher congestion charge
EU electricity regulation could zap carbon emissions
US Department of Energy guarantees $10 billion to renewables
G8 wants 50% cut in CO₂ emissions
South Korea envisions East Asia Climate Partnership
Alberta combats emissions with $4 billion fund
G8 agree on a 50% reduction by 2050
NASA uses ocean maps to find wind sources
DTE Energy joins the DOE's FreedomCAR Partnership
Clean Air Act needs upgrade according to EPA
ETS will include 1000 Australian companies
Brazil, Indonesia agree on biofuels
ICF named top climate change consultant
China sees continuous decrease in energy consumption
EU releases green labelling scheme
Australia puts a price on pollution
OECD criticizes efficiency of biofuels
US EPA proposes rules for CCS
UK sets emission targets for 2050
World's first tidal turbine makes a splash in Britain

Investment
ArcelorMittal introduces clean tech fund
Asian Development Bank (ADB) proposes $100 million carbon fund




Companies

Exelon sets low-carbon plan

Energy utility company Exelon released on July 15 their 2020: A low-carbon roadmap programme in efforts to reduce 15 million metric tons of GHG emissions annually by 2020.

The company will focus on 'greening' their operations, aiding customers in reducing their emissions, and providing 'low' carbon electricity. The cost of the programme would be in excess of $10 billion.

Fewer Indian companies fighting climate change

Only about 20% of India’s corporate sector is responding to global warming, says a new survey by the Associated Chambers of Commerce and Industry of India. The survey reported that globally, up to 60% of businesses are mitigating the effects of global warming caused by greenhouse gasses, while nearly 80% of Indian respondents say their primary focus is on expanding and diversifying their corporations, with climate change coming in second.

Mitsubishi plans electric car

The new electric powered vehicle, the i MiEV, will run on a large-capacity lithium-ion battery and a "compact, high-output" electric motor rather than the traditional powertrain motor commonly used in hybrids, according to the company.

Fleet testing at various US companies will commence this fall in preparation for the 2009 launch. The i MiEV has been used to transport the world leaders at the G8 conference.

GE renewables investments top $4 billion

GE’s Energy Financial Services unit reached $4 billion in renewable energy investments earlier this month, with a $100 million investment in three New York wind farms. GE aims to have $6 billion in renewable energy investments by 2010, and expects renewables to make up at least 20% of their energy and water portfolio by the same year.

Bombardier launches green plane design

A new line of aircraft introduced by Canadian manufacturer Bombardier is slated to be the ‘greenest in its class’ of 100- to 149-passenger aircraft, according to Gary Scott, president of Bombardier Commercial Aircraft. The new CSeries aircraft will emit up to 20% less carbon and burn 20% less fuel than current similarly-sized models, and should be in service beginning in 2013.

Policy

Report convinces UK to backpedal biofuel targets

After the Renewable Fuels Agency's Gallagher review was prepared for the UK government's concern over biofuel as a renewable energy, the House of Commons Environmental Audit Committee, released a statement that the UK government will "proceed cautiously" with biofuels until proven sustainable. The Gallagher review stated that biofuels could only reduce transport carbon emissions if indirect land-use change is avoided and as long as biofuel technology becomes more efficient and developed. The Committee agreed that further research and development on biofuel should be continued, but that the use of biofuels in transport should be considered for reduction, in order to avoid increase in food prices, increased GHG emissions, and loss of biodiversity.

EU approves including airlines in ETS

A compromise deal to include all flights into and out of the EU—as well as all internal flights—under the Emissions Trading Scheme was formally approved this week by a vote of the European Parliament. Beginning in 2012 (with no introductory period), aviation CO₂ emissions will be capped at 97% of average levels between 2004 and 2006, and will decrease to 95% in 2013.

London abandons higher congestion charge

A £25 daily fee for larger vehicles entering the Central London Congestion Charge zone has been abandoned by the city’s Mayor, Boris Johnson. Porsche, which stands to gain by having Transport for London pay its legal fees from disputing the congestion charge, will be donating the amount it gains to a local youth charity.

The current Congestion Charge scheme will not be changed, and vehicles using alternatives fuels will still receive a discount when driving into the zone.

EU electricity regulation could zap carbon emissions

At the Eco-Design Regulation Committee meeting on July 7th 2008, the EU members agreed on an electrical consumption regulation for office and household electrical devices within the EU.

Through the regulation, the EU hopes to reduce carbon emissions by making appliances more energy efficient.

Electrical devices would be set at a maximum of 1 or 2 watts by 2010 which, with further future restrictions, could save 14 million tones of CO₂ annually.

The EU will formally adopt the regulation within the 2008 year and hopes to reduce electrical consumption to 73% by 2020.

US Department of Energy guarantees $10 billion to renewables

Energy efficiency and renewable energy projects stand to gain up to $10 billion of the US Department of Energy’s recently announced $30.5 billion Loan Guarantee Program, which hopes to encourage developing clean energy projects for a commercial scale.

The remaining amount of the loan guarantees is set aside for nuclear and advanced “front-end” nuclear projects.

G8 wants 50% cut in CO₂ emissions

Leaders of the G8 nations today released a statement saying they collectively support a goal of achieving at least a 50% cut in global greenhouse gas emissions by 2050.

The statement also says the G8 recognizes that “appropriate measures” on a global scale must be taken to allow developing and implementing technologies to meet the aforementioned goals.

The leaders also back the launching of 20 large-scale CCS projects around the world by 2010, and hope to see CCS in broad use by 2020.

South Korea envisions East Asia Climate Partnership

According to a statement released July 9th, President Lee Myung-bak of South Korea announced to the G8 leaders at the Hokkaido Tokayo Summit that South Korea is willing to led East Asia in reducing carbon emissions by launching the East Asia Climate Partnership.

According to Lee Mung-bak, the partnership "aims" to mitigate GHG emissions without stifling economic growth. The proposed partnership will establish a framework for energy policy consultations, R&D for clean technology, and financial support for its members.

Alberta combats emissions with $4 billion fund

The new fund, which is apart of Alberta's Climate Change Action Plan, will invest $2 billion to advance CCS technology and another $2 to fund energy efficient-public transit, according to Canadian Premier Ed Stelmach on July 8, 2008.

The CCS fund will support projects that reduce emissions up to 5 million tonnes a year. The public-transit fund will initiate new transport alternatives through out the province. Alberta's high oil and gas prices provided a significant budget surplus for the fund.

Premier Ed Stelmach did not specify when the funds would become effective.

G8 agree on a 50% reduction by 2050

At the Hokkaido Tokayo Summit, the G8 leaders set long-term climate change targets and agreed to cut "at least" 50% of their global emissions by 2050. The agreement acknowledged that developed countries require more ambitious emission reduction targets than developing countries and thereby ensured that an effective post 2012 climate regime will be negotiated for the G8 by the end of 2009. In response to the environmental challenges faced for weaker economies, the major economic leaders also pledged "substantial finance and investments" to aid developing nations with mitigation and access to clean energy.

NASA uses ocean maps to find wind sources

NASA's QuikSCAT satellite, which is also used to predict storms, can determine what ocean areas have the strongest winds to produce energy.

According to NASA, areas where storms are formed, such as the mid-latitudes of the Atlantic and Pacific oceans, have "large-scale, high wind power potential".

Ocean wind, which could produce up to 500 to 800 watts power per square meter, is generally stronger than land wind, which can be obstructed by mountains or hills.

DTE Energy joins the DOE's FreedomCAR Partnership

DTE Energy, an electrical and natural gas provider, has joined the US Department of Energy's (DOE) FreedomCAR and Fuel Partnership as an electrical utility representative.

DTE, along with the Southern California Edison Company, will apply their expertise to the partnership on electrical cars by examining the PHEVs long-term impact on electricity and utility grids.

The DOE's FreedomCAR Partnership was formed to research and market affordable fuel cells, hybrids, and PHEVs within the next decade.

Clean Air Act needs upgrade according to EPA

On July 11, 2008, the Administrator of the EPA released an advanced notice of proposed rulemaking (ANPR) on Regulating Greenhouse Gas Emissions under the Clean Air Act, accusing the Clean Air Act as being outdated and "ill-suited" for regulating contemporary GHG emission levels.

The ANPR states that the original act only regulates select emissions and is therefore incapable of reducing GHG emissions from un-targeted sources such as homes, schools or hospitals.

The EPA released the ANPR to stimulate and collect public opinion.

ETS will include 1000 Australian companies

Only about 1000 of Australia’s largest-emitting businesses will be required to participate in a mandatory emissions trading scheme, according to the country’s climate change minister Penny Wong. A model of Australia’s new ETS is due out this week, and Wong said the nation is still committed to beginning the scheme in 2010, a date recommended by climate change adviser Ross Garnaut.

Brazil, Indonesia agree on biofuels

Brazil and Indonesia have signed a pact on biofuel production, agreeing to begin sharing knowledge and experts within the year. Through the agreement, Indonesian President Susilo Bambang Yudhoyono said his country hopes to learn from Brazil by sending delegates to research its biofuel expansion, especially in the area of ethanol use.

ICF named top climate change consultant

ICF International earned the status of “leader” among 16 climate change consultancies, ranked by climate research firm Verdantix. According to the report ICF was the broadest and most established of the consultancies, while companies like Deloitte, KPMG, and PricewaterhouseCoopers were labeled “specialists,” equally as established but offering a more focused range of services.

China sees continuous decrease in energy consumption

China's energy consumption per unit of gross domestic product (GDP) has fallen 3.66% from 2006. China has been pursing more efficient and clean energy and as a result has seen decreasing consumption ratings since 2005. To continue the trend, China plans to reduce energy consumption from 2005 levels by 10% in 2010 in part by closing small energy-intensive coal-fired power units, which produce 40% of the power sectors emissions.

EU releases green labelling scheme

On July 16, 2008, The European Commission released its Action Plan for sustainable consumption, production and industry, "to improve the environmental performance of products and to stimulate the demand for more sustainable goods and production technologies".

According to the European Commission, the plan proposes mandatory labeling of products according to their energy consumption level and/or their environmental performance.

A voluntary label will be awarded to the most environmentally friendly product in order to give manufacturers incentive to go beyond labeling requirements.

The launch date of the scheme has not been confirmed.

Australia puts a price on pollution

On July 16th, the Australian government released the Carbon Pollution Reduction Scheme to encourage pollution control within the economy.

The scheme will distribute annual emission permits, which are determined by the yearly cap, within covered sectors of the economy. Some permits will be auctioned off to the highest bidder, while others will be distributed for free to encourage permit trading.

The permits are to give firms incentive to pursue more efficient technologies and reduce emissions.

OECD criticizes efficiency of biofuels

OECD criticized the efficiency of biofuels in their recently released report, The Economic Assessment of Biofuel Support Policies.

The report states that while sugar cane based ethanol can reduce GHG emissions by 80% or more, ethanol produced from corn or other vegetable oils, which are commonly produced by ethanol giants the U.S. and Canada, only saves around 30% of GHG emissions.

The report recommends that governments should support fuels that are produced from non-food crops, but only temporarily.

In the long run, governments should focus on more efficient energy saving technologies, such as solar or hydrogen, to reduce emissions.

US EPA proposes rules for CCS

To protect drinking water from underground carbon storage, the US Environmental Protection Agency is proposing regulations for geologic sequestration of CO₂, one part of the carbon capture and storage process. The planned regulations establish a new class of injection well that would be used to deliver the CO₂ to underground reservoirs, and aim to ensure that the wells are placed appropriately and well-monitored after injection. The EPA estimates that nearly 95% of the biggest CO₂ emitters in the US are within 50 miles of a potential storage reservoir for their carbon emissions.

UK sets emission targets for 2050

The UK government's Climate Change Bill, printed by the House of Commons on July 9th, 2008, pledges to reduce 60% of UK carbon emissions by 2050, compared to 1990 levels. The bill requires the government to publish five carbon budgets annually from 2008, with advising from the Committee on Climate Change. The committee would advise on issues involving domestic emission reduction targets, carbon credit use, and potential changes to the 2050 reduction targets. The bill also supports carbon trading schemes.

World's first tidal turbine makes a splash in Britain

The tidal turbine, known as SeaGen, was developed British tidal energy company Marine Current Turbines (MCT) to bring clean energy into the Stanford Lough grid in Northern Ireland. The turbine, which is temporarily only producing 300kW of power, will eventually produce 1.2 MW of power, enough to supply 1,000 homes with electricity. ESB Independent Energy is purchasing power generated by SeaGen for its customers in Northern Ireland and the Irish Republic, according to MCT.

Investment

ArcelorMittal introduces clean tech fund

A new clean technology venture capital fund has been launched by Luxembourg’s ArcelorMittal, beginning with a $20 million investment in American thin-film solar panel provider Miasolé. The fund will focus specifically on projects that are relevant to the steel industry and its customers, with a goal of reducing greenhouse gas emissions by supporting commercial-scale projects.

Asian Development Bank (ADB) proposes $100 million carbon fund

ADB, which is a finance institution for developing countries, proposed their Future Carbon Fundd to generate carbon credits for the finance of clean renewable energy projects within in the Asian-pacific area beyond 2012. The fund, according ADB's Vice President Shäfer-Presuss, will give developing countries an incentive to generate renewable and efficient energy sources. The fund is a supplement to ADB's Carbon Market Initiative, which provides "finance and technical support to clean energy projects up until 2012".