Fri Sep 17, 2010 1:00am EDT
China is positioning itself to take advantage of the low carbon economy, propelled by healthy private sector climate-related investments and a favorable political climate.
The country's climate-related revenues in 2009 have put China among the top 10 countries for the first time, according to HSBC's third annual review of its Climate Change Index. Fueling the momentum is a 30-fold increase in private sector investment and targeted climate-related stimulus spending.
"The rapid growth of China's engagement with climate change has been staggering: last year China accounted for over 24 percent of total global investment into the climate change sector, having represented only 6 percent of the total in 2004," Joaquim de Lima, global head of quant research for equities at HSBC, said in a statement this week. "We believe with continued strong investment flow from the private sector, coupled with political leadership, China is now well positioned to move to the forefront of developments in the emerging low carbon economy, which should ultimately feed into the future growth of its own economy."
The HSBC launched its Climate Change Index in 2007. It is now comprised of 367 companies providing climate related goods and services, a 140 percent increase since 2004. The index only includes companies whose engagement in climate-related products and services is meaningful to their revenues.
As a whole, its climate-related revenues totaled $530 billion in 2009. Revenues declined 0.9 percent, compared to the revenues of the 2,400 companies that make up the MSCI ACWI (All Country World Index) slid 3 percent over the same period.
HSBC favors the energy efficiency and energy management subsector for particularly strong growth.
"Energy efficiency and energy management remain absolutely key: Not only has the sub sector performed well, but we predict that it is likely to continue to do so next year, as the 'low hanging fruit' and a beneficiary of further stimulus spend," Vijay Sumon, an HSBC Global Research index specialist, said in a statement. "We see it as a 'no regrets' option, as it makes sense for businesses regardless of climate change."
Sunday, 19 September 2010
Renewable energy industry right on target – when the wind blows
Despite reaching its 10% goal one gusty Monday, wind power is still facing opposition
Terry Macalister and Tim Webb The Observer, Sunday 19 September 2010
It is fair to assume that the millions of viewers who tuned into EastEnders a week last Monday did not simultaneously give thanks for the wonder of wind. But it would have been right for them to applaud the spinning turbines which, we were later told by the National Grid, were providing a record 10% of all the electricity being used in Britain at the time.
The figure appeared to be a milestone. But it was followed by predictions that only 10% of all wind capacity will be available for use when the UK needs it most: in the depths of the coming winter. So which figure tells how close the UK is to achieving its targets on renewable energy?
The contrasting numbers explain why supporters of wind power – who say it will help combat climate change – and its opponents – who say it is an expensive and inefficient technology – always find something to lock horns about. While industry group RenewableUK will this week be celebrating the attainment of five gigawatts of wind capacity, detractors at the UK Independence Party (Ukip) are calling the claims a "tissue of lies".
The September record high for wind energy was reached because turbines were spinning at full pelt in windy weather while demand was lower than normal and other sources of power were not being used.
Critics argue that the unpredictability of wind turbines – which depend on the weather at any given time in a particular location – is nigh-on impossible for the grid to deal with. The grid says it assumes wind power is available at 30% of total capacity on average, but potentially at as little as 10%.
The latter figure compares with availability assumptions of 90% for coal or gas and even 100% for electricity provided through the interconnector link with France. Grid figures for the past three months show wind providing 3,000 gigawatt hours of power, compared with 48,000 for gas, 49,000 for coal and 13,000 for nuclear. These numbers seem to show turbines providing the grid with less than 3% of its power. However, it is thought that half of all wind farms supply customers direct – circumventing the grid – so the overall number may be nearer 6%.
This may seem low, but with a raft of new wind farms coming on stream – the world's biggest offshore facility opens officially off the Isle of Thanet on Thursday – capacity is growing fast. And when combined with new biomass plants (which burn crops) and old hydro schemes (using dams) the UK is close to meeting its 2010 target of generating 10% of electricity from green sources. The target was set eight years ago by the Labour government, and deemed a dream by many.
As recently as 2007, the UK was still less than halfway to meeting the energy target, and lagged behind most of Europe on renewable energy.
RenewableUK points out that despite continuing planning logjams and other hindrances, an entire gigawatt of capacity – enough to supply a city the size of Birmingham when the wind blows – was added last year. This is almost double the capacity of all the wind farms in the UK in 2002, and almost a fifth of the total current capacity, of 4.7 gigawatts. By the end of this month, another gigawatt of projects will have been built so far this year, half of them offshore.
Yet some remain implacably opposed to wind farms, particularly onshore ones. Next month, Godfrey Bloom, a Ukip MEP, is organising a seminar in London titled "Europe's Ill Wind – wind turbines and the tissue of lies". The party is opposed to the European-wide targets on renewables and wants a halt to large onshore wind farms and subsidies.
The 10% target is attainable not only because of the recent rapid addition of wind capacity, but also because the recession has reduced overall demand. Electricity consumption fell last year by 5%, mainly because of the downturn, and experts at accountant Ernst & Young doubt whether the 2010 target could be met if times were easier.
The challenge facing the industry and policymakers is the much tougher and legally binding EU 2020 renewables target. In the UK this requires 15% of all energy to come from renewable sources. Because this includes heating and transport – which are harder to "green" – experts say about a third of all electricity will have to be renewable to meet the target. Many energy executives are openly sceptical about this.
The coalition government said it was encouraged by the 10% figure. A spokesman for the Department of Energy and Climate Change said: "The pace at which industry is getting wind turbines up and getting other projects moving is encouraging, but there is still much more to do. The UK currently has the third-lowest proportion of renewables out of 27 EU states and we are determined that this improves."
That is just what Maria McCaffery, chief executive of RenewableUK, wants to hear from a government that claims it will be the greenest yet, even though industry critics are urging ministers to end the wind subsidy regime.
"Judging by these figures we are a hair's breadth from reaching our 2010 targets," she said, "mainly on the back of tremendous growth of wind energy. The message to take away is twofold: the target-based approach works, and 2020 targets are achievable."
Ben Warren, energy expert at Ernst & Young, is more cautious: "It's not time to rejoice quite yet: there is still some way to go to meet the 2020 targets. It gets more difficult to add each extra gigawatt of generation due to site availability and grid constraints."
Like EastEnders, the battle over the future of wind will go on and on.
Terry Macalister and Tim Webb The Observer, Sunday 19 September 2010
It is fair to assume that the millions of viewers who tuned into EastEnders a week last Monday did not simultaneously give thanks for the wonder of wind. But it would have been right for them to applaud the spinning turbines which, we were later told by the National Grid, were providing a record 10% of all the electricity being used in Britain at the time.
The figure appeared to be a milestone. But it was followed by predictions that only 10% of all wind capacity will be available for use when the UK needs it most: in the depths of the coming winter. So which figure tells how close the UK is to achieving its targets on renewable energy?
The contrasting numbers explain why supporters of wind power – who say it will help combat climate change – and its opponents – who say it is an expensive and inefficient technology – always find something to lock horns about. While industry group RenewableUK will this week be celebrating the attainment of five gigawatts of wind capacity, detractors at the UK Independence Party (Ukip) are calling the claims a "tissue of lies".
The September record high for wind energy was reached because turbines were spinning at full pelt in windy weather while demand was lower than normal and other sources of power were not being used.
Critics argue that the unpredictability of wind turbines – which depend on the weather at any given time in a particular location – is nigh-on impossible for the grid to deal with. The grid says it assumes wind power is available at 30% of total capacity on average, but potentially at as little as 10%.
The latter figure compares with availability assumptions of 90% for coal or gas and even 100% for electricity provided through the interconnector link with France. Grid figures for the past three months show wind providing 3,000 gigawatt hours of power, compared with 48,000 for gas, 49,000 for coal and 13,000 for nuclear. These numbers seem to show turbines providing the grid with less than 3% of its power. However, it is thought that half of all wind farms supply customers direct – circumventing the grid – so the overall number may be nearer 6%.
This may seem low, but with a raft of new wind farms coming on stream – the world's biggest offshore facility opens officially off the Isle of Thanet on Thursday – capacity is growing fast. And when combined with new biomass plants (which burn crops) and old hydro schemes (using dams) the UK is close to meeting its 2010 target of generating 10% of electricity from green sources. The target was set eight years ago by the Labour government, and deemed a dream by many.
As recently as 2007, the UK was still less than halfway to meeting the energy target, and lagged behind most of Europe on renewable energy.
RenewableUK points out that despite continuing planning logjams and other hindrances, an entire gigawatt of capacity – enough to supply a city the size of Birmingham when the wind blows – was added last year. This is almost double the capacity of all the wind farms in the UK in 2002, and almost a fifth of the total current capacity, of 4.7 gigawatts. By the end of this month, another gigawatt of projects will have been built so far this year, half of them offshore.
Yet some remain implacably opposed to wind farms, particularly onshore ones. Next month, Godfrey Bloom, a Ukip MEP, is organising a seminar in London titled "Europe's Ill Wind – wind turbines and the tissue of lies". The party is opposed to the European-wide targets on renewables and wants a halt to large onshore wind farms and subsidies.
The 10% target is attainable not only because of the recent rapid addition of wind capacity, but also because the recession has reduced overall demand. Electricity consumption fell last year by 5%, mainly because of the downturn, and experts at accountant Ernst & Young doubt whether the 2010 target could be met if times were easier.
The challenge facing the industry and policymakers is the much tougher and legally binding EU 2020 renewables target. In the UK this requires 15% of all energy to come from renewable sources. Because this includes heating and transport – which are harder to "green" – experts say about a third of all electricity will have to be renewable to meet the target. Many energy executives are openly sceptical about this.
The coalition government said it was encouraged by the 10% figure. A spokesman for the Department of Energy and Climate Change said: "The pace at which industry is getting wind turbines up and getting other projects moving is encouraging, but there is still much more to do. The UK currently has the third-lowest proportion of renewables out of 27 EU states and we are determined that this improves."
That is just what Maria McCaffery, chief executive of RenewableUK, wants to hear from a government that claims it will be the greenest yet, even though industry critics are urging ministers to end the wind subsidy regime.
"Judging by these figures we are a hair's breadth from reaching our 2010 targets," she said, "mainly on the back of tremendous growth of wind energy. The message to take away is twofold: the target-based approach works, and 2020 targets are achievable."
Ben Warren, energy expert at Ernst & Young, is more cautious: "It's not time to rejoice quite yet: there is still some way to go to meet the 2020 targets. It gets more difficult to add each extra gigawatt of generation due to site availability and grid constraints."
Like EastEnders, the battle over the future of wind will go on and on.
Let's learn from Portugal's renewable energy policy
Unlike the UK, Portugal has harnessed its natural resources to produce energy that is clean, safe and domestically controlled
Syma Tariq guardian.co.uk, Sunday 19 September 2010 10.00 BST
As Peter Beaumont recently wrote in the Observer, the British government has been looking to Portugal for new thinking on drugs policy. Lisbon has embarked on an unconventional but integrated approach – involving its health, local government and social care institutions – to treat abuse and addiction without focusing on criminality. The UK is now asking for advice, wanting to learn from Portugal's achievements.
There is something else that Britain can learn from one of its favourite holiday destinations, and that is a similarly integrated approach to renewable energy – particularly in terms of solar, wind and hydropower.
Of course, Portugal's energy industry benefits from a favourable climate. That climate is one of many reasons I relocated here, with its abundance of warm weather, beautiful beaches, and proximity to nature. Lisbon is sun-scorched for half the year, while London gets hysterical for 30 days of summer.
But, even if the weather is bad most of the time, the UK also has its own favourable conditions. It has 10 times more coastline and benefits from plenty of wind throughout the year. If Portugal can increase its reliance on green electricity from 17% to 45% in just five years, our own leaders have little excuse for our measly 3%.
There is no denying that renewable energy is expensive – it is a common complaint here in Lisbon, where residents have seen their electricity bills rise nearly 16% in the last five years. But as the initial investment expense decreases, and as the nature of fuel-free energy sources entails little maintenance costs, prices will plateau and eventually decrease.
Meanwhile, British households have also faced a big rise in their bills – 14% – in the same five-year period, to the great delight of shareholders of private British energy firms.
Ten years ago, Portugal's transmission lines were also owned by private power companies that had no interest in investing in renewables because using the technology would have meant radical changes in the grid infrastructure, increasing costs to industry.
To get around this, the government bought the lines, and began adapting the grid, including more flexibility and better connections in remote areas to allow the production and distribution of electricity from small generators, such as domestic solar panels. There was also a combination of admirable incentives, including the introduction of feed-in tariffs – something the British coalition government wants to get rid of.
Due to the decline in North Sea production, and the increasing costs of mining and using coal, the UK is expected to become a major importer of oil and gas by 2015. Meanwhile Portugal, which has no fossil fuels of its own, has harnessed its natural resources to produce its own energy that is clean, safe and domestically controlled. Once almost completely reliant on fossil fuel imports that accounted for half of the national trade deficit, the government says that by 2014 projects such as the Alto Minho windfarm, Moura solar power station and Aguçadora wave park will allow the country to shut down two conventional power plants and reduce operations at other facilities.
An added bonus is that Portuguese engineers and companies are now global players because of their innovations. EDP Renováveis, first listed on stock exchanges in 2008, is the third largest company in the world in wind-generated electricity output. This year it signed contracts in the US to sell electricity from its wind farm in Iowa to the Tennessee Valley Authority.
Portugal is a country that many had written off as the European debt crisis hit. But, like its joined-up thinking on drug policy, Portugal's energy solutions have come about by applying intellectual resources to produce a realistic and smart energy grid that will, hopefully, see financial benefits too.
The UK coastline stretches for 11,073 miles, compared with Portugal's 1,114 – giving it ample space to explore offshore wind and hydropower, backed up by its already existing fossil fuel generation. Though it is taking steps towards producing more clean electricity, the government's impending public sector cuts mean many vital projects, incentives and green jobs are at serious risk.
Portugal's next target is 60% renewable energy by 2020 – with its track record, this goal should be plain sailing. Perhaps Britain should be asking for more advice.
Syma Tariq guardian.co.uk, Sunday 19 September 2010 10.00 BST
As Peter Beaumont recently wrote in the Observer, the British government has been looking to Portugal for new thinking on drugs policy. Lisbon has embarked on an unconventional but integrated approach – involving its health, local government and social care institutions – to treat abuse and addiction without focusing on criminality. The UK is now asking for advice, wanting to learn from Portugal's achievements.
There is something else that Britain can learn from one of its favourite holiday destinations, and that is a similarly integrated approach to renewable energy – particularly in terms of solar, wind and hydropower.
Of course, Portugal's energy industry benefits from a favourable climate. That climate is one of many reasons I relocated here, with its abundance of warm weather, beautiful beaches, and proximity to nature. Lisbon is sun-scorched for half the year, while London gets hysterical for 30 days of summer.
But, even if the weather is bad most of the time, the UK also has its own favourable conditions. It has 10 times more coastline and benefits from plenty of wind throughout the year. If Portugal can increase its reliance on green electricity from 17% to 45% in just five years, our own leaders have little excuse for our measly 3%.
There is no denying that renewable energy is expensive – it is a common complaint here in Lisbon, where residents have seen their electricity bills rise nearly 16% in the last five years. But as the initial investment expense decreases, and as the nature of fuel-free energy sources entails little maintenance costs, prices will plateau and eventually decrease.
Meanwhile, British households have also faced a big rise in their bills – 14% – in the same five-year period, to the great delight of shareholders of private British energy firms.
Ten years ago, Portugal's transmission lines were also owned by private power companies that had no interest in investing in renewables because using the technology would have meant radical changes in the grid infrastructure, increasing costs to industry.
To get around this, the government bought the lines, and began adapting the grid, including more flexibility and better connections in remote areas to allow the production and distribution of electricity from small generators, such as domestic solar panels. There was also a combination of admirable incentives, including the introduction of feed-in tariffs – something the British coalition government wants to get rid of.
Due to the decline in North Sea production, and the increasing costs of mining and using coal, the UK is expected to become a major importer of oil and gas by 2015. Meanwhile Portugal, which has no fossil fuels of its own, has harnessed its natural resources to produce its own energy that is clean, safe and domestically controlled. Once almost completely reliant on fossil fuel imports that accounted for half of the national trade deficit, the government says that by 2014 projects such as the Alto Minho windfarm, Moura solar power station and Aguçadora wave park will allow the country to shut down two conventional power plants and reduce operations at other facilities.
An added bonus is that Portuguese engineers and companies are now global players because of their innovations. EDP Renováveis, first listed on stock exchanges in 2008, is the third largest company in the world in wind-generated electricity output. This year it signed contracts in the US to sell electricity from its wind farm in Iowa to the Tennessee Valley Authority.
Portugal is a country that many had written off as the European debt crisis hit. But, like its joined-up thinking on drug policy, Portugal's energy solutions have come about by applying intellectual resources to produce a realistic and smart energy grid that will, hopefully, see financial benefits too.
The UK coastline stretches for 11,073 miles, compared with Portugal's 1,114 – giving it ample space to explore offshore wind and hydropower, backed up by its already existing fossil fuel generation. Though it is taking steps towards producing more clean electricity, the government's impending public sector cuts mean many vital projects, incentives and green jobs are at serious risk.
Portugal's next target is 60% renewable energy by 2020 – with its track record, this goal should be plain sailing. Perhaps Britain should be asking for more advice.
Carbon-absorbent foam triumphs at 2010 Earth Awards
Photosynthetic foam developed by Prof David Wendell and inspired by nest of South American frog will line coal-burning power plants
Shanta Barley
guardian.co.uk, Thursday 16 September 2010 21.00 BST
An artificial foam inspired by the meringue-like nest of a South American frog has won the 2010 Earth Awards. The foam, which could help to tackle climate change, soaks up carbon dioxide from the atmosphere and generates sugars that can be converted into biofuel.
The Earth Awards were set up in 2007 to bring together green start-ups strapped for cash with investors. Between March and May, over 500 designs were submitted to a panel of judges that included Richard Branson, Jane Goodall, David de Rothschild and Diane von Furstenberg.
The panel awarded $10,000 each to six finalists in August. Tonight, the winning design – a photosynthetic foam developed by David Wendell and Carlo Monetmagno of the University of Cincinnati – was awarded $50,000 at Marlborough House, London, as part of the Prince of Wales' Start Festival.
The foam, which will be installed in the flues of coal-burning power plants, captures carbon dioxide and locks it away as sugar before it has a chance to enter the atmosphere and contribute to climate change. Due to its frothy structure, the foam can be up to five times more efficient than plants at converting carbon dioxide into sugar.
Wendell knows that the foam is manufacturing sugar – glucose – but he hasn't yet managed to extract the sugar in order to convert it into biofuel. Wendell says creating a biofuel like this is desirable as it reduces the pressure to grow biofuel crops on land for crops, and keeps the price of staple foods like cereal and rice down.
The secret to the foam's success is a protein that the Tungara frog uses as scaffolding in its foamy nests. "I read about a protein that the frog uses that allows bubbles to form in the nest, but doesn't destroy the lipid membranes of the eggs that the females lay in the foam, and realised that it was perfect for our own foam. The foam contains a mixture of over 11 different enzymes harvested from bacteria, plants and fungi. It fixes carbon dioxide as sugars like fructose and glucose at a rate that exceeds that found in plants," Wendell said.
According to Rick Fedrizzi, chief executive of the United States Green Building Council, one of the award judges, Wendell's idea and those of the other finalists were "amazing but wouldn't necessarily have seen the light of day without the Earth Awards".
"Cash prizes are great but the real benefit of the Earth Awards is that your idea or technology is recognised by your peers," says Fedrizzi. "Plus you get to network with venture capitalists, who might choose to invest in you at a later stage when your idea is more tangible."
Fedrizzi's favourite entry was the Sustainable Shell, a biodegradable home that can be built from the soil on which it sits. "You might be living in the Serengeti in Africa with access to nothing but mud and water, but by using these design principles anyone can build a strong, sustainable shelter," he says.
Designed by Michael Ramage of the Department of Architecture at Cambridge University, the home will probably be a hit among NGOs seeking to rebuild regions like Haiti that have been devastated by natural disasters. It's also very beautiful, says Fedrizzi: "It brings to mind centuries-old Moorish temples."
Among the other finalists is Jamie Lim, a Malaysian ethical designer who has created a range of sunglasses hand-crafted from bamboo – a fast-growing, biodegradable and low-carbon alternative to plastic. For every pair of "KAYU" sunglasses bought, Lim donates $20 towards surgery that restores sight in the developing world.
Another design recognised by the awards was Arthur Huang's Polli Bricks – a low-carbon form of cladding made from recycled plastic bottles that can be wrapped around buildings to insulate them. They come studded with solar-power LED lights and cost around ten times less than conventional cladding.
Not all of the entries into the Earth Awards were tangible structures, however. The Biomimicry Institute in Missoula, Montana, submitted Ask Nature – an open source digital library that allows people to find out how nature has solved problems that now confront humanity.
Shanta Barley
guardian.co.uk, Thursday 16 September 2010 21.00 BST
An artificial foam inspired by the meringue-like nest of a South American frog has won the 2010 Earth Awards. The foam, which could help to tackle climate change, soaks up carbon dioxide from the atmosphere and generates sugars that can be converted into biofuel.
The Earth Awards were set up in 2007 to bring together green start-ups strapped for cash with investors. Between March and May, over 500 designs were submitted to a panel of judges that included Richard Branson, Jane Goodall, David de Rothschild and Diane von Furstenberg.
The panel awarded $10,000 each to six finalists in August. Tonight, the winning design – a photosynthetic foam developed by David Wendell and Carlo Monetmagno of the University of Cincinnati – was awarded $50,000 at Marlborough House, London, as part of the Prince of Wales' Start Festival.
The foam, which will be installed in the flues of coal-burning power plants, captures carbon dioxide and locks it away as sugar before it has a chance to enter the atmosphere and contribute to climate change. Due to its frothy structure, the foam can be up to five times more efficient than plants at converting carbon dioxide into sugar.
Wendell knows that the foam is manufacturing sugar – glucose – but he hasn't yet managed to extract the sugar in order to convert it into biofuel. Wendell says creating a biofuel like this is desirable as it reduces the pressure to grow biofuel crops on land for crops, and keeps the price of staple foods like cereal and rice down.
The secret to the foam's success is a protein that the Tungara frog uses as scaffolding in its foamy nests. "I read about a protein that the frog uses that allows bubbles to form in the nest, but doesn't destroy the lipid membranes of the eggs that the females lay in the foam, and realised that it was perfect for our own foam. The foam contains a mixture of over 11 different enzymes harvested from bacteria, plants and fungi. It fixes carbon dioxide as sugars like fructose and glucose at a rate that exceeds that found in plants," Wendell said.
According to Rick Fedrizzi, chief executive of the United States Green Building Council, one of the award judges, Wendell's idea and those of the other finalists were "amazing but wouldn't necessarily have seen the light of day without the Earth Awards".
"Cash prizes are great but the real benefit of the Earth Awards is that your idea or technology is recognised by your peers," says Fedrizzi. "Plus you get to network with venture capitalists, who might choose to invest in you at a later stage when your idea is more tangible."
Fedrizzi's favourite entry was the Sustainable Shell, a biodegradable home that can be built from the soil on which it sits. "You might be living in the Serengeti in Africa with access to nothing but mud and water, but by using these design principles anyone can build a strong, sustainable shelter," he says.
Designed by Michael Ramage of the Department of Architecture at Cambridge University, the home will probably be a hit among NGOs seeking to rebuild regions like Haiti that have been devastated by natural disasters. It's also very beautiful, says Fedrizzi: "It brings to mind centuries-old Moorish temples."
Among the other finalists is Jamie Lim, a Malaysian ethical designer who has created a range of sunglasses hand-crafted from bamboo – a fast-growing, biodegradable and low-carbon alternative to plastic. For every pair of "KAYU" sunglasses bought, Lim donates $20 towards surgery that restores sight in the developing world.
Another design recognised by the awards was Arthur Huang's Polli Bricks – a low-carbon form of cladding made from recycled plastic bottles that can be wrapped around buildings to insulate them. They come studded with solar-power LED lights and cost around ten times less than conventional cladding.
Not all of the entries into the Earth Awards were tangible structures, however. The Biomimicry Institute in Missoula, Montana, submitted Ask Nature – an open source digital library that allows people to find out how nature has solved problems that now confront humanity.
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