AFP
Tuesday, 19 July 2011
China will introduce a pilot scheme for carbon emissions trading and gradually develop a national market as the world's largest polluter seeks to reduce emissions and save energy, state media said.
China will promote the market's development through "punitive" electricity tariffs on power-intensive industries and other new policies, Xie Zhenhua, a top climate official, was quoted by Xinhua news agency as saying on Sunday.
The report gave no timetable or other specifics on how the system would work.
However, China has said previously it hoped to introduce a pilot scheme in a handful of major cities by 2013 and expand it nationally in 2015.
Faced with severe pollution, a predicted surge in urbanisation and a struggle to ensure adequate energy supplies to fuel its rapid growth, China has outlined plans to reduce carbon emissions in its latest five-year economic plan.
Carbon trading typically involves the setting of absolute limits on how much carbon dioxide emitters such as industrial enterprises can produce.
Once those are reached they can then purchase the unused emission allowances of other parties who have come in under their limits.
Environmental analysts have said China is keen to get a functioning carbon trading market up and running soon, especially with the expiry of the Kyoto Protocol looming in 2012.
China and other developing nations have not been bound by the protocol to reduce emissions of the gases blamed for global warming and climate change.
But it remains unclear what a future new protocol would call for with China under pressure to rein in emissions growth since it surpassed the United States as the world's largest greenhouse gas source in recent years.
As part of the carbon-trading push, China will promote development of green technologies and products through means such as preferential taxation policies, Xie, a vice minister with China's top economic planning agency, was quoted saying.
It also would "manage growth in energy-intensive industries", he said.
China has pledged to reduce the amount of carbon dioxide produced per unit of gross domestic product by 40 to 45 percent by the end of 2020 - essentially a pledge to slow emissions growth, but not a cut.
Tuesday, 19 July 2011
Labour could start a green industrial revolution
The coalition's proposed electricity market reform is radical, but Labour could go further with a green growth strategy
Michael Jacobs
guardian.co.uk, Monday 18 July 2011 15.00 BST
In the midst of Murdochgate, you'd have had to be wearing a pretty big anorak to have been excited by the government's proposals for reform of the electricity market. But this announcement has huge implications for how Britain tackles climate change, and even wider significance for the political battle over economic policy.
The problem the government needed to address was stark: how to get private-sector energy companies to invest £110bn over the next decade to replace a quarter of Britain's power stations, while cutting the nation's carbon emissions by a third, reducing dependence on imported gas and keeping energy bills low enough to prevent a consumer revolt.
It was a problem the last Labour government realised could only be addressed by fundamental reform; it's fallen to the coalition to implement it. And the results could not be more radical. The plans finally do away with the liberalised electricity market created by the Thatcher administration a quarter of a century ago.
The Tories believed that the private sector would provide, and competition would keep prices down. And for a while, in an over-supplied market, it worked. Energy prices fell and consumers and businesses enjoyed the benefits.
But that world is gone. Now, to ensure the lights are kept on, Britain's electricity industry needs a huge wave of new investment. And for reasons both of climate change and energy security, most of this has to be not in traditional fossil fuels, but in low-carbon technologies – renewables (onshore and offshore wind, biomass and solar), nuclear power and carbon capture and storage, along with major investments in transmission lines, smart grid technologies and energy efficiency to reduce demand.
The problem is that the current industry arrangements will simply not deliver this. So the government's white paper envisages a completely new kind of publicly shaped energy market. Private sector companies' investment will be guided by a series of government interventions: a minimum carbon price; contracts with energy suppliers for low-carbon energy; a regulation setting maximum emissions levels; a set of payments to ensure sufficient capacity; and a new energy efficiency obligation.
One energy company chief executive has complained that this will make him less like a businessman and more like an administrator of the government's energy plan. That's an exaggeration: the private sector will still be able to innovate to win market share and profits, and the government wants more competition to keep prices down. But Britain is definitely moving towards a much more interventionist, quasi-planned energy system.
That this should be introduced by a Tory-led government, which is elsewhere attacking and abolishing a whole series of economic regulations, is remarkable. It's a testament to the inescapable logic of tackling climate change: it cannot be done simply by minor market adjustments. Precisely for this reason, we can expect to see the plans criticised by the Tory right, whose climate scepticism is exceeded only by their attachment to free-market economic policy.
It's vital, therefore, that the coalition seeks Labour's support for its reforms. Labour has a difficult balancing act to play – rightly articulating consumers' concerns about rising prices, but broadly supportive of the new system. In fact, without Labour's agreement the reforms cannot work. Only if investors know the plans have cross-party backing, and will therefore be long term, will they provide the funds.
But Labour has a chance to go further. For the real prize is not just to install the new low-carbon energy systems, but also to make sure British-based firms become leaders in the technologies and services needed for them, so that the UK gets the maximum jobs and export benefit from the investment. In Labour's final year of office, its low-carbon industrial strategy began this process, notably in providing support for offshore wind turbine manufacturing. But there is much more to be done.
Internationally, "green growth" strategies of this kind are now gaining increasing traction, in economies as different as those of Germany, China and Korea. At a time when the British economy is desperately in search of new sources of growth, the potential for a green industrial revolution here too is huge. But this will require a much more active role for government. As Mariana Mazzucato shows in a new Demos pamphlet, almost all the technological revolutions that have spurred new waves of growth in the past have sprung from government activity. They require what she calls an "entrepreneurial state", willing to shape the technological and economic future.
An active industrial policy to stimulate green growth in this way looks like a step too far for a coalition wedded to orthodox economic theory. But it could be Labour's opportunity. Here lies the makings of an alternative economic strategy, focused on growth, skilled job creation and a revival of Britain's manufacturing sector.
Michael Jacobs
guardian.co.uk, Monday 18 July 2011 15.00 BST
In the midst of Murdochgate, you'd have had to be wearing a pretty big anorak to have been excited by the government's proposals for reform of the electricity market. But this announcement has huge implications for how Britain tackles climate change, and even wider significance for the political battle over economic policy.
The problem the government needed to address was stark: how to get private-sector energy companies to invest £110bn over the next decade to replace a quarter of Britain's power stations, while cutting the nation's carbon emissions by a third, reducing dependence on imported gas and keeping energy bills low enough to prevent a consumer revolt.
It was a problem the last Labour government realised could only be addressed by fundamental reform; it's fallen to the coalition to implement it. And the results could not be more radical. The plans finally do away with the liberalised electricity market created by the Thatcher administration a quarter of a century ago.
The Tories believed that the private sector would provide, and competition would keep prices down. And for a while, in an over-supplied market, it worked. Energy prices fell and consumers and businesses enjoyed the benefits.
But that world is gone. Now, to ensure the lights are kept on, Britain's electricity industry needs a huge wave of new investment. And for reasons both of climate change and energy security, most of this has to be not in traditional fossil fuels, but in low-carbon technologies – renewables (onshore and offshore wind, biomass and solar), nuclear power and carbon capture and storage, along with major investments in transmission lines, smart grid technologies and energy efficiency to reduce demand.
The problem is that the current industry arrangements will simply not deliver this. So the government's white paper envisages a completely new kind of publicly shaped energy market. Private sector companies' investment will be guided by a series of government interventions: a minimum carbon price; contracts with energy suppliers for low-carbon energy; a regulation setting maximum emissions levels; a set of payments to ensure sufficient capacity; and a new energy efficiency obligation.
One energy company chief executive has complained that this will make him less like a businessman and more like an administrator of the government's energy plan. That's an exaggeration: the private sector will still be able to innovate to win market share and profits, and the government wants more competition to keep prices down. But Britain is definitely moving towards a much more interventionist, quasi-planned energy system.
That this should be introduced by a Tory-led government, which is elsewhere attacking and abolishing a whole series of economic regulations, is remarkable. It's a testament to the inescapable logic of tackling climate change: it cannot be done simply by minor market adjustments. Precisely for this reason, we can expect to see the plans criticised by the Tory right, whose climate scepticism is exceeded only by their attachment to free-market economic policy.
It's vital, therefore, that the coalition seeks Labour's support for its reforms. Labour has a difficult balancing act to play – rightly articulating consumers' concerns about rising prices, but broadly supportive of the new system. In fact, without Labour's agreement the reforms cannot work. Only if investors know the plans have cross-party backing, and will therefore be long term, will they provide the funds.
But Labour has a chance to go further. For the real prize is not just to install the new low-carbon energy systems, but also to make sure British-based firms become leaders in the technologies and services needed for them, so that the UK gets the maximum jobs and export benefit from the investment. In Labour's final year of office, its low-carbon industrial strategy began this process, notably in providing support for offshore wind turbine manufacturing. But there is much more to be done.
Internationally, "green growth" strategies of this kind are now gaining increasing traction, in economies as different as those of Germany, China and Korea. At a time when the British economy is desperately in search of new sources of growth, the potential for a green industrial revolution here too is huge. But this will require a much more active role for government. As Mariana Mazzucato shows in a new Demos pamphlet, almost all the technological revolutions that have spurred new waves of growth in the past have sprung from government activity. They require what she calls an "entrepreneurial state", willing to shape the technological and economic future.
An active industrial policy to stimulate green growth in this way looks like a step too far for a coalition wedded to orthodox economic theory. But it could be Labour's opportunity. Here lies the makings of an alternative economic strategy, focused on growth, skilled job creation and a revival of Britain's manufacturing sector.
What's the best small-scale renewable heat energy system?
Price hikes mean it could be time to consider heat pumps, biomass boilers and solar hot water – if you can afford them
At a time of eye-watering energy price hikes, turning our homes into mini-power stations means we can cut bills and carbon emissions by generating a significant proportion of our heating and hot water needs ourselves.
To find out which renewable heat technology works best, the latest Ethical Consumer magazine Buyers' Guide looked at the three main options – ground source heat pumps, biomass boilers and solar hot water.
Ground source heat pumps work by tapping into the energy which is permanently present underground. A long, coiled fluid-filled pipe buried under your garden transfers this energy to a heat exchanger which then makes hot water for heating and for use around the house.
On the plus side, these systems can provide up to 80% of a household's hot water and heating needs. According to sustainable energy consultants CHB Sustainability they can typically save around £70 and 750kg of CO2 a year compared to an average condensing gas boiler.
On the down side, heat pumps cost from £9,000 to £17,000, plus burying the energy-collecting pipe in the back garden – if it's big enough – can be a massively disruptive project. We gave best buys on ethical and environmental grounds to Kensa and Master Therm.
The biggest carbon savings come from biomass boilers, which can slash annual household emissions by up to one tonne. Boilers cost around £11,000, are fridge-freezer sized and ideally have a hopper (store) attached to them allowing the feedstock to be automatically topped up.
The impressive carbon savings come from the fact that the boilers run on some form of wood, which have absorbed CO2 over their lifetime – either logs, wood chips or pellets made from compressed sawdust. Whilst CO2 is released from burning the wood, as long as new trees continue to grow in place of those used for fuel then the process is sustainable.
However there are concerns from groups such as BioFuel Watch, who claim that sustainable sources of wood are becoming increasingly difficult to find. The Biomass Energy Centre is a great source of information on this point.
Another downer is that unlike the other technologies we examined, biomass boilers could actually end up costing you £40 a year more to run compared to a typical condensing gas boiler.
Biomass boilers are also banned in Smoke Control Areas which include most urban locations. If you live outside these smoke-free zones then our Best Buys include Eco Angus and Froling.
The cheapest renewable technology we looked at are solar hot water systems, which on average cost around £4,800 to install. Households fitting this technology can expect to make modest carbon savings as well saving around £60 a year compared to a typical condensing gas boiler.
A solar collector the size of a velux window is fitted onto your roof which heats water, which in turn is fed into a hot water cylinder inside your house. Energy is saved as the warmed water only needs a small boost from a conventional boiler or immersion heater to make the water hotter.
As the cheapest and easiest technology to install, if you're looking to buy a renewable-heating system in our view the best option would be to choose a solar hot water system. Our Best Buys included: Filsol and Solartwin.
To encourage more of us to fit these renewable technologies, the government is about to launch the first round of its Renewable Heat Incentive any day now. The scheme's major caveat is that it's only open to those households which have already installed top-notch levels of insulation.
The first phase will consist of a one-off payment toward the cost of buying the kit while phase two, due to launch in October 2012, is expected to take the form of regular payments over 15 years or more for the use of the equipment.
• Simon Birch writes for Ethical Consumer Magazine
At a time of eye-watering energy price hikes, turning our homes into mini-power stations means we can cut bills and carbon emissions by generating a significant proportion of our heating and hot water needs ourselves.
To find out which renewable heat technology works best, the latest Ethical Consumer magazine Buyers' Guide looked at the three main options – ground source heat pumps, biomass boilers and solar hot water.
Ground source heat pumps work by tapping into the energy which is permanently present underground. A long, coiled fluid-filled pipe buried under your garden transfers this energy to a heat exchanger which then makes hot water for heating and for use around the house.
On the plus side, these systems can provide up to 80% of a household's hot water and heating needs. According to sustainable energy consultants CHB Sustainability they can typically save around £70 and 750kg of CO2 a year compared to an average condensing gas boiler.
On the down side, heat pumps cost from £9,000 to £17,000, plus burying the energy-collecting pipe in the back garden – if it's big enough – can be a massively disruptive project. We gave best buys on ethical and environmental grounds to Kensa and Master Therm.
The biggest carbon savings come from biomass boilers, which can slash annual household emissions by up to one tonne. Boilers cost around £11,000, are fridge-freezer sized and ideally have a hopper (store) attached to them allowing the feedstock to be automatically topped up.
The impressive carbon savings come from the fact that the boilers run on some form of wood, which have absorbed CO2 over their lifetime – either logs, wood chips or pellets made from compressed sawdust. Whilst CO2 is released from burning the wood, as long as new trees continue to grow in place of those used for fuel then the process is sustainable.
However there are concerns from groups such as BioFuel Watch, who claim that sustainable sources of wood are becoming increasingly difficult to find. The Biomass Energy Centre is a great source of information on this point.
Another downer is that unlike the other technologies we examined, biomass boilers could actually end up costing you £40 a year more to run compared to a typical condensing gas boiler.
Biomass boilers are also banned in Smoke Control Areas which include most urban locations. If you live outside these smoke-free zones then our Best Buys include Eco Angus and Froling.
The cheapest renewable technology we looked at are solar hot water systems, which on average cost around £4,800 to install. Households fitting this technology can expect to make modest carbon savings as well saving around £60 a year compared to a typical condensing gas boiler.
A solar collector the size of a velux window is fitted onto your roof which heats water, which in turn is fed into a hot water cylinder inside your house. Energy is saved as the warmed water only needs a small boost from a conventional boiler or immersion heater to make the water hotter.
As the cheapest and easiest technology to install, if you're looking to buy a renewable-heating system in our view the best option would be to choose a solar hot water system. Our Best Buys included: Filsol and Solartwin.
To encourage more of us to fit these renewable technologies, the government is about to launch the first round of its Renewable Heat Incentive any day now. The scheme's major caveat is that it's only open to those households which have already installed top-notch levels of insulation.
The first phase will consist of a one-off payment toward the cost of buying the kit while phase two, due to launch in October 2012, is expected to take the form of regular payments over 15 years or more for the use of the equipment.
• Simon Birch writes for Ethical Consumer Magazine
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