By The Canadian Press
CALGARY - TransAlta Corporation says pipeline operator Enbridge Inc. plans to help develop Canada's first fully integrated carbon capture and storage project at the Alberta power producer's coal-fired plant near Edmonton.
TransAlta (TSX:TA) said Monday the development involves retro-fitting Keephills 3, a coal-fired plant west of Edmonton that's jointly owned by the Calgary company and its partner Capital Power Corp.
When complete, so-called Project Pioneer is expected to be one of the largest carbon capture and storage systems in the world and among the first to have an integrated underground storage system.
Most of the captured CO2 is intended to be shipped via pipeline and used to help pressurize old oil wells for added output. The rest will be permanently stored underground and prevented from entering the atmosphere.
Enbridge (TSX:ENB), Canada's largest oil pipeline operator and natural gas distributor, brings expertise in the design and construction of pipeline infrastructure, as well as extensive knowledge of CO2 sequestration.
"We believe CCS has potential to positively impact our industry and our ability to continue to grow sustainably and in an environmentally responsible manner," Enbridge president and CEO Pat Daniel said in a release.
"One of the most pressing environmental issues facing us today is the impact of greenhouse gas emissions on climate change. By working with the Project Pioneer partners to advance CCS technology, we're pleased to contribute to what may be one of our most significant solutions."
Project Pioneer is expected to account for at least 20 per cent of the Alberta government's target of reducing CO2 emissions in the province five million tonnes a year by 2015.
The project was awarded $778 million in federal and provincial funding last year. Another key partner is Alstom Canada, a global leader in energy technology and developer of a chilled ammonia carbon capture process.
TransAlta has long been a major industrial polluter from its coal-fired power plants in Western Canada.
Wednesday, 30 June 2010
Solar Thermal or Solar Photovoltaic? Areva Says 'Both!'
June 28, 2010 - 3:21 pm
Jonathan Fahey writes about energy, technology and science for Forbes
Anne Lauvergeon, chief executive of the French nuclear giant Areva, hinted last week during a meeting in Forbes offices that Areva is developing a hybrid solar power plant concept that combines a solar thermal system with solar photovoltaic (PV) panels.
She declined to give details, but the plant is being developed by Areva Solar, the division made up largely of the solar thermal company Ausra that Areva bought in March. Ausra's technology, similar to rival technology from start-ups eSolar, SolarReserve and Bright Source, uses mirrors to concentrate sunlight and beam it at water to heat it, turn it to steam, and generate electricity. Solar PV panels convert the sun's rays directly into electricity.
(The biggest solar thermal plant in the world, located in the Mojave Desert, is operated by NextEra Energy, the Florida company until recently known as FPL Group.)
Areva's strength is nuclear power--it is the world's biggest nuclear company--but it is venturing into other carbon-free generation technologies. It is developing giant off-shore wind turbines, biomass power plants (including projects in Florida and Washington with Duke Energy), and, with its Ausra acquisition, solar thermal power plants.
Lauvergeon said she has been approached over the years with offers to get into the business of making solar PV panels, but she declined because it looked to her like a low-margin commodity business. "I've refused many times to get into that game," she said. "It is meaningless to us."
Solar thermal projects, however, are bigger than solar PV installations and they require more complicated engineering and design, the kind of projects Avena excels at. Areva would buy the panels for its hybrid solar power plant, though it is unclear how exactly Areva plants to integrate the electricity-generating panels with its solar-concentrating mirrors and steam system.
Hybrid solar systems for buildings have been developed, including by the Turkish company Solimpeks Solar Energy. In this scheme, water is circulated among the PV panels, making them more efficient by cooling them and then providing the home with hot water. A system that generates electricity directly while also generating steam to spin a turbine and make electricity, however, would be more complicated.
Proponents of solar thermal technology say it is far cheaper per megawatt than solar PV projects. Also, it can store power, at least for moderate periods of time, as hot water or, in Areva's case, as molten salt. In an interview last week, though, Lewis Hay, chief executive of NextEra Energy, the biggest solar operator in the U.S., said he has higher hopes for PV because panel prices are dropping so fast. The cost for solar thermal equipment, like mirrors and steel and gears that position the mirrors, doesn't have as far to fall.
Perhaps Lauvergeon's secret hybrid solar thermal-solar PV concept will change Hay's mind, and turn him into a customer one day.
Jonathan Fahey writes about energy, technology and science for Forbes
Anne Lauvergeon, chief executive of the French nuclear giant Areva, hinted last week during a meeting in Forbes offices that Areva is developing a hybrid solar power plant concept that combines a solar thermal system with solar photovoltaic (PV) panels.
She declined to give details, but the plant is being developed by Areva Solar, the division made up largely of the solar thermal company Ausra that Areva bought in March. Ausra's technology, similar to rival technology from start-ups eSolar, SolarReserve and Bright Source, uses mirrors to concentrate sunlight and beam it at water to heat it, turn it to steam, and generate electricity. Solar PV panels convert the sun's rays directly into electricity.
(The biggest solar thermal plant in the world, located in the Mojave Desert, is operated by NextEra Energy, the Florida company until recently known as FPL Group.)
Areva's strength is nuclear power--it is the world's biggest nuclear company--but it is venturing into other carbon-free generation technologies. It is developing giant off-shore wind turbines, biomass power plants (including projects in Florida and Washington with Duke Energy), and, with its Ausra acquisition, solar thermal power plants.
Lauvergeon said she has been approached over the years with offers to get into the business of making solar PV panels, but she declined because it looked to her like a low-margin commodity business. "I've refused many times to get into that game," she said. "It is meaningless to us."
Solar thermal projects, however, are bigger than solar PV installations and they require more complicated engineering and design, the kind of projects Avena excels at. Areva would buy the panels for its hybrid solar power plant, though it is unclear how exactly Areva plants to integrate the electricity-generating panels with its solar-concentrating mirrors and steam system.
Hybrid solar systems for buildings have been developed, including by the Turkish company Solimpeks Solar Energy. In this scheme, water is circulated among the PV panels, making them more efficient by cooling them and then providing the home with hot water. A system that generates electricity directly while also generating steam to spin a turbine and make electricity, however, would be more complicated.
Proponents of solar thermal technology say it is far cheaper per megawatt than solar PV projects. Also, it can store power, at least for moderate periods of time, as hot water or, in Areva's case, as molten salt. In an interview last week, though, Lewis Hay, chief executive of NextEra Energy, the biggest solar operator in the U.S., said he has higher hopes for PV because panel prices are dropping so fast. The cost for solar thermal equipment, like mirrors and steel and gears that position the mirrors, doesn't have as far to fall.
Perhaps Lauvergeon's secret hybrid solar thermal-solar PV concept will change Hay's mind, and turn him into a customer one day.
Bulgaria suspended from U.N. Kyoto carbon trade
Wed, Jun 23 2010SOFIA (Reuters) - Bulgaria has been suspended from United Nations carbon trading for violating greenhouse reporting rules set under the Kyoto Protocol, a key tool to fight climate change, the Bulgarian environment ministry said on Tuesday.
Gulf Oil Spill
Sofia has been expecting the move since the middle of May, when the Bonn-based U.N. Climate Change Secretariat that oversees compliance of U.N.'s Kyoto Protocol warned the Balkan country its accreditation will be revoked.
The ministry said it has already taken measures to improve emission registering and expects a visit by U.N. experts in September and October to allow the Balkan country restore its accreditation before the end of the year.
The suspension will exclude Bulgarian companies from trading in greenhouse gas trading schemes under Kyoto, and would also affect their participation in the European Union's emissions trading scheme.
Industrial producers and utilities can carry out deals in the EU's carbon scheme, but the actual transfer of allowances to and from the national register would not be possible and would hamper spot trading.
Spot EU permit trading and Bulgaria's share of permits both account for a small portion to the total EU carbon market.
The suspension also means Bulgaria cannot sell the surplus sovereign emissions rights it has accumulated under Kyoto. The recession-hit country had hoped to sell at least 40 million metric tons of its Assigned Amount Units this year, worth upwards of 400 million euros ($488.2 million).
Greece received a similar suspension for seven months in 2008, but Greek companies were able to continue trading in the EU market as it was not yet linked to the Kyoto schemes.
(Reporting by Tsvetelia Tsolova)
Gulf Oil Spill
Sofia has been expecting the move since the middle of May, when the Bonn-based U.N. Climate Change Secretariat that oversees compliance of U.N.'s Kyoto Protocol warned the Balkan country its accreditation will be revoked.
The ministry said it has already taken measures to improve emission registering and expects a visit by U.N. experts in September and October to allow the Balkan country restore its accreditation before the end of the year.
The suspension will exclude Bulgarian companies from trading in greenhouse gas trading schemes under Kyoto, and would also affect their participation in the European Union's emissions trading scheme.
Industrial producers and utilities can carry out deals in the EU's carbon scheme, but the actual transfer of allowances to and from the national register would not be possible and would hamper spot trading.
Spot EU permit trading and Bulgaria's share of permits both account for a small portion to the total EU carbon market.
The suspension also means Bulgaria cannot sell the surplus sovereign emissions rights it has accumulated under Kyoto. The recession-hit country had hoped to sell at least 40 million metric tons of its Assigned Amount Units this year, worth upwards of 400 million euros ($488.2 million).
Greece received a similar suspension for seven months in 2008, but Greek companies were able to continue trading in the EU market as it was not yet linked to the Kyoto schemes.
(Reporting by Tsvetelia Tsolova)
UK’s challenge: Finding £550bn to build low-carbon economy
By Greenbang on Tuesday, 29th June 2010 If ever a time called for creative financing, now — 2010 in the UK — is the time.
It’s a classic case of immovable object (the need to cut fossil fuel energy use and carbon emissions) meets unstoppable force (the government’s decision to slash the deficit with a £40 billion austerity programme). When the estimated cost to meet the UK’s 2020 climate and clean-energy goals stands at £550 billion, the funding mechanisms need to get very creative indeed.
The challenge looks even greater when you consider the vast array of projects and technologies that are needed to get from here, 2010, to there, 2020.
That’s why a report issued today calls for the creation of a Green Investment Bank (GIB) tasked with finding ways to tackle climate and energy investment barriers, as well as to better coordinate the efforts of an assortment of agencies, funds and initiatives currently working in those areas.
“The traditional approach of simply increasing the rewards to investors in the low-carbon economy has delivered only a fraction of the investment needed,” said Nick Mabey, coauthor of the report — “Unlocking investment to deliver Britain’s low carbon future” — released today by the Green Investment Bank Commission. “It is time for a new approach.”
The report notes that financing needed to create a low-carbon economy dwarfs the amount spent on the UK’s “dash for gas” in the 1990s. That investment came to around £11 billion, “which was considered transformational at the
time.”
Rather than simply providing capital for energy and climate efforts, the Green Investment Bank should focus on lowering risk for investors, the report recommended. It could develop a variety of financing strategies for low-carbon technologies and infrastructure, including:
•Equity co-investment, early-stage grants, insurance products and purchase and securitisation of project finance loans;
•Green bonds to access to the pools of capital held by institutional investors;
•Green individual savings accounts (ISAs); and
•New levies, sale of government-held assets or bank bonus taxes.
“The GIB, with its focus on innovative risk mitigation, will send a strong signal to investors that the UK is serious about its low carbon transformation,” Mabey said. “By unlocking major new streams of investment the GIB will give greater certainty of meeting the UK’s climate change targets and give better value for money to taxpayers and energy consumers.”
“It is a tremendous opportunity to rapidly scale up the investment we need to tackle climate change, whilst simultaneously creating the jobs and industries of our future,” added James Cameron, executive director and vice chairman of Climate Change Capital and also a member of the Green Investment Bank Commission.
A number of organisations quickly responded by welcoming the commission’s recommendations:
“The (Energy Technologies Institute’s) investment approach is very much in line with the proposals in the report, which recommend that government funding for low-carbon innovation should be channelled through ‘commercially structured investments’ which would allow the UK to ‘double or treble the private sector leverage, while doubling the pace of development,’ ” said David Clarke, chief executive of the Energy Technologies Institute. “The commission also recommends that support for the delivery of UK’s emission reduction targets should be based on a ‘public-private investment model and address specific market failures and investment barriers in a way that will achieve emission reductions at least cost to taxpayers and energy consumers.’ This aligns with the structure and operation of the Energy Technologies Institute.”
“Developing a greener UK will not only cut our climate-changing emissions: it will boost the economy, reduce our reliance on overseas fossil fuels and build a safer, cleaner future for us all,” said Simon Bullock, senior economy campaigner for Friends of the Earth. “But we cannot afford to dither — the coalition must make setting up the Green Investment Bank a major priority.”
“The GIB needs to fill the equity funding gap for emerging companies supplying new technology into the ‘green’ sector that the private sector will not provide — straddling the ‘valley of death’ for early stage financing,” said Vimal Vallabh, director of corporate finance for PricewaterhouseCoopers. “It will require the government to assume a higher risk profile than those in the private sector are prepared to take on. What the bank should not do, is compete with private capital. It should be there to support the establishment of a low carbon economy.”
It’s a classic case of immovable object (the need to cut fossil fuel energy use and carbon emissions) meets unstoppable force (the government’s decision to slash the deficit with a £40 billion austerity programme). When the estimated cost to meet the UK’s 2020 climate and clean-energy goals stands at £550 billion, the funding mechanisms need to get very creative indeed.
The challenge looks even greater when you consider the vast array of projects and technologies that are needed to get from here, 2010, to there, 2020.
That’s why a report issued today calls for the creation of a Green Investment Bank (GIB) tasked with finding ways to tackle climate and energy investment barriers, as well as to better coordinate the efforts of an assortment of agencies, funds and initiatives currently working in those areas.
“The traditional approach of simply increasing the rewards to investors in the low-carbon economy has delivered only a fraction of the investment needed,” said Nick Mabey, coauthor of the report — “Unlocking investment to deliver Britain’s low carbon future” — released today by the Green Investment Bank Commission. “It is time for a new approach.”
The report notes that financing needed to create a low-carbon economy dwarfs the amount spent on the UK’s “dash for gas” in the 1990s. That investment came to around £11 billion, “which was considered transformational at the
time.”
Rather than simply providing capital for energy and climate efforts, the Green Investment Bank should focus on lowering risk for investors, the report recommended. It could develop a variety of financing strategies for low-carbon technologies and infrastructure, including:
•Equity co-investment, early-stage grants, insurance products and purchase and securitisation of project finance loans;
•Green bonds to access to the pools of capital held by institutional investors;
•Green individual savings accounts (ISAs); and
•New levies, sale of government-held assets or bank bonus taxes.
“The GIB, with its focus on innovative risk mitigation, will send a strong signal to investors that the UK is serious about its low carbon transformation,” Mabey said. “By unlocking major new streams of investment the GIB will give greater certainty of meeting the UK’s climate change targets and give better value for money to taxpayers and energy consumers.”
“It is a tremendous opportunity to rapidly scale up the investment we need to tackle climate change, whilst simultaneously creating the jobs and industries of our future,” added James Cameron, executive director and vice chairman of Climate Change Capital and also a member of the Green Investment Bank Commission.
A number of organisations quickly responded by welcoming the commission’s recommendations:
“The (Energy Technologies Institute’s) investment approach is very much in line with the proposals in the report, which recommend that government funding for low-carbon innovation should be channelled through ‘commercially structured investments’ which would allow the UK to ‘double or treble the private sector leverage, while doubling the pace of development,’ ” said David Clarke, chief executive of the Energy Technologies Institute. “The commission also recommends that support for the delivery of UK’s emission reduction targets should be based on a ‘public-private investment model and address specific market failures and investment barriers in a way that will achieve emission reductions at least cost to taxpayers and energy consumers.’ This aligns with the structure and operation of the Energy Technologies Institute.”
“Developing a greener UK will not only cut our climate-changing emissions: it will boost the economy, reduce our reliance on overseas fossil fuels and build a safer, cleaner future for us all,” said Simon Bullock, senior economy campaigner for Friends of the Earth. “But we cannot afford to dither — the coalition must make setting up the Green Investment Bank a major priority.”
“The GIB needs to fill the equity funding gap for emerging companies supplying new technology into the ‘green’ sector that the private sector will not provide — straddling the ‘valley of death’ for early stage financing,” said Vimal Vallabh, director of corporate finance for PricewaterhouseCoopers. “It will require the government to assume a higher risk profile than those in the private sector are prepared to take on. What the bank should not do, is compete with private capital. It should be there to support the establishment of a low carbon economy.”
Greg Barker, climate change minister: 'We cannot go on relying on foreign fuel'
Greg Barker, the Climate Change Minister, tells Louise Gray about the Coalition's plans to give Britain its own supply of clean energy.
By Louise Gray, Environment correspondent
Published: 10:20AM BST 29 Jun 2010
Barker, a former PR executive who took his close friend David Cameron to the Arctic resulting in that infamous snap with the huskies that was dismissed as a cynical stunt by critics, is “100 per cent certain” that man-made global warming is happening.
In his Whitehall office, there are two prints from the “husky” set as well as a strategically placed “Save the Planet’’ cushion. However, he insists that it’s not “all doom and gloom”.
The 43-year-old believes Britain could become the “Saudi Arabia of renewable energy” by investing in offshore wind, wave and tidal sources. In the Budget, the Coalition pledged to set up a Green Investment Bank to help finance renewable power stations, and Barker has ambitious plans to make London “the world hub of green finance”, creating “green ISAs and pensions” so that the public can invest in, and benefit from, the massive growth in the clean energy industry.
“We are absolutely convinced we have to move rapidly to decarbonise our economy, but we are not in the business of scaremongering. We are in the business of promoting the opportunities this will create for the green economy,” he says.
This strategy is central to the Government’s Green New Deal to reduce our greenhouse gas emissions by 80 per cent on 1990 levels by 2050. If that is to be achieved, between 400,000 and 1.8 million homes a year will have to be upgraded between now and then, at an annual cost of between £5 billion and £15 billion.
A flagship “pay as you save” scheme will allow people to book a free consultation with an “energy doctor” at a participating supermarket or store. After an energy audit, corrective measures up to a cost of £10,000 will be recommended. Home owners will repay the cost over time through savings on their fuel bill, says Mr Barker. Although details are yet to be finalised, the scheme could start as early as next year.
He hails this policy as a “completely new radical and ambitious approach to insulating the nation’s homes” that will not only help combat climate change by cutting emissions but help cut the average family’s fuel bill, which has soared to around £1,300 per annum.
“We have to help families reduce the amount they are spending on electricity and heating their homes, and we will do this by creating a new market,” he said. “We will bring new participants into the insulating business, like B&Q, Marks & Spencer or Virgin, as well as trusted energy companies like British Gas and others, to help pay for the upfront cost without the householder having to incur debt on their bills. The cost of upgrading each property will be attached to the energy bill and repaid over 25 years.”
Mr Barker is committed to cutting carbon emissions but, unlike his predecessors in office, he doesn’t dismiss climate-change sceptics as “flat-earthers” – there are too many of them on the back benches for him to do that.
“There are people that take different views. I am not a scientist, but I do understand science is about probabilities. I think, if anything, the slightly preachy tone that some in the climate-change debate have adopted and the rather intolerant tone of those who have genuine concerns is not helpful.”
But he says the Coalition will continue with Labour’s policy on climate change, including cutting carbon emissions by at least 34 per cent by 2020 and pushing for a global deal that could see the target increase to 42 per cent.
It will be tough to make such cuts while the Government budget is also being reduced and Liberal Dem colleagues disagree on key matters, such as nuclear energy, but the MP for Bexhill and Battle is a fighter and unafraid to court controversy. Four years ago, the father-of-three was mired in scandal after leaving his wife, Celeste, for a male interior designer. He was also caught up in the MPs’ expenses furore, having made £320,000 profit on a flat he bought with the help of his taxpayer-funded expenses.
In one sense, Barker is ideally placed for his new role, having worked for the Russian oil company Sibneft, once owned by Chelsea FC owner Roman Abramovich. Now, however, he says Britain must reduce dependence on imported oil and gas.
“I think there are a lot of fool’s choices that have been drawn under the last government that are not necessary. To me, energy security, with a diverse supply of clean energy and more efficient use of energy, is something we should be pursuing regardless of whether you are a believer in global warming or not.
“We cannot as a country go on relying on expensive foreign fuel. We need to have a safe, secure supply of clean energy from a diverse mix of sources.”
It remains to be seen whether a minister who describes himself as “blue-green” can convince environmentalists that his free-market strategy is the way ahead.
• Louise Gray is the Daily Telegraph’s environment correspondent
By Louise Gray, Environment correspondent
Published: 10:20AM BST 29 Jun 2010
Barker, a former PR executive who took his close friend David Cameron to the Arctic resulting in that infamous snap with the huskies that was dismissed as a cynical stunt by critics, is “100 per cent certain” that man-made global warming is happening.
In his Whitehall office, there are two prints from the “husky” set as well as a strategically placed “Save the Planet’’ cushion. However, he insists that it’s not “all doom and gloom”.
The 43-year-old believes Britain could become the “Saudi Arabia of renewable energy” by investing in offshore wind, wave and tidal sources. In the Budget, the Coalition pledged to set up a Green Investment Bank to help finance renewable power stations, and Barker has ambitious plans to make London “the world hub of green finance”, creating “green ISAs and pensions” so that the public can invest in, and benefit from, the massive growth in the clean energy industry.
“We are absolutely convinced we have to move rapidly to decarbonise our economy, but we are not in the business of scaremongering. We are in the business of promoting the opportunities this will create for the green economy,” he says.
This strategy is central to the Government’s Green New Deal to reduce our greenhouse gas emissions by 80 per cent on 1990 levels by 2050. If that is to be achieved, between 400,000 and 1.8 million homes a year will have to be upgraded between now and then, at an annual cost of between £5 billion and £15 billion.
A flagship “pay as you save” scheme will allow people to book a free consultation with an “energy doctor” at a participating supermarket or store. After an energy audit, corrective measures up to a cost of £10,000 will be recommended. Home owners will repay the cost over time through savings on their fuel bill, says Mr Barker. Although details are yet to be finalised, the scheme could start as early as next year.
He hails this policy as a “completely new radical and ambitious approach to insulating the nation’s homes” that will not only help combat climate change by cutting emissions but help cut the average family’s fuel bill, which has soared to around £1,300 per annum.
“We have to help families reduce the amount they are spending on electricity and heating their homes, and we will do this by creating a new market,” he said. “We will bring new participants into the insulating business, like B&Q, Marks & Spencer or Virgin, as well as trusted energy companies like British Gas and others, to help pay for the upfront cost without the householder having to incur debt on their bills. The cost of upgrading each property will be attached to the energy bill and repaid over 25 years.”
Mr Barker is committed to cutting carbon emissions but, unlike his predecessors in office, he doesn’t dismiss climate-change sceptics as “flat-earthers” – there are too many of them on the back benches for him to do that.
“There are people that take different views. I am not a scientist, but I do understand science is about probabilities. I think, if anything, the slightly preachy tone that some in the climate-change debate have adopted and the rather intolerant tone of those who have genuine concerns is not helpful.”
But he says the Coalition will continue with Labour’s policy on climate change, including cutting carbon emissions by at least 34 per cent by 2020 and pushing for a global deal that could see the target increase to 42 per cent.
It will be tough to make such cuts while the Government budget is also being reduced and Liberal Dem colleagues disagree on key matters, such as nuclear energy, but the MP for Bexhill and Battle is a fighter and unafraid to court controversy. Four years ago, the father-of-three was mired in scandal after leaving his wife, Celeste, for a male interior designer. He was also caught up in the MPs’ expenses furore, having made £320,000 profit on a flat he bought with the help of his taxpayer-funded expenses.
In one sense, Barker is ideally placed for his new role, having worked for the Russian oil company Sibneft, once owned by Chelsea FC owner Roman Abramovich. Now, however, he says Britain must reduce dependence on imported oil and gas.
“I think there are a lot of fool’s choices that have been drawn under the last government that are not necessary. To me, energy security, with a diverse supply of clean energy and more efficient use of energy, is something we should be pursuing regardless of whether you are a believer in global warming or not.
“We cannot as a country go on relying on expensive foreign fuel. We need to have a safe, secure supply of clean energy from a diverse mix of sources.”
It remains to be seen whether a minister who describes himself as “blue-green” can convince environmentalists that his free-market strategy is the way ahead.
• Louise Gray is the Daily Telegraph’s environment correspondent
Quangos should be burnt to fuel a green revolution, Tory report recommends
By James Moore
Wednesday, 30 June 2010
The new Government should conduct a bonfire of nine low-carbon quangos and instead hand them to a planned green investment bank if Britain is to fulfill its commitments to create a low-carbon economy and catch up with its European partners, a report yesterday urged.
The Green Investment Bank Commission also recommended the sale of "green ISAs and bonds" as a way of helping to provide financing for more renewable energy projects in the United Kingdom.
And it said the new bank should be commercially independent and thus not accountable to ministers or to Parliament for its investment or lending decisions. This would, it said, be "a prerequisite for building credibility with the markets. It also should limit direct public liabilities by placing GIB liabilities off the Government balance sheet."
The commission estimates that £550bn is needed for infrastructure and supply chains to allow the UK to meet climate change targets that call on the country to cut greenhouse gas emissions and boost renewable energy by 2020.
The scale of the investment required to meet UK climate change and renewable energy targets is unprecedented," it warned.
Headed by Yell's chairman, Bob Wigley, the Commission was set up by the Conservative Party while in opposition. It criticised what it described as a string of "ad hoc" initiatives and quangos that have been set up over the past decade and collectively spend £185m while providing funds of £2bn.
In that respect, the Commission agreed with last week's report from the Work Foundation, which was sharply critical of the way moves towards a low-carbon economy are being handled. It attacked what it described as a "tangle of red tape and bureaucracy" which it claimed was putting job creation in low-carbon industries at risk.
Mr Wigley said: "I believe our report has produced some radical and substantive policy recommendations and financing ideas.
"I was very much encouraged when the Prime Minister reiterated his commitment to a low-carbon economy in his speech the day after the recent general election and was further encouraged by the terms of the coalition agreement, containing as it did specific references to a green investment bank and a low-carbon economy."
Although the coalition document promised the creation of a green investment bank, and the pledge was reiterated in the Queen's speech, decisions on implementing the plan have been deferred until the public spending review later this year. The Treasury said the scheme would need to show value for money.
Global investment in clean energy was as much as $150bn last year, but the financial crisis has put many decisions on hold and caused a number of projects to be scrapped. Europe's sovereign debt crisis has only exacerbated the trend.
After a dip in electricity demand, utilities have also been weakened. And some business lobbies have cautioned against introducing tougher green support policies in the aftermath of the recession while the economic outlook remains uncertain in many parts of the world and confidence is still wafer thin.
Wednesday, 30 June 2010
The new Government should conduct a bonfire of nine low-carbon quangos and instead hand them to a planned green investment bank if Britain is to fulfill its commitments to create a low-carbon economy and catch up with its European partners, a report yesterday urged.
The Green Investment Bank Commission also recommended the sale of "green ISAs and bonds" as a way of helping to provide financing for more renewable energy projects in the United Kingdom.
And it said the new bank should be commercially independent and thus not accountable to ministers or to Parliament for its investment or lending decisions. This would, it said, be "a prerequisite for building credibility with the markets. It also should limit direct public liabilities by placing GIB liabilities off the Government balance sheet."
The commission estimates that £550bn is needed for infrastructure and supply chains to allow the UK to meet climate change targets that call on the country to cut greenhouse gas emissions and boost renewable energy by 2020.
The scale of the investment required to meet UK climate change and renewable energy targets is unprecedented," it warned.
Headed by Yell's chairman, Bob Wigley, the Commission was set up by the Conservative Party while in opposition. It criticised what it described as a string of "ad hoc" initiatives and quangos that have been set up over the past decade and collectively spend £185m while providing funds of £2bn.
In that respect, the Commission agreed with last week's report from the Work Foundation, which was sharply critical of the way moves towards a low-carbon economy are being handled. It attacked what it described as a "tangle of red tape and bureaucracy" which it claimed was putting job creation in low-carbon industries at risk.
Mr Wigley said: "I believe our report has produced some radical and substantive policy recommendations and financing ideas.
"I was very much encouraged when the Prime Minister reiterated his commitment to a low-carbon economy in his speech the day after the recent general election and was further encouraged by the terms of the coalition agreement, containing as it did specific references to a green investment bank and a low-carbon economy."
Although the coalition document promised the creation of a green investment bank, and the pledge was reiterated in the Queen's speech, decisions on implementing the plan have been deferred until the public spending review later this year. The Treasury said the scheme would need to show value for money.
Global investment in clean energy was as much as $150bn last year, but the financial crisis has put many decisions on hold and caused a number of projects to be scrapped. Europe's sovereign debt crisis has only exacerbated the trend.
After a dip in electricity demand, utilities have also been weakened. And some business lobbies have cautioned against introducing tougher green support policies in the aftermath of the recession while the economic outlook remains uncertain in many parts of the world and confidence is still wafer thin.
UK will miss carbon emissions targets 'unless government takes urgent action'
Committee on Climate Change says policies required within next year to reform electricity market and home efficiency
David Adam guardian.co.uk, Wednesday 30 June 2010 00.05 BST
The new coalition government must introduce a string of climate policies over the next twelve months or risk Britain missing its legally binding targets to cut carbon emissions, ministers were warned yesterday.
David Kennedy, the chief executive of the Committee on Climate Change, said action was needed in four key areas. He said policies should be brought forward to reform the electricity market, and to make homes more energy efficient. Ministers need to protect efforts to encourage the development of electric cars and introduce measures to bring down the carbon footprint of UK farmers, he added.
"We've had a light-touch approach in the UK, we've talked a good game but what we've seen is emissions haven't fallen," Kennedy said. "We need to do something different. What we have to do isn't news and is becoming very well known."
Lord Turner, chair of the committee, said the recession has created the illusion that the UK is tackling climate change, but substantial declines in emissions are almost entirely the result of lower economic activity in the last year.
While greenhouse gases fell by 8.6% last year, only a fraction of that was the result of measures to tackle climate change such as renewable energy or making homes more energy efficient.
The second annual progress report from the government's advisory committee repeated the call it made last year step up efforts to drive down emissions, in order to meet targets to cut greenhouse gases.
Kennedy said some loft and cavity wall insulation was put in last year, while there was a "little bit" of investment in renewables, but efforts needed to be ramped up over the next five to 10 years.
He said continuing to implement green measures at the pace seen in 2009 would mean "we won't deliver the carbon budgets".
He said the coalition agreement contained positive pledges to make homes greener, to introduce a floor in the price companies pay for emitting polluting carbon, and emissions performance standards for power stations to drive investment in clean energy.
"These commitments are at the moment good intentions. What we need is to translate these into crunchy policies in power, buildings, transport and agriculture," he said. "The test of this government will be the policies they put in place over the next year or two. If we're going to see this step-change actually happen in two to three years, when it needs to happen, we've got to have the policies in place in the next year or so."
Peter Young, the chairman of the Aldersgate Group, said: "We welcome the committee's headline message that greater urgency is needed to meet carbon budgets. A number of the priorities identified by the committee are also commitments in the coalition agreement, such as electricity market reform and the implementation of a carbon floor price. Prompt action will not only reduce greenhouse gas emissions but will be vital for the economic recovery, boosting growth, jobs and competitiveness."
Andy Atkins, the head of Friends of the Earth, said: "It's extremely disturbing that, despite a similar warning from the committee last year, the recent fall in UK emissions is mainly due to the recession. This report is further evidence of the need to build our future prosperity on safe, green foundations."
Yesterday, the government abolished the Infrastructure Planning Commission, a quango with the power to approve major infrastructure projects set up last year by the previous Labour administration to fast track large projects, such as nuclear power stations and offshore wind farms.
Decentralisation minister Greg Clark said: "New infrastructure is critical to the country's return to economic growth and we believe we must have a fast track system for major projects – but it must be accountable. The previous system lacked any democratic legitimacy by giving decision making power away to a distant quango."
Replacing the IPC will be the Major Infrastructure Planning Unit, in which ministers will make the decisions on projects.
Gaynor Hartnell, the chief executive of the Renewable Energy Association welcomed the move but added: "The vast majority of renewable energy projects are smaller than 50MW and therefore will not benefit directly from these reforms. We need rapid and consistent decision making for projects approved by local authorities that strikes the balance between local accountability and strategic national priorities."
David Adam guardian.co.uk, Wednesday 30 June 2010 00.05 BST
The new coalition government must introduce a string of climate policies over the next twelve months or risk Britain missing its legally binding targets to cut carbon emissions, ministers were warned yesterday.
David Kennedy, the chief executive of the Committee on Climate Change, said action was needed in four key areas. He said policies should be brought forward to reform the electricity market, and to make homes more energy efficient. Ministers need to protect efforts to encourage the development of electric cars and introduce measures to bring down the carbon footprint of UK farmers, he added.
"We've had a light-touch approach in the UK, we've talked a good game but what we've seen is emissions haven't fallen," Kennedy said. "We need to do something different. What we have to do isn't news and is becoming very well known."
Lord Turner, chair of the committee, said the recession has created the illusion that the UK is tackling climate change, but substantial declines in emissions are almost entirely the result of lower economic activity in the last year.
While greenhouse gases fell by 8.6% last year, only a fraction of that was the result of measures to tackle climate change such as renewable energy or making homes more energy efficient.
The second annual progress report from the government's advisory committee repeated the call it made last year step up efforts to drive down emissions, in order to meet targets to cut greenhouse gases.
Kennedy said some loft and cavity wall insulation was put in last year, while there was a "little bit" of investment in renewables, but efforts needed to be ramped up over the next five to 10 years.
He said continuing to implement green measures at the pace seen in 2009 would mean "we won't deliver the carbon budgets".
He said the coalition agreement contained positive pledges to make homes greener, to introduce a floor in the price companies pay for emitting polluting carbon, and emissions performance standards for power stations to drive investment in clean energy.
"These commitments are at the moment good intentions. What we need is to translate these into crunchy policies in power, buildings, transport and agriculture," he said. "The test of this government will be the policies they put in place over the next year or two. If we're going to see this step-change actually happen in two to three years, when it needs to happen, we've got to have the policies in place in the next year or so."
Peter Young, the chairman of the Aldersgate Group, said: "We welcome the committee's headline message that greater urgency is needed to meet carbon budgets. A number of the priorities identified by the committee are also commitments in the coalition agreement, such as electricity market reform and the implementation of a carbon floor price. Prompt action will not only reduce greenhouse gas emissions but will be vital for the economic recovery, boosting growth, jobs and competitiveness."
Andy Atkins, the head of Friends of the Earth, said: "It's extremely disturbing that, despite a similar warning from the committee last year, the recent fall in UK emissions is mainly due to the recession. This report is further evidence of the need to build our future prosperity on safe, green foundations."
Yesterday, the government abolished the Infrastructure Planning Commission, a quango with the power to approve major infrastructure projects set up last year by the previous Labour administration to fast track large projects, such as nuclear power stations and offshore wind farms.
Decentralisation minister Greg Clark said: "New infrastructure is critical to the country's return to economic growth and we believe we must have a fast track system for major projects – but it must be accountable. The previous system lacked any democratic legitimacy by giving decision making power away to a distant quango."
Replacing the IPC will be the Major Infrastructure Planning Unit, in which ministers will make the decisions on projects.
Gaynor Hartnell, the chief executive of the Renewable Energy Association welcomed the move but added: "The vast majority of renewable energy projects are smaller than 50MW and therefore will not benefit directly from these reforms. We need rapid and consistent decision making for projects approved by local authorities that strikes the balance between local accountability and strategic national priorities."
Green setback for UK as British power supplied by renewable sources falls
Fall of 7.5% in power obtained from wind, hydro and other renewable sources blamed on dry winter with low wind speeds
Juliette Jowit guardian.co.uk, Monday 28 June 2010 21.06 BST
Britain's renewable energy revolution suffered an abrupt setback this winter when the power supplied from wind, hydro and other "clean" sources fell, despite years of promises and policies to end the nation's dependence on fossil fuels and slash global warming pollution, the Guardian can reveal.
The news comes as the government will tomorrow unveil a major report (pdf) into how it will pay for the hundreds of billions of new spending needed to meet the UK's targets for renewable energy and cutting climate change emissions by setting up a new Green Investment Bank (GIB).
Figures from the Department of Energy and Climate Change (pdf) show that the proportion of electricity supplied from renewable sources such as wind and hydro power fell 7.5% in the first three months of this year compared to 2009.
The drop was officially blamed mostly on a dry winter, which reduced power from water turbines, and low wind speeds, leading to the lowest absolute supply from those two sectors for four winters – as far back as the DECC figures recorded.
Experts also expressed concern that renewable energy could also have suffered from a hiatus in investment and from competition from cheap gas from overseas, as the government figures showed the UK became a net importer of gas for the first time in more than 40 years in January to March.
The latest renewable energy figures will be seized by critics and other experts who have long argued that the UK needs fewer reports and targets and more action to support and fund the long-promised low carbon transformation.
"It's absurd that despite having one of the best green energy resources in Europe, too many UK renewable projects struggle to get off the ground," said Andy Atkins, executive director of one of the country's biggest environmental groups, Friends of the Earth.
"The coalition must keep its promise to be the greenest government ever by making it easier for renewable energy projects to take off – and creating a well-funded green investment bank focused on making Britain a world leader in a developing a low-carbon economy."
The message of urgency is likely to be seconded by tomorrow's report from the independent Green Investment Bank Commission, which will call for government to use fast-track legislation to set up the new bank, which could begin operating next year.
James Cameron, executive director of Climate Change Capital bank and a member of the six-person commission on the GIB, said there was concern that there had been a slowdown in renewable energy projects because of the recession, and because of uncertainty of government policy under the new coalition government.
"If people are expecting this institution [the bank] to exist with a range of products which might lower the cost of capital, they'll wait until it does," he added.
The Green Investment Bank Commission, set up by Chancellor George Osborne while the Conservative party was in opposition, is expected to recommend a bonfire of green business quangos, whose more than £2bn a year in grants could be used to fund the bank.
It also wants an estimated £40bn from sale of permits to pollute under the European trading scheme from 2012 to 2020 to be ringfenced to support the drive to decarbonise Britain's economy.
Pension funds, other institutional investors and even ordinary savers would also be offered a chance to contribute to the low-carbon revolution by buying green bonds and green individual savings accounts, under the plans.
The bank could use the money to focus on off-shore wind power, a new "smart" grid to enable the best use to be made of renewable energy, and big schemes to make homes more energy efficient – including the government's pledge of a "green new deal" offering homeowners up to £6,500 each for improvements to cut emissions from their energy use, says the report. It suggests the total spending needed on renewable and energy efficient infrastructure will be £550bn by 2020.
The coalition government has said it will publish details of the new bank after the autumn spending review.
The DECC Energy Statistics for the first quarter of 2010 show renewable electricity fell from 6.7% to 6.2% of total supply. Supply from coal power also fell, while nuclear and gas generation increased, bringing the total electricity supply up slightly, by 1.1%, although consumption of electricity fell fractionally. Total energy consumption, including heating, fell by 1.1%.
RenewableUK, the industry lobby group, said the ongoing increase in wind power would reduce problems from relying on hydro schemes as climate change was expected to bring an era of less reliable rainfall.
However Sir David King, the government's former chief scientist and director of the Smith School of Enterprise and the Environment at Oxford University, said the figures highlighted the need for new nuclear generators to help cut emissions and keep power supplies reliable. "We can't rely too heavily on wind because it always requires a gas-fired turbine to be able to be switched on to provide alternative energy," he said.
Juliette Jowit guardian.co.uk, Monday 28 June 2010 21.06 BST
Britain's renewable energy revolution suffered an abrupt setback this winter when the power supplied from wind, hydro and other "clean" sources fell, despite years of promises and policies to end the nation's dependence on fossil fuels and slash global warming pollution, the Guardian can reveal.
The news comes as the government will tomorrow unveil a major report (pdf) into how it will pay for the hundreds of billions of new spending needed to meet the UK's targets for renewable energy and cutting climate change emissions by setting up a new Green Investment Bank (GIB).
Figures from the Department of Energy and Climate Change (pdf) show that the proportion of electricity supplied from renewable sources such as wind and hydro power fell 7.5% in the first three months of this year compared to 2009.
The drop was officially blamed mostly on a dry winter, which reduced power from water turbines, and low wind speeds, leading to the lowest absolute supply from those two sectors for four winters – as far back as the DECC figures recorded.
Experts also expressed concern that renewable energy could also have suffered from a hiatus in investment and from competition from cheap gas from overseas, as the government figures showed the UK became a net importer of gas for the first time in more than 40 years in January to March.
The latest renewable energy figures will be seized by critics and other experts who have long argued that the UK needs fewer reports and targets and more action to support and fund the long-promised low carbon transformation.
"It's absurd that despite having one of the best green energy resources in Europe, too many UK renewable projects struggle to get off the ground," said Andy Atkins, executive director of one of the country's biggest environmental groups, Friends of the Earth.
"The coalition must keep its promise to be the greenest government ever by making it easier for renewable energy projects to take off – and creating a well-funded green investment bank focused on making Britain a world leader in a developing a low-carbon economy."
The message of urgency is likely to be seconded by tomorrow's report from the independent Green Investment Bank Commission, which will call for government to use fast-track legislation to set up the new bank, which could begin operating next year.
James Cameron, executive director of Climate Change Capital bank and a member of the six-person commission on the GIB, said there was concern that there had been a slowdown in renewable energy projects because of the recession, and because of uncertainty of government policy under the new coalition government.
"If people are expecting this institution [the bank] to exist with a range of products which might lower the cost of capital, they'll wait until it does," he added.
The Green Investment Bank Commission, set up by Chancellor George Osborne while the Conservative party was in opposition, is expected to recommend a bonfire of green business quangos, whose more than £2bn a year in grants could be used to fund the bank.
It also wants an estimated £40bn from sale of permits to pollute under the European trading scheme from 2012 to 2020 to be ringfenced to support the drive to decarbonise Britain's economy.
Pension funds, other institutional investors and even ordinary savers would also be offered a chance to contribute to the low-carbon revolution by buying green bonds and green individual savings accounts, under the plans.
The bank could use the money to focus on off-shore wind power, a new "smart" grid to enable the best use to be made of renewable energy, and big schemes to make homes more energy efficient – including the government's pledge of a "green new deal" offering homeowners up to £6,500 each for improvements to cut emissions from their energy use, says the report. It suggests the total spending needed on renewable and energy efficient infrastructure will be £550bn by 2020.
The coalition government has said it will publish details of the new bank after the autumn spending review.
The DECC Energy Statistics for the first quarter of 2010 show renewable electricity fell from 6.7% to 6.2% of total supply. Supply from coal power also fell, while nuclear and gas generation increased, bringing the total electricity supply up slightly, by 1.1%, although consumption of electricity fell fractionally. Total energy consumption, including heating, fell by 1.1%.
RenewableUK, the industry lobby group, said the ongoing increase in wind power would reduce problems from relying on hydro schemes as climate change was expected to bring an era of less reliable rainfall.
However Sir David King, the government's former chief scientist and director of the Smith School of Enterprise and the Environment at Oxford University, said the figures highlighted the need for new nuclear generators to help cut emissions and keep power supplies reliable. "We can't rely too heavily on wind because it always requires a gas-fired turbine to be able to be switched on to provide alternative energy," he said.