by Timon Singh, 09/07/10
There are two factors that stand in the way of most solar roof installations – cost and aesthetics. Heritage Solar Slate aims to tackle the latter problem with their innovative solar tiles, which are designed to look just like roofing slates. The photovoltaic slates provide a stylish alternative to standard panels, are fully weatherproof, and are perfect for use on historic buildings in preservation areas. It is hoped that the slate panels will enable groups like The National Trust to reduce the carbon footprint of historical buildings and attractions.
The slates feature no moving parts and require practically no maintenance. They are designed to blend in with traditional slate tiles, which allows them to meet most planning permission regulations — even in historic preservation areas. Best of all, the panels can be easily installed thanks to a ‘fit-and-forget’ process that requires no specialized training other than traditional roofing skills. 340 panels have already been used in Snowdonia National Park on a traditional cottage called Y Stabal.
An added bonus is that the Heritage Solar Slates qualify for England’s feed-In tariff plan, which incentivizes renewable energy projects throughout the UK. In essence, feed-in tariffs are payments made to energy generating homes and businesses for the renewable electricity they provide. They aim to increase the level of renewable energy in the UK in order to meet the country’s goals of generating 20% of its energy via renewable methods by 2020.
Read more: Photovoltaic Slate Tiles Upgrade Your Roof With Solar Power | Inhabitat - Green Design Will Save the World
Wednesday, 8 September 2010
DOE giving $575 million in carbon capture grants
Posted at 01:37 PM on Tuesday, Sep. 07, 2010
By FREDERIC J. FROMMER - Associated Press Writer Share
The Energy Department said Tuesday it was awarding $575 million for carbon capture research-and-development projects in 15 states.
The experimental technique involves storing carbon dioxide emissions from coal plants and other sources underground, in an attempt to reduce pollution blamed for contributing to global warming.
"This is a major step forward in the fight to reduce carbon emissions from industrial plants," said Energy Secretary Steven Chu. "These new technologies will not only help fight climate change, they will create jobs now and help position the United States to lead the world in clean coal technologies, which will only increase in demand in the years ahead."
■From outer space, a new dilemma for old-growth forests
From outer space, a new dilemma for old-growth forestsA new study using laser pulses shot from satellites has found that the world's tallest forests are those along the Pacific Northwest coast.
Though the findings shouldn't shock anyone who grew up in the region, they offer another indication of how important these ancient trees eventually could become.
The temperate forests of Douglas fir, Western hemlock, redwoods and sequoias that stretch from northern California into British Columbia easily reach an average height of more than 131 feet. That's taller than the boreal forests of northern Canada and Eurasia, tropical rainforests and the broadleaf forests common in much of the United States and Europe. The only forests that come close are in Southeast Asia, along the southern rim of the Himalayas and in Indonesia, Malaysia and Laos.
■Pacific Ethanol in line for car-tax funds
Pacific Ethanol in line for car-tax fundsCalifornia's energy commission has promised millions of dollars to a struggling corn ethanol business founded by a political ally - and generous campaign contributor - to Gov. Arnold Schwarzenegger despite public assurances that the commission's environmental funds would not be used to subsidize that technology.
The money comes from a tax on car owners passed three years ago that goes to a fund for clean-energy technologies. When the fund was set up, its backers said it would not be used for corn ethanol, a decades-old gas additive many environmental scientists argue is at least as bad for the planet as oil.
The decision to use the fund for an ethanol subsidy has the program's creator crying foul.
■Renewable energy touted at Nevada policy 'summit'
Renewable energy touted at Nevada policy 'summit'With clean-energy legislation trapped in a political deadlock, renewable-energy advocates called big business the new leader in the nation's green revolution during a national summit meeting Tuesday.
John Podesta, president of the Center for American Progress, said untapped potential in the sustainable energy market could revive the stalled economy and end the recession.
"The focus now has got to be on getting these worlds and mechanisms together to finance innovative, renewable technology," Podesta said.
■Local briefs: Wasco inmate freed in name error
Local briefs: Wasco inmate freed in name errorAn inmate at Wasco State Prison was accidentally released Friday when officers confused him for a man with the same last name, officials said.
Eric Rodriguez, 31, had arrived earlier in the day to begin a five-year sentence for battery on a prisoner, the California Department of Corrections and Rehabilitation said. When Rodriguez was being processed, he was released because officers thought he was another man who was scheduled to be released for parole.
Rodriguez is 5-feet, 10-inches tall, weighs 150 pounds and has tattoos on his left arm, chest and abdomen. He has black hair and brown eyes. He is considered dangerous. Anyone who believes they have seen Rodriguez can call 911.
WASHINGTON -- The Energy Department said Tuesday it was awarding $575 million for carbon capture research-and-development projects in 15 states.
The experimental technique involves storing carbon dioxide emissions from coal plants and other sources underground, in an attempt to reduce pollution blamed for contributing to global warming.
"This is a major step forward in the fight to reduce carbon emissions from industrial plants," said Energy Secretary Steven Chu. "These new technologies will not only help fight climate change, they will create jobs now and help position the United States to lead the world in clean coal technologies, which will only increase in demand in the years ahead."
All told, he said, the department has invested more than $4 billion in carbon storage and capture, matched by more than $7 billion in private investments.
The newest money will fund 22 projects in 15 states, ranging from evaluation of geologic sites for carbon storage to development of turbo-machinery and engines to help improve carbon capture and storage. The projects, in states including California, Pennsylvania, Colorado, New York and Texas, are being funded from the economic stimulus law.
Full list of projects President Barack Obama wants a cost-effective deployment of carbon capture and storage within 10 years - despite questions about the technology and skepticism about its feasibility. He created a task force this year charged with coming up with a plan to overcome barriers to such deployment.
One issue identified by the task force was liability, because a sudden release of large amounts of carbon dioxide can kill by asphyxiation. The task force called for several options to be considered: maintaining the current legal framework; putting limits on claims; establishing an industry-financed trust fund to pay damages after a site is closed; or transferring of liability to the federal government following a site closure, under certain conditions.
By FREDERIC J. FROMMER - Associated Press Writer Share
The Energy Department said Tuesday it was awarding $575 million for carbon capture research-and-development projects in 15 states.
The experimental technique involves storing carbon dioxide emissions from coal plants and other sources underground, in an attempt to reduce pollution blamed for contributing to global warming.
"This is a major step forward in the fight to reduce carbon emissions from industrial plants," said Energy Secretary Steven Chu. "These new technologies will not only help fight climate change, they will create jobs now and help position the United States to lead the world in clean coal technologies, which will only increase in demand in the years ahead."
■From outer space, a new dilemma for old-growth forests
From outer space, a new dilemma for old-growth forestsA new study using laser pulses shot from satellites has found that the world's tallest forests are those along the Pacific Northwest coast.
Though the findings shouldn't shock anyone who grew up in the region, they offer another indication of how important these ancient trees eventually could become.
The temperate forests of Douglas fir, Western hemlock, redwoods and sequoias that stretch from northern California into British Columbia easily reach an average height of more than 131 feet. That's taller than the boreal forests of northern Canada and Eurasia, tropical rainforests and the broadleaf forests common in much of the United States and Europe. The only forests that come close are in Southeast Asia, along the southern rim of the Himalayas and in Indonesia, Malaysia and Laos.
■Pacific Ethanol in line for car-tax funds
Pacific Ethanol in line for car-tax fundsCalifornia's energy commission has promised millions of dollars to a struggling corn ethanol business founded by a political ally - and generous campaign contributor - to Gov. Arnold Schwarzenegger despite public assurances that the commission's environmental funds would not be used to subsidize that technology.
The money comes from a tax on car owners passed three years ago that goes to a fund for clean-energy technologies. When the fund was set up, its backers said it would not be used for corn ethanol, a decades-old gas additive many environmental scientists argue is at least as bad for the planet as oil.
The decision to use the fund for an ethanol subsidy has the program's creator crying foul.
■Renewable energy touted at Nevada policy 'summit'
Renewable energy touted at Nevada policy 'summit'With clean-energy legislation trapped in a political deadlock, renewable-energy advocates called big business the new leader in the nation's green revolution during a national summit meeting Tuesday.
John Podesta, president of the Center for American Progress, said untapped potential in the sustainable energy market could revive the stalled economy and end the recession.
"The focus now has got to be on getting these worlds and mechanisms together to finance innovative, renewable technology," Podesta said.
■Local briefs: Wasco inmate freed in name error
Local briefs: Wasco inmate freed in name errorAn inmate at Wasco State Prison was accidentally released Friday when officers confused him for a man with the same last name, officials said.
Eric Rodriguez, 31, had arrived earlier in the day to begin a five-year sentence for battery on a prisoner, the California Department of Corrections and Rehabilitation said. When Rodriguez was being processed, he was released because officers thought he was another man who was scheduled to be released for parole.
Rodriguez is 5-feet, 10-inches tall, weighs 150 pounds and has tattoos on his left arm, chest and abdomen. He has black hair and brown eyes. He is considered dangerous. Anyone who believes they have seen Rodriguez can call 911.
WASHINGTON -- The Energy Department said Tuesday it was awarding $575 million for carbon capture research-and-development projects in 15 states.
The experimental technique involves storing carbon dioxide emissions from coal plants and other sources underground, in an attempt to reduce pollution blamed for contributing to global warming.
"This is a major step forward in the fight to reduce carbon emissions from industrial plants," said Energy Secretary Steven Chu. "These new technologies will not only help fight climate change, they will create jobs now and help position the United States to lead the world in clean coal technologies, which will only increase in demand in the years ahead."
All told, he said, the department has invested more than $4 billion in carbon storage and capture, matched by more than $7 billion in private investments.
The newest money will fund 22 projects in 15 states, ranging from evaluation of geologic sites for carbon storage to development of turbo-machinery and engines to help improve carbon capture and storage. The projects, in states including California, Pennsylvania, Colorado, New York and Texas, are being funded from the economic stimulus law.
Full list of projects President Barack Obama wants a cost-effective deployment of carbon capture and storage within 10 years - despite questions about the technology and skepticism about its feasibility. He created a task force this year charged with coming up with a plan to overcome barriers to such deployment.
One issue identified by the task force was liability, because a sudden release of large amounts of carbon dioxide can kill by asphyxiation. The task force called for several options to be considered: maintaining the current legal framework; putting limits on claims; establishing an industry-financed trust fund to pay damages after a site is closed; or transferring of liability to the federal government following a site closure, under certain conditions.
NYSE Euronext in joint venture on carbon trading
The Associated Press
2:25 PM Tuesday, September 7, 2010
NEW YORK — NYSE Euronext said Tuesday it plans to combine its European carbon trading unit with a U.S. firm to expand its environmental energy business.
NYSE Blue will be a joint venture that combines BlueNext, NYSE's Paris-based carbon credits spot market, with privately held APX Inc., which provides information, analytics and services to the energy and environmental markets.
The new exchange will expand globally, with a focus on North America and Asia.
NYSE Euronext will be the majority owner of NYSE Blue, while APX shareholders — which include Goldman Sachs Group Inc., MissionPoint Capital Partners, and Onset Ventures — will hold minority stakes.
NYSE Blue will provide trading platforms, registry services and other services for accessing carbon markets and managing portfolios. It will be led by CEO Brian Storms, who is currently Chairman and CEO of Santa Clara, Calif.-based APX.
The deal is subject to regulatory approvals and APX shareholder approval. It is expected to close by the end of the year.
In afternoon trading, shares of NYSE Euronext slipped 69 cents, or 2.3 percent, to $29.25. The stock has traded between $22.30 and $34.82 in the past 52 weeks.
___
September 07, 2010 06:21 PM EDT
2:25 PM Tuesday, September 7, 2010
NEW YORK — NYSE Euronext said Tuesday it plans to combine its European carbon trading unit with a U.S. firm to expand its environmental energy business.
NYSE Blue will be a joint venture that combines BlueNext, NYSE's Paris-based carbon credits spot market, with privately held APX Inc., which provides information, analytics and services to the energy and environmental markets.
The new exchange will expand globally, with a focus on North America and Asia.
NYSE Euronext will be the majority owner of NYSE Blue, while APX shareholders — which include Goldman Sachs Group Inc., MissionPoint Capital Partners, and Onset Ventures — will hold minority stakes.
NYSE Blue will provide trading platforms, registry services and other services for accessing carbon markets and managing portfolios. It will be led by CEO Brian Storms, who is currently Chairman and CEO of Santa Clara, Calif.-based APX.
The deal is subject to regulatory approvals and APX shareholder approval. It is expected to close by the end of the year.
In afternoon trading, shares of NYSE Euronext slipped 69 cents, or 2.3 percent, to $29.25. The stock has traded between $22.30 and $34.82 in the past 52 weeks.
___
September 07, 2010 06:21 PM EDT
From next year, bonus for green states
TNN, Sep 8, 2010, 01.03am IST
Beginning next financial year, the Planning Commission will include performance on environmental concerns as one of the criteria for determining Central assistance to states.
In what takes green concerns several rungs higher in the ladder of governance priorities, around Rs 1,900 crore will be disbursed to states in 2010-11 based on environmental performance.
Environmental measures have now been accepted as one of the 'nationally important targets' apart from population control, elimination of illiteracy, land reforms and timely completion of externally-aided projects.
The Plan panel, in consultation with the Union environment and forests ministry, has prepared the blueprint for the disbursal of funds. The panel is also ready with an index for measuring the "green" performance of each state and ranking them.
As per this index, the hill states of Sikkim, Uttarakhand, Arunachal and Himachal along with UT Chandigarh fare the best. The index is based on review of the air and water quality in these states. Forest cover, size of national parks, along with changes in greenery pattern have all been factored in.
Climate change concerns are also being integrated, and states will be assessed on the basis of their use of non-conventional energy and volume of methane emissions.
At present, the Planning Commission ranks states according to fiscal performance, income levels, tax collection and certain nationally important targets besides special considerations while deciding on the allocation of Central plan funds.
The index automatically pitches for those states that have seen little economic and industrial development but maintain a high green cover.
In that sense, the hill states gain by default. Earlier, too, the finance commission had pointed out that the states maintaining a higher forest cover do so at the cost of their economic development, and consequently should be provided more funds for the eco-system services that they render to the rest of the country.
Read more: From next year, bonus for green states - The Times of India http://timesofindia.indiatimes.com/india/From-next-year-bonus-for-green-states/articleshow/6515843.cms#ixzz0yvD81VvN
Beginning next financial year, the Planning Commission will include performance on environmental concerns as one of the criteria for determining Central assistance to states.
In what takes green concerns several rungs higher in the ladder of governance priorities, around Rs 1,900 crore will be disbursed to states in 2010-11 based on environmental performance.
Environmental measures have now been accepted as one of the 'nationally important targets' apart from population control, elimination of illiteracy, land reforms and timely completion of externally-aided projects.
The Plan panel, in consultation with the Union environment and forests ministry, has prepared the blueprint for the disbursal of funds. The panel is also ready with an index for measuring the "green" performance of each state and ranking them.
As per this index, the hill states of Sikkim, Uttarakhand, Arunachal and Himachal along with UT Chandigarh fare the best. The index is based on review of the air and water quality in these states. Forest cover, size of national parks, along with changes in greenery pattern have all been factored in.
Climate change concerns are also being integrated, and states will be assessed on the basis of their use of non-conventional energy and volume of methane emissions.
At present, the Planning Commission ranks states according to fiscal performance, income levels, tax collection and certain nationally important targets besides special considerations while deciding on the allocation of Central plan funds.
The index automatically pitches for those states that have seen little economic and industrial development but maintain a high green cover.
In that sense, the hill states gain by default. Earlier, too, the finance commission had pointed out that the states maintaining a higher forest cover do so at the cost of their economic development, and consequently should be provided more funds for the eco-system services that they render to the rest of the country.
Read more: From next year, bonus for green states - The Times of India http://timesofindia.indiatimes.com/india/From-next-year-bonus-for-green-states/articleshow/6515843.cms#ixzz0yvD81VvN
UK 'heat pumps' fail as green devices, finds study
Badly installed heat pumps would not be recognised as renewable energy under proposed European standards, says the Energy Saving Trust
Adam Vaughan guardian.co.uk, Wednesday 8 September 2010 08.01 BST
Government plans to subsidise green heating are challenged today by the largest ever field study of "heat pump" devices in the UK, which reveals 80% perform so badly they would not qualify as renewable energy under proposed European standards.
The report, from the Energy Saving Trust, reveals the prevalence of badly installed heat pumps that are consequently under-performing. The controversial report could affect the government's plans to launch its Renewable Heat Incentive (RHI) next April to pay householders for generating heat from such "green" ground and air source heat pumps. There are already fears the RHI could be a victim of spending cuts announced next month.
Unlike other sources of renewable energy, such as solar photovoltaic panels and wind turbines, heat pumps require a certain amount of electricity to create energy. They work like a refrigerator in reverse, using a coolant gas to transfer heat from outside air or soil into a building. Electricity is needed to pump and compress the gas, which also allows it to generate higher temperatures than those outside. Air source pumps typically look like oversized air-conditioning and are place outside homes, while ground source ones involve loops of plastic tubing laid underground. Theoretically they should generate more energy than they consume.
But the Trust's peer-reviewed study, the largest of its kind in the UK, found the 83 devices it monitored for a year were underperforming. About 87% didn't achieve a system efficiency of 3 which the Trust considers the level of a "well-performing" system (higher is better). And 80% failed to meet 2.6, the level being considered under the EU Renewable Energy Directive for classification as a renewable source of energy.
The Trust blamed the use of multiple contractors for fitting systems instead of a single contractor as used in Europe, wrongly sized systems, complicated controls and a lack of education for householders using them. However, the Trust said that for many of the 5 million people in the UK living off the gas grid and currently using energy sources such as oil to heat their homes, the heat pumps could offer carbon and energy bill savings.
Simon Green, head of Business Development for the Energy Saving Trust, said: "This trial shows that when installed and operated correctly, heat pump technologies will save significant amounts of CO2 in the UK, when replacing oil or traditional electric heating. But there is no doubt that the results are more varied than were expected, with results showing both high- and low-performing heat pumps."
The Heating and hot water council, whose members install such systems, said they are not currently enough installers capable of helping consumers choose the right products. Roger Webb, director at the HHIC, said: "Highlighting negative and positive results keeps all of us in the industry on our toes, so that we can work out ways that this vitally important heat pump technology can be realistically delivered. ."
A Decc spokesperson said: "The RHI is designed to encourage a switch using fossil fuels for heating to renewable technologies across all sectors, not just domestic. Heat pumps are just one of the technologies that the scheme would support. The majority of the renewable heat incentivised by the RHI will be produced by the commercial, public and industrial sectors.
"We know that domestic heat pumps have worked well in other countries, so we need to do more work to find out why they didn't perform as expected in EST's trials. For this reason, Decc, EST and industry intend to carry out a further year of monitoring to identify the factors that have caused poor performance of some of the heat pumps, and to determine whether performance can be improved."
Gaynor Hartnell, chief executive of the Renewable Energy Association, which represents renewable heat companies, said: "A properly installed and sized heat pump can deliver significant carbon savings, particularly in areas not served by the gas grid. Heat pumps are one of several technologies that can contribute to greening the UK's heat supply. These trials, while important, must not delay the introduction of the RHI in April next year."
Separately today, an analysis by the thinktank Institute for Public Policy Research suggested community buildings could earn around £100m a year from incentives for green electricity generation. The IPPR believes the UK's 280,000 pubs, village halls, community centres, churches, schools and pools could create the sizeable revenue streams by installing technologies such as solar panels and wind turbines and earning the government's feed-in-tariff, which launched in April. But the authors, who extrapolated analysis of 14 projects in British Gas's "Green Streets" scheme, acknowledged the one-off capital cost of such technologies would be around £1.2bn.
Adam Vaughan guardian.co.uk, Wednesday 8 September 2010 08.01 BST
Government plans to subsidise green heating are challenged today by the largest ever field study of "heat pump" devices in the UK, which reveals 80% perform so badly they would not qualify as renewable energy under proposed European standards.
The report, from the Energy Saving Trust, reveals the prevalence of badly installed heat pumps that are consequently under-performing. The controversial report could affect the government's plans to launch its Renewable Heat Incentive (RHI) next April to pay householders for generating heat from such "green" ground and air source heat pumps. There are already fears the RHI could be a victim of spending cuts announced next month.
Unlike other sources of renewable energy, such as solar photovoltaic panels and wind turbines, heat pumps require a certain amount of electricity to create energy. They work like a refrigerator in reverse, using a coolant gas to transfer heat from outside air or soil into a building. Electricity is needed to pump and compress the gas, which also allows it to generate higher temperatures than those outside. Air source pumps typically look like oversized air-conditioning and are place outside homes, while ground source ones involve loops of plastic tubing laid underground. Theoretically they should generate more energy than they consume.
But the Trust's peer-reviewed study, the largest of its kind in the UK, found the 83 devices it monitored for a year were underperforming. About 87% didn't achieve a system efficiency of 3 which the Trust considers the level of a "well-performing" system (higher is better). And 80% failed to meet 2.6, the level being considered under the EU Renewable Energy Directive for classification as a renewable source of energy.
The Trust blamed the use of multiple contractors for fitting systems instead of a single contractor as used in Europe, wrongly sized systems, complicated controls and a lack of education for householders using them. However, the Trust said that for many of the 5 million people in the UK living off the gas grid and currently using energy sources such as oil to heat their homes, the heat pumps could offer carbon and energy bill savings.
Simon Green, head of Business Development for the Energy Saving Trust, said: "This trial shows that when installed and operated correctly, heat pump technologies will save significant amounts of CO2 in the UK, when replacing oil or traditional electric heating. But there is no doubt that the results are more varied than were expected, with results showing both high- and low-performing heat pumps."
The Heating and hot water council, whose members install such systems, said they are not currently enough installers capable of helping consumers choose the right products. Roger Webb, director at the HHIC, said: "Highlighting negative and positive results keeps all of us in the industry on our toes, so that we can work out ways that this vitally important heat pump technology can be realistically delivered. ."
A Decc spokesperson said: "The RHI is designed to encourage a switch using fossil fuels for heating to renewable technologies across all sectors, not just domestic. Heat pumps are just one of the technologies that the scheme would support. The majority of the renewable heat incentivised by the RHI will be produced by the commercial, public and industrial sectors.
"We know that domestic heat pumps have worked well in other countries, so we need to do more work to find out why they didn't perform as expected in EST's trials. For this reason, Decc, EST and industry intend to carry out a further year of monitoring to identify the factors that have caused poor performance of some of the heat pumps, and to determine whether performance can be improved."
Gaynor Hartnell, chief executive of the Renewable Energy Association, which represents renewable heat companies, said: "A properly installed and sized heat pump can deliver significant carbon savings, particularly in areas not served by the gas grid. Heat pumps are one of several technologies that can contribute to greening the UK's heat supply. These trials, while important, must not delay the introduction of the RHI in April next year."
Separately today, an analysis by the thinktank Institute for Public Policy Research suggested community buildings could earn around £100m a year from incentives for green electricity generation. The IPPR believes the UK's 280,000 pubs, village halls, community centres, churches, schools and pools could create the sizeable revenue streams by installing technologies such as solar panels and wind turbines and earning the government's feed-in-tariff, which launched in April. But the authors, who extrapolated analysis of 14 projects in British Gas's "Green Streets" scheme, acknowledged the one-off capital cost of such technologies would be around £1.2bn.
Australian Greens: 'We don't want to be just a coal mine for China'
Australia's new minority government must balance the economic benefits of a booming coal industry with an electorate calling for climate action
Jonathan Watts in Latrobe valley guardian.co.uk, Tuesday 7 September 2010 15.50 BST
West of Australia's Great Dividing Range, a cluster of giant black gashes marks one of the country's biggest coal mines. Latrobe valley's pits and power plants provide 85% of the electricity used by the 5 million residents of the state of Victoria.
They are a source of pride at the local exhibition centre, where guides claim their seam is the basis for the long-term prosperity of the region. "We've got enough coal in this valley for 500 years and there's more elsewhere. Australia is one giant pit," says Ian Southall, manager of the centre.
But Latrobe will also soon be the focus of a protest by environmentalists, who want Australia to end its dependency on mining, commodity exports and coal power by moving more emphatically towards renewable energy.
The sharply different perspectives at Latrobe are also evident at a national level, where the mining industry and the environmental movement have emerged as unusually prominent and divisive political forces.
In last month's general election, Queensland and New South Wales – two giant rural states that are increasingly wealthy thanks to mining – swung sharply to the right, while the inner city of Melbourne shifted emphatically in the opposite direction towards the Greens.
The lobbying might of the mining industry has always been great, but its influence – and confidence – appear to have swollen with its growing economic clout. But there are doubts among analysts and political opponents that the miners' short-term benefits are in line with the country's long term interests.
Currently, the industry is in the midst of a boom. Thanks to commodity demand from China and other developing nations, Kieran Davies, the chief economist at RBS Australia, says Australia's two key exports – coal and iron ore – now account for 7.5% of gross domestic product. This has almost cleared the country's trade deficit and enabled Australia to sprint out of the global downturn with an economy that could soon grow at the astonishing annual rate of about 10%.
"This highlights how closely our fortunes have become aligned with China's," Davies recently wrote in the Australian Financial Review. "Commodity demand from Asia has held up even as the US has faded, which suggests that the big challenge for Australian policy makers is how best to manage the huge surge in income that has started to course through the economy."
That task has proved politically toxic. This summer, Labor prime minister Kevin Rudd was driven from power when he tried to impose a 40% tax on super-profits made by the mining industry to fund long-term infrastructure investment. Commodity conglomerates tilted him out of office with a lavishly funded publicity campaign that claimed he was threatening Australia's prosperity.
It was not entirely a coup by the mining lobby. Rudd was already unpopular among colleagues and had lost credibility with the electorate for buckling on carbon trading legislation despite earlier claiming that climate change was "the great moral issue of our time."
But the spectacularly sudden unseating of a prime minister underscored the influence of the minerals industry. Rudd's replacement, Julia Gillard, has softened the super-tax plan.
The question of how to balance the here-now, gone-tomorrow gains from mining with the long-term goals of a sustainable economy and climate stability refuses to go away. Nationalists are concerned that Chinese firms are increasingly buying not just coal, but collieries as well. Environmentalists are ashamed that Australia has one of the world's highest per capita emissions of greenhouse gases.
The success of the Greens, which affirmed its position as the undisputed third party in last month's election, is likely to push the transition issue further to the fore.
"We must make a discussion as a nation. Do we want to be just a quarry for China?" asked Richard Di Natale, a newly elected Greens senator. "That would be risky and unbalanced. Renewables can provide jobs and help us manage the transition to a low-carbon economy." At Latrobe valley, perceptions are different. A promotional video at the centre shows the plant's plans to reduce emissions through carbon capture and storage and by drying the brown coal and compressing it into coal pellets for export.
Centre manager Southall sees this technology as the future. "We recognise that wind and solar are playing a growing role, but brown coal remains the basis of prosperity. The green movement don't buy that. It's very divisive. I wish they would get on board."
Others are quietly trying to pioneer a transition at grassroots level. Not far from the mining machines and smoke stacks, a co-operative of union activists is working with local government, farmers and workers to establish a factory that makes solar water heaters, which would be funded with pension funds and state incentives for renewable power. Their aim is to provide jobs for former mine workers, reduce energy costs and cut emissions.
The founder of the co-operative venture, Dave Kerin, said it was necessary to find an alternative way to address the climate crisis because political methods weren't working. "This election led to a really creative confusion," said Kerin. "Our nation is based on consumption. But that is based on an illusion. Everything's been thrown into the air."
Even so, there was predictably little support for the Greens in Latrobe valley. "The so-called Greens are all from the city. They don't know anything about living in a real green environment. They just talk and then go home and switch on their air conditioners," said Trevor Wallace, manager of a chainsaw and tractor shop.
But he acknowledged that other parts of Australia also changed as they became more dependent on mining. "Whoever leads the next government, it is going to be hard to ensure stability. Some rifts take time to heal."
• To order Jonathan Watts' book, When a Billion Chinese Jump, for £9.99 (RRP £14.99) call 0845 606 4232 begin_of_the_skype_highlighting 0845 606 4232 end_of_the_skype_highlighting or visit guardianbooks.co.uk.
Jonathan Watts in Latrobe valley guardian.co.uk, Tuesday 7 September 2010 15.50 BST
West of Australia's Great Dividing Range, a cluster of giant black gashes marks one of the country's biggest coal mines. Latrobe valley's pits and power plants provide 85% of the electricity used by the 5 million residents of the state of Victoria.
They are a source of pride at the local exhibition centre, where guides claim their seam is the basis for the long-term prosperity of the region. "We've got enough coal in this valley for 500 years and there's more elsewhere. Australia is one giant pit," says Ian Southall, manager of the centre.
But Latrobe will also soon be the focus of a protest by environmentalists, who want Australia to end its dependency on mining, commodity exports and coal power by moving more emphatically towards renewable energy.
The sharply different perspectives at Latrobe are also evident at a national level, where the mining industry and the environmental movement have emerged as unusually prominent and divisive political forces.
In last month's general election, Queensland and New South Wales – two giant rural states that are increasingly wealthy thanks to mining – swung sharply to the right, while the inner city of Melbourne shifted emphatically in the opposite direction towards the Greens.
The lobbying might of the mining industry has always been great, but its influence – and confidence – appear to have swollen with its growing economic clout. But there are doubts among analysts and political opponents that the miners' short-term benefits are in line with the country's long term interests.
Currently, the industry is in the midst of a boom. Thanks to commodity demand from China and other developing nations, Kieran Davies, the chief economist at RBS Australia, says Australia's two key exports – coal and iron ore – now account for 7.5% of gross domestic product. This has almost cleared the country's trade deficit and enabled Australia to sprint out of the global downturn with an economy that could soon grow at the astonishing annual rate of about 10%.
"This highlights how closely our fortunes have become aligned with China's," Davies recently wrote in the Australian Financial Review. "Commodity demand from Asia has held up even as the US has faded, which suggests that the big challenge for Australian policy makers is how best to manage the huge surge in income that has started to course through the economy."
That task has proved politically toxic. This summer, Labor prime minister Kevin Rudd was driven from power when he tried to impose a 40% tax on super-profits made by the mining industry to fund long-term infrastructure investment. Commodity conglomerates tilted him out of office with a lavishly funded publicity campaign that claimed he was threatening Australia's prosperity.
It was not entirely a coup by the mining lobby. Rudd was already unpopular among colleagues and had lost credibility with the electorate for buckling on carbon trading legislation despite earlier claiming that climate change was "the great moral issue of our time."
But the spectacularly sudden unseating of a prime minister underscored the influence of the minerals industry. Rudd's replacement, Julia Gillard, has softened the super-tax plan.
The question of how to balance the here-now, gone-tomorrow gains from mining with the long-term goals of a sustainable economy and climate stability refuses to go away. Nationalists are concerned that Chinese firms are increasingly buying not just coal, but collieries as well. Environmentalists are ashamed that Australia has one of the world's highest per capita emissions of greenhouse gases.
The success of the Greens, which affirmed its position as the undisputed third party in last month's election, is likely to push the transition issue further to the fore.
"We must make a discussion as a nation. Do we want to be just a quarry for China?" asked Richard Di Natale, a newly elected Greens senator. "That would be risky and unbalanced. Renewables can provide jobs and help us manage the transition to a low-carbon economy." At Latrobe valley, perceptions are different. A promotional video at the centre shows the plant's plans to reduce emissions through carbon capture and storage and by drying the brown coal and compressing it into coal pellets for export.
Centre manager Southall sees this technology as the future. "We recognise that wind and solar are playing a growing role, but brown coal remains the basis of prosperity. The green movement don't buy that. It's very divisive. I wish they would get on board."
Others are quietly trying to pioneer a transition at grassroots level. Not far from the mining machines and smoke stacks, a co-operative of union activists is working with local government, farmers and workers to establish a factory that makes solar water heaters, which would be funded with pension funds and state incentives for renewable power. Their aim is to provide jobs for former mine workers, reduce energy costs and cut emissions.
The founder of the co-operative venture, Dave Kerin, said it was necessary to find an alternative way to address the climate crisis because political methods weren't working. "This election led to a really creative confusion," said Kerin. "Our nation is based on consumption. But that is based on an illusion. Everything's been thrown into the air."
Even so, there was predictably little support for the Greens in Latrobe valley. "The so-called Greens are all from the city. They don't know anything about living in a real green environment. They just talk and then go home and switch on their air conditioners," said Trevor Wallace, manager of a chainsaw and tractor shop.
But he acknowledged that other parts of Australia also changed as they became more dependent on mining. "Whoever leads the next government, it is going to be hard to ensure stability. Some rifts take time to heal."
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