Bill provides homeowners with up to £6,000 for insulation and places legal obligations on power companies to cut emissions
Damian Carrington guardian.co.uk, Wednesday 8 December 2010 07.00 GMT
A flagship coalition policy to provide homeowners with thousands of pounds to make their properties more energy-efficient will be introduced to parliament today.
The energy security and green economy bill is expected to place legal obligations on power companies to cut the greenhouse gas emissions in their customers' homes. It is expected to allow the companies to offer incentives, such as holidays abroad, to encourage take-up of the "green deal" loans.
Chris Huhne, the secretary of state for energy and climate change, has signalled that other incentives to install energy-saving measures may include rebates on council tax bills or, in future, reductions in the stamp duty paid by homebuyers. Huhne has been working on the incentives with Downing Street's so-called "nudge unit" – the behavioural insight team.
Tesco, B&Q and Marks & Spencer are among the big brands that have held talks with the government about delivering the green deal, along with energy companies. The green deal is likely to see billions of pounds lent every year and to create new jobs. The government estimates that 14m of the UK's 27m homes would benefit from cavity, solid wall or loft insulation.
The energy used for heating rooms and water in the nation's buildings generates about 33% of the UK's carbon emissions and must be cut by 20% if the government is to meet its legally binding emissions targets. On Tuesday, the government's official advisers, the Committee on Climate Change, said a green deal that vastly improved home energy efficiency was one of the three key tests of the coalition's pledge to be the "greenest government ever", alongside delivering low-carbon energy and implementing ambitious targets for emissions cuts.
The Department for Energy and Climate Change (Decc) has indicated that a "golden rule" will apply to the loans made for energy-efficiency measures which dictates that the cost of the loan repayments will always be lower than the fuel bill savings delivered. The more expensive measures, such as solid wall insulation, appear by the government's own figures to break the golden rule. But the new bill is expected to use powers from the Carbon Emissions Reduction Target – and possibly its expected 2013 replacement, the Energy Company Obligation (ECO) – to make energy suppliers balance the books.
The government hopes the green deal will allow householders without the money to fund energy-efficiency measures to gain access to upfront capital, expected to be capped at about £6,000. Those renting may get the power after 2015 to force landlords to install energy-efficiency measures. The green deal loans made are expected to be legally attached to the property, not the owner. This would mean that someone thinking about moving home would not be deterred from taking up the scheme by the prospect of not benefiting from the savings delivered by the work.
Campaigners have expressed concern that the involvement of private sector companies could make the scheme more expensive. They also insist that any incentives given – such as holidays – must not cancel out the emissions savings. Another concern is that without a robust quality assurance system and guarantees, householders may fear poor work carried out by "cowboy" builders.
Other measures expected in the bill are:
• Powers to force energy companies to provide information on cheaper tariffs available to their own customers;
• Provisions to allow oil and gas producers to use the pipelines of others, to assist the "full economic recovery" of the UK's reserves;
• Additional powers to ease the connection of offshore windfarms to the National Grid;
• Changes to pricing rules to try to ensure sufficient gas is available – the UK keeps relatively low reserves;
• Extending existing powers enabling the start of installation of smart meters;
• Making Ofgem responsible for predictions of future electricity capacity needs.
Wednesday, 8 December 2010
China on path to redemption in Cancún
Cast as wrecker of Copenhagen, China taking more constructive approach, say observers, and may compromise on US demand
Suzanne Goldenberg in Cancún guardian.co.uk, Tuesday 7 December 2010 19.21 GMT
China, cast as the wrecker of UN climate negotiations last year, went some way towards rehabilitation at Cancún summit today, amid reports it was prepared to compromise on a core US demand.
In an apparent effort to make up for last year's debacle at Copenhagen – where China fired up developing countries into opposing a deal and delivering diplomatic snubs to Barack Obama – officials this time have opted for a constructive, low-key approach, say negotiators and observers.
"There is more camaraderie here than I saw in Copenhagen. I see more dialogue and much more intense engagement between the US and China and less shadow boxing," said India's environment minister, Jairam Ramesh. "China has moved."
Some reports have even suggested that China, now the biggest producer of greenhouse gases, was prepared to adopt legally binding emissions targets and subject its voluntary C02 reductions to international monitoring and verification.
"It's a huge step in the right direction," said Fred Boltz of Conservation International. Jennifer Morgan, an analyst for the World Resource Institute, immediately hailed the move as a "gamechanger".
The US climate change envoy, Todd Stern, has said repeatedly that America will not support emerging deals on climate aid and technology transfer, or preventing deforestation unless there is also progress on its prime demand of verification.
For China, as for the other emerging economic powers like India and Brazil, the issue of international verification of their efforts to reduce emissions is very sensitive. But the Chinese climate change envoy, Xie Zhenhua, did not list the issue as a deal breaker at a press conference.
Ramesh, who has put forward his own proposal for verification, said he spent four hours with the Chinese delegation at the weekend. After Copenhagen, he thought China would be wary of being cast as the wrecker once more. "They know the world's radar is on them," he said. "China doesn't want to be blamed. If China is the only party holding out they will come on board."
Even before the signs of Chinese movement, negotiators and observers had been remarking on the relative ease of the Cancún talks – in stark contrast to last year's fraught exchanges between US and Chinese officials at Copenhagen.
Jennifer Haverkamp of the Environmental Defence Fund suggested the low-key approach was reflective of the stakes in Mexico – negotiators conceded months ago they would unable to reach a full-scale treaty, and were only hoping to move the process along.
"I think that with the low level of ambition there seems to be a desire on both sides – China and the US – not to be blamed for not working hard to find a modest outcome," she said. "You just don't see, and hopefully won't see, the kind of back and forth you saw at Copenhagen. Both are trying to appear constructively engaged."
Xie agreed. "We see the atmosphere is relatively mild," he told a press conference, "although we don't see much progress."
China has also spent much of the last year trying to rehabilitate its image. As the high level talks got underway in the main resort complex, Chinese officials appeared at a side event hosted by the Climate Group to promote their domestic initiatives to reduce emissions.
China was already half way to its goal of cutting carbon intensity by two-fifths to 45% of 2005 levels by 2020, said Junfeng Li, the deputy director of the Energy Research Institute. The country had also reached renewable energy targets. Both goals are independent of the outcome of the UN climate negotiations.
China is due to incorporate its environmental targets into its 12th five-year plan to be adopted by National People's Congress in March.
Xie told reporters that the process would make such voluntary targets legally binding. "Once we have made the plan we are going to have the approval from the National People's Congress. That means we will have binding targets," he said. "You can be assured that our voluntary emissions reductions targets will be honoured and will be implemented."
Suzanne Goldenberg in Cancún guardian.co.uk, Tuesday 7 December 2010 19.21 GMT
China, cast as the wrecker of UN climate negotiations last year, went some way towards rehabilitation at Cancún summit today, amid reports it was prepared to compromise on a core US demand.
In an apparent effort to make up for last year's debacle at Copenhagen – where China fired up developing countries into opposing a deal and delivering diplomatic snubs to Barack Obama – officials this time have opted for a constructive, low-key approach, say negotiators and observers.
"There is more camaraderie here than I saw in Copenhagen. I see more dialogue and much more intense engagement between the US and China and less shadow boxing," said India's environment minister, Jairam Ramesh. "China has moved."
Some reports have even suggested that China, now the biggest producer of greenhouse gases, was prepared to adopt legally binding emissions targets and subject its voluntary C02 reductions to international monitoring and verification.
"It's a huge step in the right direction," said Fred Boltz of Conservation International. Jennifer Morgan, an analyst for the World Resource Institute, immediately hailed the move as a "gamechanger".
The US climate change envoy, Todd Stern, has said repeatedly that America will not support emerging deals on climate aid and technology transfer, or preventing deforestation unless there is also progress on its prime demand of verification.
For China, as for the other emerging economic powers like India and Brazil, the issue of international verification of their efforts to reduce emissions is very sensitive. But the Chinese climate change envoy, Xie Zhenhua, did not list the issue as a deal breaker at a press conference.
Ramesh, who has put forward his own proposal for verification, said he spent four hours with the Chinese delegation at the weekend. After Copenhagen, he thought China would be wary of being cast as the wrecker once more. "They know the world's radar is on them," he said. "China doesn't want to be blamed. If China is the only party holding out they will come on board."
Even before the signs of Chinese movement, negotiators and observers had been remarking on the relative ease of the Cancún talks – in stark contrast to last year's fraught exchanges between US and Chinese officials at Copenhagen.
Jennifer Haverkamp of the Environmental Defence Fund suggested the low-key approach was reflective of the stakes in Mexico – negotiators conceded months ago they would unable to reach a full-scale treaty, and were only hoping to move the process along.
"I think that with the low level of ambition there seems to be a desire on both sides – China and the US – not to be blamed for not working hard to find a modest outcome," she said. "You just don't see, and hopefully won't see, the kind of back and forth you saw at Copenhagen. Both are trying to appear constructively engaged."
Xie agreed. "We see the atmosphere is relatively mild," he told a press conference, "although we don't see much progress."
China has also spent much of the last year trying to rehabilitate its image. As the high level talks got underway in the main resort complex, Chinese officials appeared at a side event hosted by the Climate Group to promote their domestic initiatives to reduce emissions.
China was already half way to its goal of cutting carbon intensity by two-fifths to 45% of 2005 levels by 2020, said Junfeng Li, the deputy director of the Energy Research Institute. The country had also reached renewable energy targets. Both goals are independent of the outcome of the UN climate negotiations.
China is due to incorporate its environmental targets into its 12th five-year plan to be adopted by National People's Congress in March.
Xie told reporters that the process would make such voluntary targets legally binding. "Once we have made the plan we are going to have the approval from the National People's Congress. That means we will have binding targets," he said. "You can be assured that our voluntary emissions reductions targets will be honoured and will be implemented."
Global investment in renewables to total $1.7 trillion by 2020
More proactive government policies could generate an extra £546bn of investment in clean energy, report finds
Tim Webb guardian.co.uk, Wednesday 8 December 2010 07.55 GMT
Current policies among the world's richest 20 nations will result in $546bn (£348bn) less being invested in clean energy by 2020 than is needed to prevent dangerous climate change, according to a new report.
The report also predicts that the UK will become a much more significant investor in green technology globally, increasing its spending by 260% over the next decade. But despite this boost to renewable energy and other green industries, the authors believe that India will nudge ahead of the UK into third place by 2020.
On a business as usual basis, $1.7 trillion (£1.08tr) would be invested globally in renewables like solar and wind, biomass and other low-carbon forms of electricity generation over the next decade.
According to a report carried out by Bloomberg New Energy Finance for Pew Charitable Trusts, this would still be $546bn short of the investment which more proactive government policies on climate change by the G20 countries would bring about globally. "Enhanced" policies such as fixing a price on carbon and tough restrictions on power stations' emissions are seen as key to restricting a rise in temperatures to no more than 2C.
The report shows how much money Asian countries – particularly China and India – are expected to pour into clean energy regardless of what policies are adopted. Under the "enhanced policy scenario", China, which last year became the world's biggest investor in clean energy, is expected to triple spending over the next decade to over $90bn (£57bn) per year by 2020, more than half going on wind power. Chinese spending is forecast to be almost twice that of the second biggest spender, the US. Mature markets where renewables have enjoyed significant investment for some time, such as Germany, are expected to see investment levels decline over the decade.
The UK is set to keep up with soaring investment, having traditionally lagged its continental counterparts despite its ample wind and marine energy potential. Stronger government support has belatedly kick-started investment in green technology, catapulting the UK to the world's third biggest spender on renewable energy last year thanks to a surge in financing for North Sea offshore windfarms. Under the enhanced policy scenario, annual investment could grow by 260% by 2020 according to the report, with a total of $134bn being spent over the decade and $22bn in the year 2020.
Even so, the UK will be overtaken by India by 2020, which was ranked 10th last year but is forecast to rise to third by the end of the decade, behind China and the US, making it the world's faster growing spender. The UK would be pushed back to fourth place in all three scenarios – based on existing policies, implementing pledges committed to at the Copenhagen summit last year and enhanced policies.
Tim Webb guardian.co.uk, Wednesday 8 December 2010 07.55 GMT
Current policies among the world's richest 20 nations will result in $546bn (£348bn) less being invested in clean energy by 2020 than is needed to prevent dangerous climate change, according to a new report.
The report also predicts that the UK will become a much more significant investor in green technology globally, increasing its spending by 260% over the next decade. But despite this boost to renewable energy and other green industries, the authors believe that India will nudge ahead of the UK into third place by 2020.
On a business as usual basis, $1.7 trillion (£1.08tr) would be invested globally in renewables like solar and wind, biomass and other low-carbon forms of electricity generation over the next decade.
According to a report carried out by Bloomberg New Energy Finance for Pew Charitable Trusts, this would still be $546bn short of the investment which more proactive government policies on climate change by the G20 countries would bring about globally. "Enhanced" policies such as fixing a price on carbon and tough restrictions on power stations' emissions are seen as key to restricting a rise in temperatures to no more than 2C.
The report shows how much money Asian countries – particularly China and India – are expected to pour into clean energy regardless of what policies are adopted. Under the "enhanced policy scenario", China, which last year became the world's biggest investor in clean energy, is expected to triple spending over the next decade to over $90bn (£57bn) per year by 2020, more than half going on wind power. Chinese spending is forecast to be almost twice that of the second biggest spender, the US. Mature markets where renewables have enjoyed significant investment for some time, such as Germany, are expected to see investment levels decline over the decade.
The UK is set to keep up with soaring investment, having traditionally lagged its continental counterparts despite its ample wind and marine energy potential. Stronger government support has belatedly kick-started investment in green technology, catapulting the UK to the world's third biggest spender on renewable energy last year thanks to a surge in financing for North Sea offshore windfarms. Under the enhanced policy scenario, annual investment could grow by 260% by 2020 according to the report, with a total of $134bn being spent over the decade and $22bn in the year 2020.
Even so, the UK will be overtaken by India by 2020, which was ranked 10th last year but is forecast to rise to third by the end of the decade, behind China and the US, making it the world's faster growing spender. The UK would be pushed back to fourth place in all three scenarios – based on existing policies, implementing pledges committed to at the Copenhagen summit last year and enhanced policies.