An army of workers changed motorway speed signs overnight from 120km/h to 110km/h, as part of a series of measures designed to save €2.3bn a year in oil costs
Giles Tremlett in Madrid guardian.co.uk, Monday 7 March 2011 17.15 GMT
Spanish drivers have begun keeping their speed to below 110 km per hour (68mph) on motorways after the government made a cut in the speed limit a key measure in moves to lower Spain's energy bill.
The controversial 10 km/hr change to the speed limit will remain in place at least until the end of June as part of a series of measures designed to cut consumption by more than 5%.
Other measures included schemes for replacing old tyres, switching public lighting to low energy bulbs and helping town halls hire consultants to reduce their electricity consumption.
Spain's socialist government aims to save the country from importing 28.6m barrels of oil a year – a potential saving of €2.3bn (£2bn). The government said it also hoped to reduce annual CO2 emissions by 12.5m tonnes.
More than 6,000 motorway speed limit signs had to be changed overnight, with an army of workers sticking the new speed limit over the old one.
Opposition parties said the reduced speed limit would make little impact on Spain's overall oil bill. Right-wing commentators claimed the change was mainly aimed at increasing income from speeding fines.
The government is also reducing the price of commuter train tickets in order to persuade more Spaniards to leave their cars at home and use public transport. Increased oil prices and a rise in eurozone interest rates could further slow Spain's return to growth, analysts warn.
Wednesday, 9 March 2011
Biofuel scepticism prompts German summit
Fears of petrol shortages as consumers reject biofuels in favour of standard petrol
Abby d'Arcy Hughes, Berlin
guardian.co.uk, Monday 7 March 2011 17.52 GMT
The German government has called an emergency fuel summit for Tuesday to try to prevent a consumer backlash against biofuels from snowballing into a full-scale petrol shortage.
Growing scepticism about the new biofuel mix, known as E10, has resulted in consumers queuing up for standard petrol, leading to supply shortages in a market already spooked by the turmoil in the Middle East.
BP, the main producer of E10 in Germany, has decided to delay production of the fuel at its two largest German refineries, but risks penalties if it does not meet the new biofuel quota set by the government. Petrol stations have run dangerously low of standard fuels because they have switched some of their forecourt reserves to E10, which has been available in Germany since the new year.
E10 petrol contains a maximum 10% bioethanol, 5% more than standard Super Plus. Up to 4m cars in Germany cannot run on the new biofuel, 7% of all cars on Germany's roads. Experts blame manufacturers for a lack of information. "The car industry has been sloppy," said Lutz Mez, an environment expert at Berlin's Free University. "Taxi drivers don't know what's going on. If they don't get it, how will anyone else?" he said.
Germany's environment minister, Norbert Röttgen, said the government would not retreat on the E10 rollout. Some members of the junior coalition FDP party argue that Germany should hold off E10 production. "Consumers need clarity and security first," said FDP MP, Patrick Döring.
According to the Green party, Germany needs to take a closer look at its car culture. "The E10 concept has failed," said Cem Özdemir, the party leader. "It's not just a communication catastrophe," he said. "We need cars that run on less petrol, speed limits on motorways and more investment in electric cars."
BMW, one of the country's biggest car makers, rejected criticism that it sent out mixed messages. "Our dealers were informed, and our hotline and website had all the information," BMW spokesman Bernhard Ederer said. He confirmed that all BMW's cars can run on E10.
BP also refuses to bear the brunt of the blame and told the Guardian it was completely committed to E10. "It was imposed on us by the government to ensure a lower carbon future," a BP spokesman said.
"It's in our interests that E10 becomes the main fuel in Germany. We are doing everything we can."
Abby d'Arcy Hughes, Berlin
guardian.co.uk, Monday 7 March 2011 17.52 GMT
The German government has called an emergency fuel summit for Tuesday to try to prevent a consumer backlash against biofuels from snowballing into a full-scale petrol shortage.
Growing scepticism about the new biofuel mix, known as E10, has resulted in consumers queuing up for standard petrol, leading to supply shortages in a market already spooked by the turmoil in the Middle East.
BP, the main producer of E10 in Germany, has decided to delay production of the fuel at its two largest German refineries, but risks penalties if it does not meet the new biofuel quota set by the government. Petrol stations have run dangerously low of standard fuels because they have switched some of their forecourt reserves to E10, which has been available in Germany since the new year.
E10 petrol contains a maximum 10% bioethanol, 5% more than standard Super Plus. Up to 4m cars in Germany cannot run on the new biofuel, 7% of all cars on Germany's roads. Experts blame manufacturers for a lack of information. "The car industry has been sloppy," said Lutz Mez, an environment expert at Berlin's Free University. "Taxi drivers don't know what's going on. If they don't get it, how will anyone else?" he said.
Germany's environment minister, Norbert Röttgen, said the government would not retreat on the E10 rollout. Some members of the junior coalition FDP party argue that Germany should hold off E10 production. "Consumers need clarity and security first," said FDP MP, Patrick Döring.
According to the Green party, Germany needs to take a closer look at its car culture. "The E10 concept has failed," said Cem Özdemir, the party leader. "It's not just a communication catastrophe," he said. "We need cars that run on less petrol, speed limits on motorways and more investment in electric cars."
BMW, one of the country's biggest car makers, rejected criticism that it sent out mixed messages. "Our dealers were informed, and our hotline and website had all the information," BMW spokesman Bernhard Ederer said. He confirmed that all BMW's cars can run on E10.
BP also refuses to bear the brunt of the blame and told the Guardian it was completely committed to E10. "It was imposed on us by the government to ensure a lower carbon future," a BP spokesman said.
"It's in our interests that E10 becomes the main fuel in Germany. We are doing everything we can."
Could Modec crash kill off UK's commercial electric vehicle market?
BusinessGreen: Government urged to introduce incentives for electric vans after pioneering start up calls in the administrators
Jessica Shankleman for BusinessGreen guardian.co.uk, Tuesday 8 March 2011 14.30 GMT
Modec’s electric vans face an uncertain future now the company has gone into administration.
The government has been urged to deliver stronger incentives and policies to boost the low carbon commercial vehicle market after one of the UK's leading electric vehicle (EV) start ups called in the administrators late last week.
Coventry-based Modec, which has supplied electric delivery vans to a host of blue chip clients including UPS and FedEx, announced on Friday that it had appointed three partners from Zolfo Cooper as administrators. The company said that it had fallen victim of "severe cashflow difficulties" after a mooted take over by current stakeholder US-based Navistar fell through.
The company will continue to trade through administration while another buyer is sought. However, Zolfo Cooper immediately made 26 of the firm's 53 employees redundant in a bid to make the company more attractive to potential buyers.
Modec reportedly had debts of more than £40m and had failed to meet its target to ramp up production to 2,000 vans a year. According to the Financial Times, just 400 vehicles have been sold so far, including 150 in the UK.
However, the move will still come as a major blow to the UK's emerging electric vehicle market. Modec had been celebrated as one of the most promising low carbon vehicle firms in the country and is one of four van manufacturers to have been selected to participate in the previous government's £20m Low Carbon Vehicle Public Procurement (LCVPP) programme. The initiative aimed to increase the uptake of low carbon vehicles in public sector fleets and Modec received £224,000 in the first phase of the project, supplying four electric vans to public sector fleets.
A government spokesperson said the news was disappointing, "as Modec has been one of the pioneers in the challenging market for low carbon vans". However, they refused to comment further, insisting speculation about the company's future was now "a matter for the administrators".
Ian Hobday, managing director of UK-based Liberty Electric Cars, told BusinessGreen the company is now actively investigating the the possibility of buying Modec, arguing such a move would be preferable to the company being acquired by an overseas firm, as happened late last year to Wearside-based Tanfield Group's Smith Electric Vehicles.
He also urged the government to extend its £5,000 plugged-in-car grant to commercial vehicles and said London Mayor Boris Johnson should introduce a policy, already in place in some European cities, whereby freight deliveries are restricted to the night time, forcing companies to use quiet EVs to avoid noise disturbance.
A spokeswoman for the Department for Transport told BusinessGreen that it is currently working with the freight industry and manufacturers to identify ways of boosting uptake of lower emission commercial vehicles across the freight and logistics sector.
The news of Modec's failure is likely to cause embarrassment to the government, as it coincides with the publication of a high-profile cross department Carbon Plan that includes a commitment to accelerate the roll out of electric vehicle recharging infrastructure.
The news of Coventry-based Modec's failure also comes as Energy and Climate Change Secretary Chris Huhne today visited a separate West Midlands-based low carbon vehicle manufacturer, Loughborough's Intelligent Energy, to discuss the commercialisation and manufacturing of hydrogen fuel cell technology in the UK.
Jessica Shankleman for BusinessGreen guardian.co.uk, Tuesday 8 March 2011 14.30 GMT
Modec’s electric vans face an uncertain future now the company has gone into administration.
The government has been urged to deliver stronger incentives and policies to boost the low carbon commercial vehicle market after one of the UK's leading electric vehicle (EV) start ups called in the administrators late last week.
Coventry-based Modec, which has supplied electric delivery vans to a host of blue chip clients including UPS and FedEx, announced on Friday that it had appointed three partners from Zolfo Cooper as administrators. The company said that it had fallen victim of "severe cashflow difficulties" after a mooted take over by current stakeholder US-based Navistar fell through.
The company will continue to trade through administration while another buyer is sought. However, Zolfo Cooper immediately made 26 of the firm's 53 employees redundant in a bid to make the company more attractive to potential buyers.
Modec reportedly had debts of more than £40m and had failed to meet its target to ramp up production to 2,000 vans a year. According to the Financial Times, just 400 vehicles have been sold so far, including 150 in the UK.
However, the move will still come as a major blow to the UK's emerging electric vehicle market. Modec had been celebrated as one of the most promising low carbon vehicle firms in the country and is one of four van manufacturers to have been selected to participate in the previous government's £20m Low Carbon Vehicle Public Procurement (LCVPP) programme. The initiative aimed to increase the uptake of low carbon vehicles in public sector fleets and Modec received £224,000 in the first phase of the project, supplying four electric vans to public sector fleets.
A government spokesperson said the news was disappointing, "as Modec has been one of the pioneers in the challenging market for low carbon vans". However, they refused to comment further, insisting speculation about the company's future was now "a matter for the administrators".
Ian Hobday, managing director of UK-based Liberty Electric Cars, told BusinessGreen the company is now actively investigating the the possibility of buying Modec, arguing such a move would be preferable to the company being acquired by an overseas firm, as happened late last year to Wearside-based Tanfield Group's Smith Electric Vehicles.
He also urged the government to extend its £5,000 plugged-in-car grant to commercial vehicles and said London Mayor Boris Johnson should introduce a policy, already in place in some European cities, whereby freight deliveries are restricted to the night time, forcing companies to use quiet EVs to avoid noise disturbance.
A spokeswoman for the Department for Transport told BusinessGreen that it is currently working with the freight industry and manufacturers to identify ways of boosting uptake of lower emission commercial vehicles across the freight and logistics sector.
The news of Modec's failure is likely to cause embarrassment to the government, as it coincides with the publication of a high-profile cross department Carbon Plan that includes a commitment to accelerate the roll out of electric vehicle recharging infrastructure.
The news of Coventry-based Modec's failure also comes as Energy and Climate Change Secretary Chris Huhne today visited a separate West Midlands-based low carbon vehicle manufacturer, Loughborough's Intelligent Energy, to discuss the commercialisation and manufacturing of hydrogen fuel cell technology in the UK.
Connie Hedegaard wins battle for 25% carbon emissions cut
EU climate change commissioner – with help from Chris Huhne – sees off lobbyists who opposed raising target from 20%
• European commission roadmap to a low-carbon economy in 2050
Fiona Harvey, environment correspondent guardian.co.uk, Tuesday 8 March 2011 15.56 GMT
Europe's climate chief has beaten off intense lobbying from businesses to secure a key victory in the battle over greenhouse gas targets.
Connie Hedegaard, the EU climate change commissioner, published on Tuesday afternoon her long-awaited report into how the EU can toughen its climate targets in a cost-effective manner, with a proposal that the EU could raise its current targets on emissions cuts from 20% emissions cuts to 25% cuts by 2020.
Despite pressure from business groups to remove the proposal, and retain a clear commitment to stick at the lower 20% target, it remained in the final draft of the "roadmap to 2050" seen by the Guardian ahead of publication.
Ruth Davis, the chief policy adviser at Greenpeace, said: "Over the last few weeks lobbyists for Europe's dirtiest corporations have frantically sought to strip the European climate plan of any ambition whatsoever – but they have failed. What this road map shows is that if Europe does nothing beyond what it's already planning to do, we will not only meet our 2020 carbon target – but also exceed it by quite some way."
According to the 2050 roadmap, Europe will reduce its emissions by about 25% by 2020 if it implements the policies on energy efficiency that member states have already agreed. The roadmap found that setting a reductions target of at least 25% by 2020 would also be the most cost-effective way of cutting emissions by 80% by 2050, in line with the EU's international commitments.
However, the 25% target must pass several more obstacles before it can become adopted as the EU's official policy. It will be the subject of intense negotiations on March 14, when member states will meet to discuss the European response to climate change.
The extent of business lobbying on the subject has been evident due to the companies that Guenther Oettinger, the EU's energy commissioner, has met with in recent weeks. Oettinger firmly opposes raising the 20% target, having told the Guardian that tougher targets would lead to the "faster de-industrialisation" of Europe.
Oettinger met representatives of Eurelectric, the association of the European electric industry; Geode, an association of electricity distributors; the chief executives of the European Chemical Industry Council; OMV AG, Austria's biggest oil producer; and several other companies known to be hostile to the higher target. By contrast, he had only a handful of meetings with low-carbon supporters, including one with a German state agency for electric vehicles.
Chris Huhne, the UK's climate change secretary, gas played a leading role in the push for a tougher emissions target. He gathered support from his counterparts in Germany, France and Denmark to urge a target of 30% emissions cuts, arguing that it was needed to wean Europe off oil and would create jobs by stimulating the green economy.
The 25% proposal represents a possible compromise.
Greenpeace's Davis said: "This is a victory for Chris Huhne. He has been at the forefront of making the case that if Europe is to insulate itself from the hazard of rising oil prices, and compete with China in 21st century industries, it needs to up its game. The case for Europe making a 30% cut is now just inarguable, and should happen without a reliance upon offsets from abroad."
Gareth Stace, the head of climate and environment policy at the EEF, the main body representing manufacturers in the UK, said: "This is a welcome recognition that a clear framework and realistic ambition is the only way forward for reducing emissions. This is vital if we are not to export jobs to developing countries and allow European industry to capitalise on the growth opportunities associated with creating a low-carbon economy."
But he added: "Now is not the time to focus on tightening top-down carbon targets that must be met by the end of the decade, but to develop a strategy of what can be achieved in the short, medium and longer term." He said that rather than setting "top-down" targets at a European level, ministers should instead appraise where cuts could take place at lowest cost, and devise a target based on this assessment.
Sol Oyuela, senior adviser on climate justice at the charity Christian Aid, said: "It's good to see the EU saying today that 25 per cent cuts by 2020 are achievable. However, what's really striking is the yawning gap between what European leaders are prepared to commit to and the ambitious plans which the Chinese authorities announced on Saturday.
"China's new five-year plan outlines how the country will achieve its carbon intensity reduction target of 40 to 50 per cent by 2020 by supporting low-carbon industries, creating carbon markets and investing huge sums of public money in green innovation. The plan shows that the Chinese have great confidence in the green future being an engine for development."
• European commission roadmap to a low-carbon economy in 2050
Fiona Harvey, environment correspondent guardian.co.uk, Tuesday 8 March 2011 15.56 GMT
Europe's climate chief has beaten off intense lobbying from businesses to secure a key victory in the battle over greenhouse gas targets.
Connie Hedegaard, the EU climate change commissioner, published on Tuesday afternoon her long-awaited report into how the EU can toughen its climate targets in a cost-effective manner, with a proposal that the EU could raise its current targets on emissions cuts from 20% emissions cuts to 25% cuts by 2020.
Despite pressure from business groups to remove the proposal, and retain a clear commitment to stick at the lower 20% target, it remained in the final draft of the "roadmap to 2050" seen by the Guardian ahead of publication.
Ruth Davis, the chief policy adviser at Greenpeace, said: "Over the last few weeks lobbyists for Europe's dirtiest corporations have frantically sought to strip the European climate plan of any ambition whatsoever – but they have failed. What this road map shows is that if Europe does nothing beyond what it's already planning to do, we will not only meet our 2020 carbon target – but also exceed it by quite some way."
According to the 2050 roadmap, Europe will reduce its emissions by about 25% by 2020 if it implements the policies on energy efficiency that member states have already agreed. The roadmap found that setting a reductions target of at least 25% by 2020 would also be the most cost-effective way of cutting emissions by 80% by 2050, in line with the EU's international commitments.
However, the 25% target must pass several more obstacles before it can become adopted as the EU's official policy. It will be the subject of intense negotiations on March 14, when member states will meet to discuss the European response to climate change.
The extent of business lobbying on the subject has been evident due to the companies that Guenther Oettinger, the EU's energy commissioner, has met with in recent weeks. Oettinger firmly opposes raising the 20% target, having told the Guardian that tougher targets would lead to the "faster de-industrialisation" of Europe.
Oettinger met representatives of Eurelectric, the association of the European electric industry; Geode, an association of electricity distributors; the chief executives of the European Chemical Industry Council; OMV AG, Austria's biggest oil producer; and several other companies known to be hostile to the higher target. By contrast, he had only a handful of meetings with low-carbon supporters, including one with a German state agency for electric vehicles.
Chris Huhne, the UK's climate change secretary, gas played a leading role in the push for a tougher emissions target. He gathered support from his counterparts in Germany, France and Denmark to urge a target of 30% emissions cuts, arguing that it was needed to wean Europe off oil and would create jobs by stimulating the green economy.
The 25% proposal represents a possible compromise.
Greenpeace's Davis said: "This is a victory for Chris Huhne. He has been at the forefront of making the case that if Europe is to insulate itself from the hazard of rising oil prices, and compete with China in 21st century industries, it needs to up its game. The case for Europe making a 30% cut is now just inarguable, and should happen without a reliance upon offsets from abroad."
Gareth Stace, the head of climate and environment policy at the EEF, the main body representing manufacturers in the UK, said: "This is a welcome recognition that a clear framework and realistic ambition is the only way forward for reducing emissions. This is vital if we are not to export jobs to developing countries and allow European industry to capitalise on the growth opportunities associated with creating a low-carbon economy."
But he added: "Now is not the time to focus on tightening top-down carbon targets that must be met by the end of the decade, but to develop a strategy of what can be achieved in the short, medium and longer term." He said that rather than setting "top-down" targets at a European level, ministers should instead appraise where cuts could take place at lowest cost, and devise a target based on this assessment.
Sol Oyuela, senior adviser on climate justice at the charity Christian Aid, said: "It's good to see the EU saying today that 25 per cent cuts by 2020 are achievable. However, what's really striking is the yawning gap between what European leaders are prepared to commit to and the ambitious plans which the Chinese authorities announced on Saturday.
"China's new five-year plan outlines how the country will achieve its carbon intensity reduction target of 40 to 50 per cent by 2020 by supporting low-carbon industries, creating carbon markets and investing huge sums of public money in green innovation. The plan shows that the Chinese have great confidence in the green future being an engine for development."