Home: Renewable Energy News: Wednesday 26 March, 2008

Renewable Energy News

WEDNESDAY 26 MARCH, 2008 |

Discussion paper on an Australian emissions released

Professor Ross Garnaut has released a discussion paper on an Australian emissions trading scheme model, stating that the introduction of an ETS signals the opportunity for profound, long-term structural change for Australia. The paper argues for the need to design the scheme on the basis that it will ultimately be part of a global agreement on greenhouse gas mitigation. “A global emissions trading scheme is clearly our end goal. I have looked at all the design issues through the lens of what would allow the most efficient and effective integration with international schemes,” said Garnaut. The paper suggests fixed and clear limits on emissions through the establishment of defined emissions ‘trajectories’, which would transparently map the pathway to emissions reduction targets/commitments. Permits would be regularly auctioned in line with the trajectory. “A long-term, firm trajectory for emissions reduction – which could only be tightened, not loosened, in line with emerging international commitments – would provide greater investor confidence and strengthen the credibility of the scheme,” he added.

Garnaut recommended four trajectories should be specified with the establishment of an ETS. The first up to 2012 would be based on Australia’s Kyoto commitments. The other three for the post-2012 period reflect increasing levels of ambition. Stationary energy, industrial processes, fugitives, transport and waste would be covered from the outset of the scheme with agriculture and forestry to be included as soon as practicable, the paper states. Garnaut said that ‘simplicity’ is the key to an effective ETS for Australia. The ETS discussion paper supports the auctioning of all permits, arguing that any increase in the price of goods or services, such as energy, will not be prevented through the free allocation of permits. The discussion paper supports transitional assistance to trade-exposed emissions intensive industries (such as steel and aluminium manufacturers) that are unable to pass on the cost of a carbon price.

Energy efficient buildings: cost-effective emission reduction

Making buildings more energy efficient is a cost-effective way to reduce greenhouse gas emissions, particularly since existing buildings account for 24% of world CO2 emissions, according to a new report published by the International Energy Agency. “With surging energy consumption, high energy prices and raising CO2 emissions, the imperative to improve energy efficiency is stronger than ever,” IEA Executive Director Nobuo Tanaka said. “On this road to a sustainable energy future, action in the building sector can play a key role,” added Tanaka. The IEA reported that existing buildings are responsible for more than 40% of the world’s total primary energy consumption. In collaboration with Agence Francaise de Developpement (AFD), the IEA assessed existing policies in measures to improve energy efficiency in existing residential buildings in Japan, the US, France, Germany and the UK. It pointed out that in all cases there were several market barriers inhibiting increased energy efficiency in residential buildings, such as difficulties in accessing capital, low priority of energy issues and different incentives between investors and energy end users, such as between a landlord and a tenant. “Our study identifies many effective policies to help overcome financial barriers to increased energy efficiency in buildings”, Tanaka said, adding that “more systematic data collection is essential to allow policy makers to understand trends and design the most appropriate policy packages to tackle these issues”.

Kyoto benchmark unfair?

Nations working out a new global climate treaty should use 2005 as the year from which greenhouse gas emissions cuts are measured, rather than the Kyoto Protocol’s 1990 benchmark, according to a senior Japanese official. “Comparisons with 1990 (emissions) levels are extremely unfair. That is the Japanese Government’s stance,” Japanese Vice Trade Minister Takao Kitabata said, according to AFP. "We believe that setting 2005 as the base year would be more satisfactory,” he added. Under the Kyoto Protocol, industrialised countries are obliged to cut their greenhouse gas emissions by a collective 5% below 1990 levels by the year 2012.

Chinese to increase spending on emission reduction

China will increase spending on energy efficiency and greenhouse gas emissions reduction programs by 78% in 2008, according to Chinese news reports. Chinese news agency Xinhua cited an announcement by the Finance Ministry that it would spend 元41.8 billion (A$6.5 billion) on efforts to promote greenhouse gas emissions-reduction schemes and energy efficiency programs, up from 元23.5 billion in 2007. Xinhua reported that the Ministry would earmark 元27 billion of special funds and the remaining 元14.8 billion would come from the National Development and Reform Commission, the country’s top economic planner, it said. “Out of the 元27 billion, 元7.5 billion would be invested in ten energy-saving programs, including technological transformation in factories, substitutes for oil and the introduction of energy-efficient light bulbs,” reported Xinhua. The Chinese Government has pledged to reduce energy intensity 20% below 2006 levels by 2010. The Chinese finance ministry said that 元4 billion in new investments would be dedicated to the closure of old coal-fired power and steel manufacturing plants.

South Korea to freeze greenhouse gas emissions

South Korea's Environment Minister has announced a freeze on the country’s greenhouse gas emissions at their 2005 levels over the next five years. Environment Minister Lee Maan-Ee presented a report to President Lee Myung-Bak, recommending the reductions. Under the Kyoto Protocol, South Korea is considered a developing country, and is therefore not subject to mandatory emissions caps. But the rapidly-industrialising nation has become the thirteenth biggest economy in the world, and according to estimates of the World Resources Institute is the ninth largest emitter of greenhouse gases. Korean news reports said local environmental groups have called the proposed emissions-freeze insufficient. The Korean Federation for Environmental Movement called for a 20% reduction by 2020. According to UN data, South Korea emitted 542.9 mtCO2-e in 2001, the latest year for which data is available. In 1990, emissions stood at 289.5 mtCO2-e. In March 2008, the Korea Energy Economics Institute published estimates that South Korea will emit 38% more greenhouse gases in 2020 than it did in 2005. The thinktank projected that the country’s emissions would increase by an average of 2.2% per year.

Australian carbon market grows 13% in first 3 months

The first update of the Carbon Offsets Guide shows the market continues to grow, according to Victorian Environment and Climate Change Minister Gavin Jennings. Jennings said the comprehensive online directory showed a 13% growth over its first three months with 36 providers now listed in the directory. “The Guide, developed by Global Sustainability at Royal Melbourne Institute of Technology in partnership with the Environment Protection Authority, reveals that more than 16.7 mtCO2-e worth in excess of $45.9 million were traded by Australian offset providers in 2006-07,” Jennings said. He added that the Government expected the Guide would provide guidance around the issues and help ensure people are making informed choices about the offsets they purchase. Global Sustainability at RMIT and EPA launched the Guide in December 2007 as a resource for businesses, government agencies, non- Government organisations and individuals seeking information about offsets. It provides a list of voluntary carbon offset providers, prices, project locations and accreditation standards, and provides descriptions of each provider. The Guide is updated every three months, with new providers added to the website and information on existing providers updated.

Mitsubishi Electric Corp to boost solar pv production

Mitsubishi Electric Corp has announced it will invest ¥7 billion (A$77.5 million) as part of its effort to boost annual production capacity of solar energy to 220 MW from 150 MW in October 2008. The Tokyobased company also aims to establish a photovoltaic cell program that will have an annual capacity of 500 MW by fiscal 2013 (1 April 2012 to 31 March 2013), in response to a strong increase in demand for solar power generation systems. “Recently, the PV market has been growing rapidly, reflecting concerns of increasing prices of petroleum and other materials, as well as increased environmental awareness arising from international activities aimed at reducing CO2 emissions to prevent global warming,” President and Chief Executive Officer Setsuhiro Shimomura said. Mitsubishi Electric, which began its residential PV systems business in 1996, forecasts a global PV market size of 1950 MW in fiscal 2008, up 26% from the previous fiscal year. The company intends to improve output of solar power generation systems by combining its multi-crystal silicon cell technologies with its PV inverters, Shimomura said, adding that he expects a 30% rise in global shipment volume for fiscal 2008 versus the previous fiscal year.

News for Friday 21 March, 2008

View all news for Friday 21 March, 2008 on one page