The UK’s Energy Crisis

What annoys me most about the Solar Power Feed-in Tariff saga is not that the UK Government suddenly pulled the plug on the full rate for household-sized systems, or that they set the cut-off date before they finished their consultation, or even that that the Department of Energy and Climate Change (DECC) dragged out a legal appeal process.

Despite the truly pitiful sight of a Minister of State being sent out to bat with a miniaturised teaspoon to defend the indefensible decision, and despite the energy industry stooges that have placements inside DECC and are clearly affecting policy, no, the thing that really gets me is the focus on budgets instead of targets.

Here’s a summary from the Government’s own “long term trend” figures for energy consumption in Great Britain :-

Nobody can swear to me that the last few years are not just a glitch caused by economic instabilities, and that the re-localisation of manufacture in future in a recovering economy will not push this demand continually higher according to the trendline.

What are we using to supply this energy ? Here’s a summary :-

Despite the near exponential rise in renewable energy, it’s starting from a small base. The increase in energy consumption is being satisfied by a sharp rise in the supply of Natural Gas – something which the UK is producing increasingly less of these days. And for those who think that shale gas production would help, no, only a few percent of demand could be satisfied. This is an import-led energy supply, and the trend should ring alarm bells, but clearly doesn’t even tickle the ears of the average person in the street.

Electricity demand growth remains healthy, despite problems with unreliable supply from nuclear electricity (refered to as “outages” in the DECC Digest of UK Energy Statistics (DUKES) reports) :-

Now, in the future, with an envisioned massive rise in renewable energy, higher electricity use would be reasonable, as long as other energy consumption reduced. But the growth in electricity consumption charted here is not people driving more electric cars or using electric heating instead of Natural Gas-fired comfort. This is higher consumption, pure and simple, not “energy switching” over to electricity.

As an aside – the sum total of these figures indicates that the nation as a whole is not engaged in significant energy conservation, despite decades of campaigning.

All these trends add up to a very slight loss in dependency on fossil fuels for the UK’s energy :-

This is the critical trend. North Sea oil and Natural Gas production is falling like a large rock, and no amount of technological advancement and re-stimulating the drilling sector is turning this around. This means that without a rapid decrease in fossil fuel dependency, the United Kingdom is going to start haemorrhaging wealth.

Goodbye, First World.

This is why is it essential to ramp up renewable energy deployment by whatever means at our disposal.

Greg Barker MP bleating about keeping to budgets is not helping.

Carbon Detox 2012

PRESS RELEASE Carbon Detox 2012 : Shed Unwanted Pounds With Our Unique Formulation George Marshall, well-known sustainable living guru, will be asking us to challenge ourselves, our routines and bad habits, and make a 2012 all-year resolution to shed the excess carbon from our lives. On 21st January 2012 at a convenient central London location, he will ask us to take action to get control of our personal energy, and add vitality to our lives with new aims and goals.

The aim of the event is to help us acquire the psychological tools we need to lead slimmer, healthier and more ethically satisfying lifestyles. Speaking from the experience gained from his decades of research and practice in the field, and giving tips and tricks from his bestseller “Carbon Detox“, George will be guiding us expertly through the carbon counting maze. One of our leaner life activities group said : “Cutting down has been hard work, but has become much more fun now I am involved in my local group. I am looking forward to meeting my buddies on Saturday.” Tony Emerson, the coordinator for the ecocell 2 programme said : “In three years our household has managed to halve the amount of greenhouse gases we produce – by topping up loft insulation, converting to double glazing, installing a wood stove and learning how to best use it, new heavier curtains, wall insulation, changing to a green electricity supplier, continued monitoring of timings and temperature of the central heating – and of course taking part in the ecocell 2 programme. However we still have further to go and I am looking forward to hear what George Marshall has to say. One way we are encouraging people in ecocell 2 is to have a buddy system, whereby people pair up, or group up, by phone, so that people with similar houses can support each other.” To register for this free, all day event, including a selection of facilitated workshops and to receive your take-home worksheet pack, please email Tony at ecocell@christian-ecology.org.uk For photographs of the day’s events, and feedback from the workshops, please contact Jo on 0845 45 98 46 0 ENDS NOTES FOR EDITORS a. Climate change activist and author George Marshall will be addressing green Christians during an all-day conference on Saturday 21st January 2012 in Central London. b. The Christian Ecology Link ecocell project team will facilitate workshops on “living the truly sustainable life” at the Magdalen Centre, St Mary’s Church, Eversholt Street near Euston train station between 10.00 am and 5.00 pm [1] c. George Marshall, author of the easy-to-read book “Carbon Detox : Your step-by-step guide to getting real about climate change” will be offering his fact-packed and lighthearted insights into action on climate change, drawn from his experience of over a decade of community and policy work. [2] d. The event will be suitable for anybody already taking part in the ecocell project, or anybody interested in starting. The workshops on the day will be pitched at several levels. e. The ecocell-1 workshop group will look at the introductory programme to help your family or church group take their first steps to reducing their impact on the environment. [3] f. The ecocell-2 workshop will look at the more in-depth project, to provide mutual support for those who want to reduce their carbon emissions to sustainable levels within five years. [4] REFERENCES [1] The Magdalen Centre, St Mary’s Church, Eversholt Street, London NW1 1BN is located about 7 minutes’ walk north of Euston train station. [2] http://www.carbondetox.org/ [3] http://www.greenchristian.org.uk/ecocell http://www.greenchristian.org.uk/ecocell/ecocell-1 [4] http://www.greenchristian.org.uk/ecocell http://www.greenchristian.org.uk/ecocell/ecocell-2 http://www.greenchristian.org.uk/ecocell/ecocell2-materials [5] http://www.greenchristian.org.uk/archives/1537 http://www.christian-ecology.org.uk/ecocell-day-21-jan-2012.htm CONTACT For details of Christian Ecology Link, please phone Jo on 0845 45 98 46 0 or email info@christian-ecology.org.uk

Open Letter to Renewable Energy Deniers

To all Renewable Energy Deniers,

Things are getting so much better with renewable energy engineering and deployment – why do you continue to think it’s useless ?

We admit that, at the start, energy conversion efficiencies were low, wind turbine noise was significant, kit was expensive. Not now. Wind and solar farms have been built, data collected and research published. Design modifications have improved performance.

Modelling has helped integrate renewable energy into the grids. As renewable energy technologies have been deployed at scale, and improvements and adjustments have been made, and electricity grid networks have adapted to respond to the variable nature of the wind and the sunshine, we know, and we can show you, that renewable energy is working.

It’s not really clear what motivates you to dismiss renewable energy. Maybe it’s because you’re instinctively opposed to anything that looks like it comes from an “envionmentalist” perspective.

Maybe because renewable energy is mandated to mitigate against climate change, and you have a persistent view that climate change is a hoax. Why you mistrust the science on global warming when you accept the science on everything else is a continuing mystery to me.

But if that’s where you’re coming from when you scorn developments in renewable energy, you’re making a vital mistake. You see, renewable energy is sustainable energy. Despite any collapse in the globalised economy, or disruption to fossil fuel production, wind turbines will keep spinning, and solar panels will keep glowing.

Climate change has been hard to communicate effectively – it’s a huge volume of research, it frequently appears esoteric, or vague, or written by boffins with their heads in the clouds. Some very intelligent people are still not sure about the finer points of the effects of global warming, and so you’re keeping good company if you reserve judgement on some of the more fringe research.

But attacking renewable energy is your final stand. With evidence from the engineering, it is rapidly becoming clear that renewable energy works. The facts are proving you wrong.

And when people realise you’re wrong about renewable energy, they’ll never believe you again. They won’t listen to you when you express doubts about climate change, because you deny the facts of renewable energy.

Those poor fools who have been duped into thinking they are acting on behalf of the environment to campaign against wind farms ! Wind energy will be part of the backbone of the energy grids of the future.

We don’t want and we can’t afford the concrete bunkers of deadly radioactive kettles and their nasty waste. We don’t want and we can’t afford the slag heaps, dirty air and melting Arctic that comes from burning coal for power. We don’t want and we can’t afford to keep oil and Natural Gas producing countries sweet – or wage war against them to keep the taps open.

Instead we want tall and graceful spinners, their gentle arms waving electricity from the breeze. We want silent and dark photovoltaic cladding on every roof.

Burning things should only be done to cover for intermittency in wind and sunshine. Combustion is very inefficient, yet you support combustion when you oppose renewable energy.

We must fight waste in energy, and the rising cost of energy, and yet you don’t support the energy resources where there is no charge for fuel. Some would say that’s curmudgeonly.

When you oppose renewable energy, what is it you’re fighting for ? The old, inefficient and poisonous behemoths of coal hell ? We who support renewable, sustainable energy, we exchange clunky for sleek, toxic for clean. We provide light and comfort to all, rich and poor.

When you oppose renewable energy, you are being unbelievably gullible – you have swallowed an argument that can ruin our economy, by locking us into dependency on energy imports. You are passing up the chance to break our political obedience to other countries, all because wind turbines clutter up your panoramic view when you’re on holiday.

You can question the net energy gain from wind power, but the evidence shows you to be incorrect.

If you criticise the amount of investment and subsidy going into renewable energy, you clearly haven’t understood the net effect of incentivisation in new technology deployment.

Renewable energy has a positive Net Present Value. Wind turbines and solar panels are genuine assets, unlike the liabilities that are coal-fired power stations and nuclear reactors.

Renewable energy deployment will create meaningful, sustainable employment and is already creating wealth, not only in financial terms, but in social welfare terms too.

Renewable energy will save this country, so why do you knock it ?

Quizzically yours,

Biomassacre : Agrofuels Aggro

Eco-Socialism #1 : Public Service, Private Profit

Public infrastructure and utilities are the skeleton of the national economy; the spokes of the wheel; the walls of the house.

Private corporations can in many cases put muscle on the body, a tyre on the bike, and furnish the rooms, but without the basic public provision, private enterprise cannot thrive.

Without taxes being raised – asking everybody for their appropriate contribution – there would be no guaranteed health service, education system, roads, water supplies, power networks.

Federal or central government spending is essential, and often goes without question or inspection – including subsidies, cheap government loans, tax breaks and even rule-bending and regulatory exemption for specific sectors of the economy. This policy lenience also applies to private companies that take on the provision of public utilities.

This explicit, but often glossed-over, support for public services means that private business can rely on this national infrastructure. Small businesses can rely on a power supply and waste disposal services, for example. Large businesses can rely on a functioning postal service and road network.

It is questionable whether for-profit enterprise would be able to survive without the basic taxation-funded provision of public services and utilities.

I can understand why governments feel the need to get public spending off the balance sheet, and outsource public utilities to the private sector.

There is a lingering belief that private enterprise makes public services more efficient; makes manufacturing more reliable; makes construction better quality.

In some cases, this belief in privatisation is justified. Where companies can genuinely compete with each other, there can be efficiencies at scale. However, the success of privatisation is not universal.

Many parts of a developed economy are monolithic – there is no real competition possible. You get electricity through your power socket from a variety of production companies – you cannot choose. The road between your house and your office is always the same road – you don’t choose between different tarmac suppliers. Your local hospital is your local hospital, regardless of who owns and runs it – you have no choice about who that is – and the government contract tendering process is not something open to a public vote.

Added to this lack of competition, in some cases, it is impossible to make a profit by operating a public service by a private concern.

There should be no rock under which private business can hide when it claims to be operating profitable train and bus services – without public subsidies, public transport cannot be run at a profit.

Liability for daily operations may have been outsourced to the British private train companies, but not the full cost of the services. Costs for locally-sourced services cannot be driven down because they cannot be made fully open to global competition.

By contrast, the globalisation of labour has been making manufacturing industry significantly cheaper for decades.

In order for globalised trade to work, finance has to be liberated from its nation-bound shackles, and so along with the globalisation of labour to nations where it’s cheapest, there has been the globalisation of finance, to the tax regimes less punitive.

The globalisation of trade is a two-way bargain between those that want to see the development of primitive economies and those who want to create wealth for their companies and their shareholders.

Globalisation has created a booming China, for example, and filled the pockets of any Western company that imports from China.

However, the tide of globalisation has reached the shore, and the power of the waves is being stilled by solid earth realities. Labour costs in previously under-developed economies are starting to rise significantly, as those economies start to operate internal markets as well as maintain export-led growth.

It could soon be cheaper to have manufacturing labour in the United States of America than China. But when that happens a curious problem will arise. Manufacturing industry has been closed down in the so-called industrialised countries – as companies have taken their factories to the places with the cheapest labour and the most lax tax.

Wealth creation potential in developed countries has been destroyed. And it is for this reason that Western governments feel the urgent need to privatise everything, because their economies are collapsing internally, and public budgets may no longer be able to sustain current government spending.

However, privatisation doesn’t work for everything. It doesn’t work for health, education, water, public transport. The European Common Agricultural Policy (CAP) is a vehicle to compensate for agricultural sectors than cannot make a profit. I would contend privatisation doesn’t work for the energy supply and distribution sector either – but for a special reason.

Normally, it is possible to run energy stations at a profit. The privatised sector inherited power stations and grid networks that were fully functioning, and the sales of power and Natural Gas were almost pure profit.

However, much energy plant needs to be lifecycled after decades of use – replacements are in order, and this demands heavy public investment, in the form of subsidies, or pricing controls, or tax breaks or some such financial aid, in order to avoid crippling the private companies.

Like the rail network, there is direct public investment in the power grids. This is to support new access for new energy plant. However, I think this doesn’t go far enough. I would argue that much more public tax-and-spend is required in the energy sector.

In future, most electricity generation needs to become low carbon and indigenous. The primary reason for this is the volatility of the globalised economy – it will no longer be possible to assume that imports of coal, Natural Gas and oil for power station combustion can be afforded – especially in economies like the United Kingdom, where much wealth creation has been destroyed by de-industrialisation.

It used to be easy to ignore this – as the North Sea was so productive in oil and Natural Gas that the UK was a net energy exporter. This is no longer the case.

To avoid the risk of national impoverishment, energy independence is dictated, spelled out by a deflating British economy and by the depleting North Sea reserves.

The easiest and fastest way to a power supply that is low carbon is by healthy investment in wind power and solar power. Yet with the turbulence in the global economy, spending on renewable energy has also been rocky.

Now is the time for the UK Government to stop tickling corporate underbellies to get them to invest in British energy, and to start collected tax revenues to spend explicitly on the energy revival.

It can be “matched” funding – the Renewables Obligation, for example, has drawn in massive levels of private investment into wind power. And the feed-in tariff scheme for solar photovoltaics had, until recently, been pulling in high levels of personal individual and private company investment.

This is the kind of public-private financing that works – create a slightly tilted playing field to tip the flow of money towards new energy investment, and watch the river flow.

Without public money ploughed into public infrastructure in non-profitable areas such as public transport and energy, private enterprise will not be able to make a contribution – they would quickly bankrupt themselves.

The result of capping public subsidies for renewable energy is a halt to renewable energy deployment. Those who resist wind farms are in effect destroying the country. Those who cap public subsidies for solar power want to break the nation.

We need socalist financing of new energy technology deployment, for the future wealth of our country.

Whittling away at energy consumption

Throughout 2011, I changed a number of things in my domestic arrangements in order to reduce energy consumption at home. I have been working with an ecocell small study and action group in North London – each member of whom has an interesting story to tell of their own eco-pilgrimage. What I found was that in order to make progress I needed to measure more things and be more organised. I also needed to acquire more equipment.

This is rather ironic, since there are embedded emissions in all manufactured products. However, with careful use and maintenance, they should last a long time. The daily electricity and gas consumption I was personally responsible for at home dropped fairly significantly (approximate figures) :- Natural Gas use per day (Btu) Electricity use per day (kWh) January 2011 5.00 3.00 February 2011 4.21 2.94 March 2011 3.65 3.15 April 2011 1.93 3.11 May 2011 1.69 2.98 June 2011 1.60 2.95 July 2011 1.42 2.84 August 2011 1.26 2.82 September 2011 1.14 2.81 October 2011 1.04 2.76 November 2011 1.07 2.84 December 2011 1.18 2.83 Based on the average of the monthly daily averages, I should have consumed 766 Btu (8,094 kWh) of Natural Gas over the whole year, and 1,065 kWh of electricity for 2011. However, due to dropping demand, I actually used only 433 Btu (4,572 kWh) of Natural Gas and 1,034 kWh of electricity. This compares to Ofgem’s analysis of medium household consumption figures of 16,500 kWh of Natural Gas and 3,300 kWh of electricity. This puts my consumption at 28% of the medium in Natural Gas and 31% in electricity. It’s going to be hard to reduce both of these figures. I came up with a number of personal solutions for reducing space heating in 2011, which enabled the use of Natural Gas to drop. I had already come up with a number of changes in power consumption in 2010, which explains why the electricity use did not drop so fast or so far in 2011. However, I’m still working on cutting my domestic power consumption. One of those ways is trying to adopt a more vegetarian diet. You see, when you eat vegan or virtually vegan, you don’t need so much refrigeration. Frequently over the last year the only things in the fridge have been milk, spread, yoghurt and green vegetables (plus a couple of half-used jars of pesto or mayonnaise, the regulation bottle of lemon juice and a jar of Marmite). The freezer has been off for months. So I thought to myself, after checking the power consumption of the fridge – does the house need a smaller fridge ? I mean, the large fridge is useful when there are guests or someone throws a party, but it’s not fully used all the time. I could keep the green vegetables in the coldest, unheated room of the house, and buy fresh more regularly. What if I get hold of a mini fridge to use on a day-to-day basis ? And so, into my life has come the Mobicool W35. Technically, it’s not a refrigerator – it’s a “cooler box”. A thermolectric one. And despite the E energy rating on the packaging – at 290 kWh a year, it will have less than half the power consumption of the Big Fridge. Plus, since I don’t need to run it all the time, I can cut power use further by only having it on 18 hours a day (or less, as dictated by the weather), controlled by a timer. The next adaptations to my energy use will entail significant expense. Here are some options :- a. Upgrading the windows b. Installing a biomass burner (and optionally a boiler) c. Cladding the external walls I will need to save up to replace the windows completely, so I am looking for intermediate solutions. For the biomass option, I have found a tree surgeon in North East London with whom a win-win arrangement could be developed – with me offering to take unseasoned wood from the loads of sawn waste that otherwise would cost money to dispose of. In the meantime, I need to address draughtproofing. The sudden cold spell has shown me that there are still opportunities in this regard.

2012 : Greenier and Peace-ier

My dear family. They think I’m an environmentalist, a bit radical, a bit confrontational. So for a fun wintertime gift they bought me this lovely cloth tote(m) bag for grocery shopping. I think I might have failed to communicate myself clearly enough. Although I try to be frugal and efficient in my way of life, recycling is not my central agenda.

I studied physics, but I don’t have a laboratory. The things that I believe need to be developed are technologies in the field of clean, green energy. I am an engineer without a workshop – although my home is now a power station. Recycling is important, but reducing the use of resource materials is far more important. Recycling is important, but energy waste is far more important. Digging things out of the ground and burning them in order to keep civilisation moving is the ultimate misuse of natural resources. Recycling is important, but so are international relations, especially around the sourcing of commodities such as fossil fuels, rare metals, timber and freshwater. The world needs to work together – to make friends, not invent enemies – even more so when those so-called opponents sit on vital energy resources. May you have a year that is greener and has more peace.

Dances With Energy Bills

Tom Heap : Panoramic Nonsensity

Date: 9 November 2011
From: tim b
To: jo abbess

Hi Jo,

Just picked up on your blog following leads on Tom Heap – I’m writing a piece for my website (www.biggreenbang.co.uk) on the panorama / KPMG saga – just wanted to say what a great blog it is~!! Don’t find so many to-the-point sites in the UK – have picked up on guys like Joe Romm in the States but you seem to have your finger right on the pulse in the UK!

…Should explain that my site has been initiated by a load of IT techie nerds who are already working in telecoms and are about to launch a zero carbon mobile phone company (by a combination of using low carbon technology, buying into renewable power and carbon offsetting) They are committed to putting part of their profits into green projects and are setting up BGB in the hopes that it will be a vehicle for making sustainability issues available to a wider public – they have ambitions to develop it as a community resource too – They obviously hope to get spin-off business for their mobile phone network but I believe their motives are genuinely good and they seem to be giving me a fairly free rein!

look forward to hearing from you

=x=x=x=x=x=x=x=x=x=x=x=x=x=x=x=x=x=x=x=

Date: 10 November 2011
From: jo abbess
To: tim b

Hi Tim,

Good luck with the Panorama research.

Another person to follow on this is Christian Hunt at Carbon Brief :-

http://www.carbonbrief.org/blog/2011/11/looking-into-panoramas-sources
http://www.carbonbrief.org/blog/2011/11/kpmg-not-sure-if-written-report
http://www.carbonbrief.org/blog/2011/11/another-correction-from-the-mail-group-on-energy-bills

…Keep the green flag flying !

Read the rest of this entry »

The European Union Question

David Cameron was on one screen, and CBeebies was on another. I was on the treadmill at the gym, interval training, pacing at the same rhythm as the blaring RnB, and reading the teletext translation of the Parliamentary debate. I smiled at Ed Miliband’s nasally-charged bluster. I rolled my eyes at the interventions from the Conservative dinosaurs. The Tories are the living example of the Bad Apple Theory, I thought to myself. One bad apple, or in their case, a clutch of Eurosceptics, spoils the crop.

The Conservative Party of the United Kingdom harbours a number of corporatists and the stooge friends of corporatists, and this is their basic argument – deregulate and private companies will be more productive and save the economy from implosion. It’s the same argument that nursed the financial services market that went ahead and created derivatives of risk, and produced toxic credit progeny in abundance and caused the collapse of the banks which caused the current economic doldrums. Great job ! We’ve got the Coalition Government’s Red Tape (Cutting Of) initiative in full-swing, as well as the Eurosceptics. Their argument is – the European Union is a hyperquagmire and over-regulates and stifles business and innovation, so the United Kingdom should secede. What they fail to acknowledge is that European Union legislation and regulation have created excellent conditions for trade, unifying the standards of production across the Common Market, and drawing on skillsets and technologies from across the region, has advanced productivity and standards of living for all. Read the rest of this entry »

The Problem of Powerlessness #2

BBC : Craven Power Muddle

Energy Poll #6 : Natural Gas

Results from Question 2 : Are you concerned that Natural Gas may be getting harder to find ?


For the Energy Matrix survey “Are We Ready for Energy Change ?” click here.

Energy Poll #2 : Prices

Results from Question 5 : Do you think that energy can be kept affordable ?


For the Energy Matrix survey “Are We Ready for Energy Change ?” click here.

Flashback 2008 : Who Pays for the Re-Powering ?

2nd November 2008

Browsing at a newsagent on a mainline railway station…

The question on the front cover of Fortune magazine, Europe edition Number 20, November 2008, already on the stands is “Who Pays for The Bailout ? You do, of course”. Of course, as this Credit Crunch means Bailout argument plays out, the issue of Energy and Climate Change is lost. But the question should be all about how to create a new green economy. Who pays for the re-powering ?

A sign of the greening times – another story teaser on the Fortune magazine advises “10 Green Stocks to Own Now”, and the front of the Independent on Sunday quotes Obama claiming that Energy is his “number one priority” in his bid for presidential election, with his “Apollo” project :-

“Obama’s green jobs revolution : Democrat will lead effort to curb world’s dependence on oil; Plans to create five million new posts in clean energy projects : By Geoffrey Lean in San Francisco and Leonard Doyle in Washington : Sunday, 2 November 2008 : Obama has pledged to create five million new ‘green collar jobs’ if elected : Barack Obama is promising a $150 billion “Apollo project” to bring jobs and energy security to the US through a new alternative energy economy, if his final push for votes brings victory in the presidential election on Tuesday. “That’s going to be my number one priority when I get into office,” Mr Obama has said of his “green recovery” plans. Making his arguments in a radio address yesterday, the Democratic favourite promised: “If you give me your vote on Tuesday, we won’t just win this election. Together, we will change this country and change the world.”…”

Meanwhile…Gordon Brown and Ed Miliband (and Peter Mandelson) get off the plane in Saudi and beg for investment into green energy in the UK :-

“Gulf petrodollars help UK go green : Brown calls for Saudis to give more cash to IMF : Gaby Hinsliff, political editor : The Observer, Sunday 2 November 2008 : The fight against climate change will get an unexpected boost today from oil-rich Gulf states which will pledge to invest some of their petrodollar profits in British green energy projects. The surging oil price over the past year has left parts of the Middle East awash with cash as the rest of the world is squeezed by the credit crunch, making Arab royals some of the few active investors worldwide. The Gulf states have enjoyed a $1.4 trillion windfall from higher oil prices since 2003. Ed Miliband, the Climate Change Secretary, arrived in Saudi Arabia yesterday with Gordon Brown at the start of a tour of the region. He said some of that cash would now ‘help our firms reap the rewards from going low carbon and providing green energy to thousands of families’ under a so-called ‘green Gulf deal’ to be announced today…”

But that’s not the real reason why they are there. Ostensibly, the delegation’s serious business is about asking Saudi and other Arab oil states to contribute more towards the International Monetary Fund :-

“Gordon Brown in the Middle East : Brown hopeful of Saudi cash for IMF : Allegra Stratton in Riyadh, guardian.co.uk, Sunday 2 November 2008 15.30 GMT : Gordon Brown said today he was hopeful of success in his attempts to persuade dollar-rich Gulf states to prop up ailing national economies through a massive injection of capital into the International Monetary Fund (IMF). The prime minister spent three hours in one-to-one talks with Saudi Arabia’s King Abdullah, trying to persuade the monarch to invest in a revamped IMF. On the first leg of a four-day visit to the Middle East, and aiming to secure hundreds of billions of dollars for the fund, Brown called off a planned dinner with business leaders accompanying him so as to allow maximum negotiating time with the Saudi king. The IMF currently has around $250 billion in its emergency reserves but there are fears that, with Hungary, Iceland and Ukraine having already sought assistance and more nations expected to follow, the sum might not be sufficient. Brown hopes to persuade Gulf leaders to use some of the estimated $1 trillion they have made from high oil prices in the last few years to boost the reserves, indicating that he would like to see the current sum increased by “hundreds of billions” of dollars. The prime minister said following the talks that he was hopeful of having secured Saudi backing…”

But hang on, what’s this ? :-

“…Brown, who is accompanied by a high-level trade delegation seeking Gulf investment, including the CEOs of BP and Shell…”

What on earth are BP (formerly British Petroleum) and (Royal Dutch) Shell doing in a delegation to the Arab states begging for the IMF charity fund and green energy investment ? Is it that BP and Shell won’t pay for green energy and it’s too hard to ask the British people to pay extra tax, so they’re coming to the Arab countries for a green energy bail-in ? What is going on here ? If OPEC countries are all in the “Axis of Evil”, and no foreign oil and gas companies can get a toehold, why are BP and Shell in the government delegation to Saudi ?

Paying for new energy systems can be expensive. The European Union Emisssions Trading Scheme is saying they want 100% of carbon emissions auctioned by 2013 to pay for larger projects – Carbon Capture and Storage and new Nuclear Power. However, the costly deadweight “white elephant in the room” is not nuclear power, but dead wells.

Are they all talking about Peak Oil in the OPEC Gulf, and proposing business opportunities to the King of the House of Saud to offset the Middle East’s future total loss of business as the wells empty – offering them compensation in the form of green investment deals ? Asking the Saudis to join the green energy race now and get ahead ?

BP and Shell have benefited from the recent rise in the price of oil, profiting even as the oil price has hit millions and created impoverishment. But they’re going to have to spend a very large amount on exploration for new oil and gas from now on. So why is there still resistance to spending more on renewables ? Can BP and Shell ever be convinced to go green ? Would a barrel load of toxic news work ? No. BP and Shell can’t pay for green energy because they have to maintain the profits of their shareholders. Pensions are going to be bad enough without forcing major “British” oil companies to pay for such things as bioethanol, algae biodiesel, solar panels and wind farms.

Action to tackle climate change must be a “tight shadow” on Peak Oil and its fall – tighter than the 9.1% depletion of the largest wells projected by the International Energy Agency (IEA) To reverse the oil decline, and more so to take action on climate change, investment is required. Banks are becoming owned by oil-rich nations, but this is simply a natural outcome of poor financial regulation that led to the Credit Crunch. However, it doesn’t mean that the future will be oil and gas necessarily. This new layer of ownership of financial bodies is not significant, as it will not seriously impact the greening of energy, if people are serious about it.

What is of value here is not banking but energy itself, which underpins the entire economy. The scenario is this : Saudi Arabia will not admit in public that it’s going down because of “Peak Oil”. They would prefer to keep up the revenue, but they’re not “engineering” a reduction of supply. It’s reducing anyway.

From their perspective, allowing supplies to weaken, by not doing any new investment into raising production, would be protecting their reserves to sell in future. A good strategy – even more so as prices rise against losses of supply but strong demand (even despite the blooming recession).

I figure that what BP and Shell are doing in the Middle East is making the case to the major oil-producing states to keep on pumping.

I guess that what Gordon Brown is doing is making the Saudis an offer they can’t refuse – either the major western states will implement measures to control oil prices which would make OPEC lose revenue, or the Saudis can underwrite the global bailout.

This mission is not about green energy investment. It’s about keeping the oil flowing.

Selling Thorium to China

Kirk Sorensen, formerly of Teledyne Brown Engineering, now of Flibe Energy

To: Claverton Energy Research Group
From: Jo Abbess
Date: 24 June 2011
Subject: “Don’t believe the spin on thorium being a ‘greener’ nuclear option”‏

Hi Clavertonians,

As you are, I’m sure, aware, context is everything.

I was so sure we’d escaped the clutches of the “Thorium Activist Trolls” a few years ago, but no, here they are in resurgence again, and this time they’ve sucked in George Monbiot, Mark Lynas and Stephen Tinsdale, all apparently gullible enough to believe the newly resurrected Generation IV hype campaign.

They should have first done their research on the old Gen IV hype campaign that withered alongside the “Hemp will Save the World, No Really” campaign and the “Biodiesel will Save the World, AND You Can Make it at Home” brigade. Oh, and the Zero Point Energy people.

I was, I admit, quite encouraged by both the Hemp and Biodiesel drives, until I realised they were a deliberate distraction from the Big Picture – how to cope with the necessity of creating an integrated system of truly sustainable energy for the future.

Hemp and Biodiesel became Internet virally transmitted memes around the same time as the Thorium concept, but where did they come from ?

Where does the Thorium meme originate from this time round ? I found some people took to it at The Register, where they spin against Climate Change science a lot – watch the clipped video :-

http://www.theregister.co.uk/2011/02/01/china_thorium_bet/

I would suggest that there are connections between the Thorium campaign and the anti-Climate Change science campaign, and I have some evidence, but I’m too busy to research more in-depth just now, so I’m not going to write it all up yet.

The key issues with all energy options is TIME TO DELIVERY and SCALEABILITY, and I think the option presented by the Thorium fuel cycle fails on both counts.

Yeah, sure, some rich people can devote their life savings to it, and some Departments of Defense (yes, Americans) and their corporate hangers-on can try selling ANOTHER dud technology to China (which is the basis of some Internet energy memes in my view).

Remember Carbon Capture and Storage ? The British Government were very keen on making a Big Thing about CCS – in order to sell it to the miscreant Chinese because (WARNING : CHINA MYTH) China builds 2 !! coal-fired !! power stations a week/day/month !!

THORIUM – A Brief Analysis
TIME TO DELIVERY – 20 to 50 years
SCALEABILITY – unknown
USEFULNESS ASSESSMENT – virtually zero, although it could keep some people on the gravy train, and suck in some Chinese dough

The Tyndall Centre say that global emissions of greenhouse gases have to peak AT THE LATEST by 2020. We should be thinking about rolling out the technology WE ALREADY HAVE to meet that end.

Don’t believe the hype,

jo.

PS What other evidence do we have that the Thorium meme is most likely just a propaganda campaign ? Nick Griffin of the British National Party backs it, and the BNP are widely alleged to promote divisiveness…

The “red tape” challenge

So, I’m sitting in my local cafe at lunchtime talking to my local property developer-landlord. So, I ask him, do you think there will be worsening economic conditions this year ? And will there be more unemployment ?

He takes a pretty dismal line – things are becoming more and more squeezed – landlords are finding that their properties are unoccupied, or the rents are being forced downwards, and there is no spare finance capacity to do renovations, the banks won’t lend, and there’s no certainty of being able to sell properties if the business becomes uneconomic. He’s had to sack people he was formerly able to employ.

Read the rest of this entry »

Glimpsing the Future

Can we glimpse the future of energy ?

Ambient, sustainable energy is all around us, and sooner or
later we will find the ways to make use of it for the good of all.

The following is an appropriately edited transcript of a
conversation on the Claverton Energy Research Group
forum online, and was written by Nick Balmer, a consultant
in renewable energy.
__________________________________________________________

…The huge scale of the possible changes for all concerned is
causing all of the current Titans in the [energy] industry to deploy
the full force of the media [and their] PR [public relations] in an
attempt to manipulate the public and policy towards their own way
of thinking, or in such a way as to protect their own vested interests.

The great thing is that these issues are being aired out in the open,
and groups like [Claverton Energy Research Group forum] allow
people with knowledge of these affairs to debate these issues openly.

The big problem is that each of us has only a very detailed
understanding of some small fraction of the total issue.

Most of the public and government only has a very slight knowledge
of the total issue, and has had only limited access to ways to find out
in detail what is going on.

As Egypt is demonstrating today, everybody now has a voice and as
Wikileaks shows, sooner or later everything will come out into the
open.

All of us are struggling to come to terms with this explosion of
access to knowledge.

It is quite clear that lots of bubbles are being burst as a result of
the Global Financial implosion and the huge expansion in available
knowledge.

Just as banking and property has been shown to be an unaffordable
Ponzi scheme and to be vastly over-inflated, UK energy policy is now
coming under huge scrutiny.

We can now compare our energy systems with other countries.

Due to the huge geological accident of fate, since the 1700′s in coal,
and 1970′s in oil and gas, we have been extremely fortunate in being
able to live way beyond the lifestyle standards of most of the World.

We have not had to adapt.

Other countries that didn’t have this advantage had to change over
recent decades.

Places like Denmark, Austria, Germany [and so on] have made huge
changes because they had less energy from fossil resources.

Now we have reached the peak or crunch point, we find ourselves well
behind those countries that had to adapt earlier.

Everybody is concentrating on the Capital cost of deploying per
MW [megawatt] and overlooks the cost of fuels.

The cost of fuels over time is massively more important than the
CAPEX [capital expenditure on investment].

So even if windfarms cost 20 times per MW or GW [gigawatt] more to
build than nuclear or coal or gas, in the scheme of things,
[wind power] is always going to win, because the fuel is free and
unlimited for centuries to come.

Similarly [solar power technologies], or even more effective,
household insulation and cutting energy use.

And yet the media and government are blinded by the barrage of PR
and media from the energy vested interests who are working with
every muscle to stop this coming out into the open.

I often meet financiers in my work trying to promote and support AD
[anaerobic digestion of biological waste for the production of
renewable methane], biomass, solar and wind projects.

I am always struggling to prove to them that I have an offtake [return
on investment] and the fuel supply. This is often really hard to do
[but] I only have to do this for seven to 12 years to make my business
cases stack up.

I was really depressed at the end of one such presentation and
discussion, when one broadly sympathetic banker who had turned me
down said that he was having even worse problems with largescale
energy projects.

How do you predict the price and supply of coal forward for 25 years
or more ?

It has jumped 17% in recent months.

How do you prove that you are going to have offtake for huge power
stations in future years ?

Demand dropped 8% in 2009.

How do you raise the equity or debt for a billion [pound] project when
banks don’t want to lend more than £30 million each ? Imagine how
many banks that would take ?

We have reached a tipping point in our economy, sustainability and
future outlook.

Yes, the existing mega-power companies are fighting as hard as
Mubarak today to hold onto power, but they represent the past just
as surely as he does.

Those companies can rejuvenate themselves, unlike the Egyptian
President.

If they don’t, there are an increasingly large number of smaller and
more active players coming into the market.

The average household pays somewhere around £1,300 a year for
its heating and lighting.

The companies that come forward with a way to do that for £1,000 is
going to capture the market very quickly.

I have friends in Austria who only pay 65 Euros for services that I
pay £1,400 for.

They do this through insulation, triple glazing, solar and biomass energy.

Most [UK] households have less than £400 per year discretionary
disposable income. This prevents them making changes to their houses
they desperately want and know they need to make. This can
drop their energy demands hugely.

If somebody can unlock that Gordian Knot the benefits would be
enormous as there are something like 27 million households.

At a time when household debt is at an all-time high, incomes are
shrinking, and 40% live on ether government salaries, state
pensions or benefits.

Energy is a very high part of these households’ outgoings – if you
pay £1,300 a year and your house only brings in £11,000 to £20,000
per year.

A 50% increase in the £1,300 could bring great distress, and
possibly even civil unrest here.

The increases fossil power [companies] need to make their systems
bankable will increase energy bills. This will feed straight through into
government liabilities because 40% of us live on government payouts.

If government can drop the cost of heating and lighting quite easily
by £100 to £500 per household per year while at the same time
provide employment for hundreds of thousands of White Van men
cutting energy uses, doesn’t this make far more sense than building
unsustainable power stations that will have to be [bankrolled] by the
government, who will then have to buy back electricity at a price our
communities cannot stand ?

Project a similar calculation onto transport fuels and you get even
greater problems.

At $80 a barrel [of oil] industry is shrinking and relatively few
renewable fuel business cases work. At $100 a barrel most renewable
fuels can compete.

At $120 a barrel almost any alternative beats oil, and that is before
you start to look at issues like fuel security and the environment.

Although the battle is one of David and Goliath, or the Dinosaur and
those early mammals, between the new energy industries and the
existing vested energy industries, [it] has only one outcome.

It is only a matter of the co-lateral damage along the way.

Like Mubarak, it is clear they must go. Are they going to go
gracefully, or are they going to smash the place up first ?

Nick Balmer
Renewable Energy Consultant

Who Planned Pipeline Attack ?

[ UPDATE 3 : Israel has said it has already prepared for just such an Egyptian disruption scenario, and won't suffer from shortages of gas... http://www.jpost.com/MiddleEast/Article.aspx?id=206940 ]

[ UPDATE 2 : The Jerusalem Post says that it was reported that explosives were detonated at the terminal... http://www.jpost.com/MiddleEast/Article.aspx?id=206940. Why does the Jerusalem Post article contain a history of gas production in the region ? Part of the gas that comes through Egypt has come from Gazan wells http://www.joabbess.com/2010/08/01/natural-gaza-3/. If that supply fails, then countries round about will have to buy their gas from Israel's new wells... Israel will probably blame Iran for the Egyptian gas terminal explosion http://blogs.forbes.com/christopherhelman/2011/02/05/egypt-pipeline-explosion-cuts-gas-supply-to-israel/. Apparently the gas supply to Israel may not have been damaged http://www.bloomberg.com/news/2011-02-05/egypt-gas-pipeline-feeding-israel-explodes-in-sinai-desert-arabiya-says.html, but they've turned the taps off anyway, as a precautionary measure http://www.theglobeandmail.com/news/world/crisis-in-egypt/pipeline-blast-in-egypt-shuts-off-gas-flow-to-jordan-israel/article1895902/?cmpid=rss1 ]

[ UPDATE : We now learn it was not an attack after all... http://www.telegraph.co.uk/news/worldnews/africaandindianocean/egypt/8305962/Egypt-crisis-Sinai-explosion-blamed-on-gas-leak.html. Notice the propaganda - we are reminded in the video report that there may be dark fundamentalist forces at work, even whilst being told that this was not in fact the case.]

An unidentified group has taken advantage of all the turmoil in Egypt, gone undercover, and attacked a gas pipeline, which means that supplies to politically moderate Jordan (and the more hardline Syria) will be cut off.

Who planned this ? It’s probably too early to say, but I can think of several possible answers to the question, and none of them are pretty.

http://www.google.com/hostednews/afp/article/ALeqM5huw-ts1Q5jlhNQ2IOUlli6gjl5gw?docId=CNG.36fe9f8bbc762c3ed9f469e5f80934c5.8f1

“Saboteurs attack Egypt gas pipeline to Jordan”

http://af.reuters.com/article/investingNews/idAFJOE71407020110205

“Jordan gas supplies to be halted a week after blast”

http://online.wsj.com/article/SB10001424052748704843304576125510103424894.html

“Egypt Gas Pipeline Attacked”

http://edition.cnn.com/2011/WORLD/africa/02/05/egypt.pipeline/?hpt=T2

“Gas pipeline to Jordan, Syria set ablaze in Egypt…Unless the pipe is repaired quickly, it could become a big problem for Jordan, a country already spending heavily in fuel subsidies, a Jordanian senior official said….”

Fossil Fuel Aid

Video Credit : Peter Sinclair

Creating a level playing field for Renewable Energy by removing Fossil Fuel subsidies is an excellent idea, as mooted by the International Energy Agency :-

http://www.businessgreen.com/bg/news/1802530/iea-reveals-fossil-fuel-subsidies-usd550bn

“IEA reveals fossil fuel subsidies top $550bn : Report warns kick-backs for fossil fuels are skewing energy markets and holding back renewables investment : By Andrew Donoghue 08 June 2010 : The global fossil fuel industry currently enjoys subsidies worth more than $550bn (£382bn) a year, according to a major new report from the International Energy Agency (IEA) that will increase pressure on world leaders to phase out fossil fuel subsidies ahead of a crucial meeting of the G20 group of nations later this month. The research, which was released at a meeting of G20 finance ministers in Busan, South Korea over the weekend, reveals fossil fuel subsidies amounted to $557bn in 2008 – up from $342bn in 2007. Enormous subsidies are skewing energy markets and inhibiting the uptake of more sustainable energy sources, the IEA warned. “The IEA analysis highlights that the price signal from subsidy phase-out would provide an incentive to use energy more efficiently, and trigger switching from fossil fuels to other fuels that emit fewer GHGs,” the report said…”

http://www.bloomberg.com/news/2010-07-29/fossil-fuel-subsidies-are-12-times-support-for-renewables-study-shows.html

“Fossil Fuel Subsidies Are 12 Times Support for Renewables, Study Shows : By Alex Morales – 29 July 2010 : Global subsidies for fossil fuels dwarf support given to renewable energy sources such as wind and solar power and biofuels, Bloomberg New Energy Finance said. Governments last year gave $43 billion to $46 billion of support to renewable energy through tax credits, guaranteed electricity prices known as feed-in tariffs and alternative energy credits, the London-based research group said today in a statement. That compares with the $557 billion that the International Energy Agency last month said was spent to subsidize fossil fuels in 2008. “One of the reasons the clean energy sector is starved of funding is because mainstream investors worry that renewable energy only works with direct government support,” said Michael Liebreich, chief executive of New Energy Finance. “This analysis shows that the global direct subsidy for fossil fuels is around ten times the subsidy for renewables.”…”

Here are some relevant documents :-

http://www.iea.org/weo/docs/second_joint_report.pdf
http://www.worldenergyoutlook.org/docs/G20_Subsidy_Joint_Report.pdf
http://www.iea.org/papers/2002/reforming.pdf
http://www.iea.org/textbase/nppdf/free/1990/weo1999.pdf

Barack Obama and the G20 first made a serious call for the removal of Fossil Fuel subsidies back in 2009 :-

http://www.reuters.com/article/2009/09/26/us-g20-energy-idUSTRE58O18U20090926

“G20 agrees on phase-out of fossil fuel subsidies : 25 September 2009 : The world’s largest economies agreed on Friday to phase out subsidies for oil and other carbon dioxide-spewing fossil fuels in the “medium term” as part of efforts to combat global warming. But Group of 20 leaders at a two-day summit meeting here did not advance discussions about financial aid for developing nations dealing with climate change, exacerbating concerns that U.N. talks to form a new climate pact are in peril. Some $300 billion a year is spent worldwide to subsidize fuel prices, boosting demand in many nations by keeping prices artificially low and, thus, leading to more emissions. The agreement — backed by all of the G20 including Russia, India and China — was a victory for U.S. President Barack Obama, whose credentials for fighting climate change have been marred by dimming prospects that the U.S. Senate will pass a bill to reduce emissions before the December U.N. meeting…”

Seems like it’s a done deal…apart from an issue that should never be forgotten in all global negotiations : economic development.

India, for example, has a policy to keep down the price of diesel fuel – a strategy to promote economic development. They won’t be ready to cut subsidies :-

http://www.sify.com/news/diesel-subsidy-withdrawal-unaffordable-says-minister-news-national-lcesEkcgeee.html

“Diesel subsidy withdrawal unaffordable, says minister : 04 February 2011 : New Delhi: India cannot afford to withdraw the subsidy on diesel and it has to continue till poverty disappears from the country, union Minister for New and Renewable Energy Farooq Abdullah said on Friday. Speaking at the Delhi Sustainable Development Summit here, Abdullah said India gives a lot of subsidy on diesel and, if withdrawn, it will only increase inflation. ‘Diesel subsidy has to continue till poverty disappears from the country,’ he said while reacting to Canadian parliamentarian Stephane Dion’s appeal to phase out diesel subsidy…”

The Americans and the Europeans calling for an end to fossil fuel subsidies could be interpreted as a lever to block the economic development of the Global South – as much of the price-fixing is conducted by developing nations.

It could be argued that the United States and “her allies” want to retain economic dominance – what better way than blocking economic progress in the Global South and making it appear to be a Climate Change measure ?

In addition, much of the financial support for energy projects in the Global South is indirectly awarded to the fossil fuel industry via the international aid cash coming from developed nations and the international agencies. And the fossil fuel producers and engineering companies are not going to be willing to let that source of revenue dry up.

If international aid for energy projects gets stopped, so does a lot of economic development until “technology transfer” of Renewable Energy can be ramped up :-

http://www.timesonline.co.uk/tol/news/environment/article6836112.ece

http://www.guardian.co.uk/business/2010/apr/09/world-bank-criticised-over-power-station

Before they came to power in the United Kingdom, the Conservative Party were strongly behind the proposals to stop international development loans going on dirty energy projects :-

http://www.conservatives.com/News/Speeches/2009/11/…

“23 November 2009 : Andrew Mitchell: Ending Labour’s support for polluting energy projects : …we must end the use of the Export Credit Guarantee Department to promote ‘dirty’ fossil fuel power stations around the world, and instead make it a champion of green technology…”

http://www.businessgreen.com/bg/news/1803148/conservatives-pledge-stop-uk-fossil-fuel-subsidies

This promise has not been kept, according to the Jubilee Debt Campaign :-

http://www.jubileedebtcampaign.org.uk/…

“Lord Green told: Britain’s exports must stop harming people and planet : 24 January 2011 : New report details string of ‘dodgy deals’ at export support body : As new Trade Minister Stephen Green embarks on a national tour to promote British exports, Jubilee Debt Campaign warns that Britain’s export support body is not up to the job : A report released by the organisation today exposes a history of backing projects by large corporations in a handful of controversial sectors. The projects have led to human rights abuses, environmental destruction and corruption in the developing world, and often failed to deliver even on their stated aims. Britain’s export promotion body, the Export Credits Guarantee Department (ECGD), has also undermined Britain’s international development goals by leaving countries like Kenya, Vietnam, Indonesia and Pakistan with £2 billion of debts from failed export deals – 96% of Third World Debt ‘owed’ to the UK today…The Coalition government has failed to act on its pledge to end fossil fuel subsidies through the ECGD, despite taking action to beef up the Department’s role…”

The key global development question remains – is cutting fossil fuel subsidies yet another (underhand) way of reducing international aid budgets ?

To deflect criticism, the spotlight will probably be turned on countries like Iran :-

Image Credit : International Energy Agency

http://www.globe-net.com/articles/2010/june/8/getting-the-prices-right-cutting-subsidies-could-save-billions-.aspx?sub=12

“Getting the Prices Right – Cutting Subsidies Could Save Billions : 8 June 2010 : Global fossil fuel consumption subsidies in 2008 were much higher than previously estimated and totalled USD557 billion, according to IEA analysis…The IEA has undertaken an extensive survey to identify countries that offer subsidies that reduce prices of fossil fuels below levels that would prevail in an undistorted market, thus leading to higher levels of consumption than would occur in their absence. The survey identified 37 countries and it is estimated that these represent over 95% of global subsidized fossil‐fuel consumption…The IEA analysis has revealed that fossil fuel consumption subsidies amounted to $557 bn in 2008. This represents a big increase from $342 bn in 2007…Since 2008, a number of countries – including China, Russia, India and Indonesia – have made notable reforms to bring their domestic energy prices in line with world prices…The country with the highest subsidies in 2008 was Iran at $101 billion, or around a third of the country’s annual central budget. Chronic under‐pricing of domestic energy in Iran has resulted in enormous subsidies and a major burden on the economy that is forcing reliance on imports of refined products. Iran’s leadership came to agreement in 2010 on a sweeping plan for energy subsidy reform; however, steep economic, political and social hurdles will need to be overcome if Iran is to realize lasting reform…”

Obama says we have to drop fossil fuel subsidies. The next thing you know, the inaccuracies start flying :-

http://climateprogress.org/2011/02/04/manchin-coal-subsidies%E2%80%99/

“Manchin claims coal “doesn’t get a penny of subsidies” : In fact, the industry gets trillions of pennies : 4 February 2011 : Senator Joe Manchin (D-WV), the newest member of the Senate Energy and Natural Resources Committee, claimed today that the coal industry doesn’t receive any government subsidies, unlike every other form of energy. Brad Johnson debunks this absurd claim…”

Australia : Inundation Nation (2)

The key question tonight in Queensland is : how safe can we make the house before morning ?

The second key question that should tonight be asked in Queensland Australia is : are the damages from Climate Change likely to be more expensive than changing our energy sources to stop it ?

http://www.bbc.co.uk/news/world-asia-pacific-12294834

“27 January 2011 : Australia floods: PM Julia Gillard unveils new tax : Julia Gillard announces the details of the new tax : Australia’s Prime Minister Julia Gillard has announced a new tax to help pay for devastating floods that she says will cost A$5.6bn ($5.6bn; £3.5bn) in reconstruction. Ms Gillard said the 12-month tax, starting from 1 July, would be levied on those earning A$50,000 or more, and those affected by floods would not pay. “We should not put off to tomorrow what we are able to do today,” she said…”

http://www.smh.com.au/environment/weather/gillard-warms-to-permanent-disaster-fund-20110131-1ab4z.html

“Gillard warms to permanent disaster fund : Phillip Coorey : February 1, 2011 : THE Prime Minister, Julia Gillard, is prepared to entertain the idea of a permanent natural disaster fund if it helps win the support of key independents in both houses. But she is not prepared to bend on the details of her one-off $1.8 billion levy to help with flood reparations in Queensland. As negotiations began with independents yesterday before the legislation for the flood measures is tabled in Parliament next week, Ms Gillard would not rule out a permanent fund. ”We’re happy to have a conversation about the longer term,” she said. But the floods, she said, were ”an extraordinary circumstance which requires a response in the short term”…”

It’s not greed…

Image Credit : G. William Domhoff

In conversation yesterday evening somebody summarised the behaviour of banks and the energy industry as “greedy”, but I simply could not agree.

“It’s not greed”, I said, “most people are just trying to make a living.”

The corporations have an obligation to make profits for their shareholders, business managers have to be pragmatic, governments have to negotiate compromises and consumers are just looking to make the best use of their cash.

This is how we find ourselves locked into a vicious cycle of energy waste, through the production and use of cheap fossil fuels.

Fossil fuels are so cheap, nobody can spare the investment budget to make vehicles and power generation more efficient. Natural Gas is so relatively inexpensive that it’s cheaper to heat leaky homes than insulate them. Petroleum is so cheap (even with the rising global trade price and proposed increased taxes in the UK) that a high proportion of its energy value is wasted.

“It’s not greed,” I said, “look at who owns the wealth. The overwhelming proportion of people don’t have any control. They’re just trying to get by.”

To talk of “greed” anthropomorphises the machine of the economy, imbues it with a human emotion where it has none. To say that bankers are “greedy”, or that corporations and their Chief Executive Officers are “evil” entirely misses the point. Almost everybody is employed by somebody else, and has to follow instructions.

Even High Net Worth Individuals are under pressure to respond to their “electorates”, those who consume their intellectual property rights.

However, “just following orders” is no excuse to let people off the hook when it comes to carbon emissions, just like it is no excuse for war crimes.

But it’s not “greed”.

That would imply guilt, but guilt is not a lever that can be used successfully to correct excess carbon emissions.

Image Credit : Make Wealth History

Cancun Day #1 : “Tapestry of Compromise”

The United Nations have gathered in Cancun, Mexico, for the annual Climate Change negotiations. It’s only the first day, but already the talk is of compromise :-

http://www.ft.com/cms/s/0/ca6a3e58-fbe8-11df-b7e9-00144feab49a.html?ftcamp=rss#axzz16i2D3k1V

“Cancún hears call for ‘tapestry of compromise’ : By Fiona Harvey in London : November 29 2010 : Governments meeting to negotiate an agreement on global warming this week must learn to compromise, the UN’s top official on climate change said. Christiana Figueres told the opening meeting of the talks, being held in Cancún, Mexico, that only through giving up entrenched positions could countries at the talks hope to find common ground. “A tapestry with holes will not work,” she told officials from more than 180 countries. “The holes can only be filled with compromise.” … For the UN, therefore, Cancún is a test of its ability to carry forward the negotiations, which have been taking place for two decades. Officials are also hoping to make progress on vital issues – such as financial assistance for poor countries to cut their emissions and adapt to the effects of global warming – and a possible deal on preserving the world’s forests…”

Hmm. Let’s take a quick look at what these two highlighted proposals are :-

1. “…financial assistance for poor countries to cut their emissions…”

This is being worked up in a bunch of vehicles, including the initiative that David Cameron writes so emotionally about, the Capital Markets Climate Initiative :-

http://www.guardian.co.uk/commentisfree/2010/nov/28/david-cameron-climate-change-cancun

“Use the profit motive to fight climate change : The prime minister argues that there are huge gains to be made from a green economy : David Cameron, The Observer, Sunday 28 November 2010 : …I passionately believe that by recasting the argument for action on climate change away from the language of threats and punishments and into positive, profit-making terms, we can have a much wider impact. That’s why this government has set up the Capital Markets Climate Initiative – to help trigger a new wave of green investment in emerging economies and make the City of London the global capital of the fast-growing green investment sector…”

So, it’s not donations, or even grants or other forms of aid – it’s debt – debt that’s no longer possible to create in the Credit Crunched developed nations.

It’s probably not quite what Nicholas Stern was thinking of when he said that $100 billion needs to be made available to the Global South in the next decade for Adaptation to Climate Change.

It’s certainly not the redistribution of global wealth that the rightwingers fear from the great “eco-socialist conspiracy”.

It’s an attempt to shore up the corroding economies of the Global North by putting the Global South into further debt.

Score : 0 out of 20.

2. “…a possible deal on preserving the world’s forests…”

This is the policy proposal known as REDD – Reducing Emissions from Deforestation and Forest Degradation, which most people translate as meaning (a) cut down some of the forest for economic purposes in order to (b) protect the rest.

I mean, how likely is that to work ?

http://www.greenpeace.org.uk/tags/redd

Plus, it could become a vehicle to justify the continued existence of the oil and gas industry :-

http://www.guardian.co.uk/environment/2010/nov/28/redd-forest-protection-banks-oil

“Oil companies and banks will profit from UN forest protection scheme : Redd scheme designed to prevent deforestation but critics call it ‘privatisation’ of natural resources : John Vidal, environment editor, in Cancun, guardian.co.uk, Sunday 28 November 2010 : Some of the world’s largest oil, mining, car and gas corporations will make hundreds of millions of dollars from a UN-backed forest protection scheme, according to a new report from the Friends of the Earth International…”

Score : -40 out of a possible 20

With these kind of compromises on the table, do you think the Global South will be any more willing to sign onto any “Accord” any more than they were at Copenhagen ?

Unless and until corporate interests are removed from the United Nations Climate Change treaty, the world’s poorest, their habitats are our futures are being betrayed.

The New Climate Alliance

Green jobs, green energy, greening communities.

Forget Nigel Lawson and his struggle to keep the British energy system in the privatised 1980s by denying the realities of Climate Change.

The lords (and sadly, some of the ladies) of this land want to stay rich from their shares in fossil fuels and mining. They’ll say anything to protect the value of their holdings.

But where’s your new North Sea Oil and Gas, Nigel ? Do you want to bankrupt this country by forcing us to ramp up our imports of energy as the North Sea production falls away ?

The chief executives of the “traditional” energy companies of these islands are just trying to keep themselves in a job when they decry wind power, biogas, marine energy projects.

No, Vincent de Rivaz of EdF, we don’t want expensive, inflexible and toxic Nuclear Power. No, Dorothy Thompson of Drax, we don’t want dirty coal continuing to heat up the world, poison fish and raise coughing kids. No, Rupert Soames of Aggreko, we must maintain the Renewable Energy obligations we have agreed at the European level, and raise the bar even higher, to protect the economy going into an uncertain future, by having homegrown energy.

We need an energy evolution in this country.

And so, what is needed is a social movement – involving ordinary, working people, unions, communities, academics, trained professionals from the engineering trades, local political activists and faith communities.

This is the emergence of Green Power.

George Osborne : Stealth Carbon Tax

Carbon Tax.

You knew it was coming in the end.

But you never reckoned a Conservative (if Coalition) Government would do it.

Everybody knew that the Carbon Reduction Commitment was going to reduce some people to tears. Something so labyrinthine was never going to work. But now it appears that this New Labour “challenge” is going to morph into a Carbon Tax.

The basic idea behind the New Labour Carbon Reduction Commitment or CRC was to encourage medium-sized businesses to lower their Carbon Dioxide emissions.

Everybody was to fully disclose their emissions the first year, and then make a report on their emissions in the following years.

At the start, they were told they would be judged on a “league table” of performance. At the start of a measuring period they would pay into a common pot according to their emissions levels, and then if they performed better than other companies in reducing emissions, they would get money back out of the pot.

But George Osborne has just waved the “league table” magically away, it seems. All revenues from the CRC will be considered as public money.

OK, OK, so all firms using more than 6000 megawatthours of power a year would be forced to take part, and maybe large companies do need a negative incentive to seriously consider how to keep their electricity use down – they seem to waste a lot, after all.

But what about those companies and organisations that don’t qualify for the CRC because they are already part of the European Emissions Trading Scheme (EU ETS) ?

Any player that’s large enough to be under the EU ETS scheme gets their Carbon permits for free, and can trade them for cash if they use less than their entitlement.

OK, so in 2013 EU ETS Carbon permits will be under an auction scheme, but between now and then there is a huge disparity in the way that medium- and large-sized companies will be treated.

In ETS ? Free permits until 2013.
In CRC ? Obliged to pay a Carbon Tax.

http://www.reuters.com/article/idUS367283376220101021

“…John Alker, director of policy and communications at the UK Green Business Council, spoke for many across the low carbon economy when he said he was surprised by the decision. “The announcement that government is keeping the money from Carbon Reduction Commitment allowance sales has come out of the blue,” he said. “It may make the scheme simpler but this is something you’ve got to consult with industry on before plunging into.” Speaking to BusinessGreen.com, Climate Minister Greg Barker said the decision had not been taken lightly and had been made as a result of the ” catastrophic” deficit inherited from the labour government. He admitted that the changes would increase costs for businesses, but argued that the structure of the CRC meant that “progressive businesses that act to improve energy efficiency will be able to minimise their exposure”. Harry Manisty, environmental tax specialist at PwC, said businesses would effectively view the change as an additional tax, which may cause carbon price discrepancies with the EU emissions trading scheme…”

My guess is that this ploy is the opening salvo in a game of political ping pong that will ultimately destroy implementation of the CRC.

Already there have been wars and rumours of wars that people won’t play this particular emissions cutting game. For example, the start date of various parts of the scheme have been set back, and there are reports that organisations have over-assessed their Carbon Dioxide emissions now so they can look good later when they “cut” them.

George Osborne has served the first (wrecking) ball. What will the response of business be ?