Contracts for Difference Risks

The UK Government’s Electricity Market Reform (EMR) is a moving feast, or “trough”, if you are of the opinion that any state subsidy is a subsidy too far. My, how people complained and complained about the Renewables Obligation (RO), perhaps one of the world’s best stimuli for pushing forward wind power development. Yes, some rich engineering firms and rich landowners got richer on the back of the RO. What do you expect ? The wealthy always leverage their capital. But at least the RO has produced some exceptional wind power generation numbers. In the period 2017 to 2018 however, the RO is set to be staged down and replaced by several elements in the EMR, most notably, the CfD or Contracts for Difference, otherwise affectionately and quite inaccurately described as the FiT CfD – Feed-in Tariff Contracts for Difference.

The basic plan for the CfD is to guarantee to new electricity generators, or old generators building new plant, a definite price on power sold, in order to ensure they can get debt and equity invested in their projects. However, this is a huge state intervention and potentially entirely scuppers the efforts to create a market in electricity. More dangerously, although the CfD is supposed to encourage the freeing up of capital to support new energy investment, it might fail in that, at least in the short-term, and it may even fail to make capital cheaper. This is due to the new kinds of risk associated with the CfD – particularly because of the long lead time from auction to allocation, and the cap on allocations. The CfD is designed to create project failures, it seems.

I recently attended an event hosted at the Queen Elizabeth II Conference Centre in Westminster in London, called Energy4PowerLive 2014 and managed by GMP. The first session I attended was in the RenewablesLive 2014 stream, and featured a panel discussion between Andrew Buglass from Royal Bank of Scotland (RBS), Philip Bazin of Triodos and Steve Hunter, Investment Director of Low Carbon.

What follows is not verbatim, and is based on my handwritten notes, and my handwriting is appalling, so that sometimes, even I cannot read it.

[ Andrew Buglass, Managing Director and Head of Energy, Royal Bank of Scotland (RBS) : “Financing CfD projects – initial impressions from a lender” ]

[You may have an interest in the actions of] RBS [heckle from the audience, “We own it !”]. We built our first renewable energy project in 1991 – an onshore wind turbine. Now we [have helped] finance 9 gigawatts of renewable energy. I have 15 minutes – only possible to scratch the surface of CfDs [Contracts for Difference – a subsidy under the UK Government Department of Energy and Climate Change (DECC) Electricity Market Reform (EMR))]. The EMR journey has been a very long one – four years. We have offered advice to the government – about the bankability of the policy. DECC have a different policy perspective – they are going over here [in this direction] whether or not… [Their aim was to] encourage new sources of investment debt and equity, [currently] not here in the UK. […] Matt Hancock, new [energy] minister […] £115 [billion ?] […]. Half of £100 billion needed by end of decade. The EMR framework is [intended] to bring in new sources of debt and equity – its ability to track that into the market. I’m not going to review whether the EMR will be successful. It’s a “Nought to Sixty” question [reference to how quickly it takes for cars to accelerate], how quickly is capital going to be delivered [getting up and running]. There will be a big step up in terms of work […] how are different counterparties [countersigning parties in the CfD contracts] responding ? Now is the time to deliver on the [practical economics] for those to decide whether to invest or not. Need to engage the ratings agencies – getting debt from bond markets – to convince Standard and Poor etc to convince […] The first projects are going to take a long time – cutting their teeth. Cost, availability, terms of debt. The risks that will [come into play] :

A. OFFTAKE RISK – BASIS RISK
[At the start of the EMR discussions] we highlighted that small generators found it hard to get PPAS [Power Purchase Agreements]. With the CfDs “lender of last resort” “offtaker of last resort” […] may support less strong balance sheets for PPAs. Great – because we need a lot more liquidity in PPAs. [However] the basis risks on the strike price compared to the reference price – if this is [changed, different] – a concern about whether they might be matching in the middle [and so conferring no benefit to having arranged the CfD]].

B. WHOLESALE PRICE RISK
In offshore wind – wild – the economics of generating. In onshore wind power, the wholesale price has less of a way to fall [because of many years of learning and maturing of supply chains etc].

C. INDEX INFLATION RISK
The CfDs are to be linked to CPI [Consumer Price Index] rather than the RPI [Retail Price Index]. This may seem like a not very important difference – but at the moment you cannot hedge against the CPI. […] we recommend RPI – linked to lock in. Can’t do that with CPI.

D. FORCE MAJEURE RISK
[Risk] especially during construction. The CfD does not pick up during construction – need to see [how this pans out].

E. CHANGE IN LAW (CIL) RISK
Twenty pages of the CIL clause – doesn’t seem to give you much protection – what is a “foreseeable change in law” ? Unless you’re a big utility you will not have been tracking [policy and legislation] for the last ten years. Big risk ? In the RO [Renewables Obligation], CIL risk was set to the offtaker. Law firms are going to really agonise [over this in the CfD].

F. LIFETIME MANAGEMENT RISK
Risk relating to managing CfD contract during its lifetime. There is a risk from the termination of a CfD – more than in the RO. May need to do more work to keep lender involved to manage termination risk.

Leads to a gloomy approach – in banking paying back on time is good – anything else is bad.

The EMR has cross-party support, but this is the most interventionist approach since the CEGB (Central Electricity Generating Board market). The politicians are saying “no, no, we’d never change anything” – from three parties. It would help if there were a public statement on that (I get calls about “too many turbines”). Initial projects will probably take longer to start than [under] RO. Collectively fund pragmatic solutions.

[ Philip Bazin, Head Project Finance Team, Triodos Bank : “Financing CfD projects – initial impressions from a different bank” ]

Triodos was established in 1980, and started in the UK in 1995 with the acquisition of Mercury […] Our portfolio in the UK is still relatively small. Over a third of the £500 million is in renewable energy. Our investment […] basis of positive social and environmental outcomes. […] Core lending of £1 to £15 million finance […] construction […] and up to 15 years [on loan repayment]. Smaller developers – best fit. The bank is almost becoming part of the supply chain in the bidding process. Give a forward fixed rate of interest. We’ve had to think about how we provide this derivative. Discussions with PPA providers. Feeling that most a lot of new players. The whole rush around CfD was quite unhelpful. We haven’t been engaging with any bidders for this round [of CfDs]. Our customers are small generators or community groups. Smaller projects are risk-averse and would [probably] use the RO instead of the CfD [for now]. These markets are going to find this new structure [offputting]. Not ideal if you’re a professional investor. [Andrew has explained the risks well] The biggest one for me is the risk of failing to achieve your LONGSTOP DATE [failure to start electricity generation by an agreed date], which would risk a termination [of the CfD subsidy agreement. This would destroy the economics of the whole project and therefore the investment]. What protections do you have as a sub-contractor ? Another point is about wayleaves. [If you can’t get your wayleaves in time…] Fundamentally, the [CfD] mechanism is bankable. [However] in trying to fix a problem it [may] have created a total mess. Don’t know if more capital will be going into projects.

[ Steve Hunter, Investment Director, Low Carbon : “CfDs from an equity perspective” ]

[Our business is in] Solar PV, Onshore wind, CSP in the Mediterranean area. We get there when project developer is doing land deals. We have a cradle-to-grave perspective. Land planning and grid access are major risks [and the guarantee of biomass feedstock for a biomass project]. The WHOLESALE POWER PRICE RISK – someone needs to take it. Your view depends on your equity horizon. For us, the two big changes [from the RO] are the introduction of the ALLOCATION RISK and the removal of the power price risk. Don’t know the budget for allocation. Only know one month before the [CfD] auction ! The government has not released [a budget] for “emerging technology”. Timing : doesn’t really work for solar. The idea of CfD versus RO for solar will not work. [It’s all down to the project lifecycle] – you could be waiting 14 or 15 months for a CfD allocation after making a bid, but grid connection deals are now closing in [at around 12 months – if you do not take up your grid connection permission, you will lose it]. At the moment there is no competition between technologies. Is there enough CfD set aside for offshore wind projects ? Yes. If CfDs are intended to deliver technology-neutral [energy mix] – it doesn’t yet. The REFERENCE PRICES for me are the significant risk. This is entirely new for CfDs. Because the CfD intended to bring lower cost of capital – there is an implication for return [on investment] to the investor. Government will set [the reference prices]. Government just released [for some technologies] – decreased [in a forward period]. The Government may have a very different view on forward power prices… These reference prices come out of the air [there seems to be no basis for them]. When is final not final ? When it comes from DECC. If consider 2018/2019 September, the tightest budget, you could afford 1,000 MW of offshore, [if there is a change in the reference price] you could only afford 700 MW. In the TEC Register from National Grid – download this – there is 1,000 to 1,200 MG in the pipeline onshore. If I was a wind developer with [grid] connection dates after the end of the RO, you can bet I’ve already bid [for a CfD allocation] already. The political risk of changing the RO. May be a small amount of solar – but anyway it’s too expensive. If the CfD is only to support onshore wind power – is it achieving its goals ? There will almost certainly be some modification [to the CfD or the reference prices ?]. Transparency ? Oversupply ? [Oversight ?] of setting reference prices. Increase in frequency of the CfD auction would be helpful. Would give developers more time to bid. Technologies like solar PV that could deliver large savings… If no large solar is built… They could put a minimum in [for the subsidy allocated to each technology] – more positive. CfD represents long-term support. If the industry drives down the cost of renewable energy, CfD gives us an infill fix on revenue. It will give that certainty to get debt [and equity] in. It may be the support mechanism we need in the long-term. It could be the support mechanism we need for renewable energy…

European Referendum : Corpse Factory

So I was in a meeting on a dateless date, at an organisation with a nameless name, with some other unidentifiable people in the room with me. For some reason I had been invited, I cannot think why. Ah, yes, I can. I was invited to attend because, apparently, I am a “campaigner”. I am, allegedly, somebody who buys into the notion that communications should serve the purpose of directing public attention and support towards a particular outcome, decided in advance by a political elite. And it seems, if I believe something is right, and that a message needs communicating, I will take action, but never invoice, because I am a believer. Well let me tell you right here and now, I am not that person. I may have that reputation, but really, I despise propaganda : the deliberate formation of a murmur of Tweet starlings, or the collective wall-to-wall newspaper coverage of the same story, the scandal story hauled out to scare the horses and herd them to the salt water shore, the faux narrative of collective political or social will for change.

I want to believe that even though I am occasionally paid to communicate a story (but most often not), that my narrative, and importantly my agenda, is my own. I will not be co-opted. I shall not be defined by storytelling, I shall not be paid for spreading information – for if I were to be telling money-backed tales, I may end up peddling lies. And I do not want lies to be spoken. I am an ontologist. My ontology is :-

SO
IT IS
AS
IT IS.

and not

IT IS
AS
IT IS,
SO…

There is no “therefore” in what I write. When I say “should”, like, “we should adopt renewable energy”, it’s your choice as to whether you agree with me. You shouldn’t read anything and be swayed or directed, except by the force of reason based on evidence. I am the photographer, the recorder, but not the public relations consultant. And I am especially not an unsalaried volunteer. I paint the future using my own perspective, my own understanding, my own research, my own best judgement, but I am not telling people what to think. Although I go slightly beyond merely noting and analysing what is happening, to articulate possible futures, I am not a persuader.

I do not want to write the script for the actions of the readers or listeners. I do not want to precipitate a revolution, or dehydrate the horses before leading them to the river bank. I want to describe rather than proscribe or prescribe. I want to scribe the way I see things, I do not do it in order to create waves or push buttons or light beacons. The facts should speak for themselves, and if anybody consumes my communication, they should be free to act as they feel fit, or suits. I am not a paid-for, paid-up, in-the-pocket campaigner. I am not spun round other peoples’ fingers like a talking puppet. I am a free person.

So, there I was in this meeting, and the people in the room were discussing an event that is likely to take place. It appears from some analysis that the next British Government could well be another Coalition Government, with the Conservative Party having only a shaving of a majority for rule. And when they have crossed the i’s and dotted the t’s and formed a currently impossible political marriage, which I’m guessing will involve the Green Party as well as the Liberal Democrats, then they will need to live up to their promise to hold a referendum on British participation in the Grand European Experiment – economic union with other European countries.

But nobody talks about Europe. Except to complain. In the meeting I attended, the hosts of the meeting were consulting for ways to highlight the Europe Question, and to give it a pro-Union light.

For me, it’s facile. The United Kingdom of Great Britain and Northern Ireland is just a bunch of mediocre-sized islands off the coast of the European continent. Something like 80% of UK trade is with European countries, because Europe is our gateway to the rest of the global market, and you always do the most trade with your neighbours. It’s natural. Can anybody seriously suggest we ditch the Common Market – the agreements that European countries have come to to ensure common standards of goods and services, common terms and conditions of trade and common legal processes regulating trade ? So we want to reserve some kind of sovereignty over some kinds of decisions ? Why ? The UK is heavily involved in the central European institutions and governance bodies. We have massive input. We vote for MEPs. Why should things not go our way ? And even if things don’t go perfectly our way, will the negotiated compromises be so bad ? Subsidiarity – making decisions at the lowest/best/most appropriate level of administration – that’s still going to keep a lot of British control over British affairs. Surely the UK suffers a greater risk of interference from any pan-Atlantic trade deal that it does from Europe ?

The UK have made commitments. Our Parliament has agreed that we need to work on climate change, social justice and economic stability. We have implicitly agreed that to address climate change we need Energy Change and environmental regulation; to achieve social justice we need human rights, justice, health, education and a benefits system; and for economic stability we need economic stimuli – for example, in national infrastructure projects. In terms of climate change and Energy Change there is so much we need to do. If we stay in Europe, all of this will be so much easier. Within the European project for energy market harmonisation is the work on standards to achieve gas and electricity grid harmonisation. The improvement and augmenting of interconnections between countries, and the provision of wider energy storage, will enable the balanced use of renewable energy. Governments need to create incentives for deploying renewable energy. Governments need to create mechanisms to leverage and facilitate renewable energy deployment. Without Europe, outwith Europe, it will cost us more, and be more complex. Within Europe, it will be easier.

So, in the meeting I attended, I put forward my vision : if the UK stays in Europe, it will be easier to handle problems of energy – improving and replacing infrastructure and plant, co-ordinating the uptake of new renewable energy technologies and dealing with emerging energy security issues. Why, the North Sea, as everybody knows, is draining dry, and we can only build certain levels of relationship with countries outside the European Union, such as Russia. If the UK left the EU, the EU would be competitors with the UK for Russian Natural Gas, for example. I said I thought that energy security was a good thing to explain to people and a good reason to raise support for UK’s continued participation in Europe.

So, somebody else in the meeting, who shall remain faceless and nameless, poured very cold water on this idea. They seemed to disbelieve that the UK faces risks to energy security. Instead, they suggested that the pro-Europe argument should be based on how the UK can “keep our place at the table”. How out of touch can one get, I thought to myself ? This kind of patrician argument is not going to wash. Appealing to some non-existent pride in the UK’s continued role as stakeholder in the European project is going to go down like a lead balloon. It’s a vote loser, for sure.

What most people care about first is money. Their money. Any appeal to their pockets is going to help. We live in tough times – thanks to Government austerity policy – and we still cannot get a handle on public borrowing and spending. Because of the Government’s austerity policy.

So how about we cast it like this : your energy is going to get much more expensive if the UK abandons the European community of nations. Plus, your lights could genuinely go out, unless you, the people, either as taxpayers or billpayers, fork out for new energy investments that the energy companies haven’t made for 20 years. Because of privatisation. Without taking part in the European energy market harmonisation, and the European development of new and renewable energy infrastructure, plant and networks, your bills could significantly rise/spiral out of control. If European companies were required to sell energy assets back to the UK, because the UK pulled out of Europe, we would be in a very fine mess indeed. Do you really want this kind of chaos ? Energy policy in the UK is already bad enough.

The facts are available to those who search : British production of oil and gas from the North Sea is declining at something like 6% a year. The UK became a net energy importer between 2004 and 2006 (depending on how you define it). The Netherlands will become a net Natural Gas importer in the 2020s. Norway’s Natural Gas will reach a peak some time in the 2020s. It’s no good thinking that because the UK is a “gas hub”, and that British finance can currently spin up gas imports to the UK, that this situation is going to remain true. Within 10 to 15 years, I think that the UK will face significant competition for Natural Gas supplies with other European countries. Better to be in the debating chamber, surely, rather than scratching at the wind-and-rain-splattered window from outside ? So can the UK forge a gas alliance with countries outside the European Union, and apart from Norway ? A gas import alliance that sticks ? And that isn’t demolished by competition from the rest of the European Union for gas supplies that come through pipes sitting in European Union territory ? OK, the UK might want to leave full European Union membership, and join Norway in the European Economic Area, but will this guarantee beneficial import status for Natural Gas from countries that supply the full members of the European Community ?

I said, instead of trying to talk about direct opposites – either Inside Europe or Outside Europe – let’s talk about how things can be helped by wider co-operation. The European Union was founded on energy treaties – coal and nuclear energy (and steel), and now Europe needs to move to a union forged on renewable power and Natural Gas – and later Renewable Gas – and it’s going to be so much easier to do if the UK stays at the party.

The North Sea needs re-developing. Not for oil, but for wind power. This is going to happen best with full cross-border co-operation. Already, the UK has agreed to play a large part in the “North Sea Offshore Grid” wind power project in league with Ireland, Germany, Denmark, Sweden, The Netherlands, Belgium and France. And Luxembourg, strangely, although it doesn’t have a coast. Unlike new nuclear power, which could be decades in construction, offshore and onshore wind in Europe can be quick-build. If you want new power, you pick wind and solar. And, despite policy fumbles, this is happening. Actually, in the end, who really cares about subsidies for renewable energy, when the most capital-heavy organisations in the world start backing renewable power ? In some ways, I don’t care who brings me low carbon energy, and I don’t care if I have to pay for it through my tax or my bills, I just want it to happen. OK, offshore wind power is for the big boys, and you’re never going to get a diversity of suppliers with this project, and the dreams of decentralised energy are vapours, whisked away by giant engineering firms, but at least renewable energy is going to happen. One day people will realise that for the newspapers to rehearse the arguments of High Net Worth Individuals, and for sheep-like energy ministers to complain about onshore wind power and solar farms, is just a way to keep small electricity generators out of the energy markets, and allow the incumbent energy players to keep making profits. But when the need for a multiplicity of small energy installations becomes critical, I think this tune will change.

I can see all this. But, because I am not a spin meister, or spin meistress, or a campaigner, I’m not going to be crafting fine messages to share with my networks on this particular subject. I did start (see below), but then I thought better of it. I dislike the use of social media, web logging and journalism to push an agenda. The trouble is, I know that the people who are vehemently against the European endeavour have so many trigger arguments tested and ready to deploy, such as : immigration, regulations, budgetary demands. None of these stand up to scutiny, but they are very easy props on which to deploy Corpse Factory scares and scandals, up there with the War on Terror. The pro-European segment of the population always stays so silent. If there were to be a Referendum on Europe today, I can pretty much guarantee a kneejerk exit. The British public act collectively by reflex. They never re-analyse their position. They mob, gang and plunder.

I don’t think pro-Europe organisations know how to sell Europe. But they shouldn’t need to “sell” Europe. European membership should be an obvious best choice. So why should I try to talk up Europe ? I couldn’t have any influence, as one lone voice, against the Daily Mails, Daily Expresses and Daily Telegraphs of this world. And anyway, it’s not really my fight to fight. I don’t have a job title that reads “arch propagandist”. I am not that person. It does not become me. I prefer straight-talking, not mind-bending.

I won’t get invited back. That’s just fine. I am not a volunteer campaigner. I’m not a political pusher. I’ve only played the role of “evangelist” on climate change, renewable energy and good policy because sometimes there is little else I can think of that might help or make a difference. But I don’t have any influence. And I don’t want any. I am just going to continue telling it the way I see it. Giving my perspective. I cannot guarantee any outcomes. And anyway, I prefer democratic engagement over salesmanship. Don’t ask me to sell your ideas, your policies, your projections. I don’t want to.

Full membership of the European Union is the logical option for the United Kingdom, no matter how many tired dead donkey corpses the rabid tabloid media keep digging up to appall us all. Sooner or later, we also need to consider joining the Euro currency, and I predict we will, but I’m not your convincer on that argument, either.




“What has Europe ever done for us ?”

Common Climate : Common Cause : Common Market

On climate change, the United Kingdom has secured the Climate Change Act, legislation with broad-based support across all political parties. The UK shares the concerns of other European countries about the potential risks and impacts from climate change in our geographical region. Society-level change in response to climate change includes energy change – changing the sources and use of energy – and changing policies for land use to include planting forests and energy crops. Within the European Community, the UK has worked to secure region-wide legislation on renewable energy, energy efficiency, waste control and air quality. All of these contribute to the response to climate change, and have developed action on climate change into a common cause. In addition to regulatory change, the European Community is seeking to develop trading mechanisms to enable carbon dioxide emissions control, and it working to develop a common market in carbon.

Common Future : Common Purpose : Common Interest

Common Values : Common Opportunities : Common Voice

Common Security : Common Goals : Common Networks

Common Infrastructure : Common Society : Common Protection

Common Standards : Common Framework : Common Development

Positively Against Negative Campaigning

How to organise a political campaign around Climate Change : ask a group of well-fed, well-meaning, Guardian-reading, philanthropic do-gooders into the room to adopt the lowest common denominator action plan. Now, as a well-fed, well-meaning, Guardian-reading (well, sometimes), philanthropic do-gooder myself, I can expect to be invited to attend such meetings on a regular basis. And always, I find myself frustrated by the outcomes : the same insipid (but with well-designed artwork) calls to our publics and networks to support something with an email registration, a signed postcard, a fistful of dollars, a visit to a public meeting of no consequence, or a letter to our democratic representative. No output except maybe some numbers. Numbers to support a government decision, perhaps, or numbers to indicate what kind of messaging people need in future.

I mean, with the Fair Trade campaign, at least there was some kind of real outcome. Trade Justice advocates manned stall tables at churches, local venues, public events, and got money flowing to the international co-operatives, building up the trade, making the projects happen, providing schooling and health and aspirations in the target countries. But compare that to the Make Poverty History campaign which was largely run to support a vain top-level political attempt to garner international funding promises for social, health and economic development. Too big to succeed. No direct line between supporting the campaign and actually supporting the targets. Passing round the hat to developed, industrialised countries for a fund to support change in developing, over-exploited countries just isn’t going to work. Lord Nicholas Stern tried to ask for $100 billion a year by 2020 for Climate Change adaptation. This has skidded to a halt, as far as I know. The economic upheavals, don’t you know ?

And here we are again. The United Nations Framework Convention on Climate Change (UNFCCC), which launched the Intergovernmental Panel on Climate Change (IPCC) reports on climate change, oh, so, long, ago, through the person of its most charismatic and approachable Executive Secretary, Christiana Figueres, is calling for support for a global Climate Change treaty in 2015. Elements of this treaty, being drafted this year, will, no doubt, use the policy memes of the past – passing round the titfer begging for a couple of billion squid for poor, hungry people suffering from floods and droughts; proposing some kind of carbon pricing/taxing/trading scheme to conjure accounting bean solutions; trying to implement an agreement around parts per million by volume of atmospheric carbon dioxide; trying to divide the carbon cake between the rich and the poor.

Somehow, we believe, that being united around this proposed treaty, few of which have any control over the contents of, will bring us progress.

What can any of us do to really have input into the building of a viable future ? Christiana – for she is now known frequently only by her first name – has called for numbers – a measure of support for the United Nations process. She has also let it be known that if there is a substantial number of people who, with their organisations, take their investments out of fossil fuels, then this could contribute to the mood of the moment. Those who are advocating divestment are yet small in number, and I fear that they will continue to be marginal, partly because of the language that is being used.

First of all, there are the Carbon Disclosers. Their approach is to conjure a spectre of the “Carbon Bubble” – making a case that investments in carbon dioxide-rich enterprises could well end up being stranded by their assets, either because of wrong assumptions about viable remaining resources of fossil fuels, or because of wrong assumptions about the inability of governments to institute carbon pricing. Well, obviously, governments will find it hard to implement effective carbon pricing, because governments are in bed with the energy industry. Politically, governments need to keep big industry sweet. No surprise there. And it’s in everybody’s interests if Emperor Oil and Prince Regent Natural Gas are still wearing clothes. In the minds of the energy industry, we still have a good four decades of healthy fossil fuel assets. Royal Dutch Shell’s CEO can therefore confidently say at a public AGM that There Is No Carbon Bubble. The Carbon Discloser language is not working, it seems, as any kind of convincer, except to a small core of the concerned.

And then there are the Carbon Voices. These are the people reached by email campaigns who have no real idea how to do anything practical to affect change on carbon dioxide emissions, but they have been touched by the message of the risks of climate change and they want to be seen to be supporting action, although it’s not clear what action will, or indeed can, be taken. Well-designed brochures printed on stiff recycled paper with non-toxic inks will pour through their doors and Inboxes. Tick it. Send it back. Sign it. Send it on. Maybe even send some cash to support the campaign. This language is not achieving anything except guilt.

And then there are the Carbon Divestors. These are extremely small marginal voices who are taking a firm stand on where their organisations invest their capital. The language is utterly dated. The fossil fuel industry are evil, apparently, and investing in fossil fuels is immoral. It is negative campaigning, and I don’t think it stands a chance of making real change. It will not achieve its goal of being prophetic in nature – bearing witness to the future – because of the non-inclusive language. Carbon Voices reached by Carbon Divestor messages will in the main refuse to respond, I feel.

Political action on Climate Change, and by that I mean real action based on solid decisions, often taken by individuals or small groups, has so far been under-the-radar, under-the-counter, much like the Fair Trade campaign was until it burst forth into the glorious day of social acceptability and supermarket supply chains. You have the cyclists, the Transition Towners, the solar power enthusiasts. Yet to get real, significant, economic-scale transition, you need Energy Change – that is, a total transformation of the energy supply and use systems. It’s all very well for a small group of Methodist churches to pull their pension funds from investments in BP and Shell, but it’s another thing entirely to engage BP and Shell in an action plan to diversify out of petroleum oil and Natural Gas.

Here below are my email words in my feeble attempt to challenge the brain of Britain’s charitable campaigns on what exactly is intended for the rallying cry leading up to Paris 2015. I can pretty much guarantee you won’t like it – but you have to remember – I’m not breaking ranks, I’m trying to get beyond the Climate Change campaigning and lobbying that is currently in play, which I regard as ineffective. I don’t expect a miraculous breakthrough in communication, the least I can do is sow the seed of an alternative. I expect I could be dis-invited from the NGO party, but it doesn’t appear to be a really open forum, merely a token consultation to build up energy for a plan already decided. If so, there are probably more important things I could be doing with my time than wasting hours and hours and so much effort on somebody else’s insipid and vapid agenda.

I expect people might find that attitude upsetting. If so, you know, I still love you all, but you need to do better.


[…]

A lot of campaigning over the last 30 years has been very negative and divisive, and frequently ends in psychological stalemate. Those who are cast as the Bad Guys cannot respond to the campaigning because they cannot admit to their supporters/employees/shareholders that the campaigners are “right”. Joe Average cannot support a negative campaign as there is no apparent way to make change happen by being so oppositional, and because the ask is too difficult, impractical, insupportable. [Or there is simply too much confusion or cognitive dissonance.]

One of the things that was brought back from the […] working group breakout on […] to the plenary feedback session was that there should be some positive things about this campaign on future-appropriate investment. I think […] mentioned the obvious one of saying effectively “we are backing out of these investments in order to invest in things that are more in line with our values” – with the implicit encouragement for fossil fuel companies to demonstrate that they can be in line with our values and that they are moving towards that. There was some discussion that there are no bulk Good Guy investment funds, that people couldn’t move investments in bulk, although some said there are. […] mentioned Ethex.

Clearly fossil fuel production companies are going to find it hard to switch from oil and gas to renewable electricity, so that’s not a doable we can ask them for. Several large fossil fuel companies, such as BP, have tried doing wind and solar power, but they have either shuttered those business units, or not let them replace their fossil fuel activities.

[…] asked if the [divestment] campaign included a call for CCS – Carbon Capture and Storage – and […] referred to […] which showed where CCS is listed in a box on indicators of a “good” fossil fuel energy company.

I questioned whether the fossil fuel companies really want to do CCS – and that they have simply been waiting for government subsidies or demonstration funds to do it. (And anyway, you can’t do CCS on a car.)

I think I said in the meeting that fossil fuel producer companies can save themselves and save the planet by adopting Renewable Gas – so methods for Carbon Capture and Utilisation (CCU) or “carbon recycling”. Plus, they could be making low carbon gas by using biomass inputs. Most of the kit they need is already widely installed at petrorefineries. So – they get to keep producing gas and oil, but it’s renewably and sustainably sourced with low net carbon dioxide emissions. That could be turned into a positive, collaborative ask, I reckon, because we could all invest in that, the fossil fuel companies and their shareholders.

Anyway, I hope you did record something urging a call to positive action and positive engagement, because we need the co-operation of the fossil fuel companies to make appropriate levels of change to the energy system. Either that, or they go out of business and we face social turmoil.

If you don’t understand why this is relevant, that’s OK. If you don’t understand why a straight negative campaign is a turn-off to many people (including those in the fossil fuel industry), well, I could role play that with you. If you don’t understand what I’m talking about when I talk about Renewable Gas, come and talk to me about it again in 5 years, when it should be common knowledge. If you don’t understand why I am encouraging positive collaboration, when negative campaigning is so popular and marketable to your core segments, then I will resort to the definition of insanity – which is to keep doing the same things, expecting a different result.

I’m sick and tired of negative campaigning. Isn’t there a more productive thing to be doing ?

There are no enemies. There are no enemies. There are no enemies.

——-

As far as I understand the situation, both the […] and […] campaigns are negative. They don’t appear to offer any positive routes out of the problem that could engage the fossil fuel companies in taking up the baton of Energy Change. If that is indeed the main focus of […] and […] efforts, then I fear they will fail. Their work will simply be a repeat of the negative campaigning of the last 30 years – a small niche group will take up now-digital placards and deploy righteous, holy social media anger, and that will be all.

Since you understand this problem, then I would suggest you could spend more time and trouble helping them to see a new way. You are, after all, a communications expert. And so you know that even Adolf Hitler used positive, convening, gathering techniques of propaganda to create power – and reserved the negative campaigning for easily-marginalised vulnerable groups to pile the bile and blame on.

Have a nicer day,

—–

The important thing as far as I understand it is that the “campaigning” organisations need to offer well-researched alternatives, instead of just complaining about the way things are. And these well-researched alternatives should not just be the token sops flung at the NGOs and UN by the fossil fuel companies. What do I mean ?

Well, let’s take Carbon Capture and Storage (CCS). The injection of carbon dioxide into old oil and gas caverns was originally proposed for Enhanced Oil Recovery (EOR) – that is – getting more oil and gas out the ground by pumping gas down there – a bit like fracking, but with gas instead of liquid. The idea was that the expense of CCS would be compensated for by the new production of oil and gas – however, the CCS EOR effect has shown to be only temporary. So now the major oil and gas companies say they support carbon pricing (either by taxation or trading), to make CCS move forward. States and federations have given them money to do it. I think the evidence shows that carbon pricing cannot be implemented at a sufficiently high level to incentivise CCS, therefore CCS is a non-answer. Why has […] not investigated this ? CCS is a meme, but not necessarily part of the carbon dioxide solution. Not even the UNFCCC IPCC reports reckon that much CCS can be done before 2040. So, why does CCS appear in the […] criteria for a “good” fossil fuel company ? Because it’s sufficiently weak as a proposal, and sufficiently far enough ahead that the fossil fuel companies can claim they are “capture ready”, and in the Good Book, but in reality are doing nothing.

Non-starters don’t just appear from fossil fuel companies. From my point of view, another example of running at and latching on to things that cannot help was the support of the GDR – Greenhouse Development Rights, of which there has been severe critique in policy circles, but the NGOs just wrote it into their policy proposals without thinking about it. There is no way that the emissions budgets set out in the GDR policy could ever get put into practice. For a start, there is no real economic reason to divide the world into developing and developed nations (Kyoto [Protocol]’s Annex I and Annex II).

If you give me some links, I’m going to look over your […] and think about it.

I think that if a campaign really wants to get anywhere with fossil fuel companies, instead of being shunted into a siding, it needs to know properly what the zero carbon transition pathways really are. Unequal partners do not make for a productive engagement, I reckon.

—–

I’m sorry to say that this still appears to be negative campaigning – fossil fuel companies are “bad”; and we need to pull our money out of fossil fuel companies and put it in other “good” companies. Where’s the collective, co-operative effort undertaken with the fossil fuel companies ? What’s your proposal for helping to support them in evolving ? Do you know how they can technologically transition from using fossil fuels to non-fossil fuels ? And how are you communicating that with them ?

——

They call me the “Paradigm Buster”. I’m not sure if “the group” is open to even just peeking into that kind of approach, let alone “exploring” it. The action points on the corporate agenda could so easily slip back into the methods and styles of the past. Identify a suffering group. Build a theory of justice. Demand reparation. Make Poverty History clearly had its victims and its saviours. Climate change, in my view, requires a far different treatment. Polar bears cannot substitute for starving African children. And not even when climate change makes African children starve, can they inspire the kind of action that climate change demands. A boycott campaign without a genuine alternative will only touch a small demographic. Whatever “the group” agrees to do, I want it to succeed, but by rehashing the campaigning strategies and psychology of the past, I fear it will fail. Even by adopting the most recent thinking on change, such as Common Cause, [it] is not going to surmount the difficulties of trying to base calls to action on the basis of us-and-them thinking – polar thinking – the good guys versus the bad guys – the body politic David versus the fossil fuel company Goliath. By challenging this, I risk alienation, but I am bound to adhere to what I see as the truth. Climate change is not like any other disaster, aid or emergency campaign. You can’t just put your money in the [collecting tin] and pray the problem will go away with the help of the right agencies. Complaining about the “Carbon Bubble” and pulling your savings from fossil fuels is not going to re-orient the oil and gas companies. The routes to effective change require a much more comprehensive structure of actions. And far more engagement that agreeing to be a flag waver for whichever Government policy is on the table. I suppose it’s too much to ask to see some representation from the energy industry in “the group”, or at least […] leaders who still believe in the fossil fuel narratives, to take into account their agenda and their perspective, and a readiness to try positive collaborative change with all the relevant stakeholders ?


Christiana Figueres : Love Bug

It was probably a side-effect of the flu’, but as I was listening to Christiana Figueres speaking at St Paul’s Cathedral, London, this evening, I started to have tunnel vision, and the rest of the “hallowed halls” just melted away, and I felt she was speaking to me individually, woman to woman.

She talked a lot about investments, injustices and inertia, but I felt like she was personally calling me, nagging me, bugging me to show more love. She said she didn’t want us to leave thinking “That was interesting”, or even “That was inspiring”, but that we would leave resolved to do one more concrete thing to show our love for our world, and our fellow human beings.

I was a little defensive inside – I’m already trying to get some big stuff done – how could I do anything else that could be effective ? She said that we couldn’t ask people to do more if we weren’t prepared to do more ourselves. I wasn’t sure that any of the things she suggested I could try would have any impact, but I suppose I could try again to write to my MP Iain Duncan Smith – after all, Private Eye tells me he’s just hired a communications consultant, so he might be willing to communicate with me about climate change, perhaps.

Of her other suggestions, I have already selected investments that are low carbon, so there would be little point in writing to them about carbon-based “stranded assets”. My diet is very largely vegetarian; I buy food and provisions from co-operatives where I can; I don’t own a car; I’ve given up flying; I’ve installed solar electricity; my energy consumption is much lower than average; I buy secondhand; I reuse, repair, reclaim, recycle.

I don’t want to “campaign” on climate change – I don’t think that would be very loving. This should not be a public relations mission, it needs to be authentic and inclusive, so I don’t know what the best way is to engage more people in “the struggle”. I’ve sent enough email in my life. People already know about climate change, I don’t need to evangelise them. They already know some of the things they could do to mitigate their fossil fuel energy consumption, I don’t need to educate them. The organisations that are still pushing fossil fuels to society have more to do to get with the transition than everyday energy consumers, surely ?

So, how is it that this “love bug” bites me ? What do I feel bugged to be getting on with ? Researching low carbon gas energy systems is my main action at the moment, but what could I do that would be an answer to Christiana’s call for me to do something extra ? Join in the monthly fast and prayer that’s due to start on 1st November ? Well, sure I will, as part of my work duties. Network for Our Voices that will funnel the energy of the monthly call to prayer into a Civil Society “tornado” in support of the UNFCCC Paris Treaty ? Yes, of course. Comes with the territory. But more… ?

I noticed that Christiana Figueres had collegiate competition from the bells of St Paul’s, and it sounded like the whole cathedral was ringing. Then my cough started getting bad and I started to feel quite unwell, so I had to leave before the main debate took place, to medicate myself with some fresh orange juice from a company I chose because it tracks its carbon, and has a proper plan for climate sustainability, so I never answered my question – what do I need to do, to do more about climate change ?

David MacKay : Heating London

I took some notes from remarks made by Professor David MacKay, the UK Government’s Chief Scientific Advisor, yesterday, 1st May 2014, at an event entitled “How Will We Heat London ?”, held by Max Fordhams as part of the Green Sky Thinking, Open City week. I don’t claim to have recorded his words perfectly, but I hope I’ve captured the gist.


[David MacKay] : [Agreeing with others on the panel – energy] demand reduction is really important. [We have to compensate for the] “rebound effect”, though [where people start spending money on new energy services if they reduce their demand for their current energy services].

SAP is an inaccurate tool and not suitable for the uses we put it too :-
http://www.eden.gov.uk/planning-and-development/building-control/building-control-guidance-notes/sap-calculations-explained/
http://www.dimplex.co.uk/products/renewable_solutions/building_regulations_part_l.htm

Things seem to be under-performing [for example, Combined Heat and Power and District Heating schemes]. It would be great to have data. A need for engineering expertise to get in.

I’m not a Chartered Engineer, but I’m able to talk to engineers. I know a kilowatt from a kilowatt hour [ (Laughter from the room) ]. We’ve [squeezed] a number of engineers into DECC [the Department of Energy and Climate Change].

I’m an advocate of Heat Pumps, but the data [we have received from demonstration projects] didn’t look very good. We hired two engineers and asked them to do the forensic analysis. The heat pumps were fine, but the systems were being wrongly installed or used.

Now we have a Heat Network team in DECC – led by an engineer. We’ve published a Heat Strategy. I got to write the first three pages and included an exergy graph.

[I say to colleagues] please don’t confuse electricity with energy – heat is different. We need not just a green fluffy solution, not just roll out CHP [Combined Heat and Power] [without guidance on design and operation].

Sources of optimism ? Hopefully some of the examples will be available – but they’re not in the shop at the moment.

For example, the SunUp Heat Battery – works by having a series of chambers of Phase Change Materials, about the size of a fridge that you would use to store heat, made by electricity during the day, for use at night, and meet the demand of one home. [Comment from Paul Clegg, Senior Partner at Feilden Clegg Bradley Studios : I first heard about Phase Change Materials back in the 1940s ? 1950s ? And nothing’s come of it yet. ] Why is that a good idea ? Well, if you have a heat pump and a good control system, you can use electricity when it’s cheapest… This is being trialled in 10 homes.

Micro-CHP – [of those already trialled] definitely some are hopeless, with low temperature and low electricity production they are just glorified boilers with a figleaf of power.

Maybe Fuel Cells are going to deliver – power at 50% efficiency [of conversion] – maybe we’ll see a Fuel Cell Micro-Combined Heat and Power unit ?

Maybe there will be hybrid systems – like the combination of a heat pump and a gas boiler – with suitable controls could lop off peaks of demand (both in power and gas).

We have designed the 2050 Pathways Calculator as a tool in DECC. It was to see how to meet the Carbon Budget. You can use it as an energy security calculator if you want. We have helped China, Korea and others to write their own calculators.

A lot of people think CHP is green and fluffy as it is decentralised, but if you’re using Natural Gas, that’s still a Fossil Fuel. If you want to run CHP on biomass, you will need laaaaaarge amounts of land. You can’t make it all add up with CHP. You would need many Wales’-worth of bioenergy or similar ways to make it work.

Maybe we should carry on using boilers and power with low carbon gas – perhaps with electrolysis [A “yay !” from the audience. Well, me, actually]. Hydrogen – the the 2050 Calculator there is no way to put it back into the beginning of the diagram – but it could provide low carbon heat, industry and transport. At the moment we can only put Hydrogen into Transport [in the 2050 Calculator. If we had staff in DECC to do that… It’s Open Source, so if any of you would like to volunteer…

Plan A of DECC was to convert the UK to using lots of electricity [from nuclear power and other low carbon technologies, to move to a low carbon economy], using heat pumps at the consumer end, but there’s a problem in winter [Bill Watts of Max Fordham had already shown a National Grid or Ofgem chart of electricity demand and gas demand over the year, day by day. Electricity demand (in blue) fluctuates a little, but it pretty regular over the year. Gas demand (in red) however, fluctuates a lot, and is perhaps 6 to 10 times larger in winter than in summer.]

If [you abandon Plan A – “electrification of everything”] and do it the other way, you will need a large amount of Hydrogen, and a large Hydrogen store. Electrolysers are expensive, but we are doing/have done a feasibility study with ITM Power – to show the cost of electrolysers versus the cost of your wind turbines [My comment : but you’re going to need your wind turbines to run your electrolysers with their “spare” or “curtailed” kilowatt hours.]

[David Mackay, in questions from the floor] We can glue together [some elements]. Maybe the coming smart controls will help…can help save a load of energy. PassivSystems – control such things as your return temperature [in your Communal or District Heating]…instead of suing your heat provider [a reference to James Gallagher who has problems with his communal heating system at Parkside SE10], maybe you could use smart controls…

[Question] Isn’t using smart controls like putting a Pirelli tyre on a Ford Cortina ? Legacy of poor CHP/DH systems…

[David MacKay in response to the question of insulation] If insulation were enormously expensve, we wouldn’t have to be so enthusastic about it…We need a well-targeted research programme looking at deep retrofitting, instead of letting it all [heat] out.

[Adrian Gault, Committee on Climate Change] We need an effective Government programme to deliver that. Don’t have it in the Green Deal. We did have it [in the previous programmes of CERT and CESP], but since they were cancelled in favour of the Green Deal, it’s gone off a cliff [levels of insulation installations]. We would like to see an initiative on low cost insulation expanded. The Green Deal is not producing a response.

[Bill Watts, Max Fordham] Agree that energy efficiency won’t run on its own. But it’s difficult to do. Not talking about automatons/automation. Need a lot of pressure on this.

[Adrian Gault] Maybe a street-by-street approach…

[Michael Trousdell, Arup] Maybe a rule like you can’t sell a house unless you’ve had the insulation done…

[Peter Clegg] … We can do heat recovery – scavenging the heat from power stations, but we must also de-carbonise the energy supply – this is a key part of the jigsaw.

Mind the Gap : BBC Costing the Earth

I listened to an interesting mix of myth, mystery and magic on BBC Radio 4.

Myths included the notion that long-term, nuclear power would be cheap; that “alternative” energy technologies are expensive (well, nuclear power is, but true renewables are most certainly not); and the idea that burning biomass to create heat to create steam to turn turbines to generate electricity is an acceptably efficient use of biomass (it is not).

Biofuelwatch are hosting a public meeting on this very subject :-
http://www.biofuelwatch.org.uk/2013/burning_issue_public_event/
“A Burning Issue – biomass and its impacts on forests and communities”
Tuesday, 29th October 2013, 7-9pm
Lumen Centre, London (close to St Pancras train station)
http://www.lumenurc.org.uk/lumencontact.htm
Lumen Centre, 88 Tavistock Place, London WC1H 9RS

Interesting hints in the interviews I thought pointed to the idea that maybe, just maybe, some electricity generation capacity should be wholly owned by the Government – since the country is paying for it one way or another. A socialist model for gas-fired generation capacity that’s used as backup to wind and solar power ? Now there’s an interesting idea…




http://www.bbc.co.uk/programmes/b03cn0rb

“Mind the Gap”
Channel: BBC Radio 4
Series: Costing the Earth
Presenter: Tom Heap
First broadcast: Tuesday 15th October 2013

Programme Notes :

“Our energy needs are growing as our energy supply dwindles.
Renewables have not come online quickly enough and we are increasingly
reliant on expensive imported gas or cheap but dirty coal. Last year
the UK burnt 50% more coal than in previous years but this helped
reverse years of steadily declining carbon dioxide emissions. By 2015
6 coal fired power stations will close and the cost of burning coal
will increase hugely due to the introduction of the carbon price
floor. Shale gas and biomass have been suggested as quick and easy
solutions but are they really sustainable, or cheap?”

“Carbon Capture and Storage could make coal or gas cleaner and a new
study suggests that with CCS bio energy could even decrease global
warming. Yet CCS has stalled in the UK and the rest of Europe and the
debate about the green credentials of biomass is intensifying. So what
is really the best answer to Britain’s energy needs? Tom Heap
investigates.”

00:44 – 00:48
[ Channel anchor ]
Britain’s energy needs are top of the agenda in “Costing the Earth”…

01:17
[ Channel anchor ]
…this week on “Costing the Earth”, Tom Heap is asking if our
ambitions to go green are being lost to the more immediate fear of
blackouts and brownouts.

01:27
[ Music : Arcade Fire – “Neighbourhood 3 (Power Out)” ]

[ Tom Heap ]

Energy is suddenly big news – central to politics and the economy. The
countdown has started towards the imminent shutdown of many coal-fired
power stations, but the timetable to build their replacements has
barely begun.

It’ll cost a lot, we’ll have to pay, and the politicians are reluctant
to lay out the bill. But both the official regulator and industry are
warning that a crunch is coming.

So in this week’s “Costing the Earth”, we ask if the goal of clean,
green and affordable energy is being lost to a much darker reality.

02:14
[ Historical recordings ]

“The lights have started going out in the West Country : Bristol,
Exeter and Plymouth have all had their first power cuts this
afternoon.”

“One of the biggest effects of the cuts was on traffic, because with
the traffic lights out of commission, major jams have built up,
particularly in the town centres. One of the oddest sights I saw is a
couple of ladies coming out of a hairdressers with towels around their
heads because the dryers weren’t working.”

“Television closes down at 10.30 [ pm ], and although the cinemas are
carrying on more or less normally, some London theatres have had to
close.”

“The various [ gas ] boards on both sides of the Pennines admit to
being taken by surprise with today’s cold spell which brought about
the cuts.”

“And now the major scandal sweeping the front pages of the papers this
morning, the advertisement by the South Eastern Gas Board recommending
that to save fuel, couples should share their bath.”

[ Caller ]
“I shall write to my local gas board and say don’t do it in
Birmingham. It might be alright for the trendy South, but we don’t
want it in Birmingham.”

03:13
[ Tom Heap ]

That was 1974.

Some things have changed today – maybe a more liberal attitude to
sharing the tub. But some things remain the same – an absence of
coal-fired electricity – threatening a blackout.

Back then it was strikes by miners. Now it’s old age of the power
plants, combined with an EU Directive obliging them to cut their
sulphur dioxide and nitrous oxide emissions by 2016, or close.

Some coal burners are avoiding the switch off by substituting wood;
and mothballed gas stations are also on standby.

But Dieter Helm, Professor of Energy Policy at the University of
Oxford, now believes power cuts are likely.

03:57
[ Dieter Helm ]

Well, if we take the numbers produced by the key responsible bodies,
they predict that there’s a chance that by the winter of 2-15 [sic,
meaning 2015] 2-16 [sic, meaning 2016], the gap between the demand for
electricity and the supply could be as low as 2%.

And it turns out that those forecasts are based on extremely
optimistic assumptions about how far demand will fall in that period
(that the “Green Deal” will work, and so on) and that we won’t have
much economic growth.

So basically we are on course for a very serious energy crunch by the
winter of 2-15 [sic, meaning 2015] 2-16 [sic, meaning 2016], almost
regardless of what happens now, because nobody can build any power
stations between now and then.

It’s sort of one of those slow motion car crashes – you see the whole
symptoms of it, and people have been messing around reforming markets
and so on, without addressing what’s immediately in front of them.

[ Tom Heap ]

And that’s where you think we are now ?

[ Dieter Helm ]

I think there’s every risk of doing so.

Fortunately, the [ General ] Election is a year and a half away, and
there’s many opportunities for all the political parties to get real
about two things : get real about the energy crunch in 2-15 [sic,
meaning 2015] 2-16 [sic, meaning 2016] and how they’re going to handle
it; and get real about creating the incentives to decarbonise our
electricity system, and deal with the serious environmental and
security and competitive issues which our electricity system faces.

And this is a massive investment requirement [ in ] electricity : all
those old stations retiring [ originally built ] back from the 1970s –
they’re all going to be gone.

Most of the nuclear power stations are coming to the end of their lives.

We need a really big investment programme. And if you really want an
investment programme, you have to sit down and work out how you’re
going to incentivise people to do that building.

[ Tom Heap ]

If we want a new energy infrastructure based on renewables and
carbon-free alternatives, then now is the time to put those incentives
on the table.

The problem is that no-one seems to want to make the necessary
investment, least of all the “Big Six” energy companies, who are
already under pressure about high bills.

[ “Big Six” are : British Gas / Centrica, EdF Energy (Electricite
de France), E.On UK, RWE npower, Scottish Power and SSE ]

Sam Peacock of the energy company SSE [ Scottish and Southern Energy ]
gives the commercial proof of Dieter’s prediction.

If energy generators can’t make money out of generating energy,
they’ll be reluctant to do it.

[ Sam Peacock ]

Ofgem, the energy regulator, has looked at this in a lot of detail,
and said that around 2015, 2016, things start to get tighter. The
reason for this is European Directives, [ is [ a ] ] closing down some
of the old coal plants. And also the current poor economics around [
or surround [ -ing ] ] both existing plant and potential new plant.

So, at the moment it’s very, very difficult to make money out of a gas
plant, or invest in a new one. So this leads to there being, you know,
something of a crunch point around 2015, 2016, and Ofgem’s analysis
looks pretty sensible to us.

[ Tom Heap ]

And Sam Peacock lays the blame for this crisis firmly at the Government’s door.

[ Sam Peacock ]

The trilemma, as they call it – of decarbonisation, security of supply
and affordability – is being stretched, because the Government’s
moving us more towards cleaner technologies, which…which are more
expensive.

However, if you were to take the costs of, you know, the extra costs
of developing these technologies off government [ sic, meaning
customer ] bills and into general taxation, you could knock about over
£100 off customer bills today, it’ll be bigger in the future, and you
can still get that much-needed investment going.

So, we think you can square the circle, but it’s going to take a
little bit of policy movement [ and ] it’s going to take shifting some
of those costs off customers and actually back where the policymakers
should be controlling them.

[ KLAXON ! Does he mean controlled energy prices ? That sounds a bit
centrally managed economy to me… ]

[ Tom Heap ]

No surprise that a power company would want to shift the pain of
rising energy costs from their bills to the tax bill.

But neither the Government nor the Opposition are actually proposing this.

Who pays the premium for expensve new energy sources is becoming like
a game of pass the toxic parcel.

[ Reference : http://en.wikipedia.org/wiki/Hot_potato_%28game%29 ]

I asked the [ UK Government Department of ] Energy and Climate Change
Secretary, Ed Davey, how much new money is required between now and
2020.

08:06

[ Ed Davey ]

About £110 billion – er, that’s critical to replace a lot of the coal
power stations that are closing, the nuclear power stations that are [
at the ] end of their lives, and replace a lot of the network which
has come to the end of its life, too.

So it’s a huge, massive investment task.

[ Tom Heap ]

So in the end we’re going to have to foot the bill for the £110 billion ?

[ Ed Davey ]

Yeah. Of course. That’s what happens now. People, in their bills that
they pay now, are paying for the network costs of investments made
several years, even several decades ago.

[ Yes – we’re still paying through our national nose to dispose of
radioactive waste and decommission old nuclear reactors. The liability
of it all weighs heavily on the country’s neck… ]

And there’s no escaping that – we’ve got to keep the lights on – we’ve
got to keep the country powered.

You have to look at both sides of the equation. If we’re helping
people make their homes more inefficient [ sic, meaning energy
efficient ], their product appliances more efficient, we’re doing
everything we possibly can to try to help the bills be kept down,

while we’re having to make these big investments to keep the lights
on, and to make sure that we don’t cook the planet, as you say.

[ Tom Heap ]

You mention the lights going out. There are predictions that we’re
headed towards just 2% of spare capacity in the system in a few years’
time.

Are you worried about the dangers of, I don’t know, maybe not lights
going out for some people, but perhaps big energy users being told
when and when [ sic, meaning where ] they can’t use power in the
winter ?

[ Ed Davey ]

Well, there’s no doubt that as the coal power stations come offline,
and the nuclear power plants, er, close, we’re going to have make sure
that new power plants are coming on to replace them.

And if we don’t, there will be a problem with energy security.

Now we’ve been working very hard over a long time now to make sure we
attract that investment. We’ve been working with Ofgem, the regulator;
with National Grid, and we’re…

[ Tom Heap ]

…Being [ or it’s being ] tough. I don’t see companies racing to come
and fill in the gap here and those coal power plants are going off
soon.

[ Ed Davey ]

…we’re actually having record levels of energy investment in the country.

The problem was for 13 years under the last Government
[ same old, same old Coalition argument ] we saw low levels of investment
in energy, and we’re having to race to catch up, but fortunately we’re
winning that race. And we’re seeing, you know, billions of pounds
invested but we’ve still got to do more. We’re not there. I’m not
pretending we’re there yet. [ Are we there, yet ? ] But we do have the
policies in place.

So, Ofgem is currently consulting on a set of proposals which will
enable it to have reserve power to switch on at the peak if it’s
needed.

We’re, we’ve, bringing forward proposals in the Energy Bill for what’s
called a Capacity Market, so we can auction to get that extra capacity
we need.

So we’ve got the policies in place.

[ Tom Heap ]

Some of Ed Davey’s policies, not least the LibDem [ Liberal Democrat
Party ] U-turn on nuclear, have been guided by DECC [ Department of
Energy and Climate Change ] Chief Scientist David MacKay, author of
the influential book “Renewable Energy without the Hot Air” [ sic,
actually “Sustainable Energy without the Hot Air” ].

Does he think the lights will dim in the second half of this decade ?

[ David MacKay ]

I don’t think there’s going to be any problem maintaining the capacity
that we need. We just need to make clear where Electricity Market
Reform [ EMR, part of the Energy Bill ] is going, and the way in which
we will be maintaining capacity.

[ Tom Heap ]

But I don’t quite understand that, because it seems to me, you know,
some of those big coal-fired power stations are going to be going off.
What’s going to be coming in their place ?

[ David MacKay ]

Well, the biggest number of power stations that’s been built in the
last few years are gas power stations, and we just need a few more gas
power stations like that, to replace the coal
, and hopefully some
nuclear power stations will be coming on the bars, as well as the wind
farms that are being built at the moment.

[ Tom Heap ]

And you’re happy with that increase in gas-fired power stations, are
you ? I mean, you do care deeply, personally, about reducing our
greenhouse gases, and yet you’re saying we’re going to have to build
more gas-fired power stations.

[ David MacKay ]

I do. Even in many of the pathways that reach the 2050 target, there’s
still a role for gas in the long-term, because some power sources like
wind and solar power are intermittent, so if you want to be keeping
the lights on in 2050 when there’s no wind and there’s no sun, you’re
going to need some gas power stations there
. Maybe not operating so
much of the time as they do today, but there’ll still be a role in
keeping the lights on.

[ KLAXON ! If gas plants are used only for peak periods or for backup to
renewables, then the carbon emissions will be much less than if they are
running all the time. ]

[ Tom Heap ]

Many energy experts though doubt that enough new wind power or nuclear
capacity could be built fast enough to affect the sums in a big way by
2020.

But that isn’t the only critical date looming over our energy system.
Even more challenging, though more distant, is the legally binding
objective of cutting greenhouse gas emissions in 2050.

David MacKay wants that certainty to provide the foundation for energy
decisions, and he showed me the effect of different choices with the
“Ultimate Future Energy App”. I was in his office, but anyone can try it online.

[ David MacKay ]

It’s a 2050 calculator. It computes energy demand and supply in
response to your choices, and it computes multiple consequences of
your choices. It computes carbon consequences. It also computes for
you estimates of air quality, consequences of different choices;
security of supply, consequences; and the costs of your choices.

So with this 2050 calculator, it’s an open source tool, and anyone can
go on the web and use the levers to imagine different futures in 2050
of how much action we’ve taken in different demand sectors and in
different supply sectors.

The calculator has many visualisations of the pathway that you’re choosing
and helps people understand all the trade-offs… There’s no silver
bullet for any of this. If I dial up a pathway someone made earlier,
we can visualise the implications in terms of the area occupied for
the onshore wind farms, and the area in the sea for the offshore wind
farms, and the length of the wave farms that you’ve built, and the
land area required for energy crops.

And many organisations have used this tool and some of them have given
us their preferred pathway. So you can see here the Friends of the
Earth have got their chosen pathway, the Campaign to Protect Rural
England, and various engineers like National Grid and Atkins have got
their pathways.

So you can see alternative ways of achieving our targets, of keeping
the lights on and taking climate change action. All of those pathways
all meet the 2050 target, but they do so with different mixes.

[ Tom Heap ]

And your view of this is you sort of can’t escape from the scientific
logic and rigour of it. You might wish things were different or you
could do it differently, but you’re sort of saying “Look, it’s either
one thing or the other”. That’s the point of this.

[ David MacKay ]

That’s true. You can’t be anti-everything. You can’t be anti-wind and
anti-nuclear and anti-home insulation. You won’t end up with a plan
that adds up.

[ KLAXON ! But you can be rationally against one or two things, like
expensive new nuclear power, and carbon and particulate emissions-heavy
biomass for the generation of electricity. ]

[ Tom Heap ]

But isn’t that exactly kind of the problem that we’ve had, without
pointing political fingers, that people rather have been
anti-everything, and that’s why we’re sort of not producing enough new
energy sources ?

[ David MacKay ]

Yeah. The majority of the British public I think are in favour of many
of these sources, but there are strong minorities who are vocally
opposed to every one of the major levers in this calculator. So one
aspiration I have for this tool is it may help those people come to a
position where they have a view that’s actually consistent with the
goal of keeping the lights on.

[ Tom Heap ]

Professor MacKay’s calculator also computes pounds and pence,
suggesting that both high and low carbon electricity work out pricey
in the end.

[ David MacKay ]

The total costs of all the pathways are pretty much the same.
“Business as Usual” is cheaper in the early years, and then pays more,
because on the “Business as Usual”, you carry on using fossil fuels,
and the prices of those fossil fuels are probably going to go up.

All of the pathways that take climate change action have a similar
total cost, but they pay more in the early years, ’cause you have to
pay for things like building insulation and power stations, like
nuclear power stations, or wind power, which cost up-front, but then
they’re very cheap to run in the future.

[ KLAXON ! Will the cost of decommissioning nuclear reactors and the
costs of the waste disposal be cheap ? I think not… ]

So the totals over the 40 or 50 year period here, are much the same for these.

[ Tom Heap ]

The cheapest immediate option of all is to keep shovelling the coal.
And last year coal overtook gas to be our biggest electricity
generation source, pushing up overall carbon emissions along the way
by 4.5%

[ KLAXON ! This is not very good for energy security – look where the
coal comes from… ]

As we heard earlier, most coal-fired power stations are scheduled for
termination, but some have won a reprieve, and trees are their
unlikely saviour.

Burning plenty of wood chip [ actually, Tom, it’s not wood “chip”, it’s
wood “pellets” – which often have other things mixed in with the wood,
like coal… ] allows coal furnaces to cut the sulphur dioxide and nitrous
oxide belching from their chimneys to below the level that requires their
closure under European law.

But some enthusiasts see wood being good for even more.

16:19

[ Outside ]

It’s one of those Autumn days that promises to be warm, but currently
is rather moist. I’m in a field surrounded by those dew-laden cobwebs
you get at this time of year.

But in the middle of this field is a plantation of willow. And I’m at
Rothamsted Research with Angela Karp who’s one of the directors here.

Angela, tell me about this willow I’m standing in front of here. I
mean, it’s about ten foot high or so, but what are you seeing ?

[ Angela Karp ]

Well, I’m seeing one of our better varieties that’s on display here.
We have a demonstration trial of about ten different varieties. This
is a good one, because it produces a lot of biomass, quite easily,
without a lot of additional fertilisers or anything. And as you can
see it’s got lovely straight stems. It’s got many stems, and at the
end of three years, we would harvest all those stems to get the
biomass from it. It’s nice and straight – it’s a lovely-looking, it’s
got no disease, no insects on it, very nice, clean willow.

[ Tom Heap ]

So, what you’ve been working on here as I understand it is trying to
create is the perfect willow – the most fuel for the least input – and
the easiest to harvest.

[ Angela Karp ]

That’s absolutely correct, because the whole reason for growing these
crops is to get the carbon from the atmosphere into the wood, and to
use that wood as a replacement for fossil fuels. Without putting a lot
of inputs in, because as soon as you add fertilisers you’re using
energy and carbon to make them, and that kind of defeats the whole
purpose of doing this.

[ KLAXON ! You don’t need to use fossil fuel energy or petrochemicals or
anything with carbon emissions to make fertiliser ! … Hang on, these
are GM trees, right ? So they will need inputs… ]

[ Tom Heap ]

And how much better do you think your new super-variety is, than say,
what was around, you know, 10 or 15 years ago. ‘Cause willow as an
idea for burning has been around for a bit. How much of an improvement
is this one here ?

[ Angela Karp ]

Quite a bit. So, these are actually are some of the, if you like,
middle-term varieties. So we started off yielding about 8 oven-dry
tonnes per hectare, and now we’ve almost doubled that.

[ Tom Heap ]

How big a place do you think biomass can have in the UK’s energy
picture in the future ?

[ Angela Karp ]

I think that it could contribute between 10% and 15% of our energy. If
we were to cultivate willows on 1 million hectares, we would probably
provide about 3% to 4% of energy in terms of electricity, and I think
that’s kind of a baseline figure. We could cultivate them on up to 3
million hectares, so you can multiply things up, and we could use them
in a much more energy-efficient way.

[ KLAXON ! Is that 4% of total energy or 4% of total electricity ?
Confused. ]

[ Tom Heap ]

Do we really have 3 million hectares going a-begging for planting willow in ?

[ Angela Karp ]

Actually, surprisingly we do. So, people have this kind of myth
there’s not enough land, but just look around you and you will find
there’s lots of land that’s not used for cultivating food crops.

We don’t see them taking over the whole country. We see them being
grown synergistically with food crops.

[ KLAXON ! This is a bit different than the statement made in 2009. ]

[ Tom Heap ]

But I’d just like to dig down a little bit more into the carbon cycle
of the combustion of these things, because that’s been the recent
criticism of burning a lot of biomass, is that you put an early spike
in the amount of carbon in the atmosphere, if you start burning a lot
of biomass, because this [ sounds of rustling ], this plant is going
to be turned into, well, partly, CO2 in the atmosphere.

[ Angela Karp ]

Yes, I think that’s probably a simple and not totally correct way of
looking at it. ‘Cause a lot depends on the actual conversion process
you are using.

So some conversion processes are much more efficient at taking
everything and converting it into what you want.

Heat for example is in excess of 80%, 90% conversion efficiency.

Electricity is a little bit more of the problem. And there, what
they’re looking at is capturing some of the carbon that you lose, and
converting that back in, in carbon storage processes, and that’s why
there’s a lot of talk now about carbon storage from these power
stations.

That I think is the future. It’s a question of connecting up all parts
of the process, and making sure that’s nothing wasted.

20:02

[ Tom Heap ]

So, is wood a desirable greener fuel ?

Not according to Almuth Ernsting of Biofuelwatch, who objects to the
current plans for large-scale wood burning, its use to prop up coal,
and even its low carbon claims.

[ Almuth Ernsting ]

The currently-announced industry plans, and by that I mean existing
power stations, but far more so, power stations which are in the
planning process [ and ] many of which have already been consented –
those [ biomass ] power stations, would, if they all go ahead,
require to burn around 82 million tonnes of biomass, primarily wood,
every year. Now by comparison, the UK in total only produces around
10 million tonnes, so one eighth of that amount, in wood, for all
industries and purposes, every year.

We are looking on the one hand at a significant number of proposed,
and in some cases, under-construction or operating new-build biomass
power stations, but the largest single investment so far going into
the conversion of coal power station units to biomass, the largest and
most advanced one of which at the moment is Drax, who are, have
started to move towards converting half their capacity to burning wood
pellets.

[ Tom Heap ]

Drax is that huge former, or still currently, coal-fired power station
in Yorkshire, isn’t it ?

[ Almuth Ernsting ]

Right, and they still want to keep burning coal as well. I mean, their
long-term vision, as they’ve announced, would be for 50:50 coal and
biomass.

[ Tom Heap ]

What do you think about that potential growth ?

[ Almuth Ernsting ]

Well, we’re seriously concerned. We believe it’s seriously bad news
for climate change, it’s seriously bad news for forests, and it’s
really bad news for communities, especially in the Global South, who
are at risk of losing their land for further expansion of monoculture
tree plantations, to in future supply new power stations in the UK.

A really large amount, increasingly so, of the wood being burned,
comes from slow-growing, whole trees that are cut down for that
purpose, especially at the moment in temperate forests in North
America. Now those trees will take many, many decades to grow back
and potentially re-absorb that carbon dioxide, that’s if they’re
allowed and able to ever grow back.

[ Tom Heap ]

There’s another technology desperate for investment, which is critical
to avoiding power failure, whilst still hitting our mid-century carbon
reduction goals – CCS – Carbon Capture and Storage, the ability to
take the greenhouse gases from the chimney and bury them underground.

It’s especially useful for biomass and coal, with their relatively
high carbon emissions, but would also help gas be greener.

The Chancellor has approved 30 new gas-fired power stations, so long
as they are CCS-ready [ sic, should be “capture ready”, or
“carbon capture ready” ].

Jon Gibbons is the boss of the UK CCS Research Centre, based in an
industrial estate in Sheffield.

[ Noise of processing plant ]

Jon’s just brought me up a sort of 3D maze of galvanized steel and
shiny metal pipes to the top of a tower that must be 20 or so metres
high.

Jon, what is this ?

[ Jon Gibbons ]

OK, so this is our capture unit, to take the CO2 out of the combustion
products from gas or coal. In the building behind us, in the test rigs
we’ve got, the gas turbine or the combustor rig, we’re burning coal or
gas, or oil, but mainly coal or gas.

We’re taking the combustion products through the green pipe over
there, bringing it into the bottom of the unit, and then you can see
these big tall columns we’ve got, about 18 inches diameter, half a
metre diameter, coming all the way up from the ground up to the level
we’re at.

It goes into one of those, it gets washed clean with water, and it
goes into this unit over here, and there it meets an amine solvent, a
chemical that will react reversibly with CO2, coming in the opposite
direction, over packing. So, it’s like sort of pebbles, if you can
imagine it, there’s a lot of surface area. The gas flows up, the
liquid flows down, and it picks up the CO2, just mainly the CO2.

[ Tom Heap ]

And that amine, that chemical as you call it, is stripping the CO2 out
of that exhaust gas. This will link to a storage facility.

What would then happen to the CO2 ?

[ Jon Gibbons ]

What would then happen is that the CO2 would be compressed up to
somewhere in excess of about 100 atmospheres. And it would turn from
being a gas into something that looks like a liquid, like water, about
the same density as water. And then it would be taken offshore in the
UK, probably tens or hundreds of kilometres offshore, and it would go
deep, deep down, over a kilometre down into the ground, and basically
get squeezed into stuff that looks like solid rock. If you go and look
at a sandstone building – looks solid, but actually, maybe a third of
it is little holes. And underground, where you’ve got cubic kilometres
of space, those little holes add up to an awful lot of free space. And
the CO2 gets squeezed into those, over time, and it spreads out, and
it just basically sits there forever, dissolves in the water, reacts
with the rocks, and will stay there for millions of years.

[ Tom Heap ]

Back in his office, I asked Jon why CCS seemed to be stuck in the lab.

[ Jon Gibbons ]

We’re doing enough I think on the research side, but what we really
need to do, is to do work on a full-scale deployment. Because you
can’t work on research in a vacuum. You need to get feedback –
learning by doing – from actual real projects.

And a lot of the problems we’ve got on delivering CCS, are to do with
how you handle the regulation for injecting CO2, and again, you can
only do that in real life.

So what we need to do is to see the commercialisation projects that
are being run by the Department of Energy and Climate Change actually
going through to real projects that can be delivered.

[ Tom Heap ]

Hmm. When I talk to engineers, they’re always very passionate and
actually quite optimistic about Carbon Capture and Storage. And when
I talk to people in industry, or indeed read the headlines, not least
a recent cancellation in Norway, it always seems like a very bleak picture.

[ Jon Gibbons ]

I think people are recognising that it’s getting quite hard to get
money for low carbon technologies.

So – recent presentation we had at one of our centre meetings, was
actually a professor from the United States, Howard Herzog. And he
said “You think you’re seeing a crisis in Carbon Capture and Storage.
But what you’re actually seeing is a crisis in climate change
mitigation.”

[ KLAXON ! Priming us for a scaling back of commitment to the
Climate Change Act ? I do hope not. ]

Now, Carbon Capture and Storage, you do for no other purpose than
cutting CO2 emissions to the atmosphere, and it does that extremely
effectively. It’s an essential technology for cutting emissions. But
until you’ve got a global process that says – actually we’re going to
get on top of this problem; we’re going to cut emissions – get them to
safe level before we actually see people dying in large numbers from
climate change effects – ’cause, certainly, if people start dying,
then we will see a response – but ideally, you’d like to do it before
then. But until you get that going, then actually persuading people to
spend money for no other benefit than sorting out the climate is
difficult.

There’s just no point, you know, no country can go it alone, so you
have to get accommodation. And there, we’re going through various
processes to debate that. Maybe people will come to an accommodation.
Maybe the USA and China will agree to tackle climate change. Maybe
they won’t.

What I am fairly confident is that you won’t see huge, you know,
really big cuts in CO2 emissions without that global agreement. But
I’m also confident that you won’t see big cuts in CO2 emissions
without CCS deployment.

And my guess is there’s about a 50:50 chance that we do CCS before we
need to, and about a 50:50 chance we do it after we have to. But I’m
pretty damn certain we’re going to do it.

[ Tom Heap ]

But we can’t wait for a global agreement that’s already been decades
in the making, with still no end in sight.

We need decisions now to provide more power with less pollution.

[ Music lyrics : “What’s the plan ? What’s the plan ?” ]

[ Tom Heap ]

Dieter Helm, Professor of Energy Policy at the University of Oxford
believes we can only deliver our plentiful green energy future if we
abandon our attitude of buy-now pay-later.

[ KLAXON ! Does he mean a kind of hire purchase energy economy ?
I mean, we’re still paying for nuclear electricity from decades ago,
in our bills, and through our taxes to the Department of Energy and
Climate Change. ]

[ Dieter Helm ]

There’s a short-term requirement and a long-term requirement. The
short-term requirement is that we’re now in a real pickle. We face
this energy crunch. We’ve got to try to make the best of what we’ve
got. And I think it’s really like, you know, trying to get the
Spitfires back up again during the Battle of Britain. You know, you
patch and mend. You need somebody in command. You need someone
in control. And you do the best with what you’ve got.

In that context, we then have to really stand back and say, “And this
is what we have to do to get a serious, long-term, continuous, stable
investment environment, going forward.” In which, you know, we pay the
costs, but of course, not any monopoly profits, not any excess
profits, but we have a world in which the price of electricity is
related to the cost.”

[ KLAXON ! Is Dieter Helm proposing state ownership of energy plant ? ]

29:04

[ Programme anchor ]

“Costing the Earth” was presented by Tom Heap, and made in Bristol by
Helen Lennard.

[ Next broadcast : 16th October 2013, 21:00, BBC Radio 4 ]

Gas Strategy “Dangerous Gamble”

I had a most refreshing evening at Portcullis House in Westminster this evening – apart from the fact that the Macmillan Room was overheated, so you couldn’t possibly deduce that energy conservation is intended to be part of the UK Government’s strategy, making an example with the public sector.

Tonight was the launch of the Greenpeace and WWF-UK report “A Study into the Economics of Gas and Offshore Wind“, which was commissioned from Cambridge Econometrics.

Professor Paul Ekins got up to speak and actually had the gall to declare the Government’s “Gas Strategy” to be a “dangerous gamble”. It was at this point that I took heart again – there are still some sane, rational people in the “national energy conversation”, even though Ekins did admit that he wasn’t sure that the “Gas Strategy” was an actual thing. Oh, but it is. All eighty pages of it.

Today was not the first time Professor Paul Ekins called out the Government on this, apparently, although I didn’t have a recollection of seeing the the mention in New Scientist before today.

Other highlights of the evening were provided by Laura Sandys MP naming her political opposition Alan Whitehead MP as the leader of a “parliamentary roadshow” on Energy and Climate Change, and questioning the use of the term “energy efficiency”. “It’s energy waste, guys”, she corrected and said we should be using that term instead of the “effete word efficiency”, and encouraged the energy waste prevention industry to get the rest of us engaged with their products.

A chap from Scottish and Southern Energy (SSE) – I think it might have been Kevin MacLean – got up during questions from the floor, and almost begged for a long-term framework – a plan for renewable energy – a “binding framework” to encourage investment and “get costs down”.

It was pointed out during the evening, that, logically enough, that policy is important to energy futures, “if you have more certainty, you get more investment”. And there was encouragement to get Government Departments to think about this more. Yes, some subsidies and other forms of support are going to be needed to get the renewable energy revolution kickstarted, but “if [we] get benefits – isn’t that a price worth paying ?” The benefits outlined included potential for some small growth in the economy, around about 0.8% GDP, but good prospects for high value employment in depressed coastal towns where much of the offshore wind industry will host engineers, both for construction and ongoing operations and maintenance.

Laura Sandys MP was ashamed to say that she may no longer be able to claim she has the two largest offshore wind farms in her constituency – as progress is being made elsewhere.

Sarah Merrick from Vestas, the wind power engineering firm, emphasised that the economics of wind power stacks up and that it’s important to communicate this – despite the current dismissive media agenda – where she said it is important to defend the industry against certain media claims.

Lord Alan Haworth brought up the inevitable question of renewable energy intermittency – “days of dead calm and dark nights”. He raised the statistic that weather systems in Europe can cover 1,500 kilometres, so if wind power is down in the UK, it’s going to be down elsewhere in the EU electricity networks – the countries we have interconnectors with. What he didn’t elaborate on was this – just as the UK is beefing (and I don’t mean “up to 100% horsing about”) up its connections with the European electricity networks, so too, Europe as a whole is beginning to reach out with its networks to satellite countries. What that could mean is that even if wind-powered electrons in the UK take a dive, electrons could still appear in the power network from very far afield, and shunt power to the UK.

The speaker from the Crown Estate said that it was “sensible” to push for a good quantity of wind power – and that the report was a compelling argument. He regretted that it could not be guaranteed that the wind power-ed economy would necessarily have more of its supply chain in the UK – as various bodies have to comply with EU trade rules – but that there was a commitment in one part of the industry to 50% indigenous resourcing and employment (if I noted that down correctly).

Long-term policy clarity was espoused. Disappointment was expressed in the Coalition Government’s flip-flop about gas – emphasising the development of gas-powered electricity generation at the expense of projecting high levels of renewables (65%, says the report, is perfectly feasible) – and that it gave mixed messages – which weren’t helping investment decisions. Sarah Merrick repeated the E.On line that UK electricity should be “balanced by gas, not based on gas”, although she didn’t explain that they weren’t necessarily talking about wind power being the mainstay of new generation capacity.

It was generally agreed that David Cameron should lead and adopt the EU 2030 renewable energy targets – to enable billions of new confidence in the UK energy sector.

Not having a strong lead on renewable energy and energy waste reduction would be an “abdication of responsibility on the part of the policy-creating machine”. And, “even if shale gas does materialise”, it would not provide much stimulus.

How is your Australia ?

[ PLEASE NOTE : This post is not written by JOABBESS.COM, but by a contact in Australia, who was recently asked if they could send an update of the situation there, and contributed this piece. ]

John and Jono: Resistance to coal in heat-afflicted Australia
By Miriam Pepper, 24/1/13

It was predicted to be a hot summer in eastern Australia, with a return to dry El Nino conditions after two back-to-back wet La Nina years. And hot it has been indeed. Temperature records have tumbled across the country – including the hottest day, the longest heatwave, and the hottest four month period.

With heavy fuel loads heightening fire risks, bushfires have blazed across Tasmania, Victoria, NSW, South Australia and Queensland. The fires have wreaked devastation on communities, with homes, farmland and forest destroyed. Thankfully few human lives have been lost (unlike the Black Saturday bushfires of 2009), though many non-human neighbours were not so fortunate. Some 110,000 hectares burned and 130 houses were lost in the Tasmanian bushfires earlier this month, and fires still rage in Gippsland Victoria where over 60,000 hectares have burned so far. And we are only just over halfway through summer.

On January 12, the Australian Government-established Climate Commission released a short report entitled “Off the charts: Extreme Australian Summer heat”. The document concluded that:

“The length, extent and severity of this heatwave are unprecedented in the measurement record. Although Australia has always had heatwaves, hot days and bushfires, climate change has increased the risk of more intense heatwaves and extreme hot days, as well as exacerbated bushfire conditions. Scientists have concluded that climate change is making extreme hot days, heatwaves and bushfire weather worse.”

The Australian continent is one of climate change’s frontlines, and also a major source of its primary cause – fossil fuels.

While the mercury soared and the fires roared, a young translator from Newcastle called Jonathan Moylan issued a fake press release claiming that the ANZ bank, which is bankrolling a massive new coal project at Maules Creek in north western NSW, had withdrawn its loan. Whitehaven Coal’s share price plummeted temporarily before the hoax was uncovered, making national news.

This action did not come out of the blue, neither for Moylan personally nor for the various communities and groups that have for years been confronting (and been confronted by) the rapid expansion of coal and coal seam gas mining at sites across Australia.

The scale of fossil fuel expansion in Australia is astonishing. Already the world’s biggest coal exporter, planned mine expansion could see Australia double its output. The world’s largest coal port of Newcastle NSW has already doubled its capacity in the last 15 years and may now double it again. Mega-mines that are on the cards in the Galilee Basin in central Queensland would quintuple ship movements across the Great Barrier Reef, to 10,000 coal ships per year. If the proposed Galilee Basin mines were fully developed today, the annual carbon dioxide emissions caused by burning their coal alone would exceed those of the United Kingdom or of Canada. The implications of such unfettered expansion locally for farmland, forests, human health and aquatic life as well as globally for the climate are severe.

I have twice had the privilege of participating in a Christian affinity group with Moylan at coal protests. And at around the time of his ANZ stunt, John the Baptist’s ministry and the baptism of Jesus in the gospel of Luke were on the lectionary. For me, there have been some striking parallels between John and Jonathan (Jono).

John the Baptist lived in the wilderness. Jono the Activist has been camping for some time in Leard State Forest near Maules Creek, at a Front Line Action on Coal mine blockade.

John got himself locked up by criticising the behavior of Herod, the then ruler of Galilee (in what is now northern Israel). For making the announcement that ANZ should have made, Jono could now face a potential 10-year jail sentence or a fine of up to $500,000.

When followers suggested that John the Baptist might be the Messiah, he pointed away from himself and towards the Christ that was yet to come. When the spotlight has been shone onto Moylan, by the media and activists alike, he has repeatedly deflected the attention away from himself and towards the resistance of the Maules Creek community to the project and towards the impacts if the project goes ahead – the loss of farmland and critically endangered forest, the drawdown and potential contamination of the aquifer, the coal dust, the impacts on the global climate. And indeed, the way that Moylan has conducted himself in media interviews has I believe resulted in exposure about the Maules Creek project itself (which is currently under review by the federal Environment Minister) as well as some mainstream discussion about broader issues such as responding to the urgency of climate change, government planning laws and the rights of communities, and ethical investment.

In an opinion piece published today, Jono Moylan finishes by urging us to act:

“We are living in a dream world if we think that politicians and the business world are going to sort out the problem of coal expansion on their own. History shows us that when power relations are unevenly matched, change always comes from below. Every right we have has come from ordinary people doing extraordinary things and the time to act is rapidly running out.”

Whatever our age, ability or infirmity we can all play a part in such change from below.

Links

Climate Commission: http://climatecommission.gov.au
Frontline Action on Coal: http://frontlineaction.wordpress.com
Maules Creek Community Council: http://maulescreek.org
“Potential jailing not as scary as threat of Maules Creek mine”, opinion piece by Jonathan Moylan, 24/1/13: http://www.smh.com.au/opinion/politics/potential-jailing-not-as-scary-as-threat-of-maules-creek-mine-20130123-2d78s.html
Greenpeace climate change campaigns: http://www.greenpeace.org/australia/en/what-we-do/climate/
Australian Religious Response to Climate Change: http://www.arrcc.org.au
Uniting Earthweb: http://www.unitingearthweb.org.au

Futureproof Renewable Sustainable Energy #3

PRASEG Annual Conference 2012
http://www.praseg.org.uk/save-the-date-praseg-annual-conference/
“After EMR: What future for renewable and sustainable energy?”
31st October 2012
One Birdcage Walk, Westminster
Twitter hashtag : #PRASEG12

Addendum to Part 1 and Part 2

Dr Mayer Hillman of the Policy Studies Institute has contributed a summary of the questions that he raised at the PRASEG Annual Conference on Wednesday 31st October 2012, together with more background detail, and I am pleased to add this to the record of the day, and wish him a happy 82nd year !


PRASEG Conference 31 October 2012

Questions raised by Dr. Mayer Hillman (Policy Studies Institute) in the following sessions

The Future of Renewable and Sustainable Energy: Panel Session

I can only assume from the statements of each of the panellists of this session that their point of departure is that consumers have an inalienable right to engage in as much energy-intensive activity as they wish. Thereafter, it is the Government’s responsibility to aim to meet as much of the consequent demand as possible, subject only to doing so in the most cost-effective and least environmentally-damaging ways possible.

However as Laura Sandys pointed out in her introduction, “policy must reflect the realities of the world we live in”. The most fundamental of these realities is that the planet’s atmosphere only has a finite capacity to safely absorb further greenhouse gas emissions. Surely, that must be the point of departure for policy if we are to ensure a long-term future for life on earth. That future can only be assured by the adoption of zero-carbon lifestyles as soon as conceivably possible. Simply aiming to increase the contribution of the renewables and of the efficiency with which fossil fuels are used is clearly bound to prove inadequate as the process of climate change is already irreversible.

Demand side policy: The missing element?: Panel Session

Given that the process of climate change cannot now be reversed, at best only slowed down by our actions, continued development of means of matching the predicted huge increase in energy demand whilst minimising its contribution to climate change is seen to be the logical way forward. However, any burning of fossil fuels adds to the already excessive concentration of CO2 in the atmosphere.

The only solution now is the one advocated by the Global Commons Institute since 1996. The extent of GCI’s success, both national and international, is very apparent by looking at the Institute’s website http://www.gci.org.uk. Contraction and Convergence is the framework, that is the contraction of greenhouse gases to a safe level and their convergence to equal per capita shares across the world’s population.

Our chair for this session has been a supporter for several years. Why cannot the panellists see this to be the way ahead rather than taking small steps which, in aggregate, cannot conceivably prevent catastrophe in the longer term?

Keynote address by the Right Hon. Edward Davey, Secretary of State, DECC

The Secretary-of-State has just confirmed the fears that I expressed in the first session of this conference, namely that he sees it to be the Government’s responsibility, if not duty, to ensure that, if at all possible, the burgeoning growth in energy demand predicted for the future is met. To that end, he has just outlined stages of a strategy intended to enable comparisons to be made on “a level playing field” between different types of electricity generation as energy is increasingly likely to be supplied in the form of electricity. To do so, in his view, it is essential that a market price for the release of a tonne of CO2 emissions into the atmosphere is determined.

I have two great reservations about such a process. First, if the price is to cover all the costs incurred then, for instance, the real costs of large scale migration of vast populations fleeing the regions that will be rendered uninhabitable by climate change caused by the increase in the concentration of CO2 in the atmosphere (with more than 100 years continuous impacts) would have to be included. I fail to see how that could be realistically established, let alone its moral implications being acceptable.

Second, we know that we have already passed the stage that would have allowed us to reverse the process of global climate change – just consider the melting of the Arctic ice cap. That market price for the tonne of CO2 emissions, insofar as it could be determined, would have to rise exponentially owing to the planet’s non-negotiable capacity to safely absorb further emissions. Yet the market requires a fixed price to enable decisions affecting the future to be made.


We Need To Talk About Syria

Kofi Annan has thrown up his hands and backed away from his role as UN-Arab League special envoy to Syria tasked with a peace mission. In one sense it is all too predictable. The United Nations Security Council is divided, reflecting deep faultlines in the policy positions of the main body of the UN.

It is probably too early in the evolution of global human governance to expect military violence to be declared illegal, but at least there are voices starting to speak up demanding that there be no armed foreign intervention in Syria. The trouble is that although warfare by foreign parties in Syria has not been publicly declared, there are, by many accounts, military and security operatives of a number of external country administrations already in play inside its borders. Foreign ministers in several major countries have pledged support to either the Syrian “regime” – you know – its “ruling government”, or to the “opposition” “rebels” – otherwise known as gangs of armed thugs. Or quite possibly people from a nebulous ill-defined shadowy organisation known as “Al-Qaeda”.

There are some reports that foreign involvement was behind the bombing of members of President Bashar al-Assad’s government in July, a near “decapitation” – as Assad himself could have been easily killed in the incident, and that a reprisal attack took place several days later – possibly severely injuring or even killing Prince Bandar, newly recruited chief of intelligence in the Kingdom of Saudi Arabia – recently drafted in – apparently with a mission to topple Syria’s “regime” – you know, Syria’s “legitimate administration” – a former ambassador to the United States of America. Although this is not yet confirmed. Or denied.

Despite conciliatory moves, countries of stern influence in the United Nations continue to call for Assad to quit, for reasons that nobody really delves into. Oh yes, as a mild-mannered London-trained ex-ophthalmologist, he’s supposed to be some kind of Hitler character, killing thousands of “his own people”. This story clearly doesn’t stick very well to the man, particularly since this narrative was also recently falsely used against the former leader of Libya. Another story that hasn’t been washing is that the Syrian “regime”, you know, the “proper authorities of administration”, has been responsible for starting all the violence in Syria – but there is now plenty of evidence to the contrary. So why has it been necessary to demonise Assad ? Why has it been that – allegedly – various governments have decided to get dirty hands and stir up violence in Syria in means overt and covert ?

And with the risks to global oil supply, why has it been necessary for the United States of America and the European Union to implement and enforce an oil embargo on Syria ? I mean, you would have thought it would be in everybody’s best interests to keep the oil flowing from every source possible. But no, sanctions it is, and Syria’s had to give up a considerable amount of their production. I know, I know, before the embargo Syria’s output was only 10% of Iran’s current production (see below), but it has meant a lot for Syria’s trade balance. According to the CIA Factbook on Syria (under “Economy”), nearly three quarters of all oil produced has been for export (although it was consuming more Natural Gas than it could produce – presumably for power generation). Plus, it’s national debt put it in the bottom ranks of the world’s countries meaning it can ill-afford to become more impoverished.

So remind me again, what was the oil embargo for ? To depose Assad by making him unpopular because of a nosediving economy ? And why does Assad need to go, actually ? Nobody’s saying that the country has been run perfectly. Gruesome tales have been told of what can happen in Syria – but then, horrible things happen in every country, including in the United States of America, and yet the United Nations is not insisting that Barack Obama stand aside.

Several key cities in Syria have existed in tolerant civilisation for thousands of years. Why does war have to come to Syria ? Why is there civil war being conducted in Damascus ? Even stoics are finding this hard to bear. Wikipedia notes despairingly and ungrammatically “In the second decade of the 21th century Damascus was damaged from the ongoing Syrian Civil War”.

The more I think about it, the more I come circling back to the same theory – that the economic attack on Syria, and the now almost indisputable accounts of outside meddling that is provoking the conflict (and may have even instigated it in the first place), is simply part of a plan to make the oil and gas resources of all Middle Eastern countries available to global markets at reasonable prices. I mean, look at Iraq, whose oil production was severely hit as a result of military destruction by the international warfare community, but which is now making a splendid recovery (see below) and most of the profits are pouring into the coffers of the multinational oil and gas companies, and diesel and petrol stay relatively inexpensive. Or not, as the case may be. The plan for countries across the Middle East is probably the along the same general line – first accuse the country’s government of heinous crimes, then apply economic sanctions or energy sanctions of some kind, then apply diplomatic and media pressure, (and then, these days, send in the spooks to kick up an “Arab Spring”) and then send in the gunships or gunchoppers – attack helicopters. This narrative has been successfully applied to bring Iraq to heel, and then Libya, and now it seems Syria is being talked down the same blood-paved road, and Iran is being pushed along a parallel track.

Iran. Now there’s an interesting case. Iran is not a pushover. It has taken nearly seven years of manoeuvring to make the completely unfounded case that Iran is building (or planning to build) nuclear weapons. Iran has been enriching uranium for its stated aim of developing a civilian nuclear power program, and this has been used as the justification to impose sanctions against Iran, including an oil embargo, which is having an impact on their production (see below). Besides painting the leader of Iran as an evil dictator, the propagandists of this world also seem to be trying to wield a new stick to beat Iran with – in the form of the call to end fossil fuel subsidies. Billed as a climate change policy by the G20, it is more a punitive measure against developing countries who have been using fossil fuel subsidies to make sure their citizens can get cheap energy. If Iran is no longer permitted to subsidise energy for citizens it will be forced to sell the oil and gas abroad – a buyer’s market only too pleased to suck dry the world’s second largest oil and Natural Gas producer. That volume of oil and gas being made available on the world’s markets would definitely keep global prices of oil and gas as low as possible.

Anyway, back to Syria. Clearly, there are problems, although reports of enormous and desperate increases in violence are probably not accurate. Painting the story as increasingly agitated is a common media device to engage the readers with the situation – but if it gets too sensationalised the narrative could start to affect decisionmakers, and may lead to illegitimate and inappropriate influence being exerted from abroad. Instead of William Hague MP, British Foreign Secretary for the United Kingdom, offering tactical support to the Syrian “rebels”, he should announce an immediate diplomatic mission to the Syrian government, and the various rebel groups, offering the undoubted skills of his secret service personnel in mediating a ceasefire between the authorities and the opposition. Otherwise we could end up with NATO committing to tens of thousands of weaponised air sorties over Syria and destroying a large part of this ancient culture, just as they did with Libya. All economic and energy sanctions and embargoes against Syria should be dropped, as they are aggravating the conflict. If the international community uses the language and action of peace, then perhaps Syria can be encouraged back to the ways of peace.

In the words of Russian Foreign Minister Sergey Lavrov, “Regime change is not our profession.”





George Monbiot : Peak Agitation

My electronic mail inbox and Twitter “social media” timeline are full of people sparking and foaming about George Monbiot’s latest kow-tow to American academia. Apparently, he has discarded the evidence of many, many researchers, energy engineers and market players and poured luke-warm, regurgitated scorn on the evidence and inevitability of “Peak Oil”.

The level of agitation contradicting his stance has reached a new peak – in fact, I think I might claim this as “Peak Agitation”.

Here is just one example from Paul Mobbs, author of “Energy Beyond Oil”, and a multi-talented, multi-sectoral educator and researcher.

I initially read it in my inbox and nearly fell of my chair gobsmacked. When I had recovered from being astonished, and asked Mobbsey if I could quote him, perhaps anonymously, he wrote back :-

“No, you can quite clearly and boldly attach my name and email address to it ! And perhaps ask George for a response ?”

Sadly, George Monbiot appears to have jammed his thumbs in his ears as regards my commentary, so he is very unlikely to read this or become aware of the strength of opposition to his new positioning. But anyway – here’s for what’s it’s worth (and when it comes from Paul Mobbs, it’s worth a great deal) :-


Re: Peak oil – we were wrong. When the facts change we must change.

Hi all,

I’ve sat patiently through the various emails between you all — mainly to
take soundings of where you’re all at on this matter. In addition, over the
last few days I’ve separately received four dozen or so emails all asking
to “take on” Monbiot. I wasn’t going to reply because I’ve so many more
pressing matters to take care of, but given the weight of demands I can’t
avoid it.

I don’t see any point in “taking on” Monbiot; the points he raises, and the
debate that he has initiated, are so off beam compared to the basis of the
issues involved that it there’s no point proceeding along that line of
thought. You can’t answer a question if the question itself is not
understood!!

Let’s get one thing straight — present economic difficulties are not simply
to do with “oil”, but with the more general issue of “limits to growth”.
That’s a complex interaction of resource production, thermodynamics,
technology, and relating all of these together, economic theory. Reducing
this just to an issue of oil or carbon will fail to answer why the trends
we see emerging today are taking place. Instead we have to look towards a
process which sees energy, resources, technology and human economics as a
single system.

The problem with this whole debate is that those involved — Monbiot
included — only have the vaguest understanding of how resource depletion
interacts with the human economy. And in a similar way, the wider
environment movement has been wholly compromised by its failure to engage
with the debate over ecological limits as part of their promotion of
alternative lifestyles. Unless you are prepared to adapt to the reality of
what the “limits” issues portends for the human economy, you’re not going
to make any progress on this matter.

Monbiot’s greatest mistake is to try and associate peak oil and climate
change. They are wholly different issues. In fact, over the last few years,
one of the greatest mistakes by the environment movement generally (and
Monbiot is an exemplar of this) has been to reduce all issues to one
metric/indicator — carbon. This “carbonism” has distorted the nature of
the debate over human development/progress, and in the process the
“business as usual” fossil-fuelled supertanker has been allowed to thunder
on regardless because solving carbon emissions is a fundamentally different
type of problem to solving the issue of resource/energy depletion.

Carbon emissions are a secondary effect of economic activity. It is
incidental to the economic process, even when measures such as carbon
markets are applied. Provided we’re not worried about the cost, we can use
technological measures to abate emissions — and government/industry have
used this as a filibuster to market a technological agenda in response and
thus ignore the basic incompatibility of economic growth with the
ecological limits of the Earth’s biosphere. As far as I am concerned, many
in mainstream environmentalism have been complicit in that process; and
have failed to provide the example and leadership necessary to initiate a
debate on the true alternatives to yet more intense/complex
industrialisation and globalisation.

In contrast, physical energy supply is different because it’s a prerequisite
of economic growth — you can’t have economic activity without a
qualitatively sufficient energy supply (yes, the “quality” of the energy is
just as important as the physical scale of supply). About half of all
growth is the value of new energy supply added to the economy, and another
fifth is the result of energy efficiency — the traditional measures of
capital and labour respectively make up a tenth and fifth of growth. As yet
mainstream economic theory refuses to internalise the issue of energy
quality, and the effect of falling energy/resource returns, even though this
is demonstrably one of the failing aspects of our current economic model
(debt is the other, and that’s an even more complex matter to explore if
we’re looking at inter-generational effects).

The fact that all commodity prices have been rising along with growth for
the past decade — a phenomena directly related to the human system hitting
the “limits to growth” — is one of the major factors driving current
economic difficulties. Arguably we’ve been hitting the “limits” since the
late 70s. The difficulty in explaining that on a political stage is that
we’re talking about processes which operate over decades and centuries, not
over campaign cycles or political terms of office. As a result, due to the
impatience of the modern political/media agenda, the political debate over
limits has suffered because commentators always take too short-term a
viewpoint. Monbiot’s recent conversion on nuclear and peak oil is such an
example, and is at the heart of the report Monbiot cites in justification of
his views — a report, not coincidentally, written by a long-term opponent
of peak oil theory, working for lobby groups who promote business-as-usual
solutions to ecological issues.

Likewise, because the neo-classical economists who advise governments and
corporations don’t believe in the concept of “limits”, the measures they’ve
adopted to try and solve the problem (e.g. quantitative easing) are not
helping the problem, but merely forestall the inevitable collapse. For
example, we can’t borrow money today to spur a recovery if there will be
insufficient growth in the future to pay for that debt. Basically, whilst you
may theoretically borrow money from your grandchildren, you can’t borrow
the energy that future economic growth requires to generate that money if
it doesn’t exist to be used at that future date. Perhaps more perversely, a
large proportion of the economic actors who have expressed support for
limits are not advocating ecological solutions to the problem, they’re
cashing-in by trying to advise people how to make money out of economic
catastrophe.

Carbon emissions and resource depletion are a function of economic growth.
There is an absolute correlation between growth and carbon emissions. I
don’t just mean that emissions and the rate of depletion fall during
recessions — and thus “recessions are good for the environment”. If you
look at the rate of growth in emissions over the last 50 years, the change
in energy prices has a correlation to changes in carbon emissions as the
price of fuel influences economic activity. That’s why carbon emissions
broke with their historic trend, halving their previous growth rate, after
the oil crisis of the 1970s; and why they then rebounded as energy prices
fell during the 90s.

The idea that we can “decarbonise” the economy and continue just as before
is fundamentally flawed. I know some of you will scream and howl at this
idea, but if you look at the research on the interaction between energy and
economic productivity there is no other conclusion. Due to their high
energy density and relative ease of use, all fossil fuels have an economic
advantage over all the alternatives. That said, as conventional oil and gas
deplete, and “unconventional” sources with far lower energy returns are
brought into the market, that differential is decreasing — but we won’t
reach general parity with renewables for another decade or two.

Note also this has nothing to do with subsidies, or industrial power —
it’s a basic physical fact that the energy density of renewables is lower
than the historic value of fossil fuels. On a level playing field, renewable
energy costs more and has a lower return on investment than fossil fuels.

We do have the technology to develop a predominantly renewable human
economy, but the economic basis of such a system will be wholly different to
that we live within today. Unless you are prepared to reform the economic
process alongside changing the resource base of society, we’ll never
see any realistic change because all such “ecological” viewpoints are
inconsistent with the values at the heart of modern capitalism (that’s not
a political point either, it’s just a fact based upon how these systems
must operate). E.g., when the Mail/Telegraph trumpet that more wind power
will cost more and lower growth/competitiveness, they’re right — but the
issue here is not the facts about wind, it’s that the theory/expectation of
continued growth, which they are measuring the performance of wind against,
is itself no longer supported by the physical fundamentals of the human
economy.

The present problem is not simply “peak oil”. Even if volumetric production
remained constant, due to the falling level of energy return on investment
of all fossil fuels the effects of rising prices and falling systemic
efficiency will still disrupt the economic cycle (albeit at a slower rate
than when it is tied to a simultaneous volumetric reduction). Allied to the
problems with the supply of many industrial minerals, especially the
minerals which are key to the latest energy and industrial process/energy
technologies (e.g. rare earths, indium, gallium, etc.), what we have is a
recipe for a general systems failure in the operation of the human system.
And again, that’s not related to climate change, or simple lack of energy,
but because of the systemic complexity of modern human society, and what
happens to any complex system when it is perturbed by external factors.

The worst thing which can happen right now — even if it were possible,
which is entirely doubtful — would be a “return to growth”. The idea of
“green growth”, within the norms of neo-classical economics, is even more
fallacious due to the differing thermodynamic factors driving that system.
Instead what we have to concentrate upon is changing the political economy
of the human system to internalise the issue of limits. At present, apart
from a few scientists and green economists on the sidelines, no one is
seriously putting that point of view — not even the Green Party. And as I
perceive it from talking to people about this for the last 12 years, that’s
for a very simple reason… it’s not what people, especially the political
establishment, want to hear.

Rio+20 was an absolute failure. In fact what annoyed me the most was that
the media kept talking about the “second” Rio conference, when in fact it
was the third UNCED conference in the Stockholm conference in ’72. If you
contrast 1972 with 2012, the results of this years deliberations were worse
than the policies sketched out in the 70s ! Seriously, the environment
movement is being trounced, and as I see it that’s because they have lost
the intellectual and theoretical rigour that it possessed in the 70s and
80s. Rather than having a clear alternative vision, what they promote is
“the same but different”. Once environmentalism became a media campaign
about differing consumption options, rather than an absolute framework for
evaluating the effects of consumption, it lost its ability to dictate the
agenda — because its the ability to look forward and observe/anticipate
trends unfolding, however unwelcome those truths might be, which gives
groups political power.

Politicians have lost control of the economy because their materialist
ambitions no longer fit to the extant reality of the economic process. This
outcome was foreseen over 40 years ago by economists like Georgescu-Roegen
and Boulding but ignored, even amongst many liberals and especially the
left, for political reasons. These same principles, based around the issue
of limits, were also the founding reality of the modern environment
movement — but over the last 20 years the movement has lost this basic
grounding in physics and economics as it has moved towards an
aspirationally materialist agenda (green consumerism/sustainable
consumption, etc.).

Unless you’re prepared to talk about limits to growth, and the fact that
the economic theories developed over two centuries of unconstrained
expansion now have no relevance to a system constrained by physical limits,
then you will not solve this problem. Just as with Monbiot’s “change” on
the issue of nuclear, his failure is a matter of basic theory and
methodological frameworks, not of facts or data. Unfortunately people keep
throwing data at each other without considering that the framework within
which those facts are considered and understood has changed, and that
consequently their conclusions may not be correct; and until the movement
accepts that the rules governing the system have changed we’ll not make
progress in advancing viable solutions.

To conclude then, Monbiot’s mistake isn’t about peak oil, or climate
change, it’s a failure to internalise the physical realities of the
“limits” now driving the human system. Unless you consider the interaction
of energy, economics and pollution, any abstractions you draw about each of
those factors individually will fail to tell you how the system as a whole
is functioning. Those limits might dictate the end of “growth economics”,
but they DO NOT dictate the end of “human development”. There are many ways
we can address our present economic and environmental difficulties, but that
cannot take place unless we accept that changing our material ambitions is
a prerequisite of that process.

Let’s be clear here. The principles which drive the economy today would be
wholly alien to Adam Smith, John Stuart Mill and others who first laid down
the rules of the system two centuries ago. Likewise Marxism and similarly
derived ideas have no validity either because they were generated during an
era when there were no constraining limits. There is no “going back” to
previous theories/ideologies on this issue because we face a scenario today
which humans society — with the exception of those ancient societies who
experienced ecological overshoot (Rome, Mayans, Easter Islanders, etc.) —
have never had to face before.

We have to move forward, to evaluate and understand is the role of
ecological limits within the future human economic process and how this
changes our advocacy of “solutions”. That debate should be at the heart of
the environment movement, and the issue of limits should lead all
discussions about all environmental issues — not green/sustainable
consumerism and other measures which seek to reassure and pacify affluent
consumers. That said, especially given the demographic skew within
membership of the environment movement, we have to begin by being honest
with ourselves in accepting the “limits agenda” and what it means for the
make-up of our own lives.

In the final analysis, you cannot be an environmentalist unless you accept
and promote the idea of limits. That was at the heart of the movement from
the early 70s, and if we want to present a viable alternative to disaster
capitalism then that is once again what we must develop and promote as an
alternative.

Peace ‘n love ‘n’ home made hummus,

P.

.

“We are not for names, nor men, nor titles of Government,
nor are we for this party nor against the other but we are
for justice and mercy and truth and peace and true freedom,
that these may be exalted in our nation, and that goodness,
righteousness, meekness, temperance, peace and unity with
God, and with one another, that these things may abound.”
(Edward Burrough, 1659 – from ‘Quaker Faith and Practice’)

Paul’s book, “Energy Beyond Oil”, is out now!
For details see http://www.fraw.org.uk/mei/ebo/

Read my ‘essay’ weblog, “Ecolonomics”, at:
http://www.fraw.org.uk/mei/ecolonomics/

Paul Mobbs, Mobbs’ Environmental Investigations
email – mobbsey@gn.apc.org
website – http://www.fraw.org.uk/mei/index.shtml

Will the Green Deal Deliver ? (2)

Here is the second part of the transcription from the notes I took this morning in a seminar in the UK House of Commons. The meeting was convened by PRASEG, the Parliamentary Renewable and Sustainable Energy Group.

This transcription is based on an unverified long-hand paper-based recording of the words spoken. Items in quotation marks are fairly accurate verbatim quotations. Items in square brackets are interpolation, or explanation, and not the exact language the person used to present their thoughts.

Here are the papers supplied at the start of the meeting :  A B C D E F

CONTINUED…

[AW] How it [the Green Deal] hits the ground matters…

[Joanne Wade, Independent Consultant, UKERC]
The Green Deal is a very useful framework – a move to encourage people to pay for their own energy efficiency. The finance offering may be interesting to some. The quality [of the workmanship ? Guarantees under the Green Deal ?] is “utterly vital”. I don’t think it’s quite there. Outlining four areas (1) How the Green Deal engages (2) The low cost finance (3) Generally mainstreaming energy efficiency in peoples’ minds and (4) Fuel Poverty.

(1) Most people don’t care if they have energy efficiency [in their homes]. If we were really serious about this [our appeal would be along the lines of] you can’t sell a car with brakes that don’t work, but you can sell a house that kills you. [I just wanted to get that in up-front]. Nobody’s really cracked this yet [the messaging] is [still only] “reaching the usual suspects”. Trust is vital. Salience is key. We want people to understand this is not an add-on to all the other things they do. Community-based organisations fit the bill [we tend to trust these groups as members]. [We need to be asking] how does the Green Deal work with that ? The Green Deal providers – small to medium sized enterprises (SMEs) want to use their own brand – they are very good at marketing [and will be good at marketing the Green Deal as well]. But will that be enough to convince people ? The Assessments [that people will get at the start of the Green Deal process] will be detailed on what they can do. Some people are concerned about how much energy they use. Is that enough to go from a standing start to […] ? Are enough people going to be committed enough by the time [Green Deal is available] ? What I think we need – to prime people to be ready to accept [the Green Deal]. [The message would be] appropriate to come from local community groups. The Government is hoping for it – but no real drivers. There are examples – but how are they going to be copied ? The CERT / CES(P) results show that Local Authorities are key. Now that National Indicators 186 and 187 [From the Performance Framework – annual reporting requirements of direct and indirect emissions as a result of Local Authority operations] have been cut – there is no driver. The amount of attention has dropped. [Local Authorities are facing other problems] reducing staff and budgets.

(2) Access to low-cost finance. [The work to make this available from the Green Investment Bank is going ahead but] what about other soruces – for example mortgage providers ? In Switzerland for example, they are lending 114 billion euro every year to homeowners at low interest rates. We need to look at how to convince people. In Switzerland, people will pay more for energy efficient homes. The Green Deal needs to accept alternative forms of finance. Need to be able to access ECO [Energy Company Obligation – part of the Energy Bill – obligation energy suppliers to supply not only energy, but energy services such as energy efficiency and energy conservation] providers. We don’t know if the market will deliver [there are already grants/finance in this sector that people are not using].

(3) Can’t see the Green Deal mainstreaming. My builder – I did an [extension] and asked for 50% extra insulation and LED [Light Emitting Diodes – a very energy efficient form of lighting] – he thought I was slightly mad but now recommends LED lighting on all builds. Here’s the Green Deal. He would say – “Why should I tell people about that ?” Typical small builder. It should be that whenever anyone is doing a refurbishment they should just do it [extra insulation etc] – and so we’re back to [the big R] – regulation. [But look at the public outcry when the media considered] consequential improvements [the “Conservatory Tax”]. [Energy efficiency] “We need to make it the thing that people do.”

(4) Fuel Poverty. The money that can be coming through the ECO is £ 350 million per year (before VAT). Let’s not kid ourselves – the householders in fuel poverty are not going to take Green Deal finance. [The Climate Change Committee says] £4 billion a year is what we need to tackle fuel poverty. The Government needs to make sure that Green Deal finance is available the fuel poor (in an appropriate form) (overcoming the small potential).

[Alan Whitehead MP] How to address the LED enthusiast who isn’t a Green Deal enthusiast ? Helping “Jeff” [representative small builder in a sketch by the Secretary of State ?] getting sorted out – taking him from a sceptic to an advocate.

[Nigel Banks, Head of Energy and Sustainable Solutions, Keepmoat]

There are glass half empty people and glass half full. How can we be filling the glass ? Retrofitting communities via the Green Deal ? We do a lot of community regeneration – we’ve build [some of the] Zero Carbon homes. We renovate rather than demolish and rebuild. We get through to RP [registered providers of social housing] and Local Authorities. There has been the “boom and bust” of FiT [solar photovoltaic feed-in tariff] – Local Authorities are reticent to get involved [with the Green Deal].

With solid wall insulation [SW] we need to take up a gap. Currently, 80,000 per year are being driven by CES(P) – 94% of these are external wall. Under the Green Deal only 10,000 are projected next year – major concern.

How many measures meet the Green Deal ? The Golden Rule [the rule o Green Deal finance that the loans should come at no extra cost to the householder because the repayments are balanced by energy savings] ? [With some solid wall insulation, meeting the Golden Rule is easy, but…]

Problems with the Green Deal include : [no Green Deal finance generally available ?]. The cooling off period of 20 – 28 days. People now expect their insulation for free. How many [of the institutions of surveyors including] RICS [will value] properties with Green Deal ?

ECO is a big target – at least £540 million per year for affordable warmth. [However, this does not compare with what we have been able to offer up to now] – entire streets – entire communities [upgraded] for free at the moment – easier than under the Green Deal.

The £200 million cashback [is welcome]. Some of the Green Deal pilot schemes have been positive. It should be able to unlock private landlords [to making energy efficiency retrofits].

The Green Deal [is currently appropriate only to] a small proportion of society – it is vital to apply through communities – churches and so on – and it can tackle long-term unemployment problems.

The Green Deal [is not going to achieve major change] on its own.

[David Robson, Managing Director, InstaGroup] We do insulation, represent over 100 SMEs. How can we make the Green Deal work ? Provide employment in local communities ? 15 years of history of energy efficiency : in the early 1990s – no funding – we were doing 300,000 installs a year. Now we are doing 500,000 this year. “If anyone says subsidies haven’t worked, it’s not true.” It has got money out onto the ground quickly. The Green Deal has huge potential – removes capital barriers pre- energy efficiency [measures] – ome of the more expensive things are covered – anyone can access low cost finance – as long as it [the Green Deal] is given an opportunity to work. It also creates a framework to cover the non-domestic sector – and [landlord-owned] private domestic sector also. The Government…. [the Green Deal is] not ready. “Whatever any politician says, the legal framework is not in place until January next year.” The insulation installers and other companies are feeling they are being told “if you want to lead on the Green Deal, take it on your [own] balance sheet.” Everyone wants the Green Deal to work. We’ve invested. Our system is in place. The work we put into Green Deal finance – low cost – we think it’s important – the lower we can keep the costs of it. “If we can’t keep it [the Green Deal finance loan interest rate] below 6% we as an industry have failed.” The Green Deal is going to take time to build. Solid wall insulation – takes time to develop this industry. Hugely innovative concept. The man on the street will take some convincing “Will I be able to sell my house ?” [But] we can’t even give away insulation at the moment – then convincing people to borrow… 2013 is a real issue – how you bridge that cliff edge. Could [limit] the Green Deal getting off the ground. “For the Green Deal to be effective it needs to take the [energy efficiency] industry with it.” Small businesses are looking to us to guide them through the Green Deal. They can’t survive 6 months of losing money. Need to have some more continuity. The Green Deal does need something to help it through the transition process. How is the Green Deal good ? A robust framework. Belief in the Golden Rule – sacrosanct. Trying to sell the Green Deal will be a challenge for all of us. The Green Deal is very much underpinned by the ECO – but if the ECO is the only thing pushing, the Green Deal won’t work – constrained by the amount of money available. Regulation is key. If consumers are given sufficient time to do things it’s OK. Low cost finance is key. Access to low rates has to be competitive or the biggest players will take all the low cost finance. I’m concerned about a continuing level of political will. Generally the media are coming on-side over the Green Deal – but you only need to look at the media coverage of “consequential improvements”… It’s important that the Government recognise concerns about the Green Deal – [coming] from people who do want it to work.

[Alan Whitehead MP] Nice chance – ought to look at carbon taxes for the future – declaring part of that “tax foregone” and use that for the Carbon Reduction Commitment [CRC] : taking from the EU ETS [European Union Emissions Trading Scheme revenue] and the carbon floor price and using that to underpin the Green Deal – get that finance interest level down – a proper green tax – taxing bads and rewarding goods. “There can be no more good than making sure that everyone’s house is energy efficient” That’s all solved.

QUESTIONS FROM THE FLOOR

[Terry ? David Hunt, Eco Environments] Concerned that microgeneration is not to benefit. Concerned about companies self-marketing – as there have been misleading advertising (such as solar photovoltaic [PV] installers advertising old FiT rates). They should not mislead the public. Regulation – compared to the MCS scheme [all solar PV installers have to be registered for MCS] but still seen some awful installs. As soon as things get sold and are bad – this leads to media stories and a loss of confidence.

[Tim ? Tony Smith, Pilkington Glass] The statutory instrument that relates to double glazing and other measures – I’m looking for sunshine on a very gloomy day – double glazing in [some cases] will get no help from the Golden Rule [some discussion about the ratings of windows and replacement windows] – reduces the attraction to our industry in terms of reducing carbon emissions.

[ X from “London Doctoral Training Centre”] Homeowners… [The success of the Green Deal is] down to how people use their homes. No-one’s talked about education and how installers talk to householders…

[ X from Association for the Conservation of Energy] I’d like to hear the panel’s views on DG TAX [the European Commission Directorate Generale on Tax matters for the European Union] that the 5% VAT rate under the Green Deal is not compliant.

[Tracy Vegro] For the 5% VAT rate, “we are ready to defend that” – as it impacts on our ability to offer other options. It’s weird since we’ve just signed a very strong [European Community] Energy Efficiency Directive. Behaviour change – that’s vital. The [Green Deal loan] Assessment will require heating controls turned down and relevant behaviour. Effectively, you’re not going to pay the interest on the loan if you change your behaviour and you will see the savings increase over time. The “conversion rate” [from Green Deal pilot schemes] was 98% “saved more than I thought” – community projects. The Ombudsman will be able to strike off poor installers. “The Consumer Protection on the Green Deal is the highest in the market.” Stringent. “If it’s proved we’re too draconian, it will come down.” [Re the question from Pilkington] You are slightly misinterpreting – this is not a barrier to that [kind of upgrade to windows] – it depends on the state of the property [for example the carbon saved is less if going from an F to and E than…] It may just be your interpretation – happy to go over that with you.

[David Robson] The MCS based accreditation is only checked once a year – a real issue. The hardest thing about MCS is – is your paperwork in order ? Not if you can do the job…

[Joanne Wade] The conversation about energy use – how to get people involved. We need more messaging – this is what this really is. If all levels of government [do the messaging] more effective.

[John Sinfield] The Minister mentioned turning up the heating and hoovering [vacuuming] in your underpants. The industry is responsible to [address that in the] owner’s manual. This is how you need to treat your house differently. The tax issue – madness. If the HMRC can’t do it [convince the EC/EU] then ignore them.

[Nigel Banks] Behaviour change is vital. The Green Deal providers who don’t put that in their package will come unstuck. Not as confident about carding [system of accreditation based on individual trades persons by trade] [not relevant to your particular skill] [skill specific ?]

[Alan Whitehead] I assume the Minister meant thermal underwear.

[Colin Hines, Green New Deal Group] Trust [is important] when the finance people are having fits over FiTs. What [are you] trying to do to the market ? Is the Green Investment Bank going to kick up some money for the Green Deal ? What about the drop in the Impact Assessment from £10 billion to £ 5 billion for the Green Deal [some confusion about what this refers to]

[Roger Webb, The Heating and Hotwater Industry Council] How do we bring “Jeff” to the party ? We are keen to see heating as part of the Green Deal. There are 90,000 small tradesmen working for 60,000 small companies. Will they think the Green Deal is rubbish ? They are the leads for the Green Deal – they need training. We need to incentivise them. A voucher scheme ? Use a little of the £200 million… I really welcome the work and [interest in] bringing microgeneration [?] business into the scheme.

[Neil Marshall, National Insulation Association] Regarding solid wall insulation – the IWI / CWI confusion [Internal Wall Insulation, Cavity Wall Insulation] – what solution is proposed for hard-to-treat cavities ? The hard-to-treats we are not able to do for another year. Need to drive more cavities and lofts. The Committee on Climate Change [CCC] have reported on a need for additional incentives outside the Green Deal – driving the uptake of the Green Deal – talk of incentives and fiscals. Gap-filling. The Green Deal [should be able to cover] able-to-pay loft insulation installations, able-to-pay cavity wall insulation, hard-to-treat cavities and solid wall insulation. If we are doing 1 million in 2012 under CERT / CES(P)…if there is no Green Deal finance we can’t sell anything [after 2012]. “There is a critical need for a transitional arrangement.” We have had high level discussions with DECC that have been very useful…

[ X from Honeywell ? ] The in-situ factors. [For example, father [in law] isn’t going to replace his boiler because the payback will be after he’s dead]. Multiple length of payback [period] for any measure that’s put in – old antiquated evaluation tool. The householder asks what’s in it for them [what they can put some energy into doing] – is the longer payback [period] less attractive ?

[ X from “Shah” ? ] Not much on solar / microgeneration. [Will the Green Deal become certified ?]

[Nigel Banks] How do we do Green Deal for a boiler ? On 3rd January [2013] will the big energy companies do it themselves ? Some measures won’t perform as predicted.

[John Sinfield] “If the Green Investment Bank doesn’t provide finance for the Green Deal we are in a world of hurt”. We need to engage with “Jeff” the trusted installed. The Government needs to drive consequential improvements through – if you have a new boiler, you will have wall insulation [crazy otherwise, as all that heat will be lost through the walls]. Not seeing where my £ 1 million invested in solid wall solutions is going now. The job is not done [cavities and lofts].

[Tracy Vegro] A lot of Local Authorities don’t distinguish between good debt and bad – money is there for them – but they aren’t borrowing to invest. We are retaining HECA [Home Energy Conservation Act]. [Mentions poor opinion about the Green Investment Bank] – talking the “jib” [GIB] down. The biggest risk is the lack of confidence in the Green Deal. [Working on the terms of the] Green Deal Finance Companies [GDFC] – still see if…. [Important to take the attitude of] not talking it down. If another equity slice [is added…] We are a broad church – open to new entrants. Most work will be done [under the Green Deal] – most retrofits. [With the ActonCO2 and other Government paid communications campaigns on climate change and energy efficiency] We didn’t really get the message across – our millions spent [on advertising and public relations]. [We will] do better – more and more things will meet the Golden Rule. Come and meet our scientists.

[David Robson] Heating – a huge opportunity – not a loan with British Gas – the boiler you want – add on solar [with a Green Deal loan] linking creatively.

[ X from ? ] [Brings up the thorny problem of which technologies and measures are possible under the Green Deal’s Golden Rule] 45 points [of requirements] to meet criteria. In the future, what technologies will be viable ?

[Tracy Vegro] The RHI [Renewable Heat Incentive] is not eligible – does not meet the [Golden] Rule.

[Further exchanges – becoming somewhat stressed]

[Alan Whitehead MP] Just as things were getting exciting…[we have to close] an interesting period over the next 18 months.

Will the Green Deal Deliver ?

Here is a transcription of part of the notes I took this morning in a seminar in the UK House of Commons. The meeting was convened by PRASEG, the Parliamentary Renewable and Sustainable Energy Group.

This transcription is based on an unverified long-hand paper-based recording of the words spoken. Items in quotation marks are fairly accurate verbatim quotations. Items in square brackets are interpolation, and not the exact language the person used to present their thoughts.

[Alan Whitehead MP]
Will the Green Deal deliver ? In the last few days, in 140 character statements [Twitter], the Government have been telling has “all the hurdles have now been overcome.” But “is it really all systems go ?” What effect do we think the Green Deal will have on sustainability ? On carbon reduction goals ? Tracy Vegro from the Department of Energy and Climate Change (DECC) has been key in setting up the Green Deal.

[Tracy Vegro, DECC, Director, Green Deal]
“It’s been a busy old time for us.” We are in the final stages of passing the framework [of the Green Deal]. Just have the laws now [the legislation that is needed]. Those orders will come into force in October [2012]. There will be some parallel working – not a switch to the Green Deal all at once. I think it will open up a wider market in energy efficiency. We’ve been getting out and about [for the consultation process] – a women’s panel, an industry panel. We did it with an awful lot of help. “We’ve got to get energy efficiency moving in this country.” The CERT [Carbon Emissions Reduction Target – an energy supplier obligation] at the end of this year there will be “not an unlagged loft” [internal roof insulation over the top of ceilings]. There have been some gaps – with solid wall insulation numbers for example. “Whole swathes got nothing under CERT.” We have to to start delivering. I hope the Green Deal will drive it – with many more entrants into the [energy efficiency] market. Our roadshows with small businesses were encouraging. Beyond the framework we are trying to ensure a lot of choice. The Green Deal is going to have accredited goods and services in the whole thing. The [Office of Fair Trading] has been doing research to ensure [quality and competence] – “because at the end of the day it’s the bill payer who’s paying”. There’s a new oversight body. There will be a lot more data [coming back]. You know under the CERT, 300 million energy efficient lightbulbs were distributed [and we don’t know where they all went and whether they were all used]. We need to build confidence. Have the Local Authorities get behind the Green Deal assessments [process], and [capitalised on] community aspects. [We hope/aim to] see the market grow much faster. So far we can see that a lot of cavities got filled but [that’s only the beginning]. [We hope/aim that the Green Deal will be] driving demand. People will see their neighbours do this [and want to do it for themselves.] There’s the £200 million incentive scheme – that’s money in the bank. [Need to drive] confidence [not having people saying it’s just the] new FiT [Feed-in Tariff scheme – intended to drive solar photovoltaic uptake, but poorly managed]. The Green Deal is going to be conditional on minimum energy efficiency standards being undertaken [by those taking up the offer]. [This will determine] the order in which you do these [energy efficiency] technologies – “we need to get energy efficiency into peoples’ heads” – [where they may have been deterred previously by] mostly upfront capital. We have a new helpline. We need to make it a “no-brainer solution”. How are we going to ensure training ? People will be coming out of loft and cavity wall insulation into a new sector. These are asset skills, and a lot of money is committed. to funding [re]training and assessors. There are implications on people in existing roles – but “this is a finite market”. We’re confident in this business model – for the first time there will be competition – not just the Big 6 [energy companies : British Gas, Electricite de France (EdF), E.On, npower, Scottish Power (Business), Scottish & Southern (SSE) – companies that collectively supply 99% of the UK’s heating and lighting] delivering. It is slightly easier to explain [than other schemes]. We do need an awareness campaign – people in the industry don’t want this – they want to do their own communications to customers – to ensure demand is right. The [big] energy companies are to be mandated a lot. If the scheme is ECO (Energy Company Obligation) only – it would only guarantee a steady state [no growth in uptake of energy efficiency products]. The Impact Assessment has only been done for pure Green Deal.

[John Sinfield, Managing Director, Knauf Insulation]
CERT helped, but there is still a huge amount to deliver – need to approach the market in a different way. The deep retrofit of our housing stock – the only way to deal with Fuel Poverty and other problems. My early reaction to the Green Deal was hope, excitement, and confusion, followed by more confusion. It could deliver what no scheme has done before to 14 million homes [untouched so far]. We have to deal with the fabric [of the building] first – then deal with the occupant. The occupant is sometimes the barrier to energy efficiency. Could we use private money to leverage 20 times the amount put forward [for the Green Deal and Green Investment Bank] ? We could stop shifting 40 billion euro to the Middle East (and elsewhere) for our energy. Can we create ethical investment for pension funds ? Then I got to depression and confusion. In the draft Impact Asssessment, there would be a 93% drop in loft insulation installations and 73% drop in cavity wall insulations from Day One of the Green Deal. What’s going to happen to existing companies ? [I obviously have an interest here] I’ve invested in four factories. But it’s not only me, the Climate Change Committee (CCC) wrote to Government on the trajectory resulting not meeting our carbon cap. It’s not just insulation manufacturers and installers. I’m trying to understand where the policy’s going. Why are DECC against cheaper measures ? The Minister says that the “loft job” is nearly done. But DECC themselves say that 9 million lofts have inadequte insulation. Frankly, I doubt I’ll see that by the the end of the year. There are 7.5 million cavities to fill. The consultation on the Green Deal came back with good changes – but little to address the cliff edge – the significant drop in lofts and cavities [at the changeover to the Green Deal]. I’m veering between hope and despair. I hope the Government, deep down, really want this. They need to do more to drive this programme. I wouldn’t invest money if I didn’t think [they were really behind this.] What about other options ? Stamp Duty [on sale of properties], a carbon tax, a Local Authority mandate ? If the Government can drive the value of the Green Deal up – it makes it more attractive [to engage in the sector]. My hope is balanced off by a sense of despair – the mechanism will not be ready in time. The so-called “soft launch” of the Green Deal [is inadequate] – really has to be up and running by 1st January [2013]. The Green Deal loans have to have affordable interest rates. The Green Deal finance company is 9 months away from offering comprehensive finance – and how are they going to receive the money from the Green Investment Bank ? If the interest rate of the Green Deal loans are 7.5% (6% – 8%) then only 7% of the population will take them up. Where’s the market ? What’s going to drive the market ? Where we are challenged – the Green Deal doesn’t feel ready. The environment to work within – sorted. But the mechanism – for example the Green Deal finance – not ready. Need to bridge the gap. Do we need to extend the CERT / CES(P) (Community Energy Saving Programme) ? A bridge until a competitive rate of interest is available. If the Government is going to drive the deep retrofit, it needs to drive the take up. Putting in place the framework is not going to sell this scheme. Some [companies] here are ready to market this scheme – but all parts need to be there. If the Green Deal is not ready – when ?

Alan Whitehead MP
“So, an amber light there…”

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

Cheering on the Occupation

I am deeply concerned about the ramping up in rhetoric about Iran’s imagined nuclear weapons programme. I say “imagined” because there is no evidence pointing towards Iran doing anything other than they say they are doing – following a civilian nuclear power programme.

In fact, this bluster has nothing at all to do with the power of atoms, peaceful or otherwise. From my point of view, it’s all about controlling the price of fuel.

Economic sanctions against Iran are being considered on the basis of the International Atomic Energy Agency report on Iran’s nuclear ambitions and activities, and this I would consider highly deceitful. The “international community” may well impose further trade embargoes on Iran, but the underlying reason for such action has nothing to do with nuclear suspicion. I believe that applying economic sanctions against Iran is all about forcing Iran to export more fossil fuel – principally Natural Gas – and to do so cheaply.

In fact, there is a two-pronged assault on Iran’s energy sovereignty taking place – not only are economic sanctions already in place, there are calls from the highest top table for an end to fossil fuel subsidies. People have been cheering this on because at first glance it looks like a carbon control policy, but in reality it will lead to Western economic occupation of Iranian hydrocarbons – an occupation, it is hoped, to be accomplished without finding some excuse for a military intervention.

Continue reading Cheering on the Occupation

The Problem of Powerlessness #2

On Wednesday, I received a telephone call from an Information Technology recruitment consultancy. They wanted to know if I would be prepared to provide computer systems programming services for NATO.

Detecting that I was speaking with a native French-speaker, I slipped into my rather unpracticed second language to explain that I could not countenance working with the militaries, because I disagree with their strategy of repeated aggression.

I explained I was critical of the possibility that the air strikes in Libya were being conducted in order to establish an occupation of North Africa by Western forces, to protect oil and gas interests in the region. The recruitment agent agreed with me that the Americans were the driving force behind NATO, and that they were being too warlike.

Whoops, there goes another great opportunity to make a huge pile of cash, contracting for warmongers ! Sometimes you just have to kiss a career goodbye. IT consultancy has many ethical pitfalls. Time to reinvent myself.

I’ve been “back to school” for the second university degree, and now I’m supposed to submit myself to the “third degree” – go out and get me a job. The paucity of available positions due to the poor economic climate notwithstanding, the possibility of ending up in an unsuitable role fills me with dread. One of these days I might try to write about my experiences of having to endure several kinds of abuse whilst engaged in paid employment : suffice it to say, workplace inhumanity can be unbearable, some people don’t know what ethical behaviour means, and Human Resources departments always take sides, especially with vindictive, manipulative, micro-managers. I know what it’s like to be powerless.

Continue reading The Problem of Powerlessness #2

A Green Van for all the People

Green Jobs ! Green Energy !

The toxic legacy of mined energy

We are stardust ? Well, not quite. As carbon-based lifeforms we’re actually the offspring of a young sun, composed of the lighter elements, with a low concentration of a few transition metals essential for our health and vitality. Irn Bru, anyone ?

The actual products of exploding old stars that got lodged in the crusty skin of the accreting Earth are often quite toxic to us. Over millions of years, heavy and radioactive elements, being of no use to the ecosystem, have been deposited at the bottom of lakes, seabeds, and ended up lodged in seams of coal, and caverns of petroleum oil and Natural Gas. Uranium ores and other nasties have been overlain by forests and deserts, and only rarely vent, like radon, from Vulcan’s infernal lairs.

And what do humans do ? We dig this stuff up to burn or fission for energy, and when we do it creates toxic waste, that hurts us, and the life around us. Why are we surprised that mercury from the coal power industry is killing fish and harming children ? Why is it a shock that the tailing ponds from mining tar and oil sands are devastating pristine wilderness and waterways ?

Continue reading The toxic legacy of mined energy

Cool poverty

They’ve never had it so cold. The British have just shivered through another long, centrally heated winter, and people are receiving enormous gas bills. Social campaigners and parliamentarians are rightly concerned that a clutch of harsher winters and rising energy costs could reverse gains made in tackling fuel poverty. The UK Government’s recent Budget announcement to reduce fuel poverty assistance payments is another blow to maintaining decent and warm homes for the vulnerable, the elderly and children. Proposals to cap the amount that energy companies can charge people in their bills is welcomed by some, but feared by others – as it could jeopardise energy company funding for the Green Deal – a free-to-the-consumer loan scheme for insulation and renewable energy installation. And there’s another problem waiting in the wings. Unlike the United States and Australia, the average British home doesn’t have air conditioning, and it costs real money to install it. If outsized summer heatwaves continue to pop up more frequently in Europe, UK households will face “cool poverty” in summer – a lack of cooling.

Continue reading Cool poverty

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.

Continue reading The “red tape” challenge

Green Peace

Peace would be truly green – besides eliminating a vast source of greenhouse emissions and environmental toxicity, the end to extensively militarised conflict would no doubt singlehandedly rescue the world’s major economies from the “double dip” or “permanent implosion”.

Thousands of marchers in London, England today repeated the public demands to de-escalate the “war on terror” :-

http://www.guardian.co.uk/uk/2010/nov/20/protesters-march-against-afghanistan-war-london

http://www.bbc.co.uk/news/uk-11803918

http://news.sky.com/skynews/Article/201009115820164

Continue reading Green Peace

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.

They Shall Beat Their Destroyers Into Marine Turbines

OK, so it’s a ham paraphrase on a Biblical quotation, but as the world loses its appetite for big military assault (particularly for no discernible just reason), we could see more weapons manufacturers turn their metal-working skills over to the production of Renewable Energy :-

http://www.guardian.co.uk/environment/2010/jul/25/bae-green-energy-project

“BAE to assist green energy project : Britain’s biggest arms manufacturer will contribute its marine engineering expertise to a wave-power project off Orkney : Terry Macalister, guardian.co.uk, Sunday 25 July 2010”

Isaiah 2:4 (New International Version) : “He will judge between the nations and will settle disputes for many peoples. They will beat their swords into plowshares and their spears into pruning hooks. Nation will not take up sword against nation, nor will they train for war anymore.”

The great energy revival could contribute to world peace, after the fading of a Century of competition and conflict over Fossil Fuel resources.

Climate Union : Sharing Principles

Image Credit : Gilbert & George, “Nettle Dance”, White Cube

I’m in the Climate Union. Are You ?

Soon we could all be, if the expansionist plans of a group of social campaigners come to fruition.

Taking in the unions, faith communities and the usual rag-tag bunch of issues activists, the Climate Union aims to establish itself as a political force for Low Carbon.

First of all, however, it has to tackle the uneasy and prickly problem of the exact name of the movement, and the principles under which it will operate.

The flag has been flown : a set of principles has been circulated for discussion amongst the “Climate Forum”. I cannot show you the finalised document yet, but I can offer you my comments (see below).

If you want to comment on the development of this emerging entity, please contact : Peter Robinson, Campaign against Climate Change, mobile/cell telephone in the UK : 07876595993.


Comments on the Climate Forum Principles
Jo Abbess
28 June 2010

I am aware that my comments are going to be a little challenging. I made similar comments during the review of the ClimateSafety briefing, which were highly criticised.

I expect you to be negative in response to what I say, but I think it is necessary to make sure the Climate Forum does not become watered-down, sectorally imprisoned and politically neutered, like so many other campaigns.

Continue reading Climate Union : Sharing Principles

Hot Start

Hot Start
by Jo Abbess
04 February 2010
An assessment of the technology and policy for de-Carbonising the Energy systems of developed societies

1. The Aligned and Related Risks from Climate Change and Peak Fossil Fuels

1a. Key Conclusions
The Low Carbon Transition in Energy in developed countries is inevitable (Climate Change Act, 2008; EU Package, 2008; UNFCCC Kyoto Protocol, 1997); yet policy thinking and decision-making seems to still focus on the debateable “how to do it” rather than the more essential “how long do we have ?” If the window of opportunity for industrialised society to de-Carbonise proves to foreshorten rapidly, then the next few decades could be a story of economic collapse, unless there is concentrated, concerted endeavour (Sustainable Business, 2010).

Continue reading Hot Start