Nigel Lawson : Unreferenced & Ill-Informed ?

An appeal was issued by David Andrews of the Claverton Energy Research Group, to respond to the Bath Lecture given by Nigel Lawson :-

“Dear All, this group is not meant to be a mere venting of frustration and opinion at what is perceived to be poor policy. So what would be really useful is to have the Lawson spiel with the countering fact interspersed. I can then publish this on the Claverton web site which does get a lot of hits and appears to be quite influential. Can I therefore first thank Ed Sears for making a good effort, but ask him to copy his bits into the Lawson article at the appropriate point. Then circulate it and get others to add in bits. Otherwise these good thoughts will simply be lost in the wind. Dave”

My reply of today :-

“Dear Dave, I don’t have time at the moment to answer all of Nigel Lawson’s layman ruminations, but I have written a few comments here (see below) which begin to give vent to frustration typical of that which his tactics cause in the minds of people who have some acquaintance with the actual science. The sheer volume of his output suggests an attempt to filibuster proper debate rather than foster it. To make life more complicated to those who wish to answer his what I think are absurd notions, he gives no accurate references to his supposed facts or cites any accredited, peer-reviewed documentation that could back up his various emotive generalisations and what appear to be aspersions. Regards, jo.”

Nigel Lawson: The Bath Lecture

Climate Alarmism Is A Belief System And Needs To Be Evaluated As Such

Nigel Lawson: Cool It

Standpoint, May 2014

This essay is based on the text of a speech given to the Institute for Sustainable Energy and the Environment at the University of Bath.

There is something odd about the global warming debate — or the climate change debate, as we are now expected to call it, since global warming has for the time being come to a halt.

[ : Contrary to what Nigel Lawson is claiming, there is no pause – global warming continues unabated. Of this there can be no doubt. All of the data that has been assessed – and there is a lot of it – confirms the theoretical framework – so it is odd that Nigel Lawson states otherwise, seemingly without any evidence to substantiate his assertion. Nigel Lawson appears to be taking advantage of fluctuations, or short-term wrinkles, in the records of air temperatures close to the Earth, to claim that up is down, dark is light and that truth is in error. Why are temperatures in the atmosphere close to the Earth’s surface, or “surface temperatures”, subject to variability ? Because heat can flow through matter, is the short answer. The longer answer is the interplay between the atmosphere and the oceans, where heat is being transfered between parts of the Earth system under conditions of flows such as the movement of air and water – what we call winds and ocean currents. There are detectable patterns in the flows of air and water – and some are oscillatory, so the temperature (taken at any one time) may appear to wriggle up and down (when viewed over a period of time). Despite these wobbles, the overall trend of temperature over several decades has been reliably detected. Despite Nigel Lawson’s attention to air temperatures, they are probably the least significant in detecting global warming, even though the data shows that baseline air temperatures, averaged over time, are rising. The vast proportion of heat being added to the Earth system is ending up in the oceans :-
and the rise in ocean temperatures is consistent :-
which indicates that circulatory patterns of heat exchange in the oceans have less effect on making temperatures fluctuate than the movement of masses of air in the atmosphere. This is exactly what you would expect from the study of basic physics. If you give only a cursory glance at the recent air temperatures at the surface of the Earth, you could think that temperatures have levelled off in the last decade or so, but taking a longer term view easily shows that global warming continues to be significant :-
What is truly astonishing about this data is that the signal shows through the noise – that the trend in global warming is easily evident by eye, despite the wavy shakes from natural variability. For Nigel Lawson’s information, the reason why we refer to climate change is to attempt to encompass other evidence in this term besides purely temperature measurements. As the climate changes, rainfall patterns are altering, for example, which is not something that can be expressed in the term global warming. ]

I have never shied away from controversy, nor — for example, as Chancellor — worried about being unpopular if I believed that what I was saying and doing was in the public interest.

But I have never in my life experienced the extremes of personal hostility, vituperation and vilification which I — along with other dissenters, of course — have received for my views on global warming and global warming policies.

For example, according to the Climate Change Secretary, Ed Davey, the global warming dissenters are, without exception, “wilfully ignorant” and in the view of the Prince of Wales we are “headless chickens”. Not that “dissenter” is a term they use. We are regularly referred to as “climate change deniers”, a phrase deliberately designed to echo “Holocaust denier” — as if questioning present policies and forecasts of the future is equivalent to casting malign doubt about a historical fact.

[ : Climate change science is built on observations : all historical facts. Then, as in any valid science, a theoretical framework is applied to the data to check the theory – to make predictions of future change, and to validate them. It is an historical fact that the theoretical framework for global warming has not been falsified. The Earth system is warming – this cannot be denied. It seems to me that Nigel Lawwon usurps the truth with myth and unsubstantiated rumour, casting himself in the role of doubting dissenter, yet denying the evidence of the data. He therefore self-categorises as a denier, by the stance of denial that he takes. His denial is also an historical fact, but calling him a denier is not a value judgement. It is for each person to ascribe for themselves a moral value to the kind of denial he expresses. ]

The heir to the throne and the minister are senior public figures, who watch their language. The abuse I received after appearing on the BBC’s Today programme last February was far less restrained. Both the BBC and I received an orchestrated barrage of complaints to the effect that it was an outrage that I was allowed to discuss the issue on the programme at all. And even the Science and Technology Committee of the House of Commons shamefully joined the chorus of those who seek to suppress debate.

[ : Considering the general apathy of most television viewers, it is therefore quite refreshingly positive that so many people decided to complain about Nigel Lawson being given a platform to express his views about climate change, a subject about which it seems he is unqualified to speak with authority of learning. He may consider the complaints an “orchestrated barrage”. Another interpretation could be that the general mood of the audience ran counter to his contributions, and disagreed with the BBC’s decisiont to permit him to air his contrarian position, to the point of vexation. A parallel example could be the kind of outrage that could be expressed if Nigel Lawson were to deny that the Earth is approximately spherical, that gravity means that things actually move out to space rather than towards the ground, or that water is generally warmer than ice. He should expect opposition to his opinions if he is denying science. ]

In fact, despite having written a thoroughly documented book about global warming more than five years ago, which happily became something of a bestseller, and having founded a think tank on the subject — the Global Warming Policy Foundation — the following year, and despite frequently being invited on Today to discuss economic issues, this was the first time I had ever been asked to discuss climate change. I strongly suspect it will also be the last time.

The BBC received a well-organised deluge of complaints — some of them, inevitably, from those with a vested interest in renewable energy — accusing me, among other things, of being a geriatric retired politician and not a climate scientist, and so wholly unqualified to discuss the issue.

[ : It is a mark of integrity to put you money where your mouth is, not an indicator on insincerity. It is natural to expect people who accept climate change science to be taking action on carbon dioxide emissions, which includes investment in renewable energy. ]

Perhaps, in passing, I should address the frequent accusation from those who violently object to any challenge to any aspect of the prevailing climate change doctrine, that the Global Warming Policy Foundation’s non-disclosure of the names of our donors is proof that we are a thoroughly sinister organisation and a front for the fossil fuel industry.

As I have pointed out on a number of occasions, the Foundation’s Board of Trustees decided, from the outset, that it would neither solicit nor accept any money from the energy industry or from anyone with a significant interest in the energy industry. And to those who are not-regrettably-prepared to accept my word, I would point out that among our trustees are a bishop of the Church of England, a former private secretary to the Queen, and a former head of the Civil Service. Anyone who imagines that we are all engaged in a conspiracy to lie is clearly in an advanced stage of paranoia.

The reason why we do not reveal the names of our donors, who are private citizens of a philanthropic disposition, is in fact pretty obvious. Were we to do so, they, too, would be likely to be subject to the vilification and abuse I mentioned earlier. And that is something which, understandably, they can do without.

That said, I must admit I am strongly tempted to agree that, since I am not a climate scientist, I should from now on remain silent on the subject — on the clear understanding, of course, that everyone else plays by the same rules. No more statements by Ed Davey, or indeed any other politician, including Ed Milliband, Lord Deben and Al Gore. Nothing more from the Prince of Wales, or from Lord Stern. What bliss!

But of course this is not going to happen. Nor should it; for at bottom this is not a scientific issue. That is to say, the issue is not climate change but climate change alarmism, and the hugely damaging policies that are advocated, and in some cases put in place, in its name. And alarmism is a feature not of the physical world, which is what climate scientists study, but of human behaviour; the province, in other words, of economists, historians, sociologists, psychologists and — dare I say it — politicians.

[ : Au contraire, I would say to Nigel Lawson. At root, climate change is very much a scientific issue. Science defines it, describes it and provides evidence for it. Climate change is an epistemological concern, and an ontological challenge. How we know what we know about climate change is by study of a very large number of results from data collection and other kinds of research. The evidence base is massive. The knowledge expressed in climate change science is empirical – based on observations – which is how we are sure that what we know is assured. There is still scope for uncertainty – will the surface temperatures rise by X plus or minus some Y, owing to the dynamic between the atmosphere, the oceans, the ice cover and the land masses ? The results of the IPCC assessments are that we pretty much know what X is, and we have an improved clarity on a range of values for Y. The more science is done, the clearer these numbers emerge. Knowledge increases as more science is done, which is why the IPCC assessments are making firmer conclusions as time passes. Climate change science does not make value judgements on its results. It concludes that sea levels are rising and will continue to rise; that rainfall patterns are changing and will continue to change; that temperatures are rising and will continue to rise under current economic conditions and the levels of fossil fuel use and land use. Science describes the outcomes of these and other climate changes. It is for us as human beings, with humanity in our hearts, to place a meaning on predicted outcomes such as crop and harvest failures, displacement of peoples, unliveable habitats, loss of plant and animal species, extreme weather. You cannot take the human out of the scientist. Of course scientists will experience alarm at the thought of these outcomes, just as the rest of society will do. The people should not be denied the right to feeling alarm. ]

And en passant, the problem for dissenting politicians, and indeed for dissenting climate scientists for that matter, who certainly exist, is that dissent can be career-threatening. The advantage of being geriatric is that my career is behind me: there is nothing left to threaten.

[ : Climate change science is not something you can “dissent” from if you are at all versed in it. For those who question any part of climate change science from inside the community of those who have appropriate knowledge and learning, their position is not one of dissent, but of being unable to assent completely to the conclusions of their peers. They lack a capacity to fully assent to the results of other people’s research because their own research indicates otherwise. As responsible members of the science community, they would then put their research conclusions and the research conclusions of others to the test. There is an integrity in this kind of questioning. It is a valid position, as long as the questions are posed in the language of scientific enquiry, and answered with scientific methods. For example, the Berkeley BEST team had questions about the evidence of global warming and set out to verify or falsify the results of others. Their own research led them to become convinced that their peers had been correct in the their conclusions. This is how science comes to consensus. Nigel Lawson should fund research in the field if he wishes to be taken seriously in denying the current consensus in climate change science. Instead of which, he invests in the publication of what appears to be uncorroborated hearsay and emotive politicking. ]

But to return: the climate changes all the time, in different and unpredictable (certainly unpredicted) ways, and indeed often in different ways in different parts of the world. It always has done and no doubt it always will. The issue is whether that is a cause for alarm — and not just moderate alarm. According to the alarmists it is the greatest threat facing humankind today: far worse than any of the manifold evils we see around the globe which stem from what Pope called “man’s inhumanity to man”.

[ : Nigel Lawson doesn’t need to tell anyone that weather is changeable and that climate changes. They can see it for themselves if they care to study the data. Climate change science has discovered that the current changes in the climate are unprecedented within at least the last 800,000 years. No previous period of rapid climate change in that era has been entirely similar to the changes we are experiencing today. This is definite cause for alarm, high level alarm, and not moderate. If there is a fire, it is natural to sound the alarm. If there is a pandemic, people spread the news. If there is a risk, as human beings, we take collective measures to avoid the threat. This is normal human precautionary behaviour. It is unreasonable for Nigel Lawson to insist that alarm is not an appropriate response to what is patently in the process of happening. ]

Climate change alarmism is a belief system, and needs to be evaluated as such.

[ : Belief in gravity, or thinking that protein is good to eat are also belief systems. Everything we accept as normal and true is part of our own belief system. For example, I believe that Nigel Lawson is misguided and has come to the wrong conclusions. The evidence lies before me. Is my opinion to be disregarded because I have a belief that Nigel Lawson is incorrect ? ]

There is, indeed, an accepted scientific theory which I do not dispute and which, the alarmists claim, justifies their belief and their alarm.

This is the so-called greenhouse effect: the fact that the earth’s atmosphere contains so-called greenhouse gases (of which water vapour is overwhelmingly the most important, but carbon dioxide is another) which, in effect, trap some of the heat we receive from the sun and prevent it from bouncing back into space.

Without the greenhouse effect, the planet would be so cold as to be uninhabitable. But, by burning fossil fuels — coal, oil and gas — we are increasing the amount of carbon dioxide in the atmosphere and thus, other things being equal, increasing the earth’s temperature.

But four questions immediately arise, all of which need to be addressed, coolly and rationally.

First, other things being equal, how much can increased atmospheric CO2 be expected to warm the earth? (This is known to scientists as climate sensitivity, or sometimes the climate sensitivity of carbon.) This is highly uncertain, not least because clouds have an important role to play, and the science of clouds is little understood. Until recently, the majority opinion among climate scientists had been that clouds greatly amplify the basic greenhouse effect. But there is a significant minority, including some of the most eminent climate scientists, who strongly dispute this.

[ : Simple gas chemistry and physics that is at least a century old is evidence that carbon dioxide allows sunlight to pass right through to warm the Earth, which then emits infrared light because it has warmed up. When the infrared radiation is emitted, the Earth cools down. Infrared is partially blocked by carbon dioxide, which absorbs it, then re-radiates it, partially back to the Earth, which warms up again. Eventually, the warming radiation will escape the carbon dioxide blanket, but because of this trapping effect, the net result is for more heat to remain in the atmosphere close to the Earth’s surface than you would expect. This is the main reason why the temperature of the Earth’s surface is warmer than space. As carbon dioxide accumulates in the atmosphere, the warming effect will be enhanced. This is global warming and it is undisputed by the overwhelming majority of scientists. Climate sensitivity, or Equilibrium Climate Sensitivity (ECS) is a calculated measure of the total temperature change that would be experienced (after some time) at the surface of the Earth for a doubling of atmospheric carbon dioxide concentrations compare to the pre-industrial age. The Transient Climate Response (TCR) is a measure of the temperature change that would be experienced in the shorter-term for a doubling of atmospheric carbon dioxide concentrations. The TCR can be easily calculated from basic physics. The shorter-term warming will cause climate change. Some of the changes will act to cool the Earth down from the TCR (negative feedbacks). Some of the changes will act to heat the Earth up from the TCR (positive feedbacks). These are some disagreements about the ECS, such as the net effects from the fertilisation effect of carbon dioxide on plant growth, the net effects of changes in weather and cloud systems, and the net effects of changes in ocean and atmospheric circulation. However, evidence from the deep past (paleoclimatology) is helping to determine the range of temperatures that ECS could be. ]

Second, are other things equal, anyway? We know that, over millennia, the temperature of the earth has varied a great deal, long before the arrival of fossil fuels. To take only the past thousand years, a thousand years ago we were benefiting from the so-called medieval warm period, when temperatures are thought to have been at least as warm, if not warmer, than they are today. And during the Baroque era we were grimly suffering the cold of the so-called Little Ice Age, when the Thames frequently froze in winter and substantial ice fairs were held on it, which have been immortalised in contemporary prints.

[ : The Medieval Warming Period (or Medieval Warm Period) was just a blip compared to the current global warming of the last 150 years. And the Little Ice Age was also a minor anomaly, being pretty much confined to the region of Europe, and some expect could have become the Rather Much Longer Icy Period had it not been for the use of fossil fuels, which warmed Europe up again. Burning coal and other fossil fuels releases carbon that would have originally been in the atmosphere in the form of carbon dioxide millions of years ago, that trees and other plants used to grow. Geological evidence shows that surface temperatures at those times were warmer than today. ]

Third, even if the earth were to warm, so far from this necessarily being a cause for alarm, does it matter? It would, after all, be surprising if the planet were on a happy but precarious temperature knife-edge, from which any change in either direction would be a major disaster. In fact, we know that, if there were to be any future warming (and for the reasons already given, “if” is correct) there would be both benefits and what the economists call disbenefits. I shall discuss later where the balance might lie.

[ : The evidence from the global warming that we have experienced so far since around 1880 is almost universally limiting in terms of the ability of species of animals and plants to survive. There are tiny gems of positive outcomes, compared to a sand pit of negatives. Yes, of course it matters. The mathematics of chaos with strong perturbations to any system do not permit it to coast on a precarious knife-edge for very long. Sooner or later there will be a major alteration, and the potential for some milder probable outcomes will collapse. ]

And fourth, to the extent that there is a problem, what should we, calmly and rationally, do about it?

[ : The most calm and rational thing to do is to compile all the evidence and report on it. Oh yes, we’ve already done that. It’s called the Intergovernmental Panel on Climate Change or IPCC. The concluisons of the compilation of over 100 years of science is that global warming is real, and it’s happening now, and that there is a wide range of evidence for climate change, and indicators that it is a major problem, and that we have caused it, through using fossil fuels and changing how we use land. ]

It is probably best to take the first two questions together.

According to the temperature records kept by the UK Met Office (and other series are much the same), over the past 150 years (that is, from the very beginnings of the Industrial Revolution), mean global temperature has increased by a little under a degree centigrade — according to the Met Office, 0.8ºC. This has happened in fits and starts, which are not fully understood. To begin with, to the extent that anyone noticed it, it was seen as a welcome and natural recovery from the rigours of the Little Ice Age. But the great bulk of it — 0.5ºC out of the 0.8ºC — occurred during the last quarter of the 20th century. It was then that global warming alarmism was born.

[ : Nigel Lawson calls it “alarmism”. I call it empirical science. And there are many scientific explanations for what he calls “fits and starts”, it’s just that they’re written in research papers, so he will probably never read them, going on his lack of attention to research publications in the past. ]

But since then, and wholly contrary to the expectations of the overwhelming majority of climate scientists, who confidently predicted that global warming would not merely continue but would accelerate, given the unprecedented growth of global carbon emissions, as China’s coal-based economy has grown by leaps and bounds, there has been no further warming at all. To be precise, the latest report of the Intergovernmental Panel on Climate Change (IPCC), a deeply flawed body whose non-scientist chairman is a committed climate alarmist, reckons that global warming has latterly been occurring at the rate of — wait for it — 0.05ºC per decade, plus or minus 0.1ºC. Their figures, not mine. In other words, the observed rate of warming is less than the margin of error.

[ : It is not valid for Nigel Lawson to claim that there has been “no further warming at all”. Heat accumulation continues to be documented. Where is Nigel Lawson’s evidence to support his claim that the IPCC is a “deeply flawed body” ? Or is that another one of his entirely unsubstantiated dismissals of science ? Does he just fudge the facts, gloss over the details, pour scorn on scientists, impugn the academies of science, play with semantics, stir up antipathy, wave his hands and the whole history of science suddenly vanishes in a puff of dismissive smoke ? I doubt it ! Nigel Lawson says “the observed rate of warming is less than the margin of error.” This is ridiculous, because temperature is not something that you can add or subtract, like bags of sugar, or baskets of apples, or Pounds Sterling to the Global Warming Policy Foundation’s public relations fund. Two degrees Celsius, or Centigrade, is not twice as warm as one degree Celsius. 30 degrees C doesn’t indicate twice as much heat as 15 degrees C, or require twice as much heating. The range of figures that Nigel Lawson is quoting, minus 0.05 degrees C plus or minus 0.1 degrees C, that is, somewhere between a cooling of 0.05 degrees C and a warming of 0.15 degrees C, is a calculation of temperature trends averaged over the whole Earth’s surface for the last 15 years :- (Box 9.2)
It is not surprising that over such a short timescale it might appear that the Earth as experienced a mild cooling effect. In the last 15 years there have been a couple of years far hotter than average, and these spike the calculated trend. For example, 1998 was much hotter than the years before or after it, so if you were just to compare 1998 with 2008, it would look like the Earth is cooling down. But who would be foolish enough to look at just two calendar years of the data record on which to base their argument ? The last 15 years have to be taken in context. In “Climate Change 2013 : The Physical Science Basis”, the IPCC report from Working Group 1, in the Summary for Policymakers, page 5, Section B1, the IPCC write :-
“In addition to robust multi-decadal warming, global mean surface temperature exhibits substantial decadal and interannual variability […] Due to natural variability, trends based on short records are very sensitive to the beginning and end dates and do not in general reflect long-term climate trends. As one example, the rate of warming over the past 15 years (1998–2012; 0.05 [–0.05 to 0.15] °C per decade), which begins with a strong El Niño, is smaller than the rate calculated since 1951 (1951–2012; 0.12 [0.08 to 0.14] °C per decade).” (El Niño is a prominent pattern of winds and ocean currents in the Pacific Ocean with two main states – one that tends to produce a warming effect on the Earth’s surface temperatures, and the other, La Niña, which has a general cooling effect.) ] In other words, in the last fifteen years, the range of rate of change of temperature is calculated to be somewhere between the surface of the planet cooling by 0.05 degrees Centigrade, up to warming by 0.15 degrees Centigrade :-
However, this calculation of a trend line does not take account of three things. First, in the last decade or so, the variability of individual years could mask a trend, but relative to the last 50 years, everything is clearly hotter on average. Secondly, temperature is not a “discrete” quantity, it is a continuous field of effect, and it is going to have different values depending on location and time. The temperature for any January to December is only going to be an average of averages. If you were to measure the year from March to February instead, the average of averages could look different, because of the natural variability. Thirdly, there are lots of causes for local and regional temperature variability, all concurrent, so it is not until some time after a set of measurements has been taken, and other sets of measurements have been done, that it is possible to determine that a substantial change has taken place. ]

And that margin of error, it must be said, is implausibly small. After all, calculating mean global temperature from the records of weather stations and maritime observations around the world, of varying quality, is a pretty heroic task in the first place. Not to mention the fact that there is a considerable difference between daytime and night-time temperatures. In any event, to produce a figure accurate to hundredths of a degree is palpably absurd.

[ : Nigel Lawson could be said to mislead in his explanation of what “a figure accurate to hundredths of a degree” implies. Temperature is measured on an arbitrarily decided scale. To raise the whole of the Earth surface temperatures by 1 degree Celsius requires a lot of extra trapped energy. The surface temperature of the Earth is increasing by the absorption of energy that amounts roughly to 2 trillion Hiroshima atombic bombs since 1998, or 4 Hiroshimas a second. That is not a small number, although it has to be seen in the full context of the energy flows in and out of the Earth system :-
Nigel Lawson credits the global temperature monitoring exercise as “heroic”, but then berates its quality. However, climate change scientists do already appreciate that there are differences between daytime and nighttime temperatures – it is called the diurnal range. Besides differences between years, it is known that there are also differences between seasons, and latitudes, and climatic zones. Scientists are not claiming an absolute single value for the temperature of the Earth, accurate to within hundredths of a degree – that’s why they always give a margin of error. What is astonishing from reviews of the data is something that Nigel Lawson has completely missed. Global warming appears to have fractal resolution – that is – at whatever geographical scale you resolve the data, the trend in most cases appears to be similar. If you take a look at some of the websites offering graphs, for example :-
the global warming trend is seen to be generally similar when averaged locally, regionally or at the global scale. This is an indicator that the global warming signal is properly being detected, as these trend lines are more or less what you would expect from basic physics and chemistry – the more carbon dioxide in the air, the more heat gets trapped, and the rate of carbon dioxide accumulation in the atmosphere has seen similar trendlines :- ]

The lessons of the unpredicted 15-year global temperature standstill (or hiatus as the IPCC calls it) are clear. In the first place, the so-called Integrated Assessment Models which the climate science community uses to predict the global temperature increase which is likely to occur over the next 100 years are almost certainly mistaken, in that climate sensitivity is almost certainly significantly less than they once thought, and thus the models exaggerate the likely temperature rise over the next hundred years.

[ : I repeat : there is no pause. The IPCC are not claiming that global warming has stopped, only that there is an apparent “hiatus” in global surface temperature averages. Some scientists have concluded from their work that Climate Sensitivity is less than once feared. However, Climate Sensitivity is calculated for an immediate, once-only doubling of carbon dioxide in the atmosphere, whereas the reality is that carbon dioxide is continuing to build up in the atmosphere, and if emissions continue unabated, there could be a tripling or quadrupling of carbon dioxide concentrations in the atmosphere, which would mean that you would need to multiply the Climate Sensitivity by 1.5 or 2 to arrive at the final top temperature – higher than previously calculated, regardless of whether the expected Climate Sensitivity were to be less than previously calculated. It is therefore illogical for Nigel Lawson to extrapolate from his understanding that Climate Sensitivity is lower than previously calculated to his conclusion that the final level of global warming will be lower than previously calculated. The more carbon dioxide we emit, the worse it will be. ]

But the need for a rethink does not stop there. As the noted climate scientist Professor Judith Curry, chair of the School of Earth and Atmospheric Sciences at the Georgia Institute of Technology, recently observed in written testimony to the US Senate:
“Anthropogenic global warming is a proposed theory whose basic mechnism is well understood, but whose magnitude is highly uncertain. The growing evidence that climate models are too sensitive to CO2 has implications for the attribution of late-20th-century warming and projections of 21st-century climate. If the recent warming hiatus is caused by natural variability, then this raises the question as to what extent the warming between 1975 and 2000 can also be explained by natural climate variability.”

[ : The IPCC reports constitute the world’s best attempts to “rethink” Climate Change. Professor Judith Curry, in the quotation given by Nigel Lawson, undervalues a great deal of her colleagues’ work by dismissing their valid attribution of Climate Change to the burning of fossil fuels and the change in land use. ]

It is true that most members of the climate science establishment are reluctant to accept this, and argue that the missing heat has for the time being gone into the (very cold) ocean depths, only to be released later. This is, however, highly conjectural. Assessing the mean global temperature of the ocean depths is — unsurprisingly — even less reliable, by a long way, than the surface temperature record. And in any event most scientists reckon that it will take thousands of years for this “missing heat” to be released to the surface.

[ : That the oceans are warming is not conjecture – it is a statement based on data. The oceans have a far greater capacity for heat retention than the atmosphere, so yes, it will take a long time for heat in the oceans to re-emerge into the atmosphere. However, the processes that directed heat into the oceans rather than the atmosphere in recent years could easily reverse, and in a short space of time the atmosphere could heat up considerably. In making his arguments, Nigel Lawson omits to consider this eventuality, which lowers considerably the value of his conclusions. ]

In short, the CO2 effect on the earth’s temperature is probably less than was previously thought, and other things — that is, natural variability and possibly solar influences — are relatively more significant than has hitherto been assumed.

[ : Nothing about science has changed. The Earth system continues to accumulate heat and respond to that. Carbon dioxide still contributes to the Greenhouse Effect, and extra carbon dioxide in the air will cause further global warming. The Transient Climate Response to carbon dioxide is still apparently linear. The Equilibrium Climate Sensitivity is still calculated to be roughly what it always has been – but that’s only for a doubling of atmospheric carbon dioxide. If more methane is emitted as a result of Arctic warming, for example, or the rate of fossil fuel use increases, then the temperature increase of the Earth’s surface could be more than previously thought. Natural variability and solar changes are all considered in the IPCC reports, and all calculations and models take account of them. However, the obvious possibility presents itself – that the patterns of natural variability as experienced by the Earth during the last 800,000 years are themseles being changed. If Climate Change is happening so quickly as to affect natural variability, then the outcomes could be much more serious than anticipated. ]

But let us assume that the global temperature hiatus does, at some point, come to an end, and a modest degree of global warming resumes. How much does this matter?

The answer must be that it matters very little. There are plainly both advantages and disadvantages from a warmer temperature, and these will vary from region to region depending to some extent on the existing temperature in the region concerned. And it is helpful in this context that the climate scientists believe that the global warming they expect from increased atmospheric CO2 will be greatest in the cold polar regions and least in the warm tropical regions, and will be greater at night than in the day, and greater in winter than in summer. Be that as it may, studies have clearly shown that, overall, the warming that the climate models are now predicting for most of this century (I referred to these models earlier, and will come back to them later) is likely to do more good than harm.

[ : The claim that warming will “overall […] do more good than harm” is erroneous, according to Climate Change Science. ]

Global warming orthodoxy is not merely irrational. It is wicked.

[ : My conclusions upon reading this lecture are that the evidence suggests that Nigel Lawson’s position is ill-informed. He should read the IPCC reports and re-consider. ]

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 ?

Fiefdom of Information

Sigh. I think I’m going to need to start sending out Freedom of Information requests… Several cups of tea later…

To: Information Rights Unit, Department for Business, Innovation & Skills, 5th Floor, Victoria 3, 1 Victoria Street, London SW1H OET

28th April 2014

Request to the Department of Energy and Climate Change

Re: Policy and Strategy for North Sea Natural Gas Fields Depletion

Dear Madam / Sir,

I researching the history of the development of the gas industry in the United Kingdom, and some of the parallel evolution of the industry in the United States of America and mainland Europe.

In looking at the period of the mid- to late- 1960s, and the British decision to transition from manufactured gas to Natural Gas supplies, I have been able to answer some of my questions, but not all of them, so far.

From a variety of sources, I have been able to determine that there were contingency plans to provide substitutes for Natural Gas, either to solve technical problems in the grid conversion away from town gas, or to compensate should North Sea Natural Gas production growth be sluggish, or demand growth higher than anticipated.

Technologies included the enriching of “lean” hydrogen-rich synthesis gas (reformed from a range of light hydrocarbons, by-products of the petroleum refining industry); Synthetic Natural Gas (SNG) and methane-“rich” gas making processes; and simple mixtures of light hydrocarbons with air.

In the National Archives Cmd/Cmnd/Command document 3438 “Fuel Policy. Presented to Parliament by the Minister of Power Nov 1967”, I found discussion on how North Sea gas fields could best be exploited, and about expected depletion rates, and that this could promote further exploration and discovery.

In a range of books and papers of the time, I have found some discussion about options to increase imports of Natural Gas, either by the shipping of Liquified Natural Gas (LNG) or by pipeline from The Netherlands.

Current British policy in respect of Natural Gas supplies appears to rest on “pipeline diplomacy”, ensuring imports through continued co-operation with partner supplier countries and international organisations.

I remain unclear about what official technological or structural strategy may exist to bridge the gap between depleting North Sea Natural Gas supplies and continued strong demand, in the event of failure of this policy.

It is clear from my research into early gas field development that depletion is inevitable, and that although some production can be restored with various techniques, that eventually wells become uneconomic, no matter what the size of the original gas field.

To my mind, it seems unthinkable that the depletion of the North Sea gas fields was unanticipated, and yet I have yet to find comprehensive policy statements that cover this eventuality and answer its needs.

Under the Freedom of Information Act (2000), I am requesting information to answer the following questions :-

1.   At the time of European exploration for Natural Gas in the period 1948 to 1965, and the British conversion from manufactured gas to Natural Gas, in the period 1966 to 1977, what was HM Government’s policy to compensate for the eventual depletion of the North Sea gas fields ?

2.   What negotiations and agreements were made between HM Government and the nationalised gas industry between 1948 and 1986; and between HM Government and the privatised gas industry between 1986 and today regarding the projections of decline in gas production from the UK Continental Shelf, and any compensating strategy, such as the development of unconventional gas resources, such as shale gas ?

3.   Is there any policy or strategy to restore the SNG (Synthetic Natural Gas) production capacity of the UK in the event of a longstanding crisis emerging, for example from a sharp rise in imported Natural Gas costs or geopolitical upheaval ?

4.   Has HM Government any plan to acquire the Intellectual Property rights to SNG production technology, whether from British Gas/Centrica or any other private enterprise, especially for the slagging version of the Lurgi gasifier technology ?

5.   Has HM Government any stated policy intention to launch new research and development into, or pilot demonstrations of, SNG ?

6.   Does HM Government have any clearly-defined policy on the production and use of manufactured gas of any type ? If so, please can I know references for the documents ?

7.   Does HM Government anticipate that manufactured gas production could need to increase in order to support the production of synthetic liquid vehicle fuels; and if so, which technologies are to be considered ?

Thank you for your attention to my request for information.



Champagne with Michael Caine

It was like a very bad sitcom from 1983 at the House of Commons this afternoon. “You saw Ed Balls running around in full Santa outfit ?” “Yeah ! The proper job.” “You know what we should do ? Put a piece of misteltoe above that door that everyone has to go through.” “You do it. I’ve heard you’re very good with sticky-backed plastic…”

Once again Alan Whitehead MP has put on a marvellous Christmas reception of the All Party Parliamentary Renewable And Sustainable Energy Group, or PRASEG. The one flute of champagne in the desert-like heat of the Terrace Pavilion at the Houses of Parliament was enough to turn me the colour of beetroot and tomato soup, so when Alan despaired of getting anything altered, I took on the role of asking the lovely Pavilion staff to turn the heating down, what with Climate Change and everything, which they nobly obliged to do.

In the meantime, I was invited onto the terrace overlooking the Thames by Christopher Maltin of Organic Power, to refresh myself. The winter night had fallen like a grey duvet, and what with the lingering fog and the lighting schemes for famous buildings, and the purple-blue sky behind it all, it was quite romantic out there. But very, very cold, so we didn’t discuss biogas and biosyngas for long.

Back in the Pavilion, we were addressed by the fabulously debonair Lord Deben, John Gummer, sporting a cheery red pocket kerchief in his dark suit. During his talk, announcing the Committee on Climate Change confirmation of the Fourth Carbon Budget, and urging us to be “missionary” in influencing others over Climate Change mitigation, across the room I espied a younger gentleman who had, shall I say, a rather keen appearance. Was he a journalist, I asked myself, paying so much attention ? In fact, wasn’t he Leo Hickman, formerly of The Guardian ? No, he was not, but it was a bit shadowed at that end of the room, so I can’t blame myself for this mistake.

When he had finally worked the room and ended up talking with me, he turned out to be Jack Tinley, Relationship Manager for Utilities at Lloyds Bank, in other words, in Big Finance, and currently seconded to the UK Government Department of Energy and Climate Change (DECC), so that was what explained his preppiness. I explained my continuing research into Renewable Gas, and he recommended Climate Change Capital for all questions of financing renewable energy, should I encounter any project that needed investment. Very helpful. Although he didn’t know who Leo Hickman is. Talking with him, and the guy from TEQs (Tradable Energy Quotas) was so interesting, I absentmindedly ate some…no… loads of party snacks. I need to make a strong mental note not to eat too many party snacks in future.

After the illuminating and encouraging speeches from Lord Deben and Alan Whitehead MP, we were delightfully surprised by the attendance of, and an address by, Greg Barker MP, a “drive by speech” according to Alan. I was struck, that with his new specs, “Curly” Greg looks astonishingly like a young Michael Caine. During his speech he said that we ought to put the damaging controversy about energy behind us and move on into a year of great opportunity, now that the House of Lords had approved the Energy Bill. And then he pushed his glasses back up his nose in a way that was so Michael Caine, I nearly laughed out loud. Greg expressed the wish that the energy industry would become a “sexy sector”, at which point I corpsed and had to turn away silently laughing with a hand clamped over my mouth.

Afterwards, I shook Greg by the hand, and asked if he would please unblock me on Twitter. He asked if I had been posting streams and streams of Tweets, and I said I don’t do that these days. When I suggested that he reminded me of Michael Caine, he was rather amused, but he did check I meant the Michael Caine of the 1960s, not the actor of today.

Other people I spent time talking to at the PRASEG reception were Professor Dave Elliott of the Open University, and author on renewable energy; Steven English who installs ground source heat pumps; and Steve Browning, formerly of the National Grid; all in the Claverton Energy Research Group forum.

I explained the foundations of my research into Renewable Gas to a number of people, and used the rhetorical question, “Germany’s doing it, so why can’t we ?” several times. I bet the Chinese are doing it too. I mean they’re doing everything else in renewable energy. In copious quantities, now they’ve seen the light about air pollution.

I ended the event by having a serious chat with a guy from AMEC, the international engineering firm. He commented that the “Big Six” energy production and supply companies are being joined by smaller companies with new sources of investment capital in delivering new energy infrastructure.

I said it was clear that “the flight of international capital” had become so bad, it had gone into geostationary orbit, not coming down to land very often, and that funding real projects could be hard.

I suggested to him that the “Big Six” might need to be broken up, in the light of their edge-of-break-even, being locked into the use of fossil fuels, and the emergence of some of these smaller, more liquid players, such as Infinis.

I also suggested that large companies such as AMEC should really concentrate on investing in new energy infrastructure projects, as some things, like the wind power development of the North Sea are creating genuine energy assets, easily shown if you consider the price of Natural Gas, which the UK is having to increasingly import.

Economic Ecology

Managing the balance between, on the one hand, extraction of natural resources from the environment, and on the other hand, economic production, shouldn’t have to be either, or. We shouldn’t value higher throughput and consumption at the expense of exhausting what the Earth can supply. We shouldn’t be “economic” in our ecology, we shouldn’t be penny-pinching and miserly and short-change the Earth. The Earth, after all, is the biosystem that nourishes us. What we should be aiming for is an ecology of economy – a balance in the systems of manufacture, agriculture, industry, mining and trade that doesn’t empty the Earth’s store cupboard. This, at its root, is a conservation strategy, maintaining humanity through a conservative economy. Political conservatives have lost their way. These days they espouse the profligate use of the Earth’s resources by preaching the pursuit of “economic growth”, by sponsoring and promoting free trade, and reversing environmental protection. Some in a neoliberal or capitalist economy may get rich, but they do so at the expense of everybody and everything else. It is time for an ecology in economics.

Over the course of the next couple of years, in between doing other things, I shall be taking part in a new project called “Joy in Enough”, which seeks to promote economic ecology. One of the key texts of this multi-workstream group is “Enough is Enough”, a book written by Rob Dietz and Dan O’Neill. In their Preface they write :-

“But how do we share this one planet and provide a high quality of life for all ? The economic orthodoxy in use around the world is not up to the challenge. […] That strategy, the pursuit of never-ending economic growth has become dysfunctional. With each passing day, we are witnessing more and more uneconomic growth – growth that costs more than it is worth. An economy that chases perpetually increasing production and consumption, always in search of more, stands no chance of achieving a lasting prosperity. […] Now is the time to change the goal from the madness of more to the ethic of enough, to accept the limits to growth and build an economy that meets our needs without undermining the life-support systems of the planet.”

One of the outcomes of global capitalism is huge disparities, inequalities between rich and poor, between haves and have-nots. Concern about this is not just esoteric morality – it has consequences on the whole system. Take, for example, a field of grass. No pastoral herder with a flock of goats is going to permit the animals to graze in just one corner of this field, for if they do, part of the grassland will over-grow, and part will become dust or mud, and this will destroy the value of the field for the purposes of grazing. And take another example – wealth distribution in the United Kingdom. Since most people do not have enough capital to live on the proceeds of investment, most people need to earn money for their wealth through working. The recent economic contraction has persuaded companies and the public sector to squeeze more productivity out of a smaller number of employees, or abandon services along with their employees. A simple map of unemployment shows how parts of the British population have been over-grazed to prop up the economic order. This is already having impacts – increasing levels of poverty, and the consequent social breakdown that accompanies it. Poverty and the consequent worsening social environment make people less able to look after themselves, their families, and their communities, and this has a direct impact on the national economy. We are all poorer because some of our fellow citizens need to use food banks, or have to make the choice in winter to Heat or Eat.

And let’s look more closely at energy. Whilst the large energy producers and energy suppliers continue to make significant profits – or put their prices up to make sure they do so – families in the lower income brackets are experiencing unffordability issues with energy. Yes, of course, the energy companies would fail if they cannot keep their shareholders and investors happy. Private concerns need to make a profit to survive. But in the grand scheme of things, the economic temperature is low, so they should not expect major returns. The energy companies are complaining that they fear for their abilities to invest in new resources and infrastructure, but many of their customers cannot afford their products. What have we come to, when a “trophy project” such as the Hinkley Point C nuclear power station gets signed off, with billions in concomitant subsidy support, and yet people in Scotland and the North East and North West of England are failing to keep their homes at a comfortable temperature ?

There is a basic conflict at the centre of all of this – energy companies make money by selling energy. Their strategy for survival is to make profit. This means they either have to sell more energy, or they have to charge more for the same amount of energy. Purchasing energy for most people is not a choice – it is a mandatory part of their spending. You could say that charging people for energy is akin to charging people for air to breathe. Energy is a essential utility, not an option. Some of the energy services we all need could be provided without purchasing the products of the energy companies. From the point of view of government budgets, it would be better to insulate the homes of lower income families than to offer them social benefit payments to pay their energy bills, but this would reduce the profits to the energy companies. Insulation is not a priority activity, because it lowers economic production – unless insulation itself is counted somehow as productivity. The ECO, the Energy Company Obligation – an obligation on energy companies to provide insulation for lower income family homes, could well become part of UK Prime Minister David Cameron’s “Bonfire of the Green Tax Vanities”. The ECO was set up as a subsidy payment, since energy companies will not provide energy services without charging somebody for them. The model of an ESCO – an Energy Services Company – an energy company that sells both energy and energy efficiency services is what is needed – but this means that energy companies need to diversify. They need to sell energy, and also sell people the means to avoid having to buy energy.

Selling energy demand reduction services alongside energy is the only way that privatised energy companies can evolve – or the energy sector could have to be taken back into public ownership because the energy companies are not being socially responsible. A combination of economic adjustment measures, essential climate change policy and wholesale price rises for fossil fuel energy mean that energy demand reduction is essential to keep the economy stable. This cannot be achieved by merely increasing end consumer bills, in an effort to change behaviour. There is only so much reduction in energy use that a family can make, and it is a one-time change, it cannot be repeated. You can nudge people to turn their lights off and their thermostats down by one degree, but they won’t do it again. The people need to be provided with energy control. Smart meters may or may not provide an extra tranche of energy demand reduction. Smart fridges and freezers will almost certainly offer the potential for further domestic energy reduction. Mandatory energy efficiency in all electrical appliances sold is essential. But so is insulation. If we don’t get higher rates of insulation in buildings, we cannot win the energy challenge. In the UK, one style of Government policies for insulation were dropped – and their replacements are simply not working. The mistake was to assume that the energy companies would play the energy conservation game without proper incentives – and by incentive, I don’t mean subsidy.

An obligation on energy companies to deploy insulation as well as other energy control measures shouldn’t need to be subsidised. What ? An obligation without a subsidy ? How refreshing ! If it is made the responsibility of the energy companies to provide energy services, and they are rated, and major energy procurement contracts are based on how well the energy companies perform on providing energy reduction services, then this could have an influence. If shareholders begin to understand the value of energy conservation and energy efficiency and begin to value their energy company holdings by their energy services portfolio, this could have an influence. If an energy utility’s licence to operate is based on their ESCO performance, this could have an influence : an energy utility could face being disbarred through the National Grid’s management of the electricity and gas networks – if an energy company does not provide policy-compliant levels of insulation and other demand control measures, it will not get preferential access for its products to supply the grids. If this sounds like the socialising of free trade, that’s not the case. Responsible companies are already beginning to respond to the unfolding crisis in energy. Companies that use large amounts of energy are seeking ways to cut their consumption – for reasons related to economic contraction, carbon emissions control and energy price rises – their bottom line – their profits – rely on energy management.

It’s flawed reasoning to claim that taxing bad behaviour promotes good behaviour. It’s unlikely that the UK’s Carbon Floor Price will do much apart from making energy more unaffordable for consumers – it’s not going to make energy companies change the resources that they use. To really beat carbon emissions, low carbon energy needs to be mandated. Mandated, but not subsidised. The only reason subsidies are required for renewable electricity is because the initial investment is entirely new development – the subsidies don’t need to remain in place forever. Insulation is another one-off cost, so short-term subsidies should be in place to promote it. As Nick Clegg MP proposes, subsidies for energy conservation should come from the Treasury, through a progressive tax, not via energy companies, who will pass costs on to energy consumers, where it stands a chance of penalising lower-income households. Wind power and solar power, after their initial investment costs, provide almost free electricity – wind turbines and solar panels are in effect providing energy services. Energy companies should be mandated to provide more renewable electricity as part of their commitment to energy services.

In a carbon-constrained world, we must use less carbon dioxide emitting fossil fuel energy. Since the industrialised economies use fossil fuels for more than abut 80% of their energy, lowering carbon emissions means using less energy, and having less building comfort, unless renewables and insulation can be rapidly increased. This is one part of the economy that should be growing, even as the rest is shrinking.

Energy companies can claim that they don’t want to provide insulation as an energy service, because insulation is a one-off cost, it’s not a continuing source of profit. Well, when the Big Six have finished insulating all the roofs, walls and windows, they can move on to building all the wind turbines and solar farms we need. They’ll make a margin on that.

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 :-
“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)
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…

“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

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

[ 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.

[ 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.

[ Historical recordings ]

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

“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

“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.”

[ 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.

[ 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

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 : ]

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


[ 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’

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

[ 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

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

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.


[ 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

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.


[ 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

[ 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

[ 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

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

[ 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

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 ? ]


[ 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 ]

Wind Powers Electricity Security

Have the anti-wind power lobby struck again ? A seemingly turbulent researcher from Private Eye magazine rang me on Thursday evening to ask me to revise my interpretation of his “Keeping The Lights On” piece of a few weeks previously. His article seemed at first glance to be quite derogatory regarding the contribution of wind power to the UK’s electricity supply. If I were to look again, I would find out, he was sure, that I was wrong, and he was right.

So I have been re-reviewing the annual 2013 “Electricity Capacity Assessment Report” prepared by Ofgem, the UK Government’s Office of Gas and Electricity Markets, an independent National Regulatory Authority. I have tried to be as fair-minded and generous as possible to “Old Sparky” at Private Eye magazine, but a close re-reading of the Ofgem report suggests he is apparently mistaken – wind power is a boon, not a burden (as he seems to claim).

In the overview to the Ofgem report, they state, “our assessment suggests that the risks to electricity security of supply over the next six winters have increased since our last report in October 2012. This is due in particular to deterioration in the supply-side outlook. There is also uncertainty over projected reductions in demand.” Neither of these issues can be associated with wind power, which is being deployed at an accelerating rate and so is providing increasing amounts of electricity.

The report considers risks to security of the electricity supply, not an evaluation of the actual amounts of power that will be supplied. How are these risks to the security of supply quantified ? There are several metrics provided from Ofgem’s modelling, including :-

a. LOLE – Loss of Load Expectation – the average number of hours per year in which electricity supply does not meet electricity demand (if the grid System Operator does not take steps to balance it out).

(Note that Ofgem’s definition of LOLE is difference from other people’s “LOLE is often interpreted in the academic literature as representing the probability of disconnections after all mitigation actions available to the System Operator have been exhausted. We consider that a well functioning market should avoid using mitigation actions in [sic] regular basis and as such we interpret LOLE as the probability of having to implement mitigation actions.”)

b. EEU – Expected Energy Unserved (or “Un-served”) – the average amount of electricity demand that is not met in a year – a metric that combines both the likelihood and the size of any shortfall.

c. Frequency and Duration of Expected Outages – a measure of the risk that an electricity consumer faces of controlled disconnection because supply does not meet demand.

The first important thing to note is that the lights are very unlikely to go out. The highest value of LOLE, measured in hours per year is under 20. That’s 20 hours each year. Not 20 days. And this is not anticipated to be 20 days in a row, either. Section 1.11 says “LOLE, as interpreted in this report, is not a measure of the expected number of hours per year in which customers may be disconnected. For a given level of LOLE and EEU, results may come from a large number of small events where demand exceeds supply in principle but that can be managed by National Grid through a set of mitigation actions available to them as System Operator. […] Given the characteristics of the GB system, any shortfall is more likely to take the form of a large number of small events that would not have a direct impact on customers.”

Section 2.19 states, “The probabilistic measures of security of supply presented in this report are often misinterpreted. LOLE is the expected number of hours per year in which supply does not meet demand. This does not however mean that customers will be disconnected or that there will be blackouts for that number of hours a year. Most of the time, when available supply is not high enough to meet demand, National Grid may implement mitigation actions to solve the problem without disconnecting any customers. However, the system should be planned to avoid the use of mitigation actions and that is why we measure LOLE ahead of any mitigation actions being used”. And Section 2.20, “LOLE does not necessarily mean disconnections but they do remain a possibility. If the difference between available supply and demand is so large that the mitigation actions are not enough to meet demand then some customers have to be disconnected – this is the controlled disconnections step in Figure 14 above. In this case the [System Operator] SO will disconnect industrial demand before household demand.”

And in Section 2.21. “The model output numbers presented here refer to a loss of load of any kind. This could be the sum of several small events (controlled through mitigation actions) or a single large event. As a consequence of the mitigation actions available, the total period of disconnections for a customer will be lower than the value of LOLE.”

The report does anticipate that there are risks of large events where the lights could go out, even if only very briefly, for non-emergency customers : “The results may also come from a small number of large events (eg the supply deficit is more than 2 – 3 gigawatts (GW)) where controlled disconnections cannot be avoided.” But in this kind of scenario two very important things would happen. Those with electricity contracts with a clause permitting forced disconnection would lose power. And immediate backup power generation would be called upon to bridge the gap. There are many kinds of electricity generation that can be called on to start up in a supply crisis – some of them becoming operational in minutes, and others in hours.

As the report says in Section 2.24 “Each [Distribution Network Operator] DNO ensures it can provide a 20% reduction of its total system demand in four incremental stages (between 4% and 6%), which can be achieved at all times, with or without prior warning, and within 5 minutes of receipt of an instruction from the System Operator. The reduction of a further 20% (40% in total) can be achieved following issue of the appropriate GB System Warning by National Grid within agreed timescales”.

It’s all about the need for National Grid to balance the system. Section 2.9 says, “LOLE is not a measure of the expected number of hours per year in which customers may be disconnected. We define LOLE to indicate the number of hours in which the system may need to respond to tight conditions.”

The report also rules some potential sources of disruption of supply outside the remit of this particular analysis – see Section 3.17 “There are other reasons why electricity consumers might experience disruptions to supply, which are out of the scope of this assessment and thus not captured by this model, such as: Flexibility : The ability of generators to ramp up in response to rapid increases in demand or decreases in the output of other generators; Insufficient reserve : Unexpected increases in demand or decreases in available capacity in real time which must be managed by the System Operator through procurement and use of reserve capacity; Network outages : Failures on the electricity transmission or distribution networks; Fuel availability : The availability of the fuel used by generators. In particular the security of supplies of natural gas at times of peak electricity demand.”

Crucially, the report says there is much uncertainty in their modelling of LOLE and EEU. In Section 2.26, “The LOLE and EEU estimates are just an indication of risk. There is considerable uncertainty around the main variables in the calculation (eg demand, the behaviour of interconnectors etc.)”

(Note : interconnectors are electricity supply cables that join the UK to other countries such as Ireland and Holland).

Part of the reason for Ofgem’s caveat of uncertainty is the lack of appropriate data. Although they believe they have better modelling of wind power since their 2012 report (see Sections 3.39 to 3.50), there are data sets they believe should be improved. For example, data on Demand Side Response (DSR) – the ability of the National Grid and its larger or aggregated consumers to alter levels of demand on cue (see Sections 4.7 to 4.10 of the document detailing decisions about the methodology). A lack of data has led to certain assumptions being retained, for example, the assumption that there is no relationship between available wind power and periods of high demand – in the winter season (see Section 2.5 and Sections 4.11 to 4.17 of the methodology decisions document).

In addition to these uncertainties, the sensitivity cases used in the modelling are known to not accurately reflect the capability of management of the power grid. In the Executive Summary on page 4, the report says, “These sensitivities only illustrate changes in one variable at a time and so do not capture potential mitigating effects, for example of the supply side reacting to higher demand projections.” And in Section 2.16 it says, “Each sensitivity assumes a change in one variable from the Reference Scenario, with all other assumptions being held constant. The purpose of this is to assess the impact of the uncertainty related to each variable in isolation, on the risk measures. Our report is not using scenarios (ie a combination of changes in several variables to reflect alternative worlds or different futures), as this would not allow us to isolate the impact of each variable on the risk measures.”

Thus, the numbers that are output by the modelling are perforce illustrative, not definitive.

What “Old Sparky” at Private Eye was rattled by in his recent piece was the calculation of Equivalent Firm Capacity (EFC) in the Ofgem report.

On page 87, Section 3.55, the Ofgem report defines the “standard measure” EFC as “the amount of capacity that is required to replace the wind capacity to achieve the same level of LOLE”, meaning the amount of always-on generation capacity required to replace the wind capacity to achieve the same level of LOLE. Putting it another way on page 33, in the footnotes for Section 3.29, the report states, “The EFC is the quantity of firm capacity (ie always available) that can be replaced by a certain volume of wind generation to give the same level of security of supply, as measured by LOLE.”

Wind power is different from fossil fuel-powered generation as there is a lot of variability in output. Section 1.48 of the report says, “Wind generation capacity is analysed separately given that its outcome in terms of generation availability is much more variable and difficult to predict.” Several of the indicators calculated for the report are connected with the impact of wind on security of the power supply. However, variation in wind power is not the underlying reason for the necessity of this report. Other electricity generation plant has variation in output leading to questions of security of supply. In addition, besides planned plant closures and openings, there are as-yet-unknown factors that could impact overall generation capacity. Section 2.2 reads, “We use a probabilistic approach to assess the uncertainty related to short-term variations in demand and available conventional generation due to outages and wind generation. This is combined with sensitivity analysis to assess the uncertainty related to the evolution of electricity demand and supply due to investment and retirement decisions (ie mothballing, closures) and interconnector flows, among others.”

The report examines the possibility that wind power availability could be correlated to winter season peak demand, based on limited available data, and models a “Wind Generation Availability” sensitivity (see Section 3.94 to Section 3.98, especially Figure 64). In Section 3.42 the report says, “For the wind generation availability sensitivity we assume that wind availability decreases at time of high demand. In particular this sensitivity assumes a reduction in the available wind resource for demand levels higher than 92% of the ACS peak demand. The maximum reduction is assumed to be 50% for demand levels higher than 102% of ACS peak demand.” Bear in mind that this is only an assumption.

In Appendix 5 “Detailed results tables”, Table 34, Table 35 and Table 37 show how this modelling impacts the calculation of the indicative Equivalent Firm Capacity (EFC) of wind power.

In the 2018/2019 timeframe, when there is expected to be a combined wind power capacity of 8405 megawatts (MW) onshore plus 11705 MW offshore = 20110 MW, the EFC for wind power is calculated to be 2546 MW in the “Wind Generation Availability” sensitivity line, which works out at 12.66% of the nameplate capacity of the wind power. Note : 100 divided by 12.66 is 7.88, or a factor of roughly 8.

At the earlier 2013/2014 timeframe, when combined wind power capacity is expected to be 3970 + 6235 MW = 10205 MW, and the EFC is at 1624 MW or 15.91% for the “Wind Generation Sensitivity” line. Note : 100 divided by 15.91 = 6.285, or a factor of roughly 6.

“Old Sparky” is referring to these factor figures when he says in his piece (see below) :-

“[…] For every one megawatt of reliable capacity (eg a coal-fired power
station) that gets closed, Ofgem calculates Britain would need six to
megawatts of windfarm capacity to achieve the original level of
reliability – and the multiple is rising all the time. Windfarms are
not of course being built at eight times the rate coal plants are
closing – hence the ever-increasing likelihood of blackouts. […]”

Yet he has ignored several caveats given in the report that place these factors in doubt. For example, the sensitivity analysis only varies one factor at a time and does not attempt to model correlated changes in other variables. He has also omitted to consider the relative impacts of change.

If he were to contrast his statement with the “Conventional Low Generation Availability” sensitivity line, where wind power EFC in the 2013/2014 timeframe is calculated as a healthy 26.59% or a factor of roughly 4; or 2018/2019 when wind EFC is 19.80% or a factor of roughly 5.

Note : The “Conventional Low Generation Availability” sensitivity is drawn from historical conventional generation operating data, as outlined in Sections 3.31 to 3.38. Section 3.36 states, “The Reference Scenario availability is defined as the mean availability of the seven winter estimates. The availability values used for the low (high) availability sensitivities are defined as the mean minus (plus) one standard deviation of the seven winter estimates.”

Table 30 and Table 31 show that low conventional generation availability will probably be the largest contribution to energy security uncertainty in the critical 2015/2016 timeframe.

The upshot of all of this modelling is that wind power is actually off the hook. Unforeseen alterations in conventional generation capacity are likely to have the largest impact. As the report says in Section 4.21 “The figures indicate that reasonably small changes in conventional generation availability have a material impact on the risk of supply shortfalls. This is most notable in 2015/16, where the estimated LOLE ranges from 0.2 hours per year in the high availability sensitivity to 16 hours per year in the low availability sensitivity, for the Reference Scenario is 2.9 hours per year.”

However, Section 1.19 is careful to remind us, “Wind generation, onshore and offshore, is expected to grow rapidly in the period of analysis and especially after 2015/16, rising from around 9GW of installed capacity now to more than 20GW by 2018/19. Given the variability of wind speeds, we estimate that only 17% of this capacity can be counted as firm (ie always available) for security of supply purposes by 2018/19.” This is in the Reference Scenario.

The sensitivities modelled in the report are a measure of risk, and do not provide absolute values for any of the output metrics, especially since the calculations are dependent on so many factors, including economic stimulus for the building of new generation plant.

Importantly, recent decisions by gas-fired power plant operators to “mothball”, or close down their generation capacity, are inevitably going to matter more than how much exactly we can rely on wind power.

Many commentators neglect to make the obvious point that wind power is not being used to replace conventional generation entirely, but to save fossil fuel by reducing the number of hours conventional generators have to run. This is contributing to energy security, by reducing the cost of fossil fuel that needs to be imported. However, the knock-on effect is this is having an impact on the economic viability of these plant because they are not always in use, and so the UK Government is putting in place the “Capacity Mechanism” to make sure that mothballed plant can be put back into use when required, during those becalmed, winter afternoons when power demand is at its peak.

Private Eye
Issue Number 1345
26th July 2013 – 8th August 2013

“Keeping the Lights On”
page 14
by “Old Sparky”

The report from energy regulator Ofgem that sparked headlines on
potential power cuts contains much new analysis highlighting the
uselessness of wind generation in contributing to security of
electricity supply, aka the problem of windfarm “intermittency”. But
the problem is being studiously ignored by the Department of Energy
and Climate Change (DECC).

As coal power stations shut down, windfarms are notionally replacing
them. If, say, only one windfarm were serving the grid, its inherent
unreliability could easily be compensated for. But if there were
[italics] only windfarms, and no reliable sources of electricity
available at all, security of supply would be hugely at risk. Thus the
more windfarms there are, the less they contribute to security.

For every one megawatt of reliable capacity (eg a coal-fired power
station) that gets closed, Ofgem calculates Britain would need six to
eight megawatts of windfarm capacity to achieve the original level of
reliability – and the multiple is rising all the time. Windfarms are
not of course being built at eight times the rate coal plants are
closing – hence the ever-increasing likelihood of blackouts.


In consequence windfarms are being featherbedded – not only with
lavish subsidies, but also by not being billed for the ever-increasing
trouble they cause. When the DECC was still operating Plan B, aka the
dash for gas ([Private] Eye [Issue] 1266), the cost of intermittency
was defined in terms of balancing the grid by using relatively clean
and cheap natural gas. Now that the department has been forced to
adopt emergency Plan C ([Private] Eye [Issue] 1344), backup for
intermittent windfarm output will increasingly be provided by dirty,
expensive diesel generators.

Private Eye
Issue 1344
12 – 25 July 2013

page 15
“Keeping the Lights On”

As pandemonium breaks out in newspapers at the prospect of electricity
blackouts, emergency measures are being cobbled together to ensure the
lights stay on. They will probably succeed – but at a cost.

Three years ago incoming coalition ministers were briefed that when
energy policy Plan A (windfarms, new nukes and pixie-dust) failed, Plan B
would be in place – a new dash for gas ([Private] Eye [Issue] 1266).

Civil servants then devised complex “energy market reforms” (EMR) to make
this happen. It is now clear that these, too, have failed. Coal-fired power
stations are closing quicker than new gas plants are being built. As energy
regulator Ofgem put it bluntly last week: “The EMR aims to incentivise
industry to address security of supply in the medium term, but is not able
to bring forward investment in new capacity in time.”

Practical people in the National Grid are now hatching emergency Plan C.
They will pay large electricity users to switch off when requested;
encourage industrial companies and even hospitals to generate their own
diesel-fired electricity (not a hard sell when the grid can’t be relied
on); hire diesel generators to make up for the intermittency of windfarms
([Private] Eye [Issue] 1322); and bribe electricity companies to bring
mothballed gas-fired plants back into service.

Some of these steps are based on techniques previously used in extreme
circumstances, and will probably keep most of the lights on. But this
should not obscure the fact that planning routine use of emergency
measures is an indictment of energy policy. And since diesel is much
more expensive and polluting than gas, electricity prices and CO2
emissions will be higher than if Plan B had worked.


‘Old Sparky’

Keith MacLean : Big Choices

At last week’s 2013 Annual Conference for PRASEG, the UK parliamentary sustainable energy group, Keith MacLean from Scottish and Southern Energy outlined (see below) the major pathways for domestic (residential) energy, currently dependent on both a gas grid and a power grid.

He said that decarbonising heat requires significant, strategic infrastructure decisions on the various proposals and technology choices put forward, as “these options are incompatible”. He said that the UK “need to facilitate more towards ONE of those scenarios/configurations [for provision for heating at home] as they are mutually exclusive”.

There has been a commitment from Central Government in the UK to the concept of electrification of the energy requirements of both the transport and heat sectors, and Keith MacLean painted a scenario that could see the nation’s households ditching their gas central heating boilers for heat pumps in accord with that vision. Next, “the District Heating (DH) movement could take off, [where you stop using your heat pump and take local piped heat from a Combined Heat and Power (CHP) plant] until there is no spare market capacity. Then [big utilities] could start pumping biogas and hydrogen into the gas grid, and you get your boiler back !”

Since I view gas grid injection of Renewable Gas feedstocks as a potential way to easily decarbonise the gas supply, and as Keith MacLean said in his panel presentation, “The real opportunity to make a difference in our domestic [residential] energy consumption is in heat rather than power”, I sought him out during the drinks reception after the event, to compare notes.

I explained that I appreciate the awkward problem he posed, and that my continuing research interest is in Renewable Gas, which includes Renewable Hydrogen, BioHydrogen and BioMethane. I said I had been reading up on and speaking with some of those doing Hydrogen injection into the gas grid, and it looks like a useful way to decarbonise gas.

I said that if we could get 5% of the gas grid supply replaced with hydrogen…”Yes”, said Keith, “we wouldn’t even need to change appliances at those levels”… and then top up with biogas and other industrial gas streams, we could decarbonise the grid by around 20% without breaking into a sweat. At this point, Keith MacLean started nodding healhily, and a woman from a communications company standing near us started to zone out, so I figured this was getting really interesting. “And that would be significant”, I accented, but by this time she was almost asleep on her feet.

With such important decisions ahead of us, it seems that people could be paying a bit more attention to these questions. These are, after all, big choices.

What did Keith mean by “The District Heating movement” ? Well, Dave Andrews of Clean Power (Finning Power Systems), had offered to give a very short presentation at the event. Here was his proposed title :-
“Indicative costs of decarbonizing European city heating with electrical distribution compared to district heating pipe distribution of large scale wind energy and with particular attention to transition to the above methods and energy storage costs to address intermittency and variability of wind power.”

This would have been an assessment of the relative costs of decarbonising European city heating with either :-

Strategy 1)

“Gas-fired Combined Cycle Gas Turbine (CCGT) generation plant plus domestic (residential sector) electric heat pumps as the transition solution; and in the long term, large scale wind energy replacing the CCGT – which is retained as back up for low wind situations; and with pumped hydro electrical storage to deal with intermittency /variability of wind energy and to reduce back up fuel usage.”


Strategy 2)

“CCGT Combined Heat and Power (CHP) plus district heat (DH) as the transition solution; and in the long term, large scale wind energy replacing the CCGT CHP heat but with the CCGT retained as back up for low wind situations and with hot water energy storage to deal with intermittency / variability and to reduce back up fuel usage.”

With “the impact of [a programme of building retrofits for] insulation on each strategy is also assessed.”

Dave’s European research background is of relevance here, as co-author of a 215-pager SETIS programme paper complete with pretty diagrams :-

Although Dave Andrews was also at the PRASEG drinks reception, he didn’t get the opportunity to address the conference. Which was a shame as his shirt was electric.

10 July 2013
“Keeping the Lights on: At What Cost?”
Parliamentary Renewable and Sustainable Energy Group
Annual Conference

Second Panel Discussion
Chaired by Baroness Maddock
“Negawatts: Decentralising and reducing demand – essential or ephemeral ?”

[Note : The term “negawatt” denotes a negative watt hour – produced by a reduction in power or gas demand. ]


Keith MacLean, Scottish and Southern Energy

Decentralisation and Demand Reduction [should only be done where] it makes sense. Answers [to the question of negawatts] are very different if looking at Heat and Power. Heat is something far more readily stored that electricity is. Can be used to help balance [the electricity demand profile]. And heat is already very localised [therefore adding to optimising local response]. Some are going in the other direction – looking at district [scale] heating (DH) [using the more efficient system of Combined Heat and Power (CHP)]. Never forget the option to convert from electricity to heat and back to electricity to balance [the grid]. Average household uses 3 MWh (megawatt hours) of electricity [per year] and 15 MWh of heat. The real opportunity is heat. New homes reduce this to about 1 [MWh]. Those built to the new 2016 housing regulations on Zero Carbon Homes, should use around zero. The real opportunity to make a difference in our domestic [residential] energy consumption is in heat rather than power. Reducing consumption not always the right solution. With intermittents [renewable energy] want to switch ON at some times [to soak up cheap wind power in windy conditions]. [A lot of talk about National Grid having to do load] balancing [on the scale of] seconds, minutes and hours. Far more fundamental is the overall system adequacy – a bigger challenge – the long-term needs of the consumer. Keeping the lights from going out by telling people to turn off the lights is not a good way of doing it. There is justifiable demand [for a range of energy services]. […] I don’t think we’re politically brave enough to vary the [electricity] prices enough to make changes. We need to look at ways of aggregating and automating Demand Side Response. Need to be prepared to legislate and regulate if that is the right solution.


Questions from the Floor

Question from John Gibbons of the University of Edinburgh

The decarbonisation of heat. Will we be successful any time soon ?

Answer from Keith MacLean

[…] Decarbonising heat – [strategic] infrastructure decisions. For example, [we could go down the route of ditching Natural Gas central heating] boilers for heat pumps [as the UK Government and National Grid have modelled and projected]. Then the District Heating (DH) movement could take off [and you ditch your heat pump at home], until there is no spare market capacity. Then [big utilities] could start pumping biogas and hydrogen into the gas grid, and you get your boiler back ! Need to facilitate more towards ONE of those scenarios/configurations [for provision for heating at home] as mutually exclusive. Need to address in terms of infrastructure since these options are incompatible.

Answer from Dave Openshaw, Future Networks, UK Power Network

Lifestyle decision – scope for [action on] heat more than for electricity. Demand Management – managing that Demand Side Reduction and Demand Reduction when need it. Bringing forward use of electricity [in variety of new applications] when know over-supply [from renewable energy, supplied at negative cost].


Ed Davey : Polish Barbecue

This week, both Caroline Flint MP and Ed Balls MP have publicly repeated the commitment by the UK’s Labour Party to a total decarbonisation of the power sector by 2030, should they become the governing political party. At PRASEG’s Annual Conference, Caroline Flint said “In around ten years time, a quarter of our power supply will be shut down. Decisions made in the next few years […] consequences will last for decades […] keeping the lights on, and [ensuring reasonably priced] energy bills, and preventing dangerous climate change. […] Labour will have as an election [promise] a legally binding target for 2030. […] This Government has no vision.”

And when I was in an informal conversation group with Ed Davey MP and Professor Mayer Hillman of the Policy Studies Institute at a drinks reception after the event hosted by PRASEG, the Secretary of State for Energy and Climate Change seemed to me to also be clear on his personal position backing the 2030 “decarb” target.

Ed Davey showed concern about the work necessary to get a Europe-wide commitment on Energy and Climate Change. He took Professor Hillman’s point that carbon dioxide emissions from the burning of fossil fuels are already causing dangerous climate change, and that the risks are increasing. However, he doubted that immediate responses can be made. He gave the impression that he singled out Poland of all the countries in the European Union to be an annoyance, standing in the way of success. He suggested that if Professor Hillman wanted to do something helpful, he could fly to Poland…at this point Professor Hillman interjected to say he hasn’t taken a flight in 70 years and doesn’t intend to now…and Ed Davey continued that if the Professor wanted to make a valuable contribution, he could travel to Poland, taking a train, or…”I don’t care how you get there”, but go to Poland and persuade the Poles to sign up to the 2030 ambition.

Clearly, machinations are already afoot. At the PRASEG Annual Conference were a number of communications professionals, tightly linked to the debate on the progress of national energy policy. Plus, one rather exceedingly highly-networked individual, David Andrews, the key driver behind the Claverton Energy Research Group forum, of which I am an occasional participant. He had ditched the normal navy blue polyester necktie and sombre suit for a shiveringly sharp and open-necked striped shirt, and was doing his best to look dapper, yet zoned. I found him talking to a communications professional, which didn’t surprise me. He asked how I was.

JA : “I think I need to find a new job.”
DA : “MI6 ?”
JA : “Too boring !”

What I really should have said was :-

JA : “Absolutely and seriously not ! Who’d want to keep State Secrets ? Too much travel and being nice to people who are nasty. And making unbelievable compromises. The excitement of privilege and access would wear off after about six minutes. Plus there’s the risk of ending up decomposing in something like a locked sports holdall in some strange bathroom in the semblance of a hostelry in a godforsaken infested hellhole in a desolate backwater like Cheltenham or Gloucester. Plus, I’d never keep track of all the narratives. Or the sliding door parallel lives. Besides, I’m a bit of a Marmite personality – you either like me or you really don’t : I respond poorly to orders, I’m not an arch-persuader and I’m not very diplomatic or patient (except with the genuinely unfortunate), and I’m well-known for leaping into spats. Call me awkward (and some do), but I think national security and genuine Zero Carbon prosperity can be assured by other means than dark arts and high stakes threats. I like the responsibility of deciding for myself what information should be broadcast in the better interests of the common good, and which held back for some time (for the truth will invariably out). And over and above all that, I’m a technologist, which means I prefer details over giving vague impressions. And I like genuine democratic processes, and am averse to social engineering. I am entirely unsuited to the work of a secret propaganda and diplomatic unit.”

I would be prepared to work for a UK or EU Parliamentary delegation to Poland, I guess, if I could be useful in assisting with dialogue, perhaps in the technical area. I do after all have several academic degrees pertinent to the questions of Energy and Climate Change.

But in a room full of politicians and communications experts, I felt a little like a fished fish. Here, then, is a demonstration. I was talking with Rhys Williams, the Coordinator of PRASEG, and telling him I’d met the wonderful Professor Geoff Williams, of Durham Univeristy, who has put together a system of organic light emitting diode (LED) lighting and a 3-D printed control unit, and, and, and Rhys actually yawned. He couldn’t contain it, it just kind of spilled out. I told myself : “It’s not me. It’s the subject matter”, and I promptly forgave him. Proof, though, of the threshold for things technical amongst Westminster fixers and shakers.

Poland. I mean, I know James Delingpole has been to Poland, and I thought at the time he was possibly going to interfere with the political process on climate change, or drum up support for shale gas. But I’m a Zero Carbon kind of actor. I don’t need to go far to start a dialogue with Poland by going to Poland – I have Poles living in my street, and I’m invited to all their barbecues. Maybe I should invite Professor Mayer Hillman to cycle over to Waltham Forest and address my near neighbours and their extended friendship circle on the importance of renewable energy and energy efficiency targets, and ask them to communicate with the folks back home with any form of influence.

Battle of the Lords

I don’t quite know what powers Lord Deben, John Gummer, but he looks remarkably wired on it. At this week’s PRASEG Annual Conference, he positively glowed with fervour and gumption. He regaled us with tales of debate in the House of Lords, the UK’s parliamentary “senior” chamber. He is a known climate change science adherent, and in speaking to PRASEG, he was preaching to the choir, but boy, did he give a bone-rattling homily !

As Chairman of the Committee on Climate Change, he is fighting the good fight for carbon targets to be established in all areas of legislation, especially the in-progress Energy Bill. He makes the case that emissions restraint and constraint is now an international business value, and of importance to infrastructure investment :-

“The trouble with energy efficiency is that it’s not “boys’ toys” – there’s no “sex” in it. It is many small things put together to make a big thing. We won’t get to a point of decarbonisation unless we [continuously] make [the case for] [continuous] investment. […] GLOBE [of which I am a member] in a report – 33 major countries – doing so much. […] Look at what China is doing. Now a competitive world. If we want people to come here and invest, we need to have a carbon intensity target in 2030 [which will impact] [manufacturing] and the supply chain. [With the current strategy, the carbon targets are] put down in 2020 and picked up again in 2050. Too long a gap for business. They don’t know what happens in between. This is not all about climate change. It is about UK plc.”

To supplement this diet of upbeat encouragement, he added a good dose of scorn for fellow Lords of the House, the Lords Lawson (Nigel Lawson) and Lord Ridley (Matt Ridley) who, he seemed to be suggesting, clearly have not mastered the science of climate change, and who, I believe he imputed, have lost their marbles :-

“Apart from one or two necessary sideswipes, I agree with the previous speaker. There is no need for disagreement except for those who dismiss climate change. [I call them “dismissers” as we should not] dignify their position by calling them “sceptics”. We are the sceptics. We come to a conclusion based on science and we revisit it every time new science comes our way. They rifle through every [paper] to find every little bit that suppports their argument. I’ve listened to the interventions [in the House of Lords reading of and debate on the Energy Bill] of that group. Their line is the Earth is not [really] warming, so, it’s too expensive to do anything. This conflicts with today’s World Meteorological Organization measurements – that the last decade has been the warmest ever. I bet you that none of them [Lords] will stand up [in the House of Lords] and say “Sorry. We got it wrong.” They pick one set of statistics and ignore the rest. It is a concentrated effort to undermine by creating doubt. Our job is constantly to make it clear they we don’t need to argue the case – the very best science makes it certain [but never absolute]. You would be very foolish to ignore the consensus of view. […] In a serious grown-up world, we accept the best advice – always keeping an eye out for new information. Otherwise, [you would] make decisions on worst information – no sane person does that.”

He encouraged us to encourage the dissenters on climate change science to view the green economy as an insurance policy :-

“Is there a householder here who does not insure their houses against fire ? You have a 98% change of not having a fire. Yet you spend on average £140 a year on insurance. Because of the size of the disaster – the enormity of the [potential] loss. Basic life-supporting insurance. I’m asking for half of that. If only Lord Lawson would listen to the facts instead of that Doctor of Sports Science, Benny Peiser. Or Matt Ridley – an expert in the sexual habits of pheasants. If I want to know about pheasants, I will first ask Lord Ridley. Can he understand why I go to a climatologist first ? [To accept his view of the] risks effects of climate change means relying on the infallibility of Lord Lawson […]”

He spoke of cross-party unity over the signing into law of the Climate Change Act, and the strength of purpose within Parliament to do the right thing on carbon. He admitted that there were elements of the media and establishment who were belligerently or obfuscatingly opposing the right thing to do :-

“[We] can only win if the world outside has certainty about institutional government. This is a battle we have taken on and won’t stop till we win it. [The Lord Lawson and Lord Ridley and their position is] contrary to science, contrary to sense and contrary to the principle of insurance. They will not be listened to, not now, until UK has reduced level of carbon emissions, and we have [promised] our grandchildren they they are safe from climate change.”

Phew ! That was a war cry, if ever there was one ! We are clearly in the Salvation Army ! I noted the attendance list, that showed several Gentlemen and Ladies of the Press should have been present, and hope to read good reports, but know that in some parts of the Gutter, anti-science faecal detritus still swirls. We in One Birdcage Walk were the assembly of believers, but the general public conversation on carbon is poisoned with sulphurous intent.

Birdcage Walk : Cheesestick Rationing

Yesterday…no, it’s later than I think…two days ago, I attended the 2013 Conference of PRASEG, the Parliamentary Renewable and Sustainable Energy Group, at the invitation of Rhys Williams, the long-suffering Coordinator. “…Sorry…Are you upset ?” “No, look at my face. Is there any emotion displayed there ?” “No, you look rather dead fish, actually”, etc.

At the prestigious seat of the Institute of Mechanical Engineers (IMechE), One Birdcage Walk, we were invited down into the basement for a “drinks reception”, after hearing some stirring speeches and intriguing panel discussions. Despite being promised “refreshments” on the invitation, there had only been beverages and a couple of bikkies up until now, and I think several of the people in the room were starting to get quite hypoglycemic, so were grateful to see actual food being offered.

A market economy immediately sprang up, as there was a definite scarcity in the resources of cheesesticks, and people jostled amiably, but intentionally, so they could cluster closest to the long, crispy cow-based snacks. The trading medium of exchange was conversation. “Jo, meet Mat Hope from Carbon Brief, no Maf Smith from Renewable UK. You’ve both been eviscerated by Delingpole online”, and so on.

“Welcome to our own private pedestal”, I said to somebody, who it turned out had built, probably in the capacity of developer, a sugarcane bagasse Combined Heat and Power plant. The little table in the corner had only got room around it for three or at most four people, and yet had a full complement of snack bowls. Bonus. I didn’t insist on memorising what this fellow told me his name was. OK, I didn’t actually hear it above the hubbub. And he was wearing no discernible badge, apart from what appeared to be the tinge of wealth. He had what looked like a trailing truculent teenager with him, but that could have been a figment of my imagination, because the dark ghost child spoke not one word. But that sullenness, and general anonymity, and the talkative gentleman’s lack of a necktie, and his slightly artificial, orange skin tone, didn’t prevent us from engaging wholeheartedly in a discussion about energy futures – in particular the default options for the UK, since there is a capacity crunch coming very soon in electricity generation, and new nuclear power reactors won’t be ready in time, and neither will Carbon Capture and Storage-fitted coal-fired power plants.

Of course, the default options are basically Natural Gas and wind power, because large amounts can be made functional within a five year timeframe. My correspondent moaned that gas plants are closing down in the UK. We agreed that we thought that new Combined Cycle Gas Turbine plant urgently needs to be built as soon as possible – but he despaired of seeing it happen. He seemed to think it was essential that the Energy Bill should be completed as soon as possible, with built-in incentives to make Gas Futures a reality.

I said, “Don’t wait for the Energy Bill”. I said, “Intelligent people have forecast what could happen to Natural Gas prices within a few years from high European demand and UK dependence, and are going to build gas plant for themselves. We simply cannot have extensions on coal-fired power plants…” He agreed that the Large Combustion Plant Directive would be closing the coal. I said that there was still something like 20 gigawatts of permissioned gas plant ready to build – and with conditions shaping up like they are, they could easily get financed.

Earlier, Nigel Cornwall, of Cornwall Energy had put it like this :-

“Deliverability and the trilemma [meeting all three of climate change, energy security and end-consumer affordability concerns] [are key]. Needs to be some joined-up thinking. […] There is clearly a deteriorating capacity in output – 2% to 5% reduction. As long as I’ve worked in the sector it’s been five minutes to midnight, [only assuaged by] creative thinking from National Grid.”

However, the current situation is far from bog standard. As Paul Dickson of Glennmont Partners said :-

“£110 billion [is needed] to meet the [electricity generation] gap. We are looking for new sources of capital. Some of the strategic institutional capital – pension funds [for example] – that’s who policy needs to be directed towards. We need to look at sources of capital.”

Alistair Buchanan, formerly of Ofgem, the power sector regulator, and now going to KPMG, spent the last year or so of his Ofgem tenure presenting the “Crunch Winter” problem to as many people as he could find. His projections were based on a number of factors, including Natural Gas supply questions, and his conclusion was that in the winter of 2015/2016 (or 2016/2017) power supply could get thin in terms of expansion capacity – for moments of peak demand. Could spell crisis.

The Government might be cutting it all a bit fine. As Jenny Holland of the Association for the Conservation of Energy said :-

“[Having Demand Reduction in the Capacity Mechanism] Not our tip-top favourite policy outcome […] No point to wait for “capacity crunch” to start [Energy Demand Reduction] market.”

It does seem that people are bypassing the policy waiting queue and getting on with drawing capital into the frame. And it is becoming more and more clear the scale of what is required. Earlier in the afternoon, Caroline Flint MP had said :-

“In around ten years time, a quarter of our power supply will be shut down. Decisions made in the next few years. Consequences will last for decades. Keeping the lights on, and [ensuring reasonably priced] energy bills, and preventing dangerous climate change.”

It could come to pass that scarcity, not only in cheesesticks, but in electricity generation capacity, becomes a reality. What would policy achieve then ? And how should Government react ? Even though Lord Deben (John Gummer) decried in the early afternoon a suggestion implying carbon rationing, proposed to him by Professor Mayer Hillman of the Policy Studies Institute, it could yet turn out that electricity demand reduction becomes a measure that is imposed in a crisis of scarcity.

As I put it to my sugarcane fellow discussionee, people could get their gas for heating cut off at home in order to guarantee the lights and banks and industry stay on, because UK generation is so dependent on Natural Gas-fired power.

Think about it – the uptake of hyper-efficient home appliances has turned down owing to the contracting economy, and people are continuing to buy and use electronics, computers, TVs and other power-sucking gadgets. Despite all sizes of business having made inroads into energy management, electricity consumption is not shifting downwards significantly overall.

We could beef up the interconnectors between the UK and mainland Europe, but who can say that in a Crunch Winter, the French and Germans will have any spare juice for us ?

If new, efficient gas-fired power plants are not built starting now, and wind farms roll out is not accelerated, the Generation Gap could mean top-down Energy Demand Reduction measures.

It would certainly be a great social equaliser – Fuel Poverty for all !

London : Array, Invest, Divest

Showcasing the London Array offshore wind farm in the last week at its official launch, the UK’s Prime Minister David Cameron said “[…] We are making this country incredibly attractive to invest in […] When it comes to green energy, I think we have one of the clearest, most predictable investment climates. And we’re going to add to that by completing the Energy Bill this year. So, we will have a fantastic market for investors to come and build in. […]” (see below).

I think developers of solar energy in Britain would disagree quite extensively with his claim that there is a stable regime for green energy. The most effective stimulus tool, the Feed-in Tariff, was applauded and then mauled in short succession by the Conservative-Liberal-Democrat Coalition Government. Installation rates have simply not recovered from chewings from the Treasury attack dog. It’s been boom and then bust, bust, bust, with flurries of activity in summer, but not much more :-

And this despite the yappy enthusiasm (perhaps “big, hairy”, or “big, sexy” ambition) that Greg Barker MP and his Dachshund, Otto, have for sun-fired electricity generation :-

The Energy Bill should have been finished a long time ago, and I’m pretty sure it would have been, apart from the insane obsession with new nuclear power, which all along was predicted to consist of several kinds of big, chunky subsidy, and shows no signs of being anything other than a bankrolling exercise, even now (and too late to bridge Alistair Buchanan‘s “Crunch Winter” of 2015/2016).
“EDF Nuclear Deal in U.K. May Take ‘A Few Months’ : By Alex Morales – Jul 2, 2013 : The U.K. may take “a few months” to agree the price that Electricite de France SA (EDF) will get for power from Britain’s first new nuclear power station in two decades, Energy Secretary Ed Davey suggested. The government has been in talks for months with EDF to agree a so-called strike price the French utility will get for power from a planned plant at Hinkley Point in southwest England. Davey told Parliament’s multi-party Energy and Climate Change Committee he won’t sign a contract with EDF unless it represents “value for money” for consumers. “Even if we agree in the next few months, a nuclear reactor at Hinkley point won’t be producing until the end of this decade at best,” Davey said today. “They have been very constructive negotiations. They are taking some time, and that’s because they are very complicated.”
“[…] Mr Davey told The Guardian that EDF was aware of the strike price that he would agree to and that he was “not going to budge an inch”. He said: “Sometimes people said it is EDF or bust. I would like to do a deal with EDF but we don’t have to. I was in Korea and Japan recently talking to other investors and vendors. Their interest in the UK market was massive. I got the very strong impression that the sort of price I was happy to agree with EDF, they could match.” In the same interview he said: “We have other nuclear options. Hitachi are very live options. They bought Horizon only last year and their pace of progress is truly impressive.” He noted that Hitachi had delivered four reactors “on time and on budget”. […]”

But the most serious contention that I have with David Cameron’s remarks is his painting a picture that the UK needs international capital to reach down from geostationary orbit, or where it is a bit lower, in transcontinential flight at 35,000 feet, to touch and bless the UK with its gilded finger of providence.

Don’t we have any investors in Britain ? We may have only a few, small British companies that can build green energy for us, but we do have a lot of wealth lurking within these very shores, or representatives of a lot of wealth. Could we not demand that those who shore their cash in Britain, and take advantage of cheap corporate tax deals, invest in British green energy ? Could we not make green energy investment a sine qua non of the residence or passsage of wealth in and through the City of London ?

Many people in Great Britain have pensions, and those pensions have funds, and those funds have fund managers. There’s a lot of money, right there. What are the criteria that govern pension pot investment ?

And then there’s the banks. Almost everyone in the UK has a bank account. Are the banks held to policies to direct finance and investment towards green energy and clean tech ? Do their customers demand it ?

Why does the UK Government not stipulate that “best value for money” as a criteria on all contracts of procurement – and investment – has to be matched by “best carbon emissions reduction potential” ?

Or are we in such an austere position that we need to offer huge, fattened sweeteners from the Treasury tax honeypot, and permission to raise already high power prices for customers, to any international engineering firm prepared to pour concrete here, so that they can arrange for the finance this guarantees ? Why are we in a position where we are being forced to throw public money and billpayer burdens at private companies to guarantee new energy build ?

This looks like a worse deal than PFI. In fact, it is much, much worse that the Private Finance Inititative, or the revamped new acronyms that replaced it. This is the wholesale gifting of large amounts of annual tax revenue and fingerlicking kilowatt hour prices to large, transnational corporations. If the economy gets worse, which it probably will, these big new construction projects may never get completed. And the new national energy infrastructure that does manage to get built won’t even be ours. Unless they go wrong, in which case the country will have to pay to mop them up. Or at the end of life, when the taxpayers and billpayers will need to pay to decommission nuclear reactors and dispose of radioactive waste.

And while we’re on the subject of investment, I need to point out that not all big infrastructure projects are alike. Some development is good, some bad. I don’t really see how the Olympic building spree can be compared in any way to what’s necessary for creating a decarbonised energy system. And building larger ports, and roads, and airports, anticipates higher levels of traded goods – the kind of economic growth that caused climate change in the first place.

If David Cameron wants to crow about big projects and be praised for it, he needs to de-select examples that are unsustainable.

There really needs to be more focus on what we really need for the future, and that requires discernment in investment. It requires moving away from high consumption models of economy, of divesting from stocks and shares in waste, pollution, carbon emissions and unnecessary trade.

Invest, yes, but divest, also.
“4 July 2013: The Diocese of Southwark passed a resolution yesterday (3 July 2013) calling on the General Synod of the Church of England to consider disinvestment from fossil fuels.”

The UK’s Prime Minister David Cameron speaking outside at the London Array site :-

“Well let’s be clear this is the biggest offshore wind farm anywhere in the world.
And what it shows is Britain is a great country to come and invest in. And it’s meant
jobs for local people. And it means clean, green energy for half a million homes in
our country. It’s part of what we need to have secure, reliable supplies of electricity
and to get investment and jobs for our people, so it’s a good day for Britain.”

David Cameron speaking at the Press Launch indoors :-

“Well of course, when I chaired the G8, I had to arrange everything, starting with
the dress code. There was some criticism. Why wasn’t I wearing a tie ? What people
didn’t realise of course was that President Putin wanted to do the whole thing
barechested on horseback, and I of course had to negotiate him down to smart casual.
We haven’t had that problem today.

Sometimes people wonder, can we in the West, can we do big projects any more ? Can we
do the big investments ? Isn’t that all happening somewhere else in the East and the
South of our world ?

And I think if you look at the United Kingdom right now you can see WE CAN do big
projects. Not only did we do a superb Olympics last year, but underneath London,
CrossRail is the biggest construction project anywhere in Europe.

Not far away from here is Dubai Ports World London Gateway, which is the biggest port
contruction taking place anywhere in Europe.

And here you have the biggest offshore wind farm anywhere in the world.

I think it demonstrates Britain is a great place to invest.

I don’t want to have too much Schadenfreude, but it’s actually a fact that last year,
foreign direct investment into Europe as a whole went down by something like 40%, but in
the UK it went up by 24%.

We are making this country incredibly attractive to invest in, and and that’s part of what
this project is about.

When it comes to green energy, I think we have one of the clearest, most predictable
investment climates. And we’re going to add to that by completing the Energy Bill this year.

So, we will have a fantastic market for investors to come and build in.

So, a great win for Kent, a great win for renewable energy and a great win for Britain.”

They Think It’s Not All Over

[ Image Credit : Lakeview Gusher : ]

So, the EIA say that the world has 10 years of shale oil resources which are technically recoverable. Woo hoo. We’ll pass over the question of why the American Department of Energy are guiding global energy policy, and why this glowing pronouncement looks just like the mass propaganda exercise for shale gas assessments that kicked off a few years ago, and move swiftly on to the numbers.

No, actually, not straight on to the numbers. It shouldn’t take a genius to work out the public relations strategy for promoting increasingly dirtier fossil fuels. First, they got us accustomed to the idea of shale gas, and claimed without much evidence, that it was as “clean” as Natural Gas, and far, far cleaner than coal. Data that challenges this myth continues to be collected. Meanwhile, now we are habituated to accepting without reason the risks of subsurface and ground water reservoir destruction by hydraulic fracturing, we should be pliable enough to accept the next step up – oil shale oil fracking. And then the sales team can move on to warm us up to cruddier unconventionals, like bitumen exhumed from tar sands, and mining unstable sub-sea clathrates.

Why do the oil and gas companies of the world and their trusted allies in the government energy departments so desperately want us to believe in the saving power of shale oil and gas ? Why is it necessary for them to pursue such an environmentally threatening course of product development ? Can it be that the leaders of the developed world and their industry experts recognise, but don’t want to admit to, Peak Oil, and its twin wraith, Peak Natural Gas, that will shadow it by about 10 to 15 years ?

A little local context – UK oil production is falling like a stoneover the whole North Sea area. Various efforts have been made to stimulate new investment in exploration and discovery. The overall plan for the UK Continental Shelf has included opening up prospects via licence to smaller players in the hope of getting them to bet the farm, and if they come up trumps, permitted the larger oil and gas companies to snaffle up the small fry.

But really, the flow of Brent crude oil is getting more expensive to guarantee. And it’s not just the North Sea – the inverse pyramid of the global oil futures market is teeteringly wobbly, even though Natural Gas Liquids (NGL) are now included in petroleum oil production figures. Cue panic stations at the Coalition (Oilition) Government offices – frantic rustling of review papers ahoy.

To help them believe it’s not all over, riding into view from the stables of Propaganda Central, come the Six Horsemen of Unconventional Fossil Fuels : Tar Sands, Shale Gas, Shale Oil (Oil Shale Oil), Underground Coal Gasification, Coalbed Methane and Methane Hydrates.

Shiny, happy projections of technically recoverable unconventional (night)mares are always lumped together, like we are able to suddenly open up the ground and it starts pouring out hydrocarbon goodies at industrial scale volumes. But no. All fossil fuel development is gradual – especially at the start of going after a particular resource. In the past, sometimes things started gushing or venting, but those days are gone. And any kind of natural pump out of the lithosphere is entirely absent for unconventional fossil fuels – it all takes energy and equipment to extract.

And so we can expect trickles, not floods. So, will this prevent field depletion in any region ? No. It’s not going to put off Peak Oil and Peak Natural Gas – it literally cannot be mined fast enough. Even if there are 10 years of current oil production volumes that can be exploited via mining oil shale, it will come in dribs and drabs, maybe over the course of 50 to 100 years. It might prolong the Peak Oil plateau by a year or so – that’s barely a ripple. Unconventional gas might be more useful, but even this cannot delay the inevitable. For example, despite the USA shale gas “miracle”, as the country continues to pour resources and effort into industrialising public lands, American Peak Natural Gas is still likely to be only 5 years, or possibly scraping 10 years, behind Global Peak Natural Gas which will bite at approximately 2030 or 2035-ish. I suspect this is why EIA charts of future gas production never go out beyond 2045 or so :-

Ask a mathematician to model growth in unconventional fossil fuels compared to the anticipated and actual decline in “traditional” fossil fuels, and ask if unconventionals will compensate. They will not.

The practice for oil and gas companies is to try to maintain shareholder confidence by making sure they have a minimum of 10 years of what is known as Reserves-to-Production ratio or R/P. By showing they have at least a decade of discovered resources, they can sell their business as a viable investment. Announcing that the world has 10 years of shale oil it can exploit sounds like a healthy R/P, but in actual fact, there is no way this can be recovered in that time window. The very way that this story has been packaged suggests that we are being encouraged to believe that the fossil fuel industry are a healthy economic sector. Yet it is so facile to debunk that perspective.

People, it’s time to divest your portfolios of oil and gas concerns. If they have to start selling us the wonders of bitumen and kerogen, the closing curtain cannot be far away from dropping.

They think it’s not all over, but it so clearly must be.

Natural Gas in the UK

The contribution of coal-fired power generation to the UK’s domestic electrical energy supply appears to have increased recently, according to the December 2012 “Energy Trends” released by the Department of Energy and Climate Change. This is most likely due to coal plants using up their remaining allotted operational hours until they need to retire.
It could also be due to a quirk of the international markets – coal availability has increased because of gas glut conditions in the USA leading to higher coal exports. Combatting the use of coal in power generation is a global struggle that still needs to be won, but in the UK, it is planned that low carbon generation will begin to gain ascendance.

The transition to lower carbon energy in Britain relies on getting the Natural Gas strategy right. With the imminent closure of coal-fired power plant, the probable decommissioning of several nuclear reactors, and the small tranche of overall supply coming from renewable resources, Natural Gas needs to be providing a greater overall percentage of electricity in the grid. But an increasing amount of this will be imported, since indigenous production is dropping, and this is putting the UK’s economy at risk of high prices and gas scarcity.

Demand for electricity for the most part changes by a few percentage points a year, but the overall trend is to creep upwards (see Chart 4, here). People have made changes to their lighting power consumption, but this has been compensated for by an increase in power used by “gadgets” (see Chart 4, here). There is not much that can be done to suppress power consumption. Since power generation must increasingly coming from renewable resources and Natural Gas combustion, this implies strong competition between the demand for gas for heating and the demand gas for electricity. Electricity generation is key to the economy, so the power sector will win any competition for gas supplies. If competition for Natural Gas is strong, and since we don’t have much national gas storage, we can expect higher seasonal imports and therefore, higher prices.

It is clear that improving building insulation across the board is critical in avoiding energy insecurity. I shall be checking the winter heat demand figures assiduously from now on, to determine if the Green Deal and related measures are working. If they don’t, the UK is in for heightened energy security risks, higher carbon emissions, and possibly much higher energy prices. The Green Deal simply has to work.

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.

A Question of Resilience

Again, the evil and greedy oil, gas and mining companies have proved their wickedness by manipulating public opinion, by directly financing conspiracy theorists who deny climate change science. The irony is tangibly acidic. The paranoid have actually been duped by a genuine conspiracy. They have drunk the Kool Aid; they have believed the lies; they have continued to communicate doubt. They think they are challenging corruption in high places, but what they are really doing is reinforcing apathy in the face of genuine risk.

The questions posed so unrelentingly by the climate change deniers have sewn a patchwork tapestry of disinformation, which continues to poison genuine dialogue and is undermining political progress. We cannot take these people with us into constructive engagement, and ask them to help us forge a broad consensus. It is as if they exist in a parallel universe. Some of us will continue to attempt to conduct dialogue, but will end up wasting our time. The documentation by the media is faulty, and perpetuates the success of the denier strategy of divide and rule.

But hold on a minute. There are problems with the stance of climate change denial, but what about the positioning of climate change activists ? Let’s try that first paragraph one more time :-

[ Again, the “evil” and “greedy” oil, gas and mining companies have proved their “wickedness” by manipulating public opinion, by directly financing conspiracy theorists who deny climate change science. The irony is tangibly acidic. The paranoid have actually been duped by a genuine conspiracy. They have drunk the Kool Aid; they have believed the lies; they have continued to communicate doubt. They think they are challenging corruption in high places, but what they are really doing is reinforcing apathy in the face of genuine risk. ]

By casting the fossil fuel and mining corporations as wrongly motivated, by using negative emotive labels, the dominant narrative of political activists has failed, once again, to move us all forward. These kinds of revelations about underhand corporate public relations activities are by now unsurprising. The news cannot shock, although it may disgust. Yet, since nothing is offered to counter-balance or correct the inappropriate behaviour of the “fossil fuellers”, they win the game they invented, the game they wrote the rules for. Protesting at a petrol station achieves nothing of any note, not even when there’s a camera-friendly polar bear. We hear the message of pain, but there is no ointment. There is a disconnect between the gruesome discovery and any way out of this mess. The revelation of intent of the carbon dinosaurs, the recounting of the anti-democratic activities, does not result in change.

Environmental pollution is a “victimless” crime – no matter how much we sympathise or empathise with the plight of poisoned floating fish, dying bees, asthmatic kids, or cancer-laden people. Fines and taxes cannot rectify the scourge of environmental pollution, because there is no ultimate accountability. Regulation cannot be enforced. The misbehaviour just carries on, because there is systemic momentum. There is no legal redress (“due process” in Americanese) for those who are suffering the worsening effects of climate change, and there is no treaty that can be made to curb greenhouse gas emissions that anybody can be bound to by international sanctions.

And so when we hear the same old story – that the energy industry is propagandising – we cannot respond. We don’t know what we can do. We are paralysed. This narrative is so tired, it snores.

Truth may have been a victim, but the energy industry are also vulnerable – they are acting in self-defence mode. Let’s take the big vista in : there is stress in the global production of fossil fuel energy, and all routes to an easy fix, even if it’s only a short-term fix, are choked.

So let’s ask the question – why do the energy companies deceive ? Do they think they are being deceptive ? Why do fossil fuel miners seek to massage public opinion ? This is a question of resilience, of Darwinian survival – seeking advantage by altering policy by tampering with public assent. They believe in their product, they construct their mission – they are protecting their future profits, they’re making a living. They’re humans in human organisations. They’re not “evil”, “greedy” or “lying” – as a rule. There are no demons here, nor can we convincingly summon them.

Look at the activist game plan – we announce the deliberate actions of the fossil fuel companies to influence the political mandate. But these scandals are only ever voiced, never acted upon. They cannot be acted upon because those who care have no power, no agency, to correct or prevent the outcomes. And those who should care, do not care, because they themselves have rationalised the misdemeanours of the fossil fuellers. They too have drunk from the goblet of doubt. Amongst English-speaking politicians, I detect a good number who consider climate change to be a matter for wait-and-see rather than urgent measures. Besides those who continue to downplay the seriousness of climate change.

Look also at the difference between the covert nature of the support for climate change deniers, and the open public relations activities of the fossil fuel and mining companies. They speak in the right way for their audiences. That’s smart.

In time, the end of the fossil fuel age will become apparent, certain vague shapes on the horizon will come out of the blur and into sharp focus. But in the meantime, the carbon dinosaurs are taking action to secure market share, maintain the value of their stock, prop up the value of their shareholders’ assets. The action plan for survival of the oil, gas, coal and mining operations now includes the promotion of extreme energy – so-called unconventional fossil fuels, the once-dismissed lower quality resources such as tight gas, shale gas, shale oil and coalbed methane (coal seam methane). Why are the energy industry trying to gild the rotten lily ? Is the support for unconventional fossil fuels a move for certain countries, such as the United States of America, to develop more indigenous sources of energy – more homegrown energy to make them independent of foreign influence ? This could be the main factor – most of the public relations for shale gas, for example, seems to come from USA.

The answer could come by responding to another question. Could it be that the production of petroleum oil has in fact peaked – that decline has set in for good ? Could it be that the Saudis are not “turning off the taps” to force market prices, because in actual fact the taps are being turned off for them, by natural well depletion ? The Arab Spring is a marvellous distraction – the economic sanctions and military and democratic upheaval are excellent explanations for the plateau in global oil production.

It seems possible from what I have looked at that Peak Oil is a reality, that decline in the volumes of produced petroleum is inevitable. The fossil fuel producers, the international corporations who have their shareholders and stock prices to maintain, have been pushing the narrative that the exploitation of unconventional fossil fuels can replace lost conventional production. They have been painting a picture of the horn of plenty – a cornucopia of unconventional fossil fuels far exceeding conventional resources. To please their investors, the fossil fuel companies are lying about the future.

Sure, brute force and some new technology are opening up “unconventionals” but this will not herald the “golden age” of shale gas or oils from shale. Shale gas fields deplete rapidly, and tar sands production is hugely polluting and likely to be unsustainable in several ways because of that. There might be huge reserves – but who knows how quickly heavy oils can be produced ? And how much energy input is required to create output energy from other low grade fossil strata ? It is simply not possible to be certain that the volumes of unconventional fossil fuel production can match the decline in conventionals.

The facts of the matter need admitting – there is no expansion of sweet crude oil production possible. There’s no more crude – there’s only crud. And slow crud, at that.

Peak Oil is a geological fact, not a market artefact. The production levels of crude and condensate may not recover, even if military-backed diplomacy wins the day for the energy industry in the Middle East and North Africa.

Peak Oil has implications for resilience of the whole global economy – the conversion of social and trade systems to use new forms of energy will take some considerable time – and their integrity is at risk if Peak Oil cannot be navigated smoothly. Peak Oil is dangerous – it seems useful to deny it as long as possible.

It’s pretty clear that we’ve been handed lots of unreliable sops over the years. The energy industry promised us that biofuels could replace gasoline and diesel – but the realisation of this dream has been blocked at every turn by inconvenient failings. The energy industry has, to my mind, been deploying duds in order to build in a delay while they attempt to research and develop genuine alternatives to conventional fossil fuels – but they are failing. The dominant narrative of success is at risk – will all of this continue to hold together ? Can people continue to believe in the security of energy systems – the stability of trade and economic wealth creation ? Oh yes, people raise concerns – for example about disruption in the Middle East and North Africa, and then propose “solutions” – regime change, military support for opposition forces, non-invasive invasions. But overall, despite these all too evident skirmishes, the impression of resilience is left intact. The problem is being framed as one of “edge issues” – not systemic. It’s not clear how long they can keep up with this game.

The facade is cracking. The mask is slipping. BP and Centrica in a bout of hyper-realism have said that the development of shale gas in the UK will not be a “game changer”. It may be that their core reasoning is to drag down the market value of Cuadrilla, maybe in order to purchase it. But anyway, they have defied the American energy industry public relations – hurrah ! Shale gas is not the milk of a honey-worded mother goddess after all – but what’s their alternative story ? That previously under-developed gas in Iran and Iraq will be secured ? And what about petroleum ? Will the public relations bubble about that be punctured too ? Telling people about Peak Oil – how useful is that ? They won’t do it because it has to be kept unbelievable and unbelieved in order to save face and keep global order. Academics talk about Peak Oil, but it is not just a dry, technical question confined to ivory towers. Attention is diverted, but the issue remains. Looking at it doesn’t solve it, so we are encouraged not to look at it.

So, why do the energy industry purposely set out to manipulate public opinion ? Well, the reason for their open advertising strategy is clear – to convince investors, governments, customers, that all is well in oil and gas – that there is a “gas glut” – that the world is still awash in petroleum and Natural Gas – that the future will be even more providential than the past – that the only way is up. All the projections of the oil and gas industry and the national, regional and international agencies are that energy demand will continue to rise – the underlying impression you are intended to be left with is that, therefore, global energy supply will also continue to rise. Business has never been better, and it can only get more profitable. We will need to turn to unconventional resources, but hey, there’s so much of the stuff, we’ll be swimming in it.

But what is the purpose of the covert “public relations” of the energy industry ? Why do they seek to put out deception via secretly-funded groups ? When the truth emerges, as it always does in the end, the anger and indignation of the climate change activists is guaranteed. And angry and indignant activists can easily be ignored. So, the purpose in funding climate change deniers is to emotionally manipulate climate change activists – rattle their cages, shake their prison bars. Let them rail – it keeps the greens busy, too occupied with their emotional disturbance. By looking at these infractions in depth are we being distracted from the bigger picture ? Can we make any change in global governance by bringing energy industry deception to light ?

Even as commentators peddle conspiracy theories about the science and politics of a warming planet, the “leader of the free world” is inaugurated into a second term and announces action on climate change. Although progressives around the world applaud this, I’m not sure what concrete action the President and his elite colleague team of rich, mostly white, middle-aged men can take. I am listening to the heartbeat of the conversation, and my take away is this : by announcing action on climate change, Barack Obama is declaring war on the sovereignty of the oil and gas producing nations of the Middle East and North Africa.

You see, the Middle East and North Africa are awash in Natural Gas. Untapped Natural Gas. The seismic surveys are complete. The secret services have de-stabilised democracy in a number of countries now, and this “soft power” will assist in constructing a new narrative – that unruliness in the Middle East and North Africa is preventing progress – that the unstable countries are withholding Natural Gas from the world – the fossil fuel that can replace petroleum oil in vehicles when chemically processed, the fossil fuel that has half the carbon emissions of coal when generating electricity. Resources of Natural Gas need “protecting”, securing, “liberating”, to save the world’s economy from collapse.

Obama stands up and declares “war” on climate change. And all I hear is a klaxon alarm for military assault on Iran.

But even then, if the world turns to previously untapped Natural Gas, I believe this is only a short-term answer to Peak Oil. Because waiting in the wings, about ten years behind, is Peak Natural Gas. And there is no answer to Peak Natural Gas, unless it includes a genuine revolution in energy production away from what lies beneath. And that threatens the sustenance of the oil and gas industry.

No wonder, then, that those who fund climate change denial – who stand to profit from access to untapped fossil fuels, secured by military aggresssion in the Middle East and North Africa – also fund opposition to renewable energy. The full details of this are still emerging. Will we continue to express horror and distaste when the strategy becomes more transparent ? Will that achieve anything ? Or will we focus on ways to bring about the only possible future – a fossil-fuel-free energy economy ? This will always take more action than words, but messaging will remain key. The central message is one that will sound strange to most people, but it needs to be said : fossil fuels will not continue to sustain the global economy : all will change.

Funnily enough, that is exactly the summary of the statements from the World Economic Forum in Davos – only the world’s administration are still not admitting to Peak Fossil Fuels. Instead, they are using climate change as the rationale for purposeful decarbonisation.

Well, whichever way it comes, let’s welcome it – as long as it comes soon. It’s not just the survival of individual oil and gas companies that is at stake – the whole global economy is at risk from Peak Fossil Fuels – and climate change. I use the word “economy”, because that is the word used by MBAs. What I mean is, the whole of human civilisation and life on Earth is at risk from Peak Fossil Fuels and climate change. Unconventional fossil fuels are the most polluting answer to any question, and expansion of their use will undoubtedly set off “climate bombs“.

Don’t get me wrong – Natural Gas is a good bridge to the future, but it is only a transition fuel, not a destination. Please, can we not have war against Iran. Please let’s have some peaceful trade instead. And some public admissions of the seriousness of both Peak Fossil Fuels and climate change by all the key players in governance and energy.

Fossil Fuel Company Obligation

I knew I knew her from somewhere, Ms Henrietta Lynch PhD, from the UCL Energy Institute. I had the feeling we’d sheltered together from the rain/police helicopters at a Climate Camp somewhere, but she was fairly convinced we’d crossed paths at the Frontline Club, where, if she was recalling correctly, I probably tried to pick an “difference of opinion” with somebody, which she would have remembered as more than a little awkward.

Why ? Because when I’m surrounded by smart people displaying self-confidence, I sometimes feel pushed to try to irritate them out of any complacency they may be harbouring. Niceness can give me itchy feet, or rather emotional hives, and I don’t see why others should feel settled when I feel all scratchy.

So here we were at a Parliamentary event, and I was on my best behaviour, neither challenging nor remonstrative, but all the same, I felt the urge to engage Henrietta in disagreement. It was nothing personal, really. It was all about cognition, perception – worldviews, even. After my usual gauche preamble, I snuck in with a barbed gambit, “The United Nations climate change process has completely failed.” A shadow of anxiety crossed her brow. “Oh, I wouldn’t say that”, said Henrietta Lynch. She went on to recount for me the validity of the UN climate talks, and how much further we are because of the Kyoto Protocol. “Ruined by Article 12”, I said, “…the flexible mechanisms”. She said I shouldn’t underestimate the effort that had gone into getting everybody into the room to talk about a response to climate change. I said, it would be useful if the delegates to the climate talks had power of some kind – executive decision-making status. Henrietta insisted that delegates to the climate talks do indeed have authority.

I said that the really significant players, the oil and gas production companies, were not at the climate talks, and that there would be no progress until they were. I said that the last time the UN really consulted the oil and gas companies was in the 1990s, and the outcome of that was proposals for carbon trading and Carbon Capture and Storage. Each year, I said, the adminstration of the climate talks did the diplomatic equivalent of passing round a busker’s hat to the national delegations, begging for commitments to carbon emissions reductions. Besides leading to squabbling and game-playing, the country representatives do not even have the practical means of achieving these changes. Instead, I said, the energy production companies should be summoned to the climate talks and given obligations – to decarbonise the energy resources they sell, and to increase their production of renewable and sustainable energy. I said that without that, there will be no progress.

Oil and gas companies always point to energy demand as their get-out-of-jail-free card – they insist that while the world demands fossil fuel energy, they, the energy resource companies, are being responsible in producing it. Their economists say that consumer behaviour can be modified by pricing carbon dioxide emissions, and yet the vast majority of the energy they supply is full of embedded carbon – there is no greener choice. They know that it is impossible to set an economically significant carbon price in any form, that there are too many forces against it, and that any behavioural “signal” from carbon pricing is likely to be swallowed up by volatility in the prices of fossil fuels, and tax revenue demands. Most crucially, the oil and gas companies know that fossil fuels will remain essential for transport vehicles for some time, as it will be a long, hard struggle to replace all the drive engines in the world, and high volumes of transport are essential because of the globalised nature of trade.

Oil and gas companies have made token handwaving gestures towards sustainability. BP has spent roughly 5% of its annual budget on renewable energy, although it’s dropped its solar power division, and has now dropped its cellulosic ethanol facility. BP says that it will “instead will focus on research and development“. Research and development into what, precisely ? Improved oil and gas drilling for harsh environmental conditions like the Arctic Ocean or sub-sea high depth, high pressure fields ? How many renewable energy pipedreams are exhausted ? BP are willing to take competitors to court over biobutanol, but even advanced techniques to produce this biofuel are not yet commercialised.

So, the oil and gas majors do not appear to be serious about renewable energy, but are they also in denial about fossil fuels ? All business school graduates, anybody who has studied for an MBA or attended an economics course, they all come out with the mantra that technology will deliver, that innovation in technology will race ahead of the problems. Yet, as the rolling disasters of the multiple Fukushima Dai-ichi nuclear reactor accident and the continuing oil spill in the Gulf of Mexico from the blowout of the Horizon Deepwater drilling rig show, technological advancement ain’t what it used to be. Put not your faith in technology, for engineering may fail.

For the oil and gas companies to be going after the development of unconventional fossil fuel resources is an unspoken, tacit admission of failure – not only of holding a bold vision of change, but also a demonstration of the failure of being able to increase production from discoveries of more conventional petroleum and Natural Gas. It is true that oil and gas exploration has improved, and that technology to drill for oil and gas has improved, but it could be said that the halting pace of technological advancement means that the growth in fossil fuel exploitation is not strong enough to meet projected demand. Technology does not always make things more efficient – the basic fossil fuel resources are getting much poorer, and perhaps scarcer.

There is some evidence that global petroleum crude oil production rates have peaked, despite BP adding significant South American heavy oil fields to their annual Statistical Review of World Energy within the last few years. Some of the jitteriness in total production is down to geopolitical factors, like the chokehold that the United States has imposed on Iran via economic sanctions, and some of it is related to consumption patterns, but there is an element of resource failure, as indicated in this IMF report from last month :-

“Over the past decade the world economy has experienced a persistent increase in oil prices. While part of this may have been due to continued rapid demand growth in emerging markets, stagnant supply also played a major role. Figure 1 shows the sequence of downward shifts in the trend growth rate of world oil production since the late 1960s. The latest trend break occurred in late 2005, when the average growth rate of 1.8 percent per annum of the 1981-2005 period could no longer be sustained, and production entered a fluctuating plateau that it has maintained ever since.”

There is an increasing amount of evidence and projection of Peak Oil from diverse sources, so perhaps our attention should be drawn to it. If this type of analysis is to be trusted, regardless of whether the oil and gas companies pursue unconventional oil, change is inevitable. Bringing the oil and gas companies onto the world stage at the United Nations climate talks and demanding a reduction in fossil fuel production would be an straightford thing to make commitments to – as it is happening already. A huge facesaver in many respects – except that it does not answer the energy security question – how the world is going to be able to adapt to falling fossil fuel supplies. You see, besides Peak Oil, there are other peaks to contend with – it will not simply be a matter of exchanging one energy resource with another.

Can the oil and gas companies hold on by selling us Natural Gas to replace failing oil ? Only if Natural Gas itself is not peaking. As the oil and gas companies drill deeper, more Natural Gas is likely to be found than petroleum oil, but because they are so often associated, Peak Oil is likely to be followed quite sharply by Peak Natural Gas. But does anybody in the oil and gas companies really know ? And if they did, would they be able to let their shareholders and world’s media know about it without their businesses crumbling ?

What I want to know is : with all the skills of dialogue, collaboration, and facilitation that the human race has developed, why can Civil Society not engage the oil and gas companies in productive communication on these problems ?

Futureproof Renewable Sustainable Energy #3

PRASEG Annual Conference 2012
“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 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.

No Cause for Alarm

What is my agenda ?

Tamino’s Arctic Sea Ice Poll

For some time I have not felt a keen sense of “mission” – a direction for my climate change and energy activities. However, I am beginning to formulate a plan – or rather – I have one important item on my agenda. I am aware that perception can be fatal – and that people in many “camps” are going to dismiss me because of this.

Suddenly I don’t fit into anybody’s pigeonhole – so the needle on the dial will probably swing over to “dismiss”. However, I think it’s necessary to pursue this. I think I have to try.

I am prepared to hold several conflicting ideas in the balance at one time, and let the data add mass to one version of the truth or another.

I’m prepared to accept the possibility of low climate change sensitivity (the reaction of the Earth biosystem to global warming) – apart from the fact that the evidence is accumulating – pointing heavily towards rapid instabilities emerging on short timescales. I don’t think I ever really left behind the hope – and I’m crossing my fingers here – that some massive negative carbon feedback will arise, heroically, and stem the full vigour of climate chaos. But as time slips by, and the Arctic cryosphere continues to de-materialise before our very eyes, that hope is worn down to the barest of threads.

And on energy security, I am prepared to accept the reasoning behind the IEA, BP, Shell and other projections of increasing overall energy demand between now and 2035, and the percentage of fossil fuel use that will inevitably require – apart from the fact that some evidence points towards increasing uncertainties in energy provision – if we are relying on more complex and inaccessible resources, within the framework of an increasingly patchy global economy.

If access to energy becomes threatened for more people globally, and also if climate change becomes highly aggressive in terms of freshwater stress, then I doubt that human population growth can carry on the way it has been – and in addition the global economy may never recover – which means that overall energy demand will not grow in the way that oil and gas companies would like their shareholders to accept.

My impression is that energy producing companies and countries are not openly admitting the risks. If energy supply chaos sets in, then the political and governance ramifications will be enormous, especially since the energy industry is so embedded in administrations. It is time, in my view, that projections of world energy use to 2035 included error bars based on economic failure due to energy chaos.

What do I need to do – given these pragmatic positions ? I need to include realists in the crisis talks – pragmatic, flexible thinkers from the energy industry. Just as we are not going to solve climate change without addressing energy provision, we are not going to solve energy insecurity without addressing climate change impacts on energy infrastructure. And so I need to find the energy industry people, meet them and invite them to the discussions on the risks of chaos. I need people to take in the data. I need people to understand the problems with slipping back into “thinking as usual”.

As to the setting – whether I should be an employee or an independent advisor/adviser, consultant or a researcher, I don’t have any idea what would be best. Collaborators would be useful – as I am but one person with a track record of being rather awkward – despite trying to engage my best behaviour. But then, nobody’s perfect. In a sense it doesn’t matter who does the job, but we have to break the public relations-guided psychology of denial. People are not generally stupid, and many are snapping out of their drip-fed propaganda delusions. I wonder exactly how many other imperfect people are out there who are coming to the same conclusions ? And what will be the game changer ?

Obey the Future

Disobedience only gets you so far. Resistance can be fertile, but intellectual ghettos can be futile. The human tendency to generalise creates too much negativity and prevents us from being constructive. We complain about the “evil” oil and gas companies; the “greedy” coal merchants and their “lying” bankster financiers; but refuse to see the diamonds in the mud.

We should obey the future. In the future, all people will respect each other. There will no longer be war propaganda carried by the media, demonising leaders of foreign countries, or scorn for opposing political parties. In the future, human beings will respect and have regard for other human beings. So we should live that future, live that value, have care for one another. I don’t mean we are obliged to give money to charity to help needy people in poor countries. I don’t mean we should campaign for our government to commit funds to the Climate Finance initiatives, whose aim is to support adaptation to climate chaos in developing countries. No, charity is not enough, and never matches the need. Philanthropy will not answer climate change, and so solutions need to be built into the infrastructure of the global economy, sewn into the design, woven into the fabric. There should be no manufacture, no trade, no form of consumption that does not take account of the climate change impacts on the poor, and on the rich, on ecosystems, on ourselves.

Yes, it’s true that corporations are destroying the biosphere, but we cannot take a step back, grimace and point fingers of blame, for we are all involved in the eco-destructive economy. We are all hooked on dirty energy and polluting trade, and it’s hard to change this. It’s especially hard for oil, gas and coal companies to change track – they have investors and shareholders, and they are obliged to maintain the value in their business, and keep making profits. Yes, they should stop avoiding their responsibilities to the future. Yes, they should stop telling the rest of us to implement carbon taxation or carbon trading. They know that a comprehensive carbon price can never be established, that’s why they tell us to do it. It’s a technique of avoidance. But gathering climate storms, and accumulating unsolved climate damages, are leading the world’s energy corporations to think carefully of the risks of business as usual. How can the governments and society of the world help the energy companies to evolve ? Is more regulation needed ? And if so, what kind of political energy would be required to bring this about ? The United Nations climate change process is broken, there is no framework or treaty at hand, and the climate change social movement has stopped growing, so there is no longer any democratic pressure on the energy production companies and countries to change.

Many climate change activists talk of fear and frustration – the futility of their efforts. They are trapped into the analysis that teaches that greed and deceit are all around them. Yet change is inevitable, and the future is coming to us today, and all is quite possibly full of light. Where is this river of hope, this conduit of shining progress ? Where, this organised intention of good ?

We have to celebrate the dull. Change is frequently not very exciting. Behind the scenes, policy people, democratic leaders, social engineers, corporate managers, are pushing towards the Zero Carbon future reality. They push and pull in the areas open to them, appropriate to their roles, their paid functions. Whole rafts of national and regional policy is wedded to making better use of energy, using less energy overall, displacing carbon energy from all economic sectors.

And then there’s the progressive politics. Every leader who knows the shape of the future should strive to be a Van Jones, or a Jenny Jones, any green-tinged Jones you can think of. We should enquire of our political leaders and our public activists what flavour of environmental ecology they espouse. We should demand green policies in every party, expect clean energy support from every faction. We should not only vote progressive, we should promote future-thinking authority in all spheres of social management – a future of deeper mutual respect, of leaner economy, of cleaner energy.

The future will be tough. In fact, the future is flowing to us faster than ever, and we need resilience in the face of assured destructive change – in environment and in economy. To develop resilience we need to forgo negativity and embrace positivity. So I ask you – don’t just be anti-coal, be pro-wind, pro-solar and pro-energy conservation. Where leaders emerge from the companies and organisations that do so much harm, celebrate them and their vision of a brighter, better, lower carbon future. Where administrations take the trouble to manage their energy use, and improve their efficiency in the use of resources, applaud them, and load them with accolades. Awards may be trite, but praise can encourage better behaviour, create exemplars, inspire goodly competition. Let us encourage the people with good influence in every organisation, institution and corporation. Change is afoot, and people with genuine power are walking confidently to a more wholesome future.

Protect your soul. Don’t get locked into the rejection of evil, but hold fast to what is good. Do not conform to the patterns of this world, but be transformed by the renewing of your minds. Be strong for goodness, even as you turn your back on a life of grime.

Live the Zero Carbon future, and make it come as soon as it can.

Continue reading Obey the Future

Tillerson Talks It Down

Rex Tillerson, Chief Executive Officer of ExxonMobil, was recently invited to talk to the Council on Foreign Relations in the United States of America, as part of their series on CEOs.

His “on the record” briefing was uploaded to YouTube almost immediately as he made a number of very interesting comments.

Reactions were mixed.

The thing most commented upon was his handwaving away the significance of climate change – a little change here, a little change over there and you could almost see the traditional magician’s fez here – shazam – nothing to worry about.

In amongst all the online furore about this, was discussion of his continued Membership of the Church of Oil Cornucopia – he must have mentioned the word “technology” about seventy-five times in fifteen minutes. He clearly believes, as do his shareholders and management board, that his oil company can continue to get progressively more of the black stuff out of tar sands, oil shales or oil-bearing shale sediments and ever-tighter locked-in not naturally outgassing “natural” gas out of gas shales. At least in Northern America.

As numerous commentators with a background in Economics have claimed, well, the price of oil is rising, and that creates a market for dirtier, harder-to-reach oil. Obviously. But missing from their Law of Supply and Demand is an analysis of how oil prices are actually determined in the real world. It’s certainly not a free market – there are numerous factors that control the price of the end-product, gasoline, not least state sponsorship of industries, either through direct subsidies, or through the support of dependent industries such as car manufacture. At least in North America.

In the background, there is ongoing shuttle diplomacy between the major western economies and the assortment of regimes in the Middle East and North Africa (MENA) who still have the world’s largest pool of cleaner-ish petroleum under their feet. That, naturally, has an impact on supply and pricing : even though the strength of this bonding is not as tight-fast as it historically was, there appears to have been more of it since around 2005. Or at least, that’s when I first started monitoring it consciously.

In addition to that, there are only a limited number of players in the oil industry. It is almost impossible to break into the sector without an obscene amount of capital, and exceedingly good buddy-type relationships with everybody else in the field – including sheikhs you formerly knew from when you attended specialty schools. So, no, the market in oil is not free in any sense. It is rigged – if you’ll excuse the pun.

And then there’s foundational reasons why oil prices are artificial – and may not cause a boom in the “unconventional” production that Rex Tillerson is so excited about (in a rancher-down-the-farm kind of way). Oil is still fundamental to the global economy. In fact, the price of oil underpins most business, as oil is still dominant in the transportation of goods and commodities. Despite all the techno-wizardry, it is fundamentally more costly to drill for fossil fuels in shale, than from pressure wells where oil just gloops out of the ground if you stick a pipe in.

It’s not the drilling that’s the major factor – so the technology is not the main driver of the cost. It’s the put-up, take-down costs – the costs of erecting the infrastructure for a well, or putting underground shale heating or fracturing equipment in place, and the cleaning up afterwards. Some of the technologies used to mine shales for oil use an incredible amount of water, and this all needs to be processed, unless you don’t mind desecrating large swathes of sub-tropical scenery. Or Canada.

The price of oil production has a knock-on effect, including on the very markets that underpin oil production – so increasing oil prices have a cyclic forcing effect – upwards. It also has an impact on the prices of other essential things, such as food. One can see a parallel rise in the price of oil and the price of staple crops in the last few years – and the spiralling cost of grain wheat, rice and corn maize is not all down to climate change.

Oil companies are in a quandary – they need to have higher oil prices to justify their unconventional oil operations – and they also need good relationships with governments, who know they cannot get re-elected if too many people blame them for rising costs of living. Plus, there’s the global security factor – several dozen countries already have economies close to bust because of the cost of oil imports. There are many reasons to keep oil prices depressed.

Let’s ask that subtle, delicate question : why did Rex Tillerson espouse the attitudes he did when asked to go on the record ? Why belittle the effects of climate change ? The answer is partly to soothe the minds of American investors, (and MENA investors in America). If such a powerful player in the energy sector believes “we can adapt to that” about climate change, clearly behind-the-scenes he will be lobbying against excessive carbon pricing or taxation with the American federal administration.

And why be so confident that technology can keep the oil flowing, and make up for the cracks appearing in conventional supply chains by a frenzy of shale works ? Well, logically, he’s got to encourage shareholder confidence, and also government confidence, that his industry can continue to deliver. But, let’s just surmise that before he was shunted onto the stage in June, he’d had a little pre-briefing with some government officials. They would be advising him to show high levels of satisfaction with unconventional oil production growth (in America) – after all, this would act against the rollercoaster of panic buying and panic selling in futures contracts that has hit the oil markets in recent months.

So Rex Tillerson is pushed awkwardly to centre stage. Global production of oil ? No problem ! It’s at record highs (if we massage the data), and likely to get even better. At least in America. For a while. But hey, there’s no chance of oil production declining – it’s important to stress that. If everyone can be convinced to believe that there’s a veritable river of oil, for the forseeable future, then oil prices will stay reasonable, and we can all carry on as we are. Nothing will crash or burn. Except the climate.

Rex Tillerson’s interview on global (American) oil production may have been used to achieve several propaganda aims – but the key one, it seems to me, was to talk down the price of oil. Of course, this will have a knock-on effect on how much unconventional oil is affordable and accessible, and maybe precipitate a real peak in oil production – just the thing he’s denying. But keeping the price of oil within a reasonable operating range is more important than Rex Tillerson’s impact on the American Presidential elections, or even Rex Tillerson’s legacy.

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

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

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

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

Peace ‘n love ‘n’ home made hummus,



“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

Read my ‘essay’ weblog, “Ecolonomics”, at:

Paul Mobbs, Mobbs’ Environmental Investigations
email –
website –

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


[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.


[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…”