UK Emissions Data Shows Impact of Recession

 photo : DECC

The UK Department of Energy and Climate Change has released provisional 2009 figures for UK greenhouse gas emissions.

At a first glance, the figures appear to tell a positive story, with the UK set to meet its pledge to cut CO2 emissions by 20% from 1990 levels in 2010. However on closer inspection, it can be seen that emissions have been more or less steady since 1995 and the big drop occurred in 2009 as a result of the global recession and a significant drop in manufacturing output. It is likely, therefore, that similar reductions have occurred throughout Europe and North America.

From a social and economic perspective, a reduction in output is counterproductive. If manufacturing capacity is lost in Europe and North America, it is unlikely to be replaced at the same location.

It is absolutely right to focus on reducing emissions but innovation and good engineering practice is the way to achieve this. The 2009 figures create a positive illusion but the reality is that we have a long way to go to achieve sustainable emissions reductions.

Austraila Delays Emissions Trading Scheme

Australia has postponed the implementation of its proposed emissions trading scheme until 2012 at the earliest, according to news reports.

In justifying the postponment, Prime Minister Kevin Rudd said that by 2012, when the current Kyoto deal expires, governments around the world would need to make clear their new carbon reduction commitments.

Kevin Rudd has been under significant pressure from within Australia and in particular from Tony Abbott, the leader of the opposition Liberal Party.

Australia's move follows on from the uncertainties over the Cap and Trade bill in the US, which has slipped down the political agenda in recent months. These moves leave Europe increasingly isolated on the issue and has led to some member states questioning the wisdom of unilateral action on climate change. Other member states have suggested the imposition of carbon taxes at Europe's borders, to protect the competitiveness of Europe's industries.

This blog continues to argue that all manufacturing industries need a strong sustainability agenda, with increased use of renewables and a strong focus on new technologies to reduce energy consumption and waste. Government support should be for the development and implementation of such technologies, rather than trying to implement regional schemes which will do little to drive a global improvement in energy efficiency but which will lead to relocation of manufacturing plants and jobs.

As for carbon taxes, they are highly complex to implement, given the range of products to which they will need to be applied. They are virtually impossible to link back to energy efficiency and will be ultimately passed on to the consumer, thereby driving inflation.

Climate Change Debate Continues

At the forthcoming carbon sequestration conference in London, US Energy Secretary Steven Chu will be speaking about carbon capture and storage (CCS). Mr Chu has has talked of 'overwhelming scientific evidence' that carbon emissions from fossil fuels are causing climate changes.

Although most national governments take the same line, sceptics point to the fact that global temperatures have fallen since 1998, which was the warmest year on record.

In Paul Hudson's fascinating BBC blog, the various arguments are spelled out. There are many points of view regarding the causes of global warming (natural vs man-made) and the validity of the various studies.

Very interesting and very pertinent as we approach the Copenhagen summit and the introduction of the various emissions trading bills around the world. To quote Paul Hudson ' The debate about what's causing global warming is far from over. Some would say it's hotting up.'

Cap and Trade Debate Divides US Opinion

photo : greensolutionsmag

Whilst the Emissions Trading System debate rages in Europe, the proposed US 'Cap and Trade' legislation is dividing opinion across the Atlantic.

The legislation has the same aims; to cut the nation's emissions of greenhouse gases and generate an upsurge in alternative and renewable fuel use.

Opponents argue that the higher price of carbon in the US and Europe will have the opposite effect, making hydrocarbon fuels even more attractive in less regulated parts of the world.

A number of Democrat Senators have written to President Obama, stating that they will not support the climate change bill unless the legislation contains a 'border adjustment provision' - an import tariff in most people's lexicons.

Protectionism definitely isn't the way to address climate change - it will create far more problems than it solves and will likely lead to retaliatory actions by other countries, with catastrophic effects.

As with the ETS, Cap and Trade is based on the very best intentions but in a global market place, global solutions are required, otherwise all that will result is a redistribution of manufacturing facilities to other locations, rather than a true reduction in emissions.

Carbon Trading Hitting Europe's Chemical Industry?

As the forthcoming Copenhagen Climate Summit in December gets
nearer, concerns are being voiced regarding the potential impact of the next phase of the EU Emissions Trading Scheme.

The UK Times newspaper has expressed serious concerns that the level of regulation in Europe is increasingly forcing companies to relocate in regions with less stringent regulation.

The European Commission has reacted to this threat of 'carbon leakage' by giving some exemptions to the compulsory purchase of carbon credits when the next phase of the Emissions Trading Scheme comes into force. The credits will be based on benchmarks for each industrial sub-sector. The principle is that the most efficient are rewarded, whilst the less efficient have an incentive to invest and improve.

The principle is laudable, but in a global marketplace, it can only work in practice if all regions of the world adopt the same standards. If not, the effect can only be to speed up the migration of refining and chemical industries to other regions outside of Europe.

Higher feedstock and labour costs are already making things difficult for European manufacturers. Whilst there is no doubt that a drive to reduce emissions is necessary, a solution has to be found to ensure that regulation affects all regions equally.