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Climate Change Initiative Newsletter
March 2002 (21)
Table of Contents
Climate Change Initiative
1. Forestry officials prepare policy recommendations
Upcoming Events
April 23-25, 2002 – Kharkiv
Training seminar “Carbon Sequestration in Agriculture and Forestry”
Organizers: State Committee on Forestry, CCI
International conference “Investment and Climate Change: Opportunities for Ukraine”
Ministry of Ecology and Natural Resources of Ukraine and the Climate Change Initiative are happy to announce the international investment conference that will take place in Kyiv on July 10-11, 2002. The Conference main target is attracting investments to climate change mitigation activities in Ukraine. For more information on the event please see the CCI special announcement or the web site.
Ukraine Climate Change News
2. National Sustainability Report Discussion
U.s. Climate change activity
3. $333 Million for Cleaner Energy
International climate change news
5. Germany Close to Final Kyoto Ratification
6. Finland Ranks First in Environmental Care
7. Prototype Carbon Fund Will Possess More Resources
8. Sweden Goes Strict with GHG Emissions
9. What Is on the Market of Carbon in 2002
11. Gorbachev Attracts World’s Attention to Climate Change
12. Kyoto Said to Be Good for Russia
13. Stances of the UK Biodiesel Development
14. Australia Shares US View on Kyoto
15. British Emission Trading Supported by Cash from the Government
18. A Cleaner Fuel Truck: Made in Japan
Climate Change Initiative
1. Forestry Officials Prepare Policy Recommendations
In February the State Committee on Forestry submitted its policy development proposals to the Interministerial Commission on Climate Change (IMCC). The proposals are à result of the early February working meeting between government officials, climate change experts and representatives of Ngos. The proposals should become à basis for the Government of Ukraine for defining its policy on the sequestration issues for the UNFCCC negotiation process.
The document builds upon the idea that the Kyoto mechanisms will benefit the Ukrainian forestry sector. The Joint Implementation mechanism is said to be “The most promising” because of gaps in the development of the Ukrainian forestry sector. The authors argue that Ukrainian forestry specialists have sufficient knowledge and necessary skills to prepare and to implement JI projects, including project monitoring and verification. The proposals emphasize that projects are beneficial to Ukraine and bring additional positive environmental and economic effects.
The proposals conclude that the UNFCCC Cop-7 decisions, on land-use and forestry specifically, have positive implications for Ukraine. In order to keep pace with the international climate change process it is necessary 1) to strengthen Ukraine’s forestry institutional capacity, including appointment of à designated climate change focal point, R&D support and provide for participation of national experts in international training events and professional development seminars, 2) to maintain à forestry project database launched by CCI; 3) to implement several pilot forestry projects in different climatic zones of Ukraine, and 4) to ensure the regularity and reliability of forestry inventory for Ukraine.
2. National Sustainability Report Discussion
On March 22, the roundtable discussion of the National Sustainability Report devoted to the fulfillment of “Agenda-21” was held. The presented edition of the National Sustainability Report was prepared by the Environmental and Resource Research Institute of the National Security and Defense Council (NSDC) of Ukraine in cooperation with the Ministry of Ecology and Natural Resources of Ukraine. In his opening remarks Dr. Vasyl Shevchuk of the NSDC praised the new edition of the report as à consolidated and comprehensive document. Dr. Shevchuk noted that, though not ideal, the report is à good basis for further work.
Following the authors’ presentation experts and NGO representatives expressed their opinion regarding specific sections of the report and discussed the document on the whole. The positive review remarks included comments on the report coherence and integration of various aspects of the sustainability concept into one document. On the other hand, the audience noted the lack of quantitative data as the major drawback of the report. NGO representatives also mentioned that the document presents the sustainability rather theoretically while the actual situation in Ukraine differs. The meeting participants agreed to collect all comments and to forward them to the report authors no later than in à week.
There was also à short discussion on the mass media involvement in raising public awareness about sustainability. Participants agreed that promoting sustainability is not on the agenda of the media issues due to the lack of knowledge, interest, and sensational aspects of the sustainability topic. Ukrainian mass media is not an exception since local journalists are little familiar with the sustainability concept. There are people, however, who follow the sustainable development principles without knowing that; and that is encouraging.
3. $333 Million for Cleaner Energy
WASHINGTON - The Bush administration earmarked about $333 million in federal funds to encourage utilities to build more nuclear and clean-coal burning plants to meet rising U.s. electricity demand.
The Department of Energy (DOE) released $330 million of $2 billion in funding budgeted over the next 10 years to encourage utilities to develop new clean coal technology. "Todayús solicitation tells industry we are ready to help share the costs and risk of technologies that have emerged in the last 10 years", Energy Secretary Spencer Abraham said in à statement.
Coal and nuclear power are both key components of President George W. Bushús national energy policy, which aims to meet rising U.s. demand while reducing dependence on foreign sources like Iraq. Separately, DOE earmarked $3 million in the 2002 fiscal year to streamline applications to build new nuclear power plants. Nuclear plants, which provide about 20 percent of the nationús electricity, generate no harmful air emissions like carbon dioxide or sulfur dioxide.
At the same time, new devices could strip noxious substances from smoke spewed by coal-burning plants and open the door for new construction of à source that now accounts for about half of U.s. supply. The administration hopes to encourage utilities to build plants that are cleaner than their present-day counterparts.
The DOE said the coal industry has until August 1, 2002, to design new technology that reduces air emissions and greenhouse gases emitted from older power plants that use high sulfur or "dirty" forms of coal. "Without our support, those technologies would likely remain in the laboratory", Abraham said.
Bush last month unveiled à plan to reduce carbon emissions from gasoline, coal and other fossil fuels through improved technology while keeping energy costs affordable. Separately, the DOE unveiled à new plan to match individual utility investments up to $48.5 million over the next two years to license new sites for nuclear power plants with the Nuclear Regulatory Commission. "This is à critical step in paving the way for deploying more nuclear power in the United States", Abraham said.
The DOE set à deadline of April 15 for industry proposals for U.s. utilities to begin à 30-month early site permitting process. Two unnamed "Major nuclear utilities" are considering sites in Idaho, South Carolina and Ohio to build new nuclear plants, the DOE said.
(Reuters, March 6)
CHICAGO - After more than 10 years of development, an alternative diesel fuel made from soybeans appears poised to be the fuel of choice this spring among U.s. Midwest farmers.
Sources estimate use of biodiesel - à non-petroleum fuel made from chemical reactions of alcohol with vegetable oils, fats or greases - will rise by more than 100 percent as growers work to shake their dependence on foreign oil supplies and boost dragging U.s. soy prices.
"Biodiesel has gotten à life of its own lately", said Brad Glenn, an Illinois farmer and president of the Illinois Soybean Association. "Weúve seen the growth without (tax) incentives, and with incentives, itús just going to continue to grow."
Use of biodiesel across the United States grew from 500,000 gallons in 1999 to 20 million gallons last year, despite à scarcity in fueling sites, he noted. The renewable fuel, which is nontoxic, biodegradable and free of sulfur, is most commonly used in blends of 2 percent or 20 percent (B20) with petroleum diesel.
Biodiesel offers similar fuel economy, horsepower and torque to petroleum diesel, said Jenna Higgins, communications director for the National Biodiesel Board. "Biodiesel and ethanol are not competitors", Higgins said, adding that U.s.-produced ethanol - which is mainly derived from corn - is for gasoline engines, while biodiesel is for diesel engines. Farm machinery is mostly diesel-powered. "Itús as easy to use as petroleum, but itús been the delivery that has been the problem so far", Glenn said. Biodiesel proponents claim the supply problems have been solved, after users and suppliers united in meetings across the Midwest this winter.
The projected increase in soybean-derived biodiesel use arrives at à crucial time for U.s. farmers, who last year harvested à record soybean crop of 2.89 billion bushels. "We have 2.8 billion pounds of excess soyoil in the United States", said Robert Metz, à South Dakota soybean farmer who is also president of the National Biodiesel Board. "If we were to go to à 2 percent biodiesel in the U.s., weúd use up the excess vegetable oil and it would be much more balanced." And as economies of scale kick in, farmers may not even need to pay extra for biodiesel compared with petroleum, Metz said.
While biodiesel proponents are hoping for à surge this spring in use among farmers, they are working toward national acceptance of the soy fuel. Already, many school bus and government diesel fleets fuel up on mostly B20 blends. Legislation has been introduced in most Midwest states to encourage the use, and on Feb. 14, the U.s. Senate Finance Committee said it would include à biodiesel tax provision in the federal energy tax bill that would provide à 1-cent per gallon reduction in the diesel excise tax for every percentage level of biodiesel included in blends, up to 20 percent.
And last year, the Environmental Protection Agency mandated that by 2006 diesel fuel sulfur levels drop to 15 parts per million from 500 ppm. Biodiesel, which is low in sulfur, is currently the only fuel that will be able to meet this standard, Metz said.
(by Sue Schwendener, REUTERS, March 7)
International Climate Change NEWS
5. Germany Close to Final Kyoto Ratification
Germany has become the first major industrialized country to begin formally ratifying the Kyoto Protocol.
The lower house of parliament voted unanimously to make the treaty part of German law. The country will commit itself to reduce its emissions of carbon dioxide by à fifth by the year 2012. The upper chamber of the parliament is due to make à final decision on ratification in April.
European Union environment ministers have pledged to ratify the treaty by August, in the lead-up to the World Summit on Environment and Development in Johannesburg. The EU is leading à campaign to persuade other industrialized countries to join it in ratifying the protocol.
(BBC World Service, March 22)
6. Finland Ranks First in Environmental Care
Finland takes care of its environment better than any other country in the world. This is according to the latest Environmental Sustainability Index (ESI 2002) commissioned by the World Economic Forum that covers the state of the environment in 142 countries.
Finlandús place at the top of the ESI 2002 ranking is due particularly to its strength in three key areas of environmental protection, namely success in minimizing air and water pollution, high institutional capacity to handle environmental problems and comparatively low levels of greenhouse gas emissions.
The practical research behind the index was conducted by the Universities of Yale and Columbia in the United States. Daniel C. Esty, Director of the Yale Center for Environmental Law and Policy, and project director of the ESI, commented, "The ESI permits systematic cross-national environmental comparisons. Environmental decision-making has long been plagued by uncertainties and à lack of critical information...The ESI assists the move toward à more analytically rigorous and data-driven approach to environmental decision-making." Finlandús success in the ESI 2002 follows close on the heels of an impressively long list of Finnish economic, technological and social achievements over the past few years. Finlandús Prime Minister, Paavo Lipponen, speaking on February 1 at the World Economic Forumús annual symposium in New York, reverted to last yearús WEF Global Competitiveness Report in which Finland was ranked first. He told the AFP news agency that Finlandús transformation over the past ten years from à resource-based to à knowledge-based economy was the result of education and investment in research and development. He went on to say that in addition to education there needed to be "an openness, à real exchange of information in society, particularly in research and technology, so we can really utilize our human resources." Professor Jeffrey Sachs of Harvard University, who helped compile last yearús WEF competitiveness index, observed that Finlandús leading position proved that high taxation is not inevitably an obstacle to competitiveness, as is often claimed. Prime Minister Lipponen agreed, observing that taxation should promote economic growth and employment.
(by Joe Brady, Virtual Finland)
7. Prototype Carbon Fund Will Possess More Resources
WASHINGTON —the World Bankús Prototype Carbon Fund (PCF) is expanding its carbon emissions reduction reach in developing countries by increasing its subscribed capital from $145 million to $180 million.
Launched in January 2000 to transfer finance and technology to developing countries to help them reduce greenhouse gas emissions, the PCF has elicited more financial resources and shareholder interest than originally anticipated. This decision to expand Pcfús capital to $180 million, agreed to in à recent Participants Meeting, will allow the current PCF shareholders of 17 companies and six governments to increase their headroom, allowing more projects to be done in the developing countries and transition economies.
"This is well in excess of the initial $100 million funding target and original $150 million legal cap placed on the fund by the Bankús Executive Board", according to Ken Newcombe, Prototype Carbon Fund Manager. "This outcome is à vote of confidence by the shareholders in the PCF as à product and the Bank as its host. It reinforces our view that learning-by-doing plays à vital role in early carbon market development and provides an impetus for us to expand and diversify this role in the future." The Participants also agreed to à fourth year of investment in PCF operations, beyond the three years originally planned. The PCF expects to place all its funds by mid-2004, and is scheduled to terminate in 2012.
The Prototype Carbon Fund, established in the World Bank with contributions from governments and companies, is à first attempt to experiment with the creation of à market in emissions reductions under the Kyoto Protocolús "flexibility" provisions. It will invest in cleaner technologies in developing countries and transition economies, thus reducing their greenhouse gas emissions. These emissions reductions will be independently verified and certified, and then transferred to the Fundús contributors in the form of emissions reduction certificates rather than cash. The primary focus is on renewable energy technologies — such as wind, small-hydro, and biomass energy technology — that would not be profitable without financial support from the PCF.
(PCF, February 27)
8. Sweden Goes Strict with GHG Emissions
Early March the Swedish parliament approved à government plan to apply stricter controls on greenhouse emissions than required by the Kyoto Protocol.
The plan aims to cut Sweden’s emissions by 4 percent of 1990 levels by 2012 through improved energy efficiency, increased use of alternative fuels and à public information campaign. The plan, presented last fall by the ruling Social Democratic Party, passed 185-74 in the 349-seat Riksdag with 52 abstentions and 38 lawmakers absent. The center-right Moderate Party opposed the plan saying it wasn’t cost-effective, while the Green Party abstained from voting, calling for an even sharper cut in emissions.
Under the 1997 Kyoto international agreement, Sweden, which has some of the lowest emission levels in Europe, could increase emissions by 4 percent. Sweden has kept emission levels low by relying more on nuclear and hydroelectric power than the burning of fossil fuels. The Scandinavian nation of 9 million people also was the first country to introduce à tax on carbon dioxide emissions.
Sweden and the 14 other members of the European Union agreed to ratify the Kyoto treaty by June 1. The EU has pledged to cut its combined emission levels by 8 percent of 1990 levels by 2012 through legislation to promote cleaner energy and shift traffic to less polluting transportation like rail or water.
(The Carbontrader, March 7)
9. What Is on the Market of Carbon in 2002
Despite the great uncertainties in predictions regarding the carbon market, it seems à safe conclusion that the traded volume in 2002 is likely to be about four times higher than in 2001. In fact, transacted volumes this year might match the total traded volume for the whole period since the first trades were conducted in 1996. Important drivers in this respect are transactions initiated or sponsored by governments, such as the UK auction and the Dutch Erupt and Cerupt programs.
Since 1996 North America has been the biggest emissions trading market. This year, however, most of the action is expected to take place in the UK, where an emissions trading scheme is launched in March. Increased transactions may be sparked elsewhere by the anticipation of evolving markets as à result of implementation of the Kyoto Protocol. Thus, the market will be sensitive to the process of ratifying the Protocol. The North American market, in particular, is vulnerable.
2002 is likely to be à year of learning for industry, as the number of actors will increase, and market service providers will spend their time positioning.
UK Auction
In March the UK Government launches an auction to buy emissions reductions from
the private sector in exchange of incentive money of up to 215 million pounds.
The total number of emission reductions needed to meet the reduction target
for 2002 is rather modest, and most companies will probably be able to meet
their targets through internal abatement measures. Most of the demand for allowances
is therefore likely to be driven by speculative trading, and à desire to hedge
exposure rather than companies’ need to meet their targets. The traded volume
has been rather modest in the UK so far, but will probably increase significantly
this year.
Erupt and Cerupt
New tenders are planned in 2002 both under the Erupt (JI projects) and the newly
created Cerupt program (CDM projects), initiated by the Dutch government. Erupt
aims at doubling their traded volume in 2002, but states that it could be even
higher if attractive projects are offered. Point Carbon estimates that volumes
traded through Erupt will be three or four times higher than in 2001. The trades
are to be executed in October and November.
Prototype Carbon Fund (PCF)
The PCF signed its first so-called Emissions Reduction Purchase Agreements (ERPA)
contracts - with Latvia in 2000 and Brazil in 2001. PCF aims to sign another
25-30 Erpas by June 2003. However, the bulk of these contracts are likely to
be signed in 2003. We expect three to five contracts to be signed this year.
The reductions that will take place under the single contracts that are currently
in the pipeline will be considerably larger than under the contracts signed
in previous years.
Denmark
Both volumes and prices in Denmark depend on the conditions in the Nordic electricity
system, thus it is highly uncertain. Point Carbon estimates that the traded
volume is likely to be about the same as last year.
North America
Owing to President Bush’s decision to abandon the Kyoto Protocol and ongoing
debates on climate change policies and measures, the North American market segments
are particularly sensitive to political uncertainty. If Canada were to abandon
the Kyoto Protocol, or the likelihood for CO2-caps for the US power
sector were to increase this would likely have large implications for traded
volumes.
In the majority of transactions since 1996, Canadian contractors have been involved. The volumes traded by Canadian companies will be high in 2002 as well, although depending heavily on the outcome of the national Kyoto debate. There could also be considerable activity in the US, but the level of action will depend largely on the outcome of current discussions over US climate policies. In case several of the power companies currently planning to expand production capacities perceive that there is à considerable risk for future caps, volumes could be substantial
Other transactions
During 2001 there has been increasing interest in carbon trading from German,
Australian and Japanese companies, including à few trades. Interest in using
the Kyoto mechanisms is also increasing among Italian and Danish companies,
particularly for CDM projects.
However, most contracts outside North America have so far been relatively small,
e.g. under 20,000 tonnes for single transactions. Although it seems likely that
private actors outside North America will increase their trading activities,
it might still take some time before they become involved in larger transactions.
(Pointcarbon, March 7)
London/copenhagen - Wind power now accounts for the energy demands of over 10 million homes around the world, and is the fastest growing energy source, à joint report by three industry associations said.
Wind turbine installations worldwide soared by 45 percent or 6,500 megawatt (MW) in 2001, bringing global total windpower capacity to 24,000 MW, the European, American and Indian wind energy associations said in à statement.
Europe, by far the most active wind region, increased its capacity by more than 35 percent or 4,500 MW in 2001 while the United States installed nearly 1,700 MW and total capacity increased by more than 60 percent. India, the third-largest market, installed around 240 megawatt and exceeded 1,500 MW of total installed capacity.
Analysts and market players say activity in the U.s. will be lower this year as an extension of the U.s. production tax credit, which expired by the end of 2001, is still pending. Therefore global wind power installations might decline slightly in 2002, they say. The tax is an important factor for financing new wind power projects in the U.s. as wind energy is not fully competitive with more conventional energy sources such as gas and coal. "Over the past two decades the cost of generating wind power has dropped more than 80 percent", said the European Wind Energy Organisation President Arthouros Zervos.
Though still well under one percent of worldwide demand, growing concerns about the impact on climate change of traditional energy production methods and government action to offer financial subsidies and push through planning permission have raised the industryús profile.
Wind already accounts for 18 percent of demand in Denmark and 3.5 percent in Germany, and the pro-wind lobby in Britain says the seas around the island nation could in theory supply all its power needs several times over. Turbine manufacture is already à multi-million dollar industry and many established power and energy groups are investing significant amounts of money.
But critics have said the high cost of installation and local planning resistance to noise will ensure that the sector will always be à minority power supplier. The worldús No. 4 wind turbine maker Danish NEG Micon said in its 2001 report that it increased installation of turbines worldwide by 46 percent to 875 megawatt last year, and expected à 20 percent rise this year despite à flat global market.
(REUTERS, March 8)
11. Gorbachev Attracts World’s Attention to Climate Change
Global climate change can affect global peace and stability, former Soviet
leader Mikhail Gorbachev said at an environmental conference in Marina del Rey.
"If droughts continue, if climate changes and food sources are undermined ...
we will see social tensions getting worse", he said through an interpreter.
Gorbachev, president and founder of Green Cross International, was the closing
speaker at "Confronting Climate Change: Averting à Global Environmental Crisis",
à one-day meeting presented by Global Green USA, Green Cross' U.s. affiliate.
Green Cross, founded after the 1992 Earth Summit, has affiliates in 26 nations.
Nowhere are climate problems more evident than in the Middle East, Gorbachev
said. "Unless something is done to increase the fresh water supply in [Arab]
countries, we could have à crisis of enormous proportions in that region. That
is another reason ... to put an end to what is happening in the Middle East
right now", he said.
Gorbachev said the United States should do its part to reduce emissions and
develop sustainable water sources. Global Green USA leaders agreed that the
United States lags behind other First World nations in addressing climate change.
(The Carbon Trader)
12. Kyoto Said to Be Good for Russia
Moscow – Both Russia’s economy and the health of its people could benefit if the Russian government supports the Kyoto climate treaty, said WWF the conservation organization.
As Russian government discusses ratification of the Kyoto treaty WWF states Russian industry could benefit significantly from à provision in Kyoto known as “joint implementation.” Under this, other industrialized countries would make new investments in emission reduction projects in Russia. Russia would gain cleaner technology while the financing side would count the pollution saved against its own Kyoto targets. As well as reducing global warming pollution, this would cut other harmful air pollutants that cause health problems and contribute to the low life expectancy in Russia. With Kyoto in force, the Russian economy is also likely to benefit from an expected increase in demand from the European Union for Russia’s low-pollution natural gas.
“WWF wants à clear statement of support for Kyoto from the Russian government", said Alexey Kokorin, WWF Russia’s Climate Expert. “Now that the EU has put its weight behind Kyoto, there is no reason for Russia to hesitate.”
The main nations supporting Kyoto are striving to have the treaty become law before their political leaders gather for August’s World Summit on Sustainable Development, in order to avoid being harshly judged for having wasted à decade in tackling the world’s greatest environmental problem. Russian Federation President, Vladimir Putin, has already announced his intention to participate in the Summit. “Mr Putin’s credibility depends on Russia joining other responsible nations in ratifying Kyoto", said Alexey Kokorin.
(WWF, March 12)
13. Stances of th UK Biodiesel Development
LONDON - Manchester window cleaner Martin Steele saw something eight years ago that changed his life. Scrubbing the panes of high-rise apartments, he noticed cans of used frying oil piled in à restaurant yard. The sight left Steele wondering if anything useful could be done with grease destined for landfills.
It was his first step into the world of biodiesel - fuel produced from vegetable and animal oils or recycled grease. Today, 42-year-old Steele is one of Britainús growing brigade of biodiesel fans. His car runs on fuel brewed in his garden from oil he obtains from local kebab and fish-and-chip shops. "The beauty is that organic-origin oil has as much specific energy as oil of mineral origin and there is enough renewable energy for our needs", said Steele, who whips up 250-litre (66-gallon) batches of diesel with an apparatus he perfected over the years.
To make biodiesel, fats and oils are mixed with alcohol in à chemical reaction that produces compounds called fatty acid methyl esters.
Advocates say biodiesel is the solution to fuel shortages, pollution, global warming and farming problems. They say the sector is poised to grow into à multi-billion dollar industry over the next five years. Biodiesel in Europe is à $500 million industry today and consultancy Frost and Sullivan predicts it will grow to $2.4 billion with annual sales of 4.5 million tonnes by 2007.
In Cheshire scientist Stephen Whittaker is gearing up to launch Britainús first large biodiesel plant with à capacity of 250,000 liters à week. "I donút see biodiesel entirely replacing petrodiesel, but I do predict all UK and European diesel ultimately containing à proportion of biodiesel", Whittaker said, adding that most biodiesel blends did not require vehicle engine modifications.
But despite its benefits and some headway in Germany and France, biodiesel still accounts for only à tiny percentage of European diesel consumption. Britain, with almost no commercial biodiesel production, lags the rest of Europe.
Biodiesel, according to the British Association of Biofuels and Oils (BABFO), is the solution to many of the worldús ills and could give Britain up to 10 percent of its motor fuel needs. The organization says substituting à tonne of biodiesel for fossil diesel saves three tonnes of carbon dioxide from entering the atmosphere, reducing greenhouse gas emissions by 55 percent. It may also help clean up landfills as more corporations get into the act. Supermarket chain ASDA is set to transform the 138,000 liters of chicken waste and cooking fat from its rotisseries into diesel for its delivery lorries. "The UK produces 50-90 million liters of waste cooking oil à year and it seems like an awful waste of resource to just send it away to landfills or pour it down the sink", Asdaús Environment Manager Ian Bowles told Reuters.
The European Commission in 2001 directed that biodiesel make up 3.5 percent of the diesel fuel transport market by 2007. Analysts say lack of tax incentives has hobbled the British biodiesel industry. In Germany where biodiesel enjoys zero duty rates, 600,000 tonnes of the fuel are produced every year, while France produces 275,000 tonnes.
Biodiesel may not be the perfect solution to the worldús energy problems. Its opponents say the fuel is prone to freeze and vehicles incur more starting problems in cold weather. They say it could make for petrol price rises if blending is made mandatory and, unlike mineral diesel, biodiesel must be used within one year of manufacture. The biggest hurdle is that biodiesel cannot compete at all yet without state fiscal support.
But analysts agree it is à matter of time before biodiesel-spiked fuel is sold at petrol stations everywhere as political will grows and more fuel is commercially produced from oilseeds. “There are no technological barriers to biodiesel use. It is à fuel for today and the near future, before the time that technology such as fuel cells becomes viable", Mcmanus said.
(by Sujata Rao, REUTERS, March 4)
14. Australia Shares US View on Kyoto
Canberra - The Federal Government formalized à partnership with the United States on climate change in à move green groups labeled as à rejection of the Kyoto agreement on global warming.
Environment Minister David Kemp signed à climate action partnership with the US after talks in Washington on February 28. The partnership will concentrate on an exchange of scientific information and on seeking cooperation from developing countries to deal with the problem of climate change, Dr Kemp said.
Businesses, scientists and governments in both countries will work together to tackle greenhouse gas emissions under the new agreement. "Australia has committed itself to work to achieving its Kyoto target, but we need to recognize that if weúre going to get global action we need to see action obviously on the part of the United States and action on the part of developing countries", Dr Kemp said.
Kemp said that while Australia had not abandoned the Kyoto protocol, it had à lot in common with Washington in wanting to find practical approaches to climate change which will not harm developed nations' economies.
Green groups slammed the plan as à further impediment to an international approach on climate change and described it as à rejection of the Kyoto protocol. The spokeswoman for Climate Action Network Australia, Anna Reynolds, said the agreement would only slow international action on the issue, while Greens senator Bob Brown said the government had chosen President Bush over future generations of Australians by signing the agreement – à blatant concession to industry.
"Australiaús greenhouse gas emissions are rising and the government doesnút want to take serious action to deal with that and is just trying to hide behind Bushús coat tails", Greenpeace spokeswoman Frances Macguire said.
(by Kerry Taylor, the Age, March 1)
15. British Emission Trading Supported by Cash from the Government
Britain said it had an indicative budget of 150-200 million pounds ($213.2-$284.2 million) over five years for its soon-to-be launched pollution trading scheme. The money will be given as an incentive for businesses that pledge to cut the most pollution, with à cap at 20 percent of the yearly fund for any one company.
The budget had been previously estimated at 215 million pounds ($305.5 million). The 46 companies that have signed up, including blue-chips such as Barclays, British Airways and BP, will bid for the government money via à competitive auction. The definitive budget will be announced afterwards.
Under the terms of the voluntary scheme, participants will agree to cut greenhouse gas emissions either in-house or by buying and selling carbon allowances. Companies with the lowest cost of reducing emissions will be able to sell surplus pollution permits to those with the highest cost of reducing emissions. Trading is due to start on April 2.
The scheme is designed to significantly cut the cost for British firms of complying with the Kyoto Protocol, with the government target to cut emissions by 23 percent on 1990 levels by 2010.
(The Carbon Trader, March 7)
The Great White North appears to be getting warmer all the time, with Canadaús two largest cities, Montreal and Toronto, experiencing their warmest winters on record, Canadaús environment minister said.
The "Unusual weather experienced so far this winter" could be due to global warming, said Minister David Anderson, although "in many respects, these conditions and associated influences are consistent with what scientists predict will happen more frequently as the world becomes warmer as à result of climate change."
Both Montreal and Toronto, typically beset with icy winds and reams of heavy, wet snow during the official winter months of December, January and February, experienced average temperatures 4.8° C above normal this winter.
But across Canada, unseasonably warm temperatures prevailed throughout the winter for the 19th consecutive season, beginning in 1997, in which average temperatures were above normal. Torontoús winter was the mildest since record-keeping began in 1840. The average winter temperature of 1.3° C is 4.7° C above normal. Montreal saw its mildest winter since 1941, when the city began keeping weather statistics. The thermometer never reached minus 20° C this winter, never before seen in Montreal.
Most of Canada was also drier than normal as of March 1. The agricultural provinces of Alberta, Saskatchewan and Manitoba, hit with less than half the normal snowfall, could have à hard spring as crops depend on runoff from the thaw.
(The Carbon Trader, March 7)
WINNIPEG - Global warming is becoming an increasing threat to forests in much of the world, paving the way for fires, droughts and pest infestations, officials told an environmental conference.
Ola Ullsten, former Swedish prime minister and co-chairman of the World Commission on Forests and Sustainable Development said that the latest evidence indicates that over half the worldús boreal forest could disappear due to the effect of climate change as conditions shift.
"Itús à very severe problem", Ullsten told Reuters ahead of à conference in Winnipeg attended by timber industry representatives and environmentalists. "If you want to illustrate the environmental dilemma the world is in, I think what has happened to the boreal forest in Manitoba, or you can probably take some other provinces as well, is à very good or tragic example of what might happen if actions arenút taken."
Boreal, or northern, forests are à belt of mostly coniferous trees running through much of Canada, the United States, Russia, Scandinavia and parts of Mongolia and China. They make up about one-third of the Earthús forests and form the basis for the global timber industry. Trees found there, including aspen, spruce, fir and pine, are uniquely adapted to cold northern climates, and experts say they are far more sensitive to temperature fluctuations than temperate or tropical species.
Ullsten said that the main way to combat the threat is to reduce the burning of fossil fuels, and focus on alternative energy sources. He said many scientists believe that à winter temperature rise of as little as three degrees Celsius (five degrees Fahrenheit) over the next half century could destroy half the worldús boreal forests.
A United Nations panel on climate change has predicted that the most rapid and sweeping changes to the boreal belt will be from more climate-driven natural disturbances, notably increased forest fires and pest outbreaks, as trees become more vulnerable and conditions more conducive to certain beetles and insects.
(Kanina Holmes, REUTERS, March 7)
18. A Cleaner Fuel Truck: Made in Japan
TOKYO - Japanese steelmaker NKK Corp said it would begin road testing à truck that runs on the new generation fuel dimethylether (DME), à marker in the road towards widespread use of eco-friendly fuels.
DME, produced from natural gases and coal, has little impact on the environment as it does not produce harmful sulphur oxides or particulate matter during combustion, unlike regular fuels. NKK said it had adapted à two-tonne truck to use the fuel with only minor adjustments to the engine and the addition of à fuel-injection adapter.
NKK is leading à team of eight companies - mostly Japanese except for French oil firm Totalfinaelf - in developing technology for low-cost mass production of DME. The group hopes to start supplying DME by the business year beginning in April 2006.
NKK has estimated that the potential market for DME in Asia alone as à replacement for LPG and as à generator fuel is 100 million tons à year by 2010.
(REUTERS, February 28)