Timothy Gardner

Correspondent
Timothy's Feed
Feb 9, 2010

U.S. climate envoy says China tepid on climate deal

WASHINGTON (Reuters) – A senior U.S. official on Tuesday criticized China and other leading developing countries for trying to weaken the Copenhagen Accord to fight global warming and raised the prospect that a fuller international pact may be not be struck by year’s end.

A United Nations-sponsored climate change meeting in Copenhagen in December fell short of its intended goal of producing a binding treaty, but did take some nonbinding steps toward further controlling greenhouse gas emissions blamed for global warming.

“The statements that we have seen from China and the other BASIC countries do evince a desire to limit the impact of the accord,” said Todd Stern, President Barack Obama’s senior climate negotiator. BASIC countries are Brazil, South Africa, India and China.

Stern complained that BASIC countries were vague in how they would carry out pollution-reduction under the Copenhagen deal and warned that countries should not “cherry-pick” parts of the Copenhagen Accord that they like, while ignoring other provisions.

Feb 5, 2010

China wind, solar co’s seek growth in U.S., Europe

WASHINGTON (Reuters) – Chinese wind and solar companies told a renewable energy conference on Thursday they were looking abroad for burgeoning markets in renewable energy.

Chinese renewable energy companies have been among the fastest growing in the world as subsidies in their home market, Europe and the United States and generous loans from Beijing have spurred a boom in manufacturing of the clean power systems.

Still, as countries such as Germany pare back incentives and the United States struggles with high unemployment figures, some companies and politicians in those countries are calling for more restrictions to protect their domestic industries.

Typically, China has trailed European and U.S. companies in entering nascent industries, but that has changed with the growing solar sector, said Hunter Jiang, president of GCL Solar Energy. “Today we are the leader,” he said.

Feb 5, 2010

China wind, solar co’s seek growth in U.S., Europe

WASHINGTON, Feb 4 (Reuters) – Chinese wind and solar companies told a renewable energy conference on Thursday they were looking abroad for burgeoning markets in renewable energy.

Chinese renewable energy companies have been among the fastest growing in the world as subsidies in their home market, Europe and the United States and generous loans from Beijing have spurred a boom in manufacturing of the clean power systems.

Still, as countries such as Germany pare back incentives and the United States struggles with high unemployment figures, some companies and politicians in those countries are calling for more restrictions to protect their domestic industries.

Typically, China has trailed European and U.S. companies in entering nascent industries, but that has changed with the growing solar sector, said Hunter Jiang, president of GCL Solar Energy. “Today we are the leader,” he said.

Feb 3, 2010

Obama eyes biofuels, clean coal in new climate push

WASHINGTON (Reuters) – President Barack Obama laid out new steps on Wednesday to nudge the United States toward energy independence, backing measures to boost production of biofuels and bury pollution from coal.

Using the new initiatives to garner support for a climate and energy bill stalled in the U.S. Senate, Obama met with a handful of state governors to press his policies to fight global warming and wean the nation from imported fossil fuels.

“America can win the race to build a clean energy economy, but we’re going to have to overcome the weight of our own politics,” he said at the meeting, noting China was pushing aggressively to lead in “clean” energy technology.

“We have to focus not so much on those narrow areas where we disagree, but on the broad areas where we agree,” he said.

Feb 3, 2010

Obama eyes biofuels, clean coal in new climate push

WASHINGTON, Feb 3 (Reuters) – President Barack Obama laid out new steps on Wednesday to nudge the United States toward energy independence, backing measures to boost production of biofuels and bury pollution from coal. Using the new initiatives to garner support for a climate and energy bill stalled in the U.S. Senate, Obama met with a handful of state governors to press his policies to fight global warming and wean the nation from imported fossil fuels. "America can win the race to build a clean energy economy, but we’re going to have to overcome the weight of our own politics," he said at the meeting, noting China was pushing aggressively to lead in "clean" energy technology. "We have to focus not so much on those narrow areas where we disagree, but on the broad areas where we agree," he said. Agreement on a climate bill is still far from certain, and the legislation faces further obstacles after the election last month in Massachusetts that gave Republicans a Senate seat long held by Democrats, depriving the president’s party of 60 votes that could overcome procedural hurdles. Obama has acknowledged that a controversial "cap and trade" system could be separated from other parts of the bill, though he is adamant that a market-based mechanism be put in place to make high polluting fuels more expensive for industry than less-polluting, renewable energy sources. Biofuels represent one renewable energy source the administration wants to promote, and a new interagency report spelled out ways the country would achieve that going forward. "By 2022, we will more than double the amount of biofuels we produce to 36 billion gallons, which will decrease our dependence on foreign oil by hundreds of millions of barrels per year," Obama said. He also announced a new task force to forge a plan for rolling out affordable carbon capture and storage technology in 10 years, including having 10 commercial demonstration projects up and running by 2016. Carbon capture and storage is meant to capture the emissions from carbon-polluting coal plants and bury them underground rather than spewing them into the atmosphere but the technology is still being researched. EPA The Environmental Protection Agency said on Wednesday ethanol and other renewable fuels must account for 8.25 percent of gasoline sales in 2010 to meet Congress’ mandate that nearly 13 billion gallons of renewable fuels be produced this year. That is lower than last year’s 10.21 percent renewable fuel standard that the EPA announced in November 2008.. The United States is far away from its goal of producing 36 billion gallons (136 billion litres) of biofuels a year by 2022, currently producing 12 billion gallons annually, mostly from corn ethanol. The report offers solutions that would ease the way for ethanol to get from producers in the U.S. Midwest to consumers near the coasts. Such snags include filling stations that have been slow to adopt pumps to distribute a fuel blend that is mostly ethanol, called E85, and a lack of dedicated pipelines for biofuels. Loan guarantees for ethanol plants could be targeted more effectively to support new biofuels plants, the report said. The struggling biofuels industry is concerned the Obama administration will move too quickly away from ethanol to biofuels that derive from more difficult techniques using wood chips and other biomass. The president’s backing of ethanol, however, could shore up his support in farm states, where ethanol boosts demand for corn. Environmentalists and some scientists say production of U.S. biofuels from corn and other grains can drive out production of other crops, prompting farmers in other countries to burn down forests and clear land to grow those crops — creating new sources of CO2, the main greenhouse gas blamed for global warming. (Additional reporting by Tom Doggett; Editing by Cynthia Osterman)

Feb 2, 2010

How will upcoming U.S. rules affect biofuels?

WASHINGTON (Reuters) – U.S. environmental regulators are expected to issue new rules that could fine tune targets for alternative motor fuels like grain-based ethanol and advanced biofuels to be blended into the country’s petroleum mix.

The rules, known as the second Renewable Fuels Standard, or RFS2, may affect both ethanol made from corn and advanced fuels like cellulosic ethanol, which companies have begun to make from the tough bits of corn waste and non-food crops like switch grass and poplar trees.

The industry is wary of any new rules as stronger operating margins have begun to help companies like oil refiner and ethanol player Valero Energy Corp.

WHEN?

Feb 1, 2010

Obama budget drops revenue outlook for carbon trade

WASHINGTON, Feb 1 (Reuters) – The White House on Monday dropped prospects for revenue from a climate cap-and-trade system opposed by many lawmakers, but its proposed budget still called for a “market-based” policy to fight climate change.

Last year the administration forecast revenues of $646 billion for 2012-2019 from a program in which the output of greenhouse gas would be capped and polluters would be forced to buy, and could later trade, emissions permits.

“Unlike last year, we do not show an assumed amount of cap-and-trade revenue since the exact nature of the legislation remains in flux,” an administration official told Reuters.

As a bill to tackle climate change was stalled in the Senate amid opposition from lawmakers from coal-and oil-producing states, the omission of the revenues shows uncertainty about how much revenue can be generated.

Feb 1, 2010

Obama budget outlines CO2 market without revenues

WASHINGTON (Reuters) – The White House called in its budget on Monday for Congress to endorse a “comprehensive market-based policy” to fight climate change while dropping projected revenues from a cap-and-trade system many lawmakers oppose.

Last year the Obama administration forecast revenues of $646 billion in the years 2012-2019 from an emissions trading program that formed the crux of its proposal to fight global warming.

But the legislation that contains that proposal is now stalled in the U.S. Senate and cap-and-trade, which sets limits on greenhouse gas emissions and allows companies to trade permits to pollute, may be cut from a final bill if one is passed.

“The $646 billion revenue projection is no longer in the budget,” the administration official told Reuters.

Jan 28, 2010

U.S. senators try to raise climate bill from ashes

WASHINGTON, Jan 28 (Reuters) – U.S. Senators are examining ways to fashion a climate control bill to reduce carbon dioxide emissions, which might not include a cap-and-trade system, key senators said on Thursday. President Barack Obama called for a "comprehensive" bill during Wednesday’s State of the Union address. In his speech, Obama did not specifically mention the need for a market-based emissions cap. Some interpreted the omission as signaling that he would not actively pursue wide-ranging climate control legislation this year. "Comprehensive climate change (legislation) means pricing carbon and setting a target for reduction," Senator John Kerry, a Democrat and one of three lawmakers leading difficult talks to hammer out a compromise climate bill, told Reuters. Kerry strongly rejected the idea that progress had bogged down. "I just don’t agree with that interpretation at all," he said, adding that Senate negotiations were "making headway." Kerry said: "It’s open to how you price carbon. People need to relax and look at all the ways you might price carbon. We’re not pinned down to one approach." Kerry and Republican Senator Lindsey Graham are working with Senator Joe Lieberman, an independent, to include incentives for nuclear, offshore oil drilling and clean technology jobs. Graham said the nuclear and oil drilling initiatives would not advance in the Senate "without dealing with the (carbon) emission part." Meanwhile, Treasury Secretary Timothy Geithner said a tax credit aimed at encouraging investment in factories that make clean energy products would be expanded by $5 billion in Obama’s upcoming budget request to Congress. The House of Representatives last year tackled global warming when it passed a bill that relies on a cap-and-trade system under which companies could trade an ever-declining number of carbon pollution permits on a market. But the Senate’s push to pass a bill, which might jack up consumers’ energy costs, could be all the harder in this congressional election year as public support appeared to dip. A Pew Research Center for the People and the Press poll said 28 percent of those surveyed listed global warming as a top priority this year, down from 38 percent in 2007. A new poll by the Yale Project on Climate Change and George Mason University concluded that fewer people believe global warming is occurring. But it also said more people now fear global warming has the potential of harming their families and future generations. HYBRID SYSTEM Kerry said he plans to outline a comprehensive bill that could be considered this spring, although he did not want to be pinned down to a definite deadline. "We are writing and drafting; we’re pulling together the titles" of a bill. Graham told Reuters Obama’s speech opening the door for nuclear power and offshore oil drilling helped efforts for a bill that could include "a hybrid system" for reducing U.S. carbon emissions. Obama acknowledged in his speech that some people doubt the science of climate change but said it was important to move on clean energy such as wind and solar power to compete with countries like China and India in the low-carbon economy. Graham said that statement and an emphasis on nuclear power could gain support but it was "yet to be determined" if senators could come up with a bill that could pass. Kevin Book, an analyst at ClearView Energy Partners in Washington, said in a note that Obama "displayed a canny understanding of the political challenges confronting recession-weary, centrist fence-sitters (in Congress)." "Voters," he wrote, "may be much more likely to embrace a plan to best other nations in trade than a plan to save other nations from rising seas (even if it’s the same plan)."Some environmentalists were angered that Obama and his fellow Democrats in Congress were receptive to more oil drilling and nuclear power. "President Obama’s support for all these dirty energy sources was a big win for corporate polluters and their Washington lobbyists, but it was a kick in the gut to environmentalists across the country," said Friends of the Earth President Erich Pica. In recent days, according to Kerry and Graham, senators have huddled with representatives of energy-intensive industries that would be most affected by government mandating less use of dirty-burning coal and oil. Graham added that under existing climate control bills, "The potential spikes to consumers are too great in terms of how utilities would have to increase their costs." The bill has been delayed in the Senate by the healthcare debate, as well as opposition from most Republicans and many moderate Democrats. It faces an uphill battle as lawmakers from oil and coal producing states say it could raise energy prices. Graham said cap-and-dividend, which would mandate carbon emission reductions while prohibiting the trading of pollution permits, is under review along with other options. A carbon tax has no support in Congress, he said. (Editing by Alan Elsner and Chris Wilson)

Jan 28, 2010

Obama aims to win climate bill with green jobs, nuclear

WASHINGTON, Jan 28 (Reuters) – President Barack Obama, trying to save a stalled bill to fight climate change, said on Wednesday clean energy investment could power jobs growth and made no mention of creating a market in planet-warming emissions. The bill aims to cut carbon pollution by putting a price on the emissions from utilities, refineries and factories and creating a market for pollution permits. It also commits the United States to carbon reduction targets for the next 40 years. Opponents fear the cost burden of mandatory cuts would lead to job losses or jobs moving overseas. Unemployment is running at 10 percent. Obama, in his first State of the Union speech to Congress, instead focused on the bill’s potential to drive huge investment in solar panel making, wind farms and other green energy, saying this would boost jobs and exports to rivals such as China and India. "This year, I am eager to help advance the bipartisan effort in the Senate," Obama said in reaching out to opponents. "And yes, it means passing a comprehensive energy and climate bill with incentives that will finally make clean energy the profitable kind of energy in America." In a further sweetener to climate bill opponents, he promoted nuclear energy, offshore drilling and clean-coal power stations as other key investment areas. Obama needs bipartisan support to pass the climate bill in the Senate, where his Democrats just lost one of the 60 seats they needed to override objections. He did not say the bill had to include a cap-and-trade market for emissions blamed for warming the Earth. "It seems like the Democratic leadership is sticking with combined energy and climate change legislation for now. While he did not say cap-and-trade, he did say they are going to push for comprehensive climate policy," said Will Pearson, a global energy analyst at the Eurasia Group. Nor did he mention last month’s Copenhagen Accord aimed at global carbon emission reductions, even though he helped to broker that deal with China, India and other big emitters. WAITING TO ACT He also made no mention of emission reduction targets previously pledged before last month’s Copenhagen climate meeting. Obama has said the United States would cut emissions 17 percent from 2005 levels by 2020, but this is contingent on the climate bill passing. Many nations are waiting for Congress to pass the climate bill and for the government to toughen its 2020 target, saying both are key to efforts to seal a tougher U.N. climate deal. Senators John Kerry, a Democrat, Lindsey Graham, a Republican, and Joe Lieberman, an independent, are working on a compromise climate bill that would include more incentives for nuclear energy and offshore oil drilling. "The message from Obama seemed to be the ball continues to be in the court of the trio of senators to come up with a plan," said Whitney Stanco, an analyst at Concept Capital’s Washington Research Group. She said the senators were open to ideas about bringing the bill forward that could include limiting cap-and-trade to power plants only instead of pollution sources across the economy. Another option could be to cap emissions but prohibit the trading of credits representing emissions reductions. Obama acknowledged that some people doubt the science of global warming. "But even if you doubt the evidence, providing incentives for energy efficiency and clean energy are the right thing to do for our future because the nation that leads the clean energy economy will be the nation that leads the global economy," Obama said. That call generated strong support from analysts and investors. "President Obama made it clear that investing in clean energy and climate solutions will help tackle Americans’ two biggest concerns right now: economic recovery and job creation," said Frances Beinecke, president of the Natural Resources Defense Council in New York. Obama’s comments also showed he wanted to try to take the clean-tech development lead from China, said Edgare Kerkwijk, managing director Asia Green Capital in Singapore. "However, a lot needs to happen as China is currently leading in the number of applications of new patents in the clean technology sector," he said. The Association for Sustainable and Responsible Investment in Asia said it was pleased Obama emphasised the need for more investment in a strong U.S. renewable energy industry. "If it were to happen, it would help create a larger, stronger renewable energy industry globally," said Erik Floyd, Asria’s joint-executive director. (Additional reporting by Jeff Mason, Richard Cowan and Leonora Walet in Hong Kong; Editing by David Fogarty)