Climate Change Innovation in the United Kingdom

In this bulletin:

• Korea signs up to an ETS
• Cancun –All you ever wanted to know
• UK success with Feed in Tariffs
• Rolls Royce develops miser engine
• UK row over rainforest timber
• Aid for world’s poor farmers affected by Climate Change
• Britain’s Green Homes Revolution
• Sun Edison opens Photo Voltaic plant
• Shetland Island wave turbine generating
• A new low Carbon enews site for South East Asia

Korea adopts ETS

In a bold move reflecting an Asian trend the Korean Government is to adopt an ambitious Emissions Trading Scheme

The scheme bears some similarities to New Zealand’s in that it covers all six greenhouse gases. However, it also provides binding caps on emissions for industries which is more similar to the EU ETS. This scheme will penalise industries who do not meet their targets with a penalty price of 5 times the market price per tonne of CO2 over the target.

The Korean Government published its draft ETS Bill on 17 November 2010. Later this month or early next year the Bill will be presented to the National Assembly with the scheme due to start in 2013.

Free allocations to industry will be gradually phased out as it moves to a 100% auctioning system. Observers say that the Korean government will have authority to intervene to stabilise the emissions market. It will have the power for example of increasing auctioning of permits. Potentially this might also include the power to set price floors or caps which are not allowed under the EU scheme.

Importantly, revenues from the scheme, including auction receipts and fines, will be used to set up a Green Investment Fund for energy efficiency and renewable energy projects.

Source : Foreign Office

Ministers hail "historic" Cancun Agreement

Negotiators in Mexico have in the last week approved the "Cancun Agreement", over-riding objections from the Bolivian delegation to reach a deal on a wide-ranging package of measures to curb global greenhouse gas emissions, improve forest protection, and set up a new global "Green Climate Fund".

On a night of high drama the talk's chair, Mexican foreign secretary Patricia Espinosa, banged down her gavel to formally adopt two draft negotiating texts on the future of the Kyoto Protocol and the parallel Long-term Cooperative Action (LCA) negotiating strand.

Further reading
• Cancun Climate Summit - all the latest

• Cancun Summit: Mexico unveils "world's first" climate adaptation plan

The texts were adopted despite objections from the Bolivian delegation, which in a series of tweets expressed opposition to both texts, warning that the targets contained in the documents would condemn the world to average temperature increases of over 4C, and stating: "if the Cancun text was a small step forwards, would support it with reservations, but this is a step backwards".

Under UN rules unanimous support is required for agreements to be formally reached, and as such US negotiator Todd Stern told the final plenary session the meeting should adopt procedures that are "closer to general agreement than consensus". Espinosa moved to adopt those procedures and gaveled through the two texts to applause from the hall.

Mexican President Felipe Calderon praised negotiators for delivering an historic deal, noting that a good agreement is one where everyone is a little dissatisfied.

Officials and many green groups broadly welcomed the compromise agreement, arguing that it represents "an important step" towards a formal treaty being finalized in South Africa next year. However, all parties acknowledged that they are still a long way from a final agreement with both texts effectively delaying decisions on the most contentious issues, such as the future of the Kyoto Protocol and the need to close the so-called "gigatonne gap" by agreeing more ambitious emissions targets for 2020 that are in line with scientists recommendations.

The LCA text, which runs parallel to the Kyoto negotiations and includes the US, sets a target of limiting temperature rises to 2C, and in a concession to island states promises to review whether the goal should be lowered to 1.5C. In addition it brings the voluntary emission targets put forward by nations as part of last year's Copenhagen Accord into the UN negotiating process for the first time.

It also proposes the formation of a new "Green Climate Fund" to manage the distribution of funding to help developing countries reduce emissions and adapt to climate change. In what will be seen as a significant victory for developing countries the fund will be managed by the UN, not the World Bank, which will only serve as a trustee to the fund. The board of the new fund will have 25 members from developing countries with just 15 from industrialised nations.

The text also provides detailed proposals on how nations should monitor, report and verify (MRV) their performance against emissions targets - a key issue at the talks that has been insisted upon by the US and, up until this week, had been fiercely opposed by China.

The Kyoto Text effectively delays any final decision on a second commitment period for the Kyoto Protocol until next year, leaving the most contentious issue at the Cancun Summit unresolved
Source : Business Green

Feed-in tariff installations top 11,000 in six months

After just six months there has been a surge in renewable energy installation in the UK thanks to a feed in tariff incentive scheme.

And independent energy watchdog, Ofgem says that more than 11,000 generators and about 44MW of renewable capacity was added after the tariffs came into force in April this year, as 11,352 do it yourself systems were installed – enough to power about 35,000 homes.

The vast majority of these systems were solar PV panels, which tallies with the government data published so far and backs up reports that the tariffs have proved a much greater success than originally predicted.
The report also rounds up the energy market regulator's progress in accelerating the development of supporting infrastructure for green energy over the past 12 months.

The report said that from 2013 the RIIO will extend price controls to cover eight-year periods, introduce result-based incentives for network operators, and expand the £500m Low Carbon Network Fund to encourage smart grid and energy efficiency programmes.
"This is the biggest change to the regulatory framework for 20 years and sets the network companies on a path to playing their full role in the transition to a low-carbon economy while delivering value for money for all consumers," chief executive Alistair Buchanan wrote in a foreword to the report.

Ofgem has already authorised more than £300m of funding for transmission network upgrade programmes and also this year concluded the first round of competitive tenders for connecting offshore wind farms under the Offshore Transmission Owners regime.

Three preferred bidders were selected to run the transmission assets for nine wind farm projects, resulting in £1.1bn of investment in transmission links and savings of £350m for offshore wind farm operators and consumers, Ofgem said.
The watchdog also confirmed that a second tender process will be conducted before the end of the year.
Source :BusinessGreen

'Fuel-miser' engine aims to cut pollution
Rolls-Royce prototype aero-engine

A PROTOTYPE aero-engine that promises to enable engine makers to reduce aircraft pollution substantially by 2020 is being tested by Rolls-Royce and has shown great success.

Designed to use less fuel and produce less pollution while achieving a 25 per cent-plus increase in thrust-to-weight ratio, it has made a successful debut on the test bed with engineers reporting "excellent results" during 40 hours of running.

“Our E3E technology, which is at the heart of our future two-shaft engine product strategy, continues to make great progress.” claims Mark King, Rolls-Royce, President of civil aerospace

The demonstrator E3E core engine (so called because it is dedicated to efficiency, environment and economy) is the centrepiece of a research programme seeking to develop a two-shaft design for business and regional aircraft that will increase engine temperature, pressure ratio and component efficiencies while cutting pollution and producing more thrust relative to engine weight.

This programme is part of a massive multimillion pounds Rolls-Royce research effort to produce a new generation of environmentally friendly engines (EFEs) that will serve aircraft ranging from the smallest to the biggest.

In 2009, the United Kingdom company invested 864 million pounds in research and development, two thirds of which was aimed at further improving the environmental aspects of its products, in particular the reduction of emissions.

Rolls-Royce is aiming to produce novel technologies that will reduce fuel burn and CO2 emissions by 15 per cent compared with similar engines in service today.

Lean-burn savings on the E3E are also expected to reduce NOx (oxides of nitrogen) emissions, as researchers strive to meet ACARE targets of a 60-per-cent reduction over the next decade.

Rolls-Royce is today one of the world's top three aero-engine suppliers with an annual turnover of more than 10 billion pounds (http://www.rolls-royce.com).

It has more than 38,000 skilled workers located in 50 countries, providing aero and other engines for 600 airlines, 4,000 corporate and utility aircraft and helicopter operators, 160 armed forces, some 2,000 marine customers, including 70 navies, and energy customers in nearly 120 countries, with an installed base of 54,000 gas turbines. It has an order book worth 58.3 billion pounds.
Source :UKTI

MPs grill Spelman over illegal timber 'U-turn'

Environment secretary Caroline Spelman last week defended the government's decision not to introduce new legislation banning the possession of illegal timber, maintaining that new EU rules would effectively tackle the import and sale of timber logged from the world's protected rainforests.

Facing the Environmental Audit Committee on Wednesday, Spelman denied that the government had performed a U-turn after foreign secretary William Hague and climate minister Greg Barker while in opposition both pledged to deliver British legislation to make the practice illegal.

The commitment to "make the import or possession of illegal timber a criminal offence" was also included in the coalition agreement and the committee, which is chaired by the Labour MP Joan Walley and includes Green Party MP Caroline Lucas and Conservative MP Zac Goldsmith, pressed Spelman to explain the failure to pass specific legislation.

Spelman maintained that the adoption earlier this year of an EU-wide ban on the import of illegal timber, which will come into effect in 2013, meant there was no longer any need for specific British legislation that would duplicate many of the EU rules.

But Lucas warned that "shell companies" could easily be set up to get around the import ban, and insisted that only a wide-ranging ban on possession of illegal timber would prove effective at halting the sale of illegal timber.

"The point is that if you only make it illegal at point of entry, you have absolutely no sanctions against any firms who buy it. It's a huge loophole and we clearly need far more rigorous legislation," Lucas said. "Presumably that was recognised when William Hague made the promise so it's not clear why it's not being recognised now."

Lucas is planning to introduce a private members bill early next year, which if adopted would make it illegal to "transport, sell, receive, acquire or purchase illegal timber products".
However, the committee also touched on the feasibility of such a wide-ranging ban, with Spelman suggesting that it would be difficult to enforce and would have to find a way of dealing with those who are currently unaware of the fact that they possess illegal timber.

FURTHER READING
• European Parliament approves illegal timber ban
• Government tightens sustainable timber procurement policy
Source : Business Green

£37m to help world's poorest farmers

The Department of International Development has announced it will give £37m in overseas aid to help some of the world’s poorest farmers adapt to climate change.

International Development Secretary Andrew Mitchell said there was an ‘urgent’ need for new crops that could survive floods, droughts and storms.

He added: “We need to develop crops that can survive a future blighted by the floods, droughts, rising temperatures and natural disasters that climate change may bring. Innovation during the Green Revolution led to huge increases in food production across the world.

"We now need similar scientific breakthroughs to make sure millions of the world’s poorest do not go hungry as a result of climate change.”

The department is offering £37 million in 2010/11 to the Consultative Group on International Agricultural Research, which supports research into crops, livestock, fisheries, forestry and the environment, and develops new technologies and techniques. It’s recent work has included a new variety of flood-resistant ‘scuba’ rice (case study here). The department expects a nine-fold return on every pound invested in terms of additional food being produced in developing countries.

NFU comment

“We would endorse this work as an important part of the UK response alongside work looking at our domestic response to climate change.”
• How to feed nine billion by 2050
• Climate change news from the NFU.
Source : National Farmers Union

Huhne heralds green homes revolution

“The Green Deal’s about making people feel as warm as toast in their homes. I want Britain to say goodbye forever to leaky lofts and chilly draughts”
(Chris Huhne, Secretary of State)

Thousands of new insulation workers will soon be hitting Britain’s streets as part of a national effort to make people’s homes warmer and cheaper to run.

Chris Huhne, Energy and Climate Change Secretary, today said that by 2015 up to 100,000 Green Deal workers could be employed in the effort to upgrade Britain’s homes. Currently around 27,000 work in the insulation industry. Legislation to start the process of establishing the Green Deal is due to be introduced into Parliament next month.
The Green Deal is the Government’s new and radical way of making energy efficiency available to all, whether people own or rent their property. The work to upgrade the property will be paid back from the saving on energy bills.

Chris Huhne, visiting British Gas’ Energy Academy in Thatcham, said:

“The Green Deal’s about making people feel as warm as toast in their homes. I want Britain to say goodbye forever to leaky lofts and chilly draughts. At a time of increasing gas prices energy efficiency is a no-brainer.

“It’s also a massive economic and job opportunity which could help Britain’s economy turn the corner. With up to 100,000 green jobs up for grabs over the next 5 years, and even more in the long term, this is about growing our economy in a way that’s good for jobs, the environment and energy security.”

The Green Deal, which is expected to be available from Autumn 2012, will be open to homes and businesses and will involve a 3-step process:

Step 1 – an independent energy survey of the property, giving clear advice on the best energy efficiency options, such as loft or cavity wall insulation.

Step 2 – Green Deal finance to be provided by a range of accredited providers, which will be repaid through savings on energy bills, making properties cheaper to run from day one.

Step 3 – Homes and businesses will then receive their energy efficiency package. Only accredited measures will be installed by appropriately-qualified installers, overseen by Government, giving consumers confidence that the deal they are getting is high-quality and will save them money.

The Government has today also announced measures to improve the energy efficiency of the private rented sector. With Green Deal, landlords will face no upfront costs when improving their properties. The forthcoming Energy Bill will create powers allowing any tenant asking for reasonable energy efficiency improvements to receive them from 2015 onwards. It will also allow local authorities, to insist that landlords improve the worst performing homes. Whether or not we use these powers will be subject to a review.

In September, British Gas announced its plans to “go early” on the Green Deal by investing £30 million in installing energy efficiency measures in its customers’ homes at no up-front cost. Repayments from customers will be made via savings in their energy bill.

To help deliver these energy efficiency services, British Gas plans to recruit a total of 3,700 “green-collar” jobs by the end of 2012. Today, British Gas announced that it has now filled 1,000 of these “green collar” roles across insulation, in-home advice, renewable generation and smart metering.
Phil Bentley, Managing Director of British Gas, said:

“With rising energy prices, there’s never been a better time to improve the energy efficiency of Britain’s homes. That’s why we’ve worked quickly to set up the British Gas Green Deal, a £30million investment in our customers’ homes. And today, we’re pleased to announce the recruitment of our thousandth green collar worker, who will help deliver the British Gas Green Deal. In total, we aim to have 3,700 green collar workers in place by 2012.”

In the build up to the Green Deal, 3.5 million more homes across Great Britain are likely to benefit from insulation by 2012 as part of changes to the obligation on energy suppliers announced in June. As part of the changes, 15% of homes helped will be the lowest income households more at risk of fuel poverty.

Note to Editors.
1. It is estimated that there are 14 million insulation measures like loft, cavity and solid wall to be carried out in Britain’s homes.
2. Were all 26 million households to take up the Green Deal over the next 20 years, employment in the sector would rise from its current level of 27,000 to something approaching 250,000.
Source: UKTI

SunEdison opens Europe's largest PV plant
The commercial and utility-scale solar services company SunEdison just completed a 70-MW solar photo voltaic project in Northeast Italy. The project, which was completed in 9 months, is now the biggest operating PV plant in Europe.

SunEdison's President, Carlos Domenech, called the project a “new milestone” for speed of mega-project deployment. In October, SunEdison sold the project to infrastructure investor First Reserve for $382 million.

The last week has seen a number of big solar PV project announcements globally.

Also in Italy, SunPower signed an agreement to develop two 5-MW projects in the southeast for the independent power producer Etrion. This set of Italian projects comes after Etrion purchased a 33-MW Italian power plant from SunPower earlier this summer.

In India, the Konark Group, a textile company, is looking to build a 5-MW solar PV plant in India. The company announced intentions to build 100 MW of solar PV and wind projects India over the coming years.

In the U.S., where large-scale development has been steadily growing, the California utility Southern California Edison has signed 20 power purchase agreements with developers for 240 MW of solar PV projects. The contracts include 25 MW of concentrating PV, marking a big step for that slower-growing sector of the solar industry.

Source: Renewable Energy World 23 November
Further information: http://www.sunedison.com/
Source : BIM / UKTI

Wave turbine is producing
A new type of wave turbine has produced electricity for the first time. The 750kW Pelamis P2 machine, which Vattenfall intends to install off Shetland in 2014, is the first of its type tested anywhere in the world. It arrived at Orkney’s European Marine Energy Centre (EMEC) in May.

In Shetland, Vattenfall envisages siting up to 26 of the same kind of machine offshore between Burra and Spiggie to generate up to 20 MegaWatts of power. Councillors on the planning board are expected to consider this so-called Aegir wave farm bid early next year.

Measuring 180 metres long, the P2 machines are 50 metres longer than the original Pelamis wave-power generator and are expected to be considerably more efficient at producing power.

E.ON also plans a 50MW wave farm off Orkney using the machines, and a third one of the same size is planned by Pelamis itself for a site off Armadale in Sutherland. All three big wave farms have already received development licences from the Crown Estate.
Source: All Energy News 21November
Further information: http://www.pelamiswave.com/, http://www.eon-uk.com/

Source : BMI /UKTI

New Carbon News site on the Block
A new enews site, http://www.eco-business.com, has been set up offering low carbon business news from the Asia Pacific region .

In the past year the site has had over 20,000 hits a month.

The site has begun to receive sponsorship from green corporates, and now has two full time staff with a masters in Environmental Science from Columbia University to drive content. The founder, a business journalist with The Straits Times, received an “Earth Journalism Award” at the Copenhagen Summit.

Source : Foreign Office

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