Saturday, February 19, 2011

Video: EPA Administrator Lisa Jackson's Address at the Good Jobs Green Jobs Conference



EPA Administrator Lisa P. Jackson's opening keynote address at the Good Jobs Green Jobs Conference on February 8, 2011. Jackson explains how facing environmental issues provides economic benefits and good green jobs. Jackson goes on to illustrate how Environmental health and economic growth go hand in hand. Environmental protection has created 1.7 million jobs as of 2008 and between 2000 and 2008 the environmental protection industry has netted 300 billion in revenues. These facts are important as special interests try to gut America's safeguards like the clean air act, while trying to find loopholes so that big polluters can skirt common sense protections.

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Friday, February 18, 2011

Republican Opposition to Obama's Clean Energy Standard

Republicans who once favored clean energy are now opposing President Obama's “clean energy standard.” Many Republicans appear intent on burying the President's plan by equating it with the failed cap-and-trade bills which conservatives falsely claimed was costly and a job-killer.

The Republican point man on the war against renewable energy is House Energy and Commerce Committee Chairman Fred Upton. In a Wall Street Journal column, Upton said Obama’s plans “smell like cap-and-trade all over again.”

Lisa Murkowski is the top Republican on the Energy and Natural Resources Committee, she reiterated the Republican refrain that the low-carbon energy plan would raise consumer costs.

The White House claims the clean energy standard will help bring "tens of billions of dollars each year in new investment," and it will “give utilities the flexibility to generate clean energy wherever makes the most sense.” The clean energy standard not only creates jobs it positions the US as a leader in expanding green energy economy.

To gain Republican support for "clean energy" the President has adopted a very liberal standard that includes nuclear, natural gas and even clean coal. Although Republicans had previously shown support for these power sources, they have shown very little interest in working with the President.

Obama warned resistant Republican lawmakers that inaction threatens jobs, increases American dependence on foreign oil and puts the US at a competitive disadvantage.

Despite the President's sincere bipartisan efforts, Republicans are virtually unanimous in their bid to bury the President's plan.

© 2011, Richard Matthews. All rights reserved.


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Thursday, February 17, 2011

Republican Cuts Target Green Jobs

President Obama's 2012 budget plan slashes the deficit by $1.1 trillion over 10 years, but House Republicans want to see at least $60 billion in cuts this year. Obama indicated that the budget he sent Congress will help meet his goal of cutting the deficit in half by the end of his first term.

The Obama budget is said to have used a scapel to make cuts while at the same time increasing spending in areas deemed vital to America's competitiveness. The budget proposes tax increases for the wealthy and some businesses, and increased government investments in elementary schools and clean energy. They also integrated some interesting green ways of saving money. The State Department said it expected to save $5.3 million in energy costs over the next three years by painting the roofs of its offices in a heat-reflecting white. And the US Agency for International Development projected hundreds of thousands in paper savings by reducing the font size in its documents.

Republican cost cutting measures have been put together in the Continuing Resolution (CR), they also proposed almost 600 amendments. Many of the proposed amendments are designed to cut spending and defund policies including the Democrats green agenda. The two most important amendments for anti-environmental conservatives include Amendments No. 198 and No 149.

Amendment No. 198 seeks to block Environmental Protection Agency (EPA) enforcement. This amendment was introduced by Rep. Ted Poe (R.-Tex.), it would prohibit any CR funds for the EPA to “implement, administer, or enforce” requirements pertaining to the emissions of greenhouse gases, such as the permit requirement under the Clean Air Act. With this amendment, House Republicans want to undermine the EPA's efforts to limit global warming pollution from new power plants and factories.

Amendment No. 149 wants to defund the Climate Change Panel. This amendment was introduced by Rep. Blaine Luetkemeyer (R.-Mo.), it would block any CR funds from being used for “contributions to the Intergovernmental Panel on Climate Change (IPCC).”

Other environmentally harmful Republican amendments include ending protection for wild lands and mountaintop removal mining. Republicans also want to take the Northern Rockies gray wolves off the endangered species list, reduce river water levels which will threaten salmon, and expedit offshore oil drilling approvals by ignoring compliance with environmental and safety measures.

The Republican track record on the environment is woeful. The League of Conservation Voters scorecard of 2010 illustrates just how unfriendly Republicans are to the environment. Now Republicans want to eliminate Obama's proposed investment in clean energy, as well as deprive the EPA and the Climate Change Panel of funding.

Democrats control of the Senate and Obama's veto powers, may be able to stave off the CR bill, but Republicans have threatened to shut down government even though this may anger Americans. According to a CNN/Opinion Research Corporation survey, most Americans would not react favorably if Republicans shut down the federal government for a few weeks.

If we ignore Republican's knee jerk obstructionism, the issue comes down to whether the benefits of government spending outweigh deficit spending. Governments around the world seem to share Obama's take on the importance of government investment to help the economy and create jobs. This is particularly true for green spending which provides jobs while helping industries grow so that they can be competitive.

Republican law-makers need to be reminded that unemployment is one of America's greatest challenges and green investments create jobs. While the rest of the world is investing in employment, Republicans are trying to divest America of its ability to compete in the growing green economy.

© 2011, Richard Matthews. All rights reserved.

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Tuesday, February 15, 2011

Energizer Gets Greener with LED Lighting from CRS

Energizer has partnered with CRS a manufacturer of light-emitting-diode (LED) technology. On February 14, 2011, CRS Electronics Inc. (TSX-V:LED), an inventor, developer and manufacturer of LEDs, announced an exclusive agreement with Energizer Holdings, Inc. (NYSE:ENR).

With rapidly growing demand for energy efficient lighting, this new partnership is causing investors to take notice. Energizer says the move will help expand its portfolio, and CRS stock surged 46.94 percent on Monday.

According to a 2011 report from Pike Research, energy-efficient technologies are expected to make up over 75 percent of the US lighting market by 2020. Strategies Unlimited has predicted growth of 28 percent in the LED lighting market from 2008 to 2012. The LED market was forecasted to exceed $5 billion in 2012, corresponding to a compound annual growth rate of 28 percent between 2008 and 2012.

Energizer has a long-standing commitment to environmental preservation. They have taken steps to minimize the environmental impact of their products and their manufacturing processes. The company has led the industry in eliminating heavy metals like Mercury and Cadmium from their batteries. Energizer's packaging is 100% recyclable, and they have dramatically reduced ozone-depleting agents from their production process and their supply chain. The battery giant is also one of the largest supporters of the Rechargeable Battery Recycling Corporation (RBRC). Energizer continues to proactively reduce the environmental footprint of their manufacturing operations ahead of governmental mandates. In the US, the EPA modeled its battery effluent standards on Energizer's achievements.

What makes this deal noteworthy for investors is the fact that this is a partnership between two well placed complimentary players. CRS is a leader in high efficiency LEDs, the company's main motto of is "to reduce energy while maintaining quality." Energizer is one of the world's largest manufacturers of primary batteries, portable battery-powered devices, and portable flashlights and lanterns. Energizer manufactures the "Ultimate Lithium," the longest lasting battery for high-tech devices and CRS manufacturers some of the most efficient LEDs including the MR16, PAR 20, PAR 30 and PAR 38. This partnership enables Energizer to benefit from the growing LED market, while CRS gains access to the Energizer brand.

In a recent press release from CRS, Jim Olsen, Vice President of Marketing for Energizer North America, said, “CRS was selected for their commitment to excellence in LED lighting technology capabilities and their history of innovation in the LED lighting industry.”

“We are honoured to be working with the Energizer® brand name. Partnering with a premium, trusted brand validates our efforts and gives us a competitive edge in the marketplace,” said Scott Riesebosch, President, CRS Electronics. “This agreement expands our product reach from the commercial space to retail, and from one product line to four, representing a significant growth opportunity for the Company. We are thrilled with the opportunity and will continue to develop new LED products to support our relationship with Energizer.”

LED lighting is destined to play a central role in efficiency efforts because LEDs are more efficient than incandescent, halogen and compact fluorescent lights (CFLs). According to a study titled, Advanced Lighting to 2013 - Demand and Sales Forecasts, Market Share, Market Size, Market Leaders, US demand for advanced lighting is forecasted to grow 10.9 percent annually through 2013. The study predicts that CFLs and LEDs will grow the fastest. However, CFLs contain mercury and are therefore difficult to recycle.

There are other problems associated with CFLs. As reported in Popular Mechanics, CFLs do not live up to their Energy Star ratings while "LEDs have a quality of light superior to all other types of lighting—and they deliver it more efficiently."

Around the world less efficient lights are being replaced. In the US, the growth of LEDs will be driven by 2007 legislation that banned the incandescent light bulb. This legislation is scheduled to come into effect in 2012. By 2014, all lights must use 25 to 30 percent less energy, and by 2020, lights must be 70 percent more efficient than they were in 2007.

Energizer's new CRS LED lighting products will be well positioned to take advantage of the trend towards more efficient lighting solutions. CRS is an Energy Star and Lighting Facts partner and a well-established LED lighting supplier in North America, including providing LED replacements for halogen lights.

LED lighting will increasingly replace both incandescent and halogen lighting. LED lighting uses approximately 75 percent less energy than a halogen light bulb. LEDs can last up to 50,000 hours while halogen light bulbs last between 2,000 and 6,000 hours. LED bulbs last up to 10 times as long as CFLs and far longer than incandescents. LED lighting extends battery life 10 to 15 times longer than with incandescent bulbs. LEDs use only 2-10 watts of electricity or 1/3rd to 1/30th of the energy needed for incandescent bulbs or CFLs.

Although LEDs are more expensive than either incandescent bulbs or CFLs, the cost is recouped over time in energy savings. The cost of LEDs will also decrease as the market grows and production increases. LEDs offer great value, particularly in commercial settings where maintenance and replacement costs are expensive.

Halogen bulbs convert about 90 percent of the energy to radiant heat. While LED lighting converts only a fraction of the energy to wasted heat. By producing 3.4 btu's/hour compared to 85 for incandescent bulbs, LEDs do not cause heat build up and this reduces energy costs associated with air conditioning.

The low power requirement for LEDs also make them ideal for use with small scale renewable power generation like solar panels.

The CRS partnership fits seamlessly with Energizer's continuing environmental efforts. CRS LED lighting products are consistent with Energizer's new marketing campaign that goes by the title, Now That’s Positivenergy. The campaign's central message is power plus responsibility.

CRS manufactured LED lighting products bearing the Energizer brand will be available to commercial and retail networks in the second half of 2011. With LEDs rapidly becoming the standard, the new Energizer branded LEDs are poised for explosive growth.

For more information about CRS, contact Debbie Bamforth debbieb@crselectronics.com or Al Hussey ahussey@crselectronics.com.

© 2011, Richard Matthews. All rights reserved.

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Monday, February 14, 2011

China Wants a Global Climate Change Treaty in 2011 Blames US

China wants to see a global binding climate change treaty by late 2011. In the China Economic Times, Li Gao, a senior Chinese negotiator on climate change, said the US was to blame for making a deal on global warming impossible in Cancun in 2010. Mr. Li said that his government hopes for a binding climate treaty in South Africa in November, 2011.

Mr. Li oversees the international climate change negotiations office at China's National Development and Reform Commission, the agency that steers economy policy. Mr. Li vowed to keep pressing rich countries to promise deeper cuts to carbon dioxide and other greenhouse gases from human activity.

"The biggest obstacle comes from the United States," he said. "Without any (climate change) legislation, it can't possibly join in a legally binding international document."

China is the world's biggest emitter of greenhouse gases from human activity, but with 1.3 billion people, it is also a developing country with average emissions per capita well below those of wealthy economies.

Mr. Li said Beijing would keep pressing for certain principles, including that developing countries like China should not shoulder the same absolute caps on emissions as rich countries.

© 2011, Richard Matthews. All rights reserved.

Saturday, February 12, 2011

China's Green Investments and Growing Economic Preeminence

Companies operating in China are seeing a wealth of opportunities in the green sector as are investors. However, Chinese government investments are driving even greater opportunities on the horizon.

In 2010, China surpassed Japan as the world’s second-largest economy. In three-decades China has emerged from Communist isolation to global superpower. China is also leading the world in its support for a green economy.

Domestically China has lifted 300 million citizens out of poverty. Globally China has helped lift the world out of recession. According to the Organization for Economic Cooperation and Development, China's “double-digit” expansion was responsible for a third of global growth in 2010. The International Monetary Fund (IMF) said in a report on Oct 6, 2010 that China's growth was projected to be 10.5 percent in 2010 and in 2011 growth is projected to be 9.6 percent.

China has even overtaken the US as the world's biggest automobile market. It is also increasingly leading the world in technological innovation and new patents. China is already the world leader in wind and solar energy manufacturing, firmly establishing its global dominance in cleantech.

China’s clean-energy success is due to the same factors that made it a manufacturing leader, low labor and construction costs, expanding universities that produce large numbers of engineers and technicians, improving telecommunication and transport systems.

The green market is destined to be the single biggest economic trend of the twenty-first century and China's leadership is cementing the nation's role as the world's green leader. China's green market investments will soon propel that nation ahead of the US as the world's pre-eminent economic power.

PricewaterhouseCoopers said in a January 2011 report that China is on course to overtake the US as the world’s largest economy around 2020. Ten years from now a waning superpower may look back and realize that Chinese government investments provided the edge that enabled China to out-compete America.

© 2011, Richard Matthews. All rights reserved.

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Thursday, February 10, 2011

Rare Earth Minerals Power the Green Economy and Embolden China's Bid for Dominance

China's control of rare earth minerals positions the nation as the green OPEC of the future. China controls the vast majority of the world's supply of rare earth minerals which are vital to a wide range of new technologies.

Rare earth elements or rare earth metals are a collection of seventeen chemical elements in the periodic table, specifically the fifteen lanthanoids plus scandium and yttrium. However, because of their geochemical properties rare earth elements are typically dispersed and not often found in concentrated and economically exploitable forms known as rare earth minerals (REMs).

All other countries producing rare earth minerals are dwarfed by the scale of Chinese production. China now produces approximately 97% of the world's rare earth supply, mostly in Inner Mongolia. All of the world's heavy rare earths (such as dysprosium) come from Chinese rare earth sources such as the polymetallic Bayan Obo deposit.

REMs are a crucial part of many modern technologies, including clean technologies like hybrid car batteries and wind turbine motors. REMs are essential to modern electronic devices, rechargeable batteries, electric motors, photo optics, solar cells and strong magnets.

China has understood the strategic and technological importance of REMs for a long time. Almost 20 years ago, Communist Party Leader Deng Xiaoping said in a radio broadcast from China National Radio, "There is oil in the Middle East. There is rare earth in China."

The surging importance of cleantech is driving demand for REMs. The current generation of hybrid cars alone each require between 23 and 25 pounds of REMs. By 2015, there are likely to be over 10 million battery-powered cars on the road around the world. This translates to 250 million pounds of REMs for hybrid and fully electric vehicles in the next few years.

China is driving the green economy forward, and the green economy is driving the demand for REMs. With the vast majority the world's reserves of REMs under Chinese control, this puts China in the enviable position of controlling some of the earth's most important natural resources.

© 2011, Richard Matthews. All rights reserved.

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Wednesday, February 9, 2011

Green Investment Opportunities in China

Investments by the Chinese government are creating a wealth of green sector opportunities. China's huge business and consumer base is creating demand for everything from renewable energy to green buildings.

A good illustration of the profit potential afforded by China's green market comes from Chan Han Meng, executive director of Nature Elements Capital. According to Chan, Green buildings offer a 30 - 50 percent price premium while additional construction costs are only five per cent.

China is investing $736-billion in sectors like wind and solar. Targeting the best entry points to invest in the Chinese green market involves paying close attention to the sectors that, with government support, can compete with traditional sources of power.

Chinese Government incentives in the wind power sector have reduced the cost to between 0.5 RMB and 0.7 RMB per kilo watt hour. Renewable sources of energy like wind power will skyrocket once the cost per kilo watt hour matches coal, currently about 0.4 RMB per kilo watt hour.

China's green energy economy hinges on making clean energy competitive with coal. The Chinese government is waiting for the Parliament to approve measures that will provide loans, grants and tax breaks that will help make renewable energy cost competitive with coal. To help with this goal, China may even impose tariffs on energy derived from coal.

Up to half a trillion US dollars in clean energy investment capital will be required to meet China's proposed green targets over the next five years. This affords opportunities for investors who want to earn significant returns while helping to green the earth.

© 2011, Richard Matthews. All rights reserved.

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Tuesday, February 8, 2011

China's Most Recent Five Year Plan

China’s most recent five year plan (FYP) covers the period 2011-2015, and China’s National People’s Congress (NPC) is expected to approve the final version in March 2011. This FYP is expected to shift China’s development agenda towards sustainable growth.

The FYP will strengthen China's energy efficiency in key sectors such as heavy industry, construction, and transportation. China will also support the development of energy efficiency technologies. In addition, management on supply and demand sides will be improved including national utility demand-side management (DSM) .

China may further boost prices of fossil fuels, as well as levy carbon, environmental and resource taxes.

China plans to implement a domestic carbon-trading market to reduce carbon emissions and promote clean-energy industries. A cap-and-trade market in China may be in place by 2020 and could begin targeted applications as early as 2013.

China will support the development of clean energy technologies and boost its domestic clean-tech market. China may invest up to US$1.5 trillion over the next five years in seven strategic industries, such as alternative energy, alternative-fuel vehicles, and environmentally friendly technologies. Approximately US$300 billion will be invested in the construction of smart grid in China in the same time.

China is also planning on paying more attention on its coastal waters. China's marine ecological restoration is focusing on measuring the amount of organic pollutants found in surface water by monitoring chemical oxygen demand. They are also limitating emissions of nitrogen and phosphorus which causes eutrophication. New coastal construction will be strictly examined to ensure they are not adversely impacting the environment.

© 2011, Richard Matthews. All rights reserved.


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Monday, February 7, 2011

China can School the US About Green Growth

America is often viewed as the preeminent world leader, but when it comes to growing the green economy, the US can learn a lot from China. Although China is often criticized as being the world's largest CO2 emitter, it has an average emissions per capita well below those of wealthy economies.

Both China and the US have set emissions goals for 2020. The US has proposed a 17% cut in emissions from 2005 levels while China has proposed a 40% to 45% reduction in carbon intensity (per person) from 2005 levels. The World Resources Institute has said those two efforts would have about the same outcome.

However there is a major difference, China's goal is official policy, America's goal, although announced by the White House, is not official policy, nor has any legislation been passed to attain that goal.

China is making real progress in developing renewable power. In 2008, China got 9% of its energy from renewable resources. It has committed to raise that number to 15% by 2020. But recent reports show that if the current expansion rate continues, solar power alone could reach five or ten times the 15% target.

In 2007, 7% of US energy came from renewable resources and with any hope of legislation crushed by Republican gains in the midterm elections, that number is not likely to significantly increase in the short term.

Three years ago, China met its 20 percent energy efficiency goal and in 2010 and they are creating more stringent goals for 2020. The US has set no firm targets.

When it comes to fuel economy, China is also leading the US. In 2010, America set new Corporate Average Fuel Economy (CAFE) standards at 35.5 miles per gallon, while China achieved an average fuel economy of 36.7 miles per gallon back in 2008.

The Chinese solar, wind and EV industries are leading the world. On the stock market, some of the best gains are coming from Chinese cleantech companies which are present in almost every sector.

As reported in YaleGlobal Online, a comparison of Chinese and US firms indicate that America has lost its competitive edge. In 1998, the US owned 25 percent of worldwide high-tech exports while China’s was less than 10 percent. By 2008, China’s share was 20 percent, with America’s below 15 percent.

The most revealing statistics come from a Bloomberg survey, created in collaboration with the UN Environment Program. This study indicates that China became the largest recipient of renewable energy financing in 2009, attracting more than 20 percent of the US$162 billion invested worldwide in wind, solar, biomass, small hydro, biofuel and marine energy. While such investment in China grew by 53 percent, in the US it shrank by 45 percent.

A study published by the Harvard Kennedy School’s Belfer Center found that, unlike the US, China coordinates and supports energy R&D through government owned enterprises.

By some estimates, investments in renewable-energy assets may total US$2.3 trillion by 2020. If America is to compete with China for the lucrative green market and all the jobs that come with it, the US will need to develop a much more coordinated approach.


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Sunday, February 6, 2011

Video: China Leading the Green Economy while America's Democracy is Being Undermined



America could be screwed in the 21st century according to US Energy secretary Steven Chu. China is responsible for more than 20 percent of high tech exports while the US is responsible for 15 percent. China is the leader in clean and efficient travel with almost 6 thousand miles of high speed rail under construction while the US has none. China is also bettering America when it comes to innovation. Even American renewable energy firms are setting up in China. Republicans in Congress do not believe in the science behind global warming and this is undermining America's international competitiveness. As China builds its green economy, in the US, democracy is being undermined by laws which give corporations the same rights as people.


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Saturday, February 5, 2011

China's Green Laws for Business

In 2008, China passed green legislation aimed at companies operating in China. The legislation had a major impact on Western firms who thought their carbon intensive operations could avoid government regulation by being based in China.

According to research from Carnegie Mellon University, a third of Chinese emissions are the direct result of the manufacture of products and services that are exported, primarily to Western markets.

China's laws and regulations support the government's climate change targets including reducing energy consumption per unit of GDP by 20 percent, doubling renewable energy capacity. These laws also helped China to succeed in their goal of cutting pollution levels 10 percent by 2010 compared to a 2005 baseline.

A range of Chinese regulations are designed to curb carbon emissions and promote adoption of clean technologies. These measures help China to develop a "recycling economy" that could maximize economic efficiency while minimizing energy consumption and emissions. Industrial and rural sectors are encouraged to make wider use of waste material.

Under the regulations, industries are required to introduce water-saving technologies and encouraged to switch to cleaner forms of energy, including renewables. Businesses and government departments are required to install renewable energy technologies in new buildings and develop their own plans for promoting energy efficiency and recycling.

Tax breaks have also been introduced on energy efficient and clean technologies, and a number of inefficient products have been banned. Companies and government departments that use prohibited products face fines of 50,000 yuan to 200,000 yuan (about $7,622.53 USD to $30,490.13 USD).


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Thursday, February 3, 2011

The Chinese Government is Investing in Clean Energy while the US Congress Dithers

In January, Chinese President Hu Jintao came to Washington on an official state visit. In a joint statement President Obama and President Hu said that they "view climate change and energy security as two of the greatest challenges of our time."

During a press conference, President Obama said, “I believe that as the two largest energy consumers and emitters of greenhouses gases, the United States and China have a responsibility to combat climate change by building on the progress at Copenhagen and Cancun, and showing the way to a clean energy future. And President Hu indicated that he agrees with me on this issue.”

With a 2009 investment of $34.6 billion (US), a 2010 study by Pew Charitable Trust considers China to be the world's leading country in clean energy financing. Due to China's domestic policies that promote the use of renewable energy, China's investment and financing for clean energy is almost double America's $18.6 billion (US). The Pew study said countries like China, Brazil, the UK, Germany and Spain that have "strong, national policies aimed at reducing global warming pollution and incentivizing the use of renewable energy are establishing stronger competitive positions in the clean energy economy."

According to a 2010 International Energy Agency report, Chinese energy consumption has doubled over the past decade, and will soar 75 percent by 2035, accounting for more than a third of total global consumption growth. To help meet this demand, China is aggressively investing in renewable sources of energy.

China's need for energy will transform the global clean energy landscape, dramatically expanding markets for clean technologies and prompting major state investments in low-carbon energy alternatives. China has become the world's most vibrant market for a range of green economy technology including renewable energy, high-speed rail, smart grid technologies, and even a growing domestic market for electric and plug-in hybrid vehicles.

China has also set ambitious targets of 100 gigawatts of wind power and 20 gigawatts of solar by 2020. Each target is supported by feed-in tariffs and other financial incentives for renewable energy projects, and in 2009, China surpassed the United States as the world's largest market for wind power.

China is also the world's largest solar cell manufacturer with an annual output of 4,382 MW and the number is still increasing. The current yearly output of solar cells in Jiangsu Province alone accounts for 25% of global output.

China's planned investment in the clean tech market amounts to $740 billion or 5 trillion yuan while the American Recovery and Reinvestment Act has allotted less than 5 percent of that amount to clean tech.

Despite a wealth of bilateral engagements and coordination between the two leaders, America is not competing on the same footing in clean tech. The current American energy policy can only be defined as stupid. While the Chinese government is making massive investments, a climate denying Congress ensures that the US will continue to fall behind in the clean technology race.


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Wednesday, February 2, 2011

Extreme Weather and the Costs of Climate Change

As a massive storm ravages North America we should remember that one extreme weather event does not constitute evidence of climate change. However, when we examine all the extreme weather events taking place around the world over the course of the last year, we develop a convincing portrait of the early effects of climate change.

Global warming is the chief suspect behind a wide range of extreme weather events including storms and floods. The higher temperatures associated with global warming cause more water evaporation, which increases the chances of heavy precipitation events, such as floods and snowstorms.

In January, 2011, 49 out of 50 US states reported snow on the ground. The National Weather Service estimated that 70.9 percent of the country was covered by snow. December 2009 had the second largest snow cover since the mid-1960s.

Extreme winter weather has significant negative economic impacts including reduced work productivity, snow and ice removal, restoring downed power lines, weather-related accidents and flooding. New York Cit Mayor Bloomberg has said that the snow costs taxpayers about $1 million for each inch of show. States like Virginia spend over 100 million per year to manage winter weather.

According to the UN, Natural disasters caused $109 billion in economic damage in 2010, three times more than in 2009. The economic cost estimates are based on data from national authorities as well as insurance companies including Swiss Re, Munich Re and Lloyd's.

The Center for Research on the Epidemiology of Disasters (C.R.E.D.) has said there has been a "dramatic" rise in natural disasters during the past decade. C.R.E.D. Director Debarati Guha-Sapir said, "The number of events have gone up very, very dramatically."

According to C.R.E.D. data, during the period between 2000 to 2009, there were 385 disasters, an increase of 233 percent since period between 1980 to 1989, and an increase of 67 percent since the period between 1990 to 1999. Although many of these disasters were earthquakes, climate related events, such as droughts, storms and floods make up the majority of disasters overall. Climate related extreme weather events have increased tenfold since data was first collected in 1950.

According to NOAA, the globally averaged temperature for 2010 was the warmest ever recorded. The UN weather agency announced, 2001-2010 is the warmest 10 year period since the beginning of weather records in 1850.

In 2010 record draughts killed 55,736 people in Russia and led to crop failures that helped drive up food prices. The devastating floods in Pakistan in July and August cost $9.5 billion and killed 1,985 people. A total of six million people lost their homes, and about 20 million people were affected.

But these are not the only disasters of last year, data compiled by the C.R.E.D. showed that landslides and floods last summer in China caused $18 billion in losses. A persistent drought, described as the worst in a century, effected 50 million people in southern, southwestern, and central China from January through April.

In 2010, the storms, earthquakes, heat waves and cold snaps affected 207 million people and killed 296,800, according to C.R.E.D. data.

The Arctic ice sheet has shrunk to one of the smallest ever. During the summer of 2010, the Arctic ice shrunk at the fastest rate ever measured, or more than 50 percent faster than average. The last four years (2007-2010) are the four smallest Arctic ice sheets on record. Environmentalists have warned that the melting Greenland ice sheet will raise sea levels 23 feet.

A report by the United Nations Environment Programme (UNEP) titled “High mountain glaciers and climate change,” states that glaciers in the Himalayas, the Tibetan Plateau and many others are melting quickly, threatening lives by flooding, and by reducing the supply of freshwater. The Himalayan glaciers alone are the main freshwater source for hundreds of millions of people across several countries.

A study in the journal Nature Geoscience indicates that sea level will rise this century due to melting glaciers, particularly those in the Alps and New Zealand which are expected to lose more than 70 percent of their ice by 2100.

Floods are likely to occur more often as a result of climate change and people will be directly affected because so many live in urban areas that are vulnerable to landslides and floods.

There has also been major flooding across a third of Sri Lanka, destroying 21 percent of the nation's staple rice crop and raising fears of food inflation. Freak floods also wreaked havoc in Saudi Arabia and Yemen.

Flash flooding in Brazil has killed at least 62 people early in 2011 and in 2010, the Amazon River fell to its lowest level in more than a century. At their point of confluence, the Amazon's depth fell more than 12 feet below its average and in October the Amazon was the shallowest it has been since records began over one hundred years ago. Local authorities reported that nearly half of Amazonia's 62 municipalities declared a state of emergency. The drought conditions affected more than 60,000 families.

Although Australia is know for its extreme climate including droughts, the massive floods that hit four Australian states in December 2010 and January 2011 are the costliest natural disaster ever. Australia's flooding has devastated an area the size of Germany and France and killed dozens. The estimated cost of rebuilding in the state of Queensland alone stands at A$10 billion ($9.8 billion).

The economic costs extend well beyond rebuilding. Central bank board member Warwick McKibbin warned that if lost production and infrastructure destruction were taken into account, the Queensland floods could cut 1 percent off growth, equal to almost $13 billion. Some early forecasts suggest that Australia's economic growth for the current quarter could be cut in half. JP Morgan said Australia's inflation risk had intensified due to the post-flood rebuilding programs.

The state of Queensland is the world's biggest exporter of coal used in steel-making and with the vast majority of its coal mines under water, steel making throughout Asia is being affected. Some analysts are predicting that coal prices could almost double.

Flooding also drives up food prices. The United Nation's Food and Agriculture Organization said global food prices reached their highest levels since its records began in 1990 and grain prices could climb further due to adverse weather patterns around the world.

Food inflation is a corollary of climate change that can be expected to intensify. There are additional costs associated with the instability that higher food prices auger. This was evident during the 2008 food crisis when soaring prices sparked riots, caused inflation and even led to trade deficits in some countries.

Extreme weather also affects those who can least afford it. According to a study by scientists at the University of California, Santa Barbara, the frequent droughts which have plagued Eastern Africa for much of the past two decades are likely to continue as long as global temperatures continue to increase.

The Indian Ocean is getting warmer inducing more frequent rainfalls over the ocean and less over land. Such a scenario is expected to pose increased risk to approximately 17.5 million people in Kenya, Ethiopia and Somalia, countries with chronic food shortages. The study indicates that the majority of warming in the ocean is caused by human activities such as greenhouse gases.

We are witnessing an ever increasing number of extreme weather events and we are increasingly aware of the significant costs that are associated with them. We have not even mentioned the costs to low-lying countries from rising sea levels which could entirely consume places like Tuvulu and the Seychelles. Rising sea levels are already eroding coastlines in places like Egypt.

Climate change can manifest in paradoxical forms, from shrinking Arctic ice sheets to dust storms in Iraq. When dealing with interrelated ecosystems, it is hard to precisely predict the costs of eco-degradation. There are incalculable costs associated with ocean acidification that imperils the base of the seafood chain, or extreme storms that create climate refugees. Suffice to say, the costs of climate change are staggering, particularly if you try to quantify scientific predictions that 20 percent of all living species will be driven toward extinction by mid-century.

Without significant investments in mitigation and prevention, extreme weather events like draughts, floods, and storms will continue to increase around the globe, ravaging economies and threatening billions of people.


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Government Incentives are Growing Renewable Energy

The evidence indicates that government investments have significantly helped the US renewable energy market. The American Recovery and Reinvestment Act (ARRA) of 2009 provided $94.8 billion for clean energy. The program was established under section 1603 of ARRA, and provided cash grants covering 10% or 30% of the total cost of developing new renewable energy facilities.

ARRA investments also funded research projects to develop next generation renewable energy technologies. These types of innovations create a cost competitive alternative to dirty sources of electricity while simultaneously creating long-term economic growth.

Due in large part to ARRA, the renewable energy industry survived the worst financial crisis in decades and is making significant progress toward attaining its goal of doubling renewable generation capacity over two years.

According to Gisela Kroess, a director at UniCredit SpA (UCG.MI), "[ARRA incentives have] spurred a lot of the growth we've seen," she said at a renewable-energy finance conference.

Despite Republican opposition, the US Department of the Treasury's 1603 cash grant program for the solar and wind industries was extended through 2011 as an add-on to the 2010 Tax Relief bill. The extension provides incentives so that developers of new solar and wind farms will continue investing in new projects beyond those already slated for construction.

ARRA Report Card: Two Years Later, is the latest industry study from market research publisher SBI Energy, it examines the ARRA clean energy investments and their impact on the various clean energy markets within the power, transportation, and building sectors.

Solar Energy

The report card indicates that according to forecasts from the Council of Economic Advisors (CEA), ARRA investments will help the domestic manufacturing capacity for solar photovoltaic (PV) modules to grow from less than 1 GW per year in 2008 to nearly 4 GW per year in 2012. Solar EnergyARRA investments are also accelerating the rate of innovation in solar photovoltaics and will drive down the costs of solar panels over the next five years by as much as 50 percent. According to the Solar Energy Industries Association, ARRA has supported more than 1,100 solar projects in 42 states, creating enough new solar capacity to power 200,000 homes. ARRA has resulted in nearly 40 percent growth in the solar power market in 2009 and nearly double in 2010.

Wind Energy

Despite weak economic and investment conditions, US wind power capacity grew 40 percent in 2009 compared to 2008. In July 2010, the CEA reported that ARRA was responsible for approximately 6 GW of wind capacity installation that might not otherwise have occurred in 2009.

Geothermal Energy

An April 2010 U.S. Geothermal Energy Association (GEA) survey indicated a 26% increase in new projects under development in 2009 and concludes that the stimulus funding played an important role in propelling geothermal growth amidst recessionary economic conditions.

Combined Renewable Energy

The Energy Information Administration (EIA) estimates that US renewable generation capacity will increase 32 percent more than without ARRA, reaching 155 GW in 2015.

The results of this report card clearly indicate that government investment has significantly increased America's renewable generation capacity.


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