Saturday 1 November 2014

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Words of praise and criticism to Poland

Posted by on 18/09/14

First a few words of credit to Poland. During my work with evaluation and auditing in DG Enlargement, I visited Poland a few times before its accession to EU. Later on, after turning to public administration reform, I had the opportunity to attend a EUPAN conference in Krakow during the Polish presidency. It was always a pleasure to discuss EU issues with our colleagues from Poland.

Another credit I want to give to Poland is inspired by my heritage trip last August. I visited Krakow, Lublin and Zamosc. Overall it was impressing to witness how Poland is preserving Jewish synagogues and cemeteries who were destroyed by Nazi-Germany during the Holocaust.

In the past it might have been Jews abroad who initiated and funded such restorations. Now very often the initiative comes locally, from town and villages where no Jews are left, and with funding from EU, other international aid programs, and national co-financing. The sites are visited by Polish tourist groups and visitors from other countries. This work can stand as a model for other EU member states.

The way how Poland is restoring or even recreating and reliving, Jewish sites – take e.g. the former Jewish quarter Kazimierz in Krakow – pays tribute to its effort to overcome past prejudices. It also contributes to a historic reconciliation between two nations who were living side by side for hundreds of years.

So why complain? Today’s article in EurActiv (18.9) on the use of EU funds for energy renewal in Poland seems to require a response by both Poland and the European Commission. According to the reports quoted by EurActiv, Poland is using billions of euros from EU carbon credits and emission allowances on coal plants and the budget deficit.

The intention was of course to support Poland in diversifying its energy mix, increase its use of renewable energy sources and reduce its carbon emission. How is this possible? Obviously because of Poland’s current reliance on coal fueled power plants and its reluctance to change course.

But it was perhaps made possible by the lenient rules in the relevant regulations and agreements which according to EurActiv are not legally binding or written in the form of recommendations.

EurActiv also writes that “the decision to bolster Poland’s dominant coal industry at the expense of other energy sources and to cut the country’s deficit budget rather than invest in cleaner energy was made under Tusk’s watch.”

The Polish prime minister was recently elected to next president of the European Council. In his first press conference (EurActiv 3/9), he referred to other sources of energy: “This is a very important moment because I’m convinced that my legacy, my personal experience and our European dreams can become an important source of energy.”

True but don’t forget the energy sources which are fuelling our power plants, warming our buildings and driving our transport means. The challenges of climate change are enormous.

Interview with Mr Abdullayev, President of SOCAR

Posted by on 16/09/14

The President of the State Oil Company of Azerbaijan Republic (SOCAR), Mr Rovnag Ibrahim Abdullayev, discussed with Dimitris Rapidis, Director and Project Coordinator at  Bridging Europe, on a string of issues ranging from energy supply and production, regional cooperation, ongoing and forthcoming projects and partnerships, to the risks of climate change, corporate social responsibility, and the special relationship with Greece as the linking corridor towards the expansion of the company in the Western Mediterranean Basin and the European Union.

*The interview was first published by Bridging Europe. It is republished here.

What is the positioning of SOCAR in the global energy run in terms of production and supply?

Let me first share the vision of SOCAR with you. SOCAR aims to become a vertically integrated international energy company resting upon advanced experience on operation efficiency, social and environmental responsibility, and so far has undertaken major steps to  strengthen its international presence both in terms of energy production and supply.

SOCAR positions itself as a reliable energy partner of Europe. We truly believe that diversification of energy supply is one of the most important topics of today’s energy policy of the European Union, and SOCAR is here to support its European partners.

From historical perspective, the Caspian region always has been and is again re-shaping itself as a hub for global energy supply. SOCAR is currently working on development of a number of upstream and midstream projects together with 25 global companies, which are involved in oil and gas projects in the Caspian region.

Being one of the major players in the industry in the region SOCAR is seeking to raise its own gas production from new fields it is exploring in the Caspian Sea. SOCAR hopes to see its gas production soar in the coming years as production capacity is expanded at existing fields and new ones are discovered and brought into production. Most of the gas produced is likely to be exported to consumers in Europe via forthcoming TANAP and TAP pipelines.

The formation of export routes was crucial for exporting our hydrocarbon potential to the global markets, with the large-scale production of oil and gas only possible once the BTC oil pipeline and SCP gas pipeline had been commissioned. The pace of the next phase of SOCAR’s output growth is to be set by the construction of export routes, especially TANAP and TAP pipelines that will carry the gas produced from Shah Deniz 2.

Which are SOCAR’s existing and forthcoming projects?

Today, SOCAR is actively involved in several significant projects both in a regional and in an international context. In these projects we closely cooperate with well-known global companies and highly experienced teams. Currently OGPC (Oil and Gas Processing Complex) is considered as the largest downstream project of SOCAR in Azerbaijan, which is of strategic importance. The construction of the Complex includes an Oil Refinery with around 9 m. tons, a Gas Refinery with 12 billion bcm capacities and a Petrochemical Plant. The Complex is planned to be fully operated in 2020.

The President Aliyev signed a decree in February establishing a closed joint-stock company (CJSC) for effective management of projects within the second phase of Shah Deniz gas and condensate field’s development, expansion of the South Caucasus Pipeline, Trans-Anatolian Gas Pipeline (TANAP) and Trans Adriatic Pipeline (TAP). The gas which will be produced at the second stage of Azerbaijan’s Shah Deniz field development will be the main source of the Southern Gas Corridor, which envisages the transportation of the Caspian gas to European markets.

In addition to the main projects developed by SOCAR, there is a number of projects and business activities run by our daughter companies in Europe as well as in UAE and Singapore. Fuel retail networks in Georgia, Ukraine, Romania and Switzerland together with the infrastructure projects in UAE, Turkey and Georgia are amongst the most notable ones.

As an example of the diverse nature of projects run by SOCAR’s foreign subsidiaries we can mention “PETKIM Value-Site 2023 Refinery-Petrochemicals-Energy-Logistics Integration” project in Turkey. The project implies construction of a brand new Star refinery, new petrochemical plant facilities, STEP energy plant and Petkim Container Port in Turkey.

Another significant project is the recent acquisition of Greek Natural Gas Transmission system Operator (DESFA). This is work in progress at the moment as this asset provides an excellent diversification opportunity for SOCAR’s investment portfolio.

What is the goal of SOCAR’s Summer School

As part of talent acquisition strategy to develop and attract young professionals to oil and gas sector each year SOCAR purposefully launches sets of diversified projects. Summer School Project initiated by SOCAR since 2010, is one of the decisive activities respectively serving the mission of attracting young, potential and competent students, and retaining young professionals already working at different divisions of SOCAR, through creating deep understanding of SOCAR’s culture and activities both in domestic and international markets. As was clearly mentioned, the program has been launched since 2010, and year by year, every possible development is implemented to make program more comprehensive and useful for the participants. The project is based upon prearranged program, which covers all the chains of energy sector, starting from geology and geophysics of oil and gas wells, and continuing with drilling, production, transportation, refining of produced oil and gas.

The last but not the least, during the program the participants gain deep information on the sales and marketing of produced oil and gas products. It is worth noting that the program is not restricted only to lectures, but also excursions to different production units of SOCAR are organized in accordance with the topic of the day. Overall, the project has substantial positive outcomes in staff development and recruitment strategies of SOCAR.

Baku High Oil School

On 29th of November 2014, the Baku High Oil School was established under the aegis of SOCAR. The Baku High Oil School signed a cooperation agreement with Heriot-Vatt University of the United Kingdom with the purpose of specialists training under a Bachelor Degree Program in the fields of oil and gas engineering and chemical engineering. Since its establishment Baku High Oil School has managed to create modern infrastructure, to form professional administrative and academic personnel.

This higher education institution continues to successfully expand its international ties and attract advanced educational programs and technologies widely applied in Western countries. In the short run, it is expected that the Baku High Oil School will be able to train highly educated in-house specialists who will make their valuable impact in country’s dynamically developing industry and contribute to effective implementation of SOCAR projects both inside and outside of our country.

Baku French Lyceum

The Baku French Lyceum (“BFL”) was established in accordance with an agreement on establishment and activity of the Baku French Lyceum signed between the governments of the Republic of Azerbaijan and the Republic of France on 07.10.2011. BFL commenced its activity on 15.09.2013. Currently 120 children attend kindergarten and school functioning under the lyceum. A supreme governing body of BFL is a Management Committee. The Management Committee consists of 4 persons representing the Heydar Aliyev Foundation, the Ministry of Education of the Republic of Azerbaijan, the Embassy of the Republic of France in Azerbaijan and SOCAR, by one representative from each organization. The Principal of the school and main teachers are citizens of France. Lessons are held in accordance with curriculum of international french schools with observance of requirements of the Law on Education of the Republic of Azerbaijan.

What do you expect from the 2nd SOCAR Oil and Gas Processing and Petrochemical Complex Forum (OGPC) held in November 2014?

SOCAR OGPC Forum is designed to provide a detailed presentation of the new Oil and Gas Processing and Petrochemical Complex (OGPC) to be constructed by SOCAR. In April 2012, we organized the first forum devoted to SOCAR’s Oil-Gas Processing and Petrochemical Complex Project. During that Forum, the extensive discussions and productive meetings   have greatly benefited to both SOCAR and other participants of the event. Over two years after the first Forum, the OGPC activities have advanced considerably. Now, we are completing the FEED for the Gas Processing Plant and passing to EPC tendering. The works on the Petrochemical Plant will run in parallel. We have also completed the OGPC constructability study and other site surveys. At the same time, the FEED for utilities and off-sites and conceptual design for off-plot facilities has been carried out. As you see, the Project is now passing to a more significant phase. We are receiving more and more requests from various companies to organize another forum, which would help companies to obtain sufficient information about current stage of the Project and discuss the possibilities of further cooperation. That is why we decided to organize the second OGPC Forum, which we hope will help to establish close connections and promote cooperation and discussions on Project related issues at one single platform between potential stakeholders such as engineering companies, EPC contractors, licensors, manufacturers, vendors, service providers etc. We believe this event will play a crucial role in the future sustainable development of the Project.

In November 2014, the 2nd SOCAR OGPC Forum will be organized in Fairmont Hotel located in Flame Towers complex in Baku. Let me use this opportunity to invite our Greek colleagues to visit us in Baku in November!

How are you dealing with the climate change problem and environmental advocacy?

First of all, I would like to note that the dealing with climate change is an ethical issue for us and SOCAR has been taking regular actions to deal with climate changes. Moreover, we actively work with a variety of international institutions on climate change.

After Azerbaijan Republic ratified UN “Framework Convention on Climate Changes” and SOCAR enhanced its financial capabilities, it has started to pay more attention to enforcement of global ecological conventions and ecological issues in all company premises.

In 2008 SOCAR approved its Ecological Policy and actions were taken in the same year to enforce Framework Convention on Climate Changes.

It has been 7 years since SOCAR has been taking inventory of greenhouse gas (GHG). After inventorying process, steps were taken to conceive and implement new projects’ ideas regarding minimization of potential GHG emissions having adverse climatic effects. So accumulation and supply to consumers of associated gas produced with oil, substitution of old power-consuming equipment with modern power-saving equipment may be brought as examples. During these years to enforce these processes successful cooperation affairs have been established with the World Bank, GGFR, European Bank for Reconstruction and Development, Asian Bank of Development, companies from Germany, Norway, Japan and other countries. In frame of these cooperation activities such documents as “Plan on minimization of flue-gas emissions”, “Strategy for minimization of adverse effects of climatic changes” were developed.

Concurrently with the foregoing SOCAR also takes focus-oriented steps in other directions regarding environmental protection. Thus, in order to ensure ecological security, regular ecological monitorings are conducted at SOCAR in all offshore and onshore activities, including also oil-gas, petrochemical operations. Currently Environmental and Social impacts of SOCAR projects are assessed and preventive measures are being identified to minimize them. Mining sites traditionally polluted by oil and oil products are reclaimed and recovered to the natural-landscape design. Provisions were made to control in a closed system of produced waters extracted during the production on SOCAR oil-gas operation sites. Besides,  maintenance was provided on biological purification plants of all production facilities.

The discharges from vehicles globally along with other areas of industry also cause one of the most serious ecological problems.  Ecological impacts are crucial due to the growing number of vehicles in our country. In this regard, SOCAR Ecological Measuring Center conducts ecological diagnosis of vehicles.

One of the priority issues in SOCAR’s environmental protection activity is waste management. Work in this area is organized according to requirements of a Waste Management Plan approved by SOCAR. All types of industrial wastes generated at SOCAR facilities are taken over in Waste Management Center (WMC) being a part of a valid waste management system.

Expansion of plantation sites is one of the major directions of ecological policy in our Republic. SOCAR also contributes to planting activities implemented on a national scale. One of the essential environmental projects implemented by SOCAR was designing and constructing the Ecological Park. The main objective of laying out this Park was to create a contemporary form of society-environment relations, and to show that environmental propaganda, environmental upbringing and protection of the environment is a first priority duty of every citizen. It has been 3 years since SOCAR launched the project titled Eco-Park. As a result of the works performed in this scope, 574434 different types of trees-bushes and flowers were planted in an area of 400 ha. Ecological awareness and enlightening activities are implemented  in conformance with the SOCAR’s “Action Plan on Ecological Awareness”. In the frame of the plan, ecological days are celebrated at SOCAR enterprises and facilities, and cooperation with international ecology-oriented organizations is continuously broadening. In order to enhance environmental protection, to develop “approach to the environment with care” traditions and to educate the youth in the spirit of sensitive approach to the environment SOCAR expands its ecological awareness activity from year to year.

What are the major fields of involvement when addressing to corporate social responsibility (CSR)?

There are several key fields of the CSR in our day-to-day work and we think of corporate social responsibility across SOCAR in a strategic way.

Mainly, it is the idea of implementation of sustainable solutions in all areas of our operation. This implies working on strategy to improve working conditions, to integrate labour standards into our business practice, to monitor our facilities, and to collaborate with our partners in order to drive industry-wide change.

The next level concentrates on our employees and on making SOCAR a place where people can build their careers in a positive work environment. Particularly on this point, SOCAR has been a pioneer in developing various activities on employees’ health and labour safety in accordance with the requirements of Single management system for labour protection in the Azerbaijani oil industry.

Another key field in corporate social responsibility for us is the environment. For instance, SOCAR developed its own “Waste Management Plan” in order to ensure that the systems designed to manage waste, generated at our facilities work efficiently and that collection, sorting out, transportation, utilization of waste is conducted in line with the industry practice. Also, Environmental Department regularly carries out the quantitative and qualitative monitoring of harmful wastes in gaseous, liquid and solid forms emitted to the atmosphere as a result of natural and anthropogenic impacts at enterprises and companies subordinated to SOCAR.

Our CSR policy does not stop here of course, there are number of other projects that SOCAR is involved in, however I am afraid that we will need to have another interview to discuss them all.

What is SOCAR’s involvement in Greece? Do you perceive the country as a strategic partner for your company’s expansion in the West?

As you may be aware, SOCAR has been selected as the preferred bidder in the DESFA privatisation process that is still in progress and that is expected to be finalised within the course of coming months. DESFA is SOCAR’s first project of this scale in the European Union and we are very happy to collaborate with our Greek partners towards the success of it. Furthermore, Greece is one of the “TAP countries” and it certainly plays a central role in realisation of the TAP project.

As a result of our increasing activity in Greece, it was decided to open the country office in Athens so that we have our permanent presence in the country as well as in the region. Now, when SOCAR Energy Greece S.A. has been fully established it shall be much easier for us to manage our relationship with our existing counterparts and look at further business opportunities in Greece.

Indeed, Greece is a good friend and a reliable strategic partner of Azerbaijan. Perhaps, one of the most significant indicators of the friendship between our countries is the fact that our collaboration is not limited to the oil and gas industry and that it had constantly evolved during the past years. I believe that the relationship and the economic cooperation between our countries will grow even stronger in the future. I think that numerous official meetings of the Azerbaijani and Greek leadership and the recent official visit of the President Aliyev to Athens only support my point of view.

What is the company’s project plan for energy supply in the EU?

At the times when Europe needs reliable suppliers, supply from SOCAR and Azerbaijan is viewed as a part of Europe’s strategic goals. The challenges to security of supply could be political, technical or even due to extreme weather and demand. I would like to stress that SOCAR met its supply demands during the harsh winter of 2012 due to its storage facilities and strong commitment to meet its contractual obligations. Recently, SOCAR has engaged in expansion of its storage facilities in order to continue to be a reliable supplier.

Instead of selling to regional markets, SOCAR decided to embark on a chain of mega project to export gas to Europe: a chain that crosses 7 countries, deals with six regulatory systems, involves 12 investing companies, includes 12 gas buyers and requires 45 billion USD of investments. By the way, this chain of projects is called the Southern Gas Corridor, or shortly SGC. The mega project will be able to facilitate the transportation of gas not only from Azerbaijan but also from Central Asia and Middle-East countries. The pipeline is being built with the potential to double the capacity and can be scaled up to 30 bcm/a. This is the first project in decades to introduce new gas supplies into Europe rather than simply re-routing existing supplies, thus diversifying sources.

As we plan, the first gas explored from the second stage of the Shah Deniz field will be delivered to Turkey through TANAP in 2018 and then to Europe through TAP in 2019. Today successful execution of these projects is of top priority for SOCAR. The Southern Gas Corridor will be a strong catalyst for interconnectors across Southern Europe, while the TAP section will be able to connect Caspian gas to multiple European markets. In addition, there are signs of strong commercial interests in adding a component of the project into the Balkans.

Sustainable energy means business in the Port of Amsterdam

Posted by on 15/09/14

Profitability and sustainability go hand in hand with the Amsterdam Investment Fund; a network of financing tools that is propelling the city towards energy transition.

Four years ago, Amsterdam chose to sell its shares in NUON, a former local utility company. Its next move would change the future of the city and produce a paradigm-shifting contribution to European sustainability efforts. The city dedicated €75 million of the NUON sale earnings to perpetuating a cycle of lowering CO2 and increasing energy efficiency. To do so it devised a powerful financing instrument – the Amsterdam Investment Fund (AIF).

The Amsterdam Energy Strategy

The realities of climate change and resource depletion are an immediate concern for the Netherlands. The country is at high risk from floods resulting from global warming, and natural gas resources are expected to expire in approximately ten years. The Netherlands is facing these challenges head-on with a plan that places the capital at the centre of rapid energy transition for the whole country. The Amsterdam Energy Strategy 2040 is an ambitious, realistic and absolutely necessary plan to achieve a 40% reduction in CO2 emissions between 1990 and 2025, a 75% reduction by 2040, and ultimate independence from fossil fuels. According to this strategy, Amsterdam must strive to make the city sustainable in every way – it must become financially sustainable as well as energy independent. This will ‘require new forms of cooperation.’

‘If we want to achieve our goal,’ says AIF founding fund manager, Maarten van Casteren, ‘We need to mobilise the whole city.’ This year, the fund has won a place among finalists for the City Climate Leadership Award for its role in generating the contribution of citizens, building owners, housing corporations, schools and SMEs in this drive towards sustainability.

Multiplication through know-how

‘When we established the fund a lot was already happening in the city without government involvement,’ says Casteren, ‘but they had trouble getting started. Residents were more focussed on lowering their energy bills, but funding was not available from the market.’

Lack of initial cash-flow is often a key barrier to sustainable initiatives seeking bank loans or investments. ‘The AIF helps them with technical knowledge and funding from the very early stage,’ explains Casteren. The fund does not offer subsidies, but soft loans and equity deals for viable projects. The loans can be repaid through the savings or profits generated by increased energy efficiency. The technical and economic feasibility of projects is ensured before the loans are made, thus making AIF-approved projects more attractive to other investors.

Built to last

The structure of the AIF is characterised by a rigorous rating system based on economic returns as well as qualitative assessment criteria: innovation, duplication, diversification and visibility. Its success in generating both sustainable energy solutions and a healthy fund lies in the complex interaction of different financing strategies aimed at different target groups. The fund dedicates 20% to social returns, and 80% to commercial ones. Large scale, high-interest commercial investments generate the profit to fund smaller scale social investments with low or zero interest rates. All projects require a minimum outcome of at least 45kg of CO2 savings per project euro invested and commercial investments require a minimal return of 7.5% per annum so that the sum can be reinvested. ‘The fund has to revolve,’ explains Casteren, ‘because it must stay intact over several years.’

Mobilising the city

‘The public response to the fund has been very good,’ says Casteren, ‘We invested a total of EUR 22 million in less than a year for over 40 projects, varying from large scale commercial projects to solar panels for a sports club.’ All of these projects are led by citizens wanting to contribute to an energy efficient future.

New business models

Earlier this year, the AIF-funded Rockstart Smart Energy Programme received applications from start-ups in 39 different countries looking for support to get their ideas off the ground. Based on energy-efficiency potential and economic viability, ten of these companies were chosen and invited to Amsterdam to receive all the support that the programme could offer them. As well as a cash investment of €20,000, the young entrepreneurs were provided with office, legal and fiscal support, intensive coaching from 80 different mentors, and the opportunity to pitch their business in front of over 200 investors. In return for all of this, the fund owns an 8% share in each business.

Ideas range from simple but effective energy-awareness solutions like TheCityGame andGive O2 – apps designed to motivate and spread sustainable behaviour – to ambitious platforms like We Share Solar, which sets out to create a solar energy revolution.

Care to save wants to change attitudes to energy by educating the next generation, ‘often it is they who educate parents,’ says founder, Andrily Shmyhelskyy. But great intentions alone would not create a viable business. That is where Rockstart came in, ‘The mentoring helped us a lot to understand how the market works and how to manufacture this product. The programme allowed us to assess the market and learn how to develop our business.’

‘Accelerating start-ups is key to the global energy transition,’ says Marcel Peters, CEO and founder of another chosen business, Bundles, ‘It is of course mostly about technological innovations, but without changing business models the adoption of these technologies will not prosper. Creating a new business model is 1000 times easier for a start-up than for an existing company…’

After the huge success of this first edition, the 2015 Rockstart Acceleration Programme is already underway, with applications flooding in from all over the world.

Energy means business

Last October, the AIF used €45 million to create The Amsterdam Climate and Energy Fund (AKEF). The fund is dedicated to commercial projects with commercial interest rates. The Energy Research Centre of the Netherlands (ECN) helps to evaluate investment applications in terms of sustainability, energy conservation and technical feasibility, and all investments must actively lower CO 2 emissions. E3 , a consortium of business, climate and energy experts, ensures financial returns in line with the prevailing market, and manages the fund according to the mandate of the AIF. ‘This allows them to act swiftly and smoothly in the market place,’ explains Casteren, ‘operating under investment rules, and taking business decisions without political influence.’

In its first year, AKEF has helped to bring about OrangeGas gas stations, where vehicles can be refuelled using gas made from biological waste and sewage sludge. By providing the Ajax Football Stadium with an initial investment of 1.6 million, AKEF is also behind the installation of a 4,200 solar panels on the roof of the stadium, bringing the Amsterdam Arena closer to the goals of its exciting sustainability project, Amsterdam ArenA. Naturally sustainable. It is not only the profits of this investment that will lead to changes in Amsterdam; the high-visibility solar roof has provoked competition with other buildings vying for the title of largest solar roof in the city, thus fuelling the sustainability drive in the city.

Braving the future

Already the AIF has a direct impact on global energy transition, actively sharing information and best practices with other global cities through its participation in the C40 Sustainable Infrastructure Finance Network. ‘There is a change in approaching sustainable projects from a business perspective,’ says Casteren. Revolving loans are keeping the wheels turning for perpetual energy improvements in Amsterdam, and the approach may have the potential to accelerate the energy transition elsewhere in Europe in preparation for 2020.

Next year holds exciting and challenging developments for the city: only climate-neutral buildings will be constructed from 2015; electric transport will be further increased to 40,000 electric vehicles; and the city aims to make solar energy cost-effective for businesses. These changes will require the support of businesses and citizens, innovative technology and the clever use of funds, and the Amsterdam Investment Fund is there to help it happen.

FURTHER INFORMATION

Read more about the Amsterdam Climate and Energy Fund

Read more about the role of the ECN in the fund

Click here to view last year’s exciting Rockstart demo day!

Europa nicht mehr auf Gaskurs?

Posted by on 15/09/14

Seit einigen Tagen verzeichnen europäische Energie-Unternehmen rückläufige Gaslieferungen aus Putins Reich. Kaum vorstellbar, dass dafür allein technische Probleme verantwortlich sein sollen. Vielmehr liegt nahe, dass die Russen gerade ihre Folterwerkzeuge zeigen. Sie müssen die Gaslieferungen ja nicht ganz einstellen. Eine reduzierte Lieferung über ein paar Wochen hinweg dürfte reichen, um die Europäer nervös zu machen. Russland kann die EU auch treffen, indem es den Import von Konsumgütern beschränkt. So wie die Dinge liegen, könnte sich aus dem politischen Konflikt schon recht bald auch ein Handelskrieg entwickeln.

Merging energy and climate change services under one Commissioner is an overdue change

Posted by on 10/09/14

The division of Commission services into one dealing with energy policy and another one with climate change policy has always been an artificial one: to influence climate change policy makers have to rely on energy policy.

It is therefore positive to recombine the two sides of the coin under a single command and put an end to internal disputes and overlapping created during the past 10 years.

European energy policy must serve foremost the interest of European citizens with energy security and sustainability of supply being the overwhelming targets.

But in a global and long-term perspective, European energy policy must also take climate developments into account. That is why it makes sense to aim at abolishing C02 emissions by the middle of century, which implies phasing out fossil energies, enhancing energy efficiency and switching to renewable energies and completing the network of long-distance power transmission and low-cost power storage .

A single command structure should therefore make the EU more effective. It will become operational just in time for the two main issues the EU will be confronted with very shortly: reducing the dependency on Russia as the single most important supplier of energy and contributing to a successful outcome of the climate conference in Paris in late 2015.

Eberhard Rhein, Brussels, 10/9/2014

UK Conservatives shouldn’t abandon the green agenda

Posted by on 09/09/14

Whitehouse Consultancy Director Carl Thomson argues that the UK Conservative Party should continue to support investment in renewable energy in an article for the Huffington Post.

To read Carl’s article, please click here.

The Whitehouse Consultancy is one of Europe’s public affairs and communications agencies.

Energy security: a global perspective

Posted by on 02/09/14
By Adam Czyzewski The Ministry of Economy has put out for initial public consultation a draft of the Polish Energy Policy until 2050. As could be expected given the current tensions between the EU, US and Russia, Poland’s energy security topped the triad of sustainable growth objectives. But how to define 'energy security'?

Australia’s energy policy volte-face is inadmissible

Posted by on 02/09/14

Mr. Abbot`s new liberal-conservative government has been elected on the promise to abolish the carbon tax on mining, coal power and air transport companies introduced by his predecessor to contain excessively high Australian green house gas emissions. As of first July 2014 the carbon tax has been formally repealed.

The new government claims that electricity and gas prices have thereby been reduced by 9 and 7 per cent respectively and that the measure will boost economic growth.

The previous targets of reducing C02 emissions by 5 per cent until 2020 over 2000 and producing one fifth of its energy from renewable sources, especially wind and solar for which Australia has big potentials, by 2020 seem in shambles together with the institutional and regulatory frameworks that have been put in place over the years.

The coal mining industry and big business have been the driving forces behind this scandalous policy turnabout in one of the most affluent and green house gas emitter countries on earth! With 17 tons C02 emissions per capita emissions, more than twice the EU average, Australia ranks among the 12 most polluting countries on earth!

The dramatic policy shift happens at the very moment when major countries and civil society will meet in New York at the invitation of the UN Secretary General to discuss solutions for the International Climate Compact to be finalised in Paris in December 2015.

The time has come to seriously think about “outlawing” countries which flatly refuse to make any contributions to Humanity’s most pressing challenge: contain temperature increase to less than two centigrade. Australia should become, jointly with Russia and Qatar, one of the first countries to be put on a black list of outlawed countries.

Let us hope that under domestic and international pressure the next government will rethink its strategy, the more so as Australia will be suffer very badly from creeping climate change.

Eberhard Rhein, Brussels, 27/8/2014

Is Merkel playing into Putin’s hands?

Posted by on 02/09/14

The crisis in Ukraine is exacerbating. With more than 5000 Russian soldiers on the Ukrainian territory, with the latest equipment, we can literary talk about an invasion.

Vladimir Putin’s main target is to rebuild of the Soviet space; this space included two NATO- member- states: Latvia and Estonia. Putin will not stop here but will go further, beyond Ukraine.

This situation resembles the one in 1939 when nobody believed in the risk of a war, but in just a couple of months Poland was split.

Targeted as the next on the list, the Baltic States, Poland and Romania, ask for a firm reaction and military aid to Ukraine. The experience of these states in the last 20 years of relations with the Russians space makes them more realistic. From Berlin, Rome or Paris things seem more distant.

The main goal of Vladimir Putin is to discreet NATO and USA as the main guarantees of the Western security.  Once done the world status-quo will tear apart and the Russian Federation will regain its role as unique power.

Analysts also take into consideration the possibility that Russia will use some narrow and precise nuclear strikes in the South-Eastern Europe. The goal is just to intimidate and force NATO to … not to react. The presumed targets could be Latvia, Estonia and even Poland. Point 5 in the NATO Treaty asks for a united military reaction, but at this moment Germany seems far from being ready for such an action. 7 out of 10 Germans believe their country should not intervene if the Russian Federation attacks Estonia, and the fault lies to the German politicians headed by Angela Merkel, who did not prepare the civil society for such a process.

As it is known that Angela Merkel was a USSR agent, a close friend to Vladimir Putin, I wonder if we do not deal with a premeditated infiltration at a high level in the most powerful NATO European state. What if in these moments the politics of Berlin is not made at Berlin but at Moscow, and Putin’s confidence starts from this point?

My accusations are sincere when I see how Merkel doesn’t make NATO politics but the one of Putin. If we speak of an already occupied German, as was the case of Ukraine through its former president Yanukovych? What does the civil society in Germany do, the opinion shapers, where is the pressure from bottom to top? Has the social responsibility disappeared, the political factors are no longer supervised? We speak of a totalitarian regime in an acceptable form.

Russia will send more troops in Ukraine and only a moral support from NATO states, if not NATO itself, can block the Russian expansion. Otherwise, as was the case of Hitler, they will go further just because nobody opposes them and because they can do it.

Vladimir Putin mentioned that the Ukrainians and the Russians are the some people, the Soviet one most probable. In this case the Dugin-Putin doctrine speaks about the right of the people over the individual right, thus about the restoration of a consecrate space. In such conditions the threat goes to the Baltic States, the Republic of Moldova and Georgia, other states being already included in the Soviet space.

It is just a matter of time before Russia goes further, while NATO is dysfunctional.

P.S. I wonder now, who was behind the increase in Germany’s energy dependence on Russian gas, by reduction of nuclear energy?

 

L’éolien soulagé : les vents contraires épargnent le ministère de l’Écologie

Posted by on 01/09/14

Après le grand chambardement ministériel, les professionnels de l’énergie peuvent souffler. Ségolène Royal, dont l’omniprésence a été particulièrement appréciée depuis son entrée en fonction par les professionnels de l’énergie, reste ministre de l’Écologie. Mais ils ne devraient pas être les seuls à se réjouir. De celle qui porte la loi sur la transition énergétique dépend aussi l’avenir économique du pays, le secteur des énergies renouvelables étant susceptible de créer des emplois par centaine de milliers.

« Nous sommes satisfaits du projet actuel et rassurés que Ségolène Royal continue à le porter » a fait savoir, visiblement soulagé, Frédéric Lanoë, Président de France Energie Éolienne (FEE), syndicat professionnel de l’éolien. Le syndicat des énergies renouvelables (SER) n’est pas moins enthousiaste. Ainsi, « le calendrier parlementaire, notamment celui de la loi de transition énergétique, et les grandes orientations qui doivent guider l’avenir des énergies renouvelables devraient être confirmés et l’action en leur faveur poursuivie » a fait savoir le SER.

France Énergie éolienne a également rappelé « la nécessité de faire de la transition énergétique et de la croissance verte deux priorités du nouveau gouvernement », et en a profité pour renouveler sa proposition de pacte industriel pour favoriser l’emploi. L’éolien constitue en effet une voie de réindustrialisation encore sous-exploitée et toutes les parties prenantes de la dynamique énergétique, les industriels et le Gouvernement ont intérêt à orienter ensemble leurs efforts vers la recherche, l’innovation, l’investissement et l’emploi.

L’éolien et les énergies renouvelables : un vivier d’emploi

Et pour cause, le secteur énergétique est le 3e secteur industriel français en termes d’emplois directs après l’automobile et l’aéronautique. Face aux derniers chiffres du chômage tombés le 27 août, il devient urgent de passer de l’intention à l’action. Après huit mois de hausse consécutifs, les chiffres dévoilés par Pôle emploi continuent de surprendre : si la hausse était de 0,3 % en juin, elle est de 0,8 % en juillet 2014.

Rien qu’EDF emploie 100 000 salariés en France et aura in fine recruté 6000 personnes en France fin 2014. Outre la production et l’ingénierie, le recrutement concerne aussi les nouveaux métiers liés aux énergies renouvelables, sachant que l’électricien est premier Européen des ENR et que les énergies renouvelables font partie intégrante de sa stratégie de développement. À titre d’exemple, en France, les 5 unités de production hydraulique et les 2 unités d’ingénierie emploient 4700 collaboratrices et collaborateurs qui assurent la gestion de 439 centrales hydrauliques.

La transition énergétique peut compter sur EDF a fait comprendre Henri Proglio

L’entreprise a déjà fait part de son soutien à la transition énergétique par la voix de son PDG. Si Henri Proglio n’a pas explicitement commenté le remaniement ministériel, il a en revanche salué le texte au moment de sa présentation en Conseil des ministres, jugeant dans une déclaration écrite à l’AFP qu’il était « équilibré » puisqu’il « n’oppose pas les énergies, mais souligne leur complémentarité ». Il continuera de le faire s’il est réélu à la tête de l’entreprise, son mandat arrivant à son terme en novembre 2014.

Dans les faits, EDF continue de développer la filière éolienne (terrestre et en mer), en France comme à l’international. Jeudi 28 août, elle a d’ailleurs officiellement annoncé la mise en service de trois parcs éoliens d’une puissance totale de 34,7 mégawatts dans la région Languedoc Roussillon. À l’international, cette filière représente déjà 87 % de son activité.

Une mobilisation générale pour des centaines de milliers d’emplois supplémentaires

Ce n’est pas uniquement à l’échelle d’EDF que la mutation doit s’engager. La transition énergétique exige de la part des particuliers et des entreprises le changement de nos modes de consommation vers davantage de sobriété et d’efficacité. Autrement dit, cela ne va pas sans le développement des énergies décarbonées que sont les énergies renouvelables et dont la France dispose en abondance. Cela ne va pas non plus sans la rénovation des bâtiments, la production de matériaux ou encore l’intelligence des réseaux. Autant de chantiers qui nécessitent de la main-d’œuvre.

Une étude du CirED-Cnrs1 analysant le contenu du scénario NégaWatt en emplois directs et indirects a estimé précisément pour chaque secteur les créations et les suppressions d’emplois. Ses conclusions sont plus qu’encourageantes étant donné que d’ici à 2030 la transition telle qu’elle est proposée est susceptible de produire 632 000 emplois de plus que si la France persévérait dans sa politique énergétique actuelle. Les emplois créés dans la production, le transport et la distribution d’énergie seront plus nombreux que les emplois détruits.

Mieux encore, une autre étude réalisée par l’OFCE (Office Français des Conjonctures Économiques) et l’ADEME, bien que basant ses calculs sur une méthodologie différente, aboutit à une estimation confirmant la première. Elle conclut en effet à 745 000 emplois en 2050 avec le scénario négaWatt, et même à 825 000 avec le scénario « média » de l’ADEME.

Outre la baisse du chômage, cette étude anticipe une forte réduction de la dette publique et une balance commerciale sortant du rouge avant 2050. En outre, les ménages verraient considérablement réduire leur facture énergétique et pourraient profiter d’un revenu brut disponible supérieur. Tout ceci donne plutôt envie d’accélérer le mouvement, à l’échelle individuelle et collective.

Oil prices are down. What is going to happen next?

Posted by on 29/08/14

June 19th saw the price of Brent crude rise to a one-year high of USD 116 per barrel. A week later, the price began to drop, eventually reaching its lowest since April last year, at slightly below USD 102 on August 19th.And all of this in a time when armed conflicts, which are far from being resolved, ravage Ukraine, Iraq, Libya and Syria, while tensions between Russia, the European Union and the United States are second only to those at the time of the Cold War. The wars have caused oil supply from North Africa and the Middle East to shrink by more than 3 million barrels a day. Our safety cushion, Saudi Arabia’s untapped reserves, is slowly becoming dangerously slim, currently offering a daily capacity of 3.2 million barrels – 700,000 above the lower end of the market’s comfort zone. What is going to happen next?

It is much easier to explain what has already happened. Markets are driven by expectations, which are in turn formed based on past events and experiences. Underpinning the process is uncertainty, which in the case of such unique events as geopolitical conflicts is very high, although not so high as to deprive us of the expectations through which we perceive real-world developments. Let us then look at the oil market as it was seen in May, before crude prices began to rise. Late-May projections indicated that Brent prices were to decline gradually in 2014 and 2015, down to the region of one hundred dollars per barrel, and that this would happen amid considerable price volatility. The decline seemed likely considering that solid supply growth in the US and Canada, unfettered by geopolitical risks, was alone sufficient to meet the anticipated increase in global demand.

However, the balance between oil supply and demand was maintained, albeit only with a relatively thin safety cushion formed by Saudi Arabia’s crude reserves. The 700,000 barrels a day separating the market from its comfort zone could soon be in jeopardy if active conflicts were to escalate or new ones erupt. Any such event, which could occur in a multitude of possible locations, would send oil prices rocketing. Although the forecasts I saw in May predicted that the supply of crude oil from Libya and Nigeria (and to a lesser extent from Venezuela) would continue to decline, they also projected a significant surge in oil production in Iraq, Kuwait and, to a lesser degree, the United Arab Emirates. The conflict in Ukraine and the sanctions imposed on Russia were both taken into account as risk factors affecting future oil supplies. However, the projections concerning the oil balance in 2014–2015 did not factor in reduced production.

This time, the drop happened in Iraq, a key player on the global oil market. OPEC’s second largest oil producer (at some 3.3 million barrels a day), Iraq is also among the world’s top potential oil suppliers in terms of available reserves. When the Islamic State of Iraq and Syria (ISIS) carried out its offensive in northern Iraq in June, capturing the provinces of Nineveh and Saladin and their capitals of Mosul and Tikrit, panic spread through various markets, including that of crude oil. Prices went up.

The fear premium on crude is typically at its highest at the start of a conflict. If supplies remain uninterrupted, as was the case here, the market eventually diversifies, forming different perceptions as to a conflict’s potential developments and possible hedging strategies. When on June 29th ISIS announced the formation of the ‘Islamic State’ caliphate in the area controlled by the group, concerns that the conflict would spread to southern Iraq, where current production is based, temporarily abated and the oil price began to drop.

On the top of these circumstances, a rare situation could be observed last week when all available information favoured a decline in prices. The American Energy Information Administration agency (EIA) reported that the production of oil from unconventional deposits (tight oil) in the US was higher than expected, with individual well efficiency above projected values. At the same time, the agency adjusted its demand growth forecasts for 2014 and 2015 downward, anticipating a global economic slowdown. EIA projections were consistent with Europe’s estimated GDP growth figures published at that time, which turned out lower than originally forecast. Iraq’s production prospects also improved when Nouri al-Maliki stepped down as Prime Minister, thus removing the risk of a coup from the equation.

What is going to happen next? There is no good answer to that question as it is difficult to foresee how today’s conflicts will develop. What the recent situation in Iraq has shown us is that the risk premium on Brent crude anticipated in May’s projections was too low and that we should expect higher prices in 2014 and 2015.

Although Ukraine and Syria produce little oil, the effect of armed conflicts ravaging the two countries extends far beyond their geographical borders. Sanctions imposed in connection with the Ukrainian crisis will affect future oil supplies from Russia. Hampered access to Western technologies and capital will delay production from difficult and expensive oil deposits indefinitely, which will likely result in reduced production from 2016 on. At the same time, the war in Syria has set off intense hostilities in Iraq, prompting the United States to become involved again. Libya is in a state of complete anarchy. At 1.45 million barrels in 2012, the country’s daily oil production has now halved and is likely to fall to zero. The Israeli-Palestine conflict is yet another potential source of trouble.

However, with the crude oil supply from the US increasing, there is also some good news. Rising dynamically since 2008, the country’s oil production has already more than offset the slumps in North Africa and the Middle East, ensuring relative tranquillity on the oil market. Compared to May’s forecasts, the US is now projected to produce an additional 300,000–400,000 barrels of oil a day in 2014 and 2015. In combination with global oil demand forecasts adjusted down by some 200,000 barrels a day, the new figures somewhat improve the global oil balance. In these circumstances, the price of Brent crude may stay in the region of one hundred dollars per barrel for some time or even drop below that threshold if oil prices prove especially volatile. Will this happen? Only time will tell.

 

 

 

 

Europäisches Kartell

Posted by on 24/07/14

“Die EU-Kommission setzt auf Energieverschwendung” – das vernichtende Urteil der DENEF(Deutsche Unternehmensinitiative Energie-Effizienz) ist berechtigt… Statt um 40% will die Kommission den Energieverbrauch bis 2030 lediglich um 30% senken, und das nicht einmal für alle Mitgliedsstaaten verbindlich… Dass die EU-Kommission in derselben Sitzung die Reform des deutschen EEG durchwinkt, ist mehr als nur ein Zufall. Denn beide Entscheidungen hängen eng miteinander zusammen und sind getragen von demselben rückwärtsgewandten Geist.

Im Interesse des alten nuklear-fossilen Energiekartells und der eng mit ihm verbunden energie-intensiven Industrie werden die für die gesamte Gesellschaft so wichtigen und übergeordneten Ziele einer vernünftigen Energiepolitik über Bord geworfen, vom Klimaschutz über die Verringerung der Abhängigkeit von Energie-Importen bis hin zur Senkung der stetig wachsenden Kosten für die EU-Energie-Importe…

Dabei war Deutschland auf einem guten Weg: Mit der Energiewende wurde vorgemacht, wie Effizienz, Ausbau der Erneuerbaren und Reduzierung des CO2-Ausstoßes wirtschaftlich zu schaffen sind. Doch Gabriel und Oettinger praktizieren offenbar auch auf EU-Ebene und in Sachen Energie die Große Koalition: Der deutsche Energieminister hebelt das EEG aus und sorgt für weiterhin großzügige Strompreisrabatte, ausgerechnet für die größten Stromfresser, und Oettinger sorgt dafür, dass der Druck zur Energie-Effizienz aus Brüssel nicht zu groß wird.

Das Ergebnis: Mit den niedrigsten Industriestrompreisen seit 2005 sinkt die Bereitschaft der Unternehmen für Investitionen in Energie-Effizienzmaßnahmen nahezu auf Null – und nebenbei freuen sich RWE., E.ON & Co., weil gerade diese Stromfresser zu ihren wichtigsten Kunden zählen.

So schließt sich der Kreis: Energiepolitik hat eben leider auch im Jahr 2014, auch in Zeiten von Klimawandel, Energiewende, Ukraine-Krise und schwindenden Ölreserven nur begrenzt etwas mit Vernunft, dafür aber umso mehr mit Interessen, Macht und Geld zu tun.

27% ≠ 27% ≠ a good idea

Posted by on 17/07/14

By Adam White, Research Coordinator at WWF European Policy Office’s Climate and Energy Unit

The worst form of inequality is to try to make unequal things equal.

- Aristotle

When it comes to European targets for greenhouse gas emissions, renewable energy, and energy efficiency, every percentage point is closely modelled and examined.  The esoteric target of 27% renewable energy is the product of European Commission analysis on contributions to reach the (inadequate) 40% emissions cut by 2030.

A separate review of Energy Efficiency, still in draft form, looked at energy savings of up to 40%, as called for by Parliament and NGOs, and while it did examine 28%, 30 and 35%, found greater benefits to the higher end.

Unfortunately, such dedicated number gazing sometimes clashes with politics, or circumstance, or – as in the case of the 2030 energy efficiency target – both.

The higher energy efficiency numbers are intimidating to a Commission that’s afraid of doing battle with difficult Member States, and contradict its earlier 2030 framework review (the one done prior to the recognition by all concerned that efficiency is crucial to energy security).

Never fear, because some Commissioners have cooked up a solution: simply ‘match’ the efficiency target to the renewables target – 27%/27%. Neat and parallel (and more than an echo of Commissioner Oettinger’s earlier 30/30/30 rhetoric).  Sadly, it is just not as simple as that.  However similar the numbers seem on paper – in reality they mean very different things.

The renewables target applies to the share of final energy use – the proportion of renewable energy we get when we switch on lights.  On the other hand, the efficiency target applies to cuts in primary energy use below a baseline projection – so it reflects the reduction in the amount of fuel used in the EU compared to expectations absent the applicable policy.

These are completely different notions. 27% in no way equals 27%.

The renewable energy target and the efficiency target interact in complex ways.  You can reduce the EU’s consumption of fuel, and therefore help to meet the efficiency target, by increasing renewable energy.  This is because renewable energy technologies convert their energy inputs (sun, wind) more efficiently than traditional power plants convert coal and gas into electricity.  The converse is also true, you can help meet the renewables target by boosting efficiency, since the less total energy you use, the easier it is for a higher proportion of that total to be met by renewables.

These are all considerations that the number crunchers pay close attention to, but which their bosses seem willing to overlook in the interests of symmetry and expediency.  And like a heart bypass candidate who can’t resist another double cheese hamburger, the Commission has decided to ignore the consequences of their bad decision: a 27% energy efficiency target actually represents a slowdown of current efforts, and would put in jeopardy the improved health and billions of euros saved every year that efficiency delivers.

Interesting how a Commission which is almost 70% male, and 100% white is apparently only interested in equality when it comes to plucking numbers out of the air.

 

A plea for a pragmatic approach to global climate policy

Posted by on 14/07/14

During the last 50 years global energy demand has risen at an unprecedented pace and is expected to continue rising further in the wake of growing world population and prosperity.

These trends are not sustainable. The energy resources (coal, oil, gas, uranium) are finite and burning them is bound to accelerate climate change to a point of no return destroying the basis of human livelihood.

Climate scientists and almost all governments on earth share this basic assessment. But while scientists urge for action to be taken politicians are wavering in the face of powerful fossil energy lobbies and industry pressing for low energy prices.

Fortunately, tenuous signs for a change are appearing in the two most polluting countries, China and USA, on which the success of any international action hinges.

China has placed the fight against energy waste, air pollution and climate change among the top priorities of its Five Year Plan 2011-15. It is determined to increase its overall energy efficiency; and it envisages stepping up research and pilot projects for carbon capture and storage which is vital for continuing to burn coal with which it is amply endowed. But though the government is to be congratulated for finally acknowledging the seriousness of climate change its actions continue to fall far short of what is needed. Chinese green house gas emissions will therefore keep rising for at least 20 more years.

USA, the second biggest emitter of GHG has made great strides under the Obama Administration, thanks to circumventing a hostile Congress by executive action in the form of technical standards. CO2 emissions have begun to fall from exorbitant levels of 17 tons/per capita, due to increasing switch from coal to gas as the major fuel in power generation and stringent fuel consumption standards for passenger cars.

Driven by concerns about their security of supply, both countries will press for higher energy efficiency, in particular in buildings, and more power generation through renewables – wind, sun, hydro and biomass. But neither is ambitious enough and postulate largely C02 free energy by the middle of the century.

Only the EU, the third biggest energy consumer and CO2 emitter, can so far boast of an established record against climate change. Until 2020 its CO2 emissions will be down by 20 per cent over 1990; and it is set to reduce them by 80-95 per cent until the middle of the century. No other country has so far announced similar ambitions. But with a share of only some 12 per cent of global emissions it does not carry enough weight for preserving the climate.

Both USA and EU owe their relative success to the setting of medium and long-term targets and taking concrete measures. That distinguishes their approach from the UN-directed efforts which continue to lack precision of the targets and fail to prescribe concrete measures. Moreover, there is no political drive without which policies cannot be conceived and implemented. This is normal for assemblies grouping some 200 states with totally different levels of energy consumption and representing fundamentally different views on the future.

In order to achieve a positive outcome from the decisive Paris Climate Conference in November 2015 participant countries need to change the modus operandi of their future negotiations. UN Secretary General Ban Ki Moon might have made a beginning by calling a restricted high-level meeting of heads of government from the main polluter countries at the margin of the September 2014 General Assembly.

To ensure a successful result in Paris the leaders of the countries responsible for 80 per cent of global emissions must agree on a cooperative strategy to keep global temperatures within a two degree Celsius rise over pre-industrial levels.

A group of climate and energy research institutes from 15 major emitter countries has translated the “two centigrade target” into the necessary reductions of green house gas emissions. The result will come as a shock for policy makers: average per capita green house gas emissions must not exceed 1.6 ton by the middle of the century. Only the poor, mostly African, countries can still indulge in rising emissions. Most other countries including EU, Japan, China and Russia will need to reduce them by around three quarters and some 20 countries like United Arab Emirates Canada, Australia, USA with very high per capita emissions by even 90 per cent until 2050.

This will be a huge challenge for every country and Humanity. It is therefore crucial to provide for an equitable burden sharing among Humanity, which per capita green house emissions, reflect better than any other yardstick.

At the Paris conference, the parties should focus on two conclusions:

  • All countries will reduce their green house gas emissions by 2050 to 1.6 tons per capita by 2050.
  • Countries emitting already more than seven tons per capita will present their strategy for implementation to the UN Secretary General for approval before 2020. Countries with per capita emissions of less than one ton can wait with presenting their climate strategy until 2030 or until exceeding a level of emissions of more than one ton.

The UN Secretary General will appoint a special representative for the preparations.

This procedure will replace the annual climate conferences, from which the necessary policy changes cannot emerge, due to increasing level of bureaucratisation, too many participants and lack of political commitment.

Future climate policy will be more differentiated by countries, and the UN should be empowered to fix policy guidelines and monitor implementation.

The following guidelines might inspire national and global policy makers:

  • All countries subsidising fossil fuels must phase these out by 2020. That process has started under the pressure from IEA and others.
  • All countries will have to invest heavily in much higher energy efficiency:
    • Thanks to perfect thermal insulation buildings must become autonomous from fossil energy.
    • The internal combustion engine must be replaced by battery-propelled electric engines, fed from renewable sources.
  • All countries must step up their recycling efforts, following the lead the by European Union
  • To slow down population growth and global energy demand developing countries must take appropriate measures and thereby contribute to the fight against climate change.
  • Countries with large forest areas must preserve these, which is vital for stabilising global environment and climate.
  • Countries in the solar belt must fully exploit their solar potential for electricity generation.
  • Countries like China, Russia, Australia and Canada that want to continue exploiting their huge coal or gas reserves must invest in carbon capture and storage.
  • Countries situated along the Seas must exploit their wind power potential and develop technologies for “harvesting” wave energies.

The World Bank, in conjunction with regional Development Banks must become the global financing and technical assistance agent for implementing the challenging structural changes towards a non-fossil society. To that end it should be in charge of managing the $ 100 billion annual International Climate Fund that the developed countries have pledged to establish by 2020.

Eberhard Rhein, Brussels, 12/7/2014

EU energy policy: It must be done right

Posted by on 14/07/14
Guest blogpost by Hans Martens Energy policy will be in the EU focus for the next five years – at least. However energy policy can take many shapes – from very green to very brown depending on the political choices. EU-leaders, it is now time to make the right choices and get on with the job.

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