Global Warming Policy Forum | 8 Oct 2014
Green Energy Policy May Trigger Mass Exodus Of EU Industry, Experts Warn
With only three weeks to go before the European Council is to make a final decision on new climate goals for 2030, six Central and Eastern European countries have declared their opposition to the proposed targets. In March and June, the European Council failed to agree on the commission’s proposal. When the EU government leaders meet again on 23 and 24 October in Brussels, they hope to reach a “final decision on the new climate and energy policy framework”. However, the ministers and deputy ministers for environment of six Central and Eastern European countries, declared on Tuesday (September 30) their opposition to binding targets for renewable energy and energy efficiency. –Peter Teffer, EUobserver, 2 October 2014
Polish Prime Minister Ewa Kopacz says she has told the European Council president in Brussels that Poland would not accept new EU climate change policies if they cause a rise in energy prices. Speaking after a meeting with Herman van Rompuy during her first trip abroad as prime minister of Poland, Ewa Kopacz told journalists that during the talks on Monday she laid out the “expectations of the Polish government at the European Council meeting [on 23 October]”. Last week PM Kopacz said that Poland could use a veto on any proposal that would cause electricity prices to rise for consumers. —Polish Radio, 7 October 2014
A European Union plan to label tar sands oil as highly polluting in its fight against climate change has been abandoned after years of opposition led by major producer Canada. A proposal published by the European Commission on Tuesday removes an obstacle to Canada exporting tar sands crude to Europe and comes at a time when tensions between the EU and top oil supplier Russia are running high. Environmental campaigners and Green politicians criticized what they saw as a step backwards. Greenpeace accused the European Commission under outgoing President Jose Manuel Barroso of putting trade ahead of the environment. –Barbara Lewis, Reuters, 7 October 2014
Brussels must consider fundamental energy policy changes to prevent a mass exodus of industrial players, according to speakers at a conference held at London’s Chatham House on Monday. European industry has suffered recently in comparison with the United States, where energy-intensive players have benefited from rock-bottom gas prices as a result of the North American shale gas revolution.
Some companies are suffering as a result of EU policy. German chemicals company BASF – which traditionally invests two thirds of its expenditure in its home country – recently said it would be investing more outside Germany than domestically over the next five years. “Europe should be asking itself serious questions about the viability of its manufacturing base as the foundation of that base continues to erode,” another speaker said under the Chatham House rule. –Tom Hoskyns, Interfax Natural Gas Daily, 6 October 2014
A new report from the European Commission has found that 14 European Union member states will fail to meet their 20% renewable energy target by 2020 based on current progress. According to Keep on Track!, “in order for Member States to achieve their 2020 target, it is essential that a predictable and stable legislative framework for RES is ensured at the national level and, in particular, that any retrospective or retroactive changes to existing support schemes are avoided.” This “predictable and stable legislative framework” is exactly what is causing some countries — such as the UK and France — into this position where they may miss their targets. –Joshua Hill, Clean Technica, 7 October 2014
Rich nations have been warned that unless they cough up for the Green Climate Fund by December, chances of a UN climate deal in 2015 will be dead. The 54-strong Africa Group wants to see US$ 7 billion by the time the next round of international climate talks start in Lima later this year, according to Tosi Mpanu Mpanu an envoy from the Democratic Republic of Congo. “If that key is not turned, we believe we will not turn the Paris key,” he told RTCC on the sidelines of a climate conference in Marrakech, Morocco. In 2009 wealthy countries promised to deliver $100 billion a year by 2020, a large chunk of which was to be channeled through the GCF. But so far a fraction of that has been delivered. –Sophie Yeo, Responding to Climate Change, 8 October 2014
Could India soon overtake China as the world’s biggest consumer of seaborne thermal coal? For many miners and traders, the answer to that question, posed at the Financial Times’ inaugural Commodities Retreat in Singapore last week, is yes.
India’s rising demand is in sharp contrast to that of China, where the authorities in Beijing are attempting to reduce imports of thermal coal. Although China is the world’s largest producer of thermal coal, it has imported large quantities of the combustible rock since 2009 to meet surging domestic demand. One footnote is that India could overtake China next year if only standard grades of thermal coal – bituminous and sub bituminous types – are counted. –Neil Hume, Financial Times, 7 October 2014
1) Central & Eastern European Nations Oppose EU Climate Goals – EUobserver, 2 October 2014
2) Poland Draws Red Line On EU Climate Targets – Polish Radio, 7 October 2014
3) EU’s Green Energy Policy May Trigger Mass Exodus Of Industry, Experts Warn – Interfax Natural Gas Daily, 6 October 2014
4) Europe Abandons Battle Against Canadian Tar Sands Oil: Green Lobby Defeated Over Energy Security Concerns – Reuters, 7 October 2014
5) Surprise, Surprise: Britain & 13 Other EU Member States Will Miss 2020 Targets – Clean Technica, 7 October 2014
6) African Countries Demand $7 Billion For Climate Fund By December – Responding to Climate Change, 8 October 2014
7) Reality Check: Indian Coal Import Growth Outstrips China – Financial Times, 7 October 2014
1) Central & Eastern European Nations Oppose EU Climate Goals
EUobserver, 2 October 2014
Peter Teffer
BRUSSELS – With only three weeks to go before the European Council is to make a final decision on new climate goals for 2030, six Central and Eastern European countries have declared their opposition to the proposed targets.
In an effort to limit global warming to no more than 2 degrees Celsius, the European Commission proposed in January 2014 several targets for 2030.
Greenhouse gas emissions should be 40 percent lower; the market share of renewable energy should be 27 percent and energy efficiency should be improved by 30 percent.
In March and June, the European Council failed to agree on the commission’s proposal. When the EU government leaders meet again on 23 and 24 October in Brussels, they hope to reach a “final decision on the new climate and energy policy framework”.
However, the ministers and deputy ministers for environment of six Central and Eastern European countries, declared on Tuesday (September 30) their opposition to binding targets for renewable energy and energy efficiency.
The six countries are the Czech Republic, Slovakia, Hungary, Poland, Bulgaria and Romania.
The six ask for a framework that “reflects different regional needs and circumstances”. The energy mix differs greatly among member states and reaching the targets will be easier for some than others. […]
A group of 13 mostly western and northern European states, called the Green Growth Group, is in favour of a binding greenhouse gas target of 40 percent for member states.
But in March it said the “Council should agree on a binding EU renewables energy target which should not be translated into binding national targets by the EU, leaving greater flexibility for Member States to develop their own renewable energy strategies.”
Green Growth Group Ministers’ statement on climate and energy framework for 2030
Joint Statement of Ministers of the Environment of the Visegrad Group and Bulgaria and Romania (pdf)
2) Poland Draws Red Line On EU Climate Targets
Polish Radio, 7 October 2014
Polish Prime Minister Ewa Kopacz says she has told the European Council president in Brussels that Poland would not accept new EU climate change policies if they cause a rise in energy prices.
Speaking after a meeting with Herman van Rompuy during her first trip abroad as prime minister of Poland, Ewa Kopacz told journalists that during the talks on Monday she laid out the “expectations of the Polish government at the European Council meeting [on 23 October]”.
The October summit will try and reach a consensus on CO2 emissions policy ahead of next year’s UN Climate Change Conference in Paris.
In July, the European Commission proposed reducing the EU’s energy use by 30 percent by 2030, though individual member states would be able to decide whether to opt in to the targets.
Last week PM Kopacz said that Poland could use a veto on any proposal that would cause electricity prices to rise for consumers.
“Poles will not lose out when it comes to electricity prices,” she said in Brussels.
Poland has an economy heavily dependant on coal, the consumption of which increased last year.
Ewa Kopacz, who took over as head of the Polish government after the resignation of Donald Tusk in September – before he takes over from Herman Van Rompuy as president of the European Council in December – also had talks with president of the European Parliament Martin Schulz in Brussels on Monday.
3) EU’s Green Energy Policy May Trigger Mass Exodus Of Industry, Experts Warn
Interfax Natural Gas Daily, 6 October 2014
Tom Hoskyns
Brussels must consider fundamental energy policy changes to prevent a mass exodus of industrial players, according to speakers at a conference held at London’s Chatham House on Monday.
Rob Franklin, president of gas and power marketing at ExxonMobil, criticised EU energy policy implemented in recent years, which he noted favoured an overly interventionist approach by governments.
“The most effective energy policies are the ones that are transparent, predictable and based on cost benefit analysis. Importantly, policies [should] allow market prices and open competition to determine the solutions,” said Franklin.
“The EU’s policy approach, which has favoured government-mandated solutions, has undermined the goals themselves,” Franklin added.
European industry has suffered recently in comparison with the United States, where energy-intensive players have benefited from rock-bottom gas prices as a result of the North American shale gas revolution. While it remains to be seen whether Europe can make full use of its shale resource, it seems likely the impact from domestic production will be slight.
Some companies are suffering as a result of EU policy. German chemicals company BASF – which traditionally invests two thirds of its expenditure in its home country – recently said it would be investing more outside Germany than domestically over the next five years.
“Europe should be asking itself serious questions about the viability of its manufacturing base as the foundation of that base continues to erode,” another speaker said under the Chatham House rule.
4) Europe Abandons Battle Against Canadian Tar Sands Oil: Green Lobby Defeated Over Energy Security Concerns
Reuters, 7 October 2014
Barbara Lewis
A European Union plan to label tar sands oil as highly polluting in its fight against climate change has been abandoned after years of opposition led by major producer Canada.
A proposal published by the European Commission on Tuesday removes an obstacle to Canada exporting tar sands crude to Europe and comes at a time when tensions between the EU and top oil supplier Russia are running high.
EU sources, speaking on condition of anonymity, said the desire for a trade deal with Canada had been a factor given the situation with Moscow.
Confirming a draft seen by Reuters in June, the proposal requires refiners to report an average emissions value of the feedstock used in the products they produce, dropping a requirement to single out tar sands content. […]
“The Commission is today giving this another push, to try and ensure that in the future, there will be a methodology and thus an incentive to choose less-polluting fuels over more polluting ones like, for example, oil sands,” EU Climate Commissioner Connie Hedegaard said.
Environmental campaigners and Green politicians criticized what they saw as a step backwards. Greenpeace accused the European Commission under outgoing President Jose Manuel Barroso of putting trade ahead of the environment.
5) Surprise, Surprise: Britain & 13 Other EU Member States Will Miss 2020 Targets
Clean Technica, 7 October 2014
Joshua Hill
A new report from the European Commission has found that 14 European Union member states will fail to meet their 20% renewable energy target by 2020 based on current progress.
The EU Tracking Roadmap released by the Keep on Track! monitoring body warned that Belgium, the Czech Republic, Spain, France, Greece, Hungary, Luxembourg, Latvia, Malta, the Netherlands, Poland, Portugal, Slovenia, and the UK are all likely to miss their 2020 renewable energy targets.
There is uncertainty that Germany, Finland, Ireland, and Slovakia will make their targets, while predictions show Austria, Bulgaria, Cyprus, Denmark, Estonia, Italy, Latvia, Romania, and Sweden will all comfortably hit their targets by 2020.
According to Keep on Track!, “in order for Member States to achieve their 2020 target, it is essential that a predictable and stable legislative framework for RES is ensured at the national level and, in particular, that any retrospective or retroactive changes to existing support schemes are avoided.”
This “predictable and stable legislative framework” is exactly what is causing some countries — such as the UK and France — into this position where they may miss their targets. Lack of governmental support and outright governmental interference has created investor uncertainty in a number of countries, causing the industry to falter.
6) African Countries Demand $7 Billion For Climate Fund By December
Responding to Climate Change, 8 October 2014
Sophie Yeo
Rich nations have been warned that unless they cough up for the Green Climate Fund by December, chances of a UN climate deal in 2015 will be dead.
The 54-strong Africa Group wants to see US$ 7 billion by the time the next round of international climate talks start in Lima later this year, according to Tosi Mpanu Mpanu an envoy from the Democratic Republic of Congo.
“If that key is not turned, we believe we will not turn the Paris key,” he told RTCC on the sidelines of a climate conference in Marrakech, Morocco.
Mpanu Mpanu added that US$10 bn, a target set by GCF chief Hela Cheikhrouhou, was a “realistic” assessment of what they hoped to see by Lima.
In 2009 wealthy countries promised to deliver $100 billion a year by 2020, a large chunk of which was to be channeled through the GCF. But so far a fraction of that has been delivered.
7) Reality Check: Indian Coal Import Growth Outstrips China
Financial Times, 7 October 2014
Neil Hume
Could India soon overtake China as the world’s biggest consumer of seaborne thermal coal?
For many miners and traders, the answer to that question, posed at the Financial Times’ inaugural Commodities Retreat in Singapore last week, is yes.
In the wake of adverse legal rulings – the Supreme Court recently cancelled more than 200 coal licences held by dozens of private sector groups – miners and traders are tipping strong import growth from India.
They say domestic supply growth is weak and unlikely to improve in the foreseeable future because of bureaucratic and infrastructure challenges.
Glencore, the world’s largest producer of high quality thermal coal, told analysts on a recent site visit that it expects Indian annual imports to rise from 150m tonnes, to 180m tonnes in 2015 and 300m tonnes by 2020.
While that forecast is at the bullish end of market forecasts, few believe India’s heavily regulated mining sector will be able to dig up enough coal to satisfy local demand.
Slack demand, supply growth and a stronger US dollar have combined to drive the price of thermal coal lower. Benchmark Australia coal, for example, has fallen 20 per cent this year to around $656 a tonne. Yet it is also an increasingly scarce commodity with stocks at their lowest level since 2008.
But imports are starting to fill the gap. The latest port data shows that India imported 12.7m tonnes of thermal coal in August, up 22 per cent year on year. Analysts reckon there could be further growth between now and the end of the year. […]
India’s rising demand is in sharp contrast to that of China, where the authorities in Beijing are attempting to reduce imports of thermal coal. Although China is the world’s largest producer of thermal coal, it has imported large quantities of the combustible rock since 2009 to meet surging domestic demand.
One footnote is that India could overtake China next year if only standard grades of thermal coal – bituminous and sub bituminous types – are counted.
