carbon reduction initiatives

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The UK government announcement on incentives for small scale renewables has three unexpected features:

  • The payments for renewable heat, such as the home burning of wood to replace gas or rooftop solar hot water, are much higher than predicted.
  • The figures for wind have risen since the autumn consultation document. This means that well-located wind turbines of the 6-15 kW size are likely to produce returns above 13% per year.
  • The payments for solar PV have been increased slightly, but do not offer returns as good as wind. Importantly, the government has also signalled that it will allow PV installed at any time over the next 28 months to capture the full feed-in tariff. Previously, the tariff declined for installations made after March 2011.

An earlier article on this topic which looks in more detail on the incentives to take up the new ‘feed-in tariffs’ is here.

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Click here to read the reportThe UK is one of the least forested countries in Europe. Although the amount of woodland cover has increased substantially since its nadir after the First World War, growth has slackened in recent years. The growing maturity of UK woodlands means that carbon sequestration is falling rapidly. An independent assessment commissioned by the Forestry Commission has proposed one way forward: a million new hectares devoted to woodland, generating a reduction of up to 15% of the UK emissions in 2050.

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Tools for carefully estimating carbon footprints have tended to be difficult to use and clunky in appearance. Two recently introduced calculators make real improvements and allow individuals and companies to carry out effective analysis of carbon emissions.

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Light-bulb Libraries

UK supermarkets and DIY chains stock up to twenty different types of energy-efficient light bulbs but most households have some light fittings that cannot use any of these bulbs. There are several hundred different combinations of fitting, shape, and power. Some internet sites, such as www.lightbulbs-direct.com/article/energy-saving or www.gogreenlights.co.uk offer a very wide range of low-energy-use bulbs including many unusual types you cannot find in shops. One problem remains: it is not always possible to tell whether the bulb you see on a webpage will actually fit your lamp holder or whether it will be the correct brightness. Light-bulb Libaries may be the answer.

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Image source: Scientific American (courtesy of American Electric Power).

Image source: Scientific American (courtesy of American Electric Power).

Two pieces of news provide evidence of a fightback by coal. American Electric Power’s Mountaineer plant in West Virginia is reporting significant success for its small scale carbon capture project. And the UK has just licensed exploratory boreholes for offshore Underground Coal Gasification (UCG), a woefully under-researched technology that may make CO2 sequestration easier. The scale of the challenge facing the globe’s coal users is enormous but with determined research and development, the fuel may remain usable for power generation in a low-carbon world.

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Image source: Taiga Company.

Image source: Taiga Company.

1) If you buy just one new appliance in 2010, make it a really efficient fridge-freezer. The improvements in the energy use of the best fridge-freezers have been really impressive in the last few years. If you have an old refrigerator, it may be responsible for as much as a sixth of your electricity bill. A good new machine might use less than a half as much power, particularly if it is not too large. A second benefit is that by choosing to buy a really efficient refrigerator you will be sending a clear signal to the manufacturers that energy consumption matters. An impressive new web site – www.energytariff.co.uk – allows you to compare the electricity used by almost all the appliances currently in UK shops. You can make well-informed choices from your computer.

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Let’s face it: energy efficiency is boring when compared to the (relative) excitement of developing new sources of low-carbon electricity or heat. The popular science magazines are full of articles on new forms of solar panel and the latest designs for wind turbines. Improving the insulation of ordinary homes, shifting to LED lighting or increasing the take-up of heat pumps rarely command the attention of editors.

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The Maldives president Mohamed Nasheed stands in the sea off Kurumba to show the threat the islands face. Photograph: Chiara Goia. Source: Guardian.

The Maldives president Mohamed Nasheed stands in the sea off Kurumba to show the threat the islands face. Photograph: Chiara Goia. Source: Guardian.

Plans for a new windfarm are set to make the Maldives the country with the highest proportion of renewable power in the world.

The 30-turbine proposed windfarm, close to the capital Malé, will deliver 75 megawatts of electricity at full capacity, enough to provide electricity for the whole of the capital, the international airport and the surrounding resorts. Excess power will be used to run desalination plants that will produce bottled drinking water from the sea.

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Go green, go vegan

Lord Stern says the meat industry damages the environment. Image source: VirtualTourist.com

Lord Stern says the meat industry damages the environment. Image source: VirtualTourist.com

Clearly irritated that his argument in an interview in the Times had been boiled down to a ‘go veggie to save the planet’ headline, Nicholas Stern has issued a clarifying statement:

I think that once people understand the great risks that climate change poses, they will naturally want to choose products and services that cause little or no emissions of greenhouse gases, which means ‘low-carbon consumption’. This will apply across the board, including electricity, heating, transport and food. A diet that relies heavily on meat production results in higher emissions than a typical vegetarian diet. Different individuals will make different choices. However, the debate about climate change should not be dumbed down to a single slogan, such as ‘give up meat to save the planet’.

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Wittingly or unwittingly, many manufacturers make it difficult to compare the electricity consumption of home appliances such as TVs and refrigerators. Although many appliances have been through standard EU tests and then been awarded a letter grade for energy efficiency, these grades are increasingly unhelpful in distinguishing between the excellent and the merely satisfactory. As in British school exams, an A grade doesn’t mean much because it covers such as wide range of performance.

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10:10 campaign bracelets coming out of the machine that is recycling them from an old 747.

10:10 campaign bracelets coming out of the machine that is recycling them from an old 747.

10:10, a campaign to get individuals and organisations to reduce their emissions by 10% in 2010 is launched today, 1 September. The idea is simple and has proved surprisingly easy to communicate so far. Of course it has helped that the human tornado Franny Armstrong has been pushing it.

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15 kW Proven Energy wind turbine. Image credit: Aeolus Power.

15 kW Proven Energy wind turbine. Image credit: Aeolus Power.

This article refers to the UK proposals made in July 2009. The actual feed-in tariffs will be more generous and the new rates are discussed in a follow up article here.

After months of deliberation, the UK government has announced a range of illustrative figures for feed-in tariffs (FiTs). FiTs are fixed payments made to the owners of small generating stations for the electricity that they export to the grid. Micro-generators need high payments to justify their expensive investment in buying and installing green generation.

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Mitsubishi Ecodan. Image source: Ecodan Brochure.

Mitsubishi Ecodan. Image source: Ecodan brochure.

Small heat pumps are increasingly used to provide space and water heating in UK homes. This trend is strongly encouraged by policy-makers and the government’s proposed Renewable Heat Incentive will add further financial support. The enthusiasm for this expensive technology should be moderated: for a home on the mains gas network, the savings in money will be small. Carbon benefits are probable but far from guaranteed. Moreover, air source heat pumps are unlikely to be able to heat many older homes effectively. Government, manufacturers, and installers need to be very much more cautious in encouraging the use of heat pumps and should use far more conservative payback assumptions. Heat pumps will eventually be a good investment for homeowners but probably not yet.

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Most governments in the developed world were elected on platforms that promised aggressive policies on greenhouse gas emissions. The reality has not matched the commitments made. The reasons for this are multitudinous and no one should ever underestimate the difficulties of weaning advanced societies off the use of cheap and convenient access to fossil fuels. But in addition to the standard reasons for slow progress we can see a large number of obstacles that spring from human psychology. In particular, some of the resistance to aggressive action on climate seems to spring from mental attitudes that may have helped us survive as a species in the past. Perhaps politicians intuitively recognise the existence of these barriers. So they continue to say that climate change is the most important problem facing humanity at the same time as adding new runways to the local airport or sanctioning the development of new coal-fired power stations.

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Ed Miliband, Minister for the Department of Energy and Climate Change. Photograph: David Levene/Guardian.

Ed Miliband, Minister for the Department of Energy and Climate Change. Photograph: David Levene/Guardian.

The government wants to emphasise the affordability of climate change mitigation. It produces low estimates of the cost of low-carbon technologies. In the recent 2009 budget documents, the government estimated a cost of 1% of GDP to meet the tough new 2020 targets. In his pronouncement on carbon capture at coal-fired power stations, energy and climate change secretary Ed Miliband later said that his proposals will add 2% to electricity bills.

Are these numbers reasonable? Professor Sir David King, the former chief scientific adviser, says no. In a BBC interview of 26 April, he indicates that he thinks that the cost of reducing the UK’s emissions is much higher than the government indicates but also that the financial implications of not dealing with the climate change threat are far higher than even Nick Stern suggests.

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The Committee on Climate Change says the most important prospective source of cuts in greenhouse gases lay in the ‘decarbonisation’ of electricity generation. Photograph: Graham Turner/Guardian.

The Committee on Climate Change says the most important prospective source of cuts in greenhouse gases lay in the ‘decarbonisation’ of electricity generation. Photograph: Graham Turner/Guardian.

The budget confirmed the acceptance of the Committee on Climate Change’s recommendation for carbon emissions in 2020. The UK will have to reduce its CO2 output by about 110m tonnes by 2020, equivalent to a 21% reduction on actual emissions in 2005 (and 34% on the 1990 figure). The proposed rate of emissions reduction is far faster than the UK has achieved thus far and the chancellor’s budget shows the government has started to recognise the scale of the challenge.

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Image source: Smith Electric Vehicles.

Image source: Smith Electric Vehicles.

Gordon Brown says he wants two or three cities to trial electric vehicles before the end of next year. After many false dawns, are we finally about to see the era of the battery car?

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The tiny pores in a piece of biochar. Image source: BEST Energies.

The tiny pores in a piece of biochar. Image source: BEST Energies.

George Monbiot wrote about the carbonisation of organic matter in the Guardian last month (‘Woodchips with everything. It’s the Atkins plan of the low-carbon world’, Tuesday 24 March 2009), saying it was yet another miracle cure for the climate problem. And, like previous miracle cures, he said ‘biochar’ would turn out to be a dangerous delusion. It would deflect attention from taking real action on climate change. Parts of the planet would be turned into vast forest plantations with limited biodiversity to provide feedstock for huge factories. Vital food-growing land would be lost to vast corporations farming wood for turning into biochar. It is a re-run of the biofuels disaster, he said.

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The existing Kingsnorth power station. Image source: E.ON.

The existing Kingsnorth power station. Image source: E.ON.

E.ON’s £1bn plan for a new coal-fired power station at Kingsnorth is waiting for approval from the UK government. Other generators have shifted away from coal. Drax, which owns by far the largest coal power station in the UK, is investing in biomass. Other companies have focused on new gas plants. Why is the world’s largest investor-owned utility pushing ahead with a project to burn coal without carbon capture?

The answer, unsurprisingly, is that burning coal to generate electricity is extremely profitable. Very low prices for emissions permits and tumbling coal costs mean that a profit-seeking management team is highly incentivised to try to push for permission to use coal in power stations. This article provides the background calculations for an estimate that the new Kingsnorth will generate an operating profit of about £300m a year if current fuel and carbon prices persist. Additionally, it also tries to show that the cost of fitting CCS equipment and running the plant to capture the large majority of all carbon emissions is likely to add no more than about 1.5p per kilowatt hour to the cost of generating electricity at current coal and carbon prices. This means that a new coal fired power station with CCS may have operating costs only marginally above gas power plants

Nevertheless, E.ON has just asked for government subsidy to install CCS at Kingsnorth from day one. The purpose of this article is to offer an estimate of the maximum the government ought to offer E.ON in order to get it to invest in CCS prior to opening the new power station.

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The Maldives. Image source: Primetravels.com.

The Maldives. Image source: Primetravels.com.

The Maldives will be the first country to be overwhelmed by the effect of climate change. The republic is a collection of coral atolls with maximum heights of one or two metres above sea level. Climate change is increasing worldwide sea levels and the atolls will probably go underwater by the end of the century.

The 300,000-400,000 people who live on the Maldives are not responsible for global warming. Their emissions per head (even including aviation fuels for incoming international tourism) are less than a seventh of typical European levels.

Many countries have set ambitious targets for the reduction of carbon emissions. The government of the Maldives seeks to encourage this trend by going one step further with a plan for near carbon neutrality within ten years.

This is an immensely challenging target. Chris Goodall (author of this blog) and Mark Lynas, the prize-winning climate change author, were asked to provide a short outline of how it might be achieved and what it might cost.[1]

In the rest of this note, we show our calculations. We will be the first to acknowledge that this work is incomplete. Although it was tempting to conduct fieldwork in some of the most attractive island resorts, we did our analysis using publicly available information and with help from officials attached to the Maldives government.

Our work shows that near neutrality is possible, but expensive. It will take at least $1.1bn for this small island state. The Maldives imports almost all its fuels in the form of refined oil products. Rates of financial return to the investment therefore depend largely on the price of oil. If expectations of future oil prices exceed $100 a barrel, we judge that the plan is sufficiently attractive to be financeable by international institutions such as the World Bank.

Comments on this work will be very gratefully received.

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In today’s Independent newspaper (London, Monday 23 February) I argue that we may need to accept some new nuclear power stations. I put forward the view that the trench warfare between the pro-nuclear groups and those that support renewables means that progress towards ‘decarbonising’ electricity generation in the UK is too slow. We probably need to invest in many different types of non fossil-fuel generation as rapidly as we can if we are to meet the tough targets for UK emissions reduction so painfully won by groups such as Friends of the Earth. We no longer have the luxury of ruling out nuclear expansion.

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Photograph: Christopher Thomond. Source: Guardian.


The new Conservative policy document on energy is keen to emphasise how smart it is. At its core are proposals for smart meters, smart grids, and smart battery charging. The enthusiasm for these technologies is almost palpable. On one page, the word ’smart’ occurs eight times. But readers of the policy proposals are largely left in the dark about what all these intelligent devices will do. David Cameron’s comments about building ‘an electricity internet’ didn’t shed much light either.

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Vattenfall CCS power station

The Vattenfall CCS power station under construction at Schwarze Pumpe, Germany. The main power station can be seen in the background. Image credit: Vattenfall AB.


A powerful US coalition of large industrial companies, power producers, and environmental defence organisations has produced the first sensible plan for incentivising the early introduction of carbon capture at solid fuel electricity plants. The scheme proposed by the US Climate Action Partnership (USCAP) addresses the most important environmental issue in the world – the burning of coal to generate electricity – in a plausible and coherent way. Coal, which is almost exclusively burnt in power stations or in steel-making, is responsible for about 36% of US emissions. If we can find a way of cheaply capturing the CO2 from power stations and storing it underground, we can then also provide the technology to Chinese and Indian generators.

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Copyright: Michalis Palis - Fotolia.com
Copyright: Michalis Palis – Fotolia.com


Government officials are searching for policies that will meet the twin aims of providing jobs and meeting the UK’s climate change targets. It is proving a difficult task. The easiest ways of reducing fossil fuel use will probably not create many new jobs in the UK. All large wind turbines are built abroad and although the construction work on a nuclear power station will generate a few thousand jobs, most of the key components will need to come from Europe and Japan. So where are the opportunities? I think two major areas stand out as excellent ways of generating jobs quickly without also dragging in expensive imports or sharply raising prices.

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Copyright: Joe Gough – Fotolia.com.

The UK government’s enthusiasm for the construction of nuclear power stations is based on a May 2007 consultation document[1] published by the Department of Trade and Industry (now BERR). This paper argued that nuclear offered a financially viable way of generating electricity, broadly competitive with fossil fuels. It correctly pointed out that the cost of nuclear energy is largely determined by how much a plant costs to build, not by uranium prices or by the price of disposing of nuclear waste.

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Copyright: SyB - Fotolia.com
Copyright: SyB – Fotolia.com.

We didn’t make much progress reducing emissions when times were good. Will the looming depression makes things worse or better? The discussion of this issue, at least in the UK, tends to be superficial. The only question asked seems to be ‘will people buy less eco-bling when times are hard?’

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Renault’s Zoom concept electric car. Image source: Auto Express.

Most major countries in Europe have decided to focus on one or two technologies to reduce carbon emissions. By making concentrated investments in one or two promising areas these countries are likely to achieve substantial cost reductions and rapid increases in deployment. By contrast, the UK is dabbling ineffectually in several areas and achieving little. Despite having large resources of renewable energy sources, the UK’s effort is diffuse, trivial in scope and clearly insufficient. We have almost the lowest percentage of our energy coming from low-carbon sources in the EU.

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German house with solar panels
German house with solar panels. Image source: ecolectic.org.

As with other great popular causes, such as improving access to public libraries, reducing the use of plastic bags, and the protection of urban hedgehogs, everybody is in favour of ‘feed-in tariffs’ for renewable energy. Widely used in other parts of Europe, these tariffs guarantee a high price for every unit of electricity exported to the grid from very small generating stations. Put some solar panels on your roof in Germany and you get paid 40p for every kilowatt hour that you produce and don’t use yourself.

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Snakes

Draught-excluding snake
Draught-excluding snake. Image source: Together.com.

Together.com, the climate change campaigning organisation, has launched a new product for its annual campaign. It is promoting the traditional door ‘snake’ in its autumn publicity drive. Filled with insulating material, these colourful sausages stop heat leaving a warm room in winter through the gap at the bottom of the door. As part of the campaign, B&Q is selling snake-making kits for £1 on 20 October. National Trust properties are holding snake-making workshops over the half-term period.

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For once, the government has got its climate change policies right. The idea of a windfall tax on energy suppliers has widespread support. One hundred or so Labour MPs have come out in favour. Caroline Lucas, the newly elected leader of the Greens, has advocated such a policy and many Conservatives express private approval. The trade unions were infuriated by Alistair Darling’s refusal to back the proposal. Rather than backing a windfall tax, it looks like he favours plans that oblige the utilities to improve the energy efficiency of customers’ homes.

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Elizabeth Kolbert looked at the Swiss 2,000-Watt Society project in the New Yorker of 7 July. Her interviewees provided estimates of the energy use of the typical Swiss inhabitant. The figures added up to about 5,000 watts. To be clear, this means each person is responsible for about five kilowatts of continuous energy use. This includes home electricity and gas, personal transport, industry, and office. To keep us in the ease and comfort we have got used to we are consuming, directly and indirectly, enough energy to keep two electric kettles boiling continuously, or driving a fuel-efficient car four hours in every day.

This article looks at the composition of energy demand in the UK. The figures are then broken down by sector and by fuel. The numbers are used in the introduction to Ten Technologies to Save the Planet (Profile Books, November 2008), where I try to assess whether we are likely to be able to use technology to reduce fossil fuel demand substantially.

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BT low energy power supply phone
BT announced that it was bringing out a new range of home phones with much improved energy efficiency. The claim is that ‘the new handsets boast power units designed specifically to consume around half the power of previous units’. BT said that almost all its extensive home phone range would contain the new energy-saving technology by mid-2008. Its press release gave very precise figures for the amount of CO2 saved – comparing the savings if all home phones incorporated the new technology to taking ‘57,000 cars off the road for a year’.

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The Lighthouse by Potton
The Lighthouse by Potton

Carbon Commentary has visited two sites to look at the costs of building houses under the new rules (not yet mandatory) established by the Code for Sustainable Homes (CSH). By 2016, all new UK homes will have to have no net carbon emissions (‘Level 6’) and the implications for construction techniques are profound. Today, most homes are built to about Level 1, or possibly 2. To get to Level 6 will require huge changes in how houses are built, heated, and ventilated. And they will need expensive renewable energy technologies built into the home as well.

At Wimpey’s 145-home development in Milton Keynes, construction costs of houses at Level 3 are running at ‘100-110%’ more than standard. The self-build company Potton is offering a Level 6 design (one of the first in the UK) for an even more expensive £180 a square foot, up from about £75 for a standard Level 3 model. This takes the construction cost of a standard 1,000 sq ft (92 sq metre) home up from £75,000 to £180,000. Much of the increment comes from the need to install large amounts of renewable electricity generation. Some of the cost premium over today’s badly insulated homes will eventually erode as builders get better at building air-tight houses. But we shouldn’t be in any doubt about the huge implications of the CSH for builders, landowners, and buyers.

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Switchgrass biofuel crop
Switchgrass biofuel crop

Will next-generation biofuels have a less destructive effect on agriculture? A study just published by US government scientists suggests that so-called ‘cellulosic’ ethanol has much better energy balance than today’s biofuels.[1] By energy balance, we mean the energy used to make the fuel compared to its energy value when burnt in a car’s engine. News summaries of the paper’s contents focused on one estimate that suggested that to make cellulosic biofuels might only need 6% of the energy value contained in the fuel. Depending on which crop is used, where it is grown, and how it is refined, most of today’s biofuels have only a weakly positive energy balance. So the paper gives hope that we might expect considerable progress towards carbon-neutral transport fuels when we can start refining all vegetable matter, not just foodstuffs, into fuels.

Cellulosic biofuels may well become important sources of motor fuels. There is certainly huge amounts of money flowing into the field. Unfortunately none of the news articles covering the US research pointed out the technology for turning cellulose into fuel is still a long way from commercial viability. Yes, we can turn grass into ethanol, but at prices which will double the price of petrol. And the greenhouse gas savings will almost certainly not be as attractive as the paper suggests, not least because the authors did not include the serious impact of nitrous oxide emissions from fertilised fields.

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E.ON's planned Kingsnorth supercritical coal plant
E.ON’s planned Kingsnorth supercritical coal plant

E.ON’s plan to install supercritical coal-burning technology on its Kingsnorth site in Kent was (unsurprisingly) supported by the planning authority. A more interesting question is why E.ON persisted with the application in the first place. Even carbon efficient power stations emit far more carbon than gas plants. A high price of carbon would make the Kingsnorth coal plant uneconomic. The answer to the question must be that E.ON is confident that supercritical coal plants can be economically retrofitted with carbon capture technology (CCS). So even if the carbon price increases dramatically, coal will still be competitive.

E.ON’s US operation is closely aligned with the co-operative FutureGen venture, which plans to build a coal gasification plant in the US within five years. This power station will then capture CO2 and store it in sandstone. FutureGen gasification carbon capture technology is ‘pre-combustion’, unlike the ‘post-combustion’ focus in Europe. US electric utilities are now assuming that coal plants without CCS will not be allowed. But in both the US and Europe there seems to be a prevailing assumption that a $30 per tonne CO2 price is sufficient to cover the cost of CCS technology, meaning coal will eventually be back in the power station mix.

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The CBI brought out a report on climate change. It argues that the UK can achieve emissions reductions at a sufficiently rapid rate to meet the government’s old target of 60% cuts by 2050. The optimism is underpinned by McKinsey work that assesses 120 different options for reducing carbon dioxide, ranging from domestic solar panels to carbon capture. McKinsey assesses what carbon price is necessary to create the incentives for business and consumers to switch to using these technologies.

The McKinsey analysis appears to show that getting the UK on track will need carbon prices in excess of €90 by 2020, though this number will then fall.

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Gordon BrownThe environmental community tends to think that Gordon Brown doesn’t understand the complexity and size of the climate challenge. His first speech on the subject gave more detail than expected and reassured some that the prime minister does recognise the severity of the challenge. He moved towards an 80% reduction in GHGs by 2050, but even under optimistic assumptions his plans will not result in emissions reductions on the scale required. All his proposals were pain-free. He does not yet believe that the electorate is ready to face the real challenges of emissions reduction.

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Eco housebuilding


After decades of foot-dragging, the UK construction industry has begun to see the importance of good insulation and higher environmental performance. Large housebuilders are beginning voluntarily to build their major developments to a better standard than required by building regulations.

Housebuilders also see the increasing commitment by government to increasing the mandatory standards for home insulation and other environmental characteristics. By 2016, all new homes will have to be ‘zero carbon’.

A report just released by estate agents Knight Frank examines whether buyers are prepared to pay the cost of the eco-improvements. The answer seems to be a cautious ‘yes’.

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Amazonian topsoil enriched with charcoalOrganic matter, such as agricultural waste, heated in the absence of oxygen splits into two types of material: a charcoal (biochar), and hydrocarbon gases and liquids. When added to soils, the charcoal can provide a powerful fertiliser. The hydrocarbons can be burnt, either to generate electricity or to power an internal combustion engine.

Biochar is exciting growing attention around the world. Charcoal’s ability to improve soils can sometimes be spectacular. But more importantly from a climate change perspective, charcoal is almost pure carbon and is strangely stable in soils. It seems to persist for centuries. Charcoal can therefore offer substantial opportunities for long-term sequestration of carbon. The valuable fuels from the biogases and liquids are also carbon-neutral since they contain CO2 previously captured during photosynthesis. As a third major benefit, soils fertilised with charcoal seem to need less artificial fertiliser, thus saving fossil fuels. Fewer applications of fertiliser would reduce the level of emissions of nitrous oxide, a particularly dangerous greenhouse gas.

Biochar manufacture represents a way of productively storing large amounts of carbon. But the carbon in the charcoal could be burnt to generate electricity instead of being stored in soil. Current emissions trading schemes, such as the European ETS, do not allow sequestered carbon to be considered as equivalent to a reduction in greenhouse warming emissions. This is a mistake that will need to be rectified. It make more sense to use agricultural land to make biochar and biogases/bioliquids than to burn the biomass in power stations. Power stations burning wood benefit from buying fewer emissions certificates and from the renewable energy subsidy, but there is no comparable benefit from storing carbon in the soil. This is an anomaly that should be removed.

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Video conferencing has been around for a surprisingly long time. AT&T ran the first call in 1927. Since then, pundits have been consistently predicting that video conferencing was just about to take off. They have been wrong for eighty years. Why should we believe the techno-optimists now?

In the last year, several companies have launched video conferencing products that provide an experience similar to real meetings. The quality is surprising and even sceptics have begun to see the advantages of using a meeting room for an hour rather than spending three days going to Hong Kong and back. Cisco’s Telepresence product is generating enthusiasm that is tempered by the enormous costs of setting up the equipment and providing the bandwidth. But the company says that prices will fall dramatically over the next few years.

Is this going to be enough to get people out of planes? The signs are good. Even low bandwidth alternatives suitable for home use are getting praise from the experts. So if Cisco doesn’t make video conferencing work, Bay Area start-ups like VSee will probably start eating into the market for lower cost products.

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The Pre-Budget review in early October disappointed green activists. Environmental measures formed a small fraction of the government’s initiatives. It doesn’t look as though Alistair Darling sees climate change as one of the priorities of this administration. But there were two important commitments: a revision to Air Passenger Duty (APD) and (via BERR) a competition to run a commercial-scale carbon capture project.

The APD proposal attracted most attention. The government intends to change the duty so that it is levied on aircraft movements and not on individual travellers. Commentators, and the two main opposition parties, have long suggested that this would be a sensible change. Carbon Commentary disagrees. The proposed revision cannot be implemented without infringing international treaties on the taxation of air travel. The chancellor’s proposed consultation will eventually conclude that APD should remain substantially as it is now.

In the article, we briefly analyse the effects of APD and also show that the duty imposes an effective tax on airlines that is greater than would be levied if air travel were fully included in the European Emissions Trading Scheme (ETS).

The BERR Carbon Capture and Storage (CCS) announcement was worryingly unspecific. It did not even bother to mention a figure for the value of the financial support. It also upset some major companies by only allowing entries for the competition from a limited range of technologies. The government is extremely vulnerable to the charge that it is back in the business of picking winners.

CCS is an extremely important part of any strategy for national reduction of emissions. The UK should be throwing far more money at research and development into the various forms of CCS. The simplest and quickest way to get innovation in CCS would be to include carbon storage as a technology that qualifies under the renewable obligation rules. We need to remove the difference between the financial treatment of renewable power generation and carbon capture. Both achieve the same outcome and both should have the same reward.

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BT’s green credentials are well established. It is the largest commercial buyer of renewable electricity in the UK, emphasises the importance of carbon reduction across the organisation, and pushes voice and video conferencing at an unconvinced customer base. In any international ranking, BT’s sustainability measures get high marks.

But BT has the same problem as many other organisations: its server farms are growing in number and size. The increased power consumption in its data centres explains why the organisation’s electricity demand is growing. Eventually, its brand image will suffer as critics suggest that its public stance on green issues is not matched by its internal behaviour.

BT’s electricity use is about half a percent of the UK’s total, and its server farms represent over 10% of its energy consumption. BT says that data centre use is rising at 40% a year, and the company’s emphasis on growing video businesses, such as BT Vision, is likely to increase data storage and transmission demands into the foreseeable future.

BT’s response has been to attack the power use of the server with radical measures that set best practice elsewhere in the world. Its new data centres use fresh air cooling, not air conditioning, and the company runs its machines at much higher temperatures than used to be considered possible. Since cooling servers uses at least as much power as running them, this is an important step. The second major innovation is to run the farms on DC power, cutting the very significant losses in the multiple AC to DC conversions in a conventional centre. Better ‘loading’ of the computers helps as well. A well-utilised machine uses only a little more power than an intermittently under-employed server. BT claims that these measures can reduce the typical power consumption of a server farm by 60%.

Across the world, data centre energy consumption is becoming a bigger issue. The world has about 26m servers pumping out data day and night. Estimates suggest that they use about 2% of all electricity produced and global growth is probably around 15% a year. BT’s innovations may be a useful model for others to follow. But the unfortunate fact is that at current growth rates the maximum efficiency gains will be wiped out in less than four years.

In an intriguing trend, some companies are dealing with apparently unquenchable growth in data traffic by beginning to move away from thousands of servers based on PC technology towards huge single computers with lower total energy costs. Who said the mainframe was dead?

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Many agricultural crops can be turned into fuels. Diesel substitutes can be made from the oil in seeds. The sugars in cereals and tubers can be fermented into ethanol.

At first examination, biofuels look as though they might significantly reduce carbon emissions. An agricultural crop takes carbon from the air through the photosynthesis process. When the harvest is processed, and the output used as a fuel, the carbon returns to the atmosphere. Proponents sometimes said that agricultural crops make ‘carbon-neutral’ fuels.

Over the last two years, this simple optimism has been eroded. Two further blows have fallen in recent weeks:

  • Nobel winner Paul Crutzen and his team showed that we may have been underestimating greenhouse gas emissions from using fertiliser. The work suggested that emissions of nitrous oxide may be far higher than previously thought.
  • Richard Doornbusch, who is attached the OECD, wrote a paper which said: ‘The conclusion must be that the potential of the current technologies of choice – ethanol and biodiesel – to deliver a major contribution to the energy demands of the transport sector without compromising food prices and the environment is very limited.’

The balance of evidence is that biofuels produced from crops grown in temperate climates save very small amounts of emissions. Moreover, the land used for biofuel crops could be used for food or biomass for energy. In tropical lands, biofuel crops may save carbon emissions. But the energy policies of richer countries may be incentivising tropical farmers to cut down forest to grow fuel crops. The effect of this almost certainly outweighs any emissions reductions.

Despite the increasingly prevalent view that biofuels are little or no improvement on fossil fuels, both the EU and the US are obliging retailers to increase the percentage of motor fuels derived from agricultural sources. This is a mistake.

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Ceres Power, a £150m AIM-listed company, recently demonstrated its new Combined Heat and Power product. This power plant is targeted at ordinary domestic homes. Combining an efficient central heating boiler with a fuel cell that converts gas to electricity, the new product has excited the City. Ceres is extremely optimistic about sales of the device, based on the cash and carbon dioxide savings it says can be achieved.

The Ceres fuel cell (on the left) is incorporated into an ordinary domestic condensing boiler (on the right)

Ceres promises reductions in utility bills of £300 a year and 2.5 tonnes savings in carbon dioxide for the typical UK house. Our short report shows why we think that these savings are unlikely even in the most appropriate UK installation. In fact, the emissions reductions are likely to be minimal and the reductions in the electricity bill will not easily justify the approximately £1,000 extra cost of the CHP cell.

Micro CHP is a difficult proposition. Other companies have found that it is hard to make substantial savings in domestic installations. CHP is not well suited to rapidly fluctuating and unpredictable demand for electricity and hot water.

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Geo-engineering

Some scientists think that the world’s halting attempts to reduce carbon emissions are bound to fail. So they have proposed various schemes for counteracting the global warming impact of fossil fuels. The Gaia scientist James Lovelock proposed an unusual and untested idea in a recent paper. He suggested that we install millions of pipes to bring nutrient-rich water to the surface to feed carbon sequestering organisms. Other scientists are working on schemes as diverse as mirrors that reflect part of the sun’s energy, increased aerosol pollution to stop sunlight getting to the earth, and improving plankton growth by adding iron to the oceans.

All these schemes are ‘offsets’; they seek to counter-balance the impact of human activities with schemes to reduce CO2 elsewhere. The technology optimists believe that one or more of these techniques can completely counteract human effects. The cost often seems very reasonable – in the billions rather than the trillions – and the technological challenges seem not insuperable. The pessimists say these schemes will have huge unintended effects, possibly worse than climate change itself, and that toying with ‘geo-engineering’ projects, as they are called, simply delays the day that the world starts to realise it must cut fossil fuel use. Geo-engineering deals with the symptoms, not the causes, of global warming. And none of the proposed schemes deal with the adverse effects of higher CO2 concentrations, such as increased ocean acidity.

This article argues that all the major geo-engineering proposals have substantial pitfalls, but that it makes clear sense to increase the research funding into these schemes. The opponents and proponents of geo-engineering have got locked into an almost theological debate as to the ethics of climate modification but this argument should be secondary to the need to have well-defined back-up plans in the event of increasingly rapid deterioration of the global climate.

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New UK housing has insulation standards that do not come close to matching the best northern European levels. Individual homeowners and ethical investors have built single ‘eco-homes’ but a small new development in Bladon, Oxfordshire is among the first to be speculatively built by a mainstream housebuilder.

The new houses are not ‘zero-carbon’ and do not use the Passiv Haus technologies pioneered for low-emissions housing in Germany. But they are a substantial improvement on most mass-produced homes. Will they make the builder more money? No, says the company, but the experience it has gained will enable it to build eco-homes at a more competitive price in the future. These nine houses each cost over £40,000 more than their draughty Persimmon equivalents. The builder expects the price premium to be slightly less.

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Both the Conservative and Lib Dem parties have produced position papers on climate change in the last few weeks. The Conservative document is over 500 pages long but contains very few specific proposals. To be harsh, it is little more than a prolonged agonising over whether the climate change problem can be addressed using conventional free-market mechanisms. The Lib Dem paper is a tenth of the length but does contain the outlines of a coherent set of policies.

This article analyses the Lib Dem proposals. It shows that the Lib Dems are prepared to use the price mechanism to choke off increasing demand for aviation. The party also contemplates extending the Emissions Trading Scheme beyond the 50% of the economy currently covered. On the other hand, it makes completely clear that it has no intention of raising the prices of energy and fuels to domestic consumers.

Although the party presents itself as the only UK political institution ready to grasp the need for an economy-wide carbon price that will bring down emissions by 30% in 2020, the detailed proposals are far less radical. In the material that follows, I try to tabulate the Lib Dem ideas, focusing on whether they use price, regulatory fiat or pious hope as the proposed means of emissions reductions. As in the Conservative paper, estimates of the costs and benefits of their policies are almost completely absent from the Lib Dem paper. It is a shocking commentary on British politics that no major party is prepared to quantify exactly how it proposes to shift taxes towards polluting activities and away from other sources.

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The rivalry between Tesco and Wal-Mart is well known. Tesco’s imminent entry to the US heartland of the world’s largest retailer may have created an extra edge to the battle. And, unsurprisingly, the two giants are squaring up over carbon issues as well as over such things as employee conditions and global sourcing policies.

Tesco said earlier this year that it would eventually put carbon labels on all its 70,000 food lines. It has been trying to find way of doing this using Life Cycle Analysis, putting a greenhouse gas cost on every element of a product’s move from farm to plate. This was always a hugely over-ambitious project and recent weeks have seen the company drift back from its early optimism. Now Wal-Mart has come up with a similarly impossible dream – to use the Carbon Disclosure Project (CDP) to assess and manage the energy footprint of its suppliers. These big retailers know that they have to be seen to be doing something about greenhouse gases, so they have both launched incomplete schemes that will achieve little.

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Drawing: the Indian treadle pump backed by Climate Care

Climate Care, the leading UK carbon offset company, has had an eventful few weeks. A few days after receiving an unexpected visit from climate activists who presented management with a basket of red herrings, the company put out a press release claiming that it would offset 1% of the UK’s total carbon emissions next year. In sixty projects around the third world, Climate Care claims that it will reduce emissions in 2008 by 6m tonnes, or ten times as much as it has done this year. It is claiming spectacular growth rates. Continuous critical attention from newspapers and sceptical greens does not appear to have dented Climate Care’s prospects one iota.

The core problems with offsetting are two-fold:

  • guaranteeing additionality (ensuring that the investments in carbon reduction wouldn’t have happened anyway)
  • verifying the reductions.

Climate Care fails on both of these two important issues. Though Climate Care is getting increasingly tetchy with its critics, the blunt truth is that the company simply doesn’t deliver genuine and quantifiable cuts in emissions. Increasingly, it works as an international development agency rather than as a business balancing one person’s emissions with a reduction in another’s. Climate Care may do a lot of good around the world, but it doesn’t cut carbon dioxide emissions in a reliable or auditable way.

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