Heathrow expansion

The government announced that it was minded to allow Heathrow to expand. A new runway and sixth terminal will increase capacity from 480,000 to 702,000 flights. The government’s consultation documents – totalling hundreds of pages – did not provide an estimate of the impact on CO2 emissions. In this article, we offer a tentative figure of about 16m tonnes as the potential maximum impact of the proposed expansion. After multiplying by 2.7 to account for the other pollutants created by aviation, the increase takes the total UK emissions from aviation up to 144m tonnes of CO2 equivalent.

Another piece in this newsletter discusses Gordon Brown’s statement in the same week that total UK emissions from all sources may need to fall to no more 155m tonnes by 2050.

The disjunction between government policies on aviation and climate change is startling.

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Community-owned wind farms

In Denmark and Germany, large numbers of individuals own shares in local wind farms. If the government encouraged this in the UK, a large part of the local opposition would disappear. Onshore wind farms in windy locations are good investments which could form an effective part of many people’s pension plans. One of the few co-operatively owned wind farms in the country has almost finished raising its funds. Investors have put up £3m to buy two existing turbines in the Fens. Locally owned wind farms should be encouraged as a cost effective means of cutting emissions.

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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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Shai Agassi and the big batteries

TeslaShai Agassi, the California-based software superstar who wanted to run SAP but left the company in March when he didn’t get the top job, has come back into the spotlight as the CEO of an electric car start-up. The new company is funded by $200m of venture capital and investment bank money. This makes it one of the best-funded start-ups in history. Agassi does not intend to make electric cars. Wisely, he is leaving this to the auto industry. He is focusing on the batteries. He’ll lease them to anybody with an appropriate car and he’ll develop large networks of ‘filling stations’ where the driver can quickly take out a discharged battery and swap it for a fully charged version on long journeys. By 2010, he wants a hundred thousands electric cars on the roads of California and elsewhere.

The obstacles are huge. Although lithium-iron-phosphate battery technology is improving rapidly, and will continue to do so for decades, full-size car batteries now cost at least €7,000. Getting mainstream manufacturers to build large volumes of electric cars that will take his batteries is another formidable challenge. Third, he has to persuade retailers to install the equipment to swap batteries automatically.

But our weary European scepticism needs to be rested for a moment. The long-run economics favour this idea. My sums suggest that at current UK petrol prices it costs at least six times more to drive a mile on petrol than it does on electricity. Battery prices will fall and performance will improve. At some point it is going to be so much cheaper to power a car with electrons rather than octane that even the slothful auto industry will switch. When the market has tipped it won’t be long before passenger cars are all electric. Agassi may be too early, and his business model may require too much capital, but electric cars are coming soon.

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Hillary Clinton’s climate change plans

Hillary ClintonThe US presidential contenders are laying out their plans for climate change mitigation and adaptation. Mrs Clinton’s proposals are noteworthy for their commitment to re-engage with the global negotiations over future emissions caps and for her ambitious acceptance of the need for an 80% reduction in US emissions by 2050. The 80% target is rapidly becoming the preferred option of world politicians, a more ambitious target than the UK’s 60% figure. (The UK’s Climate Change bill will allow the new Climate Change Committee to recommend an increase to 80% if appropriate.) Mrs Clinton espouses a cap-and-trade system for US emissions. Unlike the EU’s approach, she proposes to auction the permits. She will continue the disastrous US policy of encouraging the conversion of corn to bioethanol. She looks to renewable electricity to provide 25% of US power.

She will add to federal expenditure on R+D, but the number proposed is insufficient to have much effect. She stresses the high cost of energy (gas, motor fuels and electricity) to American citizens but not does mention that the impact of her measures will be to increase energy costs, not reduce them.

Mrs Clinton’s plan is calm and measured. Contrast her statesmanlike tone with David Crane, the CEO of a large electricity generating company, in a 14 October article in the Washington Post. Crane writes, ‘We are not running out of time, we have run out of time’ [his italics]. He argues that the US government should put an immediate price on carbon emissions to incentivise a rapid switch to carbon capture and storage in the US power sector. His tone is desperate: ‘I am a carboholic’ but I want to stop, he writes. We could all do with a similar sense of urgency from Mrs Clinton.

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Public opinion on climate change

BBC World ServiceTwo pieces of market research published in the last week give some more support for the view that opinion is moving towards accepting that climate change will require lifestyle changes. BBC World Service interviewed individuals across the globe. Power company E.ON produced its segmentation of British consumer attitudes. The BBC survey suggested that over 80% of UK people are ‘ready to make significant changes in the way I live to help prevent global warming’. Nearly 90% think that changes in lifestyle will be necessary to address the problem. These numbers are approximately the same as among urban Chinese and only marginally higher than the US.

E.ON’s segmentation has over 20% of the UK already taking serious and possibly costly personal action related to climate change. Less than 15% actively reject any need to act now.

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The rebound effect

Energy efficiency improvements often do not deliver reductions in energy use. For example, when a householder installs better insulation, the energy savings are sometimes much less than would have been predicted. Sometimes this is because the insulation was badly fitted, but it is often because the householder runs the heating at a higher temperature when the house is better insulated. This is called the ‘rebound’ effect: when it becomes cheaper or more effective to use energy, people use more of it. The many studies into this effect have produced a wide variety of different estimates for the size of this effect. Most cluster between 10 and 30%. This means that energy efficiency improvements generally result in a large net benefit. But these studies only capture the direct effect on consumers and businesses. A study from the UK’s Energy Research Centre shows that the economy-wide impact may be much larger. For example, lower heating bills may mean that householders are rich enough to take more flights. At an even higher level of abstraction, better economy-wide energy efficiency (through, say, improvements in steel-making technologies) may encourage more rapid economic growth, which in turn raises energy use.

Some economists think that the economy-wide rebound from energy efficiency gains is very large – perhaps over 100%. A figure over 100% suggests that total energy consumption rises after energy efficiency improvements. The tentatively stated view of a new report by the UK Energy Research Centre is that the true number is somewhat lower than this and may be around 50%, although it could be a great deal higher.

Government projections for the impact of energy saving measures never take the rebound effect into account. Policy-makers trying to reduce global emissions need to adjust their thinking to reflect the much lower than expected efficacy of energy saving programmes.

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Biochar can sequester carbon cheaply

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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China is keeping the UK within the Kyoto limits

Post-industrial countries like the UK import an increasing fraction of their manufactured goods from China. The carbon emissions from the Chinese factories making these goods are not included in the UK’s totals. How much greater would the UK’s emissions be if we included the impact of goods manufactured in China?

In this article, we make some estimates based on a briefing note recently produced by the Tyndall Centre. The numbers I use are imprecise – and I am using them for reasons not envisaged by Tyndall – but I believe that the increase in the imports of Chinese goods has probably reduced UK emissions by about 6% below what it would have been. Perhaps more dramatically, the trade deficit is rising so fast that it is depressing UK emissions by a further 2% a year.

Without the safety valve of Chinese imports, the UK would be very likely to breach its Kyoto targets, which only measure domestic emissions. This is important in itself, but a more striking conclusion is that the trade with China has disguised a failure to cut emissions growth below the growth of British GDP. The UK government, and others around the world, regularly claim that CO2 output has been ‘decoupled’ from economic growth. The analysis contained in this note suggests that the apparent decoupling is actually an artefact of the growing deficit in trade with China.

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Taking risks with the brand

The Goodall household is well-trained. Compostable products get put on the compost heap. Plastic bottles end up in the recycling bin. Where should Innocent’s new smoothie bottles made from bio-degradable corn starch go? Surprisingly, the answer is into landfill. Innocent, the company with one of the purest brands in the UK, has made a mistake. For the last year it has used a new material called PLA for one of its ranges of drinks. It admitted last week that it would cease to use this bio-plastic later this year. But on its website it was still making some surprising claims. It says that the bottles made from this bio-plastic break down in garden compost heaps. They will not. PLA needs to be heated for several days to temperatures far greater than those in a domestic compost bin before it begins to rot. The bottles would break down in a commercial composter, but very few local authorities operate one of these plants. Innocent’s ethical consumers are going to find a large number of plastic bottles at the bottom of their compost heap next spring.

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Peak Oil

The Peak Oil question is beginning to become a central part of the daily debate on energy matters. On one side is an increasing number of independent scientists and oil engineers who note that world oil production is barely rising. Existing fields are running down and new reserves are found rarely. On the other side of the debate are the major institutions of the global oil industry. The International Energy Agency sees world oil supply rising from about 88 million barrels a day now to about 116 million barrels in 2030.

This last week saw another analysis (from Germany’s Energy Watch Group) suggesting that world oil production actually peaked in 2006. From now on, the group says, we can expect rapid declines. Many people worried about climate change see Peak Oil as a good thing. They believe that a shortage of oil and natural gas will slow down the rise in energy consumption and therefore help reduce greenhouse gas emissions.

The argument is actually more complex – it may well be that Peak Oil will tend to increase CO2. We will not be saved from ourselves by running out of oil.

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Video conferencing: at last a good alternative to travel?

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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Food packaging and climate change

A recent Henley Centre survey suggested that 86% of people were eager to buy goods with less packaging, up 20% in the last two years. Nothing arouses as much spontaneous anger among British householders as the ‘over-packaging’ of foods. Recent newspaper headlines conveyed righteous indignation about the policies of UK retailers, in particular the failure to make all packaging recyclable. The newspapers completely missed the point. Three issues need to be emphasised:

  • Food packaging is a vanishingly small fraction of UK waste. Waste food is far more important.
  • Good packaging is vital: it helps protect food from damage and helps lengthen its shelf life.
  • Recyclable food packaging may actually be bad for climate change.

Making these points too loudly can get you lynched in some middle-class areas of Britain. Nevertheless, it needs to be said repeatedly that packaging, particularly of food, is not the environmental disaster it is made out to be.

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Rising trends in atmospheric CO2

CO2 output is accelerating, the ocean and land sinks are getting less effective at absorbing it. So the rate of growth of carbon dioxide in the atmosphere is increasing. (Canadell, Le Quéré, and others, 'Contributions to accelerating atmospheric CO2 growth from economic activity, carbon intensity, and efficiency of natural sinks', Proceedings of the National Academy of Sciences, 25 October 2007; URL: http://tinyurl.com/yqew8o [accessed 27 October 2007].)

The pre-industrial CO2 concentration in the atmosphere was about 280 parts per million. It was 381ppm in 2006. The growth rate between 2000 and 2006 was 1.93ppm, a significant increase on growth rates in earlier periods. Many policy-makers see it as vital to keep below concentrations of about 400ppm of CO2. The increase in the rate of rise of CO2 makes the achievement of this target more difficult.

Increases in the amount of CO2 in the atmosphere reflect the volume of global emissions and the effectiveness of the oceans and land mass in absorbing greenhouse gases. This paper contains evidence both that emissions growth is speeding up and that the greenhouse gas sinks are capturing less CO2.

The growth rate in emissions between 2000 and 2006 was 3.3% a year compared to 1.3% in the 1990s (please see the article on Chinese exports in this issue of Carbon Commentary for corroboration of this finding). This increase reflects fast economic growth, particularly in China and India and a worrying increase in the amount of CO2 produced per unit of global output. It cannot be stressed enough that this second cause of emissions growth is unexpected. We thought we were going to see energy use fall in relation to economic output.

By contrast, models have predicted a decline in the effectiveness of ocean CO2 ‘sinks’. This paper shows that we can have a strong suspicion (but not near certainty) that this process has started. The authors point to increasing wind speeds in the Southern Ocean as a primary cause. This turbulence ‘ventilates’ the carbon dioxide contained in the surface of the sea. Droughts in mid-latitude regions have contributed to the decreased efficiency of land absorption.

The paper concludes that – with large margins of error – economic growth generated 65% of the increase in atmospheric CO2; the decrease in the efficiency of the sinks generated another 18% and caused a rise in the carbon output required to generate a dollar of world GDP.

The authors summarise by saying that their results ‘characterize a carbon cycle that is generating stronger-than-expected and sooner-than-expected climate forcing’.

The Soil Association and air freight

Only 1% of imported organic food comes by air. But the Soil Association says that air freight ‘can generate 177 times’ the CO2 of shipping. Air transport is necessary for some fruit and delicate vegetables which provide a vital source of income in some poor countries. The Association was caught in a dilemma. It didn’t want to give its valuable imprimatur to foods that caused climate damage but neither did it want to impoverish poor tropical communities.

It carried out a detailed and thoughtful consultation with stakeholders. It seems a model of its kind. The consultation produced a consensus that air freight was only acceptable if the products were farmed in a way that brought development to the local community. In essence the Association is saying that only ‘Fairtrade’ products will be able to carry its valuable label. It won’t be enough just to meet the ordinary standards for organic agriculture.

Peter Melchett, the policy director of the Association, said that the ‘results of our very widespread consultation show that most people in the North and the South say that they only support air freight if it delivers real environmental and social benefits. The linking of organic and ethical or Fairtrade standards does that’.

The Soil Association will now move to ratify this decision, which went against central government advice, at least as expressed in a recent speech by a minister.

In the same press release it also announced a move to involve the Carbon Trust in providing a ‘footprint’ for organic foods (please see the article on organic food and carbon emissions in Carbon Commentary Newsletter #1). It said it would move towards carbon labelling of organic foods (please see the article on Tesco and Wal-Mart in Carbon Commentary Newsletter #2 for reasons why we think this is a mistake).

In a slightly surprising move, it also announced that it would seek to ‘actively encourage people to eat less meat’. Since beef cultivation is an important source of emissions, this makes good sense, but the Association is taking a risk by suggesting people should change their diet.

It also intends to review whether heated glasshouses are appropriate recipients of organic labels. This last point is well overdue. The carbon footprint of a food from a Dutch heated glasshouse is likely to be far greater than an air-freighted equivalent grown in the tropics.

BT’s wind farm proposals

BT uses over half of 1% of the UK’s electricity and is the single largest purchaser of green electricity in the UK. It buys over 10% of the country’s total supply of renewable electricity. It now seeks to develop wind turbines on some of its own sites. It intends to invest in about 120 2MW turbines to produce about a quarter of its own electricity or between 0.1 and 0.2% of the UK’s total need. This is an impressively large plan. The cost is about £250m. The financial return will depend on how much of the electricity replaces power BT would have bought from other suppliers and how much is ‘exported’. Assuming very little is used by BT itself, the return will be approximately £50m a year, yielding a return of about 20% on the initial investment. These figures assume that BT gets a yield of about 28% of the rated capacity of the turbines, which is about the UK average.

These figures depend entirely on finding sites. I think that BT may well have substantial difficulties finding as many 120 places where it can capture enough wind to average 28%. Perhaps more importantly, at many of those sites which do have enough wind, I think it will have problems getting connections to the local distribution network. Two of the three initial sites identified by BT are in the Scottish Islands. Although a typical 2MW turbine is not a huge generator to add to the local network, the islands have quite limited electricity needs. Scottish and Southern may not easily be able to add these turbines to their network.

When I asked BT whether it had approached the local distribution companies to check on this point, I was not given an affirmative answer. This raises the possibility that BT announced these plans before detailed consideration of whether its aspirations are technically feasible. So it may be a great idea to erest wind turbines, but it looks like it will be much more difficult than BT realises. Companies like Ecotricity have been developing wind turbines on industrial sites for years. Though planning permission is easier, there are still huge obstacles to overcome. BT needs Ecotricity's expertise immediately, but it will still struggle to meet its aspirations to grow its wind power capacity.

Is Kyoto dead?

(Gwyn Prins and Steve Rayner, ‘Time to ditch Kyoto’, Nature, 449, 973-5 (25 October 2007); URL: http://tinyurl.com/ys8flx [accessed 27 October 2007].) This short article has attracted attention around the world. Its thesis is that Kyoto is a dangerous distraction. It hasn’t worked, and its successor will not succeed either if it follows the same principles. Kyoto’s proponents have ignored its failures and exaggerated its effectiveness. It is worse than useless because it has stifled discussion of alternatives. However, their thesis is buttressed by two observations which are not accurate. They say that the International Energy Agency is predicting that world energy demand will double by 2030. It does not; it predicts a rise of just over 50%. Second, the paper states that the BP annual Statistical Review says that a likely global carbon price will not be high enough to induce major change. It does not; BP might think this, but its latest Statistical Review (referenced in the text) does not say this.

Like generals fighting the previous war, Kyoto’s originators based its design on the successful treaties on ozone depletion, acid rain and nuclear weapons. These problems were much more amenable to global regulation and the sharing of burdens was much more politically feasible. The authors of this paper suggest that policy makers should move away from treaties that try to put a cap on world emissions.

Prins and Rayner say that we need new techniques for getting a grip on the carbon problem. And, second, we need to work out how we need to adapt when severe climate changes arrive.

Their proposals for replacements for Kyoto are short and unspecific. In summary, they believe that the world needs ‘genuine’ emissions markets, not artificial constructs like Kyoto, and these markets must evolve gradually from local experiments. They mention approvingly some of the voluntary carbon markets that have grown up in the US. I think this faith in small informal markets is wholly misplaced. What possible reason would persuade a major polluter to participate?

The authors tell us we need to invest more in public R+D in clean technologies. In this they mirror Bjørn Lomborg (see the discussion of his book Cool It in Carbon Commentary Newsletter #3). They support messy public policies rather than ones that go for what they disparagingly describe as ‘elegant’ solutions. They see a role for measures such as mandatory technology standards (perhaps such as mile per gallon regulation on cars). The ideas they present are sketchy and unconvincing.

Many of us think that Kyoto and its successor are worth supporting as one of a package of measures. It is, after all, the only measure that we have currently got other than European ETS. Does it distract from finding other tools? I don’t see any evidence for the authors’ pessimism. Can it be merged with other global and local measures? Yes it can. No one pretends Kyoto is perfect, but because it tried to distribute the pain of emissions reduction reasonably fairly, it was a start. We can build on it; we need not destroy it.