Tag Archives: alternative
EU Urges Energy Market as U.S. Shale Gas Widens Price Gap (1)
European Union leaders are set to urge faster integration of the bloc’s power and natural-gas markets to lower energy prices as the U.S. shale-gas revolution widens the EU’s cost gap with its largest trading partner. The 27-nation EU must accelerate efforts to implement energy legislation aimed at breaking down national barriers by 2014 and develop interconnections to end the isolation of some member states from networks by 2015, according to a new draft of conclusions for a leaders’ summit in Brussels today. The summit initiative comes after a record drop in private investment in Europe and the biggest-ever slump in the EU carbon market, designed to cut pollution and stimulate a shift to cleaner fuels. “The EU’s energy policy must ensure security of supply for households and companies at affordable and competitive prices and costs, in a safe and sustainable manner,” according to the conclusions obtained by Bloomberg News. “This is particularly important for Europe’s competitiveness in the light of increasing energy demand from major economies and high energy prices and costs.” At stake is an EU campaign to win energy-policy authority from national officials that compares with existing European powers over monetary, antitrust, trade and agriculture matters. Some governments, including the U.K., are lagging behind in introducing rules in line with EU legislation more than two years after a deadline passed. Price Gap If the EU becomes a fully integrated market, it could save as much as 35 billion euros ($45 billion) a year in electricity costs in 2015 compared with 2012, according to the European Commission, the bloc’s regulatory arm. Shale-gas production has contributed to a widening gap between U.S. and EU industrial prices for energy, according to a commission report prepared for the summit. “In 2012, industry gas prices were more than four times lower in the U.S. than in Europe,” the report said. As the EU’s oil and gas import dependency is set to increase to more than 80 percent until 2035, the U.S. is on its way to become a net exporter, according to the International Energy Agency. The increase in European energy prices is linked to the inconsistency of EU policies to boost the share of renewable energy, increase energy efficiency and cut greenhouse gases, as well as to national policies that distort the internal market, according to a study commissioned by BusinessEurope, a Brussels-based employers’ federation. ‘Cost Burdens’ “The U.S. industry already has a head start on global markets — this means that any additional cost burdens on European industry should be avoided if competitiveness is to be ensured,” Frontier Economics Ltd. said in the study. While companies such as Chevron Corp. (CVX) have begun drilling exploration wells in countries including Poland, shale-gas production in Europe won’t make the region self-sufficient in natural gas, according to a 2012 study by the EU Joint Research Centre. Under the best-case scenario declining conventional production could be replaced and import dependence maintained at a level around 60 percent, it said. Indigenous Resources As some member states and environmental groups are seeking stricter controls on shale gas exploration, EU leaders will say it’s crucial to “further intensify the diversification of Europe’s energy supply and develop indigenous energy resources,” according to the draft conclusions. Poland’s Prime Minister Donald Tusktold reporters today he was satisfied with the proposed wording as it treats shale gas as an opportunity and lets countries explore it as an option in national energy mixes. Europe needs to diversify its energy sources, boost efficiency, modernize infrastructure and complete the internal market, although shale gas development in Europe may not be a “silver bullet,” according to lobby group Shale Gas Europe, which is supported by companies including Royal Dutch Shell Plc. (RDSA), Halliburton and Statoil. Energy costs in the EU will remain above the U.S. because of differences related to infrastructure, rock structure and legislation, Iain Conn, head of BP Plc (BP/)’s refining and marketing unit, said March 16. ‘Cheap Coal’ “Europe is more dependent on imported energy and although Europe is benefiting — if I can call it that — from cheap coal coming from the U.S. as a result of this, Europe’s cost of energy for the economy is going to be higher than in the U.S. for the foreseeable future,” he said. As a net importer, Europe can boost energy efficiency, create a market based on smart infrastructure, exploit conventional and unconventional energy sources and bet on innovation in order to ensure secure and competitive prices, according to the commission. By 2020, the region needs to invest 1 trillion euros to reach its goal, the commission said. Financing investment in “new and intelligent infrastructure” should primarily come from the market, according to the draft summit conclusions. Private investment in Europe tumbled by a record 350 billion euros in 2007-2011, 20 times the drop in private consumption and four times the decline in real gross domestic product, according to a report by the McKinsey Global Institute published last year. Carbon Market “This makes it all more important to have a well-functioning carbon market and a predictable climate and energy policy framework post-2020 which is conducive to mobilizing private capital and to bringing down costs for energy investment,” according to the draft conclusions. EU leaders will return to the issue of 2030 energy and climate rules in March 2014, after the commission comes forward with a “more concrete proposals,” they said in the draft document. By then ministers will have discussed policy options in that regard, taking into account objectives set for a global climate deal sought in 2015, the document showed. Prices in the European emissions trading system tumbled to a record low of 2.46 euros a metric ton last month amid a surplus of allowances and concerns that lawmakers may fail to reduce the glut. That compares with 25-30 euros expected by policy makers when the cap-and-trade system was created in 2005. EU leaders will call on the commission to study how energy prices are affecting Europe’s competitiveness and what response is needed. The EU will need to look at innovative financing methods, improved liquidity in the energy market and the issue of the contractual linkage of gas and oil prices, they said in the draft statement. To contact the reporter on this story: Ewa Krukowska in Brussels at ekrukowska@bloomberg.net To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net Continue reading
Analysis: Indonesia Renews Moratorium On Logging, Palm Plantations
Commentary/Analysis by Kemen Austin, Fred Stolle and Ariana Alisjahbana, WRI May 16, 2013 Editor’s note: This commentary is an analysis by three experts from the World Resources Institute (WRI). The post originally appeared at Indonesia Extends Its Forest Moratorium: What Comes Next? . Indonesia’s President Susilo Bambang Yudhoyono made a bold and courageous decision this week to extend the country’s forest moratorium . With this decision, which aims to prevent new clearing of primary forests and peat lands for another two years, the government could help protect valuable forests and drive sustainable development. Enacted two years ago, Indonesia’s forest moratorium has already made some progress in improving forest management. However, much more can be done . The extension offers Indonesia a tremendous opportunity: a chance to reduce emissions, curb deforestation, and greatly strengthen forest governance in a country that holds some of the world’s most diverse ecosystems. Boosting Achievements from Indonesia’s Forest Moratorium Indonesia ranks as one of world’s biggest greenhouse gas emitters, largely due to the clearing of forest and peat lands. The forest moratorium aims to address this problem by prohibiting any new licenses to log, clear, convert, or otherwise alter pristine forest and peat lands, an area encompassing more than 43 million hectares of land. Forest users with existing licenses are still allowed to operate in these regions, and there are several exceptions to the rule. The biggest achievement of the moratorium thus far is that it created a much-needed window of opportunity to begin developing critical forest governance reforms. Now that the government has extended the moratorium, it’s important that these reforms are not only implemented, but strengthened to truly benefit Indonesia’s forests and the people who depend on them. Deforestation in Indonesian Borneo. Photo by Rhett A. Butler A few opportunities for further reforms include: Tracking Forest Permits : Currently, national agencies and local government offices oftentimes do not share information with each other on permits for logging, mining, palm oil development, and other forest uses. As a result, multiple forest users may operate in the same area, creating confusion and conflict. Indonesia’s REDD+ Task Force , the government body in charge of coordinating all REDD+-related activities , is currently capitalizing on the moratorium to develop an online, publicly accessible database of all forest licenses in the country. The team aims to publicize all permits from one province, Central Kalimantan, by June 2013. The Task Force should expand this process to Indonesia’s remaining 33 provinces after the pilot project. Strengthening the Permit Review Process : Before the moratorium, government agencies lacked technical guidance on how to review a permit’s compliance with Indonesian regulations—such as the limits on converting peat lands and the steps required to obtain a forest license. The REDD+ Task Force is currently piloting a new review process in three districts in Central Kalimantan and evaluating how permits comply with Indonesian rules and regulations. However, it is unclear if or how this assessment will impact illegal permits. If successful, this initiative should give rise to a stronger national policy on granting and reviewing forest permits. Designating Forest Area : Indonesia, like many nations, designates “official” Forest Estate ( Kawasan Hutan ) through zoning. The designation of forest area provides the foundation for deciding what types of forest use can occur and where. It’s a critical first step for improving land-use planning and forest management. However, due to conflicts between national and subnational governments, Indonesia’s forest delineation process is only 14 percent complete . The moratorium allows the REDD+ Task Force, in close collaboration with the Ministry of Forestry and local governments, to pilot measures to overcome conflicts and accelerate delineation. The Task Force has begun this work in one district, South Barito in Central Kalimantan, but it still needs to be completed and then applied to the rest of the country. Accelerating Spatial Planning : A slow Forest Estate delineation process has stalled the development of district and provincial land use plans, which help direct public and private investments. Only 45 percent of Indonesian provinces and 56 percent of districts had finalized their spatial plans as of April 2013. The moratorium prompted creation of an agency to guide this process, but it has not yet accelerated spatial planning to the degree necessary. Formalizing Community Plans : Regions occupied by local, traditional communities, known as adat areas, have historically been left out of Indonesia’s formal spatial planning system, the Rencana Tata Ruang Wilayah (RTRW). Ignoring adat communities’ land rights spurs poverty, hinders economic development, and deters environmental stewardship. During the moratorium, the REDD+ Task Force invited civil society to submit community maps and land use plans. However, because the moratorium doesn’t require full recognition of adat lands, government ministries must provide further clarity on how community plans will be incorporated into the formal spatial planning process. Peat forest clearing for an oil palm plantation in Indonesian Borneo. Photo by Rhett A. Butler 3 Ways to Strengthen Indonesia’s Forest Moratorium Extending the forest moratorium can help ensure that ongoing governance reforms reach their full potential. But to really capitalize on the extension and improve the forest sector, the government should also pursue new reforms, such as: Evaluating Greenhouse Gas Emissions During Permitting : Authorities who issue forest use permits lack the tools they need to evaluate the proposed activity’s potential greenhouse gas emissions. The new online permit database should be combined with data on forest cover, peat land extent, and carbon stocks to account for emissions risks. This review process could also support efforts to shift agricultural expansion from forested land to non-forested , “degraded land.” WRI estimates that there are more than 14 million hectares of low-carbon, degraded land in the four Kalimantan Provinces alone. Disseminating Technical Guidance at the Local Level : WRI and partners recently interviewed forest agency officials in eight districts to assess the level of local understanding of the moratorium. While all respondents were aware of the moratorium, just five out of eight knew the types of land protected, while only three had accessed the map delineating these areas. Ensuring a basic level of understanding at the district level will be a critical next step for boosting the moratorium’s application. Better Monitoring and Enforcement : The same forthcoming study revealed that half of district forest service respondents did not know who was responsible for monitoring the moratorium. Many said there were no mandated monitoring activities, and if there had been violations, they did not know where to report them. A robust monitoring and enforcement system is essential to ensuring an effective moratorium . Curbing deforestation, reducing emissions, and improving quality of life for millions of Indonesian citizens all hinge on sound forest governance. Extending the moratorium for two more years does not guarantee more emissions reductions or better forest management, but it’s a critical starting point. Now it’s time to capitalize on this opportunity and move forward with forest sector reforms. Read more at http://news.mongabay…D8Rytbh7EFur.99 Continue reading
Timber
21 May, 2013 | By Laura Mark This month’s overview focuses on recent changes to EU Timber Regulation. We also take a look at what is being done to encourage the use of home-grown timber, and a number of recent product developments that have come out of this. Timber Regulation Introduced in March 2013, the EU Timber Regulation (EUTR) aims to tackle illegal timber supplies, forming part of a wider European initiative. It is there to ensure illegal timber does not enter local markets. The new legislation places a legal obligation on those putting timber products on the market for the first time, including manufacturers, importers and distributors. ‘Although the obligation will be with the operators to adopt a due diligence system to minimise the risk of illegal timber being imported, traders further down the supply chain – including both merchant branches and even housebuilders – must ensure they have systems in place to be able to trace timber purchases to sales,’ says George Watson, product manager at SmartPly. He adds: ‘Although it is unlikely that the harshest penalties such as seizure of goods and suspension of authorisation to trade will be enforced on the end of the supply chain, a housebuilder for example, should be aware of the reputational downside of having been found to use illegally harvested timber. This could be significant and the best way to avoid this situation is to purchase only no-risk materials’. Malcolm Ellis of International Timber adds: ‘You might be forgiven for initially thinking that EUTR does not affect architects as most products will have already passed through operators and traders down the supply chain before reaching the architect or specifier. However, seizure of timber (a potential penalty) along the supply chain will have significant impacts on all involved and, from the architect’s perspective, could result in a direct cost to the bottom line of the project. So it is clearly vital that all participants in the supply chain, including architects, take due diligence seriously to ensure the credibility of the materials they source.’ For architects this new legislation could mean greater security and less risk when specifying timber products Timber will also be affected by changes to the Construction Products Regulation coming in during July 2013. This will require all wood products that are used in construction in the UK to carry a CE mark. Supporting documents will need to be provided with all timber specified, proving the environmental and legal derivation of the products. For architects this new legislation could mean greater security and less risk when specifying timber products. Watson believes: ‘The changing landscape of timber supply is driving all parties in the supply chain to work in a more integrated way, sharing the responsibility for compliance. The result of this will be a much more robust approach to sustainable and legal timber products’. Encouraging the use of UK timber Many new initiatives are being developed that aim to increase the use of home-grown timber in the UK construction industry. The UK timber industry primarily grows softwoods. The Forestry Commission estimated that in 2011, 10.4 million tonnes of roundwood was removed from UK forests, and 95 per cent of this was softwood. Wood for Good is an initiative working on behalf of the UK timber industry to campaign for the increased use of wood in construction. Chaired by architect Craig White, the group promotes the carbon sequestration properties of timber and therefore its suitability as a sustainable building material. It is also campaigning for the government to introduce a ‘wood first’ policy into local planning legislation. Wood First, as the campaign is known, aims to raise the status of timber to being a first-choice, primary building material. This would require sustainably sourced wood to be considered, where feasible, as the primary construction material in all new-build and refurbishment projects. The organisation states that this will help the UK meet both local and national targets for carbon reduction. Increasing forest cover is one of the most effective weapons in the battle against climate change David Hopkins from Wood for Good explains: ‘Increasing forest cover is recognised as one of the most effective weapons we have in the battle against climate change, and the best way to achieve this is to stimulate demand for sustainable timber products. The introduction of a ‘wood first’ rule will help to make this happen. ‘Introducing the rule would bring multiple benefits to local authorities. It will help drive efficiencies by increasing the speed of construction, while timber’s exceptional thermal insulation properties will enable them to create homes and buildings that consume less energy.’ The Grown in Britain programme, headed by BRE chief executive Peter Bonfield, emerged in July 2012 from the government’s independent panel on the future of UK forestry and woodland policy. Grown in Britain aims to boost levels of woodland management through demand for home-grown timber. It has partnered with various organisations on a number of timber construction projects including the University of East Anglia Enterprise Centre, due to complete in January 2015, and the extension to the Coed Y Brenin visitor centre in Wales, designed by Architype. Both of these projects are pioneering a renaissance in the use of Brettstapel. This construction method, increasingly being called Dowellam in the UK, is a solid-wood, structural panel system that can be manufactured using UK grown softwoods. The visitor centre at Coed Y Brenin is considered to be one of the first applications of this method using home-grown timber, and is seen as a significant breakthrough in the campaign to manufacture Brettstapel from home-grown timber. Source: Architype Sketch of the Coed Y Brenin visitor centre with the new building shown highlighted in grey The 400m² extension to the existing visitor centre will include a new bike shop, a conference room and meeting room facilities. Brettstapel will be used for the load-bearing external walls, internal partitions and the first floor construction. Brettstapel was first used in the UK by Gaia Architects on Acharacle Primary School in Scotland, in 2009. This highlighted the construction technique and, although not made from local timber, it could be credited with beginning the future developments of this method within the industry. The use of Brettstapel on the Coed Y Brenin visitor centre has been boosted by investment from initiatives encouraging the use of local Welsh wood, including Wood Knowledge Wales, Wales Forest Business Partnership and the Forestry Commission Wales. There are currently no commercial manufacturers of Brettstapel panels in the UK, and this investment could encourage it to become a commercially viable product. As the desire to use prefabricated systems increases, we could see a rise in the number of architects looking to use the Brettstapel system. A modular housing company was set up by the Coed Cymru sawmill in Wales to explore the use of low-grade timber. Named Ty Unnos, meaning ‘house in a night’, the company draws on ancient traditions of building houses quickly in order to claim common land. This parallels the system’s ease and speed of construction. At present, most timber-frame manufacturers in the UK use imported softwoods due to their greater stability and superior strength, but Ty Unnos is working to develop ways of using home-grown timber to its full potential. More than 70 per cent of Welsh forestry production is Sitka spruce, yet it is rarely used for UK construction due to its poor structural strength qualities. Ty Unnos has developed a modular building system using entirely Welsh timber. The system, based on simplified beams and standardised kits, uses local Sitka spruce in standardised, readily available lengths. Using coppiced willow, engineer Smith and Wallwork worked with Cambridge University architecture students to develop a timber bridge structure that would not decay over time. The bridge at Cow Hollow in Cambridgeshire uses a deck created by planting willow into the riverbanks. This method negates the need for any steel or concrete and shows how small bridges can be created using entirely local wood. http://www.architect…l-Ramag_380.JPG Source: Michael Ramage Continue reading
