Panorama
 
 
 
 
 

POWER EMISSIONS LIMITS TO SAVE MOST CARBON AT LEAST COST


Environmental Panorama
International
January of 2009


13 Jan 2009 - Strasbourg, France – The least cost way to reduce power related carbon emissions in Europe would be to supplement the EU’s Emissions Trading System (ETS) with the introduction of Emissions Performance Standards for energy, according to a new study.

Such a system, successfully used in some US States where it has helped put renewable energy on a more equal footing with traditional energy sources, could cut the EU power sector’s greenhouse gas emissions in 2020 by more than two-thirds – more than 800 million tonnes per year.

'Scenarios on the Introduction of CO2 Emission Performance Standards for the EU Power Sector', carried out by the consultancy Ecofys for environmental groups WWF, Bellona Europa, ClientEarth, E3G and Green Alliance, says such an outcome could be achieved if binding emissions limits are introduced for all large power stations in the EU on a staged basis between 2010 to 2020.

The study also shows that an early phase-in of Emissions Performance Standards (EPS) would be more cost-effective and have greater impacts than a delayed introduction. It would overcome some weaknesses of the ETS, which has been criticised for providing some of Europe’s heaviest polluters with windfall profits as a result of governments giving away rather than auctioning carbon emission permits.

“The current EU Emissions Trading Scheme unfortunately does not prevent high polluting coal-fired power stations from being built,” said Stephan Singer, Director of WWF’s Global Energy Programme.

“We need new emissions limits to ensure Europe invests only in renewable energy, energy efficiency, and CO2 capture and storage facilities for coal-fired power stations. Otherwise, Europe will fail to deliver its contribution to keeping global warming below 2 degrees Celsius.”

A CO2 Emissions Performance Standard is a limit on emissions per unit of energy output. EPS in the power sector has been in place in California, US since 2007 and has subsequently been introduced by Oregon, Washington State and Montana.

All of these states are part of the Western Climate Initiative, formed with the aim of cooperating on the introduction and operation of cap and trade-systems, and the report stated there was a clear indication that the fruitful co-existence of EPS and ETS (Emissions Trading System) schemes was considered feasible.

In general it was found that EPS schemes were implemented successfully, especially if the right framework conditions were created, by helping operators to bear the costs of EPS compliance through incentivizing legislation (taxation related). In the EU this could also be supported by a more stringent EU-ETS with higher certificate prices.

With such a limit, new power plants that cannot meet the standard would not be built and existing power plants that do not plan to upgrade pollution controls or implement equivalent measures would close down.

Utilities will have clear incentives to invest in energy efficiency measures, equip their new plants or retrofit the existing ones with CO2 capture and storage, or switch to renewable sources of energy.

The study clearly shows that an Emission Performance Standard needs to be phased in through stages for both new and existing plants. Imposing a very demanding limit of 150g CO2 / kWh just on new plants from 2010 would deliver reductions of 10 per cent of power sector greenhouse gas emissions by 2020, while a staged introduction of a less stringent 350g standard for new plants from 2010, extended to existing plants by 2015, could save up to 46 per cent of power sector emissions by 2020.

In contrast to continuing to allow construction of new conventional fossil fuel power stations under the guise of 'capture readiness', an Emissions Performance Standard is an effective means of providing the real regulatory certainty needed to shift investment decisions in the power sector, and avoid dangerous lock-in to high carbon power infrastructure.

It will also be key to move Europe’s commitments to reduce greenhouse gas emissions from 20 per cent to 30 per cent as soon as a new international agreement is in place.

WWF, Bellona Europa, ClientEarth, E3G and Green Alliance say that, despite recent agreement on new climate and energy legislation, more action to limit greenhouse gas emissions is essential in order to re-establish Europe's credibility and build greater international confidence ahead of the crucial Copenhagen climate summit in December.

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WWF warns over Dutch deal with German coal giant

15 Jan 2009 - Zeist, Netherlands - The long partnership between WWF-Netherlands and the largest “green” Dutch energy-supplier Essent that has existed since 1995, may come to an end if Essent cannot continue its sustainable performance when it is taken over by the German energy-concern RWE.

Essent and RWE announced the takeover earlier this week and shareholders have already approved the deal. Finalization is subject to non-objection of the EU-authority that handles fair competition between companies.

RWE is known for its huge CO2-emissions. WWF-Germany reacted to the planned deal by stating that RWE is Europe’s “largest environment-spoiler”. “They have no qualms about investing in conventional coal-burning energy plants," said WWF-Netherlands CEO Johan van de Gronden.

The Dutch parliament will have a plenary debate on the takeover later this week. Essent have invited both WWF and RWE for negotiations about a partnership on sustainability.

RWE is a huge investor in conventional coal-fired power stations and the builder of many nuclear plants. One of their most recent plans is to build a nuclear power plant in Bulgaria, in a region that is considered hazardous because of earthquake risk.

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Slippery slope ahead for ski resorts in Central and Eastern Europe

13 Jan 2009 - New research suggests that ambitious plans for dozens of new ski resorts in Central and Eastern Europe could be constructed on slippery financial slopes.

The potential financial uncertainty on the future viability of the resorts is also adding to concerns that some of Europe’s last wilderness areas will be damaged to little purpose.

Up to two-thirds of Alpine ski areas could go out of business due to a lack of snow on current climate change projections, which see temperature rises of between 2 and 5.2 degrees Celsius in coming decades, research from the Organisation for Economic Cooperation and Development (OECD) has suggested.

The WWF report suggests that a similar fate may be in store for proposed and ongoing developments in Central and Eastern Europe, and that the cost of these white elephants will be greater than just financial.

In Romania alone, 102 resorts or developments have been planned, and a project in Ukraine is looking to develop into one of Europe’s largest ski resorts, with 100,000 beds and 66 lifts at a total cost of some €3 billion.

“Construction of ski facilities removes large areas of forest to make way for ski pistes, access roads and infrastructure, reducing and fragmenting habitat for wildlife,” said Andreas Beckman, Deputy Director of WWF’s Danube-Carpathian programme.

“It is irresponsible for governments to not only allow but actively support such damage when there is very likely no economic future for these resorts.” Many of the ski development projects rely on very significant funding from state and EU sources.

“If the real reason is a very short term bonanza of chalet speculation then it will be an economic, environmental and social tragedy,” Beckmann concluded.

Most proposed ski resort projects for Central and Eastern Europe are located at below 1500 meters above sea level, a threshold considered in the Alps to be the lowest point at which a ski resort can be currently considered viable in terms of snowfall for skiing.

The Carpathian Mountains where many of the ski areas are planned is home to over half of Europe’s largest remaining populations of brown bears, wolves and lynxes. Ancient beech forests stretching from Slovakia to Ukraine are among Europe’s last remaining natural forests and were recently listed as a World Heritage Site.

Some ski developments are illegal as well as unwise; a number of Bulgarian projects are being built in protected areas including Rila and Pirin National Parks. Governments are not necessarily at the forefront of enforing their own laws, either. Bulgarian Prime Minister Sergey Stanishev opened an illegally constructed ski lift in September.

In Romania, a state programme plans for construction of ski areas in eight of the country’s national parks, including Retezat and Piatra Craiului, the country’s flagship protected areas.

A common problem with ski developments throughout the region are the poor quality of many environmental impacts assessments, many of which do not meet EU standards.

Ski resorts with only short term prospects of natural snow also raise significant cost and environmental concerns if they try to keep themselves going with artificial snow, the report found.

The 3,100 snow cannons around Europe, designed to maintain the quality of ski slopes, consume some 260,000 kilowatt hours (kWh) worth of electricity annually. This is an amount that could power a city of 150,000 people for a year.

“The least responsible thing that public authorities can do is to ensure that the economic aspects of ski resort development justify the environmental damage,” Beckmann said.

“Much better would be working out how countries and communities can get long term value from their environmental assets without destroying them.”
Andreas Beckmann, Deputy Director, WWF Danube-Carpathian Programme

 
 

Source: WWF – World Wildlife Foundation International
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