Global Roundtable on climate change: “Set targets for emissions”

“Governments all over the world should set scientific targets for greenhouse gases and carbon dioxide emissions,” according to a statement by the Global Roundtable on Climate Change (GROCC), calling climate change “an urgent problem”. Furthermore, the statement urges governments to place prices on carbon emissions and to support policies which stimulate energy efficiency and de-carbonisation.

The statement has been endorsed by businesses and organisations, as well as heads of governments and research leaders from around the globe. The statement lays out a proactive framework for global action to mitigate risks and impacts while also meeting the global need for energy, economic growth and sustainable development.

CO2 based car taxes in Germany and Portugal

Both Germany and Portugal are restructuring their car taxation systems to make the costs of driving reflect more accurately the CO2 emissions in grammes per kilometre.

In Germany, the Minister of Transport Wolfgang Tiefensee announced last week that the German government was planning to change the car taxation system. The annual tax is currently based on the size of the car’s engine, but instead, the Bundesregierung now wants to use the emissions per kilometre as the taxation criterion.

Minister Tiefensee would like to see the new system introduced by next year. He stresses that the change would be revenue neutral; it would only shift taxation. The introduction might be hindered by the German states (Bundesländer) that have to cash the taxes, if they fear that they will lose income over the restructuring.

In Portugal a new car taxation system has already been approved by the government, although it still has to pass through parliament and presidential approval to become effective. The new system consists of two taxes: one at purchase (called ISV) and the other one annually (IUC). These will replace the current fragmented vehicle taxation system.

The Portuguese system is a bit complex. The purchase tax is dependent on emissions on a sliding scale. Buyers will pay their ISV per gramme of CO2 per kilometre: from a modest 0.95 Euros per gramme (up to 120 grammes per kilometre) up to a staggering 60 Euros per gramme (for a car producing more than 210 grammes per kilometre).

To add to the complexity, the new tax system is to be introduced in Portugal in July this year, with only 30% of the tax being environmentally based. By 2008, the taxation should be 60% emission based.

Further information

Press release: Klimafreundliche Kfz-Steuer bis Jahresende

Press release on Portal do Governo (in Portuguese)

How do YOU feel about carbon storage?

The European Commission launched an online questionnaire on underground carbon storage. The Commission wants to know the public’s opinion about injecting carbon into the earth before it launches a proposal on the subject.

The consultation comes in the wake of the Commission’s energy and climate package which highlighted the importance of CO2 capture and storage (CCS) as a means to reduce CO2 emissions while relying on fossil fuels for over half of the electricity in the foreseeable future.

Meanwhile, NGOs are sceptical about underground carbon storage. Greenpeace argues that CO2 is a waste and therefore existing rules against burial of waste at sea should be applied. Friends of the Earth stresses that the EU should reduce demand for energy first before taking refuge in CCS.

According to a UK study from 2004, the public is poorly informed and therefore rather sceptical. The consulted public seemed to appreciate carbon storage less then wind and solar energy. On the other hand, CCS was preferred above nuclear energy.

How would you rate CO2 storage? The questionnaire takes about 20 minutes and is available until 16 April 2007.

More Information:

Public Perception of Carbon Capture and Storage, Tyndall Centre 2004.

RECS: ‘Implementation of GoOs needed in all EU member states’

President Claes Hedenström of RECS International strongly requests the European Commission “to standardise the national implementation of Guarantees of Origin (GoOs) in Europe”. In a recently published press release RECS International states that Europe-wide use of Guarantees of Origin would be the backbone for the internal market for renewable energy in Europe. Also cross border trade barriers should be investigated and removed.

“A clear and integrated regulation is crucial for Europe to meet its targets for 2010 and 2020,” says Hedenström in a reaction to the Commission’s Renewable Road Map to 2020. In the Road Map the Commission concludes that the 12% renewable energy target will not be met. One of the reasons given is that ‘national policies have been inadequate’. RECS International is convinced that lack of integration and lack of regulation cause unwanted variation in the implementation of the EU Directives on renewables by member states. In the end this will lead to confusion with the end-users of electricity who have to pay for the support.

GoOs prove the origin of (green) electricity and can be traded or transferred within Europe. According to RECS International, GoOs should be implemented in the national legislation of all member states. GoOs must be used by energy suppliers to disclose their energy mix on electricity bills for at least the renewable part. GoOs could even give consumers the opportunity to demand a certain electricity product. For example, consumers could demand that they want to use 100% green electricity.

RECS International advocates acceleration of the harmonisation of the technical standards necessary to enable trading of GoOs to work effectively. A European standard is available but is used by only 8 countries (Norway, Sweden, Finland, Denmark, Netherlands, Germany, Austria, Slovenia). RECS International calls upon the other governments to use the standard as well.

More information:

RECS International

IEA: 'Increase energy research'

In its annual ‘Energy Policies of IEA Countries’ report, the International Energy Agency says more budget is needed for energy research if countries are to follow a more sustainable energy path.

Existing and developing technologies can help to make the world’s energy supply more sustainable. More efficient processes and products, carbon capture and storage, renewable energy sources and nuclear energy can help to reduce CO2 emissions. “But urgent action is needed from the governments in IEA countries to bring about this change,” the IEA writes. The Agency observes a discrepancy between the large role energy research has to play in the energy transition and the modest research budgets available, both public and private.

After an increase in energy research budgets in the mid-1970s, these budgets have steadily declined since the early 1980s and stayed low from the late 1990s onwards. Energy Policies of IEA Countries states: “It is unlikely that the technological challenges facing the energy sector can be addressed without significant increases to the R&D budgets in member countries.”

It seems the IEA advice has already been taken to heart by the European Commission. Within the 7th Framework Programme (FP7), the European nion will spend about 2.3 billion Euros on non-nuclear energy research in the period 2007 – 2013. The Strategic Energy Technology (SET) Plan is one of the initiatives. It aims to accelerate innovation of energy technologies and push European industry to pick up the challenges of climate change and security of supply. It will be presented for approval at the 2008 Spring European Council.

Eventually, the IEA believes that “by considerable effort” it is possible for IEA countries to move towards carbon free electricity by 2050, but to achieve carbon free transport will take considerably longer.

For the first time, the IEA Policies yearbook has a separate chapter on energy efficiency, which sets out the most important recent developments in energy efficiency policies of IEA member countries and important other countries as well. The IEA seeks to find the best practices for sharing and implementing these policies. The IEA report finds that although energy efficiency can save at least as much CO2 as renewable energy sources, and in a more cost effective way, energy efficiency doesn’t get sufficient emphasis.

More Information:

IEA Bookshop: Energy Policies of IEA Countries

Proposal for a Strategic Energy Technology Plan, GreenPrices 11-01-2007

First FP7 energy calls early 2007, GreenPrices 23-11-2006