Many of the world’s largest developed nations experienced a drop in emissions of carbon dioxide and other greenhouse gases in 2009. China and India, however, saw their own domestic emissions levels rise significantly. Has this growth in effect “canceled out” the reductions made in developed nations? According to the Netherlands Environmental Assessment Agency, the answer is yes.
Global emissions levels remained relatively unchanged in 2009 largely because of Chinese and Indian contributions, despite predictions from groups such as the International Energy Agency (IEA) which thought the global economic meltdown and decrease in manufacturing would assuredly reduce emissions worldwide.
The Netherlands Environmental Assessment Agency notes that carbon dioxide emissions per person in China are now 6.1 tons, roughly equal to France which clocked in at 6.0 tons in 2009. This figure represents a major increase for China, which in 1990 emitted only 2.2 tons per capita. Interestingly, this increase comes Chinese wind and solar energy capacity has doubled for the fifth year in a row.
Because of its use of nuclear energy, French emissions are actually on the lower end of the scale in comparison to other developed nations. Per capita emissions in other EU member nations were 7.9 tons in 2009, down from 9.1 tons in 1990, while per capita emissions in the United Sates fell to 17.2 tons in 2009, decreasing from 19.5 tons in 1990.
All in all, the Dutch agency now reports that 53% of 2009 global emissions came from developing nations, with 44% coming from the developed world. International air and sea transportation accounts for the remaining 3%.
According to the BP Statistical Review of World Energy, global emissions of CO2 and other greenhouse gas emissions decreased for the first time since 1998, dropping 1.1% to 31.13 billion tons after 2008′s peak of 31.55 billion tons.
However, despite this overall reduction, China’s greenhouse gas emissions have grown sharply as the nation rapidly industrializes and continues to construct new coal-fired power plants. China is now the world’s leading emitter, having overtaken the United States in 2008. This past year, China ‘s fossil fuel combustion released 7.5 billion tons of CO2 into the atmosphere.
China is not the only developing nation whose emissions have grown sharply. India also saw an increase of 7%, and it has now overtaken Russia as the world’s third largest emitter. In aggregate, the developing world now accounts for half of all global emissions.
United States emissions, on the other hand, fell by 6.5% to 5.9 billion tons in 2009, the lowest level since 1995. However, “although the share of emerging markets is growing, the industrialized countries remain the preponderant source of historical greenhouse gases,” reminds Nick Robins, head of HSBC’s Climate Change Center of Excellence.
The United States and China, as well as the world’s other top emitters, now find themselves under tremendous pressure to either extend the Kyoto Protocol or formulate a successor to the climate treaty, which is set to expire in 2012. Nations are also attempting to come up with domestic emissions reductions plans of their own. “In terms of future emissions targets, China is ahead of the U.S. because it has set itself commitments to reduce carbon intensity, while the U.S. is struggling to get climate legislation through Congress,” remarks Robins.
BEIJING, May 27 (UPI) — China and the United States signed eight green energy deals Wednesday in Beijing but financial details were not disclosed, Chinese media reported.
The deals, designed to increase cooperation in the sector, cover areas such as aviation biofuel, distributed energy systems using natural gas as fuel, smart meters and cellulosic ethanol, the China Daily reported. A number of Chinese and U.S. companies would be involved in the eight deals.
The report quoted analysts that the agreements between the world’s two largest energy users would encourage global collaboration in increasing energy efficiency and protecting the environment.
The agreements came at the conclusion of the two-day China-U.S. Strategic and Economic Dialogues in Beijing.
Zhang Guobo, head of the National Energy Administration, also noted bilateral collaboration in renewable energy development, adding: “The United States has advanced technology, and China has a huge market,” the China Daily reported.
U.S. Ambassador to China Jon Huntsman was quoted as saying the two countries will “take every angle” to ensure their cooperation in energy and environment.
Zhang said renewable energy development is important for China to achieve goals of increasing the use of non-fossil energy to 15 percent of primary energy use by 2020, and reducing carbon intensity by 40 percent to 45 percent in 2020 from 2005 levels, China Daily reported.
He said China will continue to focus on the development of hydro, wind, solar, and biomass energy in the renewable sector.
The United States Department of Energy (DOE) is instituting its first-ever strategic plan to deal with “Rare earth metals” – the special group of elements that are essential components of clean energy technologies like electric vehicle batteries, compact flourescent light bulbs and solar panels.
As nations around the world increase development and deployment of clean energy, there is a growing anxiety about China’s clear dominance of these essential supplies. China currently supplies nearly 95% of global demand for rare earth metals, and the government is attempting to control all processing of rare earth metals. Over the past seven years, China has reduced global exports by 40% and some estimates expect China will begin halting exports of these rare earths within the next two years.
“It goes without saying that diversified sources of supply are important for any strategic material,” said David Sandalow, Assistant Secretary of Energy for Policy & International Affairs. ”So too are substitutes and strategies for re-use and recycling. If rare earth metals are going to play an increasing role in our economy, we need to pursue those strategies.” The DOE is soliciting information from industry, research labs and other related organizations to gain a more complete understanding of cost and supply issues regarding rare earth metals.
Grappling with skyrocketing energy demand, high pollution levels and international pressure to reduce greenhouse gas emissions, reports indicate China may consider instituting taxes on carbon or other resources to boost support for low-carbon energy technologies.
Experts from the Energy Research Institute under the National Development and Reform Commission – a Cabinet department focused on mid- and long- term domestic development – say if it is deemed beneficial, a carbon tax is likely to be levied during the 12th Five-year plan (2011-2015).
Jian Kejun, a senior researcher with the Institute, reaffirmed China’s commitment to reducing its carbon intensity 40-45% by 2020 in recent remarks to the newpaper China Daily. To reach this target, the government is prepared to pursue “tougher measures” over the next five years, including subsidies and incentives for low-carbon technologies in addition to a potential tax.
Increasing support for scientific research is another top priority in China. Right now, China’s investment in scientific clean energy research is only one-sixth that of the United States. However by 2025, China’s investment in this area may overtake that of the United States. ”If this comes true,” Jing said, “we can start to dream of becoming a low-carbon technology leader in the world.”
The Asian Development Bank (ADB) is providing $2.25 billion in financing to the Asia Solar Energy Initiative, in the hopes of attracting significant additional investment – on the scale of $6.75 billion over the next three years. The Asia Solar Energy Initiative (ASEI) will develop large-scale solar power projects in the Asia and Pacific region, aiming for 3,000MW in installed generating capacity by 2012.
“With energy demand projected to almost double in the Asia and Pacific region by 2030, there is an urgent need for innovative ways to generate power whole at the same time reducing greenhouse gas emissions,” said Rajat Nag, managing director at ADB. Central Asia is a region of particular interest, thanks in part to the vast amounts of desert land available for massive solar construction.
In 2009, ADB supplied nearly $1.3 billion in funding for clean energy projects, exceeding its $1 billion target. Beginning in 2013, the Bank is aiming to increase its investment to $2 billion/year.
NEW YORK — Commodities prices fell sharply Tuesday as new doubts about Europe’s ability to resolve the Greek debt crisis sparked a global flight from risky investments.
Crude oil and other energy contracts tumbled, a day after oil hit an 18-month high. Prices for copper and other industrial metals also fell sharply.
The declines in commodities were made worse by a spike in the dollar as investors sought safe places for their money. The rising dollar tends to sap demand from foreign investors for commodities, which are priced in dollars.
Oil fell 4 percent, as did heating oil.
Copper fell more than 3 percent, and silver prices were off nearly 5 percent.
The dollar rose sharply against other currencies, especially the euro, which has been battered by the Greek debt crisis.
The ICE Futures US dollar index, which measures the dollar against six other currencies, jumped 1.2 percent to 83.26.
The seemingly endless saga of finding a solution for Greece’s debt crunch has unnerved investors, sending stock prices down around the globe Tuesday. The Dow Jones industrial average was down as much as 283 points, its biggest drop since Feb. 4, before it closed down 225.
“There seems to be a wholesale run for the exit for risky assets,” said Evan Smith, co-manager of U.S. Global Investors’ $800 million Global Resources Fund. “It appears to be concerns about Greece and the impact on the euro zone. We thought that fire had been put out, but it keeps reigniting, it seems.”
European nations agreed to a bailout package for Greece over the weekend, but street protests broke out in Athens Tuesday as unionists opposed the sweeping budget cuts the country agreed to in order to qualify for the aid. Standard & Poor’s downgraded Greece’s debt to junk last week and also lowered its ratings on debt issued by Spain and Portugal, confirming fears that Europe’s sovereign debt woes were spreading.
Copper’s decline was made worse by another factor: China. Beijing imposed more restrictions on its banks, leading investors to worry that its hunger for copper, oil and other industrial commodities might wane as its economic growth moderates. July copper dropped 11.5 cents to $3.1785 a pound.
Other metals also tumbled.
Platinum fell $43.10 to settle at $1,685.80 an ounce, while palladium for June delivery fell $33 to $515.25 an ounce. Both are used in making catalytic converters for cars and therefore respond to shifts in sentiment about economic growth.
July silver fell 99.8 cents to $17.842 an ounce. Gold was the least hurt among metals in the selloff, falling $14.10 to settle at $1,169.20 an ounce.
In energy trading, crude oil prices dropped $3.45, or 4 percent, to settle at $82.74 on the New York Mercantile Exchange.
Crude had traded at its highest level in a year and a half on Monday. Oil prices are also taking a hit from growing crude inventories, which may have gained an additional 1.5 million barrels last week, according to a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos.
In other Nymex trading in June contracts, heating oil fell 8.56 cents to settle at $2.2595 a gallon, and gasoline lost 11.29 cents to settle at $2.3222 a gallon. Natural gas added 1.3 cents at $4.013 per 1,000 cubic feet.
Agricultural commodities were mixed. Wheat for July delivery rose 9 cents to settle at $5.1075 a bushel. June soybeans rose half a cent to $9.87 a bushel, while corn fell 2.5 cents to $3.69 a bushel.
China’s largely untapped vehicle market is becoming more and more attractive for electric vehicle manufacturers, service providers and investors. Newfound economic prosperity has resulted in many first-time vehicle purchases amongst Chinese citizens. In 2009, 2% of China’s population owned cars, and 80% of new motor vehicle sales went to first-time buyers.
According to HSBC research, China’s share of the world electric vehicle market will jump from 2.7% to 35% in the next ten years. During this rapid period of growth, HSBC expects China to push past the United States and Japan.
There is a rapidly growing, yet little serviced market here, and many believe this is a perfect opening to jump in. A recent example is Better Place, the electric vehicle service provider which aims to install vehicle charging networks to support an electric vehicle infrastructure. Better Place has inked a deal with Chery Automobile, China’s largest independent auto producer and a major exporter of electric vehicle technology, and will bring its business to the Chinese market for the first time.
Research expects investments in renewble energy to grow to $653.35 billion within five years, as governments and investors around the world funnel money into this growing sector.
Despite the widespread economic malaise and the tight credit market, global investment in renewable energy increased 43.4% between 2008 to 2009, reaching $336.78 billion. Since 2001, the industry has achieved a combined annual growth rate (CAGR) of 30.8%.
China’s total investment of $11.48 billion made it a major player in the Asian markets, says GBI, with notable investments made in wind and solar projects.
As the United States Senate prepares to re-visit climate change legislation, the special envoy to the Chinese president voiced grave concern over the effects un-mitigated climate change could have on China’s economy.
“The scale of economic destruction would be equivalent to that of the two world wars and the Great Depression combined” if global temperatures rise by 3°C to 4°C, Xie Zhenhua wrote recently in the China Economic Herald. ”Human beings cannot afford such disasters.”
In now appears that the group of BASIC countries (Brazil, South Africa, India and China) are becoming more amenable to the terms of the Kyoto Protocol, which they had previously resisted heartedly. This resistance was a major reason why the United States never ratified the treaty, which is set to expire in 2012. BASIC environment ministers will meet in South Africa later this month to incorporate elements of the Copenhagen Accord, the non-binding agreement formulated at the Copenhagen climate talks last December, can be worked into a broader global pact to succeed the Kyoto Protocol.
What is the fastest and most immediate way to reduce the globe’s rapidly rising demand for energy? According to a publication from leaders at the World Economic Forum, entitled Energy Vision Update 2010; Towards a More Energy Efficient World, energy efficiency is the answer.
By closing the “efficiency gap” between today’s wasteful production methods and other more streamlined options, we can reduce global resource strain, and potentially save billions of dollars. For every dollar spent on efficiency methods, the report estimates savings of $2-$4 in what would have been wasted energy.
Important developments in this sector are occurring around the world, including massive smart grid investment in South Korea, construction of new high voltage transmission lines in China and development of smart grid software in high-tech hubs in the United States and India.
The following chart shows where we are now… and how far we still need to go.
Data from the Earth Policy Institute (EPI) demonstrates just how China took the lead in the global solar manufacturing race. By the end of 2008, Chinese production was 5 times that of the United States, says EPI. The United States is now in fifth place, behind Germany, Spain and Japan.
“Although this technology for converting sunlight into electricity was developed in the U.S., Japan took an early lead in production, surpassed only in recent years by China and Germany,” says the report.
Despite China’s vast PV manufacturing capacity, the nation is not yet a large solar cell buyer. However, an additional study from Lux Research predicts that trend will change soon. Massive spending on large solar projects throughout the nation may make China the world’s largest solar market within five years. This strong predicted growth will likely push the solar market to 26.4GW total global capacity and $77 billion in revenues by 2015.
The global clean energy sector was predicted to take a bath or at best remain flat last year in light of the dismal global economy. However, according to a new report from clean tech research and publishing firm Clean Edge, the sector not only stayed afloat, but produced increased revenues in three major areas.
Clean Edge data shows that combined global revenues for solar photovoltaics (PV), wind energy and biofuels grew 11.4% from 2008 levels to reach $139.1 billion in 2009.
Significant growth in China’s clean tech sector contributed to this growth in global revenues. China is now the world’s largest PV cell manufacturer, and over the past year has announced major plans to build wind and solar “megaprojects.” China may end up spending between $440 billion to $660 billion on clean energy over the next ten years.
Anticipating a growth in global oil demand, OPEC leaders agreed to keep production levels stable at 24.84 million barrels per day (bpd), even though many member nations such as Saudi Arabia have been consistently overreaching those targets.
“Good demand, reliable supply, beautiful prices – we are very happy,” remarked Saudi Arabian Oil Minister Ali al-Naimi, who expects global demand to pick up by “about a million barrels” per day in the latter half of the year, largely due to rapid growth from Asia.
Even though the International Monetary Fund (IMF) predicts China’s economy will expand by 10% this year, the nation’s rising inflation may prompt new actions to limit credit that may also negatively impact the oil market. OPEC President Germanico Pinto addressed this point in a speech delivered before the meeting, admitting “there is still a long way to go before we can feel at ease with the situation.”
China and India have formally agreed to ratify the Copenhagen Accord, the global climate agreement which stemmed from last year’s U.N. climate change convention in Copenhagen.
Over 100 countries have already approved the Accord, which aims to limit the increase in global temperatures to no more than 2 degrees Celsius, or 3.6 degrees Fahrenheit, above pre-industrial levels. The Accord also calls for spending on the scale of $100 billion a year to assist emerging countries in making adaptations to climate change.
China and India are two of the world’s fastest growing economies, and in recent years their rates of energy consumption and carbon dioxide emissions have skyrocketed. By joining the Accord, China and India have added legitimacy to the treaty and have demonstrated to the rest of the world that they are serious about addressing these important climate issues.
The United States still leads in worldwide demand for oil, but at the rate China and the rest of Asia are growing, it may not hold that title for long.
The combination of economic stagnation and increased efficiency measures lead many analysts to believe any recovery in U.S. demand will happen slowly. Since reaching peak levels in 2005, U.S. oil imports have fallen over the past two years by 9%.
China’s oil imports, on the other hand, rose by 14% last year. This demand growth has impacted China’s relationship with Saudi Arabia, its main supplier.
Chinese purchases from the oil-rich Kingdom hit a record high of 1.2 million barrels per day (mbpd) in December of last year. Saudi oil minister Ali Al-Naimi predicts “Asia will be a huge market,” and says the Kingdom is leasing new storage facilities in Japan for easier shipments to Asian customers.
M&A activity in the global energy sector reached $150 billion in 2009 as corporate plays reached levels not seen since 2006, according to a new report from Wood Mackenzie.
“Unconventionals” and national oil companies were the major trends in the sector last year, the latter accounting for 17% of M&A spending during 2009. ExxonMobil’s $41 billion takeover of natural gas company XTO and Suncor’s buyout of PetroCanada for $18 billion were two of the most notable deals.
The chart below from Wood and Mackenzie depicts the growth rate after inclusion of foreign mergers and acquisitions by NOCs:
World oil demand may rise higher than previously expected, says the International Energy Agency (IEA), the Paris-based energy advisor to 28 OECD nations. The IEA’s 2010 oil demand estimate is now 1.6 million barrels per day (bpd), 120,000 barrels higher than previously predicted.
The IEA attributes the majority of this growth to demand from developing nations. ”The demand growth is all coming from countries east of Suez,” said David Fyfe, head of the IEA’s oil industry and market’s division. ”The emerging economies of China, India and the rest of Asia and the Middle East is where all the action is.”
Oil demand in developed nations, on the other hand, has hit a wall as consumers have moved away from oil as a power and heating fuel. There may be some increased demand for transportation fuels and petrochemicals in industrialized nations, but overall demand will not compare to the 6.1% market growth predicted in booming emerging nations.
China’s energy needs are predicted to double over the next ten years, and the nation is making big moves into the smart grid technology space, says smart grid research and consultancy firm Zpryme.
In an effort to modernize its power grid, China is planning $7.3 billion (USD) in federal funding for smart grid technologies. The U.S. runs a close second, with a planned $7.1 billion in Department of Energy (DOE) grants for smart grid projects.
The smart grid will play an important role in China’s “master plan,” says Zpryme, and data from the China Electricity Council shows China’s investment in smart grid has been steadily increasing over the past four years. In 2009, China’s investment in smart grid was actually higher than its overall investment in new power generation, with $51.3 billion USD and $43.9 billion invested respectively.
Major companies are taking notice of this trend, and China has already formulated partnerships with smart grid-focused conglomerates like GE, IBM and Cisco. In a recent Business Week article, IBM predicted over $400 million in smart-grid revenues to come from China over the next four years.
In the latest example of its global hunt for natural resources, China recently signed a $60 billion, 20-year coal supply contract with Australian mining company Resourcehouse. Under the terms of the deal, which Clive Palmer, Chairman of Resourcehouse says is “Australia’s biggest ever export contract,” Resourcehouse will supply 30 million tons of coal each year for the next two decades to a unit of China Power Investement Corp., one of China’s major power producers.
Although China is rich in domestic coal resources, the energy-hungry nation has been reaching beyond its borders to secure future supplies for its rapidly industrializing population. In December 2009, total Chinese coal imports reached a record monthly high of 16.38 million tons, jumping up 29.5% from November 2009. Analysts say these high import levels were the result of insufficient supply in the domestic market, and are likely to remain high until March of 2010.
Many of the world’s largest developed nations experienced a drop in emissions of carbon dioxide and other greenhouse gases in 2009. China and India, however, saw their own domestic emissions levels rise significantly. Has this growth in effect “canceled out” the reductions made in developed nations? According to the Netherlands Environmental Assessment Agency, the answer is yes.
According to the 
Research expects investments in renewble energy to grow to $653.35 billion within five years, as governments and investors around the world funnel money into this growing sector.
As the United States Senate prepares to re-visit climate change legislation, the special envoy to the Chinese president voiced grave concern over the effects un-mitigated climate change could have on China’s economy.
Data from the Earth Policy Institute (EPI) demonstrates just how China took the lead in the global solar manufacturing race. By the end of 2008, Chinese production was 5 times that of the United States, says EPI. The United States is now in fifth place, behind Germany, Spain and Japan.
The global clean energy sector was predicted to take a bath or at best remain flat last year in light of the dismal global economy. However, according to a new report from clean tech research and publishing firm Clean Edge, the sector not only stayed afloat, but produced increased revenues in three major areas.
