"Overgangsordningen omfatter alle kraftverk med byggestart etter 7.9.2009. I tillegg omfattes vannkraftverk med byggestart etter 1.1.2004, og installert effekt inntil 1 MW (mikro- og minikraftverk), av overgangsordningen. Det antas at volumet for mikro- og minikraftverk utgjør mindre enn 0,3 TWh. Overgangsordningen gir en rett til å delta i det felles elsertifikatmarkedet når det starter opp. Antall driftsår fram til oppstartstidspunkt for sertifikatmarkedet trekkes fra antall år anleggene ordinært kan få sertifikater. De anleggene som faller inn under ordningen og eventuelt mottar investeringsstøtte må betale tilbake denne dersom de ønsker å delta i elsertifikatmarkedet. Det vil i praksis gjelde vindkraftverk og biokraftverk. Nærmere kriterier for overgangsordningen vil bli bestemt i lov og forskrift."
On 7 December 2009 opens the 15th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP.15) (supreme body of the Convention) and the 5th Meeting of the Parties to its Kyoto Protocol (CMP5) (supreme body of the Protocol): the so-called COP15/CMP5. Parallel meetings will also be held for the Subsidiary Body for Scientific and Technological Advice (SBSTA) and the Subsidiary Body for Implementation (SBI).
Here is the logo and the website managed by Denmark as hosting country. The UNFCCC website remains of course the main source of information. I will report during the next weeks on the energy related issues raised during the COP/CMP, and relevant events.
Some websites and documents of interest:
- Key EU objectives for the COP/CMP: MEMO/09/534.
The effects of the financial crisis - They were "dramatic", and will continue to impact the energy markets for a few years. But all financial and monetary stimulus plans included measures to promote clean energy. Indeed, the WEO argues that the financial crisis opened "an unprecedented, yet relatively narrow, window of opportunity" in favour of low carbon technologies. The recession helped reduce GHG emissions. The question is to know whether it will last.
Energy investments - The 2008 WEO already stressed the importance of energy investments. In 2009, the WEO relates the general fall in investments in both conventional and renewable energy sources, to the financial crisis. "Falling energy investment will have far-reaching and, depending on how governments respond, potentially serious consequences for energy security, climate change and energy poverty" (p.43).
The novelty in the 2009 edition is that the WEO insists on the role of governments in "changing the mix of energy investment," independently from actions at household and business levels. Investment policies should be more regulated, either at national and/or international scales, to secure low-carbon options. Based on the level of regulatory and policy measures, the WEO distinguishes two possible scenarios: a Reference Scenario of business as usual; a 450 Scenario that aims to limit concentration of GHG to 450 parts per million of CO2-equivalent (ppm CO2-eq).
Security of energy supply - It remains a strong concern, for different reasons: non-OECD countries will increase their imports of oil; all regions are projected to increase their gas imports; the dominance of few producing countries (in particular Russia, and Middle-East countries) that could be tempted to take profit of their market power.
Low carbon energy revolution - Investment will be crucial for the realisation of the 450 Scenario. The latter "entails $10.5 trillion more investment in energy infrastructure and energy-related capital stock globally than in the Reference Scenario," 45% of which should be dedicated to the transport sector (p.47). New technologies will play a central role, and in particular carbon capture and storage (CCS), plug-in hybrids and electric vehicles. But new financing mechanisms are necessary. In the short term, nothing can replace government intervention, through financial stimulus, although private sector is projected to take over in the long run.
Natural gas - The 2008-2009 slowdown in international gas market will not last (expected drop by max. 3%). Whatever the scenario is, natural gas demand will increase, even more under the Reference Scenario, and mostly in non-OECD countries. Part of the gas demand in OECD countries would be progressively substituted by renewables and nuclear energy. Otherwise, the same concerns than in WEO 2008 on the difficulties in exploiting the huge remaining reserves are stated.
Unconventional natural gas deposits in the United States and in Canada have been a new factor during the last three years. These concern shale gas, deep gas, tight gas, coalbed methane, gas-containing shales, geopressurized zones, and finally Arctic and sub-sea hydrates. But, as for oil sands, environmental protection issues are a concern. "The high decline rates of unconventional gas will also require constant drilling and completion of new wells to maintain output" (p.50).
"La fée électricité" - All in all, power generation leads the increase in energy needs. "World electricity demand is projected to grow at an annual rate of 2.5% to 2030," 80% coming from non-OECD countries. Decarbonisation of the power sector is critical for emissions reduction, which vary according to the choice of scenario.
In the same time, "1.5 billion people still lack access to electricity - well over one-fifth of the world's population." (p.45) Access to modern energy is "a necessary condition for human development." Providing energy to poor regions are projected to involved "very modest" increase in primary energy demand and CO2 emissions.
The role of ASEAN countries - The WEO identifies developing Asian countries as the main responsible, followed by the Middle East, for world primary energy demand. The latter is projected to increase by 1.5% per year between 2007 and 2030, under the Reference Scenario (p.42). ASEAN countries will become key actors on the international energy markets.
The 2009 WEO insists in favour of a new international climate change agreement. International carbon market and international funding pools will play a central role in assisting developing countries in reducing GHG emissions. But by projecting an increase in energy demand from non-OECD countries, and, at the same time, a need for proactive regulation in favour of investments at national and international level, the WEO does not enable an easy international agreement on investment in clean energy. Indeed, this is "entirely a matter for negotiation." As already experienced under the climate change regime, many international law principles will be tested, and in particular how far go the principles of solidarity, equity and common but differentiated responsibilities.
The WEO also insists on the role of governments, at least in the short term. But what kind of government intervention is needed? Does it really mean "more regulation" or "smarter/better regulation"? The WEO does not answer that.
Picture: WEO 2009, IEA/OECD.
Short definition - Embodied energy relates to the total quantity of energy which is necessary to the production, transport, manufacturing, and further transport of a good until the place of consumption. Embodied energy can be calculated for any good, from electronic devices, household appliances, car or construction materials. It can be described as the energy counterpart of life cycle analysis resulting in life cycle energy analysis. Where the embodied energy for the production of a certain good or the functioning of certain plants is so high that it overcomes the benefits of the resulting product, one can talk about energy cannibalism.
Orientate customers - If embodied energy information is disclosed on the packaging, customers will be able to make their own assessment and orientate their consumption choice towards a less energy demanding product. The same reasoning already apply to the food sector. In the latter case, foodstuffs' components qualities and origin are detailed on the packaging. This is regulated at EC level by Council Directive 2000/13/EC on the approximation of laws of the Member States relating to the labelling, presentation and advertising of foodstuffs to the final consumer (as amended). The directive is itself based on the principle of functional labelling.
Energy labelling of products: from ex-post to ex-ante - The labelling of products is already regulated. However, such labelling focuses on an ex-post analysis, at the consumption level. For example, Council Directive 92/75/EEC provides for harmonised rules for the labelling and standardisation of product information of the consumption of energy by household appliances. Separate sister directives apply to the energy labelling of household appliances.
When it comes to the disclosure of information in relation to embodied energy, the closest EC regulatory attempt is the Eco-design of energy-using products (EuP) Directive 2005/32/EC, recasted by Directive 2009/125/EC of 21 October 2009. This is a typical New Approach directive, containing provisions on CE conformity marking, declaration of conformity and putting on the market and/or into service. As of today, it is the most appropriate legal basis for developing a legal framework on embodied energy in the EC. However, I do not think that I take wrong when saying that the visuability of such labelling is very low among customers. There is here a serious communication work to do by public authorites and by companies when marketing their products. One day can we maybe talk about "energy footprint" as we do with "carbon footprint".
In a way, the United States is doing better, by the use and easy recognition of the Green-e logo. Green-e offers certification and verification of renewable energy and greenhouse gas mitigation products. Lately, the logo use has been extended to other goods than electricity. For the latter, the logo certifies that the product has been produced from renewable energy sources. Green-e consequently argues that it is "providing customers clear information about retail 'green' electricity products to enable them to make informed purchasing decisions."
Labelling without green protectionism - This is a good case for international free trade rules. If information disclosure on embodied energy becomes a commercial or public issue for governments and citizens, one can imagine that embodied energy labelling of product can be introduced at large scale. Labelling could even be made mandatory, like it is for food ingredients or genetically modified organisms. But the manner labelling is used for market entry is always a critical issue, and should not justify green protectionism.