The GreenSource Blog

Inside Renewable Energy: Renewable Energy Finance Forum

2008-06-23T22:47:00.000-07:00

This week's Inside Renewable Energy podcast featured interviews with leaders in the financial community, from the 5th Anniversary Renewable Energy Finance Forum in New York City, June 18-19, 2008.

Editor and host Stephen Lacy discussed the latest trends in cleantech investments with Michael Liebrich, CEO of New Energy Finance, Nancy Floyd, Founder and Managing Director, Nth Power, Kevin Walsh, Managing Director of Renewable Energy at GE Energy Financial Services, and John Geesmen, former California energy commissioner and Co-Chair of the Board of Directors of the American Council on Renewable Energy (ACORE).

Topics focused on industry consolidation, tax equity financing, carbon cap and trade schemes, venture capital, and the impact of the political stalemate in Washington over federal tax incentives.

A Changing World, Indeed

2008-01-03T07:30:00.000-08:00

Here's a revealing story from the WSJ this morning. With oil futures hitting a record $100 yesterday, setting a new US benchmark, and surging demand in developing nations such as China to blame, economies, the balance of power and culture as we know it is changing.

The region's new wealth has triggered a bout of deal making that has bankers rushing to the petrostates of the Persian Gulf. McKinsey & Co. estimates that the world's biggest investors of petrodollars -- including state-owned vehicles known as sovereign-wealth funds -- now manage as much as $3.8 trillion in assets. The Abu Dhabi Investment Authority, which McKinsey estimates manages $900 billion in assets, is today among the world's largest financial-market participants -- about the same size as the Bank of Japan.

Underscoring the region's new global financial heft, Abu Dhabi recently swooped to the rescue of Citigroup Inc. with a $7.5 billion cash infusion as it struggled with write-downs from this year's credit crisis.

The piece goes on to illustrate how oil prices are lessening the US's effect in Darfur and Sudan, as well as with Iran's nuclear ambitions, and also touches on air fares. A good read.

Key Provisions for Renewables Removed from the latest Energy Bill

2007-11-14T06:49:00.000-08:00

Renewable Energy Access reports that Senate Majority Leader Harry Reid and House Majority Leader Nancy Pelosi decided to remove a renewable portfolio standard (RPS) and tax-based incentives for the stimulation of renewable energy production in order to pass an energy bill through Congress before Thanksgiving break on Friday, November 16.

Stephen Lacy writes:

Without a long-term extension of the PTC [production tax credit], which expires in December of 2008, [wind power] developers will be unsure about the financial viability of their projects. If the market starts to slow down in the U.S., manufacturers will be unwilling to scale up production or enter the country all together.

There's only one week left before Congress leaves for Thanksgiving recess - renewable energy lobbyists are pushing along at full-steam to support the addition of renewable energy provisions, however at the moment, old dirty energy like coal, oil, biofuels and natural gas will receive continued attention.

There are several emerging technologies that aim to make energy from coal more environmentally viable, and undoubtedly this abundant domestic resource deserves attention as it is not dissapearing anytime soon.

100 Silicon Valley Execs to Drive Plug-In Hybrids Next Year

2007-09-23T21:55:00.000-07:00

The Mercury News reports that by early next year, 100 executives in Silicon Valley will be driving Plug-In Hybrids to acknowledge awareness of global warming by taking action.

The initiative was planned by the The Silicon Valley Leadership Group and its chief executive, Carl Guardino.

The action is a start to a broader mission:

Make the region a leader in conservation, in the use of alternative fuels and in reducing global warming; and to exert the valley's influence when it comes to pushing governments and big corporations to act to solve these problems.

Sass Somekh heads the plug-in program. His vision, which he admits is distant from the present:

200,000 one-megawatt windmills turning at night and generating enough renewable power for 200 million cars.

The goal is to have the batteries in plug-in hybrids store energy for others to use while connected to the grid when they are not in use, however, according to a senior director for smart energy at PG&E, vehicle-to-grid (V2G) technology still requires a lot of investment and research for it to be applicable at scale.

RPS and Tax Credits supported in House Energy Bill

2007-08-05T21:54:00.000-07:00

Here's a few posts that hit regarding the anticipated House of Representatives RPS and Tax Credit bill passed on Saturday.

House Passes Solar Tax Credits and RPS in Energy Bill, Renewable Energy Access

House Passes Energy Bill; Transportation Focus on Biofuels, Mass Transit and Plug-Ins, Green Car Congress

Good News For New Energy, Good News for the U.S. of A., NewEnergyNews

The House voted on a renewable power standard requiring 15% of energy supplied by utilities to originate from renewable sources by 2020. The Senate passed a bill in June, which did not include the RPS or solar tax credits, however the Senate passed fuel efficiency standards for automobiles.

Both the Senate and House will reconcile the respective bills in the fall, however it has been noted that the White House may veto the legislation, citing high energy costs and a lack of stimulus for domestic energy production. If the legislation does pass, however - it would be the first time the federal government has mandated a proportion of energy generation from renewable sources - a step in the right direction.

Energy Harvesting Concepts

2007-07-29T22:25:00.000-07:00

Interesting applications for energy harvesting have caught my eye recently. To get Wikipedia with it;

Energy harvesting (also known as Power harvesting or energy scavenging) is the process by which energy is captured and stored. Frequently this term is applied when speaking about small autonomous devices, like those used in sensor networks. A variety of different methods exist for harvesting energy, such as solar power, ocean tides, piezoelectricity, thermoelectricity, and physical motion.

The first example I came across was in Electronic Design, and the piece refers to piezoelectricity, an electric charge generated by certain materials (notably crystals and certain ceramics) in response to stress, pressure, shaping, etc.

The piece describes the application of such technology to potentially harvest the energy of the beating heart - which would be applicable for powering a pacemaker. Other applications discussed include piezoelectric pushbutton switches, which according to the piece, represent a large portion of potential applications - including powering your overhead lamp during air travel on a commercial airliner.

Then, in Green Options, I read about two grad students from MIT's School of Architecture and Planning that are devising a way to create a sub-flooring system made of movable blocks that harvest human energy created by the footsteps of crowds. The friction created by the blocks sliding against one another in response to the pressure above would create electrical current.

For further exploration, this piece in Electronics Design describes energy harvesting in greater depth, and reviews advances in the fabrication of materials made purposely for piezoelectric applications.

Media Magazine: Green is the New Black

2007-07-28T18:06:00.000-07:00

MediaPost's July issue of Media Magazine reports on a few significant green programming developments both online an on-air, which are a reflection of the spending power of earth-conscious consumerism.

Of the media properties mentioned:

>> Discovery recently unveiled plans to rebrand Discovery Home to tilt the 50 million-subscriber network toward green lifestyle programming. The effort includes a $50 million investment in programming on sustainable development, organic lifestyle and healthy living.

>> Scripps Networks introduced several green-centric online series in the late spring on hgtv.com, diyNetwork.com and hgtvPro.com and planned to air a DIY special on energy saving and an HGTV special on environmentally friendly homes.
>> Green media company Lime plans to debut six new Web series in the third quarter, more than doubling its original online shows. Lime also landed Microsoft as an advertiser for a new ad network that sells ads across Lime.com and other eco-friendly sites. Lime had nearly tripled its number of advertisers and quadrupled its ad revenues in the second quarter compared to the fourth quarter of its last fiscal year.

Oh no, not beer too!

2007-05-30T08:27:00.000-07:00

This is too funny - two stories in one day about biofuel production implicating our ability to get drunk at an affordable price :P

German Biofuels Incentives Drive Up the Price of Beer

But seriously - according to this piece, subsidies from biofuel crops are making it harder for smaller brewers as they struggle to deal with the increased cost of barley. This may affect the availability of different varieties of beer - which could rip a hole in the space-time continuum.

While it's tempting to write this off as a minor inconvenience, rising barley prices are also threatening the livelihood of many smaller German brewers: "The financial pressure on Germany's small and medium-sized breweries is immense," brewers association head Walter Koenig said. "The increasing costs of raw materials may become a serious threat for many breweries."

Maybe the space-time thing is an exaggeration, however any threat to the availability of different beer varieties in Germany is certainly a threat to culture.

Tequilla vs. Ethanol

2007-05-30T06:43:00.000-07:00

It looks like there could come a point where the tequilla in Mexico doesn't flow like wine... in part because of ethanol-inflated corn prices. Bummer.

http://www.env-econ.net/2007/05/not_wasting_awa.html

http://www.msnbc.msn.com/id/18926019/?GT1=9951

Longer Term Solar Tax Credit Extention Sought

2007-02-20T21:46:00.000-08:00

I'm a bit late on on this one, but last week, senators Gordon Smith (R-OR) and Ken Salazar (D-CO) introduced legislation to stimulate investment in solar power.

Bill S.590, dubbed the "Securing America's Energy Independence Act," was proposed to finally put an end to the current routine of extending temporary tax credits for solar energy and other renewables, by extending solar energy investment tax credits for homeowners and businesses through 2016. Under current law, the credits are set to expire at the end of next year. Excerpt from the SEIA press release follows:

A long-term extension is essential to reducing the cost of solar energy, as it would create market conditions that allow solar companies to make investments and drive down costs through economies of scale. A longer duration will also be needed to help stimulate the development of large-scale concentrating solar power projects.

SEIA estimated that a long-term credit extension would create approximately 55,000 solar industry jobs by 2016 and encourage states to invest billions of dollars in renewable energy infrastructure. Solar energy would displace four trillion cubic feet of natural gas under the bill, saving American consumers $32 billion over equipment lifetimes.

Read the remainder of the SEIA release here.

Technorati Tags: SEIA, Solar Power, Solar Tax Credit.

Clean tech, the Silicon Valley, and Al Gore

2007-02-03T09:44:00.000-08:00

Al Gore addressed attendees at the Silicon Valley Network's "State of the Valley" conference at Joint Venture on Friday, empowering the region's business and community leaders to take a front-line position in the war on climate change.

While the IPCC was making a very sobering "state of the climate" address, Al Gore spread gospel about the opportunities of clean technology and the Valley's receptiveness to developing the sector, according to the San Jose Mercury News yesterday.

Any doubt that human production of carbon dioxide is accelerating climate change should be gone, he said....

The human species, Gore said, "cannot'' continued its current approach to energy consumption. "We cannot. It would be suicidal. But change is difficult.''

The good news, he suggested, is that Silicon Valley is tackling the crisis. The region, as Gore noted, has recently embraced "clean tech'' with glee.

The Mercury News reported that clean tech funding to firms in the valley increased from $141 million in 2005 to $516 million [ed. note - a 365.95% increase if my math is right!] in 2006, according to the group's latest annual Silicon Valley Index assesment. Compare that with the national figures compiled by the Cleantech Venture Network, which state cleantech VC investment totaled a record $2.9 billion for 2006, representing a 78% increase over 2005 cleantech investment of $1.6 billion and a 140% increase over 2004 investment of $1.2 billion.

These numbers obviously reflect an accelerating growth trend overall, with growth in the Valley outpacing national figures. According to the Merc, the CEO of local Miasole characterized the solar market in the Valley as "just absolutely exploding."

Technorati Tags: Al Gore, Silicon Valley, Cleantech, Renewable Energy, Climate Change, Venture Capital, Solar, IPCC.

Climate Change Legislation around the Corner?

2007-02-02T08:38:00.000-08:00

The stage is set, as the first report since 2001 to emerge from the UN International Panel on Climate Change has been issued today. Here's a piece from today's NYT.

The report is timely, and follows in the wake of a State of the Union Address taking climate change into account for future energy policy, and climate change policy discussions held at Davos, Switzerland.

US Climate Change Partnership, (USCAP), (www.US-CAP.org) has been pushing for swift policy measures directed at enabling economic growth concurrent with greenhouse gas emission reductions via cap and trade system.

It's likely that this perfect storm will yield action.

Looking Back this Week

2007-01-28T20:21:00.000-08:00

On Saturday, the AP published a landmark article giving full and uncontested credibility to the scientific consensus on climate change. Underscoring the paradigm shift occuring in Washington on the issue right now, the article brings to the foreground George W. Bush's acceptance of climate change in his State of the Union Address on Tuesday.

"The years of resistance to the reality of climate change are melting away like the soon-to-be-history snows of Kilimanjaro." - Matt Crenson, AP

Addressing the topic of energy policy, President Bush proclaimed that the new way forward is through technology. He proposed an increase in the renewable fuels standard (RFS) from 7.5 billion gallons by 2012 to 35 billion gallons by 2017. He also spoke of "modernizing" fuel economy standards for vehicles.

The New York Times reported Tuesday in The Energy Challenge series that Bush would signal an increase in the RFS in his State of the Union Address. While pointing out the low energy efficiency of corn-based ethanol, as well as the impacts the industry could have on the agricultural economy and America's position as a leading exporter of corn, the piece summarizes the powers and policy decisions behind the ethanol boom.

The same issue of the Times showcased an electric-electric hybrid based on a Ford Edge crossover. This plug-in hybrid is the first to use a hydrogen fuel cell instead of a combustion engine for back-up. The primary battery is rechargeable directly from the grid via wall outlet, and will last 25 to 30 miles before the fuel cell kicks in. With a $2 million price tag, this one-of-a-kind vehicle will not be commercially available anytime soon, however, the standard plug-in hybrid concept has been gaining traction for its ability to buffer the electric grid.

In addition, a few interesting clean-energy statistics were reported in the Times on Tuesday. According to London-based New Energy Finance, North American private equity and venture capital funds beat out Europe in regards to funding clean-energy development start ups last year - despite the absence of US participation in the Kyoto Protocol. However, according to the Jefferies Group in New York, Europe is home to over half of the world's 22 most valuable publicly traded wind and solar companies. The piece attributed this fact to lapsing wind rebates in the states, as well as a more relaxed regulatory environment and a heightened focus on developing essential infrastructure for wind and solar farms abroad.

What are People Saying: California Plans to Create World's First Global Warming Polution Standard

2007-01-11T01:32:00.000-08:00

California Governor Arnold Schwarzenegger announced a plan during the State of the State address to reduce fuel carbon content by 10 percent by 2020. The EU has contemplated a similar plan, but right now, California may be the first government to establish one.

The San Francisco Chronicle reports that although the new standard could affect gasoline production processes worldwide, the carbon emission reduction would equal taking 3 million cars off the road by 2020. This translates to a reduction of 13 million metric tons of CO2, according to the Chronicle, which is over half of the 24 million metric tons needed to meet 1990 emission levels.

The article states that transportation contributes 40 percent of the state's total carbon dioxide emissions, and such a standard could give alternative fuel technologies a boost.

Being that I am living on planet Earth, whenever I hear or read about an emissions proposal nowadays, little bells go off and I think, ok, but really what's between the lines here? Well, it seems that makers of gasoline and diesel fuel are left to meet the emissions target however they see fit, and this could mean increasing proportions of ethanol.

When I heard this news, I was thinking that I should write something on ethanol production regarding the market for corn, but John over at environmental economics takes this angle tactfully well, so why recreate the wheel? (Previously, I have linked to a great post regarding the ethanol debate, at the Alternative Energy Blog. It features input from the Engineer Poet and is followed by a wonderfully engaged comment stream, so it's definitely worth checking out.)

Here's a technorati search query to see what others are saying about the new standard. Wired blogs also covered the news, and comments follow.

Technorati Tags:

Energy Security Leadership Council Steps Forward, Pushing for National Energy Independence

2006-12-13T22:47:00.000-08:00

The NYT reported today that a group entitled the Energy Security Leadership Council (ESLC), is lobbying Congress and the White House to initiate a campaign to lessen the country's reliance on foreign sources of oil. The council's members hail from the transport and chemical sectors, and include Frederick W. Smith, the founder and chief executive of FedEx (an ESLC co-chair), P.X. Kelley, a retired Marine commandant (the other ESLC co-chair), and prestigious executives from Dow Chemical, Waste Management, Southwest Airlines, a former Navy secretary and the Air Force chief of staff.

The group plans to launch a television and print ad campaign to convey its message that the

must reduce its dependence on foreign oil, and hopefully initiate a paradigm shift that changes the view of oil reserves as a key strategic and economic motivator for the nation's actions.

According to the piece, the group is also begining to meet with government officials. It is pushing for better fuel economy standards for cars, SUVs and heavy trucks, specifically proposing a 4 percent annual increase in fuel economy for vehicles up to 10,000 pounds, increased drilling offshore and within the

United States

, and increased development of the ethanol and biofuels sector.

Efforts to drill in the continental US, most notably the Arctic National Wildlife Refuge (ANWR), have been met with strong opposition from environmentalists; and the debate on the sustainability and practicality of proposed ethanol industry growth is still ablaze. It is difficult to say how successful the group will be in its efforts.

Nonetheless, the membership of this group is impressive, and it has won the endorsement from several politicians. Quoted in the Times piece, is Rep. Steny H. Hoyer, a Maryland Democrat. He states, "when prominent C.E.O.s and military leaders get together to advocate an issue as important as energy security, people listen."

With eyes around the world focused on the situation in Iraq right now, and the US government's current deliberations geared toward changing a strategy that is increasingly being viewed as broken - the timing for such a well-staffed panel to step forward is not all that surprising.

Technorati Tags: Energy Security Leadership Council

Congress Renews Solar Tax Credit

2006-12-13T22:17:00.000-08:00

In the solar energy industry, manufacturers of solar energy technologies can breathe a sigh of relief. But, only for about a year.

Red Herring reports that the extension of the solar tax credit passed, under the Tax Relief and Health Care Act of 2006, as part of a 79-9 vote for extending several tax breaks. Also renewed were energy incentives for wind, biomass, geothermal, and energy-efficient commercial buildings.

The bill passing the extended solar tax credit has two provisions:

Residential Solar Tax Credit: Extends a 30-percent tax credit, created in the Energy Policy Act of 2005, for the purchase of residential solar water heating, photovoltaic equipment, and fuel cell property. Expires after December 31, 2008.

Business Solar Tax Credit and Fuel Cell Tax Credit: Extends a 30-percent business credit, established in the Energy Policy Act of 2005, for the purchase of fuel cell power plants, solar energy property, and fiber-optic property used to illuminate the inside of a structure. After December 31, 2008, the credit reverts to a permanent 10-percent level.

Joel Makower, principal at Clean Edge, a prominent clean technology consultancy, said, "every year-long extension helps, but we need a 10-year extension to create years-long certainty that the market is going to grow."

Experts in the piece agree that the extension should allow for the continued growth of large-scale solar projects in the coming year, however it calls to attention the importance of a longer-term policy. Senator John McCain states that the term of the policy impacts investors.

"If there’s only a two-year horizon, even though they’ve never failed to renew it, there’s less confidence,” he said.

The Solar Energy Industries Association (SEIA) is pushing for an eight-year extension, and there are hopes that at least something long-term will materialize given the Democratic majority inhabiting Congress right now.

Delivering a sobering dose of practical forecasting, Makower says, "if we can’t get something that simple to pass in the new Congress, there is really no hope."

See the Cleantech blog for more info.

Technorati Tags: Solar Tax Credit, Solar Power, Renewable Energy

EPA Launches Fortune 500 Challenge

2006-12-06T19:16:00.000-08:00

The Sustainable Industries Journal reports that on December 4th the EPA launched a 13-month campaign for Fortune 500 companies to double clean energy purchases from 2.5 billion kilowatt hours (kWh) in 2006 to 5 billion in 2007. Read the EPA press release here.

The campaign, called the Fortune 500 Green Power Challenge, is part of the EPA’s Green Power Partnership program. The program provides partners with tools and promotional resources to help them in coordinating and communicating renewable energy purchase efforts.

Technorati Tags: EPA, Fortune 500 Challenge, Renewable Energy

SRI in Practice

2006-11-22T18:38:00.000-08:00

The article, "No Chickening Out," in the November issue of IR Magazine profiles the head of Socially Responsible Investing (SRI) at Jupiter Asset Management, Emma Howard-Boyd. (Subscription only).

In her position, she oversees funds within six green categories, including clean energy, water management, waste management, green transport, environmental services, and sustainable living. It is her feeling that the next step in SRI will be about how companies communicate long-term issues and their impacts. She also stated that there is not enough emphasis on presenting strategic, financial data concerning the surmounting of sustainability barriers (such as energy cost increases).

However, she did mention that "information flow has improved dramatically" in the past 12 years, with quality IR communication aimed at SRI analysts and increased disclosure either in annual reports or in stand-alone sustainability reports. She singled out both the banking and retail sectors as leading this charge.

Companies that provide goods or services that improve environmental conditions or contribute to sustainable living practices fit Jupiter's criteria for their SRI funds. Banks are capitalizing on responsible lending, and supermarkets touting organics such as Sainsbury enjoy increased sales. Howard -Boyd adds that companies tend to single out SRI analysts only, yet issues such as climate change and energy costs are now "material issues," deserving the attention of all analysts.

The Government Pension Fund of Norway is itself a socially responsible investor, and it made news over the weekend after its value increased in the third quarter by $32.1 billion, the largest quarterly increase in the fund's history. The state investment fund, now formally called The Government Pension Fund - Global, is designed to support an increasing number of retirees in the country by using petroleum revenues to manage long-term, foreign investments. Norway's offshore oil industry makes it the third largest exporter of oil in the world, just behind Saudi Arabia and Russia.

Norges Bank, the central bank of Norway, manages the fund, investing the capital in bonds and equities outside of the country in accordance with protocol administered by Norway's Ministry of Finance. What sort of protocol? For one, the fund can not hold more than 5 percent of a given firm. In addition, the Associated Press reported that, "the $263 billion global fund is under strict government imposed ethical guidelines to ensure that money doesn't go to companies linked to such things as weapons production, human rights abuses, environmental damage or coruption."

The guidelines, which were imposed in 2004, have led to the exclusion of 18 companies from the fund, 12 of which are US based. The Finance Ministry acts on recommendations made by the National Council of Ethics, which periodically reviews the investments. When unethical operations cause a company to fall outside of acceptable terms, the company's shares are sold off, and the name of the company and reason for exclusion are made publicly available.

Obviously this sort of disclosure can have repercussions. Benson Whitney, the U.S. abassador to Norway said that "the stain of an official accusation of bad ethics harms reputations and can have serious economic implications." Selling off all the shares of a banned company certainly has serious economic implications too - and a couple US companies have seen their share prices drop as a result.

While these conditions clearly can provide incentives for improved corporate governance, should the fact that this is a state-owned fund call into question the very ethics of the methods used, which seem to create incentives based on penalties and negative recognition resulting from exclusion, as opposed to positive recognition resulting from inclusion? Is Norway just in its efforts to “weed” out unethical corporate entities, or is it leveraging its resources to unilaterally assume a role as a global hall-monitor, and rather unethically, impose its code of ethics on global markets?

Nonetheless, Knut Kjaer, director for the central bank's investment branch, said that the fund is being copied by a "major player," and "a lot of praise for Norway around the world" has been prompted by the fund, which is now the largest pension fund in Europe.

This state owned fund owns .5 percent of the global public equity market, making it quite influential due to its scale. In an article in the Australian, Kjaer reveals that the bigger you are, the more of an impact your investments will make, however he claims that he tries to minimize the market footprint that this fund leaves with the latest technology and direct links to stock exchanges to "cover our tracks as much as possible."

However, in the same article, he did leave a caveat for other investors to follow the lead of his fund, admitting that working alone on corporate governance doesn't create much impact. But, he stated, "it is only when we come together with other investors on common positions that we can have a real impact."

Thoughts?

Technorati Tags: SRI, Corporate Governance, Corporate Social Responsibility, CSR, The Government Pension Fund - Global

Study: The Future of Energy Costs

2006-11-15T03:26:00.000-08:00

RAND corp. completed a study commissioned by the Washington-based Energy Future Coalition that determined increased substitution of fossil fuels with renewable energy sources could reduce energy expenditures within a decade.

MarketWatch covered the news about the report yesterday.

According to the report, 6 percent of America's energy use comes from renewables, and 3 percent of that is hydropower alone. The study based over 1,500 simulations on a goal to utilize renewable sources for 25 percent of energy use by 2025, and determined we could cut 2.8 million barrels of petroleum per day, and energy cost reductions would be "modest."

Further cost declines for alternative energy technologies could allow for total energy expenditures to drop despite the increase of renewable energy useage. And in the best-case scenario delivered by the Rand report, energy costs in the U.S. could decline 3% - a $40 billion reduction.

Interestingly enough, in the conclusion of the the report it is noted that achieving emissions reductions through the increased use of renewable energy sources could be less expensive than through regulatory processes. (Read this BBC News The Green Room article contributed by Kevin Smith, Researcher for Carbon Trade Watch, who refutes the logic and environmental benefits of carbon trading to control emissions, and recalls hiccups in the EU's Emissions Trading Scheme (ETS) to maintain an incentive for the curbing of emissions. See also the altenergystocks.com post entitled, "Carbon Finance . . . The Next Bonanza" for a slightly more functional view of carbon markets and more background information.) An excerpt from the Rand report follows:

"The reduction in CO2 emissions could eliminate two-thirds of the projected increase in CO2 emissions by 2025. Expanding renewables, in short, might be considered a “no-regrets” pollution-reduction policy and climate change strategy."

Unfortunately, there are limits to all studies. Cost projections for energy expenditures varied by small percentages, however, equating to dollar amounts up to $60 billion. This could be largely attributed to the uncertain affects that increased penetration by renewables may have on the energy markets - specifically, the costs of developing renewable energy and the savings from displacing fossil fuels. The conclusion also states that utilizing renewables for the 25 percent goal can impose limited costs, and may be less costly than energy priced without renewables, ONLY if renewables costs do not escalate quickly when renewable energy reaches high penetration levels and if conventional fuel markets remain tight.

The report concedes that there is no way to know exactly how the market will react - and that point is crucial for policy makers as the renewable energy industry in the U.S. continues to grow.

Technorati Tags: Renewable Energy, Fossil Fuels, Energy Costs, Carbon Trading

Data Shows Collapse of Fish Species Emminent

2006-11-06T02:22:00.000-08:00

Recent research findings published in the journal Science on the environmental impacts of overfishing made international newspaper headlines over the weekend.

While the consequences of overfishing are not surprising, the data extrapolated from this particularly comprehensive study certainly are. The NYT reports that the relatively short timetable for 100 percent species collapse forcasted by this study is what seperates it from that of other studies which also predict biodiversity loss and environmental degredation within the oceans. The following is an excerpt from the piece:

“We extracted all data on fish and invertebrate catches from 1950 to 2003 within all 64 large marine ecosystems worldwide,” they wrote. “Collectively, these areas produced 83 percent of global fisheries yields over the past 50 years.”
In an interview, Dr. Worm said, “We looked at absolutely everything — all the fish, shellfish, invertebrates, everything that people consume that comes from the ocean, all of it, globally.”
The researchers found that 29 percent of species had been fished so heavily or were so affected by pollution or habitat loss that they were down to 10 percent of previous levels, their definition of “collapse.”
This loss of biodiversity seems to leave marine ecosystems as a whole more vulnerable to overfishing and less able to recover from its effects, Dr. Worm said. It results in an acceleration of environmental decay, and further loss of fish.
Dr. Worm said he analyzed the data for the first time on his laptop while he was overseeing a roomful of students taking an exam. What he saw, he said, was “just a smooth line going down.” And when he extrapolated the data into the future “to see where it ends at 100 percent collapse, you arrive at 2048.”
“The hair stood up on the back of my neck and I said, ‘This cannot be true,’ ” he recalled. He said he ran the data through his computer again, then did the calculations by hand. The results were the same.
“I don’t have a crystal ball and I don’t know what the future will bring, but this is a clear trend,” he said. “There is an end in sight, and it is within our lifetimes.”
Dr. Worm said a number of steps could help turn things around.
Even something as simple as reducing the number of unwanted fish caught in nets set for other species would help, he said. Marine reserves would also help, he said, as would “doing away with horrendous overfishing where everyone agrees it’s a bad thing; or if we banned destructive fishing in the most sensitive habitats.”

The FT also covered the news. The story highlighted the report's findings that fisheries could recover in three to five years in the best case scenario if restrictions were put in place. However, if overfishing continues unchecked, the possibilities for recovery are eliminated. The total area of current overfishing protections add up to less than 1 percent of the world's ocean surface.

The story mentions that the EU is holding a debate on the elimation of bottom trawling, a fishing practice involving heavy chains and nets that are dragged along the seabed, picking up everything in their path. The debate is coming ahead of a scheduled United Nations debate on global oceanic governance, which will also include the topic of bottom trawling.

MotherJones.com put up a round-up of fishery collapse issues after the NYT piece ran, including links to articles on overfishing and regulation, environmental degredation, and making educated seafood purchasing decisions.

Technorati Tags: marine biodiversity, seafood, species collapse, overfishing, fisheries

Recent News . . .

2006-11-03T15:26:00.000-08:00

VeraSun Energy (VSE.N: Quote, Profile, Research) will announce Friday a new technology that yields both ethanol and biodiesel from corn. This news comes at a time when ethanol is being looked at with scrutiny due to the negative effects that proposed ethanol production increases will have on our farmland and atmosphere.

New ethanol production technologies that either utilize byproducts in the ethanol production process, or avoid the use of fossil fuels in the production of ethanol are emerging as we wait for cellulosic ethanol production to become market-ready. Another recent innovation in ethanol production was announced on October 30th by E3 biofuels, which developed a technique for using methane captured from cow manure rather than fossil fuels to distill ethanol for commercial production applications.

On November 3rd, the Sustainable Industries Journal reported that the San Francisco Public Utilities Commission (SFPUC) contracted a study for tidal energy applications beneath the Golden Gate Bridge. According to the Electric Power Research Institute, (EPRI), San Francisco Bay is the best site in the lower United States for a tidal power plant. San Francisco Mayor Gavin Newsom has pushed the city to invest $150,000 for renewable tidal energy research within the Bay.

Altenergystocks.com reported on the state of carbon trading on October 29th, as Goldman Sachs aquired a 10.1% stake in Climate Exchange plc for about $23 million, and Morgan Stanley made public a plan to invest $3 billion into global carbon markets over the next few years.

The piece provides great background on the subject of carbon trading, identifies exchanges and players in both the US and abroad, and provides a framework for playing the market from various angles. Moderator Charles Morand followed up with a post yesterday as well, adding more news on the subject.

Finally, October's A Closer Look at Business Education from the Aspen Institute focuses on accounting, and the applications of social and environmental perspectives within the practice.

Cleantech Investment hits 9th Consecutive Quarter of Growth; A Call to Arms for Professional Services

2006-10-25T21:59:00.000-07:00

The Cleantech Venture Network announced Oct. 24th that North American venture capital investing in the cleantech category has grown for 9consecutive quarters, with a record $933 million invested in the third quarter of 2006, up 10.8% from last quarter.

Third-quarter 2006 cleantech investments showed a 120% year-on-year increase, from $425 million in the third quarter of 2005. Within the cleantech category, the energy segment led the way this quarter with $837 million. This figure is up 41% from the $594 million invested in the energy segment last quarter. And biofuel investments this quarter alone hit $512 million, while solar recieved $69 million.

The Cleantech Venture Network, a membership group that catalyzes investment, business opportunities, and relationships driving the growth of cleantech globally, also revealed that last quarter - which marked the 8^thconsecutive quarter of growth for cleantech investments, hitting a record $843 million - data showed that cleantech investing hit the no. 3 position just behind biotech and software. Excerpts from last quarter's press release follows:

"In addition to seeing a surge of venture investment in clean energy-related companies, we are seeing significant growth in other cleantech segments such as agriculture, environmental IT, transportation and water,” said Nicholas Parker, Chairman and Co-Founder of the Cleantech Venture Network. “Growth in venture flows is being matched by more cleantech mergers, acquisitions and public market activity, along with a lengthening list of major corporations placing cleantech at the heart of their competitive strategies."

In Q2 2006, cleantech surged ahead of the two previously dominant venture investment categories of Telecommunications and Medical. It now ranks third behind only Biotech and Software, indicating its shift into the mainstream, observed Keith Raab, CEO and Co-Founder of the Cleantech Venture Network. “The interest in cleantech has moved beyond investors to corporations, global media, national and state governments, academia, and the general consumer, reflecting its broad acceptance.”

As cleantech investment pulls ahead, Representative Jeff Morris, a Washington Democrat, chairman of the state House Committee on Technology, Energy and Communications, and director of the Northwest Energy Technology Collaborative (NWETC) in Seattle, explains in the October issue of the Sustainable Industries Journal (SIJ) that now is the time for market-ready energy technology companies to seek exposure to obtain funding. The piece is timed to promote the organization's November 15th Northwest Energy Technology Showcase (NETS), "the 'American Idol' of energy talent." He states that the showcase gives 5-10 energy tech companies the chance to sell themselves.

The need for media inquiries to be managed, and dialogue to be directed to relevant stakeholders comes alongside this kind of visibility, and all of this growth should be taken as a call to arms for players in the consulting, marketing and public relations fields that are poised to cash in on cleantech growth.

Technorati Tags: cleantech, venture capital

PBS Special on Campaign Finance Airs this Friday

2006-10-17T13:05:00.000-07:00

(Photo: licensed by PINGNews.com)
PBS is airing a special hour-long investigation into the "clean-election" movement on NOW with David Brancaccio. Visit the PBS NOW website to find out when the program will air in your area.

Visit Just6dollars.org to learn more about Americans for Campaign Reform, and what can be done to prevent monied interests from influencing public policy.

This Holiday Season, Give the Gift of Light!

2006-10-16T10:16:00.000-07:00

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Kudos to sustainablog for pointing me towards a campaign co-created City Hippy and Green Jenni that is promoting the idea of purchasing one compact-flourencent light bulb (CFL) for each friend, family member and co-worker that you plan on giving gifts to this holiday season.

You can pledge the number of bulbs that you plan on purchasing via the comments section on the City Hippy site. Their goal is to obtain pledges for 100,000 bulbs, which according to the site, would reduce global CO2 emissions by approximately 50,000 to 62,500 tons – the equivalent of offsetting approximately 2000-2500 US citizens or 4000-5000 UK citizens entirely for a whole year.

VeraSun upgraded by Moody's Investors Service

2006-09-22T17:39:00.000-07:00

The credit rating agency Moody's Investors Service, (MIS), upgraded VeraSun today because of the ethanol producer's solid operations in 2006, cash balance following its successful IPO in June, and favorable industry conditions created by the renewable fuels standard incorporated by the Energy Policy Act of 2005, according to the Associated Press (AP). Read the article here.

I have mentioned this standard before, (see "The Next Trend in Ethanol . . ." and "Will Big Biodiesel News . . ." in my archives), and this legislature should continue to drive the growth of the ethanol industry. Sarbanes-Oxley stimulated corporate spending for IT hardware and financial software in a somewhat similar fashion.

The AP article notes that MIS is concerned about "low barriers to entry for new competitors and the potential for capacity growth to help supply outstrip demand."

Technorati Tags: Ethanol, Moody's Investors Service, VeraSun, Renewable Fuels Standard