February 2008

Is the US for or against carbon protectionism?

by Julie Walsh on February 4, 2008

C. Boyden Gray, the U.S. Envoy to the European Union, said Tuesday (Jan. 28) that U.S. and EU adoption of carbon “offset” taxes (aka carbon tariffs) is “inevitable” if China, India, and other developing countries refuse to limit their greenhouse gas emissions.

Gray spoke to European-based reporters in a telephone news conference. As reported by Joe Kirwin of BNA (Bureau of National Affairs, Inc.), Gray said the United States and the EU would “have no choice” but to impose carbon tariffs on products from developing countries to remain competitive in the global economy. To illustrate, he cited the import penalty provisions of S. 2191, the climate bill introduced by Sens. Joseph Lieberman (D-Conn.) and John Warner (R-Va.).

Such talk can only encourage European countries, which are considering a carbon tariff proposal put forward by the European Commission, to restrict trade and impede development in poor countries.

It is unclear whether Mr. Gray was speaking for the Bush Administration or just giving his own opinion. Only two weeks ago (January 17), U.S. Trade Representative Susan Schwab warned that “attempting to force others to act on climate change through trade saber-rattling carries enormous risks.” She characterized measures like Lieberman-Warner as “threats to the global trading system—a system that has delivered prosperity to billions around the world.”

The United States—for very good reasons—declined to ratify the Kyoto treaty. U.S. officials can’t go around calling for carbon tariffs on products from China and India without building a case for the EU and Japan to slap carbon penalties on U.S.-made goods.

Two things have become painfully obvious. First, Kyoto cannot actually reduce global emissions—much less stabilize atmospheric CO2 levels—unless China, India, and other key developing countries also limit their emissions. Second, the developing country exemption creates strong incentives for energy-intensive industry, jobs, and carbon emissions to migrate from carbon-constrained countries to China, India, and other emerging industrial powerhouses.

Bill Clinton, Climate and the ‘Instanet’

by Julie Walsh on February 1, 2008

in Blog

Much of the power of the Web lies in speed and reach. But those same properties are the source of its greatest failing as well: the tendency to spread faulty assertions instantly and widely. Maybe it’s time for a “slow blog” movement, just as there’s now a slow food movement — and even a slow life movement, as described in The Times this week.

ArcelorMittal to restart Liege blast furnace as it strikes deal on CO2 quota

by Julie Walsh on February 1, 2008

in Blog

Steel maker ArcelorMittal has reached an agreement on CO2 quotas at its Liege plant and promised to restart its blast furnace on the condition of the granting of a 'polluter's permit', Agence France-Presse reported, citing Belgian government sources.

The dark ages: Electricity in South Africa

by Julie Walsh on February 1, 2008

in Blog

South Africa's power crisis is having wider repercussions

AT THE big Sandton mall in northern Johannesburg, idle shoppers stroll in darkness. They have been caught in one of the many blackouts that have plagued South Africa for three weeks. Shops are closed, unable to open their tills or process credit cards. Ice-cream shops watch their merchandise dissolve; food stalls are unable to offer coffee or anything hot to eat. In Cape Town a power cut trapped tourists in the cable car that goes up Table Mountain, and in Pretoria angry commuters whose trains stopped running set them on fire. In Johannesburg, which is congested at the best of times, the roads become gridlocked when the traffic lights go out.

Most shocking of all, the country's largest gold, platinum, coal and diamond producers shut down their underground mines on January 25th, after being told that their electricity supply could not be guaranteed. Five days later, having been promised a stable supply, they resumed production. But they will have to limit their power consumption to 90% of the usual level. On January 29th the authorities said power cuts and rationing would continue until July.

The impact is also felt beyond South Africa's borders. Eskom is rationing the electricity it exports to Mozambique, Zimbabwe, Namibia and Swaziland. The interruption of mining has pushed up the prices of gold and platinum. The crisis is likely to affect global platinum markets, where supply has been tight for a few years, particularly: South Africa produces over 75% of the world's supply. Carmakers, which buy over half of global platinum production for use in catalytic converters, must be praying South Africa will soon emerge from the darkness.

Corn on the Mob

by Julie Walsh on February 1, 2008

in Blog

Indonesia is a land in turmoil, home to massive volcanoes, tsunamis, and earthquakes. On Monday, January 14, it experienced a brand new type of disturbance, the world's first food riot caused by another nation pandering to the global warming mob. Indonesians took to the streets, demanding that their government to do something about the price of soybeans, a dietary staple.

All over the world, food prices are on the rise. For most of the late 1990s and up until 2005, the price of beans on the Chicago Board of Trade had remained stable at about $5 a bushel. Since then, they have shot up over 150 percent, to around $13. Corn has doubled, to $5. Wheat prices have tripled.

Carbon trading must be globally regulated

by Julie Walsh on February 1, 2008

in Blog

Simon Linnett, Executive Vice-Chairman of Rothschild, has called for a new international body, the World Environment Agency, to regulate carbon trading.

In a recently published paper, Trading Emissions, for the Social Market Foundation, Mr Linnett argues that the International problem of climate change demands an international solution.

Unless governments cede some of their sovereignty to a new world body, he says, a global carbon trading scheme cannot be enforced and regulated.

Czech president calls EU climate measures ‘tragic mistake’

by Julie Walsh on February 1, 2008

in Blog

Right-wing Czech President Vaclav Klaus slammed the EU's sweeping new measures to fight climate change as a "tragic mistake" in an interview with a German newspaper on Thursday.

"I believe that our government and others will stand up against these bureaucratic ideas," Klaus told the Handelsblatt business daily.

"This package is without doubt a tragic mistake, a misunderstanding of nature and an unnecessary limitation of human activity," the outspoken Eurosceptic leader added.

"For me it is almost a tragedy."

 

Hurricane Hysteria Revisited

by Julie Walsh on February 1, 2008

in Blog

Will global warming increase hurricane activity? Two studies published in the last week arrived at opposite conclusions.

A link between warmer sea surface temperatures and increased North Atlantic hurricane activity “has been quantified for the first time,” according to a study by University College London researchers that was published in Nature (Jan. 30). They claim to have associated a 0.5 degree Celsius increase in sea surface warming with a 40 percent increase in Atlantic hurricane activity during 1996-2005 as compared to the average activity during 1950-2000.

ENERGY CRISIS IN SOUTH AFRICA

by Julie Walsh on February 1, 2008

An email from Will Alexander [alexwjr@iafrica.com], Professor Emeritus, Department of Civil and Biosystems Engineering, University of Pretoria

South Africa is experiencing an energy crisis that has all the dimensions of a national disaster. Last Friday all South Africa's gold, platinum, diamond and some coal mines closed. This was because of the dangers to miners during unexpected power failures. Energy-demanding ventilation and dewatering are critical requirements for our mines. Large energy-consuming aluminium and other smelters have closed down. Tens of thousands of workers are out on the streets. Gold and platinum account for about 25% of South Africa's exports. Losses are estimated to exceed R200 million per day from these sources alone.

Our only energy supplier is the semi-state body Eskom. The mining industry uses 12% of Eskom's capacity, accounts for 7% of the economy, 30% of exports and 25% of foreign exchange earnings.

This is only one of the consequences of the energy crisis. There are many examples of how the crisis is affecting all aspects of life in this country. Our national economy has already been adversely affected. On two occasions I visited local shopping centres. The lights were out, doors were closed, and the staff were waiting in the corridors for the power to come on again.

In order to overcome the problem, the authorities intend imposing severe reductions in electricity use. These will be in place for the next five years at least. The reductions include industries (10%), commercial use (15%), shopping centres and hotels (20%), large office complexes (15%), agriculture (5%) and household use (10%). The target is the reduction of national energy demand by 10% to 15%. No mention is made of the mining sector or of the natural growth in demand.

The relative use of electricity of the various sectors is as follows: households (35%), industry (35%), mining (12%), commercial use (9%), export to neighbouring states (4%), agriculture (3%) and transport (2%). The economies of our neighbouring states will also suffer.

I was directly involved in the imposition of water restrictions during the severe drought of the 1980s. These were very difficult to implement. The control of electricity use will be even more difficult. Voluntary reductions on the required scale will not be achieved. It will take at least a year to implement enforceable measures.

Other long-term measures are proposed. They include the compulsory use of energy-saving light bulbs and the installation of solar water heaters. It is not a coincidence that these restriction measures have long been proposed by climate change activists. They are also the basis for South Africa's support for internationally enforceable and economically damaging greenhouse gas control measures.

Now the South African public will directly experience the consequence of these measures long proposed by climate alarmists. There is little prospect of South Africa meeting its goals of halving unemployment and poverty by 2014. Economists are also predicting that we will not achieve the targeted 6% annual economic growth within the foreseeable future.

The South African authorities have acknowledged that the crisis is the result of not taking heed of warnings issued in 1998 that this would happen if our power generation network was not expanded to meet the growing demand. There is some suspicion that the delay was also the result of pressures from environmental activists.

This is a very good example of what will happen to the fragile economies of other developing countries with large disadvantaged populations. It also demonstrates the consequences when developing countries are forced to comply with compulsory reductions in greenhouse gas emissions imposed by developed counties such as the EU for example.

The UK sent Nicholas Stern and David King to South Africa in order to persuade the South African authorities to reduce our greenhouse gas emissions and to persuade other developing counties to follow suite. Now we see the result.

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