Green economy

Solar panel installationSolar panel economics has changed as mass production has made them more affordable, though subsidies have also been cut

When the global bank HSBC came to name its latest report on the green economy, “Glimmer amid the gloom” was its optimistic choice.

In the midst of a worldwide recession, 2010 kicked off with a global failure to reach a deal on measures to tackle climate change.

By the year’s end, hopes were so low that a limited and non-binding agreement at a follow up conference was almost universally praised.

Yet HSBC may be right to identify a glimmer behind the headline failures.

Investment in clean energy and low carbon technology was hit twice over.

The economic downturn reduced the amount of money available, and huge uncertainty over the rules meant people did not want to invest what was left.

In Europe, cash strapped governments went back on promised subsidies. Spanish solar subsidies in particular were heavily cut.

“That had massive shockwaves,” according to James Vaccaro, head of investment banking at European ethical bank Triodus.

According to the International Energy Agency (IEA), the failure of the 2009 Copenhagen conference to generate investment will increase the cost of limiting climate change to 2 degrees Celsius by about $1 trillion (£640bn).

The election in the UK led to further uncertainty.

Despite new measures, since then accountants Ernst and Young estimate there is now a funding gap between planned investment and what is needed to meet government targets of around £330bn ($516bn).

The 2010 Cancun conference promised $100bn globally, with no word on where it was to come from.

“The big, exciting stuff that was going to come out of a very successful [global conference] didn’t happen, but you have steady growth in a number of technology areas”, says a philosophical Ben Sykes, director of innovation at the UK’s Carbon Trust.

“This year will be a litmus test for the electric car”

Richard Bremner Clean Green Cars

The recession, he says, has driven larger firms to look at energy efficiency in unlikely areas. The trust is currently working on a new way to freeze dry Jelly Babies.

For Alan Thompson, consulting engineers’ Arup’s UK director of energy, it is a move away from “green bling” to things that can be commoditised and rolled on scale by well known firms from other sectors.

His firm is working on a way of reducing the cost of offshore wind through new floatable foundations and new ways of quickly calculating the viability of wind farms.

It is a view shared by some investors.

“The learning curve has accelerated during the crisis, particularly in solar,” says Nick Robins, head of HSBC’s climate change centre of excellence.

McLaren MP4-12CLighter cars also help cut emissions

In the UK, solar is the boom area of the green economy.

The government’s feed-in tariff has prompted more than 10,000 new solar panels to be installed so far with expectations of far more in the future.

In Europe, generous subsidies are being withdrawn, causing problems for installers. But at the same time, the economics of the panels have changed completely thanks to scale.

“The cost has halved in the last 18 months,” says Andrew Lee, head of sales at Sharp Solar UK. The company is the largest UK manufacturer and plan to create new jobs this year.

Most panels, of course, are made in China, which is now the leading producer of solar photovoltaic cells.

Thanks to large new factories in china, “grid costs are now equivalent to nuclear in the US” – and falling, according to Anthony Froggatt, an energy expert at think tank Chatham House, the Royal Institute of International Affairs.

Electric cars were perhaps the most glamorous hope of the green economy.

“China knows it has an issue with energy security, in particular oil”

Anthony Froggatt Chatham House

Econogo makes electric scooters The firm won awards and plenty of coverage.

But the firm’s director, James South, says buyers were not as keen as the press.

“We found that it was still a novelty, a gadget,” he says.

The company has closed its shop and is now looking instead at fleet sales.

“This year will be a litmus test for the electric car,” says Richard Bremner, from the website Clean Green Cars, who worries about range and cost.

But 2010 has already seen big developments in petrol and diesel car efficiency.

“The car industry has taken a really big hit, but they have proceeded more or less unabated with their plans,” towards lower carbon vehicles, says Mr Bremner.

Even F1 manufacturer Mclaren says it is pioneering a new type of carbon fibre chassis in its latest sports cars – it says has reduced the cost of that type of light weight build by 90%.

The cost has gone down so far that BMW, under pressure to reduce emissions, plan to release a car made entirely from carbon fibre – dubbed the Megacity.

Green china?

For the Chinese government, reducing vehicle fuel consumption is pressing.

A cyclist in Beijing smogThe shift from bicycles to cars created a big pollution problem in China

“China knows it has an issue with energy security, in particular oil,” says Mr Froggatt.

Indeed, China has seen the strongest increase in investment in clean technology worldwide and is already a leader in solar and wind technology.

Nick Robins from HSBC says that electric cars and other low carbon technologies are next. The government wants these “high value” sectors to account for about 15% of economic output, or GDP, by 2020.

The message is filtering down, according to Ann Wang, a young entrepreneur in China who is on the board of the China Youth Climate Action Network.

“All of a sudden you see green signs everywhere,” she says.

“Every car is trying to say ‘we’re eco-friendly, environmental’. You really feel this big change.”

A survey by a social networking site P1 found most of its wealthy members wanted safer, “more natural” beauty products, for example.

Other “green lifestyle” businesses, such as those selling organic vegetable boxes, have also sprung up in Shanghai.

But despite this, Ms Wang worries many do not yet understand the details of reducing emissions.

China is not the only country worrying about oil.

The price ended the year well above IEA forecasts, close to levels seen before the crash.

Anthony Froggatt admits that so far higher oil prices have not prompted an increase in actual investment – outside china – but he argues the transition away from oil will have to happen.

“The question is how much society is prepared and has started to put in place the infrastructure, prior to significantly higher price signals”, he says, from ever rising oil prices.

But a switch away from oil need not mean reduced emissions.

In the US, apparently plentiful shale gas may well replace oil, only reducing emissions slightly. In China, clean electric cars may continue to be powered by plentiful Chinese coal.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Boarding the Titanic?

Euro cow in TallinnTallinn’s ‘sacred cow’ offers an excellent exchange rate as Estonians trade their kroons for euros
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In the square of Tallinn’s Tammsaare park, a queue of cold but curious Estonians stretches round in a small circle, waiting to get their turn in front of a giant plastic cow.

The “sacred cow”, as it’s called, is a new work of art apparently designed to symbolise the importance Estonian policymakers attach to membership of the eurozone.

But that is not what is drawing the crowds on this chilly winter’s day.

For a short while only, this cow will exchange 1 old Estonian kroon for one freshly minted Estonian euro coin.

That is about 15 times better than the official exchange rate.

The Kroon goes in the cows mouth and then, as if by magic a new euro coin appears from the cows behind.

It is not completely clear what the artist is trying to say and the cow has apparently suffered repeated mechanical problems.

Money Exchange, TallinnEstonians are fear being short changed by their country’s euro entry

Fortunately, this is not the only way to get hold of the new currency.

Estonians are proud of their country’s IT infrastructure. Tallinn was the original home of Skype, after all, and all agree the introduction of the new currency has gone off without a hitch.

But there is nostalgia for the outgoing kroon, which symbolised hard won independence.

Estonians will miss their “beautiful” currency, which featured, amongst others, the countries leading chess players.

The biggest problem appears to be the new euro coins’ single-digit figures.

“The change seems so little,” says Elen, a government worker.

Others complain they will need a new wallet to fit the change.

To help the transition, the government issued almost every household with a “euro calculator”, a move not welcomed by critics such as economics professor Ivar Raig.

“What are they saying about Estonians?” he asks. “That we cannot use a normal calculator?”

The idea behind the calculator was to ensure prices are not marked up – as has happened in the past when other countries have adopted the single European currency.

With an exchange rate of 15.64 kroons to the euro, almost nothing in Estonia is now priced in round numbers.

Inflation tied to the change is one worry, but there are more serious concerns.

Boat in the streets of TallinnSome Estonians say adopting the euro is a bit like boarding the Titanic

The kroon has never been a flexible currency in its 18 years, as it has always been pegged to either the Deutsche Mark and then the euro.

Nevertheless, insists Professor Raig, the kroon has helped shelter Estonian companies from excessive competition.

“Companies thought it risky to come [and sell] in Estonia and this meant that small producers had work,” he says.

Despite the peg there was always the option to devalue if the government wanted to.

The euro also comes with rules designed to limit inflation, which Estonia has struggled with in the past.

With Estonia now the poorest country in the eurozone, some say limiting inflation will limit growth.

And then there are the problems in the eurozone itself.

Posters around Tallinn suggest Estonia has just purchased the last ticket to board the Titanic.

Others compare the new currency to the Soviet era Russian rouble.

The minister of finance, Jurgen Ligi, accepts that inflation is inevitable if Estonia is to catch up. The country’s economic growth rate has accelerated of late and the government forecasts around 4% in the next year.

“We can’t really avoid a little bit of inflation”, he admits, “but at the same time we are much more experienced after the crisis and such a consumption and loan boom can’t happen again.”

Indeed, Estonia suffered as much as anyone, seeing its GDP fall by 14% from its peak.

Despite that, the government refused to devalue the currency.

Mr Ligi believes that as most of Estonia’s exports also relied on imports it would have had little benefit.

But he accepts his new currency is in need of work – even adopting the boat metaphor favoured by his opponents.

“For us you have to understand there is no fleet on the sea, we have only one boat, we have to try and make it better and if it sinks, it sinks anyway. But we have all the knowledge how to avoid it.”

Across town from Mr Ligi’s soviet era ministerial building sits the rather more laid back home of Skype, the internet telecoms company.

The company was founded in Estonia, and maintains its largest office here with more than 400 staff.

Their general manager in Estonia, Sten Tankivi, says he thought the change would be mostly psychological – convincing investors that Estonia is indeed a safe country in which to invest.

Skype is Estonia’s most famous start up, but it is by no means the only one.

As the economy has recovered in the last year, the country has once again started winning awards for its new IT firms.

This is why Mr Tankivi shares his finance minister’s optimism about his country and its abilities.

“Estonia as a country is a start-up,” he says.

“There are no limits. You can achieve anything and make things happen.

“Those sorts of characteristics are important, besides economic issues.”

As the euro enters another testing year, European governments may well want to adopt the Estonian mentality.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

NI Water chief MacKenzie to quit

Water container being filledThousands of people were left without a home water supply during the crisis
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The board of Northern Ireland Water is meeting on Tuesday, amid increasing speculation about the future of its chief executive, Laurence MacKenzie.

The directors of the government-owned company are meeting to examine lessons learned from the water supply crisis.

Tens of thousands of households were affected over the Christmas holidays.

Northern Ireland Water has confirmed that just 158 properties are still without water, although it is still not clear when they will be reconnected.

Forty-seven are in the west of Northern Ireland and 111 in the east. Many are thought to be on higher ground.

As chief executive of the company, with a remuneration package of about £250,000, Laurence MacKenzie has been the focus of media attention during the crisis.

Asked if Mr Mackenzie had offered to resign in the past few days, a company spokesman would only say the chief executive’s focus is to continue to deal with the incidents around water shortages.

He added that Mr McKenzie had made clear that issues in relation to his future would be considered when the incident was closed and that point had not been reached.

Mr Mackenzie, along with other senior managers, is due to appear before Stormont’s regional development committee on Thursday.

The committee wants to know who is going to take responsibility for the crisis that left 40,000 households without water. The utility regulator is due also to meet with senior managers this week.

Helicopter

NI Water has drafted in a police helicopter and postal workers to identify the remaining burst pipes.

The police helicopter is fitted with thermal imaging technology to help check trunk mains in remote areas, while postmen and women have agreed to report any leaks they find on their rounds.

Yellow warning cone on corridorIncidents were reported at hundreds of NI schools over the Christmas period

Schools

Eleven schools due to reopen after Christmas were closed on Tuesday due to damage caused by flooding.

It had been feared the number would have been higher after hundreds reported incidents over the holidays.

However, round-the-clock work to repair burst pipes at schools has been largely successful.

Northern Ireland Education Minister Caitriona Ruane said maintenance staff “played a huge role in keeping systems going” in schools.

Nigel Frith, the principal of Drumragh College in Omagh, said it was frustrating that the school had had to close on Tuesday.

“We hoped we would be ready, but as we looked at the situation yesterday we saw that we just couldn’t be sure enough that we had found all the leaks yet,” he said.

The school has only been in the building for two years and had a frost protection system in place, but had still suffered serious damage due to the weather.

“A number of our maintenance officers worked right over the Christmas period – missed their Christmas dinners – to ensure that schools would reopen”

Tony Murphy Southern Education and Library Board

“The flooding is fairly serious. There are nine different bursts within the kitchen alone and in the technology block unfortunately it’s come down over a number of computers,” Mr Frith said.

The Southern Education and Library Board managed to get all the schools under its control ready to open – 85 of which were damaged over the Christmas break.

The chief executive of the board, Tony Murphy, said an emergency plan was in place for the impact of the severe weather.

“A help desk was available 24/7 right throughout the period and I must compliment the schools, the principals, the caretakers and the local community,” he said.

“Our first callout was at 6.20am on Christmas eve and a number of our maintenance officers worked right over the Christmas period – missed their Christmas dinners – to ensure that schools would reopen.”

Schools with problems have been asked to contact the department between 0900 GMT and midday on 02891 279480, 02891 279481 and 02891 279473.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Minister angry at rubbish backlog

Pile of uncollected rubbish bags in BirminghamThere are fears that piles of waste will encourage rats and put health at risk
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A government minister has accused some councils in England of showing “complacency” after large backlogs of rubbish built up during December.

Local Government Minister Bob Neill said some people might “wonder if their council views the rubbish collection as just a favour, not a right”.

He has written to council leaders asking them to show how services will be run better over the Easter holiday.

Councils have insisted they are working hard to clear the backlog.

Some areas, including Birmingham, Exeter, north London and Merseyside, have not had a collection for four weeks.

They have blamed severe winter weather for disrupting bin lorry schedules, and said the problem had been exacerbated by the festive break and the increased amount of waste produced by households over Christmas and New Year.

There are concerns the situation could encourage rats and cause other health hazards.

But the leader of Labour-led Exeter City Council, Councillor Pete Edwards, told the BBC on Tuesday he did not believe that piles of rubbish in the street was “a major problem”.

Mr Neill said a regular bin collection was “one of the most basic services council taxpayers pay for” and there was “widespread public concern at the extent of the disruption”.

“It can only be a matter of time before rats, foxes and other vermin are attracted”

Robin Mueller From Hitchin, Hertfordshire

He wrote: “It is particularly troubling that some press reports could appear to suggest a level of complacency and a failure to address the seriousness of the issues.

“Families who have been told to stockpile their rotting refuse inside their own homes by councils are entitled to wonder if their council views the rubbish collection as just a favour, not a right.

“And the public deserve a better answer than ‘this is not a major problem’.”

Mr Neill called on Mr Edwards to apologise for his “irresponsible and insensitive” remarks.

He also announced government plans to introduce measures in the coming months to help all councils in England bring back weekly rubbish collections.

Under the previous government, councils were encouraged to save money with fortnightly collections and were threatened with being marked down by the Audit Commission – which monitors council spending – if they ignored that guidance.

A spokesman for the Department of Communities and Local Government said it would not force councils to reinstate weekly collections, but had scrapped the Audit Commission and removed all the incentives to cut services.

Council staff in some areas have worked extra shifts over the weekend and on bank holiday Monday, and casual workers have been called in to help.

Pile of uncollected rubbish bags in BirminghamBinmen in Birmingham have been working to rule

But BBC News website readers have expressed their concern at the situation in their areas.

Robin Mueller, in Hitchin, Hertfordshire, said his food waste had not been collected in nearly six weeks.

“It is disgraceful that our council did not make any contingency plans for a catch-up service during this time,” he said.

“Many people’s bins in our street are overflowing and following the thaw it can only be a matter of time before rats, foxes and other vermin are attracted.”

Sarah Turner, from Wallasey, Merseyside said: “My rubbish is in a small mountain outside our house. I have two young children, one aged 20 months and the other three, both still in nappies. It’s a health hazard.”

In Birmingham, the situation has been made worse by industrial action, which led to binmen walking out on 20 December in a pay dispute and subsequently working to rule.

Now staff have voted to take two further half-days of strike action in mid-January as part of a dispute over equal pay for male and female staff.

A Local Government Association spokesman said the exceptional weather had been the major factor hitting councils.

“They have done a terrific job trying to keep up the service and are working extremely hard to clear any backlogs,” he added.

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Green ham and eggs

An 'Enviropig'

The BBC’s Jeremy Cooke has had rare access to some genetically modified Enviropigs in Canada

In a small complex of nondescript barns set in the flat, snow-covered fields of Ontario is a scientific project which, some argue, represents the new frontier of a technology that could benefit millions of people around the world.

For others what is happening here is weird, dangerous science.

The pigs they are breeding could be among the first genetically modified farm animal to be approved for human consumption.

“”I am very worried and I think people around the world should be worried about what’s happening in North America”

Lucy Sharratt Anti-GM campaigner

The huge controversy over the introduction of genetically modified crops is well documented, but this seems to take that debate a step further, and into even more troubled waters.

The project here is called Enviropig. The animals inside the clean, warm barns look like normal pigs and behave like normal pigs, but they are living, breathing wonders of modern science.

Each one contains genes from mice and E.coli bacteria, which have been inserted into their DNA with absolute precision.

Those genes make a small but important difference to the way these pigs process their food.

Ordinarily, pigs cannot easily digest chemicals called phosphates. That means that the stuff that comes out of the back end can be toxic and damaging to the environment. The phosphates are easily washed into waterways, where they can produce a hugely fertile environment for plants. But the plants grow so rapidly that they choke the stream or river and cause huge damage to the ecosystem.

THE ENVIROPIG

Between 50% and 75% of the phosphorus present in cereal grains including corn, soybeans, barley and wheat is present in an indigestible compound called phytate that passes through the pig’s digestive tract. The Enviropig is a genetically enhanced line of Yorkshire pigs with the capability of digesting plant phosphorus more efficiently than conventional Yorkshire pigs.

Source: University of Guelph

The genetic modification enables these pigs to digest phosphates, which means they are less polluting and cheaper to feed.

Professor Rich Moccia of the University of Guelph is proud of what has been achieved.

“It’s the forefront of discovery in the scientific community. It’s one of only two animals right now using this kind of technology. It really is mind-boggling when you think of it.”

But it is controversial. To those who have campaigned so long and hard against the introduction of Genetically Modified (GM) crops, the notion of genetically engineered animals, such as Enviropig and fast-growing GM salmon, is a new front in a long war.

In Toronto, the Big Carrot supermarket is among the few GM-free outposts in North America. They have been fighting for years to hold back the tidal wave of genetically modified produce.

For anti-GM campaigner Lucy Sharratt, the very notion of transgenic animals is a nightmare.

Jeremy Cooke and Lucy Sharratt

Lucy Sharratt, of the Canadian Biotechnology Action Network, discusses her concerns

“This is an absolutely critical time when North America is at the very centre of the global conflict over genetically engineered animals – to break open a whole new area of application of this technology, which we had never imagined would be possible.

“I am very worried and I think people around the world should be worried about what’s happening in North America,” she says.

Clearly the debate remains deeply polarised. But there are also some indications that the debate may be slowly shifting.

Dr Mart Gross, of the University of Toronto, used to oppose the idea of GM crops and animals. Now he has changed his mind. Feeding the human population, he says, must come first, and GM animals and plants may help.

“We need to double food production,” he says. “We currently have a global population of almost seven billion and we are looking at nine, 10 or 11 billion by 2050.

“Where is that food going to come from? We have to produce more from less.”

The inventors of Enviropig know that it is by no means certain that government regulators will ever approve GM animals for human consumption.

But the massive challenge of feeding a rocketing global population, and doing it in a sustainable way, could shift the debate and ultimately dictate whether Enviropigs end up on our dinner plates.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Guatemala bus bombing toll rises

Firefighters beside the scorched bus and the covered body of one of the victims in Guatemala CityGuatemala’s criminal gangs often target public transport
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An explosion on a bus in Guatemala City has killed at least five people and left more than a dozen others with serious burns.

Police think the blast was caused by a home-made fire bomb which was either thrown onto the bus or left on board, causing it to burst into flames.

Two of the people burnt to death were children.

Public transport in Guatemala is subject to regular extortion by violent criminal gangs.

Local human rights groups say more than 150 bus drivers and their assistants were murdered in 2010.

Guatemalan police estimate that bus drivers paid out more than $1.5m (£970,000) in extortion money to organized crime groups over the course of the year.

They say arrested and charged more than 500 people with trying top extort money from businesses.

Guatemala has one of the highest murder rates in the world, with many of the killings blamed on organized criminal gangs that have links to Mexico’s violent drugs cartels.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Gbagbo ‘agrees Ivory Coast talks’

Ouattara supporters in Abidjan, 3 JanMr Ouattara is holed up in a hotel in Abidjan

Ivory Coast’s Laurent Gbagbo has agreed to negotiate a “peaceful end” to his country’s crisis without preconditions, regional leaders say.

The chairman of the Ecowas regional group said Mr Gbagbo had also agreed to immediately lift the blockade around the temporary headquarters of his presidential rival Alassane Ouattara.

The UN regards Mr Ouattara the winner of November elections but Mr Gbagbo, the incumbent, refused to cede power.

Ecowas has threatened to force him out.

The BBC’s John James in Ivory Coast’s business capital, Abidjan, says it is important not to over-emphasise the importance of Mr Gbagbo’s statement.

Mr Gbagbo has given no indication he is willing to step down, our correspondent says.

Mr Ouattara, who is holed up in a hotel protected by UN peacekeepers, has said he is willing to talk, as long as the internationally agreed election results are accepted by Mr Gbagbo.

The chairman of the Ecowas Commission, James Victor-Gbeho, said after an extraordinary session of members in Abuja, Nigeria: “Laurent Gbagbo agreed to negotiate a peaceful end to the crisis without any preconditions.

“He also pledged to immediately lift the blockade around Hotel du Golf, the temporary headquarters of Mr Alassane Ouattara, the president-elect.

“On his part, Mr Alassane Ouattara indicated his willingness to ensure a dignified exit for Mr Gbagbo provided the latter accepted the outcome of the presidential election as declared by the independent electoral commission and certified by the United Nations.”

The statement followed a visit to Ivory Coast by Presidents Boni Yayi of Benin, Pedro Pires of Cape Verde and Ernest Bai Koroma of Sierra Leone – representing Ecowas (Economic Community of West African States)

It was their second trip to Abidjan in less that a week. On Monday they were joined by Kenyan Prime Minister Raila Odinga, representing the African Union (AU).

President Goodluck Jonathan of Nigeria had earlier described the situation as a “stalemate”, adding: “Don’t expect that if there’s a major crisis in a country that we just jump in… and the matter is resolved.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Baby Rose born at 11.11 on 1.1.11

Baby Rose Evie Gretton who was born at 11 minutes past 11 on 1.1. 2011Baby Rose was born at 11 minutes past 11 on 1.1.2011
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The parents of baby Rose are hoping she will bring them good luck due to the “auspicious” timing of her birth at 1111 GMT on New Year’s Day.

Rose Evie Gretton was one of 11 babies delivered at Burton’s Queens Hospital in Staffordshire on 1.1.2011.

She was due on New Year’s Eve but was born the following day weighing 8lbs 3oz, her mother Kacey said.

Her father Neil said they already considered themselves lucky parents because Rose was born a healthy baby.

Mrs Gretton added: “We were quite lucky really to have a baby born on New Year’s Day with the timing being all the ones, so we’re hoping she’s going to bring us good luck. I’m sure she will.”

Midwife Sarah Gudgin said: “All the babies born are special for the parents. They’ll never forget will they, New Year’s Eve, New Year’s Day – but very expensive parties in years to come.”

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.