News that last month was the world’s hottest
June on record provided another reminder that urgent global action is needed to
combat climate change. But in a backwards move this week Australia axed its
carbon tax on political grounds, despite widespread criticism from analysts and
the complete absence of a credible alternative strategy. Meanwhile, the EU
missed the chance to show bold leadership on energy efficiency as it settled on
a voluntary target of 30% by 2030 - well short of the 40% advocated by Germany.
Europe’s Climate Commissioner Connie Hedegaard hailed the deal as good news for
the climate and bad news for Mr Putin. But the Russian leader is unlikely to be
quaking just yet: Europe's long-running failure to impose tougher sanctions
stems largely from the continent’s heavy reliance on Russian gas
imports.
In the UK, there was better news. Months of
internal wrangling ended with the government committing to the fourth carbon
budget despite treasury efforts to weaken it. This budget legally binds the
country to reduce emissions in 2023-2027 by 50% compared to 1990 levels. The
Climate Change Committee however warned that the first budget was met only with
a combination of policy intervention and a huge economic recession, and that
stronger measures will be required to meet future budgets.
The growing economic cost of fossil fuels was
highlighted this week in an article by Ambrose Evans-Pritchard in the Telegraph.
While the industry pours money into maintaining production of high-cost
resources like tar sands, deepwater and shale, the cost of renewables is
plummeting – in Denmark wind will become the cheapest option for power by 2016.
Many analysts expect companies to end up sitting on reserves of fossil fuels
they have paid for but cannot sell - also known as stranded assets. The
industry’s problem is that cheap conventional crude oil peaked in 2005. No
wonder they’re so keen to frack in Britain – they’re hanging on for dear
life.
Three things you shouldn't miss this week
- Chart: The
combined average temperature over global land and ocean surfaces for June 2014
was the highest on record for the month, at 0.72°C (1.30°F) above the 20th
century average of 15.5°C (59.9°F). :
Source: NOAA
- Article: Fossil
industry is the subprime danger of this cycle – The cumulative blitz on
energy exploration and production over the past six years has been $5.4
trillion, yet little has come of it.
- Article: Wind
Energy Cheapest Form of Power, According to Denmark - The Danish Energy
Agency found that onshore wind plants coming online in 2016 will cost around
$.05 per kilowatt hour.
Energy Transition
EU
agrees to improve energy efficiency 30% by 2030 - EU climate chief says
energy-saving deal is not good news for Putin, but others hoping for 40% target
are disappointed.
Germany
is most energy efficient major economy, study finds - Ranking places Mexico
last and voices concern about the pace of efforts by the United States and
Australia.
Cities
'should generate green energy', says think tank - Local authorities and
customers could reap the benefits of renewable energy subsidies, a report by
IPPR suggested.
Oil & Gas
Oil
Demand Rising Fastest Since 2010 for IEA on China - World oil consumption
will increase next year by 1.4 million barrels a day, the agency said in its
first monthly report to assess 2015…
Oil
and an independent Kurdistan - The map of the Middle East as we know it
today is 90 years old. It is now being over written by events on the
ground.
Russian
oil production expected to drop - An anticipated drop in oil production by
2016 is expected to hurt the Russian economy, the Russian Finance Ministry said
Monday.
U.K.
Seeks Tax Advice From Oil Industry on North Sea Investments - The
consultation, to be held over 12 weeks, will be aimed at maximizing the value of
the U.K’s oil and gas…
U.K.
Shale Regulation Inadequate for Safety, Report Says - Shale gas exploration
in the U.K. lacks adequate regulation to protect public health and the
environment including water shortages, according to a report by
scientists.
West
Sussex county council turns down shale gas exploration bid - Refusal of
Celtique Energie thought to be the first time a council has rejected a planning
application by a shale company.
Europe
braced for any gas crisis as Russia sanctions escalate - LNG terminals in
Britain and the Continent currently operating at just 20pc of full
capacity.
Electricity
The
EU's nuclear links with Russia - There is a significant role in Europe's
energy sector for Russian nuclear supplies and the potential for significant
disruption in the EU.
Germany,
UK and Poland top ‘dirty 30’ list of EU coal-fired power stations - Report
warns policymakers against allowing extensions to the lifetimes of coal
plants...
UK
Grangemouth
to clinch US shale deal with £230m Government backing - The Scottish based
refinery wins loan under UK Guarantee Scheme which will ensure it can import
cheap ethane from America.
A
detailed look at why the future of UK energy is so hard to predict - The
Guardian reported National Grid forecasting energy prices will double by the end
of the decade. Other media reported the grid operator found that UK shale gas
could supply much of our future needs… What’s going on?
Cabinet
reshuffle: Chancellor's allies Matt Hancock and Amber Rudd join energy
department - Matt Hancock replaces Michael Fallon as energy minister while
Amber Rudd takes on Greg Barker's climate change brief.
New
Environment Agency chairman has fracking links - The government has been
criticised for appointing a former business adviser to David Cameron who has had
corporate links to fracking …
Government
cuts Green Deal cashback after just six weeks - The cashback available to
households has been reduced from £7,600 to £5,600 following huge
demand.
Government
accused of setting 'meaningless targets' on fuel poverty - Critics were
quick to accuse the Coalition of “setting meaningless targets” and ignoring the
plight of pensioners.
Climate
Australia
votes to repeal carbon tax - Australia's Senate has voted to repeal the
carbon tax, a levy on the biggest polluters passed by the previous Labor
government.
Climate
Change Committee blames Government over slow rate of progress in reducing UK
carbon emissions - The report pointed out that just 170,000 cavity walls
were insulated in 2013, down from more than 600,000 in 2012.
The
elephant in the atmosphere - Managers at the biggest oil firms clash with
investors over climate change
Water Energy
Nexus
A
World Without Water - FT investigation - Water is needed for almost every
aspect of energy production, from digging up fossil fuels to
refining.
California
Halts Injection of Fracking Waste, Warning it May Be Contaminating Aquifers
- State’s drought has forced farmers to rely on groundwater…
Related Reports and
Commentary
Meeting
Carbon Budgets – 2014 Progress Report to Parliament – Committee on Climate
Change
City
energy: A new powerhouse for Britain – IPPR
2014
International Energy Efficiency Scorecard - American Council for an Energy
Efficient Economy (ACEEE)
Shale
gas and fracking: examining the evidence - Scientists for Global
Responsibility (SGR) and Chartered Institute of Environmental Health
(CIEH)
Energy
Technology Perspectives 2014 – International Energy Agency
The Energy Crunch team: Simone Osborn,
David Strahan, Griffin Carpenter, Stephen Devlin, Aniol Esteban, Tim
Jenkins
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