A new report from the International Energy Agency, the European Union’s (EU) Emission Trading Scheme, finds that emissions caps have not caused heavy industries to move operations or shift investments to countries without carbon oversight. The report examines how caps might cause carbon-constrained companies to be less competitive than unconstrained companies and looks at “carbon leakage” - the exodus of carbon-emitting businesses to areas without caps or other constraints.

The report, entitled, “Issues behind Competitiveness and Carbon Leakage: Focus on Heavy Industry” (PDF, 2.9 MB), looks at international trade flows and changes in investment patterns from 2005-2007, and concludes that there has been no significant carbon leakage from the steel, aluminum, cement and refineries industries.

The report attributes the lack of significant change in trade flows and production patterns to the no-cost allocation of emissions allowances (as opposed to auctioning off allowances), long-term electricity contracts and an overall boom in prices for carbon-intensive products.

The EU Emission Trading Scheme is currently in its second phase, which will remain in effect until 2012, at which time emissions reductions are expected to become stricter.

The report also reviews policies being discussed to prevent significant carbon leakage, and the report calls for policies aimed at specific sectors or sub-sectors, not across the board to all industries.

• Download the report, “Issues behind Competitiveness and Carbon Leakage: Focus on Heavy Industry” (PDF, 2.9 MB)
• Read background: “EU Carbon Caps Not Forcing Emissions Relocation: Report” (ClimateBiz, 11/5/08)
• Related: “Cap and Trade: Where Does the Money Go?” (Power Plug, 6/17/08)

(Photo: Flickr)

The Sierra Club recently won a huge legal victory in the Bonanza coal plant permitting case (PDF, 701 KB) at the Environmental Protection Agency’s (EPA) Environmental Appeals Board. The ruling stated that because a previous Supreme Court ruling, Mass. v EPA, said carbon dioxide (CO₂) is a pollutant under the Clean Air Act, new coal-fired power plants must implement “Best Available Control Technology” (BACT) for CO₂. It appears that this decision will stop all new coal plant permitting for at least a year as President-elect Obama’s EPA decides what BACT means for CO₂. In the meantime, 30 permits for new coal-fired power plants in the seven states directly regulated by the EPA, plus projects on all Indian Reservations will immediately die because of this ruling. Other states that do their own permitting will have to start their permitting processes over from scratch.

BACT for CO₂ is unlikely to mean carbon capture and storage yet, since it is not readily available, but it will probably mean some combination of co-generation, efficiency improvements, and fuel switching or co-firing with biomass.

The ruling seems to make investment in coal less desirable and it could bring to light issues like mountain top removal and cause the public to question the coal industry’s avid claims that it is a clean technology.

• Read background: “Huge Legal Ruling Blocks All U.S. Coal Development” (Cleanenergy.org, 11/13/08)
• Related: “Nevada Coal Power More Costly Than Renewable Power, Study Finds” (Power Plug, 1/16/08)

Report finds lack of efficiency efforts in the office (Image: www.siliconvalleypower.com)

According to research by the United Kingdom (UK) sustainable business expert team Envirowise, individuals committed to cutting waste at home are not cognizant of conservation at work. The survey of more than 1,800 UK office workers found that a third took no action to reduce the amount of resources they use during the work day.

Envirowise is urging Britain’s bosses to disclose gas, electricity, water and recycling bills to employees in order to encourage them to take more responsibility for reducing company resource consumption and lessen their environmental impact.

Envirowise suggests several ways to minimize waste and reduce energy consumption in the workplace, including appointing a ‘champion’ to lead waste reduction initiatives, urging employees to switch off lights and computers at the end of the work day, installing self-closing taps to conserve water and reducing water usage through rainwater harvesting.

“With the credit crunch continuing to bite, cutting costs through better resource efficiency and minimizing waste have never been more important. Those businesses that make positive changes to reduce their environmental impact and reduce costs now will be better equipped to survive and thrive during the current downturn,” said Envirowise marketing director, Mary Leonard.

• Read background: “Sharing Utility Bills With Employees Encourages Waste Reduction,” (Environmental Leader, 11/7/08)
• Related: “Energy Efficiency on the Road: New Technology in Hotels Has Guests Aware of Energy Use, Changing Behavior” (Power Plug, 11/16/07)
• Find tips for saving energy around the office

IT systems currently account for about 2% of global GHG emissions (Photo: Flickr)

According to a new McKinsey & Company analysis, the energy required to power all of the world’s computers, data storage, and communications networks is expected to double by 2020. The rise in emissions is mainly due to greater Internet use in China and India, where coal-fired power plants generate most of the countries’ energy. China accounted for 23% of global emissions related to information technology (IT) last year. North America’s office technology caused a quarter of the world’s IT related emissions in 2002, but China is now the world leader in both overall greenhouse gas emissions and emissions from IT. Worldwide, IT systems’ emissions were equivalent to the annual CO₂ emissions from more than a half-billion automobiles.

China and the world’s emerging economies, including India, Brazil and Indonesia, are expected to increase their IT emissions 9% annually. According to the McKinsey study, the world’s 30.3 million servers and other IT systems now account for about 2% of global emissions, and by 2020, IT would be the cause of 1.54 gigatons (billion tons) of greenhouse gases, or 3% of global emissions. If these calculations are accurate, the carbon footprint of IT would be comparable to that from aviation.

According to McKinsey, however, various mitigation strategies could help to eliminate 7.8 metric gigatons of greenhouse gas emissions annually by 2020 - equivalent to 15% of global emissions today and five times more than McKinsey’s estimate for emissions from these technologies in 2020. Potential improvements include increased server consolidation, advanced data center cooling systems and software that cut servers’ energy use when demand is low. The McKinsey study also noted that “Smart controls” - sensors that monitor and help avoid unnecessary electricity usage - can help to curb emissions.

• Read background: “Office-Related Carbon Emissions Surge,” by Ben Block, Worldwatch.org (10/31/08)
• Related: “Google Plans Water-Based Data Centers” (Power Plug, 10/9/08)
• Related: “Percentage of Large Companies Planning to Modify Data Centers in Response to Rising Energy Costs” (e-Newswire, 9/17/08)

More than 300 small businesses, schools, and cities across California will soon be receiving checks ranging from $30 to $3,000 as a reward for temporarily reducing their electricity use during high statewide demand periods. The payments are the result of a new demand response pilot program funded by the California Public Utility Commission and managed by San Francisco Community Power, in which small commercial energy users are paid to temporarily reduce their electricity. Participants, which range from well-known retailers, such as REI, to automobile dealers who are typically not at the forefront of environmental efforts, managed to cut their demand by 4.5 megawatts during August alone.

“Large corporations, like Chevron or Bank of America have long had access to programs that pay them to reduce their electricity use,” explains Steven Moss, executive director of SF Community Power, “This is the first time that smaller organizations have been able to demonstrate that they too can help ensure grid reliability and reduce polluting air and greenhouse gas emissions.”

The program not only helps to cut energy use, but also reduces pollution since the state’s most polluting resources, such as diesel back-up generators and older power plants, are only used when electricity demand spikes. The program has also prompted more long-term energy saving efforts. “This has motivated us to take other energy saving steps; we retrofitted all our lights,” said Brad Kassabian of Kassabian Motors in Dublin. Cities and organizations achieved their impressive savings through a variety of measures, including simple steps such as turning up air conditioner thermostats, using stairs instead of elevators, and turning off lights.

• Learn how to enroll in SF Community Power’s Demand Response program
• Find out more about the Pacific Gas and Electric Company (PG&E), San Diego Gas and Electric Company (SDG&E) and Southern California Edison (SCE) demand response programs

Sears recently launched their new home energy audit service, the Sears Blue Climate Crew, to help customers in Orange County and Los Angeles increase the safety, efficiency, and comfort of their homes. The comprehensive service includes a professional energy audit; estimated energy savings from any improvements; delivery, installation, and tune-ups of energy-saving products; and a post-installation test to measure the effectiveness of the improvements. The entire cost of the audit is credited towards qualifying home improvement purchases at Sears, and customers also receive a coupon book with discounts for purchasing new Sears Energy Star appliances.

During the audit, the Climate Crew works to assess the efficiency and performance of existing heating and cooling equipment and establishes whether it is cost effective to upgrade to a newer, more efficient system. The Crew identifies air leaks and determines the amount of energy consumed through lighting and other electronics to help homeowners pinpoint simple ways to save on their energy bills. The audit also includes safety checks for back-drafting, carbon monoxide and natural gas leaks, and other heating and cooling combustion safety issues. Homeowners can schedule an audit with the Sears Blue Climate Crew by calling (877) 587-1621 or by visiting the website.

• Learn more about Sears Blue Climate Crew home energy audit
• Learn more about home energy audits

The City of San Diego Water Conservation Program directly accounts for approximately 30,000 acre-feet of potable water savings per year, which is approximately 13 percent of the City’s total water use. This savings has been achieved by creating a water conservation ethic; adopting new innovative programs, policies and ordinances designed to promote water conservation practices; and implementing comprehensive public information and education campaigns. The water savings have also produced a 2,030,000 kWh electricity savings, and a $191,000 overall cost reduction. The Program’s efforts earned them an Education and Leadership Award in the 5th Annual Flex Your Power Awards.

• Read background
• View the winners of the 5th Annual Flex Your Power Awards

LEDs consume less power than conventional lights and can last upwards of 50,000 hours (Photo: Flickr)

According to Mark Swoboda, CEO of LED maker Bridgelux, in early 2009 his company plans to release a series of white light LEDs that will allow manufacturers to make LED light fixtures that cost 50% less than current LED fixtures. One of Bridgelux’s white light LEDs that exhibits a “cool” light will cost around a penny per lumen. An 85-lumen LED, therefore, would cost about 85 cents when purchased in volume and a number would be packaged together to make a light. Similar white LEDs with neutral and warm light, which is preferred by customers, will be coming out at the same time and will cost about twice as much.

LEDs consume less power than conventional lights and can last 50,000 hours or more, making them potentially cheaper than conventional lighting because of lower operating and maintenance costs. However, many customers have difficulty with the high upfront costs, as current prices remain at $90 or more for a 60-watt equivalent LED light at Home Depot. Lighting manufacturers hope to bring these costs down as technology improves, and heavy investment may allow Bridgelux and others to do just that.

• Read background: “LED Lights to Drop by 50% or More Next Year?” by Michael Kanellos, (Greentech Media, 11/3/08)
• Related: “Lighting for Tomorrow Announces 2008 LED and Compact Fluorescent Lighting Winners” (e-Newswire, 10/22/08)

Power plants use as much water as crop irrigation in the U.S. (Photo: Flickr)

Currently around 50 power plants across the country are using treated wastewater for cooling, according to a study by Argonne National Laboratory. The quantity of water going into power plants is roughly the same as that being used to irrigate crops, and according to John Veil, the report’s author, while some of the water is returned to its original source after it is used in cooling, withdrawing such large quantities can still be a problem, especially in times of drought.

Examples of plants using wastewater include a natural gas plant near Austin, Texas, the Palo Verde nuclear plant in Arizona and a few power plants in the Washington D.C. area.

Jim McDonald, a spokesman for Arizona Public Service, which operates the Palo Verde plant, believes Palo Verde is the only nuclear plant in the country to reuse treated wastewater, which it has done since opening in 1986. According to McDonald, the wastewater, which comes from Arizona’s biggest cities, is piped in and treated again at the plant.

Veil says that the question of cost is site-specific and is based on how much treatment the wastewater treatment plant already provides, how much additional treatment is required to meet the power plant’s needs, and how far the reclaimed water must be piped, since pumping water uses large amounts of electricity.

• Download the report: “Use of Reclaimed Water for Power Plant Cooling,” (PDF, 960 KB)
• Read background: “Treated Wastewater for Thirsty Power Plants” (New York Times, 11/4/08)