Energy-Climate

At the end of the Copenhagen Conference of December 2009, the attending parties failed to agree on a legally binding commitment, but ultimately signed the Copenhagen Accord. The countries signing this accord took different engagements in respect to their economic and emissions status. 

In December 2008, as part of the fight against climate change, the European Union adopted the Energy and Climate package that endorsed three objectives toward 2020: a 20% increase in energy efficiency, a 20% reduction in GHG emissions (compared to 1990), and a 20% share of renewables in final energy consumption.

 

There is a valuable lesson to be learned about raw material dependence from the tensions between China and Japan in the East China Sea. It’s not about the oil and gas that is thought to be stored under the seabed in disputed waters, but rather the so-called “rare earth elements”, of which China produces 97% of the global supply.

Last week the gritty Russian/Ukrainian gas relationship was back in the press. This time the issue appeared to be Ukraine’s efforts to secure lower prices for its consumers - perhaps even on a par with Russia’s domestic consumers. The Ukrainians must surely know that to qualify for those kinds of special prices available previously only to politically compliant neighbors - Ukraine would have to return to some form of pre-Orange Revolution relationship with Mother Russia.

Turn on the news or open the paper and sure enough there will be mention of the disastrous oil spill in the Gulf of Mexico. Although it has retreated from the big headlines, the disaster still looms large as people deal with the aftermath of the BP catastrophe. 

A major change has taken place in the company structure of the European electricity and gas markets. Twenty years ago, national or regional monopolies dominated the markets and there was strictly no competition between utilities. But since the liberalization of EU energy markets began in the 1990s, companies like E.ON, GDF Suez, EDF, Enel, and RWE have become European giants with activities in a large number of Member States. 

The package of the Azeri-Turkish gas agreements signed in Istanbul on June 7, 2010, in the presence of President Ilham Aliyev and Prime Minister Recep Erdogan certainly makes cooperation easier in a sector which both parties consider to be strategic. It does not, however, specify all details of the sale and transit of gas (see e.g. EurasiaNet, 7 June). The documents above all have important political significance.

Thank goodness our early warning systems during the cold war were not structured so we could see the flash at the same time we heard the warning. On Monday, the Russians notified the Europeans under an “Early Warning” agreement negotiated after the last Ukrainian gas cutoff that they had already cut gas flows to Belarus by 15% and that would increase cuts to 85% by the end of the week. Not very good news for the Belarusians who enjoy the most gasified economy in the world - everything there runs on gas.

European subsidies for wind energy are too high and unspecific. They risk frustrating their own objective.

Why do we have to drill through a mile of water and then three miles of rock to get oil? Surely there are better options in the world’s geologic resource base than deep, acidic, high pressure deposits that threaten the waters and coasts of the Gulf of Mexico, Gulf of Guinea, Campos Basin, Barents Sea and the Caspian. Most of this is oil that got deposited even before continental drift started.