A new shade of green is gradually sweeping across China’s export manufacturing industry, one that took a while to take root.

Companies are riding the environment-friendly wave.
Pressure from the national government and tightening regulations in overseas markets are compelling a growing number of suppliers to modify their business strategies and incorporate ecologically safe processes. The transition is neither extreme nor desperate, but the impact could be widespread as many midsize and small companies are also taking “green” initiatives. Due to the sheer number of these suppliers, they account for a large portion of the pollution and wasteful practices in the country.

Irrespective of size, companies are introducing long-term strategies anchored on recycling, waste reduction and sustainable energy adoption.

Recycling is the most common practice among factories, one that is carried out internally or through third parties. This, however, goes beyond reusing offcuts and scrap materials. Highly polluting industries such as leather tanning have always been required to invest in wastewater cleaning systems, but very few actually do. Now, many are investing large sums in ... read more >>

Over the coming months as the energy and climate discussion plays out in Congress there will doubtless be much discussion regarding the appropriate emission reduction target for the USA. Setting the scene for this, besides the bill itself, will be the US pledge under the Copenhagen Accord to reduce emissions by 17% from 2005 by 2020 – which in turn was the 2020 cap under Waxman-Markey.

 With this pledge as a basis for analysis, it is possible to do some simple “back of the envelope” calculations to gauge the scale of change that will be required over the coming ten years, assuming a rise in population to 340 million and that the USA does this on the basis of domestic action only. The land use / forestry emissions position (currently an annual drawdown) remains unchanged. The starting point is International Energy Agency (IEA) and US Energy Information Administration (EIA) data for the USA for 2007/2008. The US picture is shown below.

In 2008 the USA GHG emissions (excluding land use) were 7.1 Gt, down from 7.2 Gt in 2005. That means a reduction to 6.0 Gt by 2020, or 15.5% from 2008 levels. Total primary energy use was 97 EJ.

 To achieve a reduction in ... read more >>

A recent announcement that IBM will invest $40 million in an"energy and utilities solutions lab" is further evidence that China's large-scale investments in clean tech are attracting private investment in R&D, not just manufacturing.

This latest news from IBM will be difficult for pundits like Thomas Friedman and Brad Plumer to ignore. Friedman and Plumer have argued that the U.S. will be able to maintain its competitive edge in innovation even as clean tech manufacturing relocates overseas.

IBM is not the first, nor is it likely to be the last to set-up a clean-tech R&D center in China. Dow Chemical opened one last June and a few months later Applied Materials follow suit, opening an advanced solar R&D center in Xi'an.

As Breakthrough's Devon Swezey argued in, "It's Not All Good: Why You Should Worry About the Clean Energy Race," that this attitude flows more from reflexive neoliberalism than an understanding of economic history or current events. Swezey noted:

"Among the reasons cited by Applied Materials for the relocation to China was that China, not the U.S., "will be the biggest solar market in the world."

According to Business Spectator, IBM's Brad ... read more >>

I spent most of the day in Richmond yesterday attending the first Summit on Virginia's Energy Future. I'll write more about the main topic of the session next week, but a statistic from one of the panelists stuck in my mind for the entire drive home. In describing the risks that utilities take on when investing in new power plants, the President and Chief Nuclear Officer of Dominion Virginia Power, David Heacock, explained that over the sixty year life of such a facility, the cumulative difference between their high and low long-term natural gas price forecasts amounted to $7 billion, equivalent to the entire up-front cost of a nuclear power plant. He also suggested that the value of the difference between their high and low forecasts for the price likely to be imposed on CO2 emissions was in the same ballpark. Despite the recent financial crisis and accompanying loss of confidence in sophisticated risk-monetizing mechanisms that failed so spectacularly to account for low-probability events, some businesses have no choice but to assess risk in terms of its dollar impact. And as government fills in for a number of hopefully-temporary gaps in various markets, it must also grapple ... read more >>

Government sees the future of transportation in high speed rail network

As the United States is in the early stages of adding new high speed rail corridors to its one currently in operation, the British government yesterday uncovered its plan for a $45 billion high speed rail corridor that would connect the cities of London and Birmingham, ultimately linking to the northern cities of Manchester and Leeds. Project developers say the 250 mph could cut time to travel the distance between London and Birmingham from 84 minutes down to 49 minutes.

“The time has come for Britain to plan seriously for high-speed rail between our major cities,” said Transportation Secretary Lord Adonis. “The high-speed line from London to the Channel tunnel has been a clear success, and many European and Asian countries now have extensive and successful high-speed networks. I believe high-speed rail has a big part to play in Britain’s future.”

The first phase of the network buildout will cost up to $25 billion for 128 miles of track from London to the west Midlands, with the projected cost of the full 330-mile ... read more >>

Four democratic senators have introduced an initiative urging the Obama administration to suspend a U.S. Treasury grant program formed under the Recovery Act. The program enables renewable energy producers to receive grants in lieu of Investment Tax Credit payments, essentially providing valuable financing up-front rather than over a number of tax years. That program has spawned a revival in investments for clean energy projects in the wake of the worst economic crisis since the Great Depression, and is widely lauded by RE industry members.

However, senators Charles Schumer (D-N.Y.), Bob Casey (D-Penn.), Sherrod Brown (D-Ohio) and Jon Tester (D-Mont.) are concerned that components for these projects are coming from foreign companies. In other words, they believe funds intended to boost the U.S. economy should be doing just that, not bolstering economies overseas. I absolutely agree with the notion that U.S. dollars should not be spent overseas, but the problem goes deeper than a Recovery Act grant program and ends with one gaping hole in American clean energy policy: a national renewable electricity standard (RES).

The grants-in-lieu-of-credits program has been wildly ... read more >>

Stefan Rahmstorf has an exceelent post on RealClimate about the curiously low sea level rise projection in the latest IPCC report, Sealevelgate:

Imagine this. In its latest report, the IPCC has predicted up to 3 meters of sea level rise by the end of this century. But “climate sceptics” websites were quick to reveal a few problems (or “tricks”, as they called it).

First, although the temperature scenarios of IPCC project a maximum warming of 6.4 ºC (Table SPM3), the upper limit of sea level rise has been computed assuming a warming of 7.6 ºC. Second, the IPCC chose to compute sea level rise up to the year 2105 rather than 2100 – just to add that extra bit of alarmism. Worse, the IPCC report shows that over the past 40 years, sea level has in fact risen 50% less than predicted by its models – yet these same models are used uncorrected to predict the future! And finally, the future projections assume a massive ice sheet decay which is rather at odds with past ice sheet behaviour.

Some scientists within IPCC warned early that all this could lead to a credibility problem, but the IPCC decided to go ahead anyway.

Now, the blogosphere and their great media amplifiers ...

read more >>

With an ambitious goal of being 100-percent renewable-powered, Wal-Mart wants to be a green company — but apparently on its own terms. The company has been fighting for more than two years against a pair of lawsuits that demanded that two planned stores get greener. The Center for Biological Diversity and a handful of other groups filed lawsuits against the California cities of Yucca Valley and Perris, contending that two Wal-Mart Supercenters, if built as planned and approved by the cities, would violate California’s greenhouse gas emissions standards under the California Environmental Quality Act.

After years of litigation, Wal-Mart finally decided to bury the hatchet by settling. And the settlement bodes well for environmentalists. In order to set things right, the infamous supermarket chain must add three rooftop solar power systems at least 250 kilowatts in size, install efficient heating and cooling systems, as well as LED lighting at the two new stores, and donate $120,000 to the Mojave Desert Land Trust — a group trying to expand Joshua Tree National Park.

Wal-Mart is happy that the mess is over, while the environmentalists are happy that a major retailer ... read more >>