Business energy costs predicted to rise by around a third by 2030
A new report by the independent Committee on Climate Change urges businesses and households to embrace energy efficiency measures, as it projects that businesses are likely to face increased energy costs through to 2030.The report is likely to spark a fresh round of accusations that environmental policies are pushing up energy bills. But the CCC stressed that the primary causes of energy bill increases since 2004 have been an increase in the international price of gas and investment in electricity/gas networks. The report also suggests the impact of clean energy and energy efficiency policies on businesses has been more pronounced and is likely to intensify over the coming years. Gareth Stace, head of climate and environment policy at manufacturers’ association EEF, said the projections underlined the urgent need for the UK government to provide further details on how it plans to ensure heavy industry remains competitive. (Business Green)
NatWest and RBS boost renewable energy funding scheme
Two of the UK’s biggest banks are set to make it easier for anaerobic digestion (AD) and hydropower plants to secure funding. NatWest and the Royal Bank of Scotland have announced plans to add AD and hydro schemes to their list of projects for which they will consider future earnings, when considering a loan application. Ian Burrow, the banks’ head of agriculture and renewable energy, said the move recognises the huge potential for the two technologies in the UK, as well as their growing technical maturity. The government has estimated the UK’s AD plants could generate up to 7 per cent of the country’s renewable energy needs by 2020, while other recent studies estimate a remaining viable potential of 850MW to 1,550MW of hydro power capacity in the UK. “With energy costs continuing to rise and a growing pressure for businesses to become more efficient, they are continuing to look at whether renewable energy technologies would work for them,” said Burrow in a statement. (Business Green)
Supply Chain
Oxfam releases guide on implementing living wages in company supply chains
A new paper released by Oxfam aims to help companies which source from developing countries to understand the issue of living wages and work to improve wages in their supply chains. The paper outlines the root causes of low wages, the barriers to ensuring a living wage is paid and the “compelling reasons for responsible companies to act now”. It highlights positive steps taken in a range of sectors, by companies including Tesco, Puma and H&M, and provides a framework for deeper change. It also highlights a number of important industry initiatives, including the Ethical Tea Partnership, the World Banana Forum and the Fairwear Foundation, and cites action taken by the corporate members of the Bangladesh Accord on Fire and Building Safety to tackle low wages in Cambodia. (Oxfam)
Corporate Reputation
US energy firms in secretive alliance with attorneys general
A letter sent to the US Environment Protection Agency (EPA) in 2011 by Attorney General Scott Pruitt of Oklahoma accused Federal regulators of grossly overestimating the amount of air pollution caused by energy companies drilling new natural gas wells in his state. However, Mr. Pruitt failed to mention that the letter was written by lawyers for Devon Energy, one of Oklahoma’s biggest oil and gas companies, and was delivered to him by Devon’s chief of lobbying. According to The New York Times, a recently-revealed email exchange hints at an alliance that Mr. Pruitt and other Republican attorneys general have formed with some of the nation’s top energy producers to push back against regulations. The paper reports that attorneys general in at least a dozen states are working with energy companies and other corporate interests, which in turn are providing them with record amounts of money for their political campaigns, including at least $16 million this year. (The New York Times)
Climate Change
Green Climate Fund hits $10 billion goal, after surprise donation from Australia
The Green Climate Fund, which aims to help poor nations cope with global warming, reached a UN goal of $10 billion on Tuesday at global climate talks in Lima, helped by a surprise donation from Australia. Australia’s foreign minister, Julie Bishop, declared a pledge of Aus $200 million (US $165 million) to the Fund. Australia has received global criticism over the past year for what has been perceived as a backwards approach to climate change. Prime Minister Tony Abbott scrapped Australia’s carbon tax and fought to have climate change kept off the agenda at the G20 summit which he hosted in Brisbane in November. The promise was met with a mixed reaction from green groups: Kelly Dent from Oxfam Australia said that the promise fell short of Australia’s financial potential, but welcomed it as a positive shift in policy. China’s chief negotiator Xie Zhenhua said developed nations were doing too little to raise climate finance towards the goal of $100 billion a year by 2020, promised in 2009. (RTCC; Eco-Business)
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