The Prince of Wales has opened the UK's first fully operational commercial scale anaerobic digester and biomethane-to-grid plant in Dorset today. The plant, owned and operated by J V Energen, a joint venture between local farmers and the Duchy of Cornwall, will inject biomethane (renewable gas) directly into the gas grid on-site. According to the Anaerobic Digestion and Biogas Association (ADBA) biomethane is extremely low carbon, and once upgraded is close to pure methane and similar to natural gas. Commenting on the opening, ADBA's chief executive, Charlotte Morton, said: "The UK's first successful commercial-scale gas-to-grid plant is an exciting development, demonstrating the ability of the AD industry to deliver large volumes of green gas into the grid for use today". Mr Morton said that AD has the potential to generate £2-3bn worth of green gas, equivalent to more than 10 percent of the UK's domestic gas demand, and support 35,000 jobs. (Edie, Business Green)
Oil nations asked to consider carbon tax on exports
The world's largest oil exporting countries have been asked to consider imposing a small carbon tax on oil as a way to break the deadlock over finance for poorer countries in the UN climate talks. The Ecuador-led initiative, submitted to the Organisation of Petroleum Exporting Countries (Opec), could see a three to five percent tax levied on every barrel of oil exported to rich countries. This could potentially raise $40-60bn a year for the ‘Green Climate Fund’, which is expected to be the principle route of funding for developing countries to adapt to climate change. The idea was first mooted in 2001 by former World Bank chief economist, Herman Daly – leading it to be dubbed the Daly-Correa tax. The proposed tax will be further discussed by Opec countries at the UN climate talks which open on Monday in Doha. "The first global tax on carbon emissions would achieve the most efficient and just way to do what [the] Kyoto [protocol] has failed to do: make carbon emitters internalise the effects of their actions and pay for the pollution they create," said President Correa of Ecuador. (Business Green)
UN warns of growing ‘emissions gap’
Global efforts to curb the greenhouse gases are even feebler than previously thought, the UN revealed, in the third big study in two weeks to warn of the rising threat of runaway climate change. Despite the growth of green measures such as electric cars, carbon markets and wind farm subsidies, the world is on track to emit the equivalent of 58 gigatonnes(Gt) of CO2 a year in eight years’ time, up from 49Gt, according to a study by the UN Environment Programme (UNEP). That is well above the 44Gt scientists say emissions should fall to by 2020 if the world is to avoid a potentially dangerous 2°C rise in average global temperatures from pre-industrial levels. Temperatures have already risen by 0.8 degrees. The UNEP report is one of several significant studies on efforts to tackle global warming to be published ahead of next week’s global climate talks in Doha. Both the World Bank and the International Energy Agency have also highlighted the crisis we currently face in terms of global warming. (Guardian, Financial Times*)
Corporate Reputation
Australia cracks down on multinationals’ tax avoidance
The Australian Government released draft revisions to tax laws on Thursday, designed to stop companies such as Google Australia, from shifting their income to countries such as Holland or Ireland where the tax rates are lower. The move is in line with a push by Britain and Germany who want the G20 group of nations to make multinational companies pay their "fair share" of taxes, following reports of large firms exploiting loopholes to avoid paying tax. Australia's Assistant Treasurer, David Bradbury said the tax laws were being revised to ensure that companies pay tax on profits made in the country. Australia's company tax rate is 30 percent, compared to Ireland's rate of 12.5 percent. (Reuters)
Ofgem ‘failed to act’ on price-fixing warning
The UK’s energy regulator, Ofgem, admits that it failed to implement its own consultants' recommendation a year ago to tighten up the way energy companies report trading activities. The energy watchdog also confirmed it was tipped off about possible manipulation of the wholesale market on 17 October – more than three weeks before the energy secretary, Ed Davey, was told. Ofgem and the Financial Services Authority (FSA) are both currently investigating alleged price-fixing by traders working for some of the UK’s largest energy companies, following claims by a whistleblower. Ofgem confirmed yesterday that a report by the accounting firm, BDO last year into improving reporting transparency had included a recommendation that Ofgem should "require the reporting of trading function results" by energy companies. However, in an interview with the Guardian newspaper, the energy regulator recognised its failure to implement this key proposal. (Guardian)
COMMENTS