Examiner (US): Competitive landscape for global clean energy industry: how does U.S. matchup

Examiner (US): Competitive landscape for global clean energy industry: how does U.S. matchup

July 30, 5:06 PM

Across the competitive landscape, new global clean energy industry investments for solar, wind, geothermal, hydro, and biomass power as well as energy-efficiency fell by 53% in the first quarter of 2009 to $13.3 billion compared to the same period in 2008, reflecting the deep impact of the world financial crisis, according to a June 2009 report by the United Nations Environment Program (UNEP), which predicts "green-shoots” of recovery during the second quarter of 2009. However, the sector is far from peak investment levels of late 2007 and early 2008. 

Nonetheless, global warming concerns, economic recovery stimulus packages and energy security are expected to initiate far greater investments in clean energy in the future. In specific, the growing understanding that global carbon emissions must begin declining around 2015 to prevent dangerous climate change, noted in numerous studies including the 4th assessment of the Intergovernmental Panel on Climate Change associated with the UNEP/World Meteorological Organization, is elevating clean energy investment to a high national priority in countries across the world. Annual global investments in renewable energy, energy efficiency, and carbon capture and storage are anticipated to reach a half-trillion dollars by 2020, representing an average investment of 0.44% of global gross domestic product (GDP). Currently, there is a massive oversupply for solar products on the market, which is dampening prices, partly due to the lack of sufficient, timely demand-side incentives globally such as carbon emissions constraints, tax incentives, and feed-in tariffs.

Europe continues to dominate new clean energy investment with $49.7 billion in 2008, an increase of 2% from 2007 with a 37% compound annual growth rate (CAGR) from 2006-2008, according to the UNEP report. This investment has been spurred by government policies supporting new sustainability or renewable energy projects, particularly in countries such as Spain, which experienced $17.4 billion of asset finance investment in 2008, when several temporary government solar incentives were set to expire.  

This report also revealed that by 2008, China was the world's second largest wind market in terms of newly installed capacity and the fourth largest in overall installed capacity. In 2008, approximately 6GW of new capacity was installed and deployed, bringing total capacity to approximately 12GW. In addition, China became the world's largest solar cell manufacturer in 2008, with 95% of its products being shipped overseas and predominantly to European countries such as Germany. A lesser emphasis was placed on biomass, as 800MW of power was added in 2008, bringing the total installed capacity for agriculture waste-fired power plants up to 2.88GW. President Barack Obama is engaging China in new collaborations regarding carbon emissions and clean energy- with hopes that both countries will focus on developing Green economies for domestic purposes.

Earlier this month, the South Korean government said it would invest 2% of its annual GDP in environment-related industries over the next five years. This plan is coupled with a strategy of raising $1.6 billion in financing for an assortment of Green industries in the private sector, including solar, solid state lighting, and new battery technologies. 

Samsung Electronics, the world's largest memory chip maker and an overall electronics giant headquartered in South Korea, is also championing cleantech investments and stated in recent weeks that it would invest $4.3 billion in Green research and development (R&D) and facilities in order to become a leading eco-friendly company by 2013. Overall, $2.5 billion will be spent to develop products which cause less strain on the environment, and the remainder will be dedicated to energy-efficient technologies and the environmental improvement of manufacturing facilities. As a result, Samsung is planning to reduce greenhouse gas emissions from manufacturing facilities by 50%, cutting total indirect greenhouse gas emissions from all products by 84 million tons through 2013. Moreover, the company will be creating more energy efficient products through means such as cutting standby power consumption and overall power usage requirements. This action will enhance their position in the marketplace as a leading exporter of goods to the U.S., which is considering a cap-and-trade bill, the American Clean Energy and Security Act (ACES) that would add import tariffs on products entering the U.S. from countries with pollution targets above those set in this legislation. 

In comparison, the UNEP report indicated that new investment in clean energy in North America was $30.1 billion in 2008, a decrease of 8% compared to 2007 with a 15% CAGR from 2006-2008. The U.S. showed declines in asset financing following the abundance of investment in corn-based ethanol vehicle fuel in 2007 due to Bush administration incentives. Also, the number of tax equity providers fell for wind and solar projects due to the global financial crisis.  

The U.S. government is proposing only about $1.2 billion annually in energy R&D and roughly $10 billion in the clean energy sector overall under the ACES bill, which is equivalent to less than 0.1% of GDP and a paltry figure with respect to leading Asian countries and Europe. A group of 34 Nobel laureates reportedly wrote a letter to President Obama citing the lack of sufficient cleantech investment and calling on him to uphold his original plan to invest $15 billion annually in clean energy R&D. 

At the state level, places such as Arizona with the natural advantage of one of the highest solar exposure indices across the U.S., have the potential to gain on the development of a clean economy and infrastructure. The expansion of clean energy policy at the national and state level bodes well for Green collar job creation and Phoenix, AZ-based companies such as First Solar, who may even be inclined to build solar panel production facilities in the state with the proper incentives in place.  Phoenix is the host for the Greenbuild International Conference and Expo November 11-13, 2009, which will be the subject of an upcoming article, as this event may help spur the state's development of a cleantech economy.

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Daily Star (Lebanon): Beirut to host Arab Forum for Environment and Development

Wednesday, July 29, 2009

The Arab Forum for Environment and Development (AFED) announced on Tuesday that its Board of Trustees has chosen Beirut as the venue for its annual conference. The conference, due to be held in November under the patronage of President Michel Sleiman, will focus of the impact of climate change on the Arab world. Some 21 board members from 14 countries will attend.

Speaking at the Press Federation headquarters in Beirut, AFED Secretary General Najib Saab said the choice of Beirut was proposed by the Environment Authority-Abu Dhabi, an AFED member which will be the event’s official sponsor. The conference, scheduled for November 19-20 at the Habtoor Grand Hotel and Convention Center, is expected to attract over 500 leading Arab and international delegates, including 30 ministers of energy and environment, Saab said.

AFED, a regional organization established in 2006, bases its Secretariat in Beirut. It is also an observer member with the League of Arab States and the United Nations Environment Program (UNEP).

In 2008, the organization released a groundbreaking report, “Arab Environment: Future Challenges,” which traced the state of the Arab world’s environment and issued recommendations for remedial action, many of which were later endorsed by a number of national and regional bodies.

Lebanese Minister of Environment Dr. Tony Karam welcomed Beirut’s nomination as the venue for upcoming AFED convention, noting the conference’s special relevance as part of preparations ahead of the United Nations Climate Change Conference in Copenhagen, Denmark. The December 7-18 conference aims to formulate an international framework to mitigate climate change beyond 2012. “The Beirut meeting will help to develop a common Arab position in Copenhagen through presenting the latest scientific evidence and opening meaningful debate on the required measures,” said Karam.

After thanking the Environment Agency of Abu Dhabi (EAD) for supporting Beirut as the choice of venue and for acting as the event’s official sponsor, Karam highlighted the leading role of the United Arab Emirates in promoting clean and renewable energy, most notably through the Abu Dhabi Future Energy Company (Masdar). Karam also congratulated the UAE for Abu Dhabi’s selection as the interim headquarters of the newly established International Renewable Energy Agency (IRENA).

Minister Karam then extended Lebanon’s support for the AFED conference.

A group of leading Arab scientists and researchers are working on a comprehensive report covering all aspects of climate change impacts in the Arab world, according to Saab. The report will be executed under the leadership of world environment veteran Dr. Mostafa Kamal Tolba, former UNEP executive director Dr. Mohamed El-Ashry, former head of the Global Environment Facility (GEF), and renowned expert on coastal zones, Dr. Mohamed El-Raey.

Director of the Environment Program at Arab Gulf University, Dr. Ibrahim Abdelgelil, is meanwhile undertaking an analytical survey on mitigation measures in Arab countries, while a study on the impact of climate change on human health is being carried out by Dr. Iman Nuwayhid, Dean of the Faculty of Health Sciences at the American University of Beirut. Other topics that will be covered in the report include the impact of climate change on food production, fresh water, biodiversity, infrastructure and tourism in the region. Studies are also being prepared on the international negotiations for a post-Kyoto agreement, and on the measures needed to be adopted by Arab countries in order to combat climate change.

One of the main features of the report, said Saab, is a study being carried out for AFED at the Center of Remote Sensing at Boston University (CRS-BU), which uses satellite images to analyze the impact of climate change on Arab countries. The images are being developed by Dr. Eman Ghoneim, a research professor at CRS-BU, who will present the findings in Beirut. He will also present information on the impact of sea level rises on the coasts of the Nile Delta and the Western Emirates, Saab said. The center’s director, scientist Dr. Farouk El-Baz, will give a presentation entitled “When the Desert was Green.”

Other speakers for the upcoming conference include Achim Steiner, UNEP executive director, Youba Sokona, Executive Secretary of Sahel and Sahara Observatory, Atiq Rahman, Chairman of Climate Action Network South Asia, and Gunilla Carlson, Swedish Minister of Development Cooperation and Chair of the International Commission on Climate and Environment. There will also be a special plenary session on how shifting to a green economy can help fight climate change, during which corporate leaders will present their experiences and deliver recommendations on how to make Arab economies greener.

The conference will enjoy technical support from UNEP and the OPEC Fund for International Development, as well a number of AFED corporate sponsors.

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