ELR® INTERNATIONAL UPDATE

January 23, 2012

EU CAN RAISE TARGETS MORE CHEAPLY AND FAIRLY

The European Union could raise its binding 2020 emissions goals from 20 to 30 percent of 1990 levels much more cheaply and with costs divided much more fairly than originally believed, according to a draft EU document. The financial crisis has virtually guaranteed that the EU will achieve its 20 percent target, according to Reuters, and it also means that a 30 percent reduction would be much more affordable. An analysis showed that the cost of raising the EU's target (previously estimated at 33 billion euros (US $42.6 billion)) would hit poorer states harder, which created additional political obstacles. The Commission responded with an analysis demonstrating ways to better divide costs, including reducing permits in wealthy countries while leaving the number in central and eastern European states unchanged. Such measures would also raise the price of carbon permits, currently near record lows of 7 euros (US $9) per metric ton. The report concludes that raising the targets will likely save money in the short and long term, as a higher goal will encourage businesses to make the low carbon choices needed for deeper cuts. For the full story, see http://www.reuters.com/article/2012/01/18/us-eu-climate-target-idUSTRE80H19220120118 and http://www.guardian.co.uk/environment/2012/jan/18/30-percent-emissions-cut-cheaper?newsfeed=true.

Japanese plans to restart nuclear reactors and cap their lifespan at 60 years has drawn anger, as citizen protestors delayed a nuclear watchdog hearing on its stress test results last week. Local officials, whose approval is needed to relaunch nuclear power plants, said that the stress tests are not enough and demanded additional safety standards. "If local fears were to be dispelled over reactor restarts, it was important for the government to come up with a comprehensive set of safety standards and measures based on information from the Fukushima accident," said the mayor of Fukui's Ohi town. In addition, some residents have called for the local reactors to remain shut down, saying the reactors are simply too old to operate safely. In Britain, campaign group Fair Energy submitted a formal complaint to the European Commission over government incentives for nuclear plants. The group claims the United Kingdom is potentially granting seven unfair subsidies to nuclear energy providers, including a cap on liabilities for nuclear accidents and a uranium fuel tax exemption, as well as help with the cost of dealing with nuclear waste. "This complaint aims to shed some light on the recent shift in the energy policy of the United Kingdom where strong signals point to yet another set of subsidies to the nuclear power plant operators," said Dörte Fouquet, a lawyer leading the complaint. Caroline Lucas MP, Leader of the Green Party of England and Wales, said that the policies contradict the coalition's plan not to give public money to the established nuclear industry, adding "it's clear that this is a subsidy by another name." For the story on Japan's relaunch of its reactors, see http://www.reuters.com/article/2012/01/19/us-japan-energy-idUSTRE80I0P920120119. For the story on nuclear subsidies in the UK, see http://www.guardian.co.uk/environment/2012/jan/19/anti-nuclear-campaign-british-legal-challenge and http://www.bbc.co.uk/news/science-environment-16646405.

Deforestation may cause the Amazon Basin to become a net emitter of carbon dioxide, according to a study published in the journal Nature. Though the region has traditionally defended against climate change, the basin's large population growth over the last 50 years has caused a massive spike in clearing for logging and agriculture. The study estimates that the Amazon contains 100 billion tons of carbon in its biomass, which is gradually released as the forest is cleared. The researchers conclude that while the forest may be resilient to individual disturbances, including climate change, multiple disturbances, such as logging and fires, will undermine that resilience."Brazil is poised to become one of the few countries to achieve the transition to a major economic power without destroying most of its forests," said the study. "However, continued improvements in scientific and technological capacity and human resources will be required in the Amazon region to guide and manage both biophysical and socioeconomic transitions." For the full story, see http://www.google.com/hostednews/afp/article/ALeqM5hCo4j-s2cFarxay 2LrzO3IX 30SQQ?docId=CNG.1c6dafea9831a4e285a8fd5725fe404e.451.

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