Its been a busy few weeks since our last Green Hops, so GLF is gonna pack in the updates over two posts consecutive posts.
The “worst drought in half a century” affecting eight northern and central provinces dominated the past week’s news.Â A 90 percent drop in average rainfall since last November will affect 11 million hectares of wheat crops and create a drinking water shortage for 4.4 million people and 2.2. million livestock.Â RMB 187 billion of emergency funds have been earmarked.Â As stop-gap measures, authorities are diverting water from the Yangtze and Yellow River to drought-ridden areas, as well as shelling the sky with pellets to induce rain, Beijing Olympics-style.Â The water diversion measure has been able to get half of the wheat lands irrigated, but is rather ironic given that a recent study shows that 82% of China’s whopping 3.57 million square kilometers of degraded lands (equivalent to the size of 10 Germanys!) exists in the Yangtze River and Yellow River valleys.Â The water scarcity woes of northern China have been well described on this blog by Christine Boyle.Â The World Bank also chimes in with its own comprehensive list of policy recommendation to address water scarcity. Read the full story
The Green Leap Forward travels to Singapore to look at three start-up companies–Zeco, AmpleMotion and The Green Car Co.–trying to make Singapore’s electric transportation dreams come true, and ponders the road blocks that lie in the path towards a renewable electron economy.
Singapore and the Renewable Electron Economy Proposition
The electrification of Singapore’s transportation has received growing interest ever since it was reported that an international panel of experts pegged Singapore as an ideal place to launch an electric vehicle (EV) network. For anyone who’s lived here, it really doesn’t take an expert to recognize that the island-state has a number of things going for it: a contained urban area (the longest east-west stretch is just over 40 km and north-south stretch about 20 km), one of the most efficient and reliable electrical grids, sophisticated IT sector, ambitions to remain at the forefront of maintaining its already world-class transportation infrastructure, and a top-down policy environment which will ensure rapid deployment of a complicated and ambitious system once there is buy-in from the top. Moreover, the potential of sunny and tropical Singapore to harness its hitherto mostly untapped solar resources to feed into its grid completes the puzzle of the vision for a “renewable electron economy,” whereby everything in the economy essentially works of electricity generated by clean renewable power. Read the full story
In the wake of more bad (good if you are for green) news in China’s auto sales trends, GLF is observing an increasingly resonant cacophony of green washing in the auto sector…
Haifei Automobile Group joins the electric vehicle race and sets its sights on launching the Haifei Saibo electric vehicle in the U.S. markets later this year. Lithium-phosphate battery maker China BAK is getting government support for R&D. GreentechMedia debates if the U.S. will move from Arab oil dependence to Asian car battery dependence. Another angle is if both the U.S. and Asia moves towards South American lithium dependence.
Beiqi Foton Motor (SHSE: 600166) established China’s first manufacturing and R&D base for new energy vehicles in Beijing. The base covers an area of 1,000 mu (around 66.67 hectares), with a total investment of Read the full story
Energy Price Reforms
NDRC announced that it would be removing price caps on coal from next year in a move towards a more market-driven price mechanism. This move comes at an opportune time when coal prices have dropped by 30 to 40% since the summer, but GLF points out an earlier post (see finding #4) on a recent MIT coal report that suggests the upstream coal industry has already moved towards a de facto market price system. Although the NDRC move “is a step in the right direction,” Huang Shengchu, president of Beijing-based China Coal Information Institute says in this interview that government macro-control is still needed to protect the rights of various coal stakeholdres in their contractual dealings with each other, accerlarate industry consolidation of the many small and inefficient mines and to set up a coal price index.
Separately, the proposed auto fuel price reform kicked in earlier than expected. So it turns out that the answer to our confusion (see earlier post) of how the government proposed to hike up taxes and keep fuel prices even was that they would adjust the base fuel price downward, predicated on Read the full story
GLF has been traveling and getting a little caught up on side projects, but let’s play some catchup. Let’s pick things up with two specific appointments by President-elect Obama which have implications for U.S.-China energy relations–one being the 1997 Nobel Prize Laureate Dr. Steve Chu of Lawrence Berkeley Labs (LBL) as the new Secretary of Energy, and the other being Dr. John Holdren, physicist and energy technology policy professor at Harvard and Director of the Woods Hole Research Center (whom yours truly had the pleasure of meeting in the copy room as a policy intern there way back in 2003) as the White House science & technology adviser.
Besides being a director of LBL, Dr. Chu (pictured right) is also a professor of physics and molecular and cell biology at Read the full story
The auto industry is front and center of the current financial-energy tsunami. Detroit is in big trouble, and in need of a life-line. Chinese automakers are faring better (and some have them tipped to be Detroit’s white knights), but the shakeout in China has played itself out in petroleum price reforms.
On Friday (Dec 5), the NDRC announced further proposals for energy price reform in the petroleum sector that would come into effect January 1 by indirectly linking domestic fuel prices to international crude oil prices as well as substantially increasing fuel taxes. The NDRC curiously maintains that the moves will not impact prices at the pump (see FAQ by NDRC, in Chinese only), however, the feeling is that more details to the proposal needs to be released for this claim to be assessed. Ostensibly, the fuel tax hike will be offset by the recent pullback in crude oil prices, resulting in minimal increases in pump prices in the near term.
In order to align retail fuel prices, Read the full story
We’ve gone more than a month without a “Green Hops” update…what a crime! We atone for that oversight here…
Climate Change and International Cooperation
A “high level” summit in Beijing on international technology transfer and climate change held on November 7 and 8 provided a preview of the international climate change negotiations that have kicked off in Poznan, Poland today. A blogger’s review of the Beijing summit can be found at China Green Space (the young author of which is a personal friend and has been getting some recognition lately). Basically, it is more of the same–China wants free capital and free technology from developed countries. This is the same position as what can be found in the recently released China Climate Change White Paper, which Read the full story
The following is the complete transcript, modified and supplemented for completeness and readability, of the closing speech that the author of this blog (pictured below) delivered on November 11 at the JUCCCE Clean Energy Forum in Beijing.
We are at war. A world war. But unlike World War I or II, this is not a war about military tanks, but it’s a war about gas tanks. This is not a war about military strength, it’s a war about political strength, and innovation. This is not a war about conquering territories, its about conquering our addiction to fossil fuels. And unlike the first two wars, we are all fighting from the same side. We are engaged in a global energy and climate war. We have essentially, through our reckless consumption of the earth’s natural resources, provoked an unanticipated response in the world’s climatic system. We have essentially pitted Mother Nature against Mother Nature, and we are all caught in the middle.
So what now?
We need a serious restructuring of the way we organize our energy system, implement new rules and policies, and adopt new ways of using energy. We need to, as Rob Watson says, change transform “ego-nomics” into “eco-nomics,” and we do this by appropriate adapting human laws to the immutable laws of nature.
So how do we get there? How do we achieve the innovation to meet the energy-climate challenge? We need an smart and well informed mix of regulatory and market mechanisms. There is no single silver bullet, but I believe that over the past two days of discourse, we have collectively started forming a framework for the array of solutions, a full complement of many green bullets to get the green revolution under way. I see three themes emerging from our discussions: Read the full story