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By Julian Wong Jul.9.2010
In: agriculture, biofuels, hydro, water
0 comments

The FoodEnergyWater Nexus: An Integrated Approach to Understanding Chinas Resource Challenges

In this post, originally published in Harvard Asia Quarterly. I draw the connections among food, water and energy systems in China and make the case for the urgent need for more integrated approaches to resource management.

Related posts:

China’s rapidly growing economy is very quickly testing the limits of its resource constraints. While China is home to a quarter of the world’s population, it is endowed with disproportionately less arable land, oil and water.

Such natural resources are vital to any nation’s ability to be self-sufficient, but China’s predicament is especially dire not only because of its large population, but also its rapid urbanization and climate change, both of which will exert more intensive demands on food, energy and water supply. Yet, other than recognizing that water is essential for agriculture, the discussion of each resource constraint is often conducted in isolation, without paying heed to the inter-linkages of food, energy and water systems.

The Example of the Yangtze River
China’s Yangtze River (pictured right) is the third longest in the world and stretches over 6,000 kilometers from the Qinghai Plateau in the west towards the East China Sea at Shanghai. Throughout China’s history, it has played a central role culturally, socially, and economically. It is the unofficial dividing line between China’s north and south, flows through deep gorges in Yunnan Province that have been designated as a UNESCO World Heritage Site, and serves as the lifeblood upon which much of China’s agricultural and industrial activity has depended on to the present day. All told, the Yangtze River system produces 40 percent of the nation’s grain, a third of its cotton, 48 percent of its freshwater fish and 40 percent of its total industrial output value.
The Yangtze has now become a victim of its own success. With China’s rapid economic industrialization over the past three decades, the Yangtze has evolved from a source of life and prosperity to a symptom of the limits of China’s unabated economic pursuits. It has become a depository for 60 percent of the country’s pollution, making it the single largest source of pollution in the Pacific Ocean. The Yangtze is also home to two massive and highly controversial hydraulic projects—the Three Gorges Dam, the world’s largest hydro-electric power facility, and the South-North Water Diversification (SNWD) project (see map illustration below), an unprecedented, multi-decade effort to channel water from the water-rich south to the arid north—each a symptom of a larger ill. The former project points to China’s struggles to maintain energy security and desire to use cleaner sources of energy in a carbon-constrained world, while the latter points to its sheer desperation to address a gross imbalance in the distribution and use of water resources across the Chinese sub-continent.

Neither project comes on the cheap; the Three Gorges Dam bore a price tag of US$30 billion and the SNWD project is projected to cost twice that. Both projects have caused, or will continue to cause, the dislocation of hundreds of thousands of citizens and the significant alteration of landscapes, including the destruction of arable land. Needless to say, both projects have required, or will require, massive inputs of concrete, steel and energy. Together, Three Gorges and SNWD point to a fragile interrelationship between energy, water and food. Beyond the Yangtze, the “food–water–energy trilemma” represents a looming and complex threat to China’s economic stability and national security.

Watergy
Climate change now stands front and center of energy and environmental agendas around the world. In virtually every case, Read the full story

Green Hops: Cold Snap, Renewables Boost, Water Woes

A news round up of energy and environment news in China over the past 4 weeks or so, sans analysis.

Avalanche

Northern China was swept with a harsh cold snap that over northern China over the weekend.  Beijing, for its part, experienced its largest snowfall in six decades, a lowest temperatures in four decades (at minus 16 degrees Centigrade!!!).  The cold surge has created an unwelcome spike in energy demand at a time where energy demand is already taking on an upward trend as the national economy shows signs of recovering lost ground.  The heavy snow has also disrupted food transportation logistics, creating a squeeze in vegetable supply in urban centers and upward pressure on food prices.  The only consolation out of this white mess is that Beijing meteorological authorities have publicly acknowledged that climate change may be the cause of such extreme weather events, providing further testimony that the Chinese bureaucracy really “gets it” when it comes to the urgency of the climate issue.

Renewables

The Standing Committee of the National People’s Congress has approved an amendment to the Renewable Energy Law of 2006 that clarifies rules, already in existence in the original 2006 law, that require grid companies to purchase all the power produced by renewable energy generators. Power enterprises refusing to buy power produced by renewable energy generators would be fined up to an amount double that of the economic loss of the renewable energy company. The amended law also clarifies how renewable energy projects will be financed by requiring the government to set up a special fund to be managed by the State Council for renewable energy research, financing of rural clean energy projects, building of independent power systems in remote areas and islands, and building of information networks to exploit renewable energy.  A good Chinese piece that elaborates on the nuances of the amendments can be found here.  The full text of the amended renewable energy law in Chinese is available here.

The National Development and Reform Commission (NDRC) has released a detailed list of renewable energy projects receiving government subsidies in the first half of 2009.

China has climbed up the wind installation rankings one position surpassing Spain.  After adding about 8 GW of installed capacity in 2009, its approximately 20 GW now ranks it third in the world (Chinese only) behind the United States and Germany. Read the full story

Radio Interview on China balancing both shades of Green

I was on Worldfocus radio last night with Rashid Kang of Greenpeace China for a general discussion moderated by Martin Savidge on China’s ambitions to green its economy (the other shade of green).  Listen here:

Rashid and I explored the following issues:

  • how China is greening rapidly and developing many alternative energy programs — from the world’s most efficient coal power plants to vast wind power fields and solar water heating technology
  • implications of China’s growing automobile market
  • why nuclear power could be the wrong alternative energy solution for China
  • how food security affects China’s alternative energy strategy
  • what is potentially, as I called it, “the holy grail of renewables” — energy storage
  • and, why there are no climate change skeptics in China, but why China can’t go green overnight

Lesson to budding radio interviewees…always be cognizant of Read the full story

China's Climate Progress by the Numbers

A common refrain from climate action naysayers is that, “China is building two coal-fired power plants a week!” They insist that the United States should wait until this major emitter takes on binding commitments to climate change mitigation before it decides to adopt global warming pollution reduction policies in the American Climate and Energy Security Act (H.R. 2454). They further claim that if such a bill became law, the United States would be transferring its jobs to countries such as China and India that are doing nothing to curb emissions. But that thinking is exactly wrong.

Critics fairly point to the fact that 80 percent of China’s power is derived from dirty coal, and that China recently surpassed the United States as the word’s largest emitter of carbon dioxide. Yet China’s per capita emissions remain a fifth that of the United States, and its historical cumulative per capita emissions from 1960 to 2005 are less than one-tenth that of the United States.

Still, the Chinese have recognized that it’s climate inaction—not climate legislation—that will lead to its own economic undoing. As the U.S. Congress debates the merits of enacting renewable electricity and energy efficiency standards, China has already forged ahead with building its own low-carbon economy, laying the foundation for clean-energy jobs and innovation.

China ranked second in the world in 2007 in terms of the absolute dollar amount invested in renewable energy, according to the Climate Group. It spent $12 billion, which put it just behind Germany’s $14 billion. These investments have placed China among the world leaders in solar, wind, electric vehicle, rail, and grid technologies. And now approximately 9 percent of China’s $586 billion economic stimulus package will go toward sustainable development (excluding rail and grid) projects.

China is expected to unveil in the coming weeks another extensive and unprecedented stimulus package—reported to be in the range of $440 billion to $660 billion—dedicated solely to new energy development over the next decade, including generous investments in wind, solar, and hydropower. If those expectations are fulfilled, China could emerge as the unquestioned global leader in clean-energy production, significantly increasing its chances to wean its energy appetite off coal, and at the same time ushering in an era of sustainable economic growth by exporting these clean-energy technologies to the world.

The bottom line: China is not there yet, but it is beginning to transition to a clean-energy economy through a wide range of actions. The United States should recognize China’s efforts and encourage China to expand upon them. We have sketched this claim before, but let’s run though the numbers in more detail. Read the full story

Green Hops: Green People's Congress, Beijing Solar Thermal Plant, Forestry Initiatives

This edition of Green Hops is dedicated to Andrew Symon, a Singapore-based journalist specializing in energy and whom I have had the pleasure and honor of making an acquaintance of as a result of his writings at Asia Times Online.  He passed away unexpectedly on February 24, 2009.  Andrew’s generosity, sense of mission and powerful intellect will be sorely missed.

Energy intensity (energy consumption per unit of GDP) last year was reduced by a further 4.59%, bringing the three year total in energy efficiency gains in 2006 through 2008 to 10.08%.  This means that to reach its 20% energy intensity reduction target over the five year period for 2006 through 2010, it will have to reduce almost another 10% in energy intensity over 2005 levels.  Even if it seems difficult to achieve, such efforts much press on.  To sobering reality is that China’s annual greenhouse gas emissions surged 45% from 2002 to 2005 alone due to a combination of structural changes in industrial activities and increased consumption.  Half of that increase, apparently, was driven by manufactured exports. But the Chinese authorities say that exports in general are declining (25% year on year) and that the amount of “high-energy-consuming products” exported in 2008 declined 16.2%  from the previous year. Read the full story

By Julian Wong Feb.13.2009
In: biofuels, government, green hops, hydro, nuclear, oil, policy, smart grid, solar, wind
1 comment

Green Hops: Energy Law & Plan, Big 5 Subsidized, Installed Wind Doubles

Today’s Green Hops, focusing on energy supply, is a continuation of yesterday’s.

Two important macro-policy documents are in the works.  CELB reports that the comprehensive Energy Law may be passed in 2010 (though this Chinese clipping suggests it may be as early as this year), and that the 12th Five-Year Plan for Energy (2011-2015) is in draft mode.  Nuclear, wind and hydro seem to bet the alternative energy sources of choice.  This alternative energy review by China Daily, in its “Mixed Energy Forecast” seems to similarly suggest the short shrift given to solar.  How unimaginative.   I’m sure the solar industry would have something to say about that.  In fact, it has (see solar section below).

Before turning to the knitty-gritty of the green and brown energy news developments over the past weeks, I would like to highlight a sage piece of advice from CELB, that recognizes that China is still in many ways, but especially economic development, very much a “Rule by Plan” rather than “Rule of Law” society: Read the full story

By Julian Wong Nov.22.2008
In: biofuels, coal, nuclear, oil, policy, water
12 comments

Watergy: China's Looming National Security Crisis

China is not going to solve its energy problem if it does not solve is water problem (see previous post on “China’s Water Torture“).  It is as simple as that.

The fact is, the exploitation of just about every energy resource (including renewables, but especially fossil fuel) requires water.  Conversely, the purification of water for drinking requires energy, and some purification methods, such as desalination, require a lot of it.

Click to enlarge.  Source: “Energy Demands on Water Resources” a December 2006 report by the Sandia National Labs to the U.S. Congress on the interdependency of water and energy that remains the definitive report on the topic.

In energy resource and water scarce China, the energy-water nexus, or watergy, is a twin threat. Power production in China has to compete with agriculture, industries, and environmental flows for an already scarce resource.  China relies heavily on coal for electricity, is pushing hydro power and nuclear as major alternative sources of energy.  Coal-to-liquids (CTL or coal liquefaction) has also been cited as a way to reduce China’s dependence on oil imports.  According to the Pacific Institute, there have been Read the full story

JUCCCE Clean Energy Forum--Closing Summary

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

Green Hops: Walmart, Geely, Smart Grid

Climate Social Responsibility.  At its firs global supply-chain summit in Beijing, Walmart, the world’s largest retailer, launched an ambitious program dubbed the “Global Sourcing Responsibility Initiative” that will require its Chinese suppliers (which may number up to 20,000 according to China Daily) to abide to potentially costly energy efficiency targets, to be verified by third party audits, among other environmental and social goals.  The program will be expanded worldwide by 2011.

A new report by the Carbon Disclosure Project suggests that major Chinese companies lag far behind their foreign counterparts in carbon-risk awareness and carbon reporting.  But China Mobile (the world’s biggest wireless operator with 420 million subscribers), Broad Air Conditioning (the world’s leading manufacturer of low-energy air-conditioning units) and Suntech (the world’s third largest solar energy company) are not among these companies as they have just joined the Climate Group’s global climate coalition.  As members to this coalition, the three companies will make ambitious emissions reduction commitments beyond what is currently required by law.  China Mobile, for instance, has set itself the target of reducing its energy intensity by 40%, double the national target, reports The Guardian.

Auto & TransportationGeely, China’s first independent auto maker, is looking to follow BYD Auto’s footsteps to export its electric vehicles (EV) technology.  Read the full story

Green Hops: BYD Auto, Algae, Green Bricks

BYD Auto/ Warren Buffet Update. Seems like the investment of Warren Buffet’s MidAmerican Energy Holdings in Shezhen-based BYD Auto is not just a bet on electric vehicles, but also on the collaboration between MidAmerican and BYD to develop “rapid charge batteries” for electrical grid systems to serve as energy storage for renewable but intermittent power such as wind and solar, revealed MidAmerican’s chairman, David Sokal, at a press conference earlier this week in Hong Kong. (I have argued before in my solar blog how grid-tied energy storage solutions are the key to a clean electricity revolution.) Elsewhere, it appears more definitive that BYD’s entry into the Israeli market will be facilitated by Clal Industries and Investments, a unit of conglomerate IDB Development. Clal will start importing BYD’s electric vehicles into Israel next year. Such developments have apparently caught the eyes of Portland’s city officials, who are trying to woo BYD to start make America’s greenest city its North American hub.

Post-Olympic Traffic Measures Draw Mixed Reactions. As smog re-envelopes Beijing, the capital is reinstating a modified set of traffic measures to curb the growth of auto emissions that will, among other things, ban corporate and private cars from taking to the roads one day per week depending on their license plate number. Xinhua reports mixed reception to the measures, with some contemplating purchasing a second car, and others more astutely observing that “to ban should not be the ultimate way to ease Beijing’s traffic woes… Read the full story