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International Energy Agency launches World Energy Outlook 2009 in London

The International Energy Agency>International Energy Agency ("IEA") today launched its annual flagship publication in London. The World Energy Outlook 2009 (WEO 2009) looks at the impact of the economic downturn on energy use, CO2 emissions and energy investment and what will be required at the UN climate conference in Copenhagen to put together an agreement that stops global temperatures rising at a price that is affordable. The WEO 2009 also focuses on the natural gas resource base, current trends and the role gas will play in the future energy mix. Finally, the publication includes a review of energy in Southeast Asia, looking at that fast-growing region and its implications for global energy markets.

The IEA's Executive Director, Mr. Nobuo Tanaka declared that "World leaders gathering in Copenhagen next month for the UN Climate summit have a historic opportunity to avert the worst effects of climate change. The World Energy Outlook 2009 seeks to add momentum to their negotiations at this crucial stage by detailing the practical steps needed for a sustainable energy future as part of a global climate deal" and added that "WEO 2009 provides both a caution and grounds for optimism. Caution, because a continuation of current trends in energy use puts the world on track for a rise in temperature of up to 6°C and poses serious threats to global energy security. Optimism, because there are cost-effective solutions to avoid severe climate change while also enhancing energy security - and these are within reach as the new Outlook shows".

In conjunction with the WEO 2009, the IEA has also released an Executive Summary which provides an overview of the publication's key findings and topics, as well as a Fact Sheet, which provides data in a bullet-point format on the following questions and issues: (1) The sustainability of our current energy pathway; (2) The Impact of the financial crisis on Energy Investment (3) Natural gas' role in the global energy mix; (4) What a low-carbon energy future might look like; (5) The impact of the financial crisis on the outlook for CO2 emissions and global climate; (6) Assumptions on Energy Prices, volatility and the future of cheap energy.

Copies of the World Energy Outlook 2009 can be ordered from the IEA Bookshop.

Liberals propose “Green Shift” through carbon tax

Submitted by Grant Boyle

The federal Liberal Party tabled its Green Shift plan today. Under the plan, the Liberals would tax the carbon content of fossil fuels across the country at the wholesale level, including coal, propane, natural gas, oil and diesel. The tax, like the recently enacted BC carbon tax, would be levied at $10 per tonne of carbon dioxide emissions in the first year. Unlike the BC tax, which rises by $5 per year to reach $30 per tonne in 2012, the federal Liberal tax would rise by $10 per year to reach $40 per tonne in four years. The proposal says that heavy industry and power generation facilities would account for most of the $15 billion that the federal government expects to raise over the first four years of the tax.

The plan says the tax would be revenue neutral to the government and would be accompanied by equivalent tax reductions. Proposed tax reductions include reducing the lowest income tax rate to 13.5% from 15% and reducing middle income tax rates from 22% to 21% and from 26% to 25%. The plan also contemplates a series of credits for child care, low income earners, and rural and northern residents as well as a 1% reduction in the corporate and small business corporate tax rates. There would also be an accelerated capital cost allowance for green investment.

BC's carbon tax comes into effect July 1. The province anticipates $1.849 billion in revenue from 2008/2009 through 2010/11 from the tax and proposes reductions of the same amount - $255 million in tax reductions to small business and corporate income tax, $415 million in income tax reductions, $395 million in low income tax credits, and $784 million in personal tax reductions. Under the BC carbon tax law, the government is obligated each year to publish a plan on how it will allocate revenue from the tax to ensure the tax’s revenue neutrality.

Government Commits To Renewable Energy And Combatting Global Warming

The British Columbia government made a series of dramatic commitments to renewable energy and sustainable development in its 2007 Throne Speech. 
The government dedicated roughly half of the Throne Speech to articulating a series of commitments to combating global warming and climate change, including the following pledges on energy 
·                   Net zero greenhouse gas emissions by 2016 for all new and existing electricity production
·                   90% of all electricity to come from clean, renewable resources
·                   100% carbon sequestration of any coal-fired electricity production facility
·                   Consider all forms of clean, alternative energy to meet energy needs, specifically bioenergy, geothermal, tidal, run of river, solar, wind power, wood chips and wood waste
·                   Make BC a net exporter of clean electricity
·                   Establish a $25 million Innovative Clean Energy Fund to encourage the commercialization of alternative energy solutions
·                   Require methane capture from landfills
·                   Seek new technologies to reduce energy losses in transmission
·                   Facilitate growth and development of local companies providing renewable energy and sustainable development technologies and solutions
These commitments were made as part of the government's overall goal of reducing British Columbia's greenhouse gas emissions by at least 33 percent below current levels by 2020. Other specific commitments included making the government carbon-neutral by 2010, developing a carbon-trading system, phasing in new car tailpipe emissions standards by 2016 to match California's, establishing a hydrogen highway from Whistler to Greater Vancouver and seeking to extend it to San Diego, extending existing tax incentives to encourage the switch to hybrid cars and alternative fuels, and implementing several measures to encourage personal conservation.  
The government has indicated that it intends to bring forth new legislation and regulations to accomplish these goals, but little specific information is yet available. We expect to see a series of measures announced over the next year that will incorporate a blend of new legislation and regulations, tax incentives and similar inducements, and the occasional commitment to new targeted investments and funding. 
Tomorrow's provincial budget offers the government its first opportunity to begin rolling out its implementation strategy, and it has another opportunity this spring with the scheduled release of its new energy policy. However, the government pledged in the Throne Speech to establish a Climate Action Team to formulate targets and measures for achieving the government's central commitments, and it may choose to wait until after that committee has reported back before unveiling its core implementation measures. 
The Throne Speech text is available at http://www.leg.bc.ca/38th3rd/Throne_Speech_2007.pdf .
Stay tuned to this blog for reporting and analysis as more information becomes available and draft legislation and regulations are released.