Moves from the European Union’s Emissions Trading System, Environmental Protection Agency , World Bank and all the latest from other brands in corporate responsibility and sustainability this month
Bad for the economy, good for emissions
The economic downturn has had a big impact on the greenhouse gas emissions of industrial installations and power plants covered by the European Union’s Emissions Trading System. Analyses of data published in April showed that, in 2009, the emissions of ETS participants were down by about 11% on 2008, which in turn saw a 6% reduction compared with 2007, reflecting the reduced production of steel plants and other heavy manufacturers.
The emissions cut might be good news in the short term for the atmosphere, but it also means millions of tonnes of unused carbon allowances will be freed up for offsetting against future emissions. Firms holding large surpluses might be tempted to delay investment in emissions-cutting technology, as they will be cushioned against the financial impact of being obliged to participate in cap-and-trade.
Cleaner cars
The US Environmental Protection Agency in April formalised a limit of 250 grams per mile on carbon dioxide emissions from cars and light trucks. The rule was adopted following agreement between the US administration, the car industry, and the state of California, which had already adopted a set of standards. Essentially the entire US will adopt the Californian limits.
The standard will be phased in from 2012, and is expected to add $950 to the cost of a vehicle, but to save car owners $3,000 in reduced fuel expenditure over the vehicle’s life. The US standard is slightly more generous than EU standards agreed at the end of 2008, which will also be phased in from 2012.
Power to the people
The World Bank in April approved a whopping loan for a whopping coal-fired power plant. The South African project to build the Medupi power station will be backed by $3.75bn from the bank. Medupi will generate 25m tonnes of carbon dioxide annually, more than Croatia, Tunisia and 134 other countries and territories. The loan is opposed by some governments, and slammed by environmentalists, but the World Bank says Medupi is needed to overcome an energy crisis in South Africa. Granting the loan “was not an easy decision”, a World Bank official says.
Shine on
King Mohammed VI of Morocco has given his backing to a $9bn plan to build a network of solar power generation plants, which will by 2020 meet 40% of the country’s energy needs. The project will see five solar power plants constructed in desert areas, to take advantage of Morocco’s annual 3,000 hours of sunshine.
The scheme had been held up by financial concerns, organisational problems and worries over corruption, but now that the king has stepped in, and the Moroccan government says it will cover half of the cost, it is hoped that international donors can be persuaded to participate.
Clouding over
Plans to build a sustainable city in the Abu Dhabi desert have been scaled back, because of financial problems linked to the economic crisis. Masdar City was intended to be funded by oil wealth and entirely self-sufficient for energy, meeting its needs through solar power, with water supplied by a super-efficient desalination plant. It was to be car free (though with underground “podcars”), and ready for residents by 2016. But the cash crunch means development will now be more cautious, and based on there being enough private sector demand. Underlining the reduced ambition, the Masdar City property development unit has made a fifth of its staff redundant.
Lafarge in the spotlight
Tribespeople in the north-eastern Indian state of Meghalaya are expected to benefit from a $12m fund set up by French mining giant Lafarge, to compensate for environmental damage caused by limestone extraction. India’s supreme court ordered the payment in April as a condition of allowing Lafarge to restart mining. This had been suspended in February amid allegations that large-scale removal of forest cover had dramatically altered local rainfall patterns.
Lafarge transfers the limestone from the mine via a 17km conveyor belt to a cement plant in Bangladesh. The company said it was “fully committed to total legal and environmental compliance”. The impacts of such operations in India are increasingly coming under scrutiny from environmental and human rights activists, with UK-based firm Vedanta recently criticised over its plans for open-cast mining on Niyamgiri mountain in Orissa, on India’s east coast.
Cost cutters
European Union countries are falling short on their development aid pledges, according to the OECD. EU countries promised to spend 0.7% of gross national income on overseas aid by 2015, but some of Europe’s richest countries have cut spending in the face of recession. German aid dropped between 2008 and 2009 from 0.38% of GNI to 0.35%, while Italian aid declined from 0.22% to 0.16%. The UK bucked the trend, however, with aid spending rising from 0.43% to 0.52%. The European commission says the EU remained the biggest donor to poorer countries, and “the crisis can’t be an excuse” for not sticking to goals.
Boxed out
The world’s third largest sporting-goods manufacturer, Puma, is to do away with boxes for its sports shoes from 2011. Shoe boxes will be replaced by cardboard frames enclosed in reusable bags. The company said it expected to reduce by 60% energy and water use during the packaging production process, though switching to new processes might cost more initially. According to the German firm’s chief executive, Jochim Zeitz, sustainable practices are “absolutely necessary considering the situation our planet is in”.