‘Green’ Energy is Critical for a Secure Energy Supply

‘Green’ Energy is Critical for a Secure Energy Supply

Green energy systems are essential in securing energy supply and protecting the environment, according to a new report from Lloyd’s 360 Risk Insight and UK think tank Chatham House.

The report finds that the reliance on fossil fuels combined with rising demand from developing economies is pushing the search for reserves into more risky territories, citing the oil spill in the Gulf of Mexico as an example. However, the report also indicates that this could drive the transition to more cost-efficient clean and renewable energy systems.

The report, “Sustainable Energy Security: Strategic Risks and Opportunities for Business” (PDF), indicates that energy price spikes and supply disruptions will become more frequent due to rising consumption, insufficient investment, and threats to installations and transport.

In addition, the cost and associated risks will increase the price of fuel at the pump and impact a wide range of commodities in the short to medium term. Together with political pressure to reduce greenhouse gases and protect the environment, businesses will be forced to become more energy efficient and adopt renewable energy, say report analysts.

The report also finds that businesses need to assess their vulnerability to energy volatility as there is potential for both financial and environmental risks.

But there are plenty of opportunities as well. The expected level of investment in renewables and clean energy — up to $500 billion per year by 2050 — generates plenty of opportunities for business, but the lack of a global agreement on carbon reduction is slowing commitment and investments, according to the report. Report analysts recommend that governments set clear policies and create certainty in the transition to a low carbon economy.

The report also warns that businesses need to prepare for a new set of risks as energy system changes, citing that many renewable technology systems use rare materials (China produces 97 percent of the world’s rare earth metals supply, almost 100 percent of the associated metal production, and 80 percent of the rare earth magnets.) and the increasing reliance on electricity and IT could raise vulnerability to cyber attacks. Analysts advise businesses to reassess global supply chains and increase the resilience of their operations.

Business sector risks:

Urban Environmental Sustainability in the Developing World

The goal of the Pathways to Urban Sustainability Initiative is to enhance the capacity of city leaders in developing countries to use science and technology to achieve their economic development goals while also protecting critical environmental resources and improving the health and livelihoods of their residents. Over the past year, the Academies launched this ambitious program through on-the-ground planning activities in China, South Africa, Tanzania and Mexico.

The next thirty years will be critical to Earth's future. Two billion additional people will be added to the world's population and absorbed into cities and towns of developing countries. The need to find a balance among economic growth, public health, and protecting and managing the planet's natural resources is obvious.

For more information about the Pathways to Urban Sustainability Initiative, please contact Derek Vollmer at dvollmer@nas.edu

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Burt’s Bees, Whole Foods Perceived Greenest US Brands

Burt’s Bees, Whole Foods Perceived Greenest US Brands

A global study on consumer perceptions of green brands and corporate environmental behavior reveals global differences about their top environmental concerns. A key finding shows that while climate change is important across most countries, 30 percent of Brazilians and 26 percent of Indians cite deforestation as the top issue, and in Australia, 68 percent of consumers say it’s important that companies manage water efficiently.

In the United States, energy use is the biggest green issue or problem, although economic concerns are taking precedence over environmental ones with 79 percent of those polled citing greater distress about the economy. Thirty-five percent of respondents say they will spend more on green in the coming year, which is down slightly from last year.

The fifth annual ImagePower Green Brands Survey polled more than 9,000 people in eight countries and was conducted by WPP agencies, Cohn & Wolfe, Landor Associates, Penn Schoen Berland (PSB), and independent strategy consulting firm Esty Environmental Partners.

The survey also reveals that the majority of global consumers plan to spend the same or more money on green products in the coming year, with more than 70 percent of consumers in China, India and Brazil saying they will spend more.

The majority of consumers — over 60 percent — in all countries want to buy from environmentally responsible companies, but the cost of green products continues to be a challenge in developed countries. Selection and labeling are the biggest challenges in developing economies, according to the report.

More than two-thirds of respondents in each country say reducing toxics and dangerous substances is the most important activity a company can do to be green, followed by water conservation or recycling.

Seventy-five percent of U.S. consumers also say that it is somewhat or very important to buy brands from green companies, although more people said that this was ‘very important’ in 2009.

The top ten U.S. brands perceived to be the greenest in this year’s study includes several new companies: Whole Foods, Trader Joe’s, Google, Aveeno, Publix and Microsoft, compared to last year’s survey. Dropped from the 2009 list are Clorox Green Works, Toyota, P&G, Wal-Mart, Disney and Dove.

Other significant changes to the ranking includes Burt’s Bees move from the second position to number one, while SC Johnson dropped to number seven from number four and Ikea fell to number ten from number eight.

Here is the list of the top ten brands.

–Burt’s Bees

–Whole Foods

–Tom’s of Maine

–Trader Joe’s

–Google

–Aveeno

– SC Johnson

–Publix

–Microsoft

–Ikea

The results seem to indicate that Burt’s Bees favorable association with “green” has not been damaged since Clorox acquired it, as some feared.

The study also finds that “helper brands,” which provide useful information, are growing in importance as well as brands that help consumers go green easier through online tools, tips and other communications.

Here are the top green issues:

MEGTEC Builds Methane Abatement System

MEGTEC Builds Methane Abatement System


MEGTEC Systems announced today that it will build the world’s largest methane abatement system to capture and eliminate ventilation air methane (VAM) from the Datong coal mine in China’s Chongqing municipality. The project could generate carbon offset credits (CER) for the company as well.

The system, which will go online later this year, will eliminate 97 percent of the methane within the captured exhaust stream before it enters the atmosphere. The system is expected to reduce greenhouse gas emissions by up to 200,000 tons of CO2 equivalent per year. In addition, energy released in the process will be used to heat water for nearby buildings.

China is the largest VAM emission country in the world. Currently, 70 percent of its energy and nearly 80 percent of its electricity stems from coal.

The project has the potential to generate carbon offset credits. Emissions reduction projects that involve the transfer of technology to an emerging market (China) and are developed under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC) can be considered for CER credits.

The project represents an agreement between MEGTEC and a three-way joint venture partnership comprised of AES Climate Solutions Asia (a wholly-owned subsidiary of AES Corporation), Shenzhen Dongjiang Environmental Renewable Power Company Ltd., and Songzao Coal and Chongqing Electricity Company Ltd., a wholly-owned subsidiary of Chongqing Energy Investment Group.

MEGTEC’s patented VAM technology also earned the company an EPA Climate Protection Award from the U.S. Environmental Protection Agency in 2008, in recognition of its systems’ ability to turn greenhouse gas into green energy.

Recently, Consol Energy announced it would be building a similar methane abatement project in West Virginia that would produce CERs.