news20091118nn

[naturenews] from [nature.com]

[naturenews]
Published online 17 November 2009 | Nature | doi:10.1038/news.2009.1092
News
Climate model sets tough targets
International group outlines steps needed to reach 'safe' levels of carbon dioxide.
Olive Heffernan

{{A new model suggests that emissions will have to near zero by 2100.}
Ingram Publishing}

Carbon dioxide emissions will have to be all but eliminated by the end of this century if the world is to avoid a temperature rise of more than 2 ºC, scientists warned yesterday. And it might even be necessary to start sucking greenhouse gases out of the atmosphere.

The findings are the culmination of five years work by Ensembles, a major European research consortium led by the UK Met Office Hadley Centre and involving 65 other research institutes worldwide. In the first study of its kind, scientists in the project used a variety of the latest global climate models to determine the reductions needed to stabilize levels of greenhouse gases, termed CO2 equivalents, at 450 parts per million. That level, which offers a reasonable chance of keeping the temperature rise under 2ºC, is the goal of European climate policy.

The results suggest that to achieve that target, emissions would have to drop to near zero by 2100. One of Ensemble's models predicted that by 2050, it might also be necessary to introduce new techniques that can actually pull CO2 out of the atmosphere.

Ensemble is a radically different approach from the gold-standard climate projections, which are run by Intergovernmental Panel on Climate Change (IPCC), the United Nation's climate body. The IPCC runs models for a range of 'what if' scenarios that make various assumptions about the future, such as the level of emissions, technological and economic development. None of these scenarios account for the impact of policy on climate change.

Latest model

The Ensembles project works the other way around. Its scenario, named E1, assumes that atmospheric levels of CO2 equivalents cannot rise above 450 parts per million, then looks at the mitigation that policy-makers would need to pursue to achieve that. Currently, the level of atmospheric CO2 sits at 390 parts per million, about a third higher than that of pre-industrial times.

The results suggest that simply switching to renewable sources of energy may not be enough to stabilize emissions. "It's clear that if we continue our current emissions trajectory and we want to stay at 450 parts per million, we'll need to pull CO2 out of the atmosphere," says atmospheric scientist Ken Caldeira, who works at the Carnegie Institution for Science's Department of Global Ecology in Stanford, California. That could mean deploying new techniques for capturing carbon, such as biochar, reforestation or air filtering, on a massive scale.

Caldeira adds that action now could be a better option. If people stop building new CO2-emitting devices within the next decade, they could achieve the same result at a lower cost.

The results should send a strong message to climate negotiators, who are expected to delay signing a global climate treaty beyond the December deadline set by the United Nations. "Policy-makers need to think very seriously about what kind of world they can point us towards," says Paul van der Linden, director of the Ensembles project.

"We need to reverse the trend of increasing emissions and for that we will need strong policy," adds Jean-François Royer of the National Meteorological Research Centre in Toulouse, France, who headed up the work on the new scenario. "If there is no international agreement to reduce emissions, no one will do it by themselves".

E1 is a taste of things to come. The IPCC will employ the same approach in its next report, due out in 2013.


[naturenews]
Published online 17 November 2009 | Nature | doi:10.1038/news.2009.1093
News
Biologists rally to sequence 'neglected' microbes
For scientists, the thousandth microbial genome is just the start.
Elie Dolgin

{{Scientists want to sequence thousands of microbial genomes from across the tree of life.}
R. Kaltschmidt /LBNL}

The GenBank sequence database, the central repository of all publicly available DNA sequences, counted its thousandth complete microbial genome this month. But a thousand genomes is only a small fraction of the diversity that exists in the microscopic world. Now, scientists want to fill in the gaps.

"The broad brush strokes of microbial diversity are not adequately represented in that first thousand," says Stephen Giovannoni, a microbiologist at Oregon State University in Corvallis. "It's absolutely important that we sequence more."

Enter the Genomic Encyclopedia of Bacteria and Archaea, a project spearheaded by the US Department of Energy's Joint Genome Institute (JGI) in Walnut Creek, California, which aims to sequence the genomes of another thousand or so microbes.

The vast majority of microbial species that have had their genomes decoded come from just three groups and were chosen because of their medical or environmental importance. The encyclopedia's researchers are picking microbes from many more branches of the evolutionary tree of life.

Branching out

A pilot project, led by Jonathan Eisen, an evolutionary biologist at the University of California, Davis, demonstrates the ways in which such as approach can pay off. Eisen's team selected and sequenced more than 100 'neglected' species that lacked close relatives among the 1,000 genomes already in GenBank. The researchers reported earlier this year at the JGI's Fourth Annual User Meeting that even mapping the first 56 of these microbes' genomes increased the rate of discovery of new gene and protein families with new biological properties. It also improved the researchers' ability to predict the role of genes with unknown functions in already sequenced organisms.

"There's no doubt to us that filling in the branches of the tree is going to be useful to lots of scientific studies that use genomic data," says Eisen. "There have been four billion years of evolution and we can really benefit from having some of that information in our databases."

All these new genomes should improve researchers' understanding of the evolution, physiology and metabolic capacity of microbes, says Eisen. They will also help match DNA sequences to their proper species from large-scale, high-throughput metagenomic studies from environmental samples, and ultimately contribute in the fields of synthetic biology and genetic engineering.

Microbial madness

The JGI is not alone in sequencing the genomes of new microbes. The next phase of the Human Microbiome Project, an initiative run by the US National Institutes of Health to characterize all the microorganisms living in or on our bodies, involves deciphering 900 microbial genomes of species from five body sites — skin, mouth, nose, gut and vagina. The Ten Thousand Microbial Genomes Project, launched in August by the Beijing Genomics Institute-Shenzhen, plans to create full genome maps for 10,000 strains — but fewer species — of bacteria, archaea, fungi, algae and viruses from a broad range of conventional and extreme environments in China.

And even more ambitious microbial initiatives are in the works. Nikos Kyrpides, head of the JGI's genome-biology programme, is planning an international, five-year effort to sequence all 15,000 known microbes that can live in laboratory culture. He hopes to publish a paper outlining the project's goals in the coming months. "This will completely transform our understanding of microbiology and the microbial planet," he says.

news20091118gdn1

[News] from [guardian.co.uk]

[Environment > Copenhagen climate change congerence 2009]
Obama and Hu aim to agree greenhouse gas targets
Statement by leaders of world's two biggest polluters could breathe new life into Copenhagen climate change talks
Jonathan Watts and Tania Branigan in Beijing
guardian.co.uk, Tuesday 17 November 2009 09.14 GMT Article history

The US and China, the world's two biggest polluters, today said they aimed to set targets for easing greenhouse gas emissions next month, potentially breathing new life into the flagging Copenhagen climate negotiations.

Days after the US president, Barack Obama, said time to secure a legally binding agreement had run out, he and the Chinese president, Hu Jintao, agreed at a summit that they would continue to press for a comprehensive deal at Copenhagen that would "rally the world".

"Our aim there, in support of what the prime minister [Lars Løkke] Rasmussen of Denmark is trying to achieve, is not a partial accord or a political declaration, but rather an accord that covers all of the issues in the negotiations and one that has immediate operational effect," Obama said after holding talks with Hu in Beijing.

In a joint communique, the leaders said an accord in Denmark should include emission reduction targets for rich nations and a declaration of action plans to ease greenhouse gas emissions in developing countries.

Countering concerns that a non-legal deal could evade many key issues, the communique said the climate talks should also increase financial assistance to developing countries, promote technology development, help poor communities to adapt and enhance forest protection.

The two governments also signed agreements to co-operate in the field of low-carbon technology, including the establishment of a joint research centre and the promotion of "cleaner coal" power plants, green buildings and electric cars.

Hu said China and the US had agreed to expand co-operation on climate change, energy and the environment and to "help produce positive outcomes out of the Copenhagen conference".

After weeks in which national leaders have been downplaying expectations for Copenhagen, environmental groups said today's words from the US and China – which between them account for 40% of the world's emissions – had gone some way towards restoring ambitions for the summit.

They called for specific targets to be met, but said more political will was needed to ensure a successful outcome.

During wide-ranging talks with Hu, Obama raised differences over Tibet, human rights, trade and Iran.

While Hu made a pointed reference to trade disputes, the overall focus of the two leaders was on collaboration as they lauded increased co-operation between the countries on issues such as the economy and non-proliferation.

Today's event had been described as a press conference, but no questions were allowed.

Instead, Hu and Obama delivered brief prepared comments on their discussions, which had lasted for two and a half hours.

Obama said the relationship between the US and China went "far beyond any single issue", while Hu described the meeting as "candid, constructive and very fruitful".

However, he added: "I stressed to President Obama that, under current circumstances, our two countries need to oppose and reject protectionism in all its manifestations in an even stronger stand."

Obama said China's partnership with the US had been critical to attempts to end the recession, but again stressed the importance of balanced economic growth and pointedly praised his hosts' commitment "to move towards a more market-oriented exchange rate over time".

China is angry about US steel pipe and tyre tariffs, and is also concerned that the US deficit could threaten its vast dollar holdings as the largest foreign lender to the country.

The US wants China to allow further appreciation of the renminbi in order to shift the huge trade imbalance.

Hu called on the US to respect China's "core interests" – a reference to Taiwan and Tibet.

Obama said the US accepted that Tibet was part of China, but went on to call for the early resumption of talks between Beijing and the Dalai Lama.

He also said the governments would resume their on-off human rights dialogue early next year.

Obama told reporters he had spoken to his counterpart "about Americans' bedrock belief that all men and women possess certain fundamental human rights" and stressed that these applied to "religious and ethnic minorities".

The US president thanked Hu for Chinese support for non-proliferation and the elimination of North Korea's nuclear programme, and the countries are focusing on restarting the collapsed six-party talks.

However, their differences on Iran were obvious, with Obama saying Tehran "has an opportunity to present and demonstrate its peaceful intentions, but if it fails to take this opportunity, there will be consequences".

Hu said only that the issue should be resolved through negotiations. Iran is a long-standing ally of China.

The Chinese leader will hold a state banquet in Obama's honour tonight.

> This article was amended on 17 November 2009. The original named the Danish prime minister as Anders Fogh Rasmussen. This has been corrected.

news20091118gdn2

[News] from [guardian.co.uk]

[Environment > Greenpeace]
Greenpeace chief urges Obama to use 'political capital' to agree climate deal
Kumi Naidoo, the first African to lead Greepeace, says US president risks inflaming anti-American sentiment
David Smith in Johannesburg
guardian.co.uk, Wednesday 18 November 2009 10.42 GMT Article history

The new head of Greenpeace has challenged Barack Obama to agree a binding treaty at the UN Copenhagen climate summit or risk inflaming anti-American sentiment around the world.

Dr Kumi Naidoo, the first African to lead the environmental activist group, said he was not prepared to tolerate "spin and trickery" from negotiators at the crucial meeting.

"It's not to say one is insensitive to the political situation that Obama finds himself in, but we would say he needs to use more of his political capital with the American people," Naidoo told the Guardian in an interview in Johannesburg, South Africa.

He said that after eight wasted years of climate change "denialism" under George Bush, expectations of Obama were far higher, making the US president's recent warning that time had run out to reach a legally binding agreement all the more disappointing.

"There's a missed opportunity for him and the American people around the summit because what it's going to do, sadly, is intensify anti-American sentiment that we've seen rampant in the world, and a lot of the good Obama did through his election and some of his statements potentially will be reversed. Even his Nobel peace prize comes into question."

Naidoo, a seasoned human rights activist who started as international executive director of Greenpeace this week, said that world leaders had no excuse for not attending the Copenhagen summit to agree a fair, ambitious and binding treaty.

"We will not be comfortable with simply a political framework or a political set of agreements, which is what they are now talking about, because the track record of implementation and compliance coming out of UN summits, to put it very generously, has been pathetic.

"Therefore anything short of a binding treaty in Copenhagen must be read as a failure of leadership on the part of the political class. It should also be understood as a failure of democracy because clearly the overwhelming majority of public opinion, even in the United States, is for ambitious moving forward."

He added: "The one thing we will not tolerate coming from Copenhagen is spin and trickery on the parts of the negotiators where in fact they deliver a half-baked deal which they then try to present as a full victory. In that case we will obviously be saying that no deal in Copenhagen would be better than a horrendously bad deal."

Naidoo, 44, is steeped in struggling for a cause against seemingly hopeless odds. He grew up during South Africa's apartheid era in an impoverished township in Durban, attending a school with no electricity and tattered textbooks. At 15 he was expelled for leading a protest against apartheid education.

He was arrested and released several times and went into hiding. His brother was imprisoned and tortured and many of his friends were killed. Naidoo was put on trial and, facing a possible 15-year prison sentence, fled into exile in Britain.

"What I learned from that time, which is helpful now, is not to believe that things cannot change and not to underestimate the power of the voices and actions of ordinary people," he said.

"We never thought change would come as fast as it came. In the mid-80sn it just seemed that it was going to be another 20 years. Therefore when people say we'll never get a treaty in Copenhagen, let's throw in the towel now, I recall that anybody who had said either the Soviet Union would collapse as fast as it did or apartheid would end as fast it did would have been dismissed as a romantic dreamer."

"I strongly believe in the decency of ordinary men and women in rich and poor countries who all care about their children, and their grandchildren, and children in their families. I think when they put the pictures of those kids in front of them and think what kind of planet are we going to give them, I hope people will rise above whatever short-term economic and other interests they might have."

The former Rhodes scholar at Oxford University has a long career in civil society, co-founding the Global Call to Action Against Poverty and currently chairing the Global Campaign for Climate Action. But he has always found Greenpeace's approach inspirational.

"I've been a follower of Greenpeace since I was a child. I remember very vividly the day the Rainbow Warrior was sunk in July 1985 in Auckland. I've always been impressed by the combination of, on the one hand, engaging in dialogue and conventional lobbying and so on, but also being willing to engage in peaceful non-violent direct action where people have taken risks and been willing to go to prison."

"Today I think history teaches us that if we look at some of the major struggles we have won — whether it's the civil rights movement in the United States, the anti-apartheid movement in South Africa, even if you go further back and think about the anti-slavery movement - it is when decent men and women have been willing to bear witness, step forward and in a sense put their lives on the line, if not literally then figuratively."

Naidoo added that, as part of a new strategy, the organisation would look beyond the headline-grabbing stunts that had led some to label it militant and extremist. "There is value in a high profile, small number of people engaged in very courageous activities, but we need now to back that up with much larger mobilisation of people and look at ways in which people who might not be willing to climb a coal-fired power station have other routes to participation in Greenpeace activities."

He said that, in a world where there are currently too many politicians and too few leaders, Greenpeace's role is more pertinent than ever.

"We are talking about being in an extremely inconvenient moment of world history where the future is at stake and the present is already proving to be hugely painful. I think we will not make apologies for speaking truth to power and inconveniencing some political leaders."

news20091118gdn3

[News] from [guardian.co.uk]

[Environment > Conservation]
Madagascar's lemurs in danger from political turmoil and 'timber mafia'
> Extinction fear as agencies halt aid to Madagascar
> Loggers and poachers reverse conservation gains
David Smith in Berenty, Madagascar
guardian.co.uk, Tuesday 17 November 2009 19.36 GMT Article history

The lemur, a furry primate that symbolises Madagascar's unique biodiversity, is under renewed threat from a "timber mafia" pillaging the island's forests for profit.

Environmentalists warn that a political crisis in the impoverished country is reversing conservation gains of recent years and putting "hundreds if not thousands" of species, many not yet identified, at risk of extinction.

Madagascar, which has been isolated from landmasses for more than 160m years, is the world's fourth largest island and a "conservation hotspot" with thousands of exotic species found only here. These include nearly 100 species of lemur, six of which are deemed critically endangered.

Decades of logging, mining and slash-and-burn farming have destroyed 90% of Madagascar's forests, though the rate has slowed in the past two decades.

The former president, Marc Ravalomanana, was praised for putting 6m hectares under protection and backing eco-friendly community projects and sustainable farming. But Ravalomanana was ousted in March in a violent coup that led to a breakdown of law and order and a "gold rush" of armed loggers and poachers. International sanctions have caused the suspension of environmental programmes and could hit 45 national parks that are 90% dependent on overseas aid.

Lemurs' natural habitat is under threat from the accelerating deforestation. In addition, the endangered animals are being hunted for bushmeat, either to be eaten by drought-afflicted local populations or sold as a roasted delicacy in city restaurants.

Dr Hantanirina Rasamimanana, a researcher and teacher at Antananarivo University, said: "Deforestation is always a problem, but in these past five months bushmeat is also very dangerous. People are desperate because of the lack of rain."

She added: "Here in Madagascar, when there is a political change, everything is burning. It's always like that. They burn, they cut, they destroy, they steal. "If they don't stop, I am afraid that some species will become extinct." Conservationists say that armed gangs are exploiting the security vacuum to pillage rosewood and ebony from supposedly protected forests on behalf of a so-called "timber mafia".

This year an estimated $100m worth of hardwood has been cut down and sold, mostly to China to be turned into furniture.

The government, which levies a 40% export tax, is accused of not only failing to stop the trade but actively encouraging it.

It issued an order last month authorising the export of raw and semi-processed hardwood. This supposedly related to trees already felled in cyclones, but environmental activists say it has only provided an incentive for more illegal logging.

Niall O'Connor, head of the World Wide Fund for Nature's Indian Ocean regional office, said: "This is the legalisation of illegally cut timber. The government stands to make a lot from the tax levied on this timber. The current crisis is setting back the good impacts made in conservation in the past 15 to 20 years."

About half of Madagascar's national budget, and 70% of investment spending, comes from outside assistance. But after the coup by city mayor and former DJ Andry Rajoelina, most international donors and lending agencies suspended or cancelled non-humanitarian assistance until a constitutional government is elected.

The WWF has been forced to suspend several projects. O'Connor said: "The impact of not having funding is probably greater than the political crisis. You start to lose the confidence of the communities. If the World Bank doesn't fund Madagascar national parks, they will run out of money very quickly."

Madagascar's $390m (£230m) a year tourism industry, of which eco-tourism is the backbone, is down to just 40% of its normal level due to this year's instability.

O'Connor warned that Madagascar's priceless natural laboratory was in jeopardy. "We have the potential for losing hundreds if not thousands of species. There are still new species being discovered: plants, birds, chameleons, lemurs, tortoises that we might not yet know about, that could be on the brink of extinction."


[Environment > Rnewable energy]
Wind turbines and solar panels could be put up without planning permission
Schools, stadiums and railway stations could see quick installation of renewable technologies under government proposals
Adam Vaughan and agencies
guardian.co.uk, Tuesday 17 November 2009 14.51 GMT Article history

Wind turbines up to 15 metres high could be put up in industrial estates or farmland without planning permission under plans published by the government today.

Changes to the planning system would also make it easier for new solar roofs to go up on stadiums, schools and railway stations or for offices to be re-clad in solar panels, the Department for Communities and Local Government said.

But the new rules, which would also allow councils and electric car drivers to install charging points on streets and in car parks without a planning application, would come with strict caveats about size, noise levels and visual impacts on an area, the government said.

Installation of renewables ranging from ground and water source heat pumps, biomass boilers, anaerobic digestion system, solar panels and wind turbines could go ahead without planning permission in areas where they would be appropriate, with limits which would vary according to their location.

The overhaul of the planning system, which is being put out to consultation for three months, aims to help people cut their carbon emissions to fight climate change and deliver government commitments to boost renewables.

Housing minister John Healey said: "The people who want to greenproof their homes should get a helping hand, not a stop sign. At the same time we need tough rules so that permitted development does not become a nuisance, so I'm putting in place strong safeguards in relation to noise levels, size, location and the potential impact on an area."

Energy minister Lord Hunt, added: "Our clean energy cashback scheme coming next year will mean people get paid to produce their own renewable energy. We can't allow the planning system to get in the way of tackling climate change."

Friends of the Earth's Executive Director Andy Atkins said the overhaul was welcome but called for a better clean energy cashback deal: "These schemes would be given an even bigger boost if the Government improved on its plans to introduce a feed-in tariff next year - homes, businesses and communities must be paid more generously than currently intended for the green energy they generate."

Currently many householders wanting to add solar panels or wind turbines to their homes have to apply for planning permission with their local authority, despite government reforms of planning laws in 2008 (pdf) designed to make such "microgeneration" installations easier..

Danish wind turbine manufacturer Vestas this summer also blamed the closure of the UK's only major turbine plant partly on UK planning laws. "It is clear there is a need for reviewing [planning laws] in the UK," said Ditlev Engel, the company's chief executive. "Nimbyism is also an issue." In October, the British Wind Energy Association revealed (pdf) approvals by local authorities for small onshore wind farms are down to 25%, a record low and down from 63% in 2007.

Last week, the energy and climate change secretary Ed Miliband announced plans to fast-track larger scale new energy developments such as nuclear power stations and wind farms.

news20091118reut1

[Top News] from [REUTERS]

[Green Business]
Climate talks make progress, pressure on U.S
Tue Nov 17, 2009 12:36pm EST
By Alister Doyle and Anna Ringstrom

COPENHAGEN (Reuters) - Environment ministers made progress on Tuesday toward a scaled-down climate deal in Copenhagen next month, with Washington facing pressure to promise deep cuts by 2020 in greenhouse gas emissions.

"We still need more movement," Yvo de Boer, head of the U.N. Climate Change Secretariat, told a news conference at the end of two days of talks among 40 ministers from around the world on a deal meant to be agreed at the December 7-18 meeting in Denmark.

"Industrialized countries must raise their targets and financial commitments further...I look to the United States for a numerical mid-term target and a clear commitment on finance," he told a news conference.

The United States is the second greenhouse gas emitter behind China but U.S. carbon-capping legislation is stalled in the U.S. Senate. Many nations say that Washington should promise a deep 2020 cut to help unlock a deal in Copenhagen.

"In the end, an agreement in Copenhagen will depend on an American number. Without a clear and ambitious number the whole agreement will be in danger," Swedish Environment Minister Anders Carlgren, whose country holds the rotating European Union presidency, told Reuters.

Ministers said the informal December 16-17 talks, the last big meeting before Copenhagen, marked a constructive step.

"My feeling is that it looks better today than when we started meeting," Danish Climate and Energy Minister Connie Hedegaard told a news conference after the meeting.

TIME TOO SHORT

Several ministers said there was widening acceptance of the idea that the summit would agree a politically binding accord on key issues but that time was too short to agree a legally binding treaty this year as originally hoped.

"We made progress but we have a long way to go," Indian Environment Minister Jairam Ramesh said. "The next six months are going to be much more intensive because you have to translate this politically binding agreement into a treaty."

Many developing nations have strongly opposed any delay of a full treaty, saying their citizens are most vulnerable to impacts of climate change such as heatwaves, droughts, wildfires, rising sea levels, disease or species extinctions.

Denmark envisages a political deal that will include deep 2020 cuts in emissions by all prosperous nations, actions by poor nations to fight climate change and cash and technology to help the poor cope with global warming.

Ministers in Copenhagen welcomed U.S. President Barack Obama's statement after a summit in China that Copenhagen should end with a deal that has "immediate operational effect" even if the goal of a legally binding pact is no longer achievable.

Hedegaard said the looming deadline had helped bringing new commitments in recent weeks from nations such as the United States, Brazil, South Korea, Indonesia, Mexico and Norway.

"DELAY KILLS"

Outside the conference center, a group of demonstrators fell over and played dead beside giant letters spelling "Delay Kills." They say Copenhagen must agree a full legal text or risk ever more deadly impacts from water shortages and hunger.

But others saw hope of a deal next month.

"Reports this week that Copenhagen is as dead as a dodo were wildly exaggerated," Kim Carstensen, head of the WWF's global climate initiative, said.

Danish Prime Minister Lars Lokke Rasmussen, host of the summit, said that Obama's acceptance of a proposed deal on key points in Copenhagen while delaying a full treaty implied U.S. willingness to promise clear 2020 targets for cuts.

"The American president endorsed our approach," he said.

(Editing by Michael Roddy)


[Green Business]
Canadian Solar sees doubling shipments in 2010
Tue Nov 17, 2009 1:27pm EST

(Reuters) - Canadian Solar Inc's third-quarter profit rose sharply on strong demand, comfortably beating estimates, and the company said it expects to more than double shipments in 2010, sending its shares up more than 7 percent to their highest levels in a year.

The company, which backed its 2009 shipment view of about 295 megawatts (MW) to 305 MW, currently sees shipping about 600 MW to 700 MW in 2010.

On a conference call with analysts, the company said it had "reasonable" visibility into the first quarter and 2010.

"We have seen reasonable visibility. Our customers have already given us firm purchase orders for both December and January," company executives said.

The company added that while the first quarter was usually weak, the first quarter of 2010 will be relatively stronger compared with last year.

Canadian Solar said major markets, including Germany, Italy and the U.S. would drive demand, adding that it expects strong growth from newer markets, such as Canada, Japan and China.

"For 2010...countries such as France and India might prove to be dark horses," a company executive said.

"Basically our strategy is to improve our position in traditional markets such as Germany, Italy and Spain, while at the same time, diversifying into other significant markets."

Given strong demand, Canadian Solar said it plans to increase its solar module production capacity to 1 gigawatt by the end of April 2010 from 820 MW currently.

The company, however, warned that average selling prices (ASP) would continue to fall.

"Third-quarter ASPs were just over $2, which reflects the industry average," the company said, adding that prices in the fourth-quarter would likely come in below $2.

Canadian Solar said it was modeling for a sequential decline of about 7 percent to 8 percent for the first quarter, on a Euro basis.

While a fall in prices might be bad for component companies, customers benefit as the lower prices bring progress toward so-called "grid parity," the point at which renewables cost the same as fossil fuel-based forms of power generation.

For the latest third-quarter, the company earned 69 cents a share, more than double the 31 cents a share it earned last year, comfortably beating estimates of 54 cents a share.

Sales nearly doubled sequentially to $213.1 million, coming in above Wall Street view.

Shares of the Chinese solar-cell maker rose $1.35 to a year-high of $21.05, before paring gains to trade up 2 cents at $19.72 Tuesday on Nasdaq. The stock has so far risen nearly seven-fold from a March low.

About 3.4 million shares changed hands in intra-day trade, 2.5 times the company's 10-day moving average.

(Reporting by Adveith Nair in Bangalore; Editing by Jarshad Kakkrakandy)

news20091118reut2

[Top News] from [REUTERS]

[Green Business]
Copenhagen deal to help boost climate fund flows
Tue Nov 17, 2009 1:44pm EST
By Natsuko Waki - Analysis

LONDON (Reuters) - Agreement in Copenhagen next month on a new pact to fight climate change will encourage long-term investors to move into firms better placed to cope with a likely and eventual rise in the cost of carbon emissions.

A strong political deal including targets for emission cuts at the Dec 7-18 summit might be just enough to accelerate moves by investors such as pension funds or sovereign wealth funds to adjust portfolios to better reflect long-term risks from climate change, asset managers reckon.

It is also likely to boost growth rates of firms which are either energy self-sufficient or engage in alternative energy such as wind or solar, while pressuring emission-intensive industries such as utilities, aluminum or car makers.

And a more concrete deal -- such as a legally binding target to cut emissions -- would likely to prompt funds to start to change their asset allocation now to protect portfolios from the impact on companies hit by a rising cost of emissions.

"It's effectively a global treaty to control pollutants. You are intervening in the economy to control and internalize the cost of carbon," said Bruce Jenkyn-Jones, managing director of listed equities at Impax Asset Management.

"The idea that... people will pay for carbon right across the economy will have an impact on products and services. Big energy producers, utilities and industrials will be affected."

Impax manages a total of 50 million pounds in global equities for the UK Environmental Agency's Active Pension Fund.

The strength of a Copenhagen deal is still very uncertain. At a preparatory UN meeting in Barcelona last week, developed countries played down expectations of agreement on a legally binding text, saying that would take an additional 6-12 months.

But developing countries are suspicious of backtracking on commitments from rich nations which have promised to lead in the fight against climate change. They insisted on a legally binding deal in December.

"Politicians have done a good job of lowering expectations. That's exactly why there's real opportunity here. Decisions made in Copenhagen will dramatically influence growth rates of companies you are investing in," said Simon Webber, fund manager at Schroders.

He reckons immediately affected industries from a concrete deal included power generation, utilities and transport, citing that some utilities -- such as Germany's RWE -- could face higher carbon costs that are equal to almost a third of operating profits in the next few years.

He added the $26 billion deal in November by Warren Buffett to buy railway firm Burlington Northern Santa Fe highlighted the long-term viability of rails.

"(An aggressive deal) will mean nuclear power and solar growth rates will take off in these industries. There will be a major shift from combustion engine cars to electric vehicles. There's no other way of meeting tough initial targets," he said.

Malcolm Gray, portfolio manager at Investec Asset Management, says energy self-sufficient industries such as sugar can better cope with emission reductions and will attract flows. Some utilities in the traditional thermal space and aluminum producers that are not diversified will be exposed.

As the cost of goods will be adjusted to take into account the increased cost of production as a result of high carbon prices, consumers with less disposable income and some high-volume low-margin retail business might also be losers.

"We are faced with a world which has a lot more embedded inflation than people currently realize. You could be caught up with a slightly more aggressive inflation cycle globally compared with the deflating world we're currently in," he said.

RISK MITIGATION AND OPPORTUNITIES

The outcome of Copenhagen talks would enable investors to mitigate portfolio risks by better forecasting the likely pace of the rise in the cost of carbon emissions, and seek new investment in industries which benefit from alternative energy.

Long-term investors, such as sovereign funds, are already getting increasingly active in environmental investing, at a time when private sector involvement has been somewhat slow.

Norway's $400 billion-plus oil fund, the biggest owner of European stocks, is investing more than $3 billion over five years into firms engaged in environmental technologies. It is also pushing companies it holds to tackle climate change harder.

"We're best served by promoting good standards of corporate behavior. This is something very consistent with pursuing long-term investment objectives," Martin Skancke, director general of Norway's Ministry of Finance Asset Management Department, told Reuters last month.

Rabobank says the Copenhagen outcome will clarify the framework for the unlisted Dutch bank which is already taking into account the cost of carbon emissions as a risk factor in granting credit facilities.

"We will deal with risk mitigation and business opportunities will come in time," said Ruud Nijs, head of corporate social responsibility at Rabobank.

"If the costs of climate change were taxed -- suddenly we will look at the credit portfolio in a different way. If one of our customers now has to pay for the price for climate, then the risk factor to that customer will change dramatically."

The bank has been investing in renewables in deals worth over 4 billion euros, with its investments in its credit investment portfolio in the past 18 months all in clean technology.

It is a sole debt provider to the Belfuture solar project, worth a couple of hundreds of million euros. It has given project financing of senior debt and equity financing worth 620 million euros for the Belwind offshore wind farm project.

"Copenhagen brings us a better framework to do business with. The positive outcome will automatically generate big cleantech deals, investment in solar, wind and biomass technologies. The pipeline will also increase," Nijs said.

(Editing by Toby Chopra)


[Green Business]
British Columbia narrows clean power bidders
Tue Nov 17, 2009 6:07pm EST

VANCOUVER, British Columbia (Reuters) - British Columbia's main power utility has eliminated nearly one-third of the proposals it received from small electricity producers seeking long-term clean energy contracts, it said on Tuesday.

Out of the 68 proposals initially received, BC Hydro said it will now move forward with discussions with 13 bidders on electricity purchase agreements for their wind, hydro and waste heat projects.

It did not name the 13 but the overall field includes a number of Canada's small clean energy companies such as run-of-river firm Plutonic Power Corp and Naikun Wind Energy.

BC Hydro utility said in a statement it has cut 21 proposals from the field. These include some that withdrew themselves. as well as others that did not meet requirements or were considered too risky.

"In addition, BC Hydro will provide an opportunity for the proponents of the remaining 34 proposals to make their proposals more cost-effective," it said.

The utility plans to start awarding contracts in December, it said.

(Reporting by Nicole Mordant; editing by Rob Wilson)


[Green Business]
Intel sees opportunities in wind, electric cars
Tue Nov 17, 2009 8:02pm EST
By Poornima Gupta

SAN FRANCISCO (Reuters) - Technology giant Intel Corp is seeing big opportunities in wind forecasting for power generation, and in information management for electric vehicles, John Skinner, Intel's director of marketing for its Eco-Technology division said on Tuesday.

Intel already sells microprocessors to wind turbine manufacturers and this would be an expansion of that business.

Adoption of wide-scale wind power would rely on accurate forecasting, such as when the wind would blow and how fast, he said.

"There's a lot of opportunities for sensor technology and high performance computing," he said in an interview on the sidelines of an industry conference. "We are starting to explore it."

Intel has said it wants to grow its processor and software presence outside the traditional markets and has invested in a number of green technology companies through its venture capital arm Intel Capital.

Wind and solar power have gained in popularity but mass adoption has been hindered by the fact that neither power works around the clock. Solar panels don't work at night and wind turbines only spin when the wind blows.

"We see numerical forecasting (in wind) as very interesting opportunity," he said, adding that "every extra bit of granularity and predictability" on wind power is very valuable.

Another sector that Intel is eyeing is electric vehicles.

Skinner said that transportation industry is "very ripe" for the application of microprocessors.

"Electric vehicles are going to contain a lot of electronics," he said, adding that Intel could see itself being involved certain aspects of the electric car such as energy management and range prediction.

"It would be an extension of our business in telematics," he said.

(Reporting by Poornima Gupta; editing by Carol Bishopric)

news20091118reut3

[Top News] from [REUTERS]

[Green Business]
EU, Russia discuss energy, trade and climate
Wed Nov 18, 2009 7:53am EST
By Oleg Shchedrov and Timothy Heritage

STOCKHOLM (Reuters) - The European Union's Swedish presidency urged Russia on Wednesday to do more to combat climate change and discussed Russian energy supplies to Europe, which could be threatened by a dispute with Ukraine.

A senior Russian official also confirmed at the start of a one-day summit with the EU that Moscow wanted to join the World Trade Organization on its own but would coordinate its entry with Belarus and Kazakhstan, its partners in a customs union.

The summit is intended to lay the foundations of a new economic and political partnership between the 27-country EU and Russia, but leaders are setting their sights low because ties are still fragile following Russia's war with Georgia last year.

"We have talked about the most important issues... most importantly we discussed the climate change issue," Russian President Dmitry Medvedev said after a bilateral Swedish-Russian meeting before the summit.

Swedish Prime Minister Fredrik Reinfeldt said Russia and Sweden, which holds the EU presidency until the end of this year, both had a lower level of harmful emissions than 20 years ago but "have the potential to do more."

Medvedev did not immediately comment on Reinfeldt's call for more action on fighting the effects of global warming before international talks in Copenhagen next month.

The EU is at the forefront of efforts to combat climate change while Moscow is widely seen as lagging in this area.

CONCERN OVER ENERGY SUPPLIES

The EU is also concerned about the reliability of energy supplies from Russia and was expected to make this clear during the EU-Russia summit.

Russian gas supplies to Europe via Ukraine, a route that supplies a fifth of Europe's gas, were halted for more than two weeks in January because of a quarrel between Moscow and Kiev, and fears are growing of a new dispute this winter.

The EU and Russia signed a memorandum on Monday requiring both sides to notify the other of any likely disruption to energy supplies and to work together to resolve the problem.

"We not only fully feel EU concerns but share them in full as a reliable supplier," Vladimir Chizhov, Russia's ambassador to the EU, told reporters.

He reiterated calls for the EU to help ensure Ukraine can pay its bills to Russia, suggesting it could use its leverage with the International Monetary Fund.

Chizhov confirmed Russia would seek to join the WTO as a separate entity and as soon as possible.

His comments removed some of the confusion caused by Prime Minister Vladimir Putin in June when he said Russia would join only as part of the customs union with Belarus and Kazakhstan which comes into force on Jan 1.

"After the customs union was formed, some interpreted this as a sign of Russia losing interest in WTO. This is wrong," he said. "Members of the customs union will join the WTO as separate entities but in a synchronized way and with common positions."

Joining the WTO would open markets to Russia, the biggest country outside the 153-country Organization, and open Russian markets to WTO member states. Russia must first resolve several trade and tariff issues.

The EU, which represents almost 500 million people, is Russia's biggest trading partner, accounting for about half its overall trade turnover in the first nine months of this year.

Russia, a country with vast natural resources and a population of about 142 million, hopes to win more foreign investment from the EU following the global economic crisis.

Relations are improving only slowly after the Georgia war in August 2008, which prompted Swedish Foreign Minister Carl Bildt to compare Russia's military intervention to Nazi leader Adolf Hitler's invasion of parts of central Europe.


[Green Business]
India Suzlon unit wins U.S. wind turbine order
Wed Nov 18, 2009 8:31am EST

MUMBAI (Reuters) - India's Suzlon Energy said on Wednesday its German unit REpower Systems has signed a contract to supply wind turbines with a total capacity of 18.45 megawatts to U.S. firm Heritage Sustainable Energy LLC.

Suzlon owns a majority stake in REpower, Germany's third largest wind turbine maker. REpower's U.S. subsidiary clinched the deal.

The contract also provides an option to supply another 10 turbines with total capacity of 20 MW to the U.S. firm.

The company did not disclose financial details of the order.

The turbines under the current order are expected to be installed by the third quarter of 2010, Suzlon said in a statement.

(Reporting by Prashant Mehra; Editing by Malini Menon)


[Green Business]
Fiscal/political risk in Australia ETS debate: report
Wed Nov 18, 2009 8:34am EST
By Michael Perry

SYDNEY (Reuters) - The Australian government's carbon trading plan would reduce more CO2, create more jobs and produce a budget surplus, compared to opposition plans which carry billions of dollars in fiscal and political risk, according to an independent report issued Thursday.

The Climate Institute released the report on the government's planned Emissions Trading Scheme (ETS), the world's most comprehensive, and amendments the opposition is seeking before it will support the proposal in a Senate vote expected next week.

"Under both scenarios...the economy will continue to expand strongly even while shifting onto a low carbon footing," Institute, an independent research organization, said in its costings report.

But the Institute said the opposition's plans "risk greater short term job impacts and carry tens of billions of dollars of extra fiscal and political risk."

The opposition Liberal-National coalition's scheme, which seeks to increase compensation to major emitters, would result in a deficit of more than A$37 billion ($33 billion) by 2020, while the government's plans would generate a small surplus, it said.

The government wants carbon trading to start in July 2011, covering 75 percent of emissions in what could become the second domestic trading platform outside of Europe.

The ETS legislation was rejected by the Senate earlier this year and a second defeat would give Prime Minister Kevin Rudd a trigger for a snap election.

Australia's carbon debate is being closely watched overseas, particularly in the United States where lawmakers are debating their own proposals.

The government this week agreed to an opposition demand to exempt agriculture from the ETS, increasing the likelihood of a deal being reached before the Senate vote.

GOVERNMENT EXCLUDES AGRICTULTURE FROM SCHEME

The Institute report found exempting agriculture without additional policies to reduce emissions would cost businesses and taxpayers an additional A$7 billion.

The government had planned to include agriculture in the scheme from 2015. Agriculture accounts for around 16 percent of Australia's emissions.

Australia, the world's biggest coal exporter, produces about 1.5 percent of global emissions and is one of the world's highest per-capita emitters of greenhouse gases.

The Institute said the costings report was based on an earlier Australian commitment to reduce emissions by up to 15 percent below 2000 levels by 2020.

Australia has now set a reduction target of 5 to 25 percent, with the upper level kicking in if a strong agreement is reached at U.N. climate talks in Copenhagen next month.

"The opposition's amendments would result in a far smaller change in domestic emissions," said the report.

The government's scheme would see 12 percent of the reduction target met through international permits, compared with the opposition's plans, which would see 44 percent of the target requiring permits at a cost of A$7.1 billion by 2020.

Under the government's scheme, trading at a fixed price of A$10 a tonne of carbon dioxide would start in July 2011, requiring businesses to secure a permit for every tonne of CO2 they emit, providing an incentive to curb carbon pollution.

"Unless the government maintains the ability to modify assistance and drive emission reductions in uncovered sectors such as agriculture it is locking in fiscal risk, not managing it," said John Connor, The Climate Institute's CEO.

"Locking in excessive financial support also potentially further undermines Australia's ability to help achieve an effective, binding and fair global agreement by constraining investments in national and global climate change solutions," Connor said in a statement.

"This research shows we should be strengthening, not weakening the CPRS (Carbon Pollution Reduction Scheme), and that both major parties need to come clean on how agriculture will be doing its fair share of the national effort to reduce carbon pollution," he said.

($1=1.077 Australian Dollar) (Reporting by Michael Perry; Editing by Ron Popeski)

news20091118reut4

[Top News] from [REUTERS]

[Green Business]
Wind farms 20 pct of Australia new power projects
Wed Nov 18, 2009 8:35am EST

SYDNEY (Reuters) - Wind farms account for about a quarter of Australian electricity generating developments now under construction or planned as the country moves to increase its reliance on renewable energy, a government report said on Wednesday.

The Australian Bureau of Agricultural and Resource Economics said renewable energy sources accounted for only 3 percent of Australia's electricity generating capacity in 2007/08, according to the latest figures available.

But the country's new renewable energy laws, passed in August, were encouraging the development of new projects. Under those laws, Australia increased its target for renewable energy to 45,000 gigawatt hours by 2020 from a previous target of 9,500 gigawatt hours in 2010.

Coal-fired electricity generation remained the major source of power, accounting for 81 percent of capacity in 2007/08.

In the six months to October, ABARE said there were seven electricity generation projects completed in Australia, comprising one coal, one coal seam gas, two gas and three wind powered projects that in total delivered 1,582 megawatts of extra capacity.

It said nine out of 18 new generation projects at advanced stages of development as of October 31 were renewable energy projects with eight being wind farms and one a hydro-electricity scheme.

Combined the nine projects would produce 873 megawatts out of 3,569 megawatts of new capacity under development, equivalent to about 7 percent of Australia's total generating capacit.

ABARE said the largest renewable project was the A$300 million ($279 million), 111 megawatt Waterloo wind farm in South Australia state by renewable energy firm Roaring 40s.

($1=1.076 Australian Dollar)

(Reporting by Bruce Hextall)


[Green Business]
U.S. coal industry stakes survival on carbon capture
Wed Nov 18, 2009 8:40am EST
By Ayesha Rascoe

NEW HAVEN, West, Virginia (Reuters) - A looming government clampdown on CO2 emissions is about to confront an already embattled U.S. coal power industry with two stark options: capture carbon or die.

Legislation from Congress or tough new regulatory demands could make it costly to spew greenhouse gases, posing a serious threat to the nation's coal-fired power plants.

With coal the single biggest source of carbon emissions, industry backers are pinning their hopes on technology to trap and store these emissions blamed for heating up the planet.

Carbon capture technology is far from a done deal, however. Unproven on a commercial scale, the process is extremely expensive and there are a multitude of safety concerns.

"Right now we have politicians making promises about the technology of carbon capture and sequestration (CCS) that scientists don't know that they can meet," said Graham Thomson, author of a peer-reviewed study for the University of Toronto.

The stakes in this technology are also high for American consumers, who rely on abundant domestic coal for around half of the country's electricity generation.

On the global stage, leaders from around the world will meet next month in Copenhagen to try to agree on binding international targets for reducing greenhouse gas emissions.

With coal the source of 40 percent of global carbon emissions, talks on funding for carbon capture will also likely be a key part of these negotiations.

For American Electric Power Chief Executive Mike Morris, there is no question that this technology is necessary and feasible.

In his office atop AEP's headquarters in Columbus, Ohio, Morris told Reuters: "This country and countries of the world are going to have an approach to cap carbon."

The U.S. House of Representatives narrowly passed climate legislation this year that would limit U.S. greenhouse gas emissions by requiring major polluters to get permits for the carbon they release into the atmosphere.

Although most permits would be free at first, eventually companies would have to pay for or reduce their emissions, which could possibly put major emitters out of business.

In the Senate, key lawmakers are working to craft a similar law that would garner enough support for passage.

If no bill emerges from Congress, the Environmental Protection Agency has taken steps to regulate emissions under the Clean Air Act.

FIRST OF ITS KIND

One of the country's largest electricity generators, AEP is spending money to match the rhetoric. Partnering with the French engineering company Alstom, AEP is pioneering a project that will trap coal emissions and inject the carbon underground at its Mountaineer power plant in West Virginia.

The $73 million test project, which began fully operating last month, is billed as the first in the world that brings all the components of trapping, transporting and storing carbon together at an existing coal plant.

The company hopes it will lead to the first U.S. commercial-scale CCS project, at a cost of about $670 million.

Located amid rolling hills along the Ohio River, AEP's existing plant is a 1,300-megawatt behemoth consuming 12,000 tonnes of coal daily at full capacity.

Using technology developed by Alstom, the demonstration project at Mountaineer captures some of the carbon dioxide produced by the plant and transfers it through pipelines to two sites where it is pumped underground.

NOT A FREE MOVE

"The issue of global warming control is a technology challenge and this project and others like it will demonstrate there is a technological answer," Morris said. "But ... we all need to realize it isn't a free move."

The cost of carbon capture will be high. Earlier this month the International Energy Agency said the world will need to spend $56 billion by 2020 to build 100 such projects, with an additional $646 billion needed from 2021-30.

A report released by the Global CCS Institute in Australia earlier this year said technology development is caught in a classic "Catch-22" situation.

"The only way costs can decrease is by installing a large number of CCS projects worldwide," it said.

Governments may have to foot the bill for many of the upfront costs. AEP has applied to have the U.S. government cover about half the cost of its commercial-scale project.

The technology uses up to 30 percent of a plant's power, meaning it uses more coal and makes less electricity for sale.

Even with advances in technology, consumers will still face some of the costs, said Franklin Orr, director of the Precourt Institute for Energy at California's Stanford University.

"We're going to have to charge ourselves enough for the electricity to pay those costs," he said.

SAFETY CONCERNS

Although hailed by U.S. Energy Secretary Steven Chu as an essential technology, some critics question whether it will be possible to safely trap and store carbon for decades on the scale necessary to address global warming.

To make a serious dent in carbon emissions, billions of tons of CO2 will have to be injected underground.

There are also concerns about leaks from the storage areas. Carbon dioxide in high concentrations can cause asphyxiation but such accidents are considered unlikely. And there are also worries that drinking water sources could be contaminated.

"We're putting a lot of our eggs in one basket, when in fact it may not work at a commercial scale," Thomson said.

Other experts say these concerns can be addressed by ensuring that companies only inject carbon underground in areas that are geologically suited to hold and absorb the gas.

"I'm convinced that can be done safely," Orr said. He noted that industries routinely handle much more dangerous compounds such as methane gas.

While there are many doubters, the march toward deployment of carbon capture technology continues. Governments around the world continue to offer incentives, and funding to trap carbon may be part of international climate change negotiations.

"CCS is the only climate change solution we have for the existing fleet of coal-powered power plants," said Sarah Forbes of the World Resources Institute.

(Editing by Eric Walsh)

news20091118reut5

[Top News] from [REUTERS]

[Green Business]
Carbon trade on brink of boom - or backwater
Wed Nov 18, 2009 8:44am EST
By Nina Chestney - Analysis

LONDON (Reuters) - Emissions trading stands at a crossroads -- a future as a $2 trillion market if the United States bolsters it, or as a modest sideline to energy and commodities trade if a new climate treaty is not agreed.

Some players have bet on the growth of the $126 billion global carbon market after 2012 but regulatory uncertainty will be drawn out for another year as a deadline for a binding treaty on greenhouse gas emissions was pushed back to 2010 this week.

That uncertainty about the future form of emissions trading after the Kyoto Protocol expires in 2012 could put off new entrants and discourage banks, brokers, funds and commodity traders from expanding their operations.

"It looks like carbon trading will remain a small backwater in commodities markets," said David Metcalfe, chief executive of UK-based research group Verdantix.

"With fewer participants coming into the market because of remaining uncertainty, there will be less trading parties, less liquidity and less commission."

The global market is touted to reach $2 trillion by 2020 if nations agree to a new climate pact curbing greenhouse gas emissions and the United States introduces its own federal cap-and-trade scheme.

However, negotiators will not meet a December deadline for agreeing on a binding climate pact in Copenhagen.

In the United States, Senate Democrats are trying to pass climate legislation in the early spring of 2010, Senator John Kerry said on Monday.

But some senators do not back the bill in its current form.

Some banks have already closed their carbon trading desks or reduced staff due to financial difficulties and tumbling carbon prices resulting from the global economic slowdown.

"Desks are watching. They may stay open but lower their participation slightly. Players will be back when something on the table is new," said Emmanuel Fages, analyst at Societe Generale/orbeo.

DIVERSIFY OR DIE

Prices for carbon permits, called EU Allowances (EUAs), under the EU's Emissions Trading Scheme (EU ETS) have fallen by half since last summer. Once famously volatile, they have barely moved out of a 12-15.50 euro range in the past six months.

Without a climate deal, prices are not expected to move significantly in 2010 and analysts forecast average EUA prices anywhere between 12 and 35 euros in 2012.

"As a financial, unless you are doing lots of flow business there is more of a limit to how much you can keep yourself busy in current conditions," an emissions trader said.

With uncertainty over carbon offset regulation set to last at least another year, investors in the U.N.'s Clean Development Mechanism are also increasingly nervous.

As a result, some players are also seeking business in forestry credits or expanding into other commodities, or both.

"There is still a market to 2012 but we have diversified into metals, oil, agriculture commodities and are looking at power and gas in preparation for a watered-down climate agreement," said Eric Boonman, head of environmental markets origination at Fortis Bank Netherlands.

Many players have bet on the emergence of a U.S. emissions trading scheme. Oil trading companies like Gunvor and Mercuria have beefed up their desks in anticipation of a multi-million dollar market.

Compliance players in the EU ETS, such as utilites, have more certainty than most. They have been actively hedging, preparing for the scheme's third phase (2013-2020), when they start paying for carbon permits currently received for free.

E.ON AG's carbon allowance trading volume from January to September grew to 383 million, from 92 million in the same period last year, it said in a trading report last week.

RWE AG's cash outflow early this year to cover 2008 emissions amounted to 1 billion euros, it said in a statement last week.

(Reporting by Nina Chestney; Editing by William Hardy)


[Green Business]
Vestas sees big wind turbine orders in Asia
Wed Nov 18, 2009 9:57am EST
By Leonora Walet, Asia Green Investment Correspondent

SINGAPORE (Reuters) - Vestas Wind Systems said Wednesday it plans to announce significant orders for its wind turbines in the next five months, citing a pick-up in demand for wind power in Asia as more funding for projects becomes available.

"We're looking at substantial projects," said Vestas Asia Pacific president Sean Sutton, who declined to give further details.

"It's going to be a stronger start in 2010," said Sutton.

Like most in the sector, Vestas' sales growth slowed during the financial crisis as funding for projects collapsed. But the Danish wind turbine maker is banking on a rebound in clean energy to bolster order flows for 2010.

"The announcement (for the orders) will progress along this quarter and next," said Sutton.

Vestas' Asia unit, which counts Hong Kong power firm CLP Holdings and Australia's Roaring 40s Renewable Energy Pty among its clients, sees potential wind demand of 3,000 megawatts (MW) in the region.

"The outlook for wind is significant," said Sutton. "We hope to grow our business here provided policies become clear in Asia and finance markets open up."

Vestas Asia Pacific supports sales in Australia, New Zealand, Japan, India and the rest of Asia excluding China.

As of June, the unit has cumulative installed capacity of 4,189 megawatts, with more than half situated in India, according to the company's website.

(Reporting by Leonora Walet, Editing by Jonathan Hopfner)