2007 04 09
Reinventing The City
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The City of Winds image from R. Ouellette's Virtual Metropolis John Street Toronto CD-ROM, 1996

I hope all our readers have had as pleasurable an Easter weekend as I have. I was able to relax for a few days and catch up on some of the renovation chores around the house that remained undone. Why is it that when people of all types and backgrounds take on a big task we inevitably fall into the 80/20% rule? You know what I mean. The majority of the work gets done quickly but the remaining 20% takes disproportionately longer.

The phenomenon is so ubiquitous in life that mathematicians have a name for it - the Pareto principal:
The Pareto principle (also known as the 80-20 rule, the law of the vital few and the principle of factor sparsity) states that, for many phenomena, 80% of the consequences stem from 20% of the causes. Business management thinker Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed that 80% of income in Italy went to 20% of the population. It is a common rule-of-thumb in business; e.g., "80% of your sales come from 20% of your clients."

We don't have to make too much of a conceptual leap to see how variations of this rule play out in the way we design our city. The 80% takes the form of all the infrastructure services, roads, background buildings, and initial planning. The remaining 20% is where great cities are made or miserable cities fail. Toronto's long-suffering waterfront is probable one of our best examples of this phenomenon.

Reinventing our harbourfront is taking such a disproportionate amount of time that outside observers could not be faulted if they thought it was a non-issue to Torontonians. Yet, most of us long for a sustainable waterfront that has the potential to be among the best in the world. We are getting there but are in that interminable 20% zone that, like my renovation, becomes a "Waiting for Godot" existential experience.

A realistic analysis would say that the 20% component of reinventing our city falls into the realm of political expediency. It seems that generally our political class gets the idea that we have to have functional infrastructure like sewers and water and electricity. Where politicians exhibit their human frailties is in the 20% zone which is seen as non-essential or even arbitrary. We now know, however, that it is in the 20% zone of city design and execution that defines who we are as a culture and a place.

Maybe that's what Meis van der Rohe was getting at with his observation that God is in the details. Every project, no matter how large, depends on the success of the smallest of its components. It is that territory - of smallness - that we really know so little about. It really remains an unknown country, a place that is still foreign to us.

I've argued for some time now that new information technologies will close that 20% gap because knowledge and best-practices will become more evenly distributed and available to decision-makers. We are seeing that happen to a degree but the closer we get to solving some of the intractable design and sustainability problems that face our city(ies) the more the friction of change slows us down.

Do you want to reinvent the city? Instead of making one or two beautiful buildings tackle the real problem of the 80/20 rule. If you succeed, you may not just change our city - you may change the world.
[email this story] Posted by Robert Ouellette on 04/09 Comment Here (0)
2007 04 05
Trashing Our Garbage

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You may have heard this week that in addition to raising your taxes beyond the level of inflation the City of Toronto is considering charging you to take away your trash. Welcome to the megacity.

If the two seem connected then you’re probably like most home owners. Let’s think a bit: the cost of water is going up, taxes are going up, and garbage fees might begin. Ouch. That is a lot of extra financial burden on an already highly taxed population. Doesn’t the city argue that other levels of government are already taxing us for many of the services the city must now re-tax us for to cover the shortfalls when those governments don’t transfer the money back to our community?

All of this taxing and re-taxing gets complicated. That’s why the city’s announcement that it may (you just know that it will) begin to charge for garbage removal makes for really bad timing. Why? It is simple. If we really do want the cleaner environment that pollsters say we do then paying for garbage removal will help. It is just too bad the idea seems more like another cash grab by confused governments than a smart way to reduce our environmental impact.

For those readers who are complaining that this new fee is too much then I’d recommend you get Elizabeth Royte’s book, Garbage Land: On the Secret Trail Of Trash. Royte is a skilled writer and her voyage of garbage self-discovery (she asks “where does my garbage go?") makes for a surprisingly engrossing read.

I’ll reveal Royte’s punchline for those of you who are working 16 hours a day to pay off your increased taxes. All garbage is bad garbage. There is no effective way to rid the environment of our trash. The only real answer is to not make it in the first place.

Do you think trucking our garbage 200 kilometers south and burying it is a good idea? Well, sorry, it isn’t for a plethora of reasons from the increased carbon emissions those garbage trucks produce to the inevitable poisoning of the local water table by garbage leachates (when you’re dealing with millions of tonnes of trash all barriers designed to retain toxins fail in time).

Do you think incineration is the answer? Well, wrong again. Even if all those nasty carcinogens our garbage produces are magically vapourized what happens to all the gases and all that heat energy? Global warming anyone?

But wait, how about using our organic waste as fertilizer? Turns out that this is no panacea either. It is not recommended to use city-generated biosolids (a nice clean word for our crap) as a fertilizer for edible produce.

No, the answer is don’t produce as much garbage as we do now. Charging for the disposal of trash will make people aware of just how much waste they produce. That, in turn, will work its way up the consumption food chain to suppliers who will have to pay for the trash they produce while making the stuff that becomes our trash.

The timing of Toronto’s pay-as-you-dump announcement is just plain bad, but let’s not discount it as a money-grab just yet. This is one time when government’s hand in your pocket might just be good for you.

[email this story] Posted by Robert Ouellette on 04/05 Comment Here (0)
2007 04 04
Corporate Knights On Energy & Conflict

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Are Canadian energy companies damaging human rights? The recent issue of Corporate Knights magazine included a powerful analysis by writer Caroline Law on how some of these companies lack human rights policies that could guide them when their operations are in conflict zones.

Canadian extractive companies operate all over the world. They have the potential to make or break the futures of fragile states. A lot depends on how prepared they are to deal with human rights issues and the challenges of doing business in a conflict zone. So how prepared are the most exposed companies? Read on to find out.

Law reveals that of some 21 oil and gas companies operating in conflict zones, only 5 have human rights policies in place.

Only 6 companies have made an explicit commitment to not be complicit in human rights violations.

Five have a mechanism in place to monitor and verify compliance with their human rights policies. 

Four companies state that all security contracts must include provisions that are consistent with the UN Basic Principles on the Use of Force and Firearms by Law Enforcement Officials.

Four companies’ human rights policies specify that the potential impacts of their investments on human rights must be considered prior to investing.

To read more about how companies are representing Canada’s commitment to human rights, see the online version of this story here.

[email this story] Posted by Robert Ouellette on 04/04 Comment Here (0)
2007 04 03
Green Camp Tonight

Green Camp 2 is on tonight at the University of Toronto’s McLennan Physics Labs. Here is their manifesto—of sorts.

Green Camp begins with an assumption, that we, as a species, have most of the technical tools to solve our environmental challenges. From this assumption, we have realized that sharing our knowledge is the key to solving this crisis. There are many solutions, but no panacea. The climate crisis is not one problem it is many thousands of smaller problems overwhelming us in a swarm. However, we have the tools to face all of these problems we just need to get them to the people who can use them. That is what green camp is for.

I’m attending the evening and hope to see you there. The speakers tonight are George Belostsky (George Belotsky is a software architect who has done extensive work on high-performance internet servers, as well as hard real-time and embedded systems. His technology interests include C++, Python, and Linux. He is also the author of the Flightdeck-UI open source project.) and Garrick S. Ng.

Time: 6:45, Tuesday April 3, 2007
Location: Room MP408, McLennan Physics Labs, 60 St. George St., Toronto

[email this story] Posted by Robert Ouellette on 04/03 Comment Here (0)
2007 04 02
Sydney Dims Lights, Saves World?

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Here is a story that fills me with hope. Maybe we are smart enough to deal with the looming global warming crisis before it is too late.

World newspapers reported Sydney Australia’s symbolic dimming of its lights. As many as two million city residents and businesses turned their lights off for 30 minutes on Saturday night. World Wildlife Fund spokesperson Andy Ridley said, “It gives you a lot of hope about humanity.”

WWF organized the event but expressed surprise when more than 50% of the city turned off its lights. Overall energy consumption dropped 10.2 percent between 7:30 PM and 8:00 PM. As a result of their conservation, 24.86 tons of carbon dioxide was not released into the environment. Organizers expected only half that response.

The WWF hopes that next year it can convince citizens of all the world’s cities to turn their lights off in a sequenced “domino” effect of darkened lights that will circle the globe. Let’s ensure that Canada makes a worthy contribution to the project.

Last week’s news about bee die-offs and predator annihilation had me feeling pessimistic about the future. I think back to the world I enjoyed as a kid and am more and more aware that it is increasingly and systematically being destroyed.

However, as a designer I am dedicated to the idea that considered design decisions can slow our decline—but we have to act soon. Sydney’s symbolic act is, I pray, a turning point representing a critical mass of citizen activism aimed at protecting the environment.

[email this story] Posted by Robert Ouellette on 04/02 Comment Here (0)
2007 03 30
McGuinty Government Moves To Ensure Most Vulnerable Share In Economic Growth

http://www.newswire.ca/en/releases/archive/March2007/22/c5643.html

Dalton McGuinty showed some balls today by hiking the minimum wage in Ontario to something that brings workers closer to being able to put a roof over their heads and food on the table. A minimum wage of $10.25 phased in by 2010 is no jackpot adding up to $20,000 pre-tax income, but the extra $4500 a year is a huge step forward. This is another case of the Third Party Effect. Universal suffrage and abolition of slavery also sprung from the platforms of smaller parties who proved their electoral worth, which made it safer for mainstream parties to adopt the position as their own. Ralph Nader would be proud and NDP MPP Cheri DiNovo who spearheaded this increase should take a bow.

Some outdated labour market economists think increasing the minimum wage creates a net hit to worker welfare by reducign employment, but their paradigms discount that labour force participation goes up (http://press.princeton.edu/titles/5632.html) and that due to the heavily concentrated nature of minimum wage jobs in the service sector, which make it difficult for someone in China to flip a burger in Ontario, there is a low elasticity of demand for labour within reasonable bands.

[email this story] Posted by Toby Heaps on 03/30 Comment Here (0)
Will Environment Concerns Bring Down The Conservative Government?

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The minority Conservative government is unhappy with the way opposition parties have rewritten the draft clean air legislation.

Tory environment minister John Baird fought back at the opposition’s contention that the Conservatives were slow to respond to environmental issues.

“I think this is clearly more about politics than it is about serving the environment,” Baird told reporters, blaming the official opposition Liberals.
“I have real problems with the changes to this bill. We’ll take a period to look at the entirety of the damage that the Liberals have done and make a call in the future ... I can tell you I’m not happy."

Liberal environment spokesman John Godfrey replied that the Conservatives asked for major changes to the legislation and got them.

Reuters reported today that:

Last month Parliament approved a law obliging Ottawa to explain how it would meet its Kyoto targets. The Conservatives called the measure “a toothless tiger” because it did not provide any money to implement the cuts called for by Kyoto.

Whichever party ultimately claims the environmental high-ground, Canada and Canadians must embrace the idea that there is no longer an environmental free ride. Every day we are shown signs that the environment is nearly some kind of tipping point that, if reached, will mean our work in protecting the environmental and ultimately ensuring our long-term survival will become exponentially harder.

Yesterday those signs included reports of mysterious massive die-offs of honey bees. Today it was the report that the mass decimation of sharks is resulting in our-of-control growth of scavenger species whose activities compete more directly with resources needed by the earth’s human population.

[email this story] Posted by Robert Ouellette on 03/30 Comment Here (0)
2007 03 27
Ethanol Is Not The Answer

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The Washington Post ran a story this weekend about something we at Corporateknightsforum.com have argued for a while now: Ethanol is not the answer to our energy problems.

The world has come full circle. A century ago our first transportation biofuels—the hay and oats fed to our horses—were replaced by gasoline. Today, ethanol from corn and biodiesel from soybeans have begun edging out gasoline and diesel.

This has been hailed as an overwhelmingly positive development that will help us reduce the threat of climate change and ease our dependence on foreign oil. In political circles, ethanol is the flavor of the day, and presidential candidates have been cycling through Iowa extolling its benefits. Lost in the ethanol-induced euphoria, however, is the fact that three of our most fundamental needs—food, energy, and a livable and sustainable environment—are now in direct conflict. Moreover, our recent analyses of the full costs and benefits of various biofuels, performed at the University of Minnesota, present a markedly different and more nuanced picture than has been heard on the campaign trail.

The move to Ethanol-based fuels is about to politicize the food business and if that happens western governments will open a Pandora’s box of social disparity. Already in Mexico there are complaints that the demand for corn has changed it from a food commodity to an essential energy source and driven corn’s local price up more than 100%. SInce corn is a staple to regional diets, we have the situation where people can’t eat so North Americans can drive their cars.

We call this situation a recipe for long-term social disaster.

[email this story] Posted by Robert Ouellette on 03/27 Comment Here (1)
2007 03 26
The End Of Net Neutrality

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The Internet—as we commonly use it today—has been around now for about fifteen years. To say that it has changed the way we do things is to understate the obvious. Virtually every component of knowledge-driven human exchange has or will be influenced by this remarkable communications platform. The reason why is partly technical to be sure, but the underlying technology is not the only reason. If the Net had not been conceived of as a fundamentally democratic system where no node had dominance over another or no circuit hierarchical influence over a competitor, then it would not be as influential as it is today. The Internet has given us the power to change the world for the better through the rapid exchange of ideas and information. Look at the http://www.wikipedia.com as a classic representation of this ideal.

Some economists and business theorists argue that the Internet represents one of the greatest wealth generating opportunities ever.

All is not good in Net-land though. There are large corporate and governmental forces who don’t like the idea that you can phone Australia for virtually nothing using your Skype connection or bloggers with open-source news networks, for example, can influence elections. It is funny how companies embrace innovation and “free market” ideas when they can dominate but revile those things when their companies have to change or be superceded.

A few big companies do not want to be dissintermediated, so they’ve come up with a plan.

Their scheme goes something like this: You will have to pay more to ensure your circuits can effectively carry VoIP transmissions. Or, certain kinds of content will only be available to you if you pay more. Right now, everyone has access to the same content. If those arguing for a tiered system get their way this will no longer be the case. A great experiment in social democracy will soon whither into clusters of have and have nots.

Paradoxically, this may give our greatest global competitors a huge advantage if they, wisely, choose to keep their systems democratically open. You do not have to be a business innovation theorist to know that open systems with bottom up information flows and equitable knowledge exchange will kick the ass of closed, controlled systems every day.

The people at Corporate Knights Forum ask you to let your politicians know that you want Net-Neutraility. For more information on the topic go to netneutrality.ca. Also take a look at Will Pate’s posting and video on the same subject.

[email this story] Posted by Robert Ouellette on 03/26 Comment Here (0)
2007 03 22
Al Gore Testifies Before The US Senate

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“An Inconvenient Truth” subject and environmental advocate Al Gore testified before the U.S. Senate’s Environment and Public Works Committee.

“We are facing a planetary emergency,” Gore stated. The problem, he insists, is a “moral issue,” not just a political one.

How can the U.S. reduce its carbon emissions to a manageable level? (This is where Gore’s views parallels in many ways those of Corporate Knights’ Editor, Toby Heaps)

  • Institute a tax on pollution, particularly CO2 emissions.
  • Ban construction of coal-fired power plants that don’t capture pollutingemissions.
  • Allow individuals to generate electricity and sell it to utilities.
  • Mandate fuel efficiency for vehicles.
  • Ban the use of incandescent light bulbs.
  • Create a new type of home mortgage that would offset the cost of energy saving improvements.
  • Require public companies to report carbon emissions.

[email this story] Posted by Robert Ouellette on 03/22 Comment Here (0)
2007 03 20
Federal Budget Provides Incentives For Fuel Efficient Vehicles

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We will not provide a full analysis of the federal budget’s impact on the environment. We will, however, take a moment to look at the tax breaks on fuel-efficient vehicles. If you are buying a true hybrid—think Prius here—then you will get a $2,000 reduction in your tax. If, on the other hand, you want to buy a Hummer then you will be paying $4000 more. Seems fair to us (look at yesterday’s post about “externalities” to see why we think this).

Already we are hearing the so-called “big three” auto makers in North America complaining that these taxes will hurt their already tenuous businesses. It is hard to feel sorry for them. I always am in awe to hear these kinds of complaints from free market companies who don’t see the big buying trends coming their way or see them and do not respond to them. Instead, they continue building vehicles that are recklessly energy inefficient. Gas prices go up - who would have imagined that - and, of course, people buy fuel-efficient cars. Gas guzzlers sit on the lot and get turned into scrap metal to be recycled another day.

Did the budget go far enough in protecting our environment? No. The last word goes to Greenpeace:

Greenpeace Canada spokesman Steven Guilbeault said the government “is clearly failing Canadians.”

[email this story] Posted by Robert Ouellette on 03/20 Comment Here (0)
2007 03 19
Does Free-Market Environmentalism Work?

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No matter where you are on the political spectrum, odds are that as a Canadian you have an opinion on what steps need to be taken to salvage our environment. Some of you feel that government is long overdue in taking steps to reduce this country’s carbon emissions. Corporate Knights Editor Toby Heaps has argued for a carbon tax and an overall investment of $100 billion dollars. Others out there say that the free market economy will provide the means to this much needed end.

Free-Market Environmentalism,” as it is called, offers that the free market is best able to respond to the new demands of an environmentally aware marketplace.

My experience suggests that like many complex issues the truth lies somewhere between the two polemics. Free markets are able to move far more quickly than government in certain areas. Governments can establish regulatory frameworks supported by law. Without the two working symbiotically we are bound to fail.

Look at the corrosive expansion of the GTA’s suburbs for an example of what economists call negative externalities in the free market system.

For a whole host of reasons many suburbs are unsustainable: they destroy Ontario’s food-producing lands; they virtually demand that households require two cars because essential amenities are not within walking distance; they assume cheap, abundant energy; they overload the region’s road networks; they don’t pay their share of infrastructure costs; they promote over-consumption; and so on . . .

The free market drove this cancerous growth because externalities were not required to be paid for in the sale costs of those houses. In other words, the costs mentioned above were not part of the financial equation. If they were other types of housing that took external costs into account would have been developed.

Clearly, government was complicit in this regulatory failure. However, as environmental awareness improves we are seeing government change its policies. Ontario’s “greenbelt" regulations are an example.

In practical terms, governments must play a key role in the environmental equation. They are, after all, representative of who we are. Still, they have to be flexible enough to adopt the free market when in doing so will get us to our goals more efficiently.

Can Canada set an example for the world to follow? Can we unite our free market and regulatory systems in a way that will be a precedent for others to follow? Corporate Knights think we can.

[email this story] Posted by Robert Ouellette on 03/19 Comment Here (0)
2007 03 16
Liberal’s Plan to Cut Carbon Lacking in Tough Love

Toby Heaps weighs in:

Stephane Dion’s plan announced today ups the ante from what the Conservatives have on the table about five-fold in terms of impact. By relying on market instruments it will be much cheaper for the government than the current subsidy-intensive path taken by the Conservatives, but, without some lucky breaks, it is still only about a quarter of the scale that would deliver Kyoto.

It’s hard to make a fair comparison, though, until the Conservatives announce their intensity caps and the Liberals announce the building and transport elements of their plan.

Nice to see the carbon budget and deficit analogy, but it is missing the tough love message ‘sacrifice now to dig our way out’ that Paul Martin delivered back in ‘95. That may still be to come on the transport and building parts of their plan.

The Green Investment Account to provide double dividend for GHG reduction action and keeping the money out of general revenues and in the provinces is tailored to the Canadian context and will make the Liberal proposal much more difficult to attack from a number of perspectives.

The potential holes:

  • Companies will have a big incentive to overstate their 1990 emissions. With all the mergers et al it will be hard to call them on it.
  • There appears to be no domestic limit on offsets, so it is possible that the actual price of carbon will be far lower than $20 or $30 dollars. This will limit the power of the incentive for LFEs to make real on-site reductions.
  • The additionality requirement for offsets sounds good in theory, but I am not sure how it works in practice.

Still lots of room for improvement, and I think most Canadians would agree. I am not sure that either of the two main political parties fully appreciate the extent to which the public cares about climate change. In my private conversations with business lobbyists working for heavy emitters who have done their polling, there is a lot of angst as they are finding the public is ready for far more radical proposals than we are seeing right now.

Heavy emitting business may complain, but they should thank their lucky stars if this is the most severe plan they will face.

I guess the bottom line is the Liberal plan puts about half the effective price of $30 on less than half of all industrial emissions. So it’s about a quarter of what needs to be done at the LFE level, but compared to the Conservative plan so far, it looks pretty good.

Dion’s Plan can be downloaded here:
http://www.liberal.ca/pdf/docs/whitepaper_EN.pdf

[email this story] Posted by Toby Heaps on 03/16 Comment Here (2)
2007 03 15
CK Forum’s Kyoto Gap Reality Check: Update #3
You may have noticed that the Federal Government is suddenly pouring a lot of money into green initiatives around the country. Could there be an election in the near future?

Corporate Knights Forum argues that these investments are not even good half-measures. Take a look at our $100 Billion challenge for a solution that will reduce Canada's carbon emissions to a manageable level. The following table shows how the governments commitments fall short of what is really needed.

More Of The Federal Government's Recent Climate Change-Related Announcements

Announcements $Millions Percent
3/13/07, Prime Minister Harper announces ecoTrust funding for B.C. $199 0.20%
http://www.pm.gc.ca/eng/media.asp?category=1&id=1569    
3/11/2007, Canada's new government announces ecoTrust funding for Northwest Territories $5 0.01%
http://www.newswire.ca/en/releases/archive/March2007/11/c9246.html    
   
3/8/2007, Prime Minister Harper announces ecoTrust funding for Alberta $156 0.16%
http://www.pm.gc.ca/eng/media.asp?category=1&id=1565    
   
3/6/2007, Prime Minister Harper announces ecoTrust funding for Ontario $586 0.59%
http://www.pm.gc.ca/eng/media.asp?category=1&id=1558    
   
3/3/2007 Canada's New Government Announces Ecotrust Funding for Manitoba $54 0.05%
http://www.ec.gc.ca/press/2007/070303_n_e.htm    
   
   
3/3/2007, CANADA'S NEW GOVERNMENT INVESTS AN ADDITIONAL $10 MILLION FOR BIOFUEL DEVELOPMENT $10 0.01%
http://www.agr.gc.ca/cb/index_e.php?s1=n&s2=2007&page=n70303a    
   
2/16/2007, ECOTRANSPORT -- CANADA'S NEW GOVERNMENT DELIVERS OVER $100M TO PROMOTE CLEAN, SUSTAINABLE TRANSPORTATION CHOICES FOR CANADIANS $100 0.10%
http://www.tc.gc.ca/mediaroom/releases/nat/2007/07-gc010e.htm  
   
The above $100 million is spread among the three below initiatives:  
The ecoMobility program ($10-million)  
The ecoTechnology for Vehicles Program and the ecoENERGY for Personal Vehicles Program ($36 million)  
The ecoFreight initiatives ($61 million)    
   
2/12/2007, Prime Minister unveils new Canada ecoTrust $350 0.35%
Quebec investment the first of new funding to deliver real results for Canadians  
http://www.pm.gc.ca/eng/media.asp?category=1&id=1532    
   
1/19/2007, PM unveils ecoEnergy Renewable Initiative $1,500 1.50%
http://www.pm.gc.ca/eng/media.asp?category=1&id=1499  
   
   
Running Tally   2.93%
Kyoto Gap Percent Unfilled   97.04%
[email this story] Posted by Toby Heaps on 03/15 Comment Here (0)
2007 03 14
U.K. Conservatives Go Green, Green, Green

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Below are some remarks from the Leader of the Conservative Party of our Commonwealth breathen in the UK. If any of our four federal parties with seats in the house could muster up half as much green gusto, Elizabeth May would not have the total monopoly on Canada’s political greenspace right now.
 

Beyond climate change: David Cameron calls for ‘second front in green revolution - a greener Earth a
In a speech to the Green Economy Conference today, Conservative Party Leader David Cameron, will say:

“For the past year, we have been pressing the Government to go further and faster on climate change - both domestically and through leadership at the international level.

Our efforts are bearing fruit.

This afternoon, the House of Commons will hear from the Prime Minister about last week’s EU agreement to cut carbon emissions by 20% by 2020.
Tomorrow we see the publication of the Government’s Climate Change Bill.

These are welcome steps in the right direction.

But let’s not celebrate too soon.

We’ve had announcements like this before and they haven’t worked.

We must make sure that the measures announced by the Government have real bite – that they’re not just greenwash.

That means passing five tests.

First, at the EU level we need a proper Emissions Trading Scheme.

The current scheme is not working: the EU 15 promised to cut emissions by eight per cent on 1990 levels by 2012, but so far, we have only managed a one per cent cut.

One reason is that some member states are granting more carbon permits than are needed or sustainable.

So I hope Tony Blair will today set out plans to make the Emissions Trading Scheme more open, transparent and accountable and more capable of generating long-term incentives for business to invest in green technology.

Above all we need to tighten the limits on the number of permits that are issued, so that other member states match Britain’s good record.

One way of achieving this would be more open auctioning of permits, rather than allocating them by backroom negotiations.

The second test for government is to ensure a long-term price for carbon in our economy.

That means setting out the shape of the third stage of the EU Emissions Trading Scheme, for the period from 2012 to 2020.

We must align the ETS with the 20% emissions reduction target and agree the carbon caps that will deliver the target.

And in Britain, we should convert the Climate Change Levy into a proper carbon tax, as the Conservative Party has proposed.

These measures will enable a forward price for carbon to emerge, giving investors the clarity and the confidence they need.

The effect of a long-term price for carbon should be to make products and activities that produce high levels of carbon more expensive.

This will spur innovation and the creation of new technologies that give people what they want – from travel to household appliances and energy at an affordable price and with less damage to the environment.

Accurate carbon pricing will enable a proper market to work.

A European market already exists – but the price of carbon is still far too low to support what leading businesses want to do.

So we need to ensure that the regulatory caps and allowances which drive the system are properly set.

The third test is to set annual targets for the rate of carbon reduction.

Look what’s happened over the past few years with targets that are set ten, twenty, fifty years ahead.

They haven’t been delivered.

The Government has put its 2010 target in (...read more...)

[email this story] Posted by Toby Heaps on 03/14 Comment Here (0)
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