Category Archives: Finance

Analysis: use of renewable energy technologies saved billions of dollars (2007- 15) because of avoided deaths, fewer sick days and climate-change mitigation

Akshat Rathi* focusses on the debate ‘raging across the world’ about subsidies to the renewable industry. Though the results of a new analysis in Nature Energy are directly applicable to the US, he points out that many rich countries have similar factors at play and are likely to produce similar cost-benefit analyses.

The study, by Dev Millstein of Lawrence Berkeley National Laboratory and his colleagues, finds that the fossil fuels not burnt because of wind and solar energy helped to avoid between 3,000 and 12,700 premature deaths in the US between 2007 and 2015.

They found that the US saved between $35 billion and $220 billion in that period because of avoided deaths, fewer sick days, and climate-change mitigation.

“The monetary value of air quality and climate benefits are about equal or more than state and federal financial support to wind and solar industries,” says Millstein.

Rathi continues: “Creation of a new industry spurs economic growth, creates new jobs, and leads to technology development. There isn’t yet an estimation of what sort of money that brings in, but it’s likely to be a tidy sum. To be sure, the marginal benefits of additional renewable energy production will start to fall in the future. That is, for every new megawatt of renewable energy produced, an equal amount of pollution won’t be avoided, which means the number of lives saved, and monetary benefits generated, will fall. But Millstein thinks that we won’t reach that point for some time—at least in the US”.

 

We add that In 2015, an LSE article referred to an IMF report which quantified the subsidies provided for the fossil fuel industry, finding the UK was to spend £26 billion that year, far more than the subsidies provided for renewables. It would be good to see a similar cost-benefit study for the UK – China and India have already been covered.

One of the biggest criticisms of the renewable-energy industry has been that it is propped up by government subsidies (often disregarding those delivered to the fossil fuel industry). As Rathi adds, there is no doubt that without government help it would have been much harder for the nascent technology to mature.

There has been a financial return on taxpayers’ investment and above all, we repeat, the enormous benefits of avoided deaths, fewer sick days, and climate-change mitigation.

Akshat Rathi is a reporter for Quartz in London. He has previously worked at The Economist and The Conversation. His writing has appeared in Nature, The Guardian and The Hindu. He has a PhD in chemistry from Oxford University and a BTech in chemical engineering from the Institute of Chemical Technology, Mumbai.

 

Read the full article here: https://qz.com/1054992/renewable-subsidies-are-already-paying-for-themselves/?mc_cid=d6d241ad3c&mc_eid=d89c5d2450

 

 

 

p

Working for the common good: Ketumile Masire,1925-2017

Emily Langer in the Independent has written an obituary of Ketumile Masire – a statesman who described himself as ‘a farmer who has been drawn into politics’.

A summary with added links and photographs

Masire herded cattle before enrolling in a primary school at 13 and receiving a scholarship to attend a high school in South Africa that trained many leaders of the first government of independent Botswana. When his parents died he supported his siblings, becoming a headmaster. He later earned a Master Farmers Certificate, and having saved enough money to buy a tractor,  became a BBfarmer, using modern agricultural techniques.

Botswana cattle

He served on tribal and regional councils and was a founder and secretary-general of the Botswana Democratic Party, now the country’s leading political party. He once travelled 3,000 miles of the Kalahari desert to attend two dozen meetings over two weeks.

After serving as minister of finance and development planning and Vice President, Ketumile Masire became President of Botswana (1980-1998): roads and schools were built, healthcare improved, access to clean water expanded, farming techniques advanced and life spans extended.

The discovery of diamond reserves had transformed the country’s prospects and Masire continued to use the revenues for the public good after the death of his predecessor Seretse Khama.  He became ‘a model leader in a model nation on a continent where poverty, corruption and violence had crushed the hopes of many for stability and prosperity’. 

After leading Botswana through a drought that persisted for much of the 1980s, he shared the Africa Prize for Leadership awarded by the Hunger Project in recognition of the food distribution efforts that helped the country avoid starvation during the crisis.

Though South Africa was Botswana’s major economic partner, Botswana opposed apartheid. “He had to walk a fine line in a really rough neighbourhood,” said Chester Crocker, a former US assistant secretary of state for African affairs. “He had to get along with everybody, without sacrificing his principles.”

After leaving office, in addition to tending the cattle on his ranch, Masire advised other African leaders and chaired an international panel that investigated the Rwandan genocide of 1994. He made important contributions to peace efforts in Congo and, more recently, Mozambique. He established a foundation which seeks to improve agriculture, governance and children’s health in the region.

He once said: “We have a saying in Botswana: A man is never strong until he says what he believes and gives other men the chance to do the same. I am proud to say without a doubt – we are a strong democracy.” 

A more chequered account of his life is given in Wikipedia.

 

b

Textiles: returning to domestic production, rebuilding local economies

Five years ago Inbusiness reported a British textile manufacturing revival, ‘led’ by Lancashire. It reported that, after decades of decline due to rising foreign competition, tariffs and protectionism, and Britain’s high cost base, some manufacturers are successfully competing with overseas suppliers. This 2012 text prompted a search to see what is happening today.

Leigh Spinners, once a cotton mill, operated by the family firm that built it, now focuses on making  carpets and synthetic turf. John Morrison, managing director explains:”About three years ago we decided to convert to tuft grass, artificial grass,” he explains. “We make 150,000 square metres a year. There is big demand, for school playing fields, and so on”. Its huge listed building is now underutilised and Leigh Building Preservation Trust is working with the Prince’s Trust and Leigh Spinners to restore the building for additional uses.

Lance Mitchell, of Mitchell Interflex in east Lancashire, makes cloth, furnishings, interlining and traditional narrow striped fabrics for deck chairs and might have further diversification in mind as he finds the ‘industrial side of fabrics’ fascinating: “Modern fibres are being developed all the time – McLaren cars are based on a woven product, and the next generation of aircraft, they say, will be woven”. This brings to mind the work done on hemp-based panels for the car industry (‘biocomposites’) piloted earlier at the University of Bangor.

S Dawes Weaving in Nelson makes ‘high end’ jacquard fabrics for the furnishing, upholstery, industrial and apparel markets (including organic cotton), as well as high-performance fabrics for the automotive and defence sectors. In 2015 Dawes upgraded its design capability with the purchase of the Ned Graphics software system along with new Jacquard looms. This was followed by further capital investment last year when they took delivery of a Karl Mayer GOM Sample Warping Machine. June 2017 saw another major investment: a new single end Jacquard machine – one of only 3 in Europe.  Their prices are similar to those of comparable material made in the Far East because of the difference in transportation costs and taxes. Dawes’ designer Joanna Brocklebank (above) oversees the designs for such clients as John Lewis and Laura Ashley.

Community Clothing is a manufacturers’ cooperative (workforce above). On top of intense competition from cheap labour markets one of the biggest challenges the UK factories face is the seasonality of demand. For several months of every year even the best factories are operating at well below full capacity. Community Clothing was founded in 2016 to address this exact issue. By utilising the spare capacity to make a range of stylish, great quality, British-made clothing, Community Clothing are able to create job opportunities and stability, filling British factories all year round.

David Collinge manages John Spencer Textiles, a family-owned company in Burnley, which had formerly specialised in shirt materials but had to find a new market. They began to make fabrics for the Ministry of Defence, for combat clothing, artillery uses and parachutes. They also developed their own brand in furnishings and home textiles. They are to invest £400,000 in new technology and equipment with the support of a £55,000 grant from the N Brown Textiles Growth Programme.

Bolton Textiles Group supplies contract furnishing fabrics and production and design services to retail, hotel, cruise ship, restaurant and bar operators The Bolton Textiles Group comprises four companies, Rufflette, Cliq Designs, Sinclaire and JH Cunliffe & Co, covering textiles, manufacturing, weaving, yarn processing and ‘cut, measure and trim’ services. The companies share two factory sites in historic converted mills in Bolton and Rochdale, producing curtains and curtain tapes, quilted and bedding products and fabric designs.

Lancashire Textiles persevered throughout the difficult times and continues to be a strong and successful business. Its workforce produces superior quality products manufactured in-house to British Standards 5335 1994, 5852 parts 1 and 2 and 7175. It has a vast range of online products and an experienced sales team. Its products range from quilts, pillows, cushions, mattress toppers, mattress protectors, duvet covers and other bed linen, to bath towels and made to measure items.

The latest news from the county is that the Lancashire Textiles Manufacturing Association ran its 7th Student Study Tour on 17th May this year.  The study tours give textile undergraduates from Manchester Metropolitan University an opportunity to see commercial textile production. They visited D H J Weisters in Darwen, which weaves quality fabrics, Blackburn Yarn Dyers (cotton and blended yarns) and John Spencer Textiles in Burnley where they saw a range of fabrics being produced, including curtaining, protective clothing, fashion  and industrial fabrics.

It is often recorded that investment in better machinery brings rewards and a fairly new development in the SME sector is the acquisition of software for a whole range of purposes from marketing management to stock control; Dawes installation of  NED Graphics is one example. Another company recently recommended OrderWise which automatically accounts for stock levels, forecasts demand, forwards orders, records minimum stock requirements and even emails, faxes or prints orders then sent directly to suppliers in their native currency.

27 textile companies in Lancashire have been supported by the N Brown Textiles Growth Programme delivered across the UK and funded by the Regional Growth Fund. Set up by the Manchester Growth Company for the Combined Authority in Greater Manchester and the Alliance Project, this programme has created or safeguarded 443 jobs in Lancashire and encouraged investment by these companies: with over £1.7m of government funding since 2014, the textile companies in Lancashire have invested almost £7m.

 

 

m

Swiss voters embrace shift to renewables and ban new nuclear plants

Reuter journalists Michael Shields and John Miller reported from Zurich that Swiss voters have backed the government’s plan to provide billions of dollars in subsidies for renewable energy, ban new nuclear plants and help to bail out struggling utilities in a binding referendum.

The Swiss initiative mirrors efforts elsewhere in Europe to reduce dependence on nuclear power, partly sparked by Japan’s Fukushima disaster in 2011. Germany aims to phase out nuclear power by 2022, while Austria banned it decades ago. “The results shows the population wants a new energy policy and does not want any new nuclear plants,” Energy Minister Doris Leuthard said:

“The law will boost domestic renewable energy, cut fossil fuel use and reduce reliance on foreign supplies”.

Leuthard said the package would cost the average family 40 francs more a year, based on a higher grid surcharge to fund renewable subsidies. Under the law, 480 million francs will be raised annually from electricity users to fund investment in wind, solar and hydro power. An additional 450 million francs will be set aside from an existing fossil fuels tax to help cut energy use in buildings by 43 percent by 2035 compared with 2000 levels.

Solar and wind now account for less than 5% of Switzerland’s energy output, compared with 60% for hydro and 35% for nuclear. Under the new law, power from solar, wind, biomass and geothermal sources would rise to at least 11,400 gigawatt hours (GWh) by 2035 from 2,831 GWh now.

Most parties and environmentalists hailed the result. “The voting public has … paved the way for a future that builds on sustainability, renewable energies and energy efficiency. Today’s decision is good for the climate, the environment, our jobs, the Swiss economy and the whole population,” the Social Democrats said.

The growing number of American visitors to this site (left) will contrast this decision with the stance of Myron Ebell, who led President Donald Trump’s transition team for the U.S. Environmental Protection Agency. He recently complained that the new administration is moving too slowly to unravel climate change regulations.

 

Visitors from 10 countries came to this site in May. Noting the Slovenian contacts we were pleased to read that the European Commission has agreed to finance a grid-integration project between Slovenia and Croatia through the Connecting Europe Facility. It will improve the links between the electricity grids of Slovenia and Croatia, and drive renewable energy development across the region, allowing smaller power producers to participate in the local market, and including storage solutions in order to stabilize security of energy supply. Source: https://www.pv-magazine.com/2017/05/22/eu-supports-integration-of-renewables-between-croatia-and-slovenia-with-e40-million/

 

 

k

What went right? January to March 2017

From political upheaval to natural disasters, the first three months of 2017 have seen many challenges. But behind the headlines, there are signs of progress and possibility. Here are 20 of our favourites

  1. China is planning a national park three times larger than Yellowstone in the US, to help boost the wild population of giant panda. It will link 67 existing reserves to make mating easier
  2. A seven per cent annual drop in teenage suicide attempts among US high school students is linked to the legislation of same-sex marriage, say researchers
  3. More than 30 million people in Kerala, India, will given access to free WiFi after the state declared it a basic human right
  4. El Salvador became the first country in the world to ban metal mining
  5. Clean energy jobs in the US now outnumber jobs in oil and gas by five to one
  6. Denmark announced it has reduced food waste by 25 per cent in five years
  7. Experts revealed that 86 per cent of new power in Europe came from renewable energy sources in 2016 with wind energy overtaking coal as the largest form of power capacity
  8. The world’s largest fund manager, BlackRock, has warned it will vote out directors of companies who fail to address the risks posed to their businesses by climate change
  9. A teenager is on track to plant a trillion trees. Felix Finkbeiner, 19, who began his tree-planting quest when he was nine, founded environmental group Plant for the Planet. It has overseen the planting of more than 14bn trees in 130 countries and aims to plant 1tn – 150 trees for every person on Earth
  10. The value of UK ethical markets grew to almost double that of tobacco, new research suggests

Read on here for the other ten points; https://www.positive.news/2017/society/media/26491/went-right-jan-mar-2017/?mc_cid=e55ab60695&mc_eid=99a7ecd039

 

 

 

A good report from the Ecology Building Society

The Ecology Building Society is dedicated to improving the environment by supporting and promoting ecological building practices and sustainable communities.

It aims to build a greener society by providing mortgages for properties and projects that adopt environmental building practices and improve the energy efficiency of the UK’s building stock, funded through their range of simple, transparent savings accounts.

History

In 1980, during a conference of the Ecology Party (the forerunner of the current UK Green Party), a Yorkshire based solicitor complained of the difficulty he had in finding a mortgage for a property needing extensive renovation. Someone asked ‘Why don’t we start our own building society?’ In those days, a building society could be started with just £5,000. Ten people put in £500 each and some of those still save with the society. It began trading in 1981, from a tiny upstairs office in Cross Hills, West Yorkshire, just a few miles from the current headquarters’ eco-build offices (section above).

April AGM approaches

Several reports have been written about this year’s progress. The first lead was a link from the Business Desk (Yorkshire), which led to an article recording another year of solid results, which continues more than 30 years of uninterrupted profitability with record assets and savings balances for 2016.

For the year to December 31, 2016, it recorded assets of £173.1m (2015: £145.9m):

  • gross lending stood at £30.7m (2015: £42.1m)
  • savings balances rose to £163.1m (2015: £134.7m)
  • and net profit increased to £920,000 (2015: £881,000).

In 2016 Ecology lent more than £30.7m for sustainable properties and projects, with 94% of mortgages advanced on residential properties, including new builds, renovations and shared ownership, and 6% on community-led housing, including charities, housing co-operatives and community businesses. Chief executive Paul Ellis (left) said: “Our priority for 2017 is to continue to grow our mortgage book, particularly supporting more and more people to renovate their homes to a high environmental standard.

“Our financial success is based on sticking to our core principles: thinking long-term, putting our members first and focussing on our social and environmental impact”.

 

 

 

Rooftop solar power systems on India’s railway stations funded by coal tax

Saurabh Mahapatra is a young solar enthusiast from India who has reported on emerging solar power markets in several countries. On the Clean Technica website, he records that in  February’s union budget Indian Finance Minister Arun Jaitley announced that 7,000 railway stations will be fed with solar power as part of the Indian Railways’ mission to implement 1,000 megawatts of solar power capacity.

The minister stated that work to set up rooftop solar power systems at 300 stations has already started, and this number will increase to 2,000 stations.

According to data released by the Minister of Railways, India had 7,137 railway stations at the end of March 2015. The project developer will sign a long-term power purchase agreement with Indian Railways.

In addition to rooftop solar power systems (above, Udaipur station), Indian Railways earlier announced plans to launchtender for 150 megawatts (MW) of rooftop systems. IR entered into a partnership with the United Nations Development Programme to set up 5 gigawatts of solar power capacity.

Indian Railways has identified solar power resources in two states so far — Gujarat and Rajasthan — where 25 MW of rooftop and 50 MW of ground-mounted capacity is to be commissioned in the first phase of the program. In the second phase, 60 MW of rooftop and 660 MW of ground-mounted capacity will be installed in nine other states. During the third phase, 400 MW of rooftop and 3,800 MW of ground-mounted capacity will be installed in the rest of the country.

Sputnik International adds that to pay for these solar platforms, as well as other renewable energy sources, India has collected $1.8 billion in taxes on coal mined in India and imported from elsewhere. The revenue from the tax has also gone to cleaning drinking water and conserving forests. India has collected about $8 billion from the coal tax, about 40% of which has gone to the National Clean Energy Fund (NCEF).