U.K. government releases strategy to reduce transportation emissions, stimulate clean vehicle manufacturing

The U.K. Committee on Climate Change (CCC) submitted its 2018 annual report to the British Parliament on June 28, marking ten years since the Climate Change Act became law in 2008.  On the plus side, the report highlights a decoupling of economic  growth:   since 1990, emissions have fallen by 43% and the economy has grown by over 70%. Since 2008, the UK has achieved a 59% reduction in emissions from electricity generation. Yet despite that progress, other sectors, notably transport, agriculture and the built environment, have not achieved reductions – transport emissions have actually grown and at  28% of total UK emissions, are now the single largest emitter.    Reducing UK emissions – 2018 Progress Report to Parliament  outlines four high-level, messages for government and calls for immediate policy action in residential energy efficiency, development of Carbon Capture and Storage, and stronger consumer  incentives for electric vehicles.

black cabsNo sooner said than done: on July 9, the British Ministry of Transport  released  a long-awaiting document, The Road to Zero Strategy , with the goal that all new cars and vans will be effectively zero emission by 2040, at which time the government will end the sale of new conventional gas and diesel cars and vans. The press release highlights and summarizes the proposals .  Some specifics: commitment to continue consumer purchase incentives for plug-in cars, vans, taxis and motorcycles; commitment that all  the central Government car fleet will be zero emissions by 2030; the  launch of a £400 million Charging Infrastructure Investment Fund and  as much as £500 incentive for  electric vehicle owners to help them install a charge point at their home; increasing the grant level of the existing incentives for Workplace Charging stations.

Stimulating the motor vehicle industry:  Notably, the strategy aims to improve emissions in road transport in the U.K. while putting the U.K.  “at the forefront of the design and manufacturing of zero emission vehicles.”  Measures announced to support industry include: public investment in auto technology R & D, including £246 million to research next generation battery technology; and  working with the industry training group,  Institute of the Motor Industry,  “to ensure the UK’s workforce of mechanics are well trained and have the skills they need to repair these vehicles safely, delivering for consumers” .

However, “Road to Zero or Road to Nowhere: Government revs up green vehicle ‘ambition’ ”  in Business Green newsletter compiles reaction from business and environmental sources, all of which agree that the 2040 target date is too late. The quote from the Policy Director of Green Alliance sums up reaction:  “It’s rare for the oil industry, mayors and environmentalists to agree on something, but we all think 2040 is far too late for a ban on conventional vehicles…Moving it to 2030 and setting a zero emissions vehicles mandate would encourage car companies to build electric cars in the UK, and give the country a head start on its competitors across Europe. While there are some welcome measures, including on charging infrastructure, the Road to Zero strategy is on cruise control. As it stands, it won’t help the UK build a world leading clean automotive industry.”

The full Road to Zero policy document is here ; the accompanying technical report,  Transport Energy Model   provides data about the GHG emissions, energy requirements, and pollution associated with cars, trucks and double decker buses using conventional fossil fuels as well as biofuels, hydrogen, and electricity.

 

New report calls on B.C. Pension Fund management to divest from fossil fuels, reinvest in renewables

ccpa-bc_fossilpensions_june2018-thumbnailThe British Columbia Investment Management Corporation (BCI) is the fourth largest pension fund manager in Canada,  and controls capital of $135.5 billion, including the pension funds of the province’s public employees.  A June report asks the question: is BCI investing funds in ways that support the shift to a two degree C global warming limit?  The answer is “no”, and in fact, fossil fuel investments have been increasing, according to the authors of  Canada’s Fossil-Fuelled Pensions: The Case of the British Columbia Investment Management Corporation   . For example, BCI boosted its investment in Kinder Morgan, owner of the Trans-Mountain pipeline, to $65.3 million in 2017 from $36.7 million in 2016.

An article in the Victoria B.C. Times Colonist newspaper  summarizes the study and includes reaction from one of  the authors, James Rowe, an associate professor at University of Victoria.  Rowe  states: “BCI claims to be a responsible investor. …But we find some hypocrisy in that we don’t find any good signs they are investing with climate change in mind.”  The article also quotes an email from BCI,  which defends the investment in Kinder Morgan, as “a passive investment held inside funds designed to track Canadian and global markets.”  Further, it states, “BCI does invest in oil and gas companies, but that particular sector accounts for a significant portion of the Canadian economy. It’s about 20 per cent of the composite index on the Toronto Stock Exchange.”  For more from BCI,  see their website which  provides their  2017 Responsible Investing Annual Report , as well as a Responsible Investing Newsletter, with the most recent issue (Oct. 2017) devoted to “Transparency and Disclosure”.

Canada’s Fossil-Fuelled Pensions: The Case of the British Columbia Investment Management Corporation   makes the following recommendations so that  BCI can align its investments with the 2°C limit:

  1. “A portfolio-wide climate change risk analysis to determine the impact of fossil fuels on BCI’s public equity investments in the context of the 2°C limit. And, subsequent disclosure of all findings to pension members.
  2. Divestment. The surest way to address the financial and moral risks associated with investing in the fossil fuel industry is to start the process of divestment: freezing any new investment and developing a plan to first remove high-risk companies from portfolios, particularly coal and oil sands producers, and then moving toward sector-wide divestment.
  3. Reinvest divested funds in more sustainable stocks. The International Energy Agency estimates that trillions of dollars of investment are needed in the renewables sector to support the transition away from fossil fuels.”

The report is part of the Corporate Mapping Project (CMP), jointly led by the University of Victoria, the Canadian Centre for Policy Alternatives, and Parkland Institute. CMP is  a research and public engagement initiative investigating power dynamics within the fossil fuel industry.

Air pollution savings by substituting Videoconferencing for airline travel

According to a ranking by Project Drawdown, businesses around the world could eliminate 82 billion hours of  air travel time for employees by substituting travel to meetings with high-quality video conferencing systems –  a work practice with the potential to cut atmospheric carbon dioxide by 1.99 gigatons by 2050.  This solution, dubbed Telepresence,  is ranked as 63rd out of 100 solutions to global warming  in the Project Drawdown  study which compares the cost and GHG savings of three adoption scenarios  (ranging from 16% – 50%)  in the period  2020-2050.

Project Drawdown describes its  work as “the most comprehensive plan ever proposed to reverse global warming”.  In an April 25  New York Times interview , Paul Hawkin, Project Drawdown’s executive director, states:  “A primary goal of Drawdown is to help people who feel overwhelmed by gloom-and-doom messages see that reversing global warming is bursting with possibility: walkable cities, afforestation, bamboo, high-rises built of wood, marine permaculture, multistrata agroforestry, clean cookstoves, plant-rich diet, assisting women smallholders, regenerative agriculture, supporting girls’ ongoing education, smart glass, in-stream hydro, on and on.”   The solutions have been proposed and researched by an international collaboration of “ geologists, engineers, agronomists, researchers, fellows, writers, climatologists, biologists, botanists, economists, financial analysts, architects, companies, agencies, NGOs, activists, and other experts” .

The complete list of 100 proposals  was published by Penguin Books in 2017  and is available at the Project Drawdown website.  Canadian news outlet The Energy Mix  is currently posting  excerpts from Project Drawdown, and highlighted Telepresence in its May 11 issue.

Clean Tech investment in Canada held back by a “fossil fuel comfort zone” and lack of financial disclosure

Canadian cleantech startups get ready for a breakout year”  appeared in the Globe and Mail on January 3, 2018 citing a 2017 report by Cleantech Group, which ranked Canada  “fourth in the world as a clean-technology innovator – and tops among Group of Twenty countries – up from seventh place in 2014.” Then on January 24, the San Francisco-based company Cleantech Group  released its ninth annual Global Cleantech 100 list for 2018 ; the List includes 13 Canadian companies, and the full Report is here (free; registration required).   Sure enough, Canada has improved its showing.  And on January 18, the Government of Canada announced that the federal government  will invest $700 million over the next five years  through the Business Development Bank of Canada (BDC) “ to grow Canada’s clean technology industry, protect the environment and create jobs “, as part of its larger Investment and Skills funding.  The same press release also announced the launch of the Clean Growth Hub, the government’s “focal point for clean technology”, which will focus on supporting companies and projects that produce clean technology, as well as coordinate existing programs and track results.

Yet in reaction to the government’s announcement,  the president of Analytica Advisors, which publishes an annual review of Canadian clean tech, had this to say in the National Post : “A $700-million investment to help clean technology firms expand and develop new products won’t turn Canada’s clean-tech industry into the “trillion dollar opportunity” the government keeps touting until we get out of our fossil-fuel comfort zone”.  She also co-authored an OpEd in the Globe and Mail, “Canada’s financial sector is missing in action on climate change” (Jan. 23)   where she berates the Canadian financial community for sitting on the sidelines amidst international initiatives for more climate-risk disclosure so that those risks can be priced into investment decisions.   For an update on the Canadian scene regarding this issue, see “Modernizing financial regulation to address climate-related risks” by Keith Stewart,  in Policy Options (Feb. 2).

 

Redesigning the fashion industry from linear to circular

In what is being called a revolutionary document, A New Textile Economy: Redesigning Fashion’s Future characterizes the current system of textile and clothing production as a “wasteful, linear system”  which “leads to substantial and ever-expanding pressure on resources and causes high levels of pollution. Hazardous substances affect the health of both textile workers and the wearers of clothes, and plastic microfibres are released into the environment, often ending up in the ocean.”  To improve the societal and environmental impacts of the industry, the report fleshes out the means to achieve four fundamental objectives:   1.  Phase out substances of concern and microfibre release 2. Transform the way clothes are designed, sold, and used to break free from their increasingly disposable nature, 3. Radically improve recycling by transforming clothing design, collection, and reprocessing, and 4. Make effective use of resources and move to renewable inputs.  Benefits to consumers are emphasized, and benefits to workers seem to flow from a reduced exposure to the toxic chemicals used in manufacture.  There is only vague attention to  “A better deal for employees. Because a circular economy is distributive by design, value would be circulated among enterprises of all sizes in the industry, rather than being extracted. This would allow all parts of the value chain to pay workers well and provide them with good working conditions.”    The report was released by the Ellen MacArthur Foundation and the Circular Fibres Initiative, with Stella McCartney adding star power.

A greater focus on the working conditions in the global clothing industry comes from The Clean Clothes Campaign . Greenpeace International has been promoting the fight against toxic chemicals in fashion for several years in their Detox My Fashion campaign.