Photos from Copenhagen

Denmark gets 20 percent of its power from wind, but it also still relies on traditional energy sources including coal.

Hopenhagen (billboard) is a grassroots movement urging world leaders at the U.N. Climate Change Conference to achieve meaningful outcomes that limit future carbon emissions, minimize the effects of climate change, and fuel a sustainable global economy. As the conference winds down, hopes are fading that an agreement can be reached.

This large white ball, located in City Square in Copenhagen, Denmark, lights up at night and has climate change information scrolling around it. This area is the center of activity in Copenhagen, where various energy and environmental displays have been featured during the U.N. Climate Change Conference.

Copenhagen update: the religion of climate change

One of the most striking things I saw on my first walk around Copenhagen should have been no surprise at all. It was a sign, about 20 x 20 (feet not meters!) that said "Stop Climate Change Now." It was just another of the many signs plastering the walls, hanging from buildings, and displayed on cars and sea faring vessels around Copenhagen. But after some of the recent research I have been doing, this one was particularly of interest. Because the climate is, and forever has been, changing, we cannot stop this change. You might as well display a sign saying "Stop the Earth Rotating on its Axis Now."

As more and more research is released about the dramatic and sometimes sudden changes the Earth's climate has experienced long before the Industrial Age, it has become clear that many of those who have gathered here have their climate belief system and they are unwilling to accept any challenges to it, and are not very interested in the realities of historical climatology. The blinders they have put on allow them to continue to pursue their goals with a religious fervor.

The choice of Denmark as the location of these historic talks is of interest as well. Denmark was home to many of the Vikings that built wealth in the Middle Ages through pillage, conquest, and the settling of new lands that became available because of a distinct and sudden warming pattern called the Medieval Warming Period. And yet Denmark is also home to multinational corporations and banks that have spent billions preparing to make billions more from the establishment of a cap and trade regime.

Denmark stands to lose if this new climate movement loses steam. The windmills that dot the skyline here are a testament not only to the dedication to the cause, but also the vast investment.

Windmills are good and we should invest in more and ensure they are part of our energy mix and energy solution. But we also need to look at affordable technology that is available and affordable now. The U.S. needs to get religion about energy security and reliability. Let's start looking realistically at the problem and we can take realistic action.

Copenhagen conference update

The U.N. Climate Change Conference in Copenhagen continues to be defined by the disagreements between developed and developing countries as the talks wind toward Friday’s conclusion. Not much progress has been made. Yesterday was marked by a day of protest by African countries, whose representatives walked out of the conference over draft language being discussed regarding the expectations and responsibilities of developed and developing countries when it comes to greenhouse gas emission reductions.

This display by developing countries gets to the heart of the major obstacle facing the climate negotiators, which is what exactly the role and responsibility is of developing and developed countries if a truly effective international agreement to reduce global greenhouse emissions is to be reached. Developing countries argue that historically the majority of emissions have come from developed countries as they industrialized their economies. Therefore, developed countries bear responsibility to more aggressively reduce their emissions. Further, there is an expectation that developed countries must financially assist developing countries in transitioning to low-carbon technology and mitigating the impacts of climate change.

Developed countries worry that since developing countries are expected to account for more than two-thirds of the emissions growth over the next 30 years, they must agree to binding reductions. The rift between the U.S. and China highlights this divide. The U.S. is demanding real reductions by China and third-party verification of its reductions. China is resisting both demands, as well as efforts to create a new status for emerging economies like those in India and China that would be separate from developing countries, opening the door to requiring mandatory reductions from them.

It is unlikely that these issues will be resolved when the negotiations conclude at the end of the week. The role of developed and developing countries is sure to dominate the legislative debate in the U.S. when Congress takes up climate change legislation again after the New Year.

Biodiesel mandate – at what cost?

The season’s first weather chill draws attention to another of Minnesota’s nation-leading energy mandates – and its resulting “cost.” We are the only state to require B5 – that all diesel fuel sold within our borders contains 5-percent biodiesel. By 2015, the mandate increases to B20. This fuel is made from renewable resources blended with petroleum diesel. In Minnesota, biodiesel is made primarily from soybean oil.

Other states have the biodiesel requirement, but Minnesota’s is easily the most aggressive. We are also the only cold-weather state to mandate B5, and that’s significant. Biodiesel often gels up during cold weather, thus hampering the performance of all diesel-fuel engines. The problem has flared up in recent winters with some school bus fleets.

Minnesota’s commissioner of commerce does have the ability to suspend the mandate when required by weather or supply issues. Still, the mandate forces diesel users in Minnesota to spend more money on fuel than states such as Wisconsin and Iowa without the mandate. The Minnesota Chamber of Commerce supports the development of renewable fuels, but mandates must be in tune with “real world” economics.

Live from Copenhagen

Next week, I will be in Copenhagen for the United Nations Climate Change Conference. I will post updates from the second week of the conference where delegates from over 190 countries are negotiating a successor agreement to the Kyoto Protocol. Check in to find out the latest developments from the negotiations, as well as activities happening outside of the conference.

In the run-up to Copenhagen, expectations have been lowered. Major players have acknowledged that it is very unlikely that a binding treaty can be agreed upon by the end of the conference. Instead, political commitments for reduction targets are expected, as well as efforts to agree on a level of funding that will be provided by developed countries to help developing countries address climate change. The head of the U.N. Climate Conference said last week that he hopes a binding agreement could be reached by June. Even that timeline may prove to be too ambitious.

The roadblock on the way to Copenhagen is the same one that has existed since the Kyoto Treaty: establishing different commitments for developed and developing countries. In the last two weeks, the Obama Administration pledged to reduce emissions by 17 percent by 2020, which is the target established in legislation passed by the House of Representatives last June. That announcement was followed up by a pledge from China to reduce its carbon intensity by 40 to 45 percent by 2020 and India which said it would reduce its carbon intensity by 20 to 25 percent by the same year. All three countries would use 2005 emissions as the baseline year.

By reducing carbon intensity, China and India will become more energy efficient (something that is happening already), but their overall emissions will still grow. With the U.S. pledging an absolute reduction, the risk of “carbon leakage”, or the migration of emissions from developed to developing countries, is still very real. The result: lost jobs in countries like the U.S. and increased global greenhouse gas emissions.

While Copenhagen may not produce a binding treaty as many had expected only a few months ago, there will undoubtedly be many interesting developments. Check back next week to find out what is happening in Copenhagen.

Cap-and-trade demands international solution

Any cap-and-trade policy must keep Minnesota businesses on a level playing field with their competitors in the national and global marketplaces. That’s why the Minnesota Chamber advocates a national program – but only if it is crafted within the context of an international agreement. That critical element is missing from the current debate in Congress. The proposed legislation is certain to result in higher energy prices that will be passed to ratepayers. Minnesota’s mining and forest products industries will particularly be hit hard. Overall, any product manufacturer with global sales will be less competitive if energy prices increase significantly.

This negative impact will be made worse by the proposed allocation of emission allowances for electric utilities, which penalizes utilities that are more coal dependent. Customers in Minnesota and the Midwest rely heavily on coal-powered electricity generation. As a result, they will be affected disproportionately compared with other regions, creating another competitive disadvantage for businesses.

The business community has a strong record of advancing initiatives that benefit the environment and the economy. But the federal legislation as currently framed – especially without an accompanying international agreement – won’t solve the problem, be efficient or cost effective.

The Senate Wants to Create Jobs: They Should Call Enbridge Pipeline for Advice

Sen. Jeff Bingaman (D-N.M.) wants to make sure that the upcoming "jobs bill" includes the energy sector. Creating jobs is the new political mantra. Most of us are for that since it actually helps people on Main Street rather than Wall Street. However, the private market money sources, lenders and venture capitalists are unlikely to take risks in the alternative energy sector right now. Smart money will stay close to traditional energy so long as we have a weak dollar. Just look at the performance of oil in the past several months for proof.

While oil itself has performed well, the real story in traditional energy is infrastructure. Enbridge Pipeline presents a great example of private sector job creation. Don't believe me, call the Bemidji/Grand Rapids and all in between Chambers of Commerce or read the MPR story below. These are not more government jobs, these are private sector welders, pipefitters, and hardware jobs. With the construction of the Alberta Clipper pipeline from Calgary to Superior, Wisconsin, reliable, friendly Canadian crude is brought to the upper Midwest energy consumer -- you and me. This crude is then refined at the Flint Hills Resources Refinery, just south of the Twin Cities and used by Minnesota outdoorsman in their snowmobiles, four wheelers, snowblowers, ice drills, chain saws, and cars and trucks as well as running Minnesota Main Street business. Minnesota receives approximately 80% of its oil from our Canadian neighbors.

As a result of the pipeline construction, there are no motel rooms available in Bemidji and the surrounding area, restaurants are packed, and food suppliers are running full time as are many ancillary businesses.

Want the real story about how private business is creating jobs and income and taxes right here in Minnesota. Read the details from Minnesota Public Radio at:

http://minnesota.publicradio.org/display/web/2009/09/15/alberta-clipper-pipeline/