The recently released Bloomberg New Energy Finance report shows that the United States has jumped ahead of China in green energy investment for the first time since 2008.

“The news that the U.S.A. jumped back into the lead in clean energy investment last year, moving China back into 2nd place is a reassuring sign that US policy is finally effecting real results ,” said Anric Blatt, chairman of the New York based vital asset investor, Global Fund Exchange Group. “The particular performance of the solar sector is even more considerable when you consider that the price of PV modules fell by close to 50 percent during 2011, and now stands 75 percent lower than three years ago”

In 2011, the United States was able to overtake China by investing $55.9 billion in clean energy, which was a 33 percent increase from the previous year.

Another highlight from the report is a 36 percent increase in worldwide solar technology investments, pushing the total amount of money invested to more than $136 billion.

For many years, our CEO, Lauralouise Duffy has been publishing her “Energy Olympics” who is winning study. She was visibly pleased by the new findings. Click here to download the Energy Olympics Slide

Click here for another great resource “Who’s winning the Clean Energy Race” produced each year by the Pew Charitable Trust

Posted in Clean Energy, Investments, Policy, Solar, Wind | Tagged Anric Blatt, China, investing in clean energy, Lauralouise Duffy, USA | Leave a comment

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Qatar General Electricity and Water Corporation (Kahramaa) president Essa bin Hilal al-Kuwari has called upon GCC member states to explore long-term solutions to overcome the alarming situations they are facing on the water issue.
While insisting on the necessity of implementing practicable and systematic strategies to tide over the water crisis, Kahramaa president said Qatar and the other GCC countries are determined to find effective and long lasting solutions to the issue.
The Kahramaa chief said this while delivering the keynote address at the opening of the 10th Gulf Water Conference at Grand Hyatt Hotel in Doha yesterday.
Though there is no doubt that there have been so many achievements for the member states in several areas, each of them faces a daunting task as far as water is concerned in view of the huge growth expected in the region’s population in the next one decade.
Water, food and energy, said al-Kuwari, are the three main sources that constituted the foundation for achieving development in all sectors.
Speaking on Kahramaa’s role in building up the three main sources, he said the corporation had spent more than QR11bn in upgrading and launching projects in the water sector in the last five years.
The president said the corporation had earmarked about QR31bn for implementing new projects in the water sector in the next five years from 2012 to 2016.
“We are also in the process of building huge water reservoirs and also upgrade the levels of ground water as a strategic reserve. Kahramaa has paid great attention to the conservation of water and electricity by educating the public through periodical campaigns. And we are in the process of setting up a water desalination plant to be operated by solar energy on the principle of reverse osmosis,” he disclosed.
Speaking later at the opening session, chairman of Water Science and Technology Association (WSTA) president Ali Redha Hussain said the presence of a large number of experts at the three-day conference had come as a big boost to the GCC which are in the process of evolving new strategies for meeting their growing requirements in drinking water.
He said in the 25years since its formation in 1987, WSTA had made a remarkable progress towards accomplishing its goals by leveraging the know-how of its members in recognising the issues concerning water scarcity.

Posted in Investments, Water | Tagged MENA water security, qatar, Water | Leave a comment

Qatar‘s current and future regional influence are strongly linked to its natural gas sector. With dependence on oil viewed as a strategic liability, Qatar’s forward-looking investments in LNG production and export technology give the country an advantage in an increasingly popular energy commodity. Also, because it cannot be undermined in price or supply guarantees by Saudi Arabia, Qatar’s LNG exports have given it considerable independence compared to its oil-dependent neighbors who are more likely to fall in line with Saudi views on most foreign policy issues.

Due to its significant LNG infrastructure investments and sizable natural gas reserves, Qatar will continue to be a key supplier of LNG for roughly the next 20 years. But with natural gas prices expected to peak within the next three to five years, Qatar faces both a shrinking profit margin and a more competitive market as regions such as North America are poised to become exporters themselves. Qatar will continue its attempts to mitigate some of these factors by encouraging its current customers to sign larger, longer-term deals — some up to 20 years — in an effort to lock in at current prices. Qatar has also been actively seeking to diversify its economy away from LNG and seek investments in alternative energy technology.

Read related posts on Qatar

Posted in Investments, Natural Resources, Policy, Traditional Energy, Transportation | Tagged LNG, qatar, Saudi Arabia | Leave a comment

The European Commission is facing criticism for a controversial carbon emissions tax included in the EU Emission Trading Scheme (ETS). According to a provision in the ETS enacted Jan. 1, every airline arriving in or departing from European airports must pay an undetermined fee on carbon gas emissions. So far, more than 30 countries have denounced the tax, claiming that it is an affront to their sovereignty. China already has prohibited its airlines from participating in the ETS and has suspended its orders from a European airline manufacturer, prompting France to join the ranks of fellow EU member state Germany to call on the European Commission to resolve the dispute.

Retaliatory measures alone probably will not convince the European Commission to revise the legislation, but they will prolong and exacerbate the dispute for the remainder of 2012. The European Commission is not interested in waging a trade war with dozens of disgruntled countries, nor is it immune from French and German pressure, so it likely will revise the legislation before April 2013, when initial payments on the tax are due.

Analysis

The ETS, a system that tries to limit greenhouse gas emissions by putting a price on carbon and creating a market for companies to trade emission permits, has been in place for several industries since 2005. But it was not until the beginning of 2012 that it included legislation over the aviation industry, which according to the International Civil Aviation Organization (ICAO) accounts for 2 percent of worldwide carbon emissions. The new legislation makes airlines from 62 countries liable, and while it is unclear exactly how much will be charged (the price for carbon in the ETS regularly fluctuates), it is currently estimated to raise roughly 9 billion euros ($11.8 billion) by 2020.

However, the cost of the tax is an ancillary issue for countries on which the tax is imposed. Under the new law, airlines will be charged even for carbon emitted in their own airspace. Since the airspace over a country is its own sovereign territory, many countries believe the tax infringes on their sovereignty.

Several countries, including the United States, Russia and Saudi Arabia, are considering implementing measures to counteract the European Union if the new law is not revised. They have threatened to lodge a formal complaint with the ICAO, end talks with European airlines on new routes and impose special fees on European airlines. And in March, India joined China in declaring that it would not sign on to the ETS.

Several European airlines believe any countermeasure from non-European countries would hurt them financially, and they have voiced their concerns to their respective governments. Of all EU member states, France and Germany may have the most to lose from the current row. The visible countermeasures have targeted Airbus, an aircraft manufacturer that employs tens of thousands of people in France and Germany. Unsurprisingly, France and Germany have recently urged the European Commission to resolve the issue.

France is particularly vocal about the dispute — and for good reason. 2012 is an election year. Incumbent French President Nicolas Sarkozy has promised to reduce the unemployment rate — currently 10 percent — and the trade deficit, which totaled roughly 70 billion euros in 2011. In doing so, he has pledged to revive the French industrial sector. Retaliatory measures targeting Airbus, such as those of China, could put at risk the livelihoods of any of the 15,800 people the company employs in France. This would not be the image of a revived industrial sector Sarkozy wants to project, and it is little wonder that French Prime Minister Francois Fillon recently called on the European Commission to end the dispute.

The pressure put on the European Commission so far will be insufficient to bring about any revisions to the ETS. In 2009, EU member states agreed to include the aviation industry in the ETS, which gave the commission, as the EU executive body, complete autonomy on the issue. This will make it more difficult to get the commission to change its position. Furthermore, ongoing ICAO negotiations on the matter will have little bearing on the commission because many countries involved in the dispute are not EU members. For these reasons, the dispute will continue for the rest of the year as countries continue to retaliate against the European aviation industry.

This article:  Courtesy of Sratfor

However, Stratfor believes that France and Germany will likewise continue to pressure the European Commission throughout 2012 and that the pressure will compel the executive body to revise the law before April 2013, lest it prove too inflexible and incite a trade war. Once revised, the law probably will still lead to bilateral disputes between the European Union and some non-EU countries, inducing higher costs to the European aviation industry.

Read more: Visit Stratfor

Posted in Carbon Finance, Climate Change, Policy | Tagged Anric Blatt, China, ETS, EU Carbon Emission Tax, EU Emission Trading Scheme, France | Leave a comment

Click on map to explore interactive Water Stress Map

Abu Dhabi: The Arab region, which boasts of 60 per cent of global water desalination capacity, will soon announce targets to minimise the adverse effects of desalination on the environment in relation to greenhouse gas emissions and the discharge of brine and other contaminants.

With 5 per cent of the world’s population and only 1 per cent of global freshwater water resources, the Arab region is heavily affected by water scarcity and heavily dependent on non-conventional water resources such as desalination and treated wastewater.

The collective water shortage of 17 Arab countries is currently estimated at over 30 billion cubic metres and this deficit is expected to triple by 2030 and increase to over 150 billion cubic metres by 2050, the Arab Water Academy in Abu Dhabi said yesterday.

The current heavy reliance on fossil fuels for water desalination is not sustainable — Saudi Arabia alone uses 1.5 million barrels of oil per day at its plants.

Many of the problems related to desalination could be reduced by replacing fossil fuels with renewable energy sources. This will reduce the cost of energy consumption, which accounts for 30-50 per cent of the overall water desalination costs.

A giga-watt (GW) of energy produced by oil and gas generates 700 and 460 tonnes of carbon dioxide respectively. In comparison, the same amount of energy produced by solar energy [concentrated solar power] releases just 17 tonnes of carbon dioxide, Dr Asma Al Kasmi, director of the Arab Water Academy, told Gulf News.

The Arab Water Academy (AWA) will announce its targets to increase the share of renewable energy sources in desalination and waste water treatment and to reduce carbon emissions during the sixth World Water Forum which will be held in Marseille, France, in March.

Practical solutions

The Arab Water Academy in Abu Dhabi is charged with the coordination of the Arab region’s target of “developing, in the medium term [by 2020], alternative and practical solutions for using non-conventional water resources with focus on the use of renewable energy in water desalination and water treatment for meeting the increasing water demand in the Arab region”.

Dr Asma said the region’s tremendous potential for renewable energy — especially solar and wind — is finding its way into national energy strategies.

She stressed that by taking this route of utilising renewable energy sources, Arab countries are opening new possibilities for responding to the region’s severe water scarcity while taking into account cost-effectiveness, environment sustainability and energy security.

Freshwater shortage is a limitation on economic development, food production, human health and environmental protection.

Most countries in the region augment their water supply by over-exploiting their fossil resources.

Arab region statistics

• Five per cent of the world’s population in Arab region.

• One per cent of global freshwater water resources in the Arab region.

• Sixty per cent of global desalination capacity in Arab region

• Ten Arab countries among top 20 countries for forecasted desalination capacity.

• Seventy per cent waste water reuse rate in certain GCC nations.

Posted in Climate Change, Water | Tagged Middle East Water Scarcity | Leave a comment

JEDDAH – Spurred by a buoyant economy and population growth, over $300 billion will be invested in the GCC water and desalination projects, between 2012 – 2022 periods, researchandmarkets.com reported Friday.

Subsequent to its revolutionary discovery of hydrocarbons about three decades back, the GCC economies have come a long way into establishing themselves as a fast developing region boasting modern amenities and facilitating high standards of living.

It said the GCC have increased spending on job creation and infrastructure expansion and are opening up utilities to greater private sector involvement.

While privatization occupies centre stage in the overhauling process of the power and water sector, the initiatives toward alternative energy sources in the form of solar and nuclear power, as alternatives to the heavy dependence on the hydrocarbons sector, particularly to replace natural gas as a primary fuel in power generation, has been considered a highlight of the regional power reforms

The emergence of alternative power sources will enable GCC nations to successfully diversify their economic growth from a predominantly oil based economy thus bracing themselves against future adversities arising from oil fluctuations, the report noted. Renewable energies are about to capture a considerable segment of the global energy mix. This segment is only likely to grow given rising demand for energy, supply worries with regard to fossil fuels and environmental concerns. In particular solar energy offer huge potential for the GCC countries.

Rising domestic energy needs for power generation and desalination, favorable conditions for solar energy production and interest in acquiring technological know-how make a perfect argument for renewable energy in the Gulf.

All six nations of the GCC have either embarked upon or committed to investments in solar projects, with projects split between solar photovoltaic and solar thermal applications.

The GCC region also has considerable wind resources, even though these vary widely across the countries and wind installations are at a less developed stage than their solar counterparts.

Posted in Solar, Water, Wind | Tagged Anric Blatt, Desalination, gcc, Investing in Alternative Energy, investing in water, Solar, Water, Wind | Leave a comment

Following two of the driest years on record, seven water authorities in parts of southern and eastern England have imposed bans on hosepipes. Nearly 20 million citizens will be affected by this decision, made in part due to drought and “extreme circumstances.”  Failure to comply with the ban may lead to fines of up to 1000 GBP.

To help ease this pressing shortage, water experts and municipal administrators are considering water transfer options from Wales.  However, expense and logistical difficulties may prevent water resources from being accessed by groups who desperately need it.

The UK’s agricultural sector, particularly in the south of England, is at severe risk.  Former National Farmers’ Union vice-chairman Gwyn Jones said if the drought became any worse, “there could be complete crop failure which would be really bad for us.”

The government is encouraging all UK households to be “smarter” about how they use water during these extenuating circumstances.

Continue to read more about this serious water shortage issue here.

Posted in Agriculture, Water | Tagged Agriculture, Europe, Water | Leave a comment

Here is the full movie – The Blue Gold – World Water Wars – I watched it in its entirety without distractions on a recent trip to Colorado where the driest winter for many years delivered a very poor ski season.

I highly suggest watching this movie with your kids – they need to be aware of this issue as they will grow up with this issue that is already rearing its ugly head.

Remember, we did not inherit this earth from our parents, we borrowed it from our children. What legacy are we going to leave them ? Anric Blatt

Posted in Agriculture, Videos, Water | Tagged Anric Blatt, aquifer, deforestation, Desertification, Drought, erosion, peak water, world water wars | Leave a comment

(Reuters) – Fresh water supplies are unlikely to keep up with global demand by 2040, increasing political instability, hobbling economic growth and endangering world food markets, according to a U.S. intelligence assessment released on Thursday.

The report by the office of the Director of National Intelligence said that areas including South Asia, the Middle East and North Africa will face major challenges in coping with water problems that could hinder the ability to produce food and generate energy.

The Bottom Line: During the next 10 years, many regions will experience water challenges – shortages, poor water quality, or floods – that will increase the risk of instability and state failure, increase regional tensions, and distract them from working with the United States on important U.S. policy objectives. Between now and 2040, fresh water availability will not keep up with demand absent more effective management of water resources. Water problems will hinder the ability of key countries to produce food and generate energy, posing a risk to global food markets and hobbling economic growth. As a result of demographic and economic development pressures, North Africa, the Middle East, and South Asia will face major challenges coping with water problems.

The report said that a “water war” was unlikely in the next 10 years, but that the risk of conflict would grow with global water demand likely to outstrip current sustainable supplies by 40 percent by 2030.

“Beyond 10 years we did see the risk increasing,” a senior U.S. intelligence official told reporters. “It depends upon what individual states do and what actions are taken right now to work water management issues between states.”

The official declined to discuss the risks for specific countries, but in the past water disputes have contributed to tensions between rivals including nuclear-armed India and Pakistan, Israel and the Palestinians, and Syria and Iraq.

The report, drafted principally by the Defense Intelligence Agency and based on a classified national intelligence estimate, said that water in shared basins would increasingly be used by states to pressure their neighbors.

“The use of water as a weapon or to further terrorist objectives also will become more likely,” it said, noting that vulnerable water infrastructure was a tempting target.

The U.S. State Department requested the report, which is part of an effort by the Obama administration to assess how long-term issues such as climate change may affect U.S. national security.

U.S. Secretary of State Hillary Clinton is due to hold an event on Thursday to announce a new public-private initiative to grapple with water issues.

SOCIAL DISRUPTION

The report said that during the next 10 years, the over-pumping of ground water supplies in some agricultural areas will pose a risk to food markets and cause social disruption if mitigating steps such as drip irrigation and improved agricultural technology are not implemented.

It also said that through 2040 water shortages and pollution would likely harm the economic performance of important U.S. trading partners by limiting the use and development of hydro power, an important source of electricity for developing countries.

The report rated the management of several key water basins, and said the risks were greatest for the Brahmaputra which flows through India and Bangladesh and the Amu Darya in central Asia.

It said the chief drivers of increased water demand over the next 10 years would be population growth and economic development, although the impacts of climate change will play a growing role, particularly after 2040.

While the intelligence community believes there is no technological “silver bullet” on the horizon to improve water management, the report said the most important step to address the problem would be more efficient use for agriculture, which accounts for 70 percent of global fresh water use.

It also said the United States, which has expertise in water management in both the public and private sectors, could help lead in developing policies for improved global water use and international cooperation.

“The United States has opportunities for leadership, but we also saw it being a risk that if the United States wasn’t engaged in exercising that leadership, other states would step up to do that,” the intelligence official said.

Download the entire report “Global Water Security”

Key Judgment A: We assess that during the next 10 years, water problems will contribute to instability in states important to U.S. national security interests. Water shortages, poor water quality, and floods by themselves are unlikely to result in state failure. However, water problems – when combined with poverty, social tensions, environmental degradation, ineffectual leadership, and weak political institutions – contribute to social disruptions that can result in state failure.

Key Judgment B: We assess that a water-related state-on-state conflict is unlikely during the next 10 years. Historically, water tensions have led to more water-sharing agreements than violent conflicts. However, we judge that as water shortages become more acute beyond the next 10 years, water in shared basins will increasingly be used as leverage; the use of water as a weapon or to further terrorist objectives also will become more likely beyond 10 years.

Key Judgment C: We judge that during the next 10 years the depletion of groundwater supplies in some agricultural areas – owing to poor management – will pose a risk to national and global food markets.

Key Judgment D: We assess that from now through 2040 water shortages and pollution probably will harm the economic performance of important trading partners.

Key Judgment E: We judge that, from now through 2040, improved water management (e.g., pricing, allocations, and “virtual water” trade) and investments in water-related sectors (e.g., agriculture, power, and water treatment) will afford the best solutions for water problems. Because agriculture uses approximately 70 percent of the global fresh water supply, the greatest potential for relief from water scarcity will be through technology that reduces the amount of water needed for agriculture.

Posted in Agriculture, Policy, Water | Tagged Agriculture, Anric Blatt, US Intelligence report, water security, water wars | Leave a comment

Japan – a resource constrained, island economy that has long been challenged by its lack of natural resources.  Japan is a major importer of food supplies, basic commodities, and especially energy resources including coal, oil and liquefied natural gas (LNG).

Following the Fukushima crisis, which essentially eliminated Japan’s nuclear power production abilities, Japan’s use of oil has dramatically increased.  According to data from J.P. Morgan Global Commodity Research, February saw Japan’s oil use (for power generation) spike by 520 kbd yoy; an amount roughly the equivalent to China’s projected 2012 oil demand growth (500 kbd).

Looking ahead to the summer months, Japan is making a concerted effort to prevent power shortages and blackouts.  Will oil consumption rise as a result? Many analysts agree that oil use in power is the single largest demand-side uncertainty during the summer peak demand period of July and August.

Even though selected nuclear reactors are scheduled to go back into operation come summer, it is unlikely that the additional power generation will make a dent in Japan’s summertime oil consumption levels.  It is estimated that only 6 of Japan’s 54 closed reactors will be opened by the summer.  Japanese utilities could still burn up to 800kbd of oil for power generation during July and August, despite the inclusion of these reactors.

Furthermore, the Fukushima crisis has altered the way Japan structures its power production, particularly as related to oil.  Prior to the accident, oil supplies were largely allocated for peak demand periods, when power plants had to ramp up to satisfy the highest levels of consumer electricity use.  Now, oil is often utilized for peak and mid-range use, resulting in a larger, more consistent demand profile.

Oil’s involvement in this earlier process stage has kept demand levels up.  Summer heat will result in heavy demand for air-conditioning, thus amplifying the daily demand peaks.  Oil will be relied upon to meet demand and avoid power outages.

Many uncertainties remain.  Weather patterns (such as major heat waves) could complicate matters or ease the burden.  Implementation (or lack thereof) of power conservation measures may also have an impact on usage.

As part of our macro investment strategy, we keep a close eye on energy resource consumption patterns around the globe and take note of changing trends.  Learn more about our sector focus by clicking here.

Posted in Natural Resources, Nuclear, Oil, Traditional Energy | Tagged Asia, Japan, Oil, Traditional Energy | Leave a comment