CENN – OCTOBER 28, 2004 DAILY DIGEST
Table of Contents:
1. Ex-Chief of GIOC to Advise Azeri Oil Company
2. Experts Propose New Method for Energy Tariff Calculation
3. $ 170 mln. Allocates for State oil Company
4. Cooperation Between Azerbaijan and Armenia in the Field of Ecology
Impossible
5. Azerbaijan, Russia, Iran Prepare to Synchronize Energy Systems
6. International Energy Agency’s world energy outlook runs out of
control
7. Russia Eyes the Kyoto Market
8. IUCN Welcomes Russia’s Ratification of the Kyoto Protocol
9. Regional Winners of 2004 Reuters-IUCN Environmental Media Awards
Announced
1. EX-CHIEF OF GIOC TO ADVISE AZERI OIL COMPANY
Source: Civil.ge, October 28, 2004
Azeri news agencies report that ex-chief of Georgian International Oil
Company (GIOC) Gia Chanturia was appointed as an advisor for the Azeri
State Oil Company. According to the reports Mr. Chanturia would
coordinate on Georgia-related projects with the Azeri company.
Mr. Chanturia presided over GIOC since its inception in 1995 and was
considered one of the closest allies of President Eduard Shevardnadze.
He was in charge of negotiating and implementing the construction of the
Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines. Before the
November 2003 Rose Revolution, it was rumored that Chanturia may succeed
Shevardnadze after his retirement in 2005. Mikheil Saakashvili dismissed
Gia Chanturia on September 9, 2004.
Azeri internet portal Day.Az speculates that an arrest warrant on Mr.
Chanturia was issued in Georgia, but Azeri President Ilham Aliev vouched
for him with Saakashvili, who agreed on the condition that Chanturia
leaves Georgia.
2. EXPERTS PROPOSE NEW METHOD FOR ENERGY TARIFF CALCULATION
Source: Sarke, October 27, 2004
Experts have proposed to review the energy tariff in case of the 7 per
cent change of the lari exchange rate instead of the current 5 per cent,
according to the National Energy Regulation Commission. Temur
Torjanidze, a professor, and Levan Jamberia, a programmer from the
Razmadze Mathematics Institute, have worked out an adequate mathematic
model.
3. $ 170 MLN ALLOCATES FOR STATE OIL COMPANY
Source: State Telegraphic Agency of the Republic of Azerbaijan, Azertag,
October 25, 2004
Agreement on allocation of the credit in $ 170 mln will be signed
between the State Oil Company of Azerbaijan Republic / SOCAR/ and
European Bank of Reconstruction and Development / EBRD/ in Baku, AzerTAj
correspondent reports.
$110 mln will be spent for financing of 10% share of Shah-Deniz gas
condensate well, as well as $60 mln for trusteeship on the construction
of the Southern Caucasus gas pipeline.
4. COOPERATION BETWEEN AZERBAIJAN AND ARMENIA IN THE FIELD OF ECOLOGY
IMPOSSIBLE
Source: State Telegraphic Agency of the Republic of Azerbaijan, Azertag,
October 26, 2004
Cooperation between Azerbaijan and Armenia in the field of ecology is
impossible since the Armenia-Azerbaijan, Nagorny Karabakh conflict is
not settled. Minister of ecology and natural resources of Azerbaijan
Huseyngulu Bagirov at conference of the ministers of environment of the
countries of the East Europe, Caucasus and the Central Asia, which was
taken place in Tbilisi, stated it. Officials have taken part in work of
conference from the European Union, the USA, and also representatives of
some international organizations.
As was informed to correspondent of AzerTAj in the press-service of the
ministry of ecology and natural resources, during discussions around the
question on regional cooperation and presentation of the report
Environment and the initiative of safety on the Southern Caucasus,
prepared by OSCE, UNDP and the Program of the United Nations on
environment, the head of the Azerbaijan delegation, minister Huseyngulu
Bagirov in reply to the offer of the international organizations
concerning cooperation with Armenia, has called them to act from real
positions and has stated that in conditions of absence of safety for
life of people in zone of the conflict there can not be a speech about
the solution of problems of ecological safety in any way. It has been
marked, that as a result of occupational policy of Armenia, serious
damage was caused to the unique nature of region, and natural riches of
Azerbaijan are plundered. Non-alignment of some countries of region to
the conventions regulating ecological questions of trans-national
character prevents solution of available problems, in particular,
connected with the Kur River.
At the conference, also were discussed realization of ecological
strategy for the countries of the East Europe, Caucasus and Central Asia
adopted at the Kiev conference of ministers of environment of the
European countries last year. The head of the Azerbaijan delegation who
has acted at the Conference, devoted to questions of partnership of
private and public sectors at realization of strategy, has told about
the successes achieved in Azerbaijan in sphere of preservation of
environment, and on the basis of concrete examples has informed on
synthesis of private and public sectors in the decision of environmental
problems.
During discussion of the questions of partnership between the
countries-participants of strategy and international donors, the
Azerbaijani minister, speaking about donors in solution of environmental
problems, with the purpose to reduce dependence on the donor assistance,
has expressed a wish about more effective utilization of national
resource.
Minister Huseyngulu Bagirov has carried out in Tbilisi also a number of
meetings – with the prime minister of Georgia Zurab Zhvania, minister of
protection of environment and natural resources of this country Tamara
Lebanidze and minister of Moldova – Konstantin Mikhailesku, and also
with heads of the international organizations.
5. AZERBAIJAN, RUSSIA, IRAN PREPARE TO SYNCHRONIZE ENERGY SYSTEMS
Source: RFE/RL Newsline, 28 October, 2004
A draft agreement has been prepared that will pave the way for an
exchange of electric power between Russia, Azerbaijan, and Iran,
Interfax reported on 26 October citing the Azerenergy press service.
Russian Unified Energy Systems (EES) chief Anatolii Chubais discussed
the draft agreement, under which the three countries would provide each
other with power during winter months and in the case of emergency, with
President Aliyev during a visit to Baku last week. ITAR-TASS on 20
October quoted Chubais as telling journalists in Baku that a
Russian-Azerbaijani delegation will travel to Iran shortly in the hope
of finalizing the exchange agreement.
6. INTERNATIONAL ENERGY AGENCY’S WORLD ENERGY OUTLOOK RUNS OUT OF
CONTROL
Source: ENWL-eng, October 28, 2004
Amsterdam, October 26th 2004 — Greenpeace today criticized the
International Energy Agency (IEA) to fail to properly assess the world’s
energy trends for the next decades in its “World Energy Outlook 2004”
which was presented today. The IEA contradicts its own publications on
energy efficiency and ignores the scientifically recognized need for an
urgent, global shift away from fossil fuels in the interest of
protecting the climate.
“With this report, the IEA sends a dangerous signal to policy makers and
the industry worldwide to continue to massively waste energy, burn
fossil fuels and forget about climate change,” says Jan Vande Putte of
Greenpeace International.
The IEA today presented its annual ‘World Energy Outlook’, which
predicts that if governments stick with the policies in force, the
world’s energy needs will be almost 60% higher in 2030 than they are
now, electricity demand will double and CO2 emissions will increase by
more than 60%.
In IEA’s view, fossil fuels will continue to dominate, with shares of
nuclear power and renewable energy remaining limited. Furthermore, they
neglect their own research on energy efficiency (1) and disregard the
draft EU directive on energy efficiency, which sets an objective of
decreasing energy demand by 1% per year (2).
Aside from their ‘Reference’ scenario, the IEA is presenting an
‘Alternative’ scenario with a decrease of CO2 emissions by 16%, needing
a “technological breakthrough” and a shift to renewable and nuclear
power.
“Despite the ‘Alternative’ scenario, the IEA remains fixated on old and
dirty fossil fuel technologies, and neglects the ongoing boom of
renewable energy technologies,” says Jan Vande Putte. “Wind energy has
been growing at an average of 30% over the last decade and is costs
competitive with coal and cheaper then nuclear power, despite massive
subsidies for both dirty technologies.” (3)
The UK government’s Energy Review estimates that by 2020 wind power
will be the cheapest available electricity source, even beating gas. A
report from Greenpeace and the European Wind Energy Association
estimates that by 2020, more than 12% of the global electricity needs
could be generated by wind. The European Renewable Energy Council (EREC)
(4) estimated that by 2030, renewables could supply 35% of the global
energy needs.
“By massively investing in available renewable and efficiency
technologies and ruling out dirty and expensive nuclear and fossil
fuels, a genuinely sustainable energy sector is possible.” said Jan
Vande Putte. “With an estimated 16 trillion dollars to be invested in
the next 25 years, the world has a clear choice: either put the money in
destruction or in solutions.”
Notes to Editor:
1) IEA, Cool Appliances – Policy Strategies for Energy Efficient Homes
Paris, 2003.
2) 2) European Commission, Proposal for a Directive on the Promotion of
End-use efficiency and Energy Services, COM (2003) 739 final
3) EWEA and GREENPEACE, Wind Force 12. May 2004.
d%20Force%2012.pdf)
4) EREC, Renewable Energy Scenario to 2040. 2004.
cenario%202040.pdf
7. RUSSIA EYES THE KYOTO MARKET
Source: ENWL-eng, October 28, 2004
LONDON, Oct 22 (IPS) – Nobody stands to gain more than Russia through
its move to ratify the Kyoto Protocol, an agreement to cut
atmosphere-warming emissions and through that to contain climate change.
Clearly Russian President Vladimir Putin did not wake up one day and
decide to do his bit to cool down a warming atmosphere. Ratification had
its reported opponents within Russia but few can argue that at least for
the next eight years Russia has much to gain and little to lose.
Ratification by the Lower Duma is expected to be approved by the upper
house of Parliament and then by President Putin, all within the next
couple of weeks. That would then satisfy conditions for the Kyoto
Protocol to come into force.
The protocol had been awaiting ratification by at least 55 countries
said to be producing at least 55 percent of greenhouse gases
(principally carbon dioxide and methane that are said to cause global
warming). Russian entry would take it past the barrier.
The Kyoto Protocol would bind signatory countries to reduce emissions to
at least 5 percent below 1990 levels in the period 2008-2012. The
overwhelming view of climate scientists is that this would be too little
to do the climate much good. But a lot of companies stand to gain
through mechanisms agreed to make such reduction possible.
And with companies, countries; and none more than Russia. Its
representative had made sure of that at a meeting in Marrakesh in
Morocco in November 2001. The Marrakesh agreements set out the nuts and
bolts for implementation of the Kyoto targets. The Marrakesh agreements
are more significant than the protocol itself signed in Kyoto in Japan
in 1997.
The principal tools given shape were emissions trading, two other
agreements called joint implementation (JI) and the clean development
mechanism (CDM), and the so-called carbon sinks. Hard bargaining by
Russia at Marrakesh gave it strong advantages in all these.
Under emissions trading a company that is emitting less than its
permissible limit of greenhouse gases can ‘sell’ the excess credit to a
company counted as emitting more. The idea is that the buying company
can find this a cheaper option than introducing technology to reduce
emissions.
Under joint implementation an agreed group of industrialised countries
(what are called the Annex I countries of the United Nations Framework
Convention on Climate Change) were allowed to gain credits for reduction
of emissions by implementing reduction measures in other countries on
the same list. In effect this would mean implementation in Eastern
Europe where the cost of implementing such measures would be much less.
Under the CDM credits could be earned for emissions-savings in projects
in developing countries where measures were likely to cost even less
than in Eastern Europe. Carbon sinks was a facility to gain credit
through the existence of forests, on the ground that trees absorb carbon
dioxide and therefore count as contribution towards carbon reduction.
These measures all place Russia in an enviable position. Following a
decline in industrial activity in the 1990s, emissions in Russia have
been calculated – on the basis of data supplied by the Russian
government FB to have fallen to 30 percent below 1990 levels anyway.
That means Russian industry has to do virtually nothing to meet its
reductions target by the end of the first Kyoto reduction period
(2008-2012).
The low recorded emissions translates potentially as a lucrative
industry for emissions trading, that is due to begin within the European
Union (EU) from January next year. It is hardly a coincidence that
Russian ratification means that the Kyoto protocol will take effect at
the same time. Russia would be on the emissions market straightaway for
EU emissions trading and for wider emissions trading among other Kyoto
signatory countries.
Since Russian industry is emitting far less than the quota its officials
have negotiated, large sections of the Russian industry will be in a
position to ‘sell’ their quotas to emit more. Depending on how the
market goes, this could bring significant income for Russian industry
with almost no investment required to upgrade to more
environment-friendly technology.
At the same time Russian industry is well-placed through investments and
partnerships in Eastern Europe through historical associations to claim
reductions in emissions to its credits at a cost far lower than is
likely for Western industry. It can also add to its huge reserves of the
right to emit through CDM projects. Both these provide cheap
opportunities for Russia to develop new environment-friendly technology,
which too it can sell.
Russia finally capitalised on its huge lakes and forest reserves
available to count to its credit by way of carbon sinks. Russian
officials managed at Marrakesh to double the amount of credits it was
assigned for these ‘sinks’ from 17 million tonnes of carbon to 33
million tonnes. The Russian demand was accepted because if it rejected
the Kyoto protocol as the United States had done, the protocol itself
would be seen to collapse.
Russian leaders waited seven years after the Kyoto protocol to move
towards ratification. Because it is only now that the Kyoto protocol is
taking shape as the Kyoto market.
8. IUCN WELCOMES RUSSIA’S RATIFICATION OF THE KYOTO PROTOCOL
Source: IUCN October 22, 2004
IUCN – The World Conservation Union warmly congratulates the Russian
Federation on today’s ratification of the Kyoto Protocol, the only
international agreement aimed at slowing global warming. Russia’s
ratification has been the key to Kyoto’s coming into force since 2001
when the United States pulled out of the pact. The Protocol stipulates
that it must be ratified by industrialized countries whose combined 1990
emissions exceed 55% of that group’s total. With Russia accounting for
17% of emissions, it was the only country outside of the US who could
push the agreement over that threshold, and bring it into force. “Today
marks a turning point in the history of efforts to tackle climate change
as a global community of nations. We now have a binding international
agreement. It may just be a beginning but the costs of inaction would
have been far higher to the increasingly vulnerable communities around
the world,” said IUCN Director General Achim Steiner.
9. REGIONAL WINNERS OF 2004 REUTERS-IUCN ENVIRONMENTAL MEDIA AWARDS
ANNOUNCED
Source: IUCN October 25, 2004
Reuters Foundation and IUCN – The World Conservation Union today
announced the regional winners of the 2004 Reuters-IUCN Media Awards for
Excellence in Environmental Reporting, who will vie for the global prize
of US$ 5,000. Her Majesty Queen Noor, IUCN Patron, will present awards
to these six winners and announce the global winner of the 2004
Reuters-IUCN Media Awards at a ceremony in Bangkok, Thailand, on 18
November, during the 3rd IUCN World Conservation Congress. The regional
winners – representing Latin America, North America and Oceania, Europe,
Asia, English-speaking Africa and the Middle East and French-speaking
Africa – have been selected from some 300 print entries from over 50
countries. A global winner will be chosen from the six regional winners
by a Global Master Jury, comprised of Her Majesty Queen Noor, Mr Geert
Linnebank, Reuters Chief News Editor, Mrs Yolanda Kakabadse, IUCN
President, Mr Dennis Dimick, Senior Editor, Environment and Technology,
National Geographic Magazine, Mr Mario Lubetkin, Director General of the
Inter Press Service, and Ms Denise Ham?, Chair of IUCN Commission on
Education and Communication and CEO of WWF-Brazil.
–Boundary_(ID_dDi6MZjM+RwSLSNVNff4RQ)–
http://www.iea.org/dbtw-wpd/bookshop/add.aspx?id=62
http://europa.eu.int/comm/energy/demand/legislation/end_use_en.htm
http://www.ewea.org/documents/0511%20-%20Win
http://www.erec-renewables.org/documents/targets_2040/EREC_S