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Thursday, March 26, 2020

GWPF Newsletter: Diplomats Signal End Of Europe’s Green Deal In Attempt To Save EU Economy








US Democrats Retreat On Using Coronavirus Relief Bill For Green New Deal

In this newsletter:

1) Diplomats Signal End Of Europe’s Green Deal In Attempt To Save EU Economy
Reuters, 25 March 2020
 
2) Europe's Car Industry Faces Unprecedented Crisis, 14 Million Jobs At Stake
Autocar Professional, 25 March 2020

  
 

3) Coronavirus Spooks Europe’s Car Industry And May Spur Delay Of EU CO2 Regulations
Neil Winton, Forbes, 22 March 2020

4) European Airlines Crippled By COVID-19 Pandemic Demand Breaks From Carbon & Climate Taxes
Reuters, 24 March 2020
 
5) US Democrats Retreat On Using Coronavirus Relief Bill For Green New Deal
The Washington Times, 25 March 2020

6) Energy Bills Could Rise By £195 Because Of UK Lockdown
Wales Online, 25 March 2020

7) BBC Finally Concedes: Green Energy Plants Are A Growing Threat To Wildness Areas


Full details:

1) Diplomats Signal End Of Europe’s Green Deal In Attempt To Save EU Economy
Reuters, 25 March 2020

“We cannot just continue with the plans and programmes we had so far. They were developed for a world without coronavirus.”













BRUSSELS (Reuters) – Poland, which relies heavily on coal-fired power stations, will find it even more difficult to achieve the European Union’s climate goals because of the impact of the coronavirus epidemic on the economy and companies, the government said on Wednesday.

Poland is the only EU nation that has yet to commit to the bloc’s target of driving down net emissions of greenhouse gases to zero by 2050, the centrepiece of the European Commission’s Green Deal.

The EU executive proposed laws to achieve the net zero goal this month but, since then, the rapidly spreading coronavirus has prompted sweeping measures across the bloc that have upended businesses and hammered the economic outlook.

“As a consequence of this crisis our economies will be weaker, companies will not have enough funds to invest, completion of some important energy projects may be delayed or even suspended,” Poland’s climate ministry told Reuters.

“These are real problems that we will be facing soon and achievement of our climate goals will be even more difficult because of them,” it said in a written response to questions.

Poland has already said the EU should scrap its emissions trading scheme or exempt Poland from the scheme.

Some diplomats in Brussels have signalled the need to rethink climate plans because of the economic turmoil.
“We simply don’t have the money to do everything,” an EU diplomat said, referring to the risk that the bloc’s Green Deal was at risk because of the economic impact of the virus….

The bloc had hoped to win support from all 27 member states for its 2050 goal at a June summit, although that meeting could now be overtaken by the coronavirus fallout.

“Maybe it will be less on Green Deal but more on trying to restart the economies,” a senior EU diplomat said. “We cannot just continue with the plans and programmes we had so far. They were developed for a world without coronavirus.”

Full story

2) Europe's Car Industry Faces Unprecedented Crisis, 14 Million Jobs At Stake
Autocar Professional, 25 March 2020
 
The effect of the coronavirus on society and the global economy is unprecedented, with grave consequences for the automobile industry. Europe, like India, is among those affected.



Most of the members of the European Automobile Manufacturers’ Association (ACEA) have already announced temporary closures of plants due to collapsing demand, supply shortages, and government measures, and are facing cases of corona infections and quarantines among their employees.

“It is clear that this is the worst crisis ever to impact the automotive industry,” said Eric-Mark Huitema, ACEA Director General. “With all manufacturing coming to a standstill and the retail network effectively closed, the jobs of some 14 million Europeans are now at stake. We call for strong and coordinated actions at national and EU level to provide immediate liquidity support for automobile companies, their suppliers and dealers.”

Huitema added, “We appreciate the policy measures that have already been announced, which will provide much needed immediate support for employees and companies alike. But we now also need an urgent dialogue with the President of the European Commission to do two things.”

“Firstly, to take concrete measures to avoid irreversible and fundamental damage to the sector with a permanent loss of jobs, capacity, innovation and research capability.

Secondly, Europe should prepare to stimulate the recovery of our sector, which will be a key contributor to the accelerated recovery of the European economy at large.”

“We stand ready to work with the European Commission, national governments and other stakeholders to navigate through this unfolding crisis,” stressed Huitema.

Full story

3) Coronavirus Spooks Europe’s Car Industry And May Spur Delay Of EU CO2 Regulations
Neil Winton, Forbes, 22 March 2020

If Europe’s flagship automotive industry is seriously damaged by the coronavirus crisis, governments are likely to delay or water down CO2 regulations.

European Union (EU) CO2 rules forcing sedan and SUV makers to in effect “go electric” by 2030 was always going to end badly for the automotive industry and consumers, but the coronavirus crisis has suddenly brought this to a head.

As the European automotive crisis deepens, with plants closing temporarily and demand likely to fall by up to 20% this year, the industry needs the EU to step in, concede its rules are going to cause irreparable harm to the business and its huge, highly skilled workforce, and either dilute the demands, or delay them for a while.

Instead, the EU is currently working on actually making the rules even more stringent. The industry seems too fearful of offending politicians to plead for some protection against the malign impact of the rules, which demand the equivalent of an average 92 miles per U.S. gallon by 2030.

The European Automobile Manufacturers Association, known by its French acronym ACEA, was asked if it planned to seek protection from the impact of the rules because of the crisis. In response, ACEA issued a statement seeking national government and EU financial support for the industry, which supports about 14 million jobs, unspecified measures to avoid undermining the industry, and a general stimulus to Europe’s economy.

The fuel economy rules didn’t even get a mention.

The EU Carbon Dioxide (CO2) regime insists carmakers raise average fuel efficiency from the equivalent of about 57 miles per U.S. gallon in 2020/2021, from 41.9 mpg in 2015, rising again by 15% in 2025, and hitting 92 mpg by 2030. That compares with current U.S. draft legislation calling for a 40.5 mpg fleet average by 2030.

According to a report from investment researcher Jefferies last year, if the auto industry makes no progress in curbing CO2 from 2018 towards meeting the EU’s 2020/21 regulations, it faces fines totalling the equivalent of $36 billion, twice its estimated profits, and could be forced to raise prices up to 10%. Latest data suggests in 2019, the industry went backwards not forwards in production of CO2 thanks to the popularity of SUVs and the demise of diesel.

The industry is also spending vast sums investing in research and development of electric cars, and at the same time withdrawing big profit margin gas guzzling top of the range sedans and SUVs to help beat fuel economy fines, while pushing forward low or non-existent profit margin small cars.

Norddeutsche Landesbank Girozentrale analyst Frank Schwope said it’s time for these rules to be looked at again if the industry is to be rescued from this crisis.

“The coronavirus crisis poses unprecedented problems for automobile manufacturers and suppliers. Production and sales are largely paralyzed for at least 4 weeks. The European’s CO2 targets or the fines (manufacturers) face may be softened or postponed, so that companies are not at risk of financial burdens,” Schwope said.

Guido Nelissen, Economic Advisor with the IndustriAll-European Trade Union also called for some understanding from the EU.

“Sales in Europe are already down about 8% (in the first two months of the year) and there will be a dramatic drop in sales this year, making it impossible to introduce electric and hybrid cars. I think we have to ask (the EU Commission) for a delay for, say, one year. It makes no sense to levy heavy fines in tough economic times,” Brussels-based Nelissen said in a telephone interview.

Full post
 
4) European Airlines Crippled By COVID-19 Pandemic Demand Breaks From Carbon & Climate Taxes
Reuters, 24 March 2020

PARIS/BRUSSELS — European airlines crippled by the coronavirus have demanded lasting relief from environmental taxes – in a move that pits their immediate survival against longer-term emissions goals.



The looming tax tussle underscores shifting environmental battle lines and a broader question for governments injecting billions into their afflicted economies: Should bailouts come before climate objectives or rather be used to advance them?

The airline sector has been fighting a losing battle against tax in Europe. Governments have imposed new levies to slow growth in traffic and emissions, while the European Union plans to begin taxing jet fuel.

“This industry is going to have more taxes, not less taxes, and I think you all know it,” top EU transport official Henrik Hololei told airline CEOs in Brussels this month.

“So you can indulge yourselves with a study of what it would be like if there were no taxes — but the reality is unfortunately much harsher.”

That reality is being put to the test.

Within days of the meeting, the pandemic had dramatically worsened, forcing airlines to suspend most flights, lay off thousands of staff and seek government aid to avert collapse.

Besides public cash, airlines are pushing to defer or waive of a swath of European taxes and duties.

“After the crisis we hope governments will understand that the fragility of this industry is due to low margins and heavy cost of capital,” the head of the International Air Transport Association (IATA) said.

“And that it is not economically and financially wise to increase taxation on a sector that is structurally fragile and financially weak,” Alexandre de Juniac told reporters.

With airlines at the front of bailout queues, green advocates fear climate action may lose momentum, just as it did after the 2008 financial crisis. Collapsed oil prices also work against pricier aviation biofuels.

Full story

5) US Democrats Retreat On Using Coronavirus Relief Bill For Green New Deal
The Washington Times, 25 March 2020

House Speaker Nancy Pelosi beat a retreat Tuesday from the massive coronavirus wish list of Green New Deal projects, immigration measures and other non-virus changes she and fellow Democrats had proposed just hours earlier.

She signaled in several television interviews that her troops would likely accept the deal that will emerge from the Senate, while casting her own 1,404-page bill, with a price tag of $2.5 trillion, as more of a marker for future fights over the direction of American priorities on energy, the workforce, elections, and immigration.

“The easiest way to do it is for us to put aside some of our concerns for another day, and get this done,” the California Democrat told CNBC.

GOP lawmakers were incensed at Mrs. Pelosi’s legislation, released late Monday night, saying it threatened to undo the progress toward a deal with its focus on issues that went beyond the immediate coronavirus rescue effort.

Full story
 
6) Energy Bills Could Rise By £195 Because Of UK Lockdown
Wales Online, 25 March 2020

Experts are warning that households in quarantine are likely to face the prospect of increased monthly utility bills.



Estimates, courtesy of uSwitch.com, say that stay-at-home Brits could be in danger of adding an extra £16-a-month on energy. This, according to the report, works out to around £195 a year for individuals on poor-value deals.

Workers ordinarily out between the hours of 8am and 6pm will use more energy on boiling kettles, switching on lights and using power outlets for TV’s, computers, tablets and mobile phones.

In response, the energy industry is now said to be in correspondence with the government to help households who have been affected by the coronavirus.

Energy expert Cordelia Samson at uSwitch said: “This is a hugely unsettling time for everyone, with many people staying at home who don’t normally, and some having to juggle looking after children at the same time.”

“People will be thinking about vulnerable friends and relatives, so the last thing on their minds will be their energy bill.”

Give Britain A Break: Suspend £15 Billion A Year Energy Policy Costs To Help Households and Businesses

London, 24 March: The Global Warming Policy Forum is calling on the Government to suspend all energy policy costs for the duration of the pandemic to relieve the burden for households and businesses during this unprecedented crisis.

7) BBC Finally Concedes: Green Energy Plants Are A Growing Threat To Wildness Areas
BBC News, 25 March 2020
By Matt McGrath

Wind, solar and hydro power installations pose a growing threat to key conservation areas, say researchers.



All over Europe, renewable installations are often located in protected areas

Researchers found that over 2,200 green energy plants have been built within the boundaries of the Earth's remaining wilderness.

They say that around 17% of renewable facilities globally are located in protected regions.

A further 900 plants are now being developed in key areas of biodiversity.

The amount of renewable energy facilities in use around the world has essentially tripled over the last 20 years.

Green energy facilities are often much larger than fossil fuel power plants, with wind and solar needing areas of land up to 10 times greater than coal or gas to produce the same amount of energy.

Solar installations require lots of land

Now researchers say that often these solar, wind and hydro schemes have been built in areas of environmental significance and pose a threat to key natural habitats.

The team mapped the locations of around 12,500 of these installations. They found that more than 2,200 were built in wilderness, protected regions and key biodiversity areas.

Some 169 were found in strictly managed protected areas where no development activity at all should occur.

"Energy facilities and the infrastructure around them, such as roads and increased human activity, can be incredibly damaging to the natural environment," said lead author Jose Rehbein, from the University of Queensland, Australia.

Hydro facilities in Africa and Asia can significantly alter the landscape

"These developments are not compatible with biodiversity conservation efforts."

The researchers say that energy projects like solar farms often necessitate new roads, and the people who come in to service these installations sometimes build settlements near them.

Western European countries are the worst offenders at the moment, with Germany having 258 facilities in key conservation areas.

Spain has similar numbers of installations, while China has 142.

One big concern from the researchers is the likely expansion of the demand for renewables particularly in Africa and Asia.

Full story

The GWPF has been warning about this very threat for wildlife and the environment for many years.

Green Killing Machines



The Impact of Wind Energy on Wildlife and the Environment


The London-based Global Warming Policy Forum is a world leading think tank on global warming policy issues. The GWPF newsletter is prepared by Director Dr Benny Peiser - for more information, please visit the website at www.thegwpf.com.

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