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ÉNERGIE IBRE ISSUE #2, OCTOBER 2012

WORLD`S LARGEST CARBON FUNDS: CREATION, PERSPECTIVES ON FUNCTIONING AND DEVELOPMENT THE GREEN ECONOMY ARISES FROM YOURSELF

GLOBAL WARMING: JUDGMENT BY OURSELVES

PHYSICAL ECONOMY OF S. PODOLYNSKY. IDEAS ABOUT ENERGY BUDGET OF THE TERRITORY ENERGY PROSPECTS FOR STATEWIDE AUTOMATED MANAGEMENT SYSTEM. EVERYTHING NEW IS WELL-FORGOTTEN OLD


ÉNERGIE LIBRE

O

n its path to global prosperity the global economy has ignored environmental issues for too long. As a result nowadays the world faces a lot of problems, including ecological catastrophes, environmental pollution, climate change, food and energy crisis. Having assessed the risks related to such unconcern we should try to correct the current situation by directing all means of the global economy. In order to promote sustainable development of a planet, our magazine "Énergie Libre" is focused on means and initiatives which try to achieve this goal, namely international agreements on protection of environment, environmental economy, carbon market, alternative energy and energy efficient technologies, etc.

From the editors of

“ÉNERGIE LIBRE”

BFSE.COM.UA


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THE CONTENT OF THE ISSUE

POLICY Global warning: judgment by ourselves……………………………………….…....4 ECONOMICS Physical economy of S.Podolynsky. Ideas about energy budget of the territory……………………………………………………………………………...6 FINANCE World`s largest Carbon Funds: creation, perspectives on functioning and development……...………………………………………...………………….11 FEUILLETON The Green Economy arises from your self……………………………...……… ...17 TECHNOLOGIES Energy prospects for Statewide Automated Management System. Everything New is Well-Forgotten Old…………….………………..…………….20

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POLICY

GLOBAL WARMING: JUDGMENTS BY OURSELVES. There is little doubt that the burning of fossil fuels and deforestation have altered the Earth’s climate, some uncertainty remains about whether and when such changes will become unmanageable.

D

“Besides, two degrees warming worldwide means 3.5 °С warming in Africa.... “

o you know that according to scientists’ predictions the population of polar bears will shrink by two

thirds till 2050? In perspective polar bears

of the millennium, and small island coun-

will be for our posterity what dinosaurs for

tries like Grenada – even earlier. That’s

us are. Global warming is to blame for this,

why Small Island State Union appeal to the

as for 90% of problems of planetary scale.

world community with the request to limit

All of us know theoretically the nature and

global average temperature increase to no

consequences of this phenomenon, but few

more than 1,5°C above pre-industrial level

people realize its effects in full, and mainly

while it has already been exceeded by 0,8

how soon we will feel real changes. So, we

degree. Otherwise it could be evaluated as

continue to live our usual life passing the

a genocide against island countries. One

buck to anyone – politicians, scientists, big

more reason to sound the alarm is the

corporations, non-governmental organiza-

threat of fatal diseases spread - first of all

tions. The year 2010 was the hottest of the

malaria. Rainfalls acceleration, tempera-

last 130 years, and 12 of 15 last years were

ture background and humidity rising create

the warmest by the average annual temper-

favorable conditions for spread of malaria

ature. According to some scientists’ re-

agents and for expansion of its carriers –

searches, this tendency will lead to the rise

mosquitoes. Annually 300-500 millions of

of sea level by 1, 2 meters till the end of the

people have malaria, half a million of which

century. The problem is, this process is ir-

dies. Global warming will double these fig-

reversible. Even if humankind stops carbon

ures. Fever, cholera, meningitis, plague and

emission at all till 2100, New-York, Hong

sleeping sickness will be widespread too.

Kong will be wiped off the map to the end

In addition to that nutrition problems

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POLICY will be

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accentuated. American scientists

assert, that climate changes will lead to significant crop reduction in tropics and subtropics turning formerly fertile territories into deserts. That’s why half of the earth population

will starve in the next

century. This situation will be aggravated by water shortage and its poor quality. Mass nation migration can be the main consequence of it. With regard to the flora and fauna changes, 1,5 – 2,5°С rise of average annual temperature will place 20-30% of existing animal and plant species in jeopardy, where fishes and polar bears mentioned before

are

at

the

head

of

the

list

Logotip Cop15 - Copenhagen

(according to Intergovernmental Panel on Climate Change).

2°С

rise of average annual temperature

In the year 2009 London newspaper

may have disastrous consequences ,but

«The Guardian» initiated publication of

clear mechanism of combating actions

article with appeal for solving the climate

wasn’t developed. At the same time appli-

change problem in 45 editions worldwide.

cation of small island country’s Tuvalu rep-

At that time in Copenhagen was taking

resentative for correction of the summit

place UNO conference dedicated to world

aims was rejected (he requested the aim

climate changes.

of the summit was to prevent 1,5°С rise of average annual temperature instead of stated 2°С). This 0,5°С may be crucial for

“Annually 300-500 millions of people have malaria, half a

small island countries in future: they will

million of which dies.”

be inundated by rising seas. Besides, two degrees warming worldwide means 3.5 °

German language business newspaper

С warming in Africa, that will lead to

«Handelsblatt» called this summit “climate

droughts, famines, and millions of climate

disaster in political dimension”. Despite

refugees. However, one of the biggest pol-

civil society expected

adoption of agree-

luters – USA – recognized the necessity of

ment that will reduce carbon emission

reducing 4% global warming pollution be-

firmly, only declarative document was the

low 1990 levels by 2020, while for achiev-

result of the summit. It was admitted that

ing no more than 2 degrees warming reductions must be at least ten times larger: 40% below 1990 levels by 2020. Naomi

Logotip Cop18 - Doha

Klein in her article “Better to have no deal at Copenhagen than one that spells catastrophe” wrote USA “…have carved up the last remaining unowned resource and allocated it to the wealthy." Such a situation was considered by world community as “climate colonialism”. Concrete decisions has been shifted to the Cancun conference held in December 2010.

Sourse:http://adoptanegotiator.org/2012/10/25/catastrophic-but-not

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POLICY

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Participants reached a settlement about some aspects of the treaty that will replace Kyoto Protocol in 2012. There have been developed a number of decisions about forest protection and international technology exchange. The final adoption of post- Kyoto treaty will take place this year in Doha. So, the effectiveness of the UNO in handling the matter is being brought into question. As for Ukraine, it has doubtful reputation concerning participation in such a conferences. On the one hand our country was represented on both UNO conferences dedi-

President Barack Obama speaks at the climate summit in

cated to the climate changes and took part indecision-making process. On the other

why it’s sometimes difficult for average citi-

hand, Victor Yushchenko neglected the Co-

zen to distinguish eyewash from real effec-

penhagen conference. That’s why activists in

tive actions. .

city-center distributed leaflets with his photo

Without

any

doubts

mankind

should

and inscription “Climate shame”on them. At

unite

the Cancun Сonference Ukraine was award-

moment of disaster. But we should start

- it is the only way to postpone the

ed with anti prize “Dinosaur of the day” for

with ourselves. And the point is not only a

blocking the negotiation process. The reason

carbon emission reduction, but rational use

was unconstructive position in the negotia-

of nature at all. In my opinion our problem

tions and refusal to disclose the information about the use of money received from car-

“Even if humankind stops carbon emission at all till 2100, New-

bon emission reduction.

York, Hong Kong will be wiped off the map to the end of the

Big business can’t stay aside too because

millennium, and small island countries like Grenada – even

it’s exactly big business who is being ac-

earlier. “

cused of intensive growth of harmful emission. Its superprofit is supposed to be made

lies in consumer world-view, in change of

at society’s cost .

value priorities - from spiritual to material

That’s why term “social corporate re-

ones. Our ancestors was notable for respect-

sponsibility” is used in every big business’s

ful attitude to the nature, they have made

annual report. But such an activity can be

the cult of it. What happened with our gen-

considered not only in terms of

realizing

eration then? What caused so abrupt men-

one’s responsibility, but in terms of creating

tality change? Globalization, acculturation,

one more competitive advantage and

trib-

national self- identification crises? Should

ute to company’s reputation saving. That’s

we blame USSR, where nature was sacrificed to the raising of the rate of production? In any case the most important thing is not to be indifferent. Simple things done by everyone can yield significant results. Reducing the amount of driving , preferring bicycle, taking paper for recycling and using the recycled paper (by the way, it doesn’t differ in terms of price), rational use of electricity and running water, throwing rubbish only in certain places – you don’t have to change the way of life you used to do all of this things. The most important thing: we mustn’t lose heart – we still can gain time.

Sourse http://www.environmentalcommunicator.com/151/

Myroslava Padalytsa

evidence-of-climate-change-global-warming.html

myroslavka.padalytsa@gmail.com BFSE.COM.UA

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PHYSICAL ECONOMY OF S.PODOLYNSKY. Today, from our point of view, due to some problems with of energy, raised by environmental concerns such as environmental, it is important analyze so-called energy budget of territory. Because we do not have well-established scholars over Ukraine's energy strategy, including appropriate plant operation, development of alternative energy sources, including prospects to develop agriculture. Study of Scientific Heritage S. Podolynsky allows him to consider approaches to improve the concept of our country in particular energy budget of its territory.

A

t a time when the linear model of aggressive economic growth seen in the coordinates

of

"human

-

society",

"human - environment" we received a number of natural disasters, shortage of natural

Ukrainian scientist S.Podolynsky

resources and the devaluation of "financial unit" as a market regulator. Scientific research

carried out by

apply a macroeconomic approach, which

S.

would be focused on adequate outcomes of

Podolynsky on the edge of natural and so-

natural systems , which consider the com-

cial sciences. He was the first who com-

ponents of the system: "human" - "society" -

bined the physical processes with economical,

"ecology" (Human? Economy? Ecology? ) in

methodologically demonstrating the

reciprocal communication. Only in such

need of the synthesis of natural and cost

coordinates can find an optimal solution,

parameters store solar energy in the pro-

and for the further development of humani-

cess of economic activity. So today we can

ty - to ensure sustainable development (figure 1).

Fgure 1 – Model of sustainable development

Difficulty links between different components of this system does not permit today to build such a conceptual model of it that would adequately describe the interaction between its components and the environment. Such model should meet the requirements of structural, dynamic and information completeness. In such cases, carry out decomposition of the system, understanding under this procedure - the selection and examination of all major subsystems that affect the ultimate goal of the system. It is possible on the basis of deductive approach.

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Figure 2 – Scheme of the “Energy budget of territory” Using elements of deductive approach, the

transformation of matter and energy in the

energy budget of any territory can be pre-

ecosystem is shown in Figure 3. Sun contin-

sented in the scheme (figure 2).

ues to offer us a huge amount of non con-

In terms of system analysis of this struc-

verted energy and its stock is still very

ture can be classified as:

large. But it does not run that the distribution of energy on the Earth's surface would

open system where matter and

be most beneficial to human life . Possibility

energy are transformed; system is not homogeneous, as its

of the better distribution of the energy - to

structure can be distinguished as the set of

some extent – is in the hands of the person.

subsystems

Quantitative characteristic in this case is

“energy capacity”

a system in which signs of the

product (quantity, quality, etc.) make it difficult to determine its value. A key element of the studied system is energy. On the one hand, it is one of the basic properties of matter, the total measure of all forms of movement, on the other the ability to perform some work or the source of the force, which will perform the work. Hence the "energy" in general we understand the ability to develop force. At the same time converting and makes energy conservation work, this leads to its accumulation at the disposal of mankind. The role of energy conservation law in society and the impact of people on the transformation of energy on Earth showed S. Podolynsky. He gave an analysis and classification of types and sources of energy available to mankind at that time. This solar

energy

(radiation,

photosynthesis,

Figure 3 – Scheme of movement and transformation of matter and energy in ecosystems

wind, falling water), energy of Earth's rotation (inflows), accumulated on the Earth Solar energy (coal, oil). Movement and BFSE.COM.UA

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ECONOMICS

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Types of energy Internal energy

Characteristics Energy system, which depends on the internal state of the system (it includes all forms of energy system components)

Mechanical energy

The energy of mechanical motion and interaction of bodies or their parts (energy magnetic field - magnetic energy, electromagnetic energy fields - electromagnetic energy, energy of moving particles - the kinetic energy, energy particles fixed in a gravitational field - potential energy, energy of the atomic nucleus - nuclear energy)

Heating energy

Level or change the thermal state (heat) system (the body) during the process

Electric energy

The energy of interaction and motion of electric charges Table 1 - Types of energy and their characteristics

- the property system to perceive, process,

Podolynsky showed that human labor is

absorb and transport the external energy,

useful, mainly in agriculture, reducing the

and give it away outside the system. This

scattering of solar energy, increases its

property is closely linked to productivity,

fate, which piled on the Earth's surface in

as evienced by the last unit of measure -

the form of "transformed" energy. Also

the mass or amount of energy that is con-

S.Podolynsky made definition for the con-

centrated in the mass. In a mass of differ-

cept "useful work" it is "all mechanical and

ent substances are different amounts of

mental consumption of human and animal,

concentrated energy. Types of energy and

which increasing budget of transformed

their characteristics are presented in Ta-

energy on the earth's surface"

ble. 1. Investigating

He distinguished two aspects of enerenergy,

S.

Podolynsky

gy: physical and social .

proceeded from the fact that the amount

Physical - to reduce all forms of energy

of energy is a universal value that is un-

dissipation through the rational use of en-

changed. But in some parts of Earth it is

ergy accumulated on the Earth.

distributed unevenly,

wide-

Social - is to save energy (wealth) be-

spread tendency to counterbalance it and

causing

tween generations. In relation to the whole

the gradual dissipation. Regarding energy,

generation it has an integral character.

as global figure S. Podolynsky showed

Exploring

the

system

in

general,

ability of the person to influence its

S.Podolynsky in the "work of man and its

movement and accumulation. Natural sys-

relation to energy distribution" summariz-

tem receive external energy from the sun,

es the components of energy budget areas:

which emits gamma spectra of complex

“The role of energy conservation law in society and

rays in a wide range of wavelengths - from

the impact of people on the transformation of energy

0,1 to 3000 nm. Conservation and energy conversion

on Earth showed S. Podolynsky. “

based on the equation of energy balance. Human play the role of the transformer, obtained from the Sun to give energy

• The total amount of energy derived

work. Structures which was built on Earth,

Earth's surface, gradually decreasing, but

have a high price because of work, be-

also its accumulation at the disposal of

cause they spent lots of solar energy.

mankind under the influence of increased

Podolynsky never minimalized role of so-

labor rights and pets; •

cially useful work, he was more interested

Perfect machine is humanity with

in the accumulation of living matter on the

all its economy (fields, droves, machines,

planet - or, more simply organic matter,

etc.). Productivity increases human con-

begotten by the Sun, as a precondition for

sumption of this work on the transfor-

any work and most earthly wealth - abso-

mation of higher energies into the higher

lute capital.

(production of machines, etc.);

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Photograph by Michael Melford Sourse :http://ngm.nationalgeographic.com/2009/09/solar/johnson-text

Thus, we can build energy model of our • Use of solar energy as an engine and

civilization in the form in which it exists in a

direct preparation of nutrients from inorgan-

living reality. It should be remembered that

ic materials fundamental to the continuation

"the main purpose of humanity should be an

of the most advantageous energy storage on

absolute increase in energy budget. The only

the Earth;

limit "best possible accumulation of energy

• Actions that result in the phenomenon,

on Earth" is "only the absolute amount of

the opposite of work, is theft (scattering,

energy from the sun and organic materials

embezzlement) power of humanity, in partic-

that are on earth"

ular - the war, an arbitrary limit of popula-

So the problem of creating energy budg-

tion, production of luxury goods and unpro-

et

ductive consumption. Instead, improvement

S.Podolynsky proposed a method in which

of human life quantitatively increases the

we can easily create energy budget and use

energy budget of each individual.

this energy without any harm for nature.

Several types of energy in one area can

of

each

territory

is

exists.

And

Problem of using or not using alternative

change one kind to another, it should be

“Investigating energy, S. Podolynsky proceeded from

viewed with exergety position [6], such as:

the fact that the amount of energy is a universal value

• considering the field of environment and their impact on processes of energy con-

that is unchanged. “

version; • preventing the possibility of an equilibrium system and the environment.

sources of energy should be solved by hu-

In this case, the maximum work that can

manity in the way of rightly using alternative

be executed from a given quantity of heat is

sources of energy. Thus, we should create

determined

energy budget of territory and widely use it.

- am-

by Carnot.

bient

tempera-

ture, К;

Taras Reshetyuk - temperature of the source, К.

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FINANCE

WORLD'S LARGEST CARBON FUNDS: CREATION, PERSPECTIVES ON FUNCTIONING AND DEVELOPMENT The Carbon fund operations have demonstrated numerous opportunities for collaborating across sectors, and have served as a catalyst in bringing climate issues to bear in projects relating to rural electrification, renewable energy, energy efficiency, urban infrastructure, waste management, pollution abatement, forestry, and water resource management.

A

fter adoption of Kyoto Protocol to

numeral negative characteristics this mar-

the United Nations Framework Con-

ket increases the concentration of capital

vention on Climate Change, crea-

from year to year very fast, becomes more

tion of the European Union Emis-

attractive for investors and integrates more

sions Trading Scheme (EU ETS) we faced a

and more financial institutions (see Fig. .1).

tremendous growth on the global carbon

One of such institutions is carbon fund,

market. The major instrument on this mar-

which acts as guarantor, reduces risks, in-

ket is emission reduction, which allows to

creases liquidity and is responsible for the

emit the specific amount of greenhouse

evolution of the carbon market. The main

gases. This market is called “carbon mar-

initiative to establish carbon funds are in-

ket” and today the word “carbon” we also

ternational financial institutions financed by

use with widely known processes and insti-

private and public funds. In addition, there

tutions (such as financing, funds, exchange

are funds that are fully subordinated to cor-

etc.). Carbon market is a relatively new

porations and banks. Their main feature of

market, where huge risks, low liquidity, the

all funds is that they finance projects aimed

lack of guarantees, specific goods and spe-

at

cial pricing conditions are present, as in

called “reduction units”. To show the

every new market worldwide. But despite of

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One of the largest international financial institutions - the World Bank, also does not evade the problem of climate change and has pioneered the creation of has established the maximum number of carbon funds. Unlike other institutions, the World Bank does not provide or guarantee loans for projects, but purchases the reduction units by paying for them one-off or periodic payments after the units have been confirmed. Financial resources of the World Bank all carbon funds of in 2010 amounted to 2.3 bln. USD. First Carbon Fund of the World Bank, called Prototype Carbon Fund (PCF), was founded in 2000 (See Table 1). Since then, almost all World Bank funds CFU (Carbon Finance Unit) are formed by private and government funds. Total number

Fig.1. Global carbon market capitalization, bln. USD.

of private companies that participated in the

role of financial institutions in this market

formation of carbon funds of the World Bank

we will try to demonstrate the size and char-

is 66, governments - 16.The activities of the

acteristics of some carbon funds. The largest

funds focus on projects within the Clean

carbon funds in the world are:

Development Mechanism and Joint Imple-

Tabl.1. Key performance indicators of the Prototype Carbon Fund Fund name

Fund budget (millions of USD)

Number of Projects

Volume, (million tonnes of CO2)

Prototype Carbon fund

128,6

24

28,2

Source: http://wbcarbonfinance.org mentation of Kyoto Protocol. The largest a.

Thirteen carbon funds of the

number of reduction units is achieved by carbon funds through the implementation of

World Bank. b.

projects in the field of alternative energy,

Six carbon funds of the Euro-

energy efficiency and reduction of industrial

pean Investment Bank. c.

fluorinated gases HFC-23. Geography of the

Carbon Funds of the European Bank

for

Reconstruction

funds is Latin America, Europe, Asia and

and

Africa (see Table 2).

Development. d.

Considering the largest number of pro-

Two carbon funds of the Asian

jects among the carbon funds of the World

Development Bank. e.

Carbon

fund

(Kreditan-stalt

sof für

the

Bank, we can identify Community Develop-

Kfw

ment Carbon Fund (CDCF). Founded in

Wiederauf-

2003, the fund acquired reduction units in

bau). f.

28 projects, of which 43% - the projects in

European Carbon Fund.

the field of alternative energy. Interesting is the fact that the founders

Tabl.2. Investment portfolio of World Bank carbon funds

The World Bank Carbon Finance Unit(СFU)

Number of Projects

Value of Projects (bln. USD)

Volume, (million tonnes of CO2)

155

1,7

208

Source: http://wbcarbonfinance.org BFSE.COM.UA

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Tabl.3.Key performance indicators of Community Development Carbon Fund (CDCF) Fund name

Budget (millions of USD)

Number of Projects

Volume, (million tonnes of CO2)

Community Development Carbon Fund

128,6

29

7,1

Source: http://wbcarbonfinance.org of the fund include are the governments of

Fund and Danish Carbon Fund (see Fig.

9 countries governments and 16 private

2).

companies (see Table 3).

Another significant player in the carbon

Among World Bank carbon funds, in

market is the European Investment Bank

terms of amounts of funding and number of

(EIB). The appearance of a large number of

emission reductions acquired, we can note

carbon funds managed by this organization

Umbrella Carbon Facility tranche 1.

is caused by, firstly, the commitments made

This fund was founded in 2006 with capital-

by the European Union to reduce emissions

ization of 775 million euros. By now Um-

under the Kyoto Protocol, and secondly, the

brella Carbon Facility tranche 1 has 129

introduction of European Union Emissions

million of emission reduction units. These

Trading Scheme (EU ETS). The EIB started

units were acquired from Greenhouse Gas

to finance its carbon projects simultaneous-

Reduction Projects (HFC-23). Just after

ly with the World Bank – in March 2007.

Durban

Conference

International financial institutions are man-

the

World

aging the Carbon Fund for Europe with a

Bank, together with Deutsche Bank, GDF

capitalization of about 50 million euros and

Suez and Swedish Energy Agency an-

3.1 million metric tons of CO2 emission re-

nounced the creation of a new carbon fund

ductions. Another 5 carbon funds are man-

- Umbrella Carbon Facility tranche 2.

aged by the EIB. (See Table 4).Carbon EIB

The activities of this fund will allow project

Funds are generated by private and govern-

developers to continue selling carbon cred-

ment resources. The financial resources of

its generated after 2012, under the Clean

the EIB carbon funds amount to about 809

Development Mechanism (CDM).

million euros. Such institutions as KfW,

Climate

Change

(November/December

2011)

Other significant carbon funds of the

Caisse des Dépôts, Nordic Investment

World Bank are: The Bio Carbon Fund,

Bank, Zeroemissions, CEZ and Endesa

Carbon

contribute significantly in the financing of

Partnership,

Spanish

Carbon

these funds.

Fig.2. Capitalization of some carbon funds of the World Bank

140 mln €

90,4 mln $

The Bio Carbon Fund (Tranche1,2)

Carbon Partnership Facility

220 mln € 90 mln $

Spanish Carbon Fund

Danish Carbon Fund

Source: http://wbcarbonfinance.org

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Tabl.4. The largest carbon funds managed by the EIB Name

Budget (mln euros)

1. Multilateral Carbon Credit Fund

208,5

2. Mediterranean Carbon Fund

200,0

3. EIB/KfW Carbon Purchase Programme (I,II)

190,0

4. Post-2012 Carbon Fund

125,0

5. Carbon Fund for Europe

50,0

6. Fonds Capital Carbone Maroc

36,0

All together

809,0

Source: http://www.eib.org/ Financial flows of the funds are aimed

After 17 UN Conference in Durban

both at development of relevant projects and

(South Africa) the future of the Kyoto Proto-

purchase of reduction units, under the Clean

col remains indefinitely, creating a signifi-

Development Mechanism and Joint Imple-

cant risk for the use of Kyoto units that will

mentation of Kyoto Protocol.

be issued after 2012. However, these cir-

The European Investment Bank cooper-

cumstances do not apply to Carbon Fund

ates very successfully not only with the

Post-2012, founded by the EIB and other 4

World Bank (they have a common carbon

financial institutions with high credit rating.

fund), but also with the European Bank for

The fund was launched in March 2008 with

Reconstruction and Development (EBRD).

a budget of 125 million euros. Post-2012

The result of such cooperation is Multilat-

Carbon Fund focuses on buying carbon

eral Carbon Credit Fund (MCCF), created

credits to be received after 2012. The Fund

in 2005 with a budget of 208.5 million euros.

is interested in projects in the field of renew-

MCCF focuses on projects in the field of

able energy, energy efficiency, projects to

energy, energy efficiency, developing alter-

reduce methane emissions at industrial

native sources of energy and other projects

sites and projects for disposal of greenhouse

aimed at reducing greenhouse gases emis-

gases - Carbon Capture and Storage pro-

sions. The fund is developing projects in

jects (CCS). Today the Post-2012 Carbon

different countries of Eastern and Central

Fund is dealing with projects for 1 million

Europe and Central Asia etc.). In Eastern

tonnes of reduction units (see Table 5). As-

Europe, in addition to the development of

sets of this fund are managed by Connie

projects under the Joint Implementation

(Europe) Limited – an investment adviser to

Mechanism, MCCF works under the scheme

the fund First Climate.

of "green investments". For this purpose the

The international institution - Asian

fund has divided its budget into two parts:

Development Bank's (ADB) supported the

Green Fund (58.5 million euros) and Project

economies of low-carbon in Asia and the

Fund (150 million euros).

Pacific, proposing to implement Carbon Market Program (CMP). The main result

Tabl.5.Emission reduction projects, managed by the Post-2012 Carbon Fund Name 1. Nigeria Landfill Gas

Project.

2. India Wind Energy Project.

Period of generation, years

Expected amount of reductions (СERs)

2013-2017

700,000

2013-2020

260,000

Source: http://ngm.nationalgeographic.com/2009/09/solar/johnson-text

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Tabl.6.Key performance indicators of the Asia Pacific Carbon Fund (APCF) Name

Budget (mlnUSD)

Number of Projects

Volume, (million tonnes of CO2)

AsiaPacificCarbonFund

151,8

48,0

10,2

Source: http://adb-apcf.org/project_cycles/ of two new funds: Asia Pacific Carbon

Import Bank of Korea, Swedish Energy

Fund (APCF) and Future Carbon Fund

Agency, POSCO (South Korea), Eneco En-

(FCF). Asia Pacific Carbon Fund was es-

ergy Trade (Netherlands). Both funds are

tablished in 2007 in order to purchase re-

focused on projects in the fields of renewa-

duction units generated by 2012. Portfolio

ble energy, energy efficiency, reducing

of this fund includes 48 projects (see Ta-

emissions of methane and cleaning water

ble. 6).Such organizations as Fundo Portu-

(Clean Development Mechanism).

gues de Carbono (Portugal), Swedish Ener-

Another financial institution that plays

Tabl.7.Key performance indicators of the Future Carbon Fund Name

Budget (mln USD)

Number of Projects

Volume, (million tonnes of CO2)

Future Carbon

115,00

25

8,20

Source: http://adb-apcf.org/project_cycles/ gy Agency (Sweden), The Grand-Duchy of

a leading role in the carbon market is KfW

Luxembourg,

(Kreditanstalt für Wiederaufbau) (see Ta-

Climate

Cent

Foundation

(Switzerland) and others are among the

ble. 8).

members of APCF. The activities of the

The financial institution KfW started its

Future Carbon Fund, established in 2008,

activities in the carbon market in 2004,

is evidenced by its name. FCF focuses on

creating KfW Carbon Fund in collaboration

purchasing of reduction units to be gener-

with the Government of Germany, In addi-

ated after 2012. Fund's portfolio includes

tion to the cooperation with Government of

25 projects (see Table. 7).The participants

Germany, KfW Carbon Fund works to-

of FCF included: FCF PMV (Belgium), Min-

gether

istry of Strategy and Finance with Export-

Bank, the World Bank and private

with

the

European

Investment

Tabl.8.Key performance indicators of the KfW (Kreditanstalt für Wiederaufbau) Founders

Budget (mln euros)

KfW banking group. German Federal government.

84,0

2. EIB-KfW Carbon Programme I

KfW banking group. European Investment Bank

90,0

3. EIB-KfW Carbon Programme IІ

KfW banking group. European Investment Bank

100,0

4. Post-2012 Carbon Fund

KfW banking group. European Investment BankCaisse des Dépôts. Nordic Investment Bank. Instituto de Crédito Oficial

125,0

5. Community Development Carbon Fund

KfW banking group. World bank. (other companies and government)

Name of the fund 1. KfW Carbon fund

Source:http://www.kfw.de/kfw/en/KfW_Group/Sustainability_and_Climate_Protection/Procurement_Programmes/ Participation_in_the_Post_2012_Carbon_Credit_Fund/index.jsp

BFSE.COM.UA

15

2,5


FINANCE

ÉNERGIE LIBRE

Tabl.6.Key performance indicators of the Asia Pacific Carbon Fund (APCF) CDM Project Company

Volume, (million tonnes of CO2)

1.Essaouira, Morocco, 60 MW wind farm.

Office Nationaled’Electricit

1,400,000

2. Yangquan Coal Mine Methane (CMM) Utilization for Power Generation Project.

Yangquan Coal Industry (Group)

2,136,174

ESTRE

1,050,000

Name of the project

3. Paulinia Land fill Gas Project. Source: http://www.europeancarbonfund.com/en_index.html companies. The main purpose of the KfW`s

sult, the resources of the Fund reached

funds is to support the development of the

142.7 million euros. The Foundation focuses

Flexible Mechanisms under Kyoto Protocol

on projects under Article 12 of the Kyoto

and participate in the European Union Emis-

Protocol (CDM) (see Table 9). Since its in-

sions Trading Scheme (EU ETS). KfW, to-

ception, the Fund has bought 67 million of

gether with the European Investment Bank,

Certified

has established the EIB-KfW Carbon Pro-

gained from 27 projects. The fund acts in

gramme I and EIB-KfW Carbon Programme

countries from Asia, South America and Afri-

II. As a result of carbon financing, KfW has

ca. Investors of the Fund are the companies

signed contracts worth 40 million tonnes of

such as: Citadel group, Allianz, Societe Gen-

CO2 in the 92 projects. The KfW`s carbon

erale, UniCredit and others. The fund is

fund is acting in the countries of Asia, North

managed

America, Africa and Europe. Projects in the

Infrastruc -tures.

Emission

by

Reductions

(CERs),

Natixis Environnement &

field of alternative energy form 73% of the

carbon fund, which acts as guarantor, reduces risks,

Fund's portfolio, of which 26% are wind

“…

Power, 20% - for processing and utilization

increases liquidity and is responsible for the evolution

of organic waste gases.

of the carbon market.”

Established in 2005, European Carbon Fund became one of the first private carbon

The research of selected international

funds in the market. The Fund commenced

and private carbon funds showed great in-

operations receiving financial support from

terest of international financial institutions

the CDC Climat (subsidiary Caisse des Dé-

and private capital in development of low-

pôts,

Paribas-Fortis

carbon economy and stimulation of the car-

(France). The list of investors includes addi-

bon market. The characteristic feature of

tional twelve financial institutions. As a re-

the carbon market is the presence of signifi-

France)

and

BNP

cant risks, therefore it is logical that initia-

Fig.3 Price trend of CER Spot prices at Bluenext Exchange

tors of most carbon funds are the international financial institutions (The

World

opment

Bank,

Bank, European

EIB,

Asian

Bank

for

Reconstruction and Development). Despite the turmoil in the global economy, unresolved fate of the Kyoto Protocol and reduce the price of emission permits (see Fig.3), the funds do not reduce the amount of financing projects and continue to build up their portfolios. The most popular among the carbon funds are reduction units from projects in the field of alternative energy, energy efficiency and related projects to reduce emissions of fluorinated gases. Source: http://www.climate-connect.co.uk/Home/?q=node/1779

BFSE.COM.UA

16

Gonta Andrey Chief of civic Organization «Vilna Energia» bfse@bfse.com.ua


FEUILLETON

ÉNERGIE LIBRE

Fashion

THE GREEN ECONOMY ARISES FROM YOURSELF It's time to see green economy as a pathway out of economic recession. Green economy is one that will drive investment and financial flows towards restoring our environment and generating a better quality of life for all.

M

ost of the people haven’t hear so

steps on the way of global green regenera-

much

tion. Today, green business is profitable

about

majority

green economy, but “a recent phe-

branch of the business world. Probably this

nomenon, something that has sud-

see it as

is the reason why such companies are criti-

denly sprang up” and the time is not ripe

cized. The green business is really in its

for action now. BUT the green economics is

infancy, and the future of being green will

the economics of the real modern world—

no doubt distill down to some very real and

not just about the environment, but the

definable goals and practices. But my aim is

world of work, human needs, the Earth’s

to involve nonchalant individuals into the

materials, and how they mesh together

green world, that’s why I’ll be consider

most harmoniously. It is about regenera-

them as the most progressive link in the

tion (not about accumulation) of individuals,

green movement chain. Today’s business is

communities and ecosystems. So every Hu-

all about being green. From Wall-mart to

man being and human worker can no longer

Apple, everyone is talking about how green

serve as cogs in the machine of accumula-

their approach, packaging, or methods are.

tion, be it capitalistic or socialistic. It’s a

In order to be considered a green business,

brand new system, which has been changing all the spheres of people’s lives and minds. So, you still think that it for all you

“Wal-Mart took up the " green"initiative, and introduced plans for an environmental overhaul, including making its trucks more efficient...”

cares!? Certainly we must move to harmonize with natural systems. But doing this re-

a company must use practices which are

quires great human creativity, tremendous

viewed as sustainable and environmentally

knowledge, and the widespread participa-

friendly. These practices might include the

tion of everyone: individual, government,

use of organic and natural products to build

businessmen, household, community. But I

its factories, tighter protections against

would like to illustrate the impact of busi-

emission, and environmentally responsible

ness into the green world, to show the first

sourcing of supplies.

BFSE.COM.UA

17


FEUILLETON

ÉNERGIE LIBRE

Source:http://powerelectronics.com/power_systems/smart-grid-success-rely-system-solutions-20091001/ For example, FedEx and United Parcel Ser-

mental risks and opportunities compared to

vice using hybrid vehicles in an attempt to

their competitors (Global 100 Most Sus-

cut costs and reduce their environmental

tainable

impact.

2011,2011).

In

2005

General

in

Companies

the

like

World

Alcoa

and

launched

Dupont, for example, have established sys-

commit-

tems to reduce carbon emission and other

ment to produce technology that reduces

harmful chemicals, the most likely targets

energy consumption and waste. Such com-

for

Ecomagination,

Electric

Corporations

representing

a

government

intervention.

Wal-Mart

panies as Toyota and Honda continued to improve their hybrid technologies.

As a

result, as consumer concern about climate change grew, these companies stood ready to provide earth-friendly products. Companies like Nike Inc., which set targets to reduce waste and packaging and become "climate neutral", and Hewlett-Packard , which is working

toward reducing waste

and setting up recycling services for electronic waste, made the “Global 100 Most Sustainable Corporations in the World”, list based on how well they managed environtook up the "green" initiative, and introduced plans for an environmental overhaul, including making its trucks more efficient, building new stores with strict energy conservation goals and pushing suppliers to reduce packaging. Apple also becomes greener: they started recycling in 1994 and today they operate recycling programs in countries where more than 82% of all Macs and iPods are sold. Apple’s U.S. retail stores take back unwanted iPods for environmentally

friendly

disposal

free

of

charge. As an incentive, they even offer BFSE.COM.UA

18


FEUILLETON

ÉNERGIE LIBRE

Inditex

group

obliged

its

5000

shops

throughout the world to reduce energy use by 30 % and cut water use by half till 2015. It’s the very least needed for LEED (Leadership in Energy and Environmental Design) certification. Levi's

has

launched

ecologic

pro-

gram WaterLess, aimed at reduction of water usage at all stages of jeans production and people’s lives. It is claimed, that settling this program will save on 20 mln l — what is enough to supply the city with population of 10 000 with drinking water. In addition, Levi's stimulate customers to save on water and hand over part of sales return to charitable institution Water.org.

spending lots of money, time and force on

To highlight the seriousness of green

environmental protection. I want you to

trend, let’s look at carbon market. “In a

start with easy tips:

market worth in excess of 188 Billion Dol-

-Save energy to save money (Set

lars, demand for Carbon Offsets is rising

your thermostat a few degrees lower in the

dramatically due to companies such as

winter and a few degrees higher in the

Marks

Rover,

summer. Install compact fluorescent light

Aviva & the Co-Operative, to name just

bulbs. Unplug appliances when you're not

four, committing comprehensively to car-

using them)

&Spencer,

Jaguar

Land

-Save water to save money (Take

“Wal-Mart took up the " green"initiative, and introduced

shorter showers. Install a low-flow shower-

plans for an environmental overhaul, including making

head) -Less gas more money (and better

its trucks more efficient...”

health!) (Walk or bike to work. Lobby your

bon neutrality with their competitors fol-

local government to increase spending on

lowing suit, this drive for demand is conse-

sidewalks and bike lanes.)

quently pushing up the price of credits

-Eat smart (Add one meatless meal a

fast”. So, look around, maybe you have

week. Buy locally raised, humane, and or-

already been involved into the green life!?

ganic meat, eggs, and dairy whenever you

But unconscious impassive usage is not

can.) -Skip the bottled water (Use a water

enough. I don’t want to incline you to

filter to purify tap water instead of buying bottled water. Bring a reusable water bottle.) -Think before you buy. -Borrow instead of buying. -Buy smart (Invest in high-quality, long-lasting products) -Keep electronics out of the trash (Keep your electronics as long as possible. Donate or recycle them responsibly when the time comes.) -Make your own cleaning supplies (All you need are a few simple ingredients like baking soda, vinegar, lemon, and soap). So, let’s start with ourselves!

Natali Palyona

Source:http://www.thecorner.eu/2012/09/ferrovial-selected-for-dow-jonesindex-of-most-sustainable-companies/

BFSE.COM.UA

natalipalyona@gmail.com

19


TECHNOLOGIES

ÉNERGIE LIBRE

ENERGY PROSPECTS FOR NATIONAL ECONOMY MANAGEMENT SYSTEM. EVERYTHING NEW IS ACTUALLY WELL-FORGOTTEN OLD Most of the ideas that now seem innovative and worthy of attention have a long and continuous history of success and failures.

F

or example, one can recollect N.

cesses in the state. The idea, which was

Tesla’s idea of using alternating

immediately accepted with a great enthusi-

current network to transfer energy

asm and gained a considerable support at a

over

long distances. For a long

high level of management, eventually began

time this idea could not be realized due to

to lose its power. But at that time there

resistance from the market monopolists,

existed, a number of reasons, which signifi-

who were threatened with the loss of their

cantly hindered the development of this

profit. And just over time it became obvious

project.

for everyone that such an approach was not

First of all, one should mention a State

only innovative in the industry, but also

Planning Commission (Gosplan), which was

made it possible to implement a number of

a colossus - the embodiment

projects in other sectors of economic and

vision of a planned economy, and bureau-

social activities.

cratic apparatus, the abolition of which

of Lenin’s

would lead to necessity of retraining or creation of new working places for a huge

“….of three five-year periods this project was to bring almost 100 billion “roubles” to the state budget.”

number of civil servants. Moreover, managers of state enterprises immediately

real-

The same story happened with the pro-

ized the extent of "elimination of the shad-

posal for the creation of Statewide Auto-

ow economy" and disclosure of operational

mated Management System for Collection

information about the actual performance

and Processing of Information for the Ac-

of their activities.

counting, Planning, and Management of the

Secondly, implementation of such a large

National Economy (in Russian, abbrevia-

project required significant funds. For ex-

tion, OGAS) by B.M. Glushkov. In the early

ample, a project to build an automated con-

60's Mr. Glushkov was one the first who

trol system (ACS) called for 4-5 billion

saw the perspectives in the creation of such

“roubles”1 , while OGAS needed almost 20

a computerized system that would optimize

billion.

the business, economic and financial proBFSE.COM.UA

20


TECHNOLOGIES

ÉNERGIE LIBRE

Fig.1. Areas for modernization of existing smart grid supply in North America .

Source:http://powerelectronics.com/power_systems/smart-grid-success-rely-system-solutions-20091001/ However, at the end of three five-year

but also in degradation of natural environment3.

periods this project was to bring almost 100 billion “roubles”2. to the state budget.

Taking into account such global meta-

Thirdly, another obstacle deterring fur-

morphosis, most of the states in the world

ther development of such of such a sys-

chose the policy to develop the renewable

tem was the level of IT technologies. At

energy sources. This decision gives them

that time the data had to be entered on a

good opportunities not only in the fight

periodic basis, which slowed down the pro-

against climate change, but also in the

cess of collecting and processing infor-

economic and financial issues. However,

mation.

diversification of energy sources requires a

The procedure itself was cumbersome

fundamental alteration of the existent pow-

and required a human directly involved in

er system. Bringing the share of renewable

the process. As a result, the project has

energy sources in total energy consump-

been implemented only in a few sectors.

tion to 20% in 2020 (plans of Europe and

This fact disallowed to realize all the bene-

USA) requires the implementation of a

fits of this innovative method and excluded

system which would enable to regulate the

the possibility of creating an integral auto-

voltage drops in the network4 (see Fig. 1).

mated control system for

The new system, supplying electricity to

of production system existing for many

consumers, will also include the construc-

decades.

tion of power storages, which could extract

Today’s reality revealed the inability of

the surplus energy from the smart grid

economy to operate in a market, where

during the over-voltage, and pump it back

high rates of growth of industrial produc-

in case of

tion are reached managing business , eco-

resembles greatly the economic relations

nomic and financial processes in the state.

in general, where there is a specific pro-

Over time there have been changes that

duction process with the results consumed

have shown all imperfections

either

only through a more intensive use of the

moved to the surplus store for further im-

limited non-renewable natural resources.

plementation in a time of scarce.

power shortage. Such system

immediately

or

when

they

are

Such policy eventually resulted not only in depletion of the existing resources stocks, 1.Kutsyk , Mahar , Stavchikov Problem of increasing the efficiency of ACS / BS Kutsyk, NV Mahar, AI Stavchikov. - Moscow: Nauka, 1982. - S. 17. 2.Malinowski The history of computer technology in their faces. - K.: firm "KIT" VET "ASK", 1995. - 384 lopment: critical issues. - Organisation for Economic Co-operation and Development, 2001. – Р. 69-71.

BFSE.COM.UA

3.. Sustainable development: critical issues. - Organization for Economic Co-operation and Development, 2001. – Р. 69-71.

21


TECHNOLOGIES

ÉNERGIE LIBRE

The idea of building a “reasonable net-

- regional electricity supply systems in

work” is implemented simultaneously in

Mexico and Canada;

Northern America and Western Europe.

- local networks for supplying electrici-

And while European variant covers mainly

ty to final consumers.

the most developed countries (e. g., Germa-

Secondly, final consumers will get a spe-

ny), American project approved by the

cial device that every few seconds passes

State Department of Energy and by Power

the information about the amount of energy

Transmission Office in 2003, stipulates the

consumed to the supplier. At the same

construction of a network that would sup-

time, the consumer has the ability to regu-

ply energy to nearly 130 mln people in the

late with his own hand the way and the

early stages. Future expansion of the pro-

amount of electricity consumption, up to determine the order of representation of

ject is provided by Mexico and Canada. 5

individual appliances.

Up to year 2030, American project calls

Hence, it is possible to obtain the real-

for 165 billion dollars of investments (from

time information about the necessary vol-

8.3 billion to 18 billion dollars per year).

umes of electricity, and, as a result, the

However, the economic effect of this pro-

management

ject will range between 638 and 802 billion

company

receives

an

im-

portant tool for the planning of its activi-

dollars after its implementation (1 dollar of

ties.

investment will bring 4-5 dollars of profit)6.

Thirdly, taking into consideration the

At first glance, it seems that modern

existing methods of analyzing shadow econ-

power project and work by V.M. Glushkov

omy, the most common is that one which is

concern different spheres of economy. sys-

based on a comparison of the volumes of

tem requires the availability of the levels,

energy consumed by national economies.

similar to those that are introduced in the

The data show that almost 54% of the national economy "operated in the shadow"

project by V.M. Glushkov.

at the beginning of 2000 8.

But it is the use of energy as a unit allows to remove a number of the re-

Fourthly, it is necessary to recall the

strictions, with which our compatriot’s pro-

work of technocrats led by H.Scot. They

ject faced in his time

were the first to count the balance of the

Firstly, implementation of Smart Grid

U.S. economy using power units, allowing

system requires the availability of the lev-

them to avoid fluctuations in the price

els, similar to those that are introduced in

(excluding the destructive influence of monetary

the project by V.M. Glushkov. Both projects have collected information with

adjoined

regional

of

outthis

Thus, the proposed integrated "smart build OGAS as a system monitoring and

the chain there are consumers of electricity

controlling of the entire country's economy.

using so-called "reasonable counters" that

The use of power units instead of modern

facilitate the work of not only energy sup-

cash is an important prerequisite for long-

plier, but also for the user. Those devices

term and accurate planning of business

facilitate the work of power suppliers and

processes and protecting them from the

users.

influence of inflation. “Smart Grid”

itself

in

North

America, according to the approved docu-

Alexander Sushchenko, associate professor Department of Finance KNEU them. Hetman suschenko7@gmail.com

ments, will include the following components:7 - national electricity supply system in the USA;

5 Richard J. Campbel. Smart Grid and Cybersecurity – Regulatory Policy and Issues / CRS Report for Congress, June 15, 2011. – P. 11. 6.Tony Seba. Solar Trillions - 7 Market and Investment Opportunities in the EmergingClean-Energy Economy. – First Beta

BFSE.COM.UA

real

grid" is the real embodiment of ideas to

by industry takes place. At the bottom of

Edition, 2009. – P. 229.

get

of energy crisis of the 70’s in the USA.

units

(distribution companies), where breakdown

The

and

representatives

trend used power units to foresee the onset

processing center (State Energy Company/ Agency)

factor)

put9.Moreover,

7.Adrian T. Sobotta, Irene N. Sobotta, John Gøtze. Greening It. How Green IT Can Form a Solid Foundation For a LowCarbon Society. – The Green IT Initiative, 2009. – P. 143. 8.Freferich Schneider, Dominik Enste. Shadow Economies Around the World: Size, Causes and Consequences // Working Paper 00/26. – Washington D.C.: International Monetary Fund, February 2000. – Р. 10.

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23


Email address : bfse@bfse.com.ua Website: www.bfse.com.ua

“Climate change is the defining challenge of our age.” Ban Ki-moon, CMP 3, Bali, Indonesia

Magazine "Energie Libere"  

Magazine "Energie Libere" №2, 01.01.2012