Subsidy on Fossil Fuels Well it’s a very heated topic about the subsidy given by the countries for the fossil fuel. The subsidy does nothing good but only adds to the concern of the economy by rising deficit. Taking in to consideration the global economy and the environment, one way of helping the environment remain […]
Indian Sugar Industry Indian sugar industry is among one of the most important segment in commodity markets and is also the main drivers for the country’s rural economy. India currently enjoys the second place in the producer’s list in the whole world just behind Brazil. Apart from this it also supports over 50 million farmers […]
Europe which has been one of the greenest regions on earth in terms of promoting green energy and reducing carbon emissions is set to face a severe test. Europe is going to impose a Carbon Tax on Airlines flying into the region from 2012 . This has got the other major countries seeing red, with most of them planning retaliation. This Green Tax will add around $3 billion per year in terms of extra fees from airlines or around $6 per extra passenger. While airlines from USA and Canada approached the court, airlines from India and China are refusing to pay the tax outright. Indian airlines won’t supply their carbon data while China won’t pay the taxes . Note European Union is isolated in this fight against climate change . Though Carbon Trading is not a perfect system and open to abuses, at least it makes a pretense to fight global warming. On the other hand,these other countries have no plan or intention to fight climate change.
Airline Ticket Prices are set to go up as European Union implements its ETS Scheme on the Airline Industry from 2012.Note EU as a region has been one of the most active players in the climate change arena and has an active carbon emissions market.Though this market has encouraged fraud and profiteering by unscrupolous players making it a good target for the fossil fuel lobby,the principle to fight against global warming is a good one.Compare that to USA,Canada and Japan who have done nothing to fight climate change despite the wealth of these nations.Canada has been guilty of abandoning the Kyoto Plan after missing its previous target.It has faced no penalties as it is not legally enforceable.The country continues down the pollute as much as you can pushing oil extraction from tar sands which is much more dangerous to the environment than normal oil drilling.
Chicago Climate Exchange the only USA Exchange to allow trading of Carbon Emission Credits has been shut down by its owner ICE.While I am no fan of Carbon Emissions Cap and Trade Policy as it gives rise to Frauds and Misplaced Incentives,the mechanism is one of the popular subsidy tools in combating Global Climate Change.Note Carbon Cap and Trading was on the Policy Agenda of the Obama Administration,however a deadlock in the Senate prevented any move in 2010.The US has been a huge laggard in the global warming fight and with the Republican Ascendancy following the MidTerm Polls,things are set to stay the same.Despite the BP Oil Spill and Record Global Temperatures,US remains blind to its climate obligations.With US reluctance,the Climate Change has been in Cold Storage with little progress expected in Cancun Meet.
Sumitomo entered the Wind Energy Business in the US by buying a 42.5% stake in Stanton 120 MW Wind Farm in Texas.The Company already has Wind Assets in Japan and is partnering with Giant Chinese Utility Datang for building Renewable Energy Assets in China.Sumitomo has already built a 50 MW Wind Farm in Inner Mongolia with Datang and Kyushu Electric.Sumitomo is already strong in constructing geothermal plants having built a 140 MW Nga Awa Purua Geothermal Plant in New Zealand in 2 years flat.It also has contracts to build upto 530 MW of Geothermal Plants in Indonesia.In Phillipines the Company has partnered with another Japanese Trading Powerhouse Marubeni to finance Biomass and Waste to Energy Plants.However Solar Energy is strangely missing from Sumitomo’s strategy.It activity till now has been restricted to some small PV plants in Spain and trading of Solar Panels made by Sharp and others.Note other Global Conglomerates like ABB,GE,Siemens,LG,Samsung are in the process of making massive investments into the Green Industry.