Returns on fossil fuel investments aren’t keeping up with solar and wind, and are less likely to do so in the future, says bank report
You wouldn’t expect a bank in the oil-rich Middle East to be touting the future of renewable energy over that of oil. But that’s just what the National Bank of Abu Dhabi (NBAD) is doing with its new report, “Financing the Future of Energy: The opportunity for the Gulf’s financial services sector.”
Photo by Alejandro Flores
Aimed primarily at investors and focusing on financial performance and potential, the report found that fossil fuels just weren’t keeping up with solar and wind, and were less likely to do so in the future, even if oil prices dropped much lower than they are now.
“It provides insights into how that community might engage with public and private sector stakeholders to create a more energy efficient economy, turning the aspirations of the region into a reality that will attract the attention of the rest of the world and unlock significant financial opportunities,” says the report’s introduction.
Energy demand is expected to triple in the next 15 years in the rapidly growing Persian Gulf region — already the biggest energy consumer per capita in the world — a demand far outstripping the current supply. Yet, despite the recent plunge in oil prices, the report says that that demand will be more efficiently filled by renewables, offering more reliable and lucrative investment opportunities than oil.
“Some of the report’s findings may surprise you, as they did me,” writes NBAD CEO Alex Thursby in the report’s introduction. “For example, renewable energy technologies are far further advanced than many may believe: solar photovoltaic (PV) and on-shore wind have a track record of successful deployment, and costs have fallen dramatically in the past few years. In many parts of the world, indeed, they are now competitive with hydrocarbon energy sources. Already, more than half of the investment in new electricity generation worldwide is in renewables. Potentially, the gains to be made from focusing on energy efficiency are as great as the benefits of increasing generation. Together, these help us to reframe how we think about the prospects for energy in the region.”
The risks of a highly centralized food system
By now there has been a steady stream of news about climate change’s impacts on food production. Heat waves, drought, and wildfire are damaging harvests in California, Australia and Brazil. Warming and acidifying oceans threaten seafood stocks. Rising temperatures are causing declines in crops as different as wheat and cherries, while extreme precipitation and floods have destroyed crops across the US and Europe. Increasing temperatures and CO2 levels are reducing the nutritional value of grasses and increasing heat stress, in the process impairing animals’ ability to produce eggs, meat, and milk.
At the same time, climate change is also beginning to disrupt another key aspect of food security: how food gets to market. The same effects that are hurting food production – storm surges, floods, and other extreme weather events all around the world – are also highlighting the vulnerability of food distribution systems that rely on long-distance transportation, centralized wholesale markets, and the often concentrated food production sources.
Farmers everywhere are getting used to the idea of a very different future as they deal with changing patterns of precipitation, temperature, and soil conditions. “Like a lot of growers, I was a little bit in denial, hoping the climate was not changing,” says Elizabeth Ryan, who owns and operates Breezy Hill Orchard, which grows apples in New York’s Hudson Valley. Now, she says, “we’re seeing acute weather swings” and “hail that used to be episodic and occasional is now frequent.”
That the US produces such a massive volume of food does not mean that food security here is invulnerable to climate change, says Diana Donlon, director of the non-profit Center for Food Safety’s Cool Foods Campaign. By way of proof, she points to huge losses that resulted when Hurricane Irene hit Vermont in 2011 and the epic 2013 floods in Colorado. Donlon also notes that in economically developing countries an estimated 40 percent of all food waste already occurs because of problems …more
A photo essay from the Arctic National Wildlife Refuge
Last summer three friends and I had the rare opportunity to immerse ourselves in the rugged wilderness of the Arctic National Wildlife Refuge. There are no roads in the refuge, and very few people visit this “the Last Frontier.” Most visitors fly in by bush plane, and then camp and hike within the region. Others backpack in. Last July, my group flew over the Brooks Range and then river rafted through the North Slope to the frigid Arctic Ocean. For two weeks and 160 miles we paddled down the Upper Marsh Fork to the Canning River, then converging with the Staines River, to finally arrive at shores of the Beaufort Sea.
The Canning is an interesting river in that it forms the western border or the Arctic National Wildlife Refuge, the vast, 19-million acre preserve that is North America’s largest wildlife conservation area. To the west of us lay the Prudhoe Bay oilfields, the central hub of oil extraction on the North Slope. On the east shore of the Canning the wildlife preserve begins.
In January, President Obama made big news when he directed the US Fish and Wildlife Service to begin managing all of the reserve as legal wilderness – meaning no development will be allowed there, including oil development in what is called the reserve’s 1002 area, the section that oil companies and environmental groups have fought over for decades.
Naturally, environmentalists were thrilled with the president’s move. “The Coastal Plain is the wild heart of the Arctic National Wildlife Refuge, which is why Americans from all walks of life have advocated for its protection for more than half a century,” Michael Brune, the executive director of the Sierra Club, said in a statement at the time. “This Wilderness recommendation at last recognizes the wonder and importance of the region for Native cultures, wildlife, and anyone seeking to experience one of America's last great wild places." Oil companies and their political allies were, unsurprisingly, angry with the president’s move. “It's clear this administration does not care about us, and sees us as nothing but a territory,” Senator Lisa Murkowski, an Alaska Republican, said. “The promises made to …more
In Chicagoland, a quiet rewilding is underway
A cougar prowls wooded ravines in a wealthy community, searching for a mate. A coyote slinks through a human-built landscape on its way to its den outside one of the country’s largest football stadiums. Out in the chain of lakes, a recreational boating area, a plant biologist finds lotus plants blooming for the first time in generations. Further still from the city, a black bear wanders cornfields, seeking a home.
Photo by Ryan Stavely
Thirty years ago, this was all improbable — perhaps impossible. Now, wildlife is returning to the shores of the Great Lakes, even into the heart of the great city of Chicago. Although it’s home to nearly 10 million people, greater Chicagoland also houses more wildlife than at any time in recent history. The city and its suburbs are being rewilded.
Ecological impoverishment has a long and sad history in this country, including the greater Chicago region. When white settlers first arrived in the Great Lakes region, the area had an abundance of deer, coyote, fox, otter, beaver, and a smattering of bobcats, wolves, and elk, too. In the early nineteenth century, there was more than enough wildlife; settlers could trap beaver, muskrat, and otter for fur, go hunting for sport, and have more than enough to feed themselves. In time, though, the city and its hinterland swelled in population, with little to no change in the every man for himself hunting policy. By the turn of the last century, white-tailed deer, by far the most abundant large animal here, was extirpated in the region.
But now the pendulum is swinging back toward ecological health. In the absence of any real predator, deer have overpopulated the area. In 1957, the first modern, regulated hunting season for the animal began. By the 1990’s, the deer had so capitalized on the available habitat and lack of predators that professional culling became necessary, though controversial.
It seemed, for a bit, that Chicago area residents had only to deal with the deer. Then the coyotes started to appear.
In 2000 the Urban Coyote Research program began to study the increasing reports of coyote sightings in suburban Dundee, located northwest of the city center. The …more
Wildlife advocates hopeful, but say more needs to be done to save African elephants from being poached to extinction
A bit of positive news to end this week with: Yesterday, China imposed a one-year ban on ivory imports. From the Associated Press:
"The State Administration of Forestry declared the ban in a public notice posted on its official site, in which it said the administration would not handle any import request.
"In an explanatory news report, an unnamed forestry official told the state-run Legal Evening News that authorities hope the ban would be a concrete step to reduce the demand for African tusks and to protect wild elephants. The official said the temporary ban would allow authorities to evaluate its effect on elephant protection before they can take further, more effective steps."
Photo by Steve Garvie
The ban, which went into immediate effect, seems to be in response to mounting criticism from the global community that increasing Chinese demand for ivory is fueling rampant poaching and threatening drive African elephants to extinction.
Just last week, British naturalist Sir David Attenborough and several other conservationists and British members of Parliament sent a letter to the Chinese President Xi Jinping urging him to “to act decisively to finally end China’s domestic ivory trade (both legal and illegal).” The move also comes days ahead of a visit to China by Prince William, who is the royal patron of Tusk, a charity working to conserve wildlife in Africa. The 32-year-old prince, who will land in Beijing on Sunday, is expected to bring up the issue of ivory and wildlife trafficking during his visit.
The elephant population in Africa has fallen 65 percent since 1980, from 1.2 million to 420,000 in 2012, according to the Wildlife Conservation Society. It is estimated that at least 100,000 elephants were killed for their tusks in just three years — between 2010 and 2012. If the killings continue at this rate, scientists predict that African elephants may become extinct in much of their range in as little as 10 years.
Photo by Gavin Shire/ USFWS
The energy industry is now firmly hitched to the national security state.
This is a sneak peak from our forthcoming Spring edition. If you value dogged reporting like this, please become a subscriber today.
In August 2010, the Federal Bureau of Investigation’s Domestic Terrorism Analysis Unit distributed an intelligence bulletin to all field offices warning that environmental extremism would likely become an increasing threat to the energy industry. The eight-page document argued that, even though the industry had encountered only low-level vandalism and trespassing, recent “criminal incidents” suggested that environmental extremism was on the rise. The FBI concluded: “Environmental extremism will become a greater threat to the energy industry owing to our historical understanding that some environmental extremists have progressed from committing low-level crimes against targets to more significant crimes over time in an effort to further the environmental extremism cause.”
original photo John Duffy
Not long after the bulletin was distributed, a private security firm providing intelligence reports to the Pennsylvania Department of Homeland Security cited the FBI document in order to justify the surveillance of anti-fracking groups. The same security firm concluded that the “escalating conflict over natural gas drilling in Pennsylvania” could lead to an increase in “environmentalist activity or eco-terrorism.”
Since the 2010 FBI assessment was written, the specter of environmental extremism has been trotted out by both law enforcement and energy-industry security teams to describe a wide variety of grassroots groups opposed to the continued extraction of fossil fuels. In 2011, the Royal Canadian Mounted Police (RCMP ) published a report titled, “Environmental Criminal Extremism and Canada’s Energy Sector.” The RCMP warned that environmental extremism posed a “clear and present criminal threat” to the energy industry. While both the FBI and RCMP reports make an effort to distinguish between lawful protest and criminal activity, they often conflate the two – in the RCMP report the terms “violence” and “direct action” are used interchangeably – and suggest opposition to the energy industry will lead to extremism. (The FBI’s Counterterrorism Division declined to answer questions about the 2010 bulletin.)
Yet even as the resistance to “extreme energy projects” has grown in size and scope, there is little evidence to support the breathless warnings about “eco-terrorism.” There has been no upward spiral in criminality among environmental activists. To the contrary, arson, …more
Invention could help save hundreds of marine animals that get entangled and killed by abandoned fishing nets every year
When fishermen lose control of a fishing net or abandon a torn net at sea, the nets float around on the water surface or deep within the sea, ensnaring and killing millions of fish and marine mammals every year. Poetically called “ghost nets,” these are hardly-ethereal nets are usually made of heavy-duty nylon and hang on in the waters for years and decades causing repeated injuries and deaths of aquatic animals. Even after these nets fall to pieces, they continue to be a part of the ocean plastic pollution problem since they are ingested by birds, fish and other marine life.
Last fall, Alejandro Plasencia, Roberto Pla, and Joan Farré, a trio of student engineers in Spain invented the Rémora System to make management and recapture of ghost nets feasible. Their invention, which could help save hundreds of marine animals that get entangled and killed by abandoned fishing nets every year, was so appealing that it promptly won the James Dyson Award (an international student design award).
How does the Rémora System work? The two-part system consists of a biodegradable net attached with tags embedded with radio-frequency identification (RFID) chips, an RFID reader, and a smartphone app. The tags monitor the net's integrity and location, allowing fishermen to either find and repair the nets or declare them lost, upon which they could be collected by nonprofits or government agency involved in marine debris retrieval work.
“Those RFID tags are a game changer.” Plascencia says. The tags use low energy Bluetooth technology and have coin-sized batteries that can last up to a year. “What they do is emit a device ID over and over again, so they are perfectly reusable and recyclable,” he says.
The nets are made of a polyethylene mixed with an additive that would cause the product to start biodegrading after four years. The engineers’ hope is that with the sped up ability to biodegrade, these new nets could reduce the amount of plastic floating around the ocean.
To help put the new products in the context of everyday practices, Plascencia explains how fishermen usually use nets these days: “Each time the net is deployed the net is pulled out thanks to a power block and then carefully folded in the ship’s deck. Many sailors have to check every inch of the 36 hectares of the net to ensure …more