China Announces “Carbon Intensity” Target

This deal worked exactly as it was reported it would last week.  Yesterday, the Obama Administration announced a target, plus the fact that he would be attending Copenhagen towards the beginning.  Now, China has followed suit by announcing an emissions intensity reduction target of 40-45%.  This is the amount of carbon dioxide emitted for each unit of GDP, so China is looking to nearly halve that.  Because of a rapidly growing GDP, this reduction still ensures that China’s emissions will rise for awhile, but that as China grows it will grow much more sustainably than it currently is, or was.  I expect China will surpass this target anyways, as they’re already furiously investing in renewable energy.  For an excellent analysis of what this target really means, check out this blog post by energy policy analysis Julian Wong.  Notable excerpts are posted below.

“Beijing said it would aim to reduce its “carbon intensity” by 40-45% by the year 2020, compared with 2005 levels.  Carbon intensity, China’s preferred measurement, is the amount of carbon dioxide emitted for each unit of GDP.  But our correspondent says it does not mean China’s overall levels of carbon dioxide will start falling.  Its economy is still growing and is mostly fuelled by polluting coal, says the BBC’s Quentin Sommerville in Beijing.  It will be at least a couple of decades before China’s emissions peak, so it is likely to remain the largest polluter for some time to come, he adds.”

“Beijing also said on Thursday that Chinese Prime Minister Wen Jiabao would attend the talks.  That confirmation came a day after US President Barack Obama said he would go to the summit.  The US – the second largest polluter after China – said President Obama would offer to cut US emissions by 17% from 2005 levels by 2020.  But the offer was less than hoped for by the EU, Japan and UN scientists – most other countries’ targets are given in comparison with 1990 figures.  BBC environment correspondent Richard Black says that on that basis the US figure amounts to just a few percentage points, as its emissions have risen by about 15% since 1990.  This is much less than the EU’s pledge of a 20% cut over the same period, or a 30% cut if there is a global deal; and much less than the 25-40% figure that developing countries are demanding.”

“China is showing that it wants to play a leading role in tackling global climate change, he adds.  It has already made a pledge to increase its renewable energy targets to grow more forests and develop green industries.  Yang Ailun, Greenpeace China’s climate campaign manager, told AFP news agency: “This is definitely a very positive step China is taking, but we think China can do more than this.”

UMD for Clean Energy in the Washington Post

I already had a post last week where the Diamondback covered our presentation to the College Park City Council, and on Thanksgiving day our proposal for tax credits for green businesses has made it into the Washington Post and the Gazette.

U-Md. students urge College Park to create tax credit for ‘green’ firms

By David Hill

Representatives from UMD for Clean Energy presented their plan to the College Park City Council at its Nov. 17 work session. Their proposal would give property tax breaks to businesses that provide energy-efficient products and services, as well as those that reduce their own carbon footprint.

It could take several years to implement, and city officials appear willing to listen. But the plan faces several obstacles, one of which is that it is not currently legal.

“I think it’s a good idea,” said Councilman Patrick Wojahn (Dist. 1). “We’d like to utilize some version of it and we’re working on a fix right now with the state.”

Municipalities in Maryland are not allowed to offer tax breaks to businesses based on whether they are environmentally friendly, or “green.” Federal and state governments have done it for years — mostly to reduce energy use and reliance on nonrenewable sources — and counties in Maryland have had the right since May.

Nonetheless, the students said that with time and legislation, the proposed city-level tax break would make College Park a popular destination for a growing number of energy-efficient organizations.

“The renewable energy industry is expanding,” said Matt Dernoga, who met with the council alongside fellow student Hilary Staver. “We’re going to have to invest and shift away from conventional energy sources.”

Their proposal would call for a two-tier system. Tier 1 businesses — those that specialize in energy-efficient products and services — would receive a tax credit. A smaller credit would go to Tier 2 businesses in non-”green” sectors that adopt eco-friendly practices such as recycling and improving storm-water management.

Edmonston-based Community Forklift, which collects and sells used building materials, and Beltsville-based solar energy provider SunEdison are examples of businesses that would qualify for Tier 1. Staver said the city has few, if any, Tier 1 qualifiers of its own and that adding new ones would have a positive impact.

The students did not suggest a specific amount for the credit.

“[If residents] see that these companies are taking steps to reduce environmental impact … then it makes people think more about it in their lives,” Staver said. “It helps set an example for the public.”

While new Tier 1 businesses also would boost the city’s revenue, Mayor Stephen Brayman expressed concern over the tax breaks existing city businesses could receive. He said that in difficult economic times, lower taxes for Tier 2 operations could leave residents to foot the bill.

“If residents are paying more taxes to give businesses tax breaks, that might not be popular,” Brayman said, adding that the city’s budget likely will shrink in 2011 and 2012 due to the current economic decline. “The city doesn’t really have any money to give up.”

The council and student group said they would be willing to work toward a compromise. City officials currently lobbying the state for permission to offer a revitalization tax credit to attract new businesses, and Wojahn said they could incorporate language that appeals specifically to green businesses.

“We could probably adopt some parts of [the students'] proposal,” he said. “It’s becoming more and more important to attract these types of businesses.”