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  • China and Iran in gas deal

    TEHRAN, Feb 27 (Reuters) – The signing of a contract with China National Offshore Oil Corp (CNOOC) to develop Iran’s northern Pars gas field has been postponed to the "near future", an Iranian official said on Wednesday.

    The deal was first announced in late 2006 but signing it has been delayed in the past. An Oil Ministry news report said on Tuesday the deal was worth $16 billion, lower than the $20 billion previously reported.

    "The contract signing has been postponed to the near future. The reason why it was postponed today was because (Oil Minister Gholamhossein) Nozari could not take part," a spokesman for Pars Oil and Gas Company, told Reuters. He did not elaborate.

    The deal is to be signed between CNOOC, which leads China’s fledgling LNG industry, and Pars Oil and Gas Company. CNOOC is the parent of Hong Kong and New York-listed CNOOC Ltd.

    Iran plans to export the northern Pars production in the form of liquefied natural gas (LNG).

    Northern Pars field contains 80 trillion cubic feet of gas and said each phase of development could have the capacity to produce 1.2 billion cubic feet per day, the Oil Ministry’s news Web site previously reported.

    China has in recent years expanded commercial ties with the Islamic Republic and has been reluctant to impose tough economic sanctions on Iran, China’s third-largest supplier of oil.

    China’s Sinopec Group, parent of Sinopec Corp. , signed a deal in December to develop Iran’s huge Yadavaran oilfield.

    Iran has the world’s second-biggest crude reserves after Saudi Arabia and the second-largest gas reserves behind Russia. Although a major oil exporter, the OPEC member has been slow to expand gas exports because of sanctions and has no LNG plants. (Reporting by Hashem Kalantari; editing by James Jukwey)

  • UN rations food aid

    WFP officials hope the cuts can be avoided, but warned that the agency’s budget requirements were rising by several million dollars a week because of climbing food prices.

    The WFP crisis talks come as the body sees the emergence of a “new area of hunger” in developing countries where even middle-class, urban people are being “priced out of the food market” because of rising food prices.

    The warning suggests that the price jump in agricultural commodities – such as wheat, corn, rice and soyabeans – is having a wider impact than thought, hitting countries that have previously largely escaped hunger.

    “We are seeing a new face of hunger in which people are being priced out of the food market,” said Ms Sheeran.

    Hunger is now “affecting a wide range of countries”, she said, pointing to Indonesia, Yemen and Mexico. “Situations that were previously not urgent – they are now.”

    The main focus of the WFP to date has been to provide aid in areas where food was unavailable. But the programme now faces having to help countries where the price of food, rather than shortages, is the problem.

    Ms Sheeran said that in response to rising food costs, families in developing countries were moving in some cases from three meals a day to just one, or dropping a diverse diet to rely on one staple food.

    In response to increasing food prices, Egypt has widened its food rationing system for the first time in two decades while Pakistan has reintroduced a ration card system that was abandoned in the mid-1980s.

    Countries such as China and Russia are imposing price controls while others, such as Argentina and Vietnam, are enforcing foreign sales taxes or export bans. Importing countries are lowering their tariffs.

    Food prices are rising on a mix of strong demand from developing countries; a rising global population; more frequent floods and droughts caused by climate change; and the biofuel industry’s appetite for grains, analysts say. Soyabean prices on Friday hit an all-time high of $14.22 a bushel while corn prices jumped to a fresh 12-year high of $5.25 a bushel.

    The price of rice and wheat has doubled in the past year while freight costs have also increased sharply on the back of rising fuel prices.

    The world’s poor countries will have to pay 35 per cent more for their cereals imports, taking the total cost to a record $33.1bn (in the year to July 2008, even as their food purchases fall 2 per cent, according to the UN’s Food and Agriculture Organisation.

    The US Department of Agriculture warned this week that high agricultural commodities prices would continue for at least the next two to three years.

  • US warns of food vs fuel wars

    Larry Pope, chief executive of Smithfield Foods, the largest US pork processor, warned delegates of a wave of “real food inflation” just at the time central banks were under pressure to cut interest rates.

    “I think we need to tell the American consumer that [prices] are going up,” he said. “We’re seeing cost increases that we’ve never seen in our business.”

    The comments highlighted one of the conference’s main concerns – that rising agricultural prices have reached a stage at which the impact will be felt not only on fresh food but will also filter through the supply chain and raise the cost of processed food.

    Tom Knutzen, chief executive of Danisco, one of the world’s largest ingredients companies, said rising vegetable oil costs made it more expensive to produce preservatives, colourings and flavourings.

    “Our products are based on vegetable oil. “Our input cost has gone up so we are increasing prices,” he said in an interview in Brussels. He added that preservatives, colourings and flavourings made up only 1-2 per cent of the cost of food but there would be a ripple effect as they were present in almost all the food sold worldwide.

    US agriculture officials forecast that food inflation will rise this year at an annual rate of 3-4 per cent, warning that the risks were skewed to the upside. Last year, food inflation rose 4 per cent, the highest annual rate since 1990.

    Joseph Glauber, the USDA’s chief economist, said in an interview that until now some companies had absorbed the rise in commodities prices, but that trend was about to change.

    He said that wheat prices had previously moved from $3 to $5 a bushel without significant pain for consumers. “But now the wheat price has jumped to nearly $20 a bushel. These large increases will show up [in consumer prices].”

    Some people hope a slowdown in the US or global economy would push down agricultural commodities prices. But Mr Glauber said that would have a limited impact on agriculture commodities prices. “I am more concerned about higher prices than lower prices.”

    However, Simon Johnson, chief economist at the International Monetary Fund, said in an interview that for most agricultural commodities and metal markets the global slowdown would push prices down.

    “The commodities market believes in the decoupling of developing countries’ growth,” Mr Johnson said. “The IMF does not believe in decoupling to that extent.”

    But even if commodities prices do slow down, other forces could still push consumer prices higher, food industry executives said.

    Companies until now have moderated consumer price increases thanks to large inventories and financial hedges in the commodities market futures. But during the course of this year those mitigating factors would vanish, executives said.

    “The final result will be higher prices,” Mr Lapp said. The global economy is “at the beginning of a period in which consumer will face higher food prices”.

    Additional reporting by Andy Bounds in Brussels

  • Off grid solutions for remote poor

    Planners and policy makers have long pondered how best to supply light and power to remote areas of developing countries, where some 1.6 billion people — about a quarter of the world’s population — still live without electricity. The usual solution is to build out centralized power systems, or extend the grid. But such capital-intensive projects present huge challenges for poorer nations, even when foreign aid is involved. On top of servicing debt, "you have to have a system where people pay their bills. You need functional governments," says Russell Sturm, leader of the Sustainable Energy Team at International Finance Corp., the World Bank’s private-sector lending arm.

    New approaches are gaining favor that are inexpensive, safe and don’t rely on big utilities or their grids. Aid agencies, nonprofits, environmentalists and start-ups all are involved in initiatives to promote "off-grid" power-generation using renewable resources and other environmentally friendly technology.

    The United Nations Development Program, for one, is implementing 153 renewable-energy projects around the world with funding totaling some $556 million. The program has awarded $18 million in small grants of up to $50,000 to communities operating about 820 small-scale renewable energy projects. These include solar-powered water desalination in Mauritius; wind energy for water pumping in Egypt; and micro-hydroelectric plants, harnessing the energy of nearby rivers, to electrify homes and schools in the Dominican Republic.

    Elsewhere, Western environmental groups are helping to create off-grid homes, often with electricity
    generated by solar panels or wind turbines.

    Private companies, meanwhile, are interested in the Third World as a potential market for inexpensive, energy-efficient appliances such as solar-powered lights and hand-crank radios. Some are teaming up with nonprofits and government agencies to get their products in the hands of consumers. Cosmos Ignite, for example, charges $40 for its solar-powered MightyLights, which is more cash than most poor Indians usually have on hand. A several-month supply of kerosene would cost about the same, though, and Cosmos Ignite says its lights last for years. That’s why nonprofit microlenders and Indian government agencies are stepping in to help with such purchases.

    In the Philippines, the U.S. Agency for International Development has spearheaded a drive since 2001 to use solar cells and micro-hydro power to electrify hundreds of remote rural communities on the conflict-wracked island of Mindanao. So far, the Alliance for Mindanao Off-grid Renewable Energy, or AMORE, has electrified 413 villages, 320 community centers, 145 schools, and installed 319 streetlights. USAID says the group plans to light up 520 villages by 2009.

    Fighting between Philippine forces and Muslim militant groups, including the Al Qaeda-linked Abu Sayyaf, for years stymied government efforts to expand the island’s electric grid to large areas. At the same time, the widespread darkness gave the militants more room in which to maneuver.

    "Kerosene was hard to get, so the villages weren’t lighted at night," says Calista Downey, the officer of USAID’s Philippine desk. "Abu Sayyaf and other rebel groups moved about in the darkness. Lighted areas were always safer."

    Electricity also has given the local economy a big shot in the arm. Fishermen now have a few more hours of light in which to mend their nets. Markets stay open longer. Children have more light to do their homework. And security has improved. "Perhaps more important than having light, when the villages see their life improving, they’re less likely to give refuge to insurgents," Ms. Downey says.

    AMORE, which comprises USAID, the Philippine government, the Atlanta-based power company Mirant Corp., and local authorities, trains locals to operate the power-generating systems. The locals decide who gets to use the power.

    Initiatives such as AMORE are getting a boost from the big advances now under way in the production of solar-, wind- and hydro-power technology. "The prices for [solar-energy’s] photovoltaic cells and wind turbines keep coming down," says Gordon Weynand, a USAID expert on renewable energy who is based in Washington, D.C.

    That’s also the case with LED technology. While LED products still cost more to produce than conventional lighting, they last longer, produce more light and use very little energy. Long used in automobile rear-window, brake lights, and in the infrared beams of television remote controls, LEDs now are so powerful they can be used to create ambient lighting for a whole room, like the lights Cosmos Ignite makes.

    Mr. Scott, who now lives in London, and who teamed up with Indian entrepreneur Amir Chugh to form Cosmos Ignite, says the company’s MightyLight LED lamp is now three to four times brighter than it was four years ago. "Most other lighting technologies are static, but LEDs will continue to improve," he says. That’s made a big difference to his business model. "We can now offer more light for the same wattage," he says.

    In addition to running on solar power, LEDs can be recharged using hand cranks or pedal power. Freeplay Energy PLC, a London-based company, pioneered a radio operated with a hand crank that has sold well throughout Africa, and it is now applying the same technology to a range of LED lights for the poor.

    There are many small, high-tech start-ups working on the technology, says Mr. Sturm of the World Bank’s IFC. "Refugees from the dot-com bust," he calls them.

    Some of the biggest names in the lighting business are getting interested in this market, too, such as Philips Electronics NV of the Netherlands. In 2005, Philips launched a pilot project in India aimed at bringing affordable, energy-efficient lighting to the poor, using rechargeable, portable lanterns and hand-cranked LED flashlights. Company spokeswoman Santa van der Laarse adds that Philips expects the falling cost of producing LEDs to make such products increasingly affordable for Third World customers over the next few years.

    The IFC is interested in this market as well. It sees its mission as helping to disseminate such products in the developing world by educating consumers and helping the companies stitch together supply chains. Last year it unveiled its Lighting Africa initiative, a plan to help provide inexpensive, safe and clean lighting to 250 million people in sub-Saharan Africa by 2030. As part of that initiative, it launched a competition to design low-cost, environmentally friendly lighting products tailored to the local market: Some 500 lighting companies, suppliers and distributors have expressed an interest, Mr. Sturm says, including big names like Philips, and smaller operators like Cosmos Ignite, too.

    The biggest enemy of off-grid technologies, meanwhile, could be their rapid success. Rising demand is leading to serious shortages of equipment. "It’s rare that you can get photovoltaic cells off the shelf, and on wind turbines you’re sometimes looking at a year’s wait," says USAID’s Mr. Weynand. "It affects all thedonors. You have to get in the queue like everyone else."

    Originally published in The Wall Street Journal , 11 February 2008

  • Warmer World May Mean Less Fish

    "The worst concentration of cumulative impacts of climate change with existing pressures of over-harvest, bottom trawling, invasive species infestations, coastal development and pollution appear to be concentrated in 10-15 per cent of the oceans," says the report.

     

    This 10-15 per cent of the oceans is far higher than had previously been supposed and is "concurrent with today’s most important fishing grounds" including the estimated 7.5 per cent deemed to be the most economically valuable fishing areas of the world, it adds.

     

    The report, the work of UNEP scientists in collaboration with universities and institutes in Europe and the United States, was launched today during UNEP’s Governing Council/Global Ministerial Environment Forum taking place in Monaco.

     

    It is the largest gathering of environment ministers since the climate convention conference in Indonesia just over two months ago where governments agreed the Bali Road Map aimed at delivering a deep and decisive climate regime for post 2012.

     

    Achim Steiner, UN Under-Secretary General and UNEP Executive Director, said:" The theme of the Governing Council is ‘Mobilizing Finance for the Climate Challenge for trillions of dollars can flow into climate-friendly energies and technologies if government’s can provide the right kind of enabling market mechanisms and fiscal incentives".

     

    "It is sometimes important to remind ourselves why we need to accelerate these transformations towards a Green Economy. In Dead Water has uniquely mapped the impact of several damaging and persistent stresses on fisheries. It also lays on top of these the likely impacts of climate change from dramatic alternations in ocean circulation affecting perhaps a three quarter of key fishing grounds up to the emerging concern of ocean acidification," said Mr Steiner.

     

    "Climate change threatens coastal infrastructure, food and water supplies and the health of people across the world. It is clear from this report and others that it will add significantly to pressures on fish stocks. This is as much a development and economic issue as it is an environmental one. Millions of people including many in developing countries derive their livelihoods from fishing while around 2.6 billion people get their protein from seafood," he said.

     

    The report comes in wake of findings issued last week by a team led by the National Center for Ecological Analysis and Synthesis which estimates that over 40 per cent of the world’s oceans have been heavily impacted by humans and that only four per cent remain relatively pristine.

     

    It also comes amid concern that sea bird chicks in the North Sea may be being choked after being fed on a diet of snake pipefish-a very bony species. Over the past five years snake pipefish numbers have boomed a meeting of the Zoological Society in London was told last week.

     

    One reason for their sharp increase in numbers might be changes in ocean currents bringing the fish into North Sea waters, the experts suggest.

     

    The new UNEP report has been compiled by researchers including ones at UNEP’s GRID Arendal centre; UNEP’s World Conservation Monitoring Centre and UNEP’s Division of Early Warning and Assessment.

     

    It draws on a wide range of new and emerging science including the latest assessment report of the Intergovernmental Panel on Climate Change-the 2,000 plus panel of scientists established by UNEP and the World Meteorological Organisation.

     

    Other contributions have come from organizations and institutions including the University of Plymouth; the Norwegian Institute for Nature Research; the University of British Columbia; the Institute of Zoology; Princeton University; the University of Barcelona and the Sustainable Europe Research Institute.

     

    In Dead Water Key Findings

    – Half the world’s catch is caught along Continental shelves in an area of less than 7.5 per cent of the globe’s seas and oceans.

    – An area of 10-15 per cent of the world’s seas and oceans cover most of the commercial fishing grounds.

    – 80 per cent to 100 per cent of the world’s coral reefs may suffer annual bleaching events by 2080 under global warming scenarios.

    – Those at particular risk are in the Western Pacific; the Indian Ocean; the Persian Gulf; the Middle East and in the Caribbean

    – Over 90 per cent of the world’s temperate and tropical coasts will be heavily impacted by 2050. Over 80 per cent of marine pollution comes from the land. Marine areas at particular risk of increased pollution are Southeast and East Asia.

    – Increasing concentrations of C02 in the atmosphere are likely to be mirrored by increasing acidification of the marine environment.

    – Increasing acidification may reduce the availability of calcium carbonates in sea water, including a key one known as aragonite which is used by a variety of organisms for shell-building.

    – Cold-water and deep water corals could be affected by acidification by 2050 and shell-building organisms throughout the Southern Ocean and into the sub-Arctic Pacific Ocean by 2100.

    – Climate change may slow down the ocean thermohaline circulation and thus the continental shelf "flushing and cleaning" mechanisms, known as dense shelf water cascading,over the next 100 years. These processes are crucial to water quality and nutrient cycling and deep water production in at least 75 per cent of the world’s major fishing grounds.

     

    – Dead zones, area of de-oxygenated water, are increasing as a result of pollution from urban and agriculture areas. There are an estimated 200 temporary or permanent ‘dead zones’ up from around 150 in 2003.

    – Up to 80 per cent of the world’s primary fish catch species are exploited beyond or close to their harvesting capacity. Advances in technology, alongside subsidies, means the world’s fishing capacity is 2.5 times bigger that that needed to sustainably harvest fisheries.

    – Bottom trawling is among the most damaging and unsustainable fishing practices at the scales often seen today

    – Alien invasive species, which can out-compete and dislodge native ones, are increasingly associated with the polluted, overharvested and damaged fishing grounds. The report shows that the concentration of ‘aliens’ matches with some precision the world’s major shipping routes.

     

     

    Christian Nellemann, who headed up the rapid response team that compiled the report, said: "We are already seeing evidence from a number of studies that increasing sea temperatures are causing changes in the distribution of marine life".

     

    Some of these changes are being found from the Continuous Plankton Recorder survey of the Northeast Atlantic.

     

    Warmer water copepod species or crustaceans have moved northward by around 1,000km during the later half of the 20th century with the patterns continuing into the 21st century.

     

    "Further evidence of this warming signal is seen in the appearance of a Pacific planktonic plant in the Northwest Atlantic for this first time in 800,000 years by transfer across the top of Canada due to the rapid melting of the Arctic in 1998," said Dr. Nellemann. "We are getting more and more alarming signals of dramatic changes in the oceans. It is like turning a big tanker around. Our ability to change course and reduce emissions in the near future will be paramount to success".

     

    The link between healthy and productive fishing grounds and ocean circulation or ‘dense shelf water cascading’ is in some ways only now emerging.

     

    Three years ago the Hotspot Ecosystem Research on the Margins of European Seas of which UNEP is part, documented such a phenomenon in the Gulf of Lions in the north-western Mediterranean.

     

    A quantity of water equal to two years-worth of the river discharge from all rivers flowing into the Mediterranean is, in four months, transported from the Gulf of Lions to the deep Western Mediterranean via the Cap de Creyus canyon.

     

    It has a critical impact on the population of the heavily harvested deep sea shrimp Aristeus antennatus, the crevette rouge, by bringing food that in turn triggers a sharp increase in young shrimp resulting in plentiful catches three to five years after the ‘cascading’ event.

    "Imagine what will happen if climate change slows down or stops these natural food transport and "flushing" effects in waters that are often already polluted, heavily fished, damaged and stressed", said Dr. Nellemann. "We are gambling with our food supply".

     

    Stefan Hain of UNEP’s World Conservation Monitoring Centre, said it was critical that existing stresses were also addressed too in order to conserve fish stocks and coral reefs in a climate constrained world.

     

    He said there was growing evidence that coral reefs recover from bleaching better in cleaner, less polluted waters.

     

    Dr Hain cited monitoring of corals around the main Seychelles island of Mahé which were among corals world-wide that suffered from the high sea surface temperatures of the late 1990s. Here coral reefs recovery rates have varied between five to 70 per cent.

    "Coral reefs recovering faster are generally those living in Marine Protected Areas and coastal waters where the levels of pollution, dredging and other kinds of human-induced disturbance are considered low," he said.

  • Green Woolies to change fridges, lights

    ALL new Woolworths supermarkets will conform to stringent environmental standards and most old stores will be upgraded after the success of the company’s pioneer "green supermarket" in Rouse Hill, Sydney.

    Chronic leaking of potent greenhouse gas from supermarket fridges, as well as high energy consumption, led to the changes, Woolworths has confirmed.

    The Natural Refrigerants Transition Board, which has received government funding to examine ways of reducing greenhouse emissions from refrigerants, estimated that leaks from fridges in Woolworths stores nationally would be equivalent to the annual emissions of 240,000 cars.

    Other supermarket chains had similar leakage levels, the board said, but these could be greatly reduced by switching gases.

    Keeping produce cool accounts for 48 per cent of Woolworths’ total carbon emissions, lighting for 21 per cent and air-conditioning 19 per cent, the company said.

    Changes included in new supermarkets will include "cascade" cooling systems for fridges, in which some of the most harmful gases are replaced by the safer carbon dioxide, while better fans and lights would be installed.

    Ben Cubby