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Monthly Archives: May 2012

Global Energy Poverty

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Today there are 1.3 billion people across the globe without access to electricity and 2.7 billion people who do not have clean cooking facilities. The problem is spread across the developing world, but it is particularly severe in sub-Saharan Africa and developing Asia, which together account for 95% of people in energy poverty.

Without targeted global action, the International Energy Agency (IEA) estimates that in 2035 there will still be one billion people without access to electricity and 2.7 billion without access to clean cooking fuels.

For further information, download the WCA’s latest report “Coal – Energy for Sustainable Development“

May 28, 2012 | Categories: Energy access, Sustainable Development

World Coal Association Elects New Chairman

Dr Zhang Xiwu, new WCA Chairman

Dr Zhang Xiwu, new WCA Chairman

Johannesburg, 24 May 2012 – The World Coal Association, the leading global coal industry body, today announced the appointment of Dr Zhang Xiwu, Chairman of the Shenhua Group, as its new Chairman. Dr Zhang replaces outgoing Chair Fredrick D. Palmer, Senior Vice President of Peabody Energy USA with effect from 14 November 2012 after the WCA Board meeting in Brussels.

Dr Zhang Xiwu is Chairman of the Shenhua Group, the largest and most modernised coal company in China and the largest coal supplier in the world, ranked among the FT Global 500 Companies.

It is the first time in nearly 30 years that the WCA will be led by a Chinese coal producer.

Fred Palmer commented: “This is a transformational day for the WCA.  Under Dr Zhang’s leadership the WCA will establish an industry research body in Beijing and develop a new global magazine aimed at providing a platform for the global coal industry.  I have no doubt that under Dr Zhang’s leadership, the WCA will continue to serve as the global voice for coal.”

“It has been an honour to chair the WCA for the past two years. During this time the coal industry has become stronger and more united, with the WCA engaging in major energy policy debates and advancing the case for coal in sustainable development and combating energy poverty. Under the leadership of Dr Zhang and the newly elected Executive Committee, I believe the WCA has a strong team for the future that reflects the diversity of the global coal industry.”

Milton Catelin, Chief Executive of the WCA, commented: “Dr Zhang’s election as Chair is highly significant, and comes at an exciting time for WCA. His appointment reflects the growing importance of Asia and China to the coal industry, both in terms of production and consumption.”

Mr Catelin also paid tribute to the outgoing Chairman, Fred Palmer: “Fred Palmer has demonstrated great leadership and vision during his two years as Chairman of WCA, guiding the WCA work programme and interacting with global issues facing the coal industry. More specifically, Fred has been instrumental in engaging with the coal industry in China to strengthen WCA’s international reach and China’s commitment to coal on the global stage.”

On his appointment, Dr Zhang commented, “The World Coal Association is the global body representing the world’s leading coal producers. It is a great honour to be asked to chair the WCA at one of the most exciting times in the history of the industry and also of the organisation.  My wish is to serve my international colleagues in the sector, to broaden the understanding of coal’s strategic role in economic and social development, and to contribute constructively to accelerating environmental and other improvements in the industry. ”

WCA also elected a new Executive Committee at its Johannesburg AGM, comprising senior leaders from: Anglo American, BHP Billiton, Caterpillar Global Mining, China Coal, Consol Energy, Joy Global, Peabody Energy, Rio Tinto, Solid Energy and Xstrata, as well as the WCA Chief Executive in an Ex-Officio capacity.

Mr Catelin continued: “Our new leadership team brings the right mix of vision and experience to guide WCA’s new strategic direction and its growth via the WCA Strategic Research Institute.”

The full Executive Committee comprises:

Chair:

  • Dr Zhang Xiwu (Shenhua)

Vice Chairs:

  • Norman Mbazima (Anglo American)
  • An Wang (China Coal)
  • Peter Freyberg (Xstrata)

Executive Committee:

  • Manie Dreyer (BHP Billiton)
  • John Disharoon (Caterpillar)
  • Steve Winberg (Consol)
  • Mike Sutherlin (Joy Global)
  • Fred Palmer (Peabody)
  • Doug Ritchie (Rio Tinto)
  • Don Elder (Solid Energy)
  • Milton Catelin (WCA – Ex-Officio)

Notes

Shenhua Group is an integrated energy enterprise combining coal, power generation, railway transport, shipping, coal liquefaction and chemicals, and runs a complete supply chain covering production, transportation and trade. http://www.shenhuagroup.com.cn

May 25, 2012 | Categories: Coal News

Old divides re-emerge under the Durban Platform

Aleksandra Tomczak, WCA Policy Manager

Aleksandra Tomczak, WCA Policy Manager

The first week of climate talks in Bonn has finished without great progress in the key areas of the negotiations, including the 2nd commitment period under the Kyoto Protocol and the work programme for the Durban Platform.

The agreement reached in Durban to establish the Ad Hoc Working Group on the Durban Platform for Enhanced Action was expected to connect all negotiation tracks under one work stream, bringing the discussions on mitigation efforts by developed and developing countries in one forum. However, many Parties in Bonn present a different interpretation of what was decided at COP17. This confusion applies across most of the areas of negotiations. As a result the first meetings are devoted to reaching a common understanding of what had been decided in Durban.

The highlight of the last week was the first meeting of the Ad Hoc Working Group on the Durban Platform for Enhanced Action. In this Working Group, developing countries insist on the principle of common but differentiated responsibilities and make any progress contingent upon a concrete decision finalising the details and modalities of the 2nd commitment period under the Kyoto Protocol. To this the EU responds that it agreed to a second commitment period as part of a bigger package, including the agreement to launch the Durban Platform process and to reduce the so called ambition gap in the near term. The EU argues that progress needs to be made on these fronts for Kyoto 2 to go ahead. This situation is very similar to what we have seen in previous years. From that point of view not much has yet changed with the agreements reached in Durban – the negotiation process is still getting locked in-between different negotiation tracks which rely on the old distinction between developed and developing countries.

So far the EU and the USA have been unsuccessful in re-defining the definition of developing and developed countries to account for the spectacular economic growth of China. China continues to argue that according to the principle of common but differentiated responsibilities, engraved in the UN Framework Convention on Climate Change, it should be able to adopt less ambitious mitigation targets than developed economies of the EU, USA, Japan and others.  In Durban, the US delegation was strongly opposing the inclusion of reference to common but differentiated responsibilities in the final agreement. Instead it argued that mitigation responsibilities should be fair. Taking a slightly different approach, the EU has been talking about evolving common but differentiated responsibilities – a new interpretation of the old principle, in line with the expectations that by 2035 China’s historic responsibility for GHG emissions would be similar to developed countries.

China does not want to see its position redefined and, together with developing countries, attempts to prolong the old structure of negotiations as long as commitments by developed states under the Protocol second commitment period are not matched by comparable reduction commitments by developed countries that are not parties to the Protocol – like the USA. On the other hand, there is also a lot of pressure to terminate the work of both AWG-LCA and AWG KP at Doha and to start off with the new, streamlined, structure of negotiations under the Durban Platform.

At the moment there is still no answer to the question of financing of the Green Climate Fund, however, some progress can be expected in the area of the Climate Technology Centre and Network – which will be discussed in the end of May, during a separate meeting. On the inclusion of CCS in CDM, it looks like the Parties decided to go ahead with an additional report on issues related to trans-boundary projects – perhaps an opportunity for observer organisations working in this space to provide some more input into the UNFCCC thinking on CCS.

This week talks will continue, among others, on the second commitment period under the Kyoto Protocol and on the agenda for the working group dealing with the Durban Platform. Parties are hopeful that some degree of agreement will be reached on both these issues before the end of the negotiating session in Bonn as it is still uncertain whether an additional negotiating session will be organised before COP18 in Doha in the end of the year.

May 22, 2012 | Categories: Coal News

Busy agenda for the climate change conference in Bonn

Aleksandra Tomczak, WCA Policy Manager

Aleksandra Tomczak, WCA Policy Manager

On Monday negotiations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol started again in Bonn and will continue until the end of next week. It is an important and a particularly busy meeting during which;

  • the Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) will convene for the first time
  • Parties will start working on the details of the 2nd commitment period under the Kyoto Protocol, and
  • Outstanding issues related to the inclusion of CCS in CDM will be discussed.

In Durban, Parties established the ADP to deliver, by 2015, a climate change agreement which comprises all Parties and which can be operationalised by 2020. The ADP is now meeting for the first time to plan its work and to begin discussing actions that will keep global temperature increase below 2°C. All negotiations happening under UNFCCC will soon be streamlined into this one track and therefore Parties in ADP are likely to spend most of the time in Bonn discussing the work programme for this new working group.

In Durban, Parties also agreed that the 2nd commitment period under the Kyoto Protocol will begin on 1 January 2013. In Bonn they will be discussing the modalities of the 2nd commitment period, including quantified emission limitation and reduction objectives, the length of the commitment period and the issue of carry-over of assigned amount units.  The aim is to have a final agreement in Doha, in December this year. However, at the moment even the EU Member States fail to agree on all of the above issues, with a number of Central and Eastern European countries preferring a shorter commitment period and arguing in favour of carrying over assigned amount units from the 1st commitment period.

As for CCS, the Subsidiary Body on Scientific and Technological Advice (SBSTA) is now doing some more work on the issue of eligibility of cross border CCS projects and the establishment of a global reserve of certified emission reduction units for CCS project activities – the two outstanding issues from Durban which need to be further discussed.

Finally, Parties now have only six months to finalise their work under the Working Group on Long-term Cooperative Actions (AWG-LCA), established as part of the Bali Action Plan. In Bonn they will be discussing a few outstanding issues and preparing the ground for the adoption of the final text in Doha in the end of the year.

It will be interesting to see how the discussions on the 2nd commitment period progress in Bonn and whether Russia, Canada, Japan or Australia will stay out as expected. This conference should also give the first indication of how different countries would like to position themselves over the next few years when the future climate deal will be discussed. This makes it a very busy meeting for the Parties and an interesting conference for the observers.

May 17, 2012 | Categories: CCS, Climate change

Coal – Energy for Sustainable Development

World Coal Association Publishes New Energy and Sustainable Development Report

Access to energy is essential to addressing the problems that cause poverty. Without energy, people cannot access the opportunities provided by the modern world but 1.3 billion people lack access to electricity today. With coal resources existing in many developing countries, coal clearly has a major role to play in providing energy access in the form of coal-fired electricity. The World Coal Association’s (WCA) latest major report Coal – Energy for Sustainable Development looks at how coal can bring energy access to millions and support economic growth in the developing world.

“There is a huge opportunity to ensure that modern and clean coal technologies can be part of addressing the challenges of energy poverty,” said Milton Catelin, Chief Executive of the WCA. “Despite all the challenges that exist, there is nothing preventing the provision of energy to those who currently lack it and crucially, those energy needs can be met without impacting climate ambitions,” he continued.

The World Energy Outlook 2011 highlights that “coal alone accounts for more than 50% of the total on-grid additions” required to achieve the IEA’s Energy for All case. This clearly demonstrates coal’s fundamental role in supporting modern base load electricity. As nations develop, they seek secure, reliable and affordable sources of energy to strengthen and build their economies – coal is a logical choice in many of these countries because it is widely available, safe, reliable and relatively low cost. Many developing countries have significant, untapped coal reserves.

Coal – Energy for Sustainable Development examines the global energy challenge, coal’s role in clean energy and coal and sustainable development. The WCA also identifies three key recommendations which are necessary to deliver energy access for all:

  • Ambitious global energy access targets: an ambitious global energy access target must be adopted to support the eradication of poverty, the growth of businesses and industries and true economic and social development.
  • Rapid deployment of all advanced coal technologies: National governments and international institutions must support the rapid deployment of all advanced coal technologies, particularly improved efficiencies at power stations and CCS.
  • Financial backing: International financial institutions must adopt policies that will allow national governments to determine which energy solutions are appropriate to their needs and support those decisions with the appropriate financial backing.

Mr Catelin commented, “Delivering sustainable development will mean dealing with several issues at once. Ensuring access to electricity and supporting economic growth are essential to eradicating human poverty and supporting human development. At the same time, we have to address global CO2 emissions to mitigate the impacts of climate change as well as conserving biodiversity. It is only after global consideration of all these issues together that there will be any significant progress towards providing energy access for all.”

Download a copy of the report Coal – Energy for Sustainable Development

To request a hard copy of the report, please email info@worldcoal.org


May 16, 2012 | Categories: Coal News, Energy access, Sustainable Development, WCA at Rio+20

Coal Matters – new fact sheets available

WCA has produced a series of fact sheets entitled Coal Matters. The three fact sheets provide a general overview of the role of coal in global energy supply and electricity generation, supported by key facts and statistics.

Coal Matters 1: Coal in the global energy supply

This fact sheet provides an overview of the role that coal has played in supplying primary energy over the last decade and the role it can play in the future under different energy demand scenarios. It also looks into the role of coal in various industry sectors, such as steel production and manufacturing industries.

Coal Matters 2: Global availability of coal

This fact sheet provides up-to-date statistics on global coal reserves and resources, as well as their international distribution and international coal trade patterns.

Coal Matters 3: Coal and electricity generation

This fact sheet provides a summary of the current role of coal in electricity generation across countries and continents, and the potential of advanced coal technologies and CCS in reducing global GHG emissions.

To request a hard copy of the fact sheets, please complete the WCA Publications  order form.

May 14, 2012 | Categories: Coal News, Energy access

World Coal Association joins the UNEP Global Mercury Partnership

The World Coal Association (WCA) has been formally accepted into the UN Environment Programme Global Mercury Partnership.

The overall goal of the UNEP Global Mercury Partnership is to protect human health and the global environment from the release of mercury and its compounds by minimising and, where feasible, eliminating global, anthropogenic mercury releases to air, water and land. The WCA is pleased to join 31 other organisations, including governments, intergovernmental organisations, non-governmental organisations and academic institutions in the Partnership.

The WCA Policy Team will contribute to the work of the UNEP Mercury Partnership by leveraging its Members’ expertise in the area of controlling mercury emissions from coal combustion. In addition, WCA will be actively involved in supporting UN negotiations on mercury with scientific evidence and expertise on mercury mitigation technologies used in coal combustion processes.

Milton Catelin, WCA Chief Executive said, “WCA is delighted to be accepted into the Global Mercury Partnership. Our Membership comprises some of the world’s largest coal-producing companies and our participation in the Partnership will enable the coal industry to support the ultimate goal of protecting human health and global environment from releases of mercury.

“There is a great choice of technologies which can be used to address the challenge of mercury emissions, which are already in use in most newly-built coal-fired power stations and Mercury removal rates can be as high as 90% when the most effective technologies are applied.”

WCA will be attending the next UNEP Global Mercury Partnership meeting in St Petersburg on May 24 2012.

For further information about WCA’s participation in this programme, please contact Aleksandra Tomczak, Policy Manager, on 020 7851 0052 or email atomczak@worldcoal.org.

May 8, 2012 | Categories: Coal News, WCA
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