Seize the Energy Opportunity

See, the glass is half-full…

From Jordan Times today:

Seize the energy opportunity 

By Anders Eldrup

All eyes are now on Copenhagen, where the UN Climate Change Conference will take place in December. But there is another reason to look to Denmark. In order to meet the challenges of climate change and energy security, all actors must focus on the opportunities that lie in the broad and fundamental change that society must undergo. The Danish energy sector has already once turned a huge challenge into an opportunity.

When the first oil crisis hit in 1973, Denmark was 90 per cent dependent on oil and over 90 per cent of that oil was imported. Such a situation was not sustainable. A national consensus emerged from the crisis that Denmark’s energy sector had to be transformed in order to secure future energy supply.

So Denmark started exploring for oil and gas in the Danish part of the North Sea. Coal and gas replaced oil in power plants and major programmes to improve energy efficiency were launched. Today, Danish power plants are among the world’s most efficient with efficiency rates around 45 per cent. If all power plants had such efficiency levels, global power plant carbon dioxide emissions could be reduced by 30 per cent. Many plants were converted to allow them to produce power and district heating at the same time. This elevated power plant efficiency to 94 per cent. Danish energy consumption has remained almost stable since 1981 due to such initiatives while GDP has risen by 70 per cent.

Energy producers also started to use large quantities of carbon dioxide-neutral biomass on power plants. Finally, Denmark started to develop wind energy, which today accounts for 20 per cent of Denmark’s power production.

Securing reliable energy supplies was the key energy challenge of the 20th century. It will remain a major challenge in the 21st century as global population grows and modern life spreads to more and more people. The other big energy challenge is climate change. Add the two global challenges, and you have a Gordian knot: We have to produce much more energy with much less carbon dioxide.

This is a challenge, but it is also a huge business opportunity. If seized, it can spark an unprecedented wave of innovation that can fuel economic growth. Energy companies are among the best placed to seize the new business opportunities exactly because the energy sector is the most exposed to the global challenges.

One clear business opportunity lies in replacing fossil fuels with carbon dioxide-neutral energy. Clear emissions reduction targets are necessary to drive this development. DONG Energy has set a target to reduce the emissions from power and heat production with 85 per cent by 2040 and with 50 per cent by 2020. The target is to be achieved through expanding wind power and by replacing coal with biomass on power plants.

But climate change is not limited to the energy sector. Agriculture, forestry, transport, buildings and industry also contribute heavily to global warming. Greenhouse gasses must also be reduced in these sectors – in this quest the energy company can be a strategic partner. The business opportunities for energy producers lie in low-carbon energy. They also lie in pursuing a new role, where the energy company engages with actors from all sectors of society to reduce emissions by finding new ways of combining what is already known.

In agriculture and forestry the energy company can find different types of biomass that can be used in energy production. Today, wood chips, wood pellets and half of the straw produced in Danish agriculture are used to produce power and heat at Danish power plants.

In transportation, the energy company can combine enzymes with biomass and produce a carbon-neutral alternative to oil. This is what DONG Energy is doing on one of the world’s first demonstration plant for second generation bioethanol, the Inbicon Biomass Refinery in Denmark. The result is second generation bioethanol produced from residuals from agriculture such as straw.

Similarly in transport, the fast development of battery technology offers new opportunities. If you take a battery and put four wheels on it you have an electric vehicle that can serve as a much-needed storage for wind energy. This paves the way for more wind energy in the energy system. DONG Energy has invested in Project Better Place Denmark and is contributing to the development of a Danish infrastructure for electric vehicles.

In buildings and industry there are opportunities in changing the way energy is used. Traditionally energy production has followed energy consumption. When private or industry consumers chose to switch on more light, power plants simply had to work harder. This picture is changing.

Every day more intermittent wind energy is deployed and in the not so distant future we will also see much more local energy production – for example from solar panels on buildings. Gradually energy production is becoming more difficult to control. Energy consumption will consequently have to take place when energy production is high. It is now the use of energy in industry and buildings that will have to be controlled. A smart grid will provide for the communications channel through which appliances in household and industry will know when to switch on and off. By pursuing such new business opportunities the energy company can contribute to untying the Gordian knot and produce low-carbon energy and maintain energy security at the same time.

Rightly so, the global challenges from climate change and energy security dwarf the change Denmark went through in scope and in urgency. Nevertheless, the Danish answer to the first oil crisis, which led to massive innovation in energy technology, can serve to inspire to act. What seems an almost insurmountable challenge is in fact a business opportunity waiting to be seized.

The writer is CEO of Dong Energy. ©Project Syndicate, 2009. www.project-syndicate.org

Way to Copenhagen

Denmark being the host for the Climate change summit in Copenhagen in December I have been asked to give a brief overview of progress and expectations for a new climate agreement. 

But before doing that I would like to stress one thing that has become more and more evident to me here in Jordan as we are progressing towards that summit.

It can be stated very simply: Man made climate change is a FACT. The science is conclusive.

Unfortunately, in this part of the world among many citizens and some political circles, climate change is either considered as not an urgent problem or considered as a western invented conspiracy to slow down the developing world.

Regrettably, it is much worse. Climate change is the challenge of the century.

It is perfectly understandable that in this region that faces so many diverse problems, another difficult issue to deal with is very unwelcome. None the less, climate change is also a security issue. When climate change puts regional food security and regional water supply at risk we will have a very serious security issue at hand. And when this happens – it is probably too late to do something about it.

Two reports: The first “Rising Temperatures – Rising Tensions” from this spring and a second report from Arab Forum for Environment and Development (AFED) to be released in two weeks in Beirut will make this point very clear. Climate change is important – and in particular to this part of the world.

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So how are we progressing towards a deal in Copenhagen? Two days ago the final UN-negotiation round before Copenhagen concluded in Barcelona. The prospect for a deal in Copenhagen is still there. But the negotiations have progressed much slower than what we had hoped for.

A lot of questions – some political, some technical – are left for Copenhagen.

It now seems almost impossible to be able to conclude a legally binding treaty – with all its nitty-gritty – in Copenhagen. What seems to be possible is a political agreement about the substance in a new climate deal. This agreement will according to a specific deadline be transferred into a legal, global text soon after the COP15 summit.

What now is needed is active global involvement from the highest political level in order to get decisions on the political substance of a new climate deal. Even in the absence of formal UN-negotiations the next four weeks will not run idle.

The major economies will meet; some bilateral summits – not least a crucial one between USA and China – will take place. And there will be various meetings in other formats with the sole purpose of paving the way for a deal in Copenhagen.

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Let me now turn to the issue on how we from the Danish side as host look at what is at stake in Copenhagen in December.

At COP15 in Copenhagen we have a choice to make. The moment will be in our hands. We can either seize it – or we can let it go.

Whatever we choose – there is no doubt that future generations will judge us on our ability to make COP15 a decisive moment of change.

We have a responsibility to the future generations as well as towards ourselves. A responsibility to seal the deal in Copenhagen. And deliver a viable solution to one of the greatest challenges of our time.

In Copenhagen we must provide a fundamental response to climate change.

We should initiate a strong global cooperation to transform the world economy. And promote low carbon economic growth and sustainable development.

Our success depends on our ability to reach an agreement that is consistent with science.

In practical terms this means an agreement that limits the rise in global temperature to a maximum of 2 degrees Celsius.

Furthermore – the deal must be based on the principle of equity. It must support, not delay the fight against poverty. It shall be practicable and promote the vision of sustainable development. And it shall send a clear signal to industry to engage in the transition to a low carbon economy.

We have already come a long way. By now many countries have developed far reaching national emission reduction policies and low carbon development plans. And many others are on their way.

This is indeed encouraging. We are all taking action. We are all realizing that the green agenda is both vital to combat global warming and at the same time part of the response to the global economic crisis.

However – as we act, the challenge is also mounting. If we pool all our plans – if we sum up all the national emission reductions under way – the figures do not add up.

We have to acknowledge this harsh fact. And we have to face the only natural consequence: That we have to do more.

Jointly, we can achieve more than the sum of our individual contributions. That is why we need a global agreement.

Allow me to share with you the Danish vision for a global agreement in Copenhagen.

It should be ambitious. It should be binding. It should correspond to the 2 degrees scenario. And it should constitute the overall political framework for future global efforts against climate change – based on the following 5 key elements:

1) First – Industrialized countries will have to commit to substantial reduction targets in the perspective of 80 pct reduction by 2050. At the same time they must offer binding reduction commitments in the near and medium term.

2) Second – Developing countries should commit to reduce growth in CO2 emissions through unilateral and international supported activities. And we should invite developing countries to estimate indicative figures for their projected future emission patterns.

3) The third element is public financing. Developed countries should commit to finance overseas mitigation and adaptation efforts. And we should also accelerate international research in green technology – and facilitate its dissemination all over the world.

4) The fourth element will be market off-sets with an indication of emission reductions purchased abroad through the carbon market.

5) And finally as the fifth element – we must ensure credibility and verification as part of the agreement. Transparency and mutual trust are key words in this regard.

It could be obtained by a system where both developed and developing countries collect and register information to document their individual efforts. That would be an important confidence builder. And it would establish an important direct link between funding and actions.

Concluding a political agreement of this magnitude requires full engagement at the highest political level.

The political will is there. But the agreement is not.

Success will depend critically on the continued engagement of Heads of States and Governments.

As we approach a global agreement, Denmark intents to invite all Heads of States and Governments to come to Copenhagen and close COP15 at the summit level.

Transforming our individual political commitments into a global agreement will take collective political determination at an unprecedented scale.

It is necessary. It is doable. And it is in our hands.

December is the time. Copenhagen is the venue.

And No – there is no Plan B – because there is no Planet B for us to live on.

 Speech on the occasion of the “Way to Copenhagen” conference at the Columbia University Middle East Research Centre the 8th of November 2009.

Fighter

Welcome to post no. 100

  The movie showing in Jordan will have subtitles in Arabic.

Many young people in Europe and the Middle East find that sports and arts is an alternative way to express and challenge themselves. The Danish contribution to the EU Film festival deals with the themes of intercultural dialogue and youth expression through sports; “Fighter” is about a young Turkish-Danish girl who is not only fighting to improve her Kung Fu skills, but also struggling to cope with the intercultural complications and expectations of society, family and friends as she creates her own identity.
 
The Danish Embassy and MS Action Aid would like to invite you to participate in two events together with the leading actress from the movie, Semra Turan, where you will have the opportunity to debate and experience different ways of self expression in company of young engaged athletes and artists from Denmark and Jordan:
 
The 5^th of November in Amman at King Hussein Cultural Centre at 6pm: A debate about ways and limitations of youth expression with engaged young athletes and artists from Denmark and Amman, including the leading actress. Movie starts at 8 pm.
                   
The 6^th of November in Amman at Al-Hussein Cultural Centre at 5pm: You will have another chance to view the movie “Fighter”.
 
The 7^th of November in Zarqa at King Abdallah Cultural Centre at 3pm: Engaged young athletes and artists from Denmark, Amman and Zarqa will perform, share and debate different ways of self expression through sports and arts. The screening of the movie will take place at 6pm and be followed by a joint discussion with the audience.

40 Days and Counting

We have now only 40 days until the negotiations start in Copenhagen. It is not much, but if all make an effort we will be able to seal the climate deal in Copenhagen. Climate change is a fact. We cannot ignore that human activity and the burning of fossil fuels carries a major responsibility for this. We have to act through a firm global response.

Denmark is preparing itself to be the host of one of the biggest international government conferences in our country’s history. We expect about 15000 participants in the conference.

Our objective is to conclude a new, ambitious global agreement on climate change that includes all countries of the world and which includes ambitious targets for reducing global greenhouse gas emissions.

Global emissions need to be reduced by up to 50 % by the middle of this century – compared to 1990 CO2 emission levels – if dangerous consequences of climate change should be avoided.

The Copenhagen climate change agreement should deal with 4 elements:

• First, how much are the industrialized countries willing to reduce their emissions of greenhouse gasses?
• Second, how much are major developing countries such as China and India willing to limit their growth of their emissions?
• Third, how is the help needed by developing countries in reducing and adapting to climate change going to be financed?
• Fourth, how is the money spend going to be accounted for and verified?

This is the challenge we are facing at Copenhagen. I know that Jordan is broadly on the same line as we are – so we are looking forward to hosting this very important meeting. I have noticed that also Jordanian press have intensified its coverage of Climate Change during recent months, and I guess the next 40 days until we open the negotiations in Copenhagen will see an even more intensified coverage of this topic. The conference on the 8^th of November at the Columbia University in Amman will be an occasion for the press to focus on the climate change issue.

Jordan Times article

Al Ghad article

Oprah goes to Denmark – Watch this

Followers of this blog will know that my country have had its share of bad press coverage. So now to something totally different.

Oprah Winfrey recently visited Copenhagen in Chicago’s unsuccessful bid for the Olympics 2016. During her stay she shot a sequence about danes and the way they live for her show. It is a quite rosy story but it also give some insights to some of the things that Danes value in their life.

If you’re into Oprah this is something for you.

I think I am going to have a look at how they live in Dubai – the contrast must be remarkable