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New Climate Deal A Signal To Private Sector

December 16, 2015 Webmaster

Khan … I would say to the private sector, look at investing in renewable energy and energy efficiency.

The new global climate deal, reached after two weeks of intense negotiations, is a signal to the private sector, local and international, of the need to reassess current investment flows.

Jamaican negotiator Dr Orville Grey said the private sector will be critical, given the stated goal of the new deal of “holding the increase in the global average temperature to well below 28C above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.58C above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change”.

“The private sector will at some point have to take the lead because the technologies that are likely to take us to carbon neutrality will likely come from the private sector and not the public sector, at least as it relates to technology,” Grey, coordinator for adaptation for the Alliance of Small Island States during the negotiations, told The Gleaner.

If the world is to meet the ‘well-below-two’ target, it will require a significant shift in the current high levels of consumption of fossil fuels, including coal and oil, towards renewables such as solar and wind.

Colonel Oral Khan, chief technical director in the Ministry of Water, Land, Environment, and Climate Change and himself a member of the Jamaica delegation to the talks, was in full agreement.

“The private sector is encouraged under this agreement to support the mobilisation of finance to support adaptation and mitigation,” he said.

On Jamaica’s private sector, Khan said: “The State has submitted its intended nationally determined contribution commitment to [reducing greenhouse gas emissions] to the UNFCCC (United Nations Framework Convention on Climate Change) Secretariat. Our commitment is consistent with the goal of our National Energy Policy. I would say to the private sector, look at investing in renewable energy and energy efficiency. In time, I hope that we will see more entities entering into public-private partnerships.”

A Historic Turning Point

Neither Grey nor Khan is alone in their thinking; international leaders in business have echoed their sentiments.

“The business case for eliminating greenhouse gases by 2050 is irrefutable. Indeed, solving climate change presents the greatest economic and social development opportunity of our time,” said Sir Richard Branson, founder of the Virgin Group, in a release to the media on Saturday.

“The new climate agreement is a historic turning point. Now business can and must innovate to lead the transition to a clean economy. Together, it is our duty as human beings, responsible citizens and business leaders to protect the environment. A transition to a clean and green economy will lift millions out of poverty, and ensure the planet’s health for generations to come,” he added.

Arianna Huffington, president and editor-in-chief of the Huffington Post, mirrored his comments.

“This is truly a turning point in human history. We now have the chance to advance the well-being of people everywhere, while creating millions of new jobs and ending our reliance on fossil fuels,” she said in the same release.

“This will help us build a safer, more peaceful world for all. This is exactly what business needs in order to thrive in the long run,” added Huffington.

The Gleaner

Climate Change Confrence Government News

Strength Of Paris Climate Deal In Question

December 12, 2015 Webmaster

Daley: I think there is a movement towards a text, which says the developed countries must continue to live up to the essence of the Convention.

PARIS, France:

Up to late last evening, it was still anyone’s guess as to the precise nature or strength of the climate agreement that is to emerge from Paris.

What was clear was the refusal of Caribbean and other small-island developing states (SIDS) to accept a deal that does not take full account of their particular needs in the face of climate-change impacts that could devastate entire economies and significantly reorder life as they know it.

Still, there is some willingness to compromise in the interest of reaching consensus, without which there can be no deal.

“A text was prepared [on Wednesday] and was more or less accepted in terms of its content as something that we can work on,” said Albert Daley, head of the Climate Change Division and a member of the Jamaica delegation to the international negotiations.

The ‘text’ is the label used to describe the intended outcome document while it is being negotiated.

“Having looked at it, there are a number of issues that we were concerned about … we were adamant that 1.5 [degrees Celsius as a cap in global temperatures] has to be in the agreement,” he added.

However, Daley said further: “We are conscious that there are some parties who are saying less than two [degrees Celsius], and so in the agreement that evolved, there was one option which spoke to well below 2 degrees C with the intent to move to 1.5 degrees C. That seemed like something that we would be willing to compromise on if we have to.”

They are also intent on ensuring that whatever the final agreement, it is one that recognises the special circumstances of SIDS. But as with other elements of the draft text, there is a battle raging.

“We are in a fight against other countries who say they are vulnerable. The Latin American countries – the Central American countries – are saying that they are vulnerable. Other countries, too, are claiming they are vulnerable and needing to get the same kind of special treatment. But we are insisting that SIDS have to be mentioned as a group of countries that have special circumstances that necessitate us being treated in a special way,” said Daley, who was in deliberations until 5 a.m. yesterday.

“Very few countries are like us. If we have a storm, other countries can retreat to the hills and continue life as normal. With us, the whole country is impacted,” he added.

WRANGLING OVER FINANCE

Meanwhile, there is yet more wrangling over finance – which SIDS want to be adequate, predictable and sustainable – as countries debate who should pay and how much.

“The countries that are responsible for the climate-change problem will have to take responsibility for contributing to helping countries to deal with the issue. What we are saying is that the developed countries, they were the original cause and they must finance it, according to the Convention (United Nations Framework Convention on Climate Change),” explained Daley.

“But they (the developed countries) are now saying you have some newly developed countries who have resources and, therefore, they should contribute to helping to address climate-change concerns. And they (those other countries) are saying, ‘No, the Convention says you (developed countries) are responsible and, therefore, should bear the brunt of it’,” he added.

Still, despite the cut and thrust of the talks, Daley was optimistic.

“I think there is a movement towards a text which says the developed countries must continue to live up to the essence of the Convention, which says we have common but differentiated responsibility … . And we are moving towards a state where other countries can voluntarily contribute financing where they are able to,” he noted.

“We are looking forward – having made our inputs to what we feel are reasonable bridging positions – to see what [the new draft text] looks like, and that would now provide the basis for the final round [of negotiations],” Daley added.

The Gleaner

Alternative Energy Climate Change Electricity Energy Saving Government News Solar Energy

16 win UN ClimateSolutions Award

December 11, 2015 Webmaster

A solar panel on a thatch roof in Sub-saharan Africa is part of the Azuri PayGo Energy project, which provides eight hours of emission-free lighting each day and enough power to charge cellphones. Users pay a one-time installation fee and top-up as their needs demand.

PARIS, France (UNFCCC) – Sixteen game-changing initiatives from around the world were honoured as winners of a prestigious United Nations climate change award at a special ceremony at the United Nations Climate Change Conference in Paris, on yesterday evening.

“These ‘Lighthouse Activities’ shine a light on the groundswell of climate action around the world,” said UN Secretary-General Ban Ki-moon in a keynote address. “As the world moves toward a future built on low-emissions sustainable development, these bold ideas can inspire leaders to be more ambitious in their own policies and actions.”

The Momentum for Change initiative is spearheaded by the UN Climate Change Secretariat to shine a light on some of the most innovative, scalable and replicable examples of what people are doing to address climate change. This year’s winning activities range from a seriously cool smartphone that puts social values first, to an initiative that is enabling 40 Latin American cities to take concrete climate action.

“I am honoured to celebrate the leadership shown by the people, organisations, companies, and governments recognised as winners of the 2015 Momentum for Change Awards tonight,” UNFCCC Executive Secretary Christiana Figueres said.

“By showcasing these remarkable solutions and the people behind them we can strengthen efforts that must not only start with an agreement here in Paris, but must continue to build, as we accelerate the global transition to a low-carbon, highly resilient development path,” she said.

To help celebrate and recognise the achievements of the 2015 Lighthouse Activities, attendees at the gala event were treated to powerful photos, inspirational videos and a lively musical performance by Sean Paul.

M Sanjayan, a conservation scientist, writer and Emmy-nominated television news contributor, introduced Conservation International’s newest video in its critically acclaimed Nature for Speaking series, titled Home. Bertrand Piccard, Solar Impulse CEO and UNEP Goodwill Ambassador, served as the evening’s master of ceremonies.

“Modern clean technologies have transformed the expensive problem of climate change into a profitable opportunity,” said Dr Piccard. “A global economy that is powered by renewable energy, implements energy efficient and minimises waste will not only tackle climate change, but will also generate health, job creation and profit in the communities where they take place.”

Each of the 16 winning activities touches on one of Momentum for Change’s four focus areas: Urban Poor, Women for Results, Financing for Climate Friendly Investment, and ICT Solutions. All 16 were showcased at a series of special events during the UN Climate Change Conference.

They are:

Urban Poor

•E-waste: From Toxic to Green, India: Creating jobs to keep e-waste out of landfills

•Solvatten Solar Safe Water Heater — Kenya: Reducing emissions while securing access to safe drinking water

•Emerging and Sustainable Cities Initiative | Latin America & the Caribbean: Supporting sustainable growth in emerging cities

Women for Results

•Fostering Cleaner Production — Colombia: Reducing emissions in manufacturing

•Harvesting Geothermal Energy — El Salvador: Generating income with geothermal waste-heat

•Planting Trees to Save the Mangrove — Guinea: Establishing women-led groups that protect forests and generate income

•SELF’s Solar Market Gardens — Benin: Empowering women farmers through solar drip irrigation

Financing for Climate Friendly Investment

•Azuri PayGo Energy — Africa: Innovating pay-as-you-go energy systems for rural homes

•Deforestation-free Cocoa — Peru: Using a carbon-asset-backed loan to protect forests and produce cocoa

•Microsoft Global Carbon Fee — Global: Transforming corporate culture by putting a price on carbon

ICT Solutions

•ChargePoint Electric Vehicle Charging Corridors — United States of America: Building a network of electric vehicle express charging stations

•Enabling Farmers to Adapt to Climate Change — Uganda: Using ICT solutions to build resilience

•Fairphone — The Netherlands: Producing a phone that improves lives and the environment

•Lifelink Water Solutions — Kenya and Uganda: Using ICT tools to provide safe, sustainable and affordable water

•Mapping Exposure to Sea Level Rise — Tonga, Samoa, Vanuatu and Papua New Guinea: Preparing for risk with online spatial tools

•Mobisol Smart Solar Homes — Rwanda and Tanzania: Powering homes with solar energy

The 2015 Lighthouse Activities were selected by an international advisory panel as part of the secretariat’s Momentum for Change initiative, which is implemented with the support of the Bill & Melinda Gates Foundation and The Rockefeller Foundation, and operates in partnership with the World Economic Forum and the Global e-Sustainability Initiative.

Jamaica Observer

Climate Change Government

Caribbean Negotiators Dig In As Paris Talks Near Close

December 10, 2015 Webmaster

WITH ONLY two days to go before the official end to the climate talks here, Caribbean negotiators are working feverishly to safeguard the region’s interest in the final outcome document.

That document – referred to as ‘the text’ throughout the negotiating process – is widely expected to inform the global response to climate change.

“All of the Caribbean issues are still alive, which is a good thing … . We haven’t lost anything in the text,” said head of the CARICOM Task Force on Climate Change Dr James Fletcher.

But, he cautioned: “We haven’t sealed the deal on too many things. What has happened is that the COP [Conference of the Parties to the United Nations Framework Convention on Climate Change] president (Laurent Fabius) has put out the latest version of the text.”

“It is a shortened version … but we are still not anywhere near a final text because there are so many options still on the table,” explained Fletcher, who is also St Lucia’s minister of sustainable development, energy, science, and technology.

He was speaking to The Gleaner following the 3 p.m. release of the latest text yesterday, which reflects the current state of play of the negotiations on issues such as adaptation, loss and damage, finance, technology, and mitigation.

The options the minister referred to are the so-called ‘bracketed text’, on which no consensus has been reached among countries. Until they are agreed, the brackets cannot be removed and there can be no final document.

Areas Of Interest

Among the Caribbean’s particular areas of interest are loss and damage; 1.5 degrees Celsius as the target for a cap on greenhouse gas emission increases; and additional, predictable, and adequate financing.

“What has been happening since that draft text was distributed is that the various groups have been meeting to review the text to identify where there are possible areas of compromise, where there are significant red lines [points of no return] and issues that they cannot live with,” he said.

Once those groups – including the Alliance of Small Island States of which CARICOM countries form a part – come back, the process will move forward with a meeting of all countries, as they attempt to reach consensus on a final document.

A Mountain To Climb

In commenting on the work it would take to get there, one of Jamaica’s senior negotiators, Jeffrey Spooner, said: “It is not a hill but a mountain that we have to climb.

“And we all have to climb it, in the interest of the planet for the next generation,” he added.

Meanwhile, Spooner said there was no question of the Caribbean pressing home what it needs in order to ensure its survival in the face of climate impacts, including sea-level rise, coastal erosion, droughts, stronger hurricanes, among other things.

“By tomorrow [today], we will know exactly where we stand and, of course, we will still press for our concerns. ‘1.5 to Stay Alive’ and loss and damage – these are two important items for us,” he said.

Fletcher agreed.

“By and large, all of our issues are on the table, and that is a good thing. What has to happen now is that we have to fight to ensure that not only do they remain on the table, but that they are reflected in the final text … “.

The Gleaner

Climate Change Government News

Jamaica Eyes Debt Swap For Climate-Change Adaptation

December 10, 2015 Webmaster

A group of youths protest along a walkway of the Paris climate talks venue yesterday.

Jamaica is looking to take a page from Seychelles’ book, following that country’s recent debt restructuring for climate-change adaptation with a number of its creditors, announced here on Monday.

“We have expressed our interest in pursuing another debt-swap arrangement with our funders, and this time, we are looking at it in relation to climate-change adaptation and mitigation,” revealed Col Oral Khan, chief technical director in the Ministry of Water, Land, Environment and Climate Change.

“We have had experience with debt swaps in the past, where we were able to use funds that would have gone to debt repayment to invest in our forests and also to help community groups and NGOs which had projects that could advance the environment,” he added.

That previous arrangement financed the work of the Environmental Foundation of Jamaica, through an agreement between the governments of Jamaica and the United States. It was designed to foster natural resources conservation and child development locally.

So far, Khan said, the signs are encouraging for the island, which has grappled with a heavy debt burden, while counted among those most vulnerable to climate-change impacts.

These impacts include increased temperatures, sea-level rise and extreme weather events, notably droughts and intense storms.

“Now we are hoping we can apply some of our debt-service payments to our adaptation and mitigation, and we find that some of the lenders are warming to the idea,” he told The Gleaner.

“Yesterday (Monday), the Republic of the Seychelles launched the first debt-swap arrangement in relation to climate-change adaptation and mitigation, and we were there to endorse and to express our own interest in similar types of debt swaps,” Khan added.

DISCUSSIONS UNDER WAY

Already, he said, discussions involving his ministry and the Ministry of Finance and Planning were under way on the matter.

“We are going to push ahead now that we know there is a warm response to this. We need to be able to put more funds into adaptation, but because we have to spend so much money on debt repayment, then the funds left for development and for adaptation are curtailed,” Khan remarked.

The size of Jamaica’s debt stands at some J$2 trillion, with a debt-to-GDP ratio of 130 per cent.

Meanwhile, the chief technical director, who is a member of the Jamaica delegation to the Paris talks, indicated that he anticipated very little difficulty in making the debt swap a reality for the country.

“We have a framework in place already. That would make it fairly easy for us. We know what we want and what would go into this type of arrangement. It would just be to engage the financiers now,” he said.

The Seychelles arrangement – undertaken with creditors from The Paris Club and the South African government – makes “the cash flow from the restructured debt … payable to, and managed by, an independent, nationally based, public-private trust fund called the Seychelles Conservation and Climate Adaptation Trust (SeyCCAT),”according to an article from blueandgreentomorrow.com.

“Debt-service payments fund three distinct streams: one for work on the ground that will help reduce risk through improved management of coasts, coral reefs, and mangroves, another to repay impact investors, and a third to capitalise SeyCCAT’s endowment,” it added.

The Gleaner

Crude Oil News Oil

No problem with PetroCaribe agreement after Venezuelan election results, says Petroleum Corporation of Jamaica boss

December 9, 2015 Webmaster

No worries for Ja over electoral change in Venezuela — PCJ

Up to November, Venezuelan president Nicolas Maduro had been promising more under the PetroCaribe programme to Caribbean countries, announcing more resources for the eastern Caribbean.

Now, following the parliamentary victory by Democratic Unity Roundtable (MUD) some expect that changes may be in the offing.

The PetroCaribe programme is an agreement between Venezuela and some Caribbean territories to purchase oil on preferential terms. It allows the Government of Jamaica (GOJ) to convert 40 per cent of payments annually to a loan repayable over 25 years.

The funds flowing from the arrangement are managed by the PetroCaribe Development Fund (PDF).

Despite the debt buy-back executed this year, Jamaica is still heavily reliant on PetroCaribe funds for low-cost budget support.

In July, Venezuela allowed the GOJ, based on the net present value of the debt outstanding at December 2014, to purchase the PetroCaribe debt totalling US$3.2 billion for US$1.5 billion.

But the Ministry of Finance and Planning still remains the fund’s largest borrower.

Some analysts have posited that the escalating budget constraint faced by the Venezuelan government could trigger a drastic amendment of the PetroCaribe arrangement.

However, chairman of the Petroleum Corporation of Jamaica (PCJ) and advisor to the Ministry of Science Technology Energy and Mining (MSTEM) Christopher Cargill says he expects to see business as usual.

“The election was a parliamentary victory. It was not the national election which is due in 2019. No change can be executed to PetroCaribe before the national elections,” Cargill explained.

He said that in retrospect, Jamaicans should show appreciation for the decade-old arrangement.

“I think Jamaicans really need to be grateful for the benefits received over the years,” he stated, citing the avoided pressure on foreign exchange resources.

Others, including US-based analysts, have projected changes in the offing based upon the effect in Venezuela of declining oil revenues where increasing socio-economic chaos has become evident.

Oil accounts for roughly 96 per cent of export earnings, about 40 per cent of government revenues.

Forecasts have placed oil prices to stay at US$60 per barrel on average due through to 2020 owing to levels of supply from OPEC members and the rapid increase in natural gas and shale oil production.

However, Cargill is convinced that the next three years will hold nothing new for PetroCaribe and its client countries.

He anticipates that a subsidiary of PetrÃ³leos de Venezuela (PDVSA) will move ahead to honour its promises to upgrade the Petrojam refinery which it partially owns, a move expected to make the company more competitive regionally.

Jamaica, in 2006, signed an agreement with Venezuela through PDV Caribe, a subsidiary of PDVSA for a 49 per cent stake in Petrojam with a subsidiary agreement to move production from an average of 30,000 to 50,000 barrels of petroleum products per day through expansion.

At last report, PVDSA was reviewing proposals received for the upgrade of the petroleum refinery from two Chinese sources.

The refinery currently supplies about 80 per cent of the local non-bauxite market and 70 per cent of the national market.

A 2008 estimate put the project cost for expansion at US$758 million, funds that Jamaica lacked and which Venezuela has been unable to deliver to date.

Jamaica Observer

Alternative Energy Climate Change Electricity Energy Saving Government JPS News Oil

Coalition urges action to phase out fossil fuel subsidies

December 7, 2015 Webmaster

Members of the Jamaican delegation to COP21 at the Wider Caribbean Pavilion (from left) Ambassador Sheila Sealy Monteith, under secretary for the Multilateral Affairs Division at the Ministry of Foreign Affairs and Foreign Trade; Vilma McNeish, ambassador to the Kingdom of Belgium and the European Union; Senator Arnold J Nicholson, minister of foreign affairs and foreign trade; Dr Orville Grey, senior technical officer in the Ministry of Water, Land, Environment and Climate Change; and Jeffrey Spooner, head of the Meteorological Service of Jamaica.

PARIS, France — An unprecedented coalition of close to 40 governments, hundreds of businesses and influential international organisations have called for accelerated action to phase out fossil fuel subsidies, a move that would help bridge the gap to keep global temperature rise below 2°C and perhaps close to the 1.5°C for which Caricom and other Small Island Developing States are advocating.

On the opening day of the UN Conference on Climate Change (COP21) last week, New Zealand Prime Minister John Key formally presented the Fossil Fuel Subsidy Reform Communiqué to Christiana Figueres, executive secretary of the UN Framework Convention on Climate Change (UNFCCC), on behalf of the Friends of Fossil Fuel Subsidy Reform, The Prince of Wales Corporate Leaders Group and other supporters of the communiqué.

The communiqué calls on the international community to increase efforts to phase out perverse subsidies to fossil fuels by promoting policy transparency, ambitious reform and targeted support for the poorest.

Governments spend over $500 billion of public resources a year to keep domestic prices for oil, gas and coal artificially low. Removing fossil fuel subsidies would reduce greenhouse gas emission by 10 per cent by 2050. It would also free up resources to invest in social and physical capital like education, healthcare and infrastructure, while levelling the playing field for renewable energy.

“Fossil fuel subsidy reform is the missing piece of the climate change puzzle,” Prime Minister Key said. “It’s estimated that more than a third of global carbon emissions, between 1980 and 2010, were driven by fossil fuel subsidies. Their elimination would represent one-seventh of the effort needed to achieve our target of ensuring global temperatures do not rise by more than 2°C. As with any subsidy reform, change will take courage and strong political will, but with oil prices at record lows and the global focus on a low carbon future, the timing for this reform has never been better.”

In accepting the communiqué, Figueres said: “These subsidies contribute to the inefficient use of fossil fuels, undermine the development of energy efficient technologies, act as a drag on clean, green energy deployment and in many developing countries do little to assist the poorest of the poor in the first place.

“The huge sums involved globally could be better spent on schools, health care, renewable energies and building resilient societies. The current, very low oil prices are a good opportunity to really get going on this issue.”

Chair of The Prince of Wales Corporate Leaders Group (CLG) and former president of Alstom Power, Philippe Joubert, also spoke last Monday.

“The CLG’s long-standing efforts to put a price on carbon, including most recently working with the World Bank through the Carbon Pricing Leadership Coalition, will soon deliver results. It doesn’t make sense that, at the same time, governments artificially deflate the cost of coal, oil and gas, the primary cause of GHG emissions. Fossil fuel subsidies must be ended to stop this contradiction and enhance a real transition to low carbon energy,” he said.

For the OECD’s part, Secretary-General Angel Gurría commented that countries need to demonstrate their seriousness about combating climate change with concrete actions and policies.

“Reforming harmful fossil-fuel support is a good place to start,” Gurría stressed.

Close to 40 countries have endorsed the Fossil Fuel Subsidy Reform Communiqué, including Canada, Chile, France, Germany, Italy, Malaysia, Mexico, Morocco, Peru, The Netherlands, The Philippines, Samoa, the United Kingdom, the United States, Uganda, and Uruguay.

The communiqué is supported by The Prince of Wales’s Corporate Leaders Group (23 global companies employing two million people worldwide with combined revenues exceeding US$170 billion) and other business organisations working with thousands of corporations and investors, including The B Team, the World Business Council for Sustainable Development and the We Mean Business coalition.

The communiqué has also been endorsed by influential international organisations, including the International Energy Agency, the OECD and the World Bank.

Eliminating fossil fuel subsidies can accelerate the economic shift needed to tackle climate change and remove one of the obstacles to delivering the low-carbon future for which COP21 is aiming.

“History will prove fossil fuel to be a dead end,” Stefan Löfven, prime minister of Sweden, said. “Sweden will be amongst the first fossil-free welfare nations of the world. And eliminating fossil fuel subsidies is an important step on this path.”

Hakima El Haite, Morocco’s environment minister and candidate for the presidency of COP22, added: “Not only do fossil fuel subsidies put a strain on government coffers but they also don’t help the poorest of society.”

COP21 began on November 30 and will run until Friday, December 11.

Jamaica Observer

Alternative Energy Climate Change Energy Saving Government News

1.5 Degrees Celsius Remains In Play At Paris Climate Talks

December 7, 2015 Webmaster

After a week of deliberations at the United Nations climate talks in Paris, 1.5 degrees Celsius as a possible target for holding the increase in global temperatures – crucial for islands like Jamaica and others of the Caribbean – remains in play.

“Parties hereby establish the global goal of enhancing adaptive capacity, strengthening resilience, and reducing vulnerability to climate change, [in accordance with the objective, principles and provisions of the Convention, including common but differentiated responsibilities and respective capabilities,] with a view to [contributing to sustainable development] [and] [ensuring adaptation in the context of the goal of holding the increase in the global average temperature [below 2 degC][below [2 or] 1.5 degC] referred to in Article 2],” reads a section of the draft text on outcomes from the deliberations.

However, as evidenced by the brackets, nothing is settled as country heads and ministers come in this week to take over the negotiations from their technical experts.

Still, Caribbean islands, as others forming the Alliance of Small Island States, would have been pleased with the retention of the 1.5 target as an option – one that will necessitate significant cuts in greenhouse gas emissions if it is to be realised.

Only two weeks ago, head of the CARICOM Task Force on Climate Change Dr James Fletcher reinforced how critical the target is.

“The conversation has been about 28 Celsius, and we have said that two degrees cannot work for us.

“With 28 Celsius, we will have major ecosystem collapse in many of our countries,” said Fletcher, who is also St Lucia’s minister of sustainable development, energy, science, and technology.

“You will have extinction of some of the biodiversity that is so rich – both marine and terrestrial biodiversity – that makes us who we are. Two degrees Celsius will unleash major diseases on us, will cause our coastal defences to be majorly challenged,” he added.

He was speaking on November 26 at the announcement of the winner of that island’s ‘Media Climate Change Challenge’, which was won by journalist Alison Kentish of Helen Television System.

Challenges Negotiations

Meanwhile, the past week of negotiations has not been without challenges.

“OPEC countries Saudi Arabia and Venezuela stood out for their extensive efforts to derail the process in the first week, including blocking the vital symbol of human rights and ambition in the agreement, the 1.5 degree goal, as well as throwing up roadblocks around the definition of terms such as decarbonisation, carbon neutrality, and zero carbon,” read a release from the Energy and Climate Intelligence Unit, a United Kingdom-based non-profit, which has been following the progress of the talks.

“Also, despite a week of big announcements on renewables from Bill Gates, India’s Solar Alliance, Google, and more, Saudi Arabia have also questioned 100 per cent renewables as being a ‘slogan’ rather than as means to achieving the objectives of the conference,” it added.

Alongside the negotiations has been the ongoing “1.5 To Stay Alive” campaign launched in October in the Caribbean. It is the collaborative efforts of the Caribbean Community Climate Change Centre, Panos Caribbean, the Organisation of Eastern Caribbean States, the Caribbean Development Bank, and the Regional Council of Martinique.

The goal of the campaign is to bolster the Caribbean negotiating positions, including its effort towards securing the 1.58 Celsius target, given current climate impacts being experienced in the region.

These include sea-level rise, coastal erosion, and warmer days and nights.

The campaign, which has been gaining momentum, has so far seen ‘the launch of its Facebook page (www.1point5. info) and Twitter account (@1point5OK)

The Gleaner

Alternative Energy Government LNG News Oil Uncategorized

Financially Speaking | Jamaica’s Spectacular LNG Record

December 7, 2015 Webmaster

Lest we forget, Jamaica has been trying to strike deals to migrate to liquefied natural gas (LNG), and failing at it spectacularly, for well over a decade.

It all began four prime ministers ago, when Percival James Patterson was in charge and sought to broker a deal with his counterpart, Patrick Manning, in Trinidad in 2001. And we knew Patterson was serious about the issue, because that time he did not form a committee around it.

Still, it didn’t end well. Trinidad began to waffle – after all, it could get better prices for its fossil elsewhere. Jamaica wanted concessionary pricing for a yearly 1.1 million tonnes of natural gas as a family member in Caricom, but Trinidad was in favour of the hub. Business, after all, is business.

Patterson even put a dedicated man in charge of the LNG programme. That didn’t help. And since then, almost every effort at adding gas to the energy mix has coagulated. You know you have a problem when international headlines pop up asking, ‘Is Jamaica’s Energy Cursed?’

To recap, the actors in Jamaica’s LNG serialised melodrama have included Anthony Hylton, James Robertson, Clive Mullings, Christopher Zacca, Phillip Paulwell, Kelly Tomblin, Exmar, Caribbean LNG, Azurest, Energy World International, Jamaica Public Service Company and now Abengoa SA. Perhaps the only clairvoyant in the mix was Mullings, who, back in 2008, began touting coal as a more practical choice for diluting the viscosity of oil on Jamaica’s balance of payments, given the vagaries of supply in the LNG market.

Not everyone loved the idea. The thought of coal was a bit dirty, and risky, but it wasn’t entirely dismissed. Fracking has now changed that dynamic somewhat.

In 2014, some 13 years since the Patterson-Manning bro-pact and a decade after the more formalised LNG heads of agreement, ESET emerged as the latest reset when current Prime Minister Portia Simpson Miller reached out to an old and trusted ally of Patterson’s – Dr Vincent ‘Head of Kitchen Cabinet’ Lawrence – to bring an end to the confusion that had become Jamaica’s energy policy.

Being a glutton for punishment, Jamaica held on to its LNG ambitions, but also opened up to proposals for coal, compressed gas, and natural liquid gases such as ethane and propane.

Blame it on the cosmos

But even the doc, despite the heavenly moniker that had been bestowed on him in the past, has been no match for the supremacy of Murphy’s law, or whatever it is in the cosmos that appears to want Jamaica to stay wedded to crude. First, the American Ethane/UC Rusal arrangement fell apart – which Lawrence insisted would not derail the 2018 schedule to begin cutting electricity prices – and now there is Abengoa.

Right about now, JPS boss Kelly Tomblin likely has fingers crossed, hoping that New Fortress Energy won’t throw up any surprises; that the arrangement with the American company to supply gas to JPS’ Montego Bay plant will – please, oh please – go right.

General Electric is currently retrofitting Bogue for LNG – a US$22.54-million project that seems to escaped the curse – and Fortress Energy is to start delivering gas by mid-2016. The final terms of the Fortress engagement are now being negotiated.

Before the LNG project was revised from a 360MW single project and split into bite-size pieces under ESET, JPS itself had tried to take on the task under a US$600-million plan that went nowhere. The power utility was said to have a financing revolver lined up but could not secure the gas supplies at the right price.

Under the reset, JPS has two projects to execute – the 120MW Bogue project in Montego Bay for which it has contracted New Fortress, and the 190MW project in Old Harbour Bay. For the latter, JPS reportedly got several bids but chose Abengoa SA, which just days later filed for bankruptcy protection to restructure billions of debt.

Somebody hadn’t done their homework. One would have thought that JPS’s foreign parents Korea East West Power Company and Marubeni – both of which operate in the energy field – would have the temperature of another big energy player. But it appears that they, and the JPS consultants, did not.

Still, Tomblin and team appear to have other options were Abengoa to falter. The Spanish company has four months to right the ship, a timetable that collides with JPS’, which wants to start site prep for the Old Harbour plant by March in order to keep its 2018 commitment. Right about now, JPS is probably reinvestigating the other bidders, hopefully using a different set of consultants than the ones who delivered up the embarrassment of Abengoa.

Old Harbour is an important project for Tomblin, who wants her legacy at the Jamaican utility to be one of transformation. She got a Jamaican power generator and distributor to run, but she wants to leave it as a ‘gas and electric utility’ with a role in developing a regional gas supply hub for the Caribbean market. Old Harbour would be the fulcrum, assuming it gets built.

With Bogue and Old Harbour in play, around a third of base load capacity would be fired by gas, a cleaner and, as important, cheaper fuel source that will allow JPS to produce and supply electricity to the grid at a price below 13 US cents per kilowatt-hour, and knock 1.2 million barrels of oil off the country’s annual orders of crude.

Still, Murphy’s law is tenacious, which means that all Jamaica can do is pray that the stars will finally align in its favour and that the energy gods are in affinity with Vin.

The Gleaner

Electricity Government JPS News Oil

OPEC Keeps Oil Production At Current High Level

December 7, 2015 Webmaster

Nigeria’s Minister of State for petroleum resources and President of the OPEC conference Emmanuel Ibe Kachikwu (left), and OPEC’s secretary general Abdalla Salem El-Badri of Libya attend a news conference after a meeting of the Organisation of the Petroleum Exporting Countries, OPEC, at their headquarters in Vienna, Austria, Friday, December 4, 2015.

OPEC nations decided on Friday to keep producing oil at their current high levels, effectively acknowledging their inability to push up crude prices.

An attempt to nudge the cost of oil higher would have involved lowering output. Instead, the organisation’s endorsement of present output, which is more than 1.5 million barrels a day above the formal ceiling of 30 million barrels, is likely to push the price of oil down further.

The ministers of the Organis-ation of the Petroleum Exporting Countries appeared to have little choice. Major producing nations in the cartel were opposed to reducing output. Instead, OPEC is poised to produce more oil.

Iran, which once pumped around four million barrels a day and is now down to about half that, is preparing to come back fully on line once it sheds nuclear-related sanctions in a few months.

Senior oil official Amir Hossein Zamaninia said last week Iran hopes to bring an extra 500,000 barrels on the market by early next year. He said he hopes the extra output will be accommodated within OPEC’s formal ceiling of 30 million barrels a day.

Arriving for Friday’s meeting, Iranian oil minister Bijan Namdar Zanganeh said Iran is ready to discuss a ceiling for its production but only after his country makes a “full return to the market.”

Iraq is also resurgent. The country has seen the fastest rise in crude production in the world this year. It was pumping more than 4 million barrels a day last month and was responsible for last month’s biggest monthly rise in output among all OPEC countries.

And the ministers agreed to readmit past member Indonesia, to expand their ranks to 13. While that country’s production goes mostly for domestic consumption, that move could also add some to the total amount of OPEC barrels on sale.

A final statement on the meeting was unusual in not mentioning any decision on production ceilings. But conference president Emmanuel Ibe Kachikwu told reporters that there was agreement to maintain “current actual production”, which is well above the formal ceiling set at 30 million barrels a day.

Friday’s news pushed oil prices down, with the US benchmark rate sliding 2.7 per cent on the day to US$39.99.

The decision effectively leaves it up to individual members how much crude to pump and was a strong signal of OPEC’s eroding ability to act as a group in efforts to influence supply, demand and prices.

Kachikwu acknowledged as much, telling reporters asking about Iran’s return: “At the end of the day every country has a sovereign right to bring to the marketplace its resources.”

“The logic is simple,” he said, of OPEC’s present clout in a market where non-members such as Russia and U.S. shale producers play an increasingly large role. “We are only 35 per cent of the producers and there are still 65 per cent out there.”

Some OPEC members are producing at their limit and like at previous meetings, the pressure was on swing-producer Saudi Arabia, which accounts for about a third of OPEC’s output, to cut back. But the desert kingdom remained opposed.

The Saudis already resisted cutbacks a year ago, a strategy calculated to put higher-cost outside competitors like United States shale oil producers out of business. The hope was that would eventually lead to a drop in supply and a rebound in prices.

That plan clearly hasn’t worked, with benchmark US crude’s value falling by more than 40 per cent over the past year and now hovering around the US$40 mark per barrel.

Cushioned by past profits on oil, the Saudis can hold out, even if production costs exceed sale revenues. Not so much some others.

Kachikwu, the conference president who also represented Nigeria at the meeting, acknowledged that continued low prices will hurt his country.

“There will be pain,” he said.

The Gleaner

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