Showing posts with label carbon cap and trade. Show all posts
Showing posts with label carbon cap and trade. Show all posts

Wednesday, July 8, 2009

The Energy Bill: Get It Right or Dump It


Commentary: Is clean energy a pipe dream?

The Waxman-Markey Bill, an energy bill intended to sharply cut greenhouse gas emissions through the use of renewable energy technologies has instead become an enabler for Big Oil, King Coal and the nuclear industry. President Obama is pushing passage of the bill (now in the Senate) to feather his political nest but the legislation, as it's shaping up, is actually a setback for solar, wind and geothermal.

Environmentalists are saying it would be better to scrap this weak-as-water legislation than have it enacted. Congressional members from the coal and oil producing states are placing regional interests over the national good. Not that this hasn't happened before but the consequences are potentially greater than ever before.


Waxman-Markey has been diluted drastically since the climate change draft was introduced in the House of Representatives in March. The compromise bill passed late last month requires the coal and electric utility industries to reduce U.S. emissions by 17 percent in 2020, down from the 20 percent reduction advised in the initial draft. The revised bill also cuts state requirements to get their energy from renewable sources from 25% to 15% by 2025.

Here's a bigger pain: Barack Obama's campaign platform included selling 100% of so-called pollution permits that would raise nearly $650 billion to fight global heating over the next ten years but the House version gives all but 15% of those permits away free of charge. It figuratively castrates the whole intent of cap-and-trade. Such kowtowing to industry shows legislators are much more interested in shielding their constituent industries and are incapable of passing reforms scientists say are necessary to mitigate America's huge contribution to global heating.

And it gets even worse

Just yesterday, President Obama compromised with Senate Republicans and Rust Belt Democrats to plan and construct 100 new nuclear power plants by 2030. Wasn't it just awhile back we heard plans to decommission all 104 existing nuke plants by 2050 in favor of renewable sources?

Nuclear power is cleaner for the air than fossil fuels for making electricity but it is not green power. Uranium is not a renewable resource; it has to be mined, nurtured and watched like an infant while it's used and then stored safely somewhere for millennia. Green power comes from inexhaustible sources like the sun, the wind (currents caused by the sun), geothermal and ancillary sources like biomass and wave power.

Nuclear energy in theory is cheap power but in reality it is not. That's because of the exorbitant cost to build plants, monitor and maintain them, insure them and ultimately decommission them. Plus that pesky problem of proper, long-term waste disposal. Three Mile Island, Chernobyl and the radioactive contamination of a stream from a nuke plant in France last year, are all warnings being ignored. By adding 100 new nuke plants, we double our risk of a nuclear catastrophe. No matter how many say the nuclear record is statistically great, humans are not infallible no matter how smart and well-trained they may be. Furthermore, nuclear plants are ideal targets for terrorist cells. With patience and planning (like that leading to 9/11) an extremist attack on an atomic power site gives terrorists the nuclear threat without even investing a dime in the technology themselves. And did I mention making smart bombs from nuclear waste?

No legislation is better than being saddled with bad legislation. Passing a half-baked bill that appears long on good intentions and short on meaningful action is a waste of time and money. Time is already wasting on fighting global heating while the money still flows to those who already have it.


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Wednesday, June 10, 2009

Cap and Trade: The Next Market Meltdown?


Greenhouse gases to greenback boom...

An article in the current Mother Jones sheds light on a possible new financial tempest. It reports that if the Waxman-Markey climate bill becomes law, last year's financial disaster from credit default swaps and subprime mortgages could be replaced with carbon default swaps and subprime offsets. The law would create a new market for carbon derivatives whic
h was never the intent and, worse yet, never even thought of. This market will be huge ($2 trillion estimated), very complex and extremely hard to monitor. Without clear rules set in Washington, American-style cap and trade will be vulnerable to speculation and manipulation by many of the same financial big guns who brought us the market meltdown last fall.

Under cap and trade, the government issues permits allowing companies to emit a set amount of greenhouse gases. Companies that emit more than their limit can buy allowances from the companies producing less than their limit. Furthermore, there are carbon offsets which allow over-emitting companies to invest in an emissions-cutting project somewhere else, such as in developing countries. Examples would be paying Brazilian villagers not to cut down trees (which absorb CO2) or Filipino farmers to cap methane from pig waste.

For more on this timely, controversial issue, read "Could Cap and Trade Cause Another Market Meltdown?", by Rachel Morris in Mother Jones: http://www.motherjones.com/politics/2009/06/could-cap-and-trade-cause-another-market-meltdown?page=1


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Friday, January 23, 2009

Solar Stocks Report: Jan. 19-23, 2009


At least it was a grand inauguration!

The third full week of January continued the worst beginning of a new year on Wall Street in history. The Dow was down for the week by 203.66 points or -2.46%: NASDAQ down 104.37, -3.41%. This 20 solar stock index averaged just over 10% down since Monday's close.

These results may fly in the face of my previous post below that suggests buying solar stocks. Well, that's still my position for three reasons.

First, the entire economy is down and some investors simply need their money for other things. Secondly, it's the middle of winter and most people aren't thinking about solar power when the days are short and the weather's cloudy and cold. How often do we think about the price of fuel oil or getting a space heater in August? Take it from one who's sold solar power systems year-round since 2002. Spring, summer and early fall comprise the best solar selling season whether for stocks or for solar installations. (If you're still leery, wait until March to buy when sales pick up.) Finally, I see the energy paradigm shift to renewables accelerating this year with the Obama administration. If the president pushes a national renewable energy standard and/or institutes a carbon cap-and-trade program, the switch to renewables becomes a mandate. Panel prices are also coming down because more high-grade silicon cells are being produced than ever before. Concentrating photovoltaics, just now taking off, lower the cost per watt, reduce space requirements and require less man hours to install because fewer (high-efficiency) modules are necessary.

Go ahead. Try to think of any emerging technology that has more worldwide growth potential than solar and wind power? Then let me know.

Week of: Jan 19-23, 2009 Symbol/Name Monday Friday +/- % Change

DJIA/Dow Jones 8281.22 8077.56 -203.66 -2.46%

NASDAQ 1529.33 1477.29 -104.37 -3.41%

Akeena Solar AKNS 2.20 2.08 -.12 -5.46%

Amtel Systems ASYS 4.20 4.22 +.02 +.004%

Applied Mat. AMAT 10.18 9.71 -.46 -4.62%

Canadian Solar CSIQ 5.29 5.30 +.01 +.002%

ECD (UniSolar) ENER 26.02 24.10 -1.92 -7.38%

Evergreen Solr ESLR 2.88 2.19 -.59 -23.96%

First Solar FSLR 145.42 137.51 -7.91 -5.44%

GT Solar Int. SOLR 4.46 3.49 -.97 -21.75%

JA Solar JASO 3.10 2.60 -.50 -16.13%

Kyocera KYO 69.10 64.96 -4.14 -6%

LDK Solar LDK 13.93 11.50 -2.43 -17.45%

MEMC Elect. WFR 14.76 13.64 -1.12 -7.59%

Renesola SOL 3.81 3.33 -.48 -12.6%

Satcon SATC 1.51 1.40 -.11 -7.29%

SolarFun SOLF 5.20 4.82 -.38 -7.31%

SunPower SPWRA 33.46 30.26 -3.20 -9.57%

SunTech STP 10.81 8.90 -1.91 -17.67%

Trina Solar TSL 8.55 7.79 -.76 -8.89%

WorldWater WWAT.OB .40 .365 -.335 -8.75%

Yingli YGE 5.69 4.93 -.76 -13.36%

Average % change for all solar stocks for week: -10.06

NOTE: All above stocks have market capitization of $100M+ except Akeena Solar, Amtel Systems and WorldWater & Solar. This listing is strictly informational and implies neither endorsement or disapproval of any stock listed. Comments and suggestions are always welcome. Thanks to MarketBrowser, the free stock watcher, available free at www.marketbrowser.com


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