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Are Deregulated States Greener?

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Submitted by Guest Contributor

By Clint Robertson

When states started deregulating their energy markets more than a decade ago, competition was introduced in hopes of driving down market prices for electricity and giving the consumer the power to shop for energy.

But perhaps the most notable opportunity in deregulation is the consumer’s ability to go green. Many retail suppliers offer green energy plans, which allow customers to purchase renewable energy, generated from infinite resources, such as the sun or wind.

While deregulation can give consumers more control over their own carbon footprint, how are deregulated states fairing in the race to go green? Has the policy paved the way for renewable expansions? Are they in fact greener than their regulated counterparts?

Renewable Energy In The United States

With so many eco-savvy consumers, it's no secret that the country is trying to become a greener place. Despite the fact that there's no national mandate for renewable energy use, 30 states and the District of Columbia have voluntarily implemented renewable portfolio standards (RPS) to increase electricity production from environmentally friendly resources. Because these states have a mix of deregulated and regulated energy markets it’s tough to say whether either market is greener.

Take Texas for example.

Its renewable portfolio standard was part of the same legislation that deregulated its energy market. In total, the RPS calls for the state to produce 10,000 MW of electricity by 2025. Since deregulation and the RPS were implemented in 2002, renewable energy production has risen from 1 percent to 7 percent in the state. But the jump should come as no surprise since Texas surpassed its RPS goals by renewable energy2010, reaching the 10,000 MW mark 15 years early.

In 2010, the U.S. Energy Information Administration also named the state number five in the nation for renewable energy generation.

No Correlation Between Deregulation And Renewable Energy

But Texas’ strides to go green seem to be canceled out by its carbon emissions. From 2000 to 2010, Texas led the nation in carbon dioxide emissions, producing 7.5 billion metric tons, according to the EIA. It emitted 75 percent more CO2 over the time period than the second highest carbon-emitting state, California, which suspended its deregulated energy market in 2001.

On the other end of the spectrum, Washington State, a non-deregulated market, generates more renewable resources than any other state. In total, Washington produced 74.9 gigawatt hours of clean energy in 2010, according to the EIA's most recent data. With such varying production across the United States, it seems that there isn't a correlation between renewable energy generation and the deregulation of energy markets.

Deregulation Leads To Grid Improvements

Though deregulation may not play a role in renewable energy production, many believe deregulation is paving the way for smart grid technology. And advancements in the power grid make it easier to get green energy from generation companies to the power grid and finally into people's homes.

According to a report by GridWise Alliance and the Smart Grid Policy Center, there is an obvious relationship between states with retail electric choice and investments in grid modernization. Out of the report’s top 15 states in smart grid deployment, 11 operate with a full or partly deregulated energy market. It also found that areas with electric choice implement smart meter programs and grid education programs, which help generate investments in modernization of the system.

The reason that deregulated areas have been more successful at grid modernization may be, at least in part, because of utilities. Many of the utilities in regulated areas generate their own electricity. If demand for their fossil fuel-powered energy decreases, they will lose revenue. It's important to note that this is not as much of an issue in deregulated areas where utilities are responsible solely for the delivery of electricity, not the generation or sale of the commodity.

Barriers to Solar Power

According to a report by the Edison Electric Institute, solar power is the largest threat to the current utility model. There were approximately 200,000 distributed solar customers in the United States in solar panels2011, 70 percent of which were concentrated within 10 utilities service areas.

Though many regulated utilities have escaped the threat of incoming solar projects for now, the report assesses the risk for the current utility model should solar continue to grow within the nation. So it's not likely that utilities that generate electricity will make is easy for consumers to get green energy in regulated areas.

Regardless of whether a state has a deregulated energy market or not, it’s up to the utility to deliver electricity to people's homes. And without grid modernization there are plenty of barriers for renewable energy. First of all, renewable energy is often generated in remote locations that don't have access to transmission.

Additionally, there can be a lack of interconnection rules, which make it difficult — sometimes impossible — to connect renewable energy to the utility grid, according to the U.S. Environmental Protection Agency. And to top it all off, utility rate structures can increase the cost of green energy through added charges and fees.

Obviously there are things that hinder renewable energy from entering the power grid in every state. But it seems that more deregulated states have taken greater strides toward innovating for a secure energy future by advancing the grid technology that connects people with clean power.

About the Author:

Clint Robertson is a freelance writer who has held numerous positions in the energy industry. His work promotes ways to educate the general population and reduce the carbon footprint for the betterment of the world by focusing on our need for renewable energy sources.

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Ethical funds outperform non-ethical rivals

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The past 12 months have been a notable period for ethical fund performance with the average ethical fund posting gains of 24% compared with 18% growth from the average non-ethical fund.

The latest survey from Investment Life & Pensions Moneyfacts survey examined the performance of ethical funds, conventional non-ethical funds, index trackers and the FTSE 100 over a number of investment periods (see table below). It also compared ethical funds within the three IMA sectors that contain the most ethical funds (£ Corporate Bond, Global and UK All Companies).

As the table below shows, ethical funds have also outperformed UK Index Trackers (23%) and the FTSE 100 (18%).

Richard Eagling, head of investments and pensions at Moneyfacts, said: "Ethical funds have clearly benefitted from their lack of exposure to 'unethical sectors' such as mining, oil and gas and tobacco, which have been amongst some of the poorer performing areas of the market over the last 12 months."

Over three years ethical fund returns have also edged ahead of non-ethical funds, with the average ethical fund up by 36% compared with growth of 31% from the average non-ethical fund, whilst after five years there is very little difference in performance levels.

At first glance, the 10-year performance figures are less flattering for ethical funds, with the average ethical fund growing by just 56%, less than half the growth of the average non-ethical fund (128%). But these figures are distorted by the fact that sectors such as China /Greater China and Global Emerging Markets, which have experienced extraordinary growth, do not house any ethical funds with a 10-year record.

However, comparing ethical funds within the three IMA sectors that contain the most ethical funds (£ Corporate Bond, Global and UK All Companies) shows that in each case there is only a small gap between ethical fund performance and their non-ethical peers. For instance, over ten years the average Global ethical fund is up by 127% compared with growth of 131% from their non-ethical peers. Furthermore, the top two performing ethical funds across all sectors over 10 years - Kames Ethical Equity (199%) and Ecclesiastical Amity International (188%) - have both delivered returns that overshadow many of their conventional rivals.

 

Picture credit: © Anatoliy Babiychuk | Dreamstime Stock Photos

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Sweden proves world's most sustainable country

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RobecoSAM’s new study has found Sweden to be the most sustainable country in the world.

The study, which evaluates 59 countries (21 from developed and 38 from emerging markets) on a broad range of Environmental, Social and Governance (ESG) factors relevant for investors, ranked Sweden top with a score of 8.25 out of 10. Rounding out the top three were Australia and Switzerland with scores of 7.87 and 7.83 respectively.

Sweden earned high scores across almost all criteria and contrary to many developed countries, also scored well on environmental factors such as the use of renewable energy sources and CO2 emissions.

The framework primarily focuses on mid to long-term factors that have an indirect impact on a government’s ability to repay its debt or raise revenues, but that are not considered by traditional sovereign ratings.

Results indicate that a stronger sustainability profile corresponds to a lower insurance premium, suggesting that there is added value in gathering information on risks related to a country’s sustainability profile in times of risk aversion.

Investors’ demand for long-term oriented strategies that integrate ESG considerations across a range of different asset classes is likely to grow; particularly in the wake of the financial crisis, which exposed some of the shortcomings of traditional measures used to evaluate country risk.

This the first Country Sustainability Ranking produced by RobecoSAM and Robeco; Robeco began to conduct research into country level sustainability in 2008.

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Samsung under fire for alleged labour law violations in Brazil

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Public prosecutors in Brazil have begun legal action against the South Korean electronics giant Samsung, alleging that it has been infringing labour laws at one of its factories.

According to Reporter Brasil, a Brazilian news agency that reports on labour issues, the lawsuit was filed after the Ministry of Labor and Employment carried out two inspections at a Samsung factory in the city of Manaus, where some of the company's smartphones are assembled.

Prosecutors accuse the company of making its employees work long, tiring shifts without sufficient breaks. Media reports cite one worker who reported packing nearly 3,000 phones a day.

In a statement, Samsung said it would analyse the process and fully co-operate with the Brazilian authorities: "We are committed to offering our collaborators around the world a work environment that ensures the highest standards when it comes to safety, health and well-being," the company has stated.

The news follows recent allegations against fellow technology giant Apple concerning worker rights violations at Chinese factories of one of its suppliers, the Pegatron Group. Both Apple and Pegatron are currently investigating the allegations. "Apple is committed to providing safe and fair working conditions throughout our supply chain," the company said in a statement.

 

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Pharma giants pledge greater drug transparency

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The European Federation of Pharmaceutical Industries and Associations (EFPIA) and the Pharmaceutical Research and Manufacturers of America (PhRMA) have strengthened their commitment to enhancing public health by endorsing joint “Principles for Responsible Clinical Trial Data Sharing: Our Commitment to Patients and Researchers.”

 “Companies routinely publish their clinical research, collaborate with academic researchers, and share clinical trial information on public websites,” said Christopher Viehbacher, president of EFPIA and ceo of Sanofi. “By endorsing the Principles, biopharmaceutical companies commit to enhance these efforts by making additional information available to the public, patients who participate in clinical trials, and to qualified researchers.

Under the new commitments, biopharmaceutical companies will dramatically increase the amount of information available to researchers, patients, and members of the public.

For example, patient-level clinical trial data, study-level clinical trial data, full clinical study reports, and protocols from clinical trials in patients for medicines approved in the US and the EU will be shared with qualified scientific and medical researchers upon request and subject to terms necessary to protect patient privacy and confidential commercial information. Researchers who obtain such clinical trial data will be encouraged to publish their findings.

“The commitments recognize the importance of sharing clinical trial data in the interest of patients, healthcare and the economy. Imperative to the success of this initiative are safeguards that ensure patient privacy, respect for integrity of regulatory systems worldwide and greater incentives for more investment in medical innovation,” said Robert Hugin, chairman of PhRMA and Chairman and ceo of Celgene Corporation.

The Principles are available here. The commitments will come into force from January 2014.

 

Picture credit: © Lori Martin | Dreamstime Stock Photos
 

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As Premier League kicks off, Carbon Trust tracks ‘carbon bootprint’

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As England’s Premier League prepares to kick off this weekend, new research from the Carbon Trust has unveiled the ‘carbon bootprint’ of watching football.

The research finds that when watching on your own then the lowest carbon way to watch football is by using a smartphone or tablet connected to broadband internet. Emissions for this can be as much as eight times lower than watching on television, mostly due to the smaller size of the screen.

Thanks to advances in technology more fans are choosing to follow their team live on computers, smartphones and tablets. In the UK 27% of smartphone owners, and 63% of tablet owners, are now using their device to watch live TV. For the upcoming season both Sky and BT are offering apps that allow football to be watched on personal devices.

But the research reveals that when it comes to impact on the climate, then streaming on a personal device can also be the highest carbon way to watch the broadcast of a game. If mobile data is used then this increases the carbon bootprint of watching the game by at least ten times compared to a broadband connection. Mobile data transmission can be very energy intensive - watching a whole game could have the same associated emissions as driving ten miles in an average petrol car.

In general sharing a television screen with multiple people, either at home or in the pub, remains the lowest carbon way to watch football per viewer. Different devices and screen sizes can vary greatly in energy consumption. With televisions LED screens are most energy efficient, followed by LCD and then plasma. Watching on a plasma screen could result in lifetime emissions a third higher than a similar sized LED television. Similarly a laptop could result in less than half the emissions compared to watching on a desktop computer.

Going to see a game live at the stadium is the most carbon intensive way of watching football - particularly for an away game – due to the impact of transport. But food and drink consumed during a game can still make a significant contribution to an individual bootprint, depending eating and drinking choices.

Michael Rea, chief operating officer at the Carbon Trust commented: “We are working with a number of organisations to reduce the carbon bootprint of football. The FA, Manchester United, Newcastle United, Bolton Wanderers have all been awarded the Carbon Trust Standard, as have both Sky and BT. Our work helping teams, broadcasters and the telecoms industry to continuously reduce their environmental impact will in turn help to reduce the impacts of fans when they are watching football.”

 

Picture credit: © Joy Miller | Dreamstime Stock Photos
 

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Fashion fails workers in sandblasting scandal

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Activists have demanded urgent action from governments and companies to stamp out the continued use of sandblasting and other unsafe finishing processes in the manufacture of denim jeans.

The call comes in a new report into conditions in six denim factories in the Chinese province of Guangdong, a region responsible for half of the world’s entire production of blue jeans.

The report, Breathless for Blue Jeans: Health hazards in China’s denim factories, finds that sandblasting is still widespread in China in order to give jeans a worn or ‘distressed’ look, despite most Western brands banning the practice three years ago because of its link to silicosis, a deadly lung disease that has already caused the deaths of many garment workers.

One worker interviewed said: “In our department, it’s full of jeans and black dust. The temperature on the shop floor is high. It is difficult to breathe. I feel like I’m working in a coal mine.”

The new research, based on interviews with workers in the factories themselves, also revealed that workers are exposed to other dangerous finishing techniques to distress denim, including hand sanding, polishing, dye application and spraying chemicals such as potassium permanganate, with limited protective gear and inadequate training in the proper use of equipment.

The report was produced by IHLO, the Hong Kong Liaison Office of the international trade union movement; Students and Scholars Against Corporate Misbehaviour (SACOM), also based in Hong Kong; the global network Clean Clothes Campaign; and the workers’ rights pressure group War on Want, based in London.

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Kyoto milestone…

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The Kyoto Protocol’s clean development mechanism (CDM), the international market-based tool that incentivizes greenhouse gas (GHG) emission reduction projects in developing countries, has passed the 7,000 registered projects milestone. The 7,000th project will capture and destroy biogas created at two livestock (pig and chicken) farms in Cebu, Philippines, reducing annual emissions by 48,000 tonnes; the equivalent of removing 10,000 passenger cars from the road each year.

The project will also reduce air pollution and odour, reduce instances of mosquito-borne illnesses, such as dengue fever, and increase job opportunities for the local community.??“Despite unfavourable market conditions, the CDM continues to provide a mechanism for real emission reductions and real sustainable development for those who wish to use it,” said Peer Stiansen, Chair of the CDM Executive Board. 

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Awards celebrate corporate responsibility & sustainability

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Jaguar Land Rover has been crowned Business in the Community’s 2013 Responsible Business of the Year, taking over the mantle from British high street stalwart Marks & Spencer.

The luxury car manufacturer was praised for its investment in new technologies including engine efficiency, lightweight materials (that mean vehicles need less power) and hybrid vehicles, to reduce tailpipe emissions. It won recognition through its school and work-based activities that have enabled 2m young people to improve their skills and learn more about engineering and technical careers. More than 200,000 young people from 50 schools have participated in its Inspiring Tomorrow’s Engineers programme.

Building contractor Lakehouse, won the Santander Responsible Small Business of the Year award. Over the past year, it has invested more than £600,000 in new apprenticeships and trainee schemes, as well as £350,000 in community projects. The company’s work has helped to recruit and retain staff and win new business, including contracts with homelessness charity Thames Reach.

Milk producer Diary Crest won two awards on the night receiving both the Sustainable Supply Chain and the Marketplace Sustainability Leadership accolades.

The Education Award to Gentoo Group, which through its partnership with Academy 360, an independent academy for pupils aged four to 16 in Sunderland, the housing and social care group has invested £1m in a school which serves one of the most deprived neighbourhoods in the country.

Other award winners on the night were: Marks & Spencer (Workwell Award); GI Group Recruitment (Workplace Talent & Skills) Star Pubs & Bars (part of the Heineken Company, Enterprise Growth Award); Wates Group (Work Inclusion Award); Jobsite UK (Inspiring Social Action in Young People Award); East of England Co-operative Society (Rural Action Award ); B&Q (Customer Engagement on Sustainability Award) and The Body Shop (International Award).

2degrees, the online network for sustainability professionals, also announced the winners of its inaugural Sustainability Champions Awards 2013 last month.

The awards selected and voted for by members of the 2degrees community, recognized the best examples of sustainability practice from across a range of sectors, with 34 shortlisted entries challenging for the top prize across 12 categories, from energy management, to buildings and property, to supporting players.

Telefonica O2 UK, SC Johnson and Unilever won in the Internal Engagement, Energy & Carbon Management (long term) and Supply Chain Management categories respectively. Molson Coors Brewing Company came top in Water Management for its water stewardship work, while the Pop-Up-Foundation waved the flag for small business enterprises in Solution of the Year, for their initiative to design and develop sustainable solutions for our urban world. In personal categories rewarding people’s exceptional work behind-the-scenes Daniella Vega from Sky was voted the Sustainability Champion of the Year and Lucy Findlay from Social Enterprise Mark Company recognized as the Supporting Player of the Year.

Martin Chilcott, founder and ceo of 2degrees said: “From projects being published on 2degrees, to a unique judging process entirely based on votes from peers, to the ceremony itself – the awards encouraged and realized a plethora of creative stakeholder engagement opportunities for nominees’ success stories. Overall, we were overwhelmed by the sheer quality and number of entries that came through.” 

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First public service ad campaign for 40 years targets recycling

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Recycling is the subject of America’s first public service advertising campaign for 40 years. The “I Want To Be Recycled” campaign will target the 62% of Americans who are not avid recyclers.

According to the Environmental Protection Agency, the average American produces 4.4 pounds of refuse a day, and on the whole the US produces over 250 million tons of rubbish a year. However, only about 35% is currently recycled.

The “I Want To Be Recycled” campaign from the Ad Council and Keep America Beautiful is targeted to motivate Americans to recycle every day and shows that recyclable materials can be given another life and become something new if someone chooses to recycle.

The campaign directs audiences to IWantToBeRecycled.org, a new website with a localized search tool allowing users to find where to recycle either at their curbside or their nearest recycling centre. The website illustrates the recycling process through an interactive infographic and offers detailed information on what materials can be recycled, how they should be recycled and what products they can become in the future.

To address this national concern, the Ad Council and Keep America Beautiful (KAB) today launched a public service advertising (PSA) campaign designed to raise awareness about the benefits of recycling with the goal to make recycling a daily social norm. 

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