Sugar backs green energy

But wind farms are where the jobs are.

Lord Sugar has today called on the government to set a target for the decarbonisation of Britain’s electricity sector by 2030 in a bid to clean up one of the country’s largest sources of carbon emissions and remove uncertainty for companies and investors in the sector.

Already a hotly debated topic in parliament, the coalition government has been rife with in-fighting since the end of last year, after Chancellor George Osbourne firmly rebuffed a suggestion from the Committee on Climate Change, championed by Liberal Democrat energy secretary Ed Davey, to set a target to cut the power sector’s carbon emissions from 500g of CO2 per kilowatt hour to 50g CO2/kWh by 2030.

Osbourne’s claim that such a bill would damage investment in Britain’s healthy oil and gas sector was rejected by Tim Yeo, the Tory energy committee chairman, who said at the time:

“If the carbon cuts do not come from the electricity sector then deeper cuts will need to be made elsewhere, and if the reductions are not made in the 2020s then they could become even more expensive,” and has since suggested an amendment to the energy bill which would force coal and gas-fired power plants around the country to close over the next 18 years, unless fitted with carbon capture and sequestration equipment.

Lord Sugar has now added his weight to the argument, claiming Britain risks falling behind in renewable energy investment and the economy could benefit hugely from spending on green energy. “This country needs jobs, and the renewable industry could help unlock our crippled manufacturing sector,” he said.

While it’s true Britain has undoubtedly benefitted from this kind of investment, most notably in wind energy, the extent to which it has aided our ailing manufacturing sector is perhaps being overstated. Siemens, Vestas, GE et al., the industry leaders in wind turbine manufacturing, all produce their wares overseas, which would do little to aid job creation and boost manufacturing in this country.

Where the difference could really be felt though is in the installation and operation of wind farms, of which there is currently a healthly pipeline of work approved to take place over the next decade.  Already a world leader in offshore wind power, the UK currently boasts 3,321MW of electricity generation capacity from 20 offshore wind farms, with a further 31GW worth of projects already leased to developers. The industry currently employs around 4,000 people, but with construction on numerous new projects due to start from 2014 onwards, this figure could swell substantially.

Despite the obvious benefits for the job market, without the government’s support for renewable energy, most types of green energy, particularly offshore wind, simply cannot compete with conventional energy sources on a cost/kWh basis. Offshore wind currently stands at around 15.0-16.9pence/kWh to generate, whereas the cost of gas-fired power generation is considerably lower at around 8.0pence/kWh.

It’s true that the cost of offshore wind will come down over time, but without a firm target for carbon reduction enshrined in law, plus a mountain of other economic problems facing the government, it’s difficult to see how this momentum can be maintained.

The problem is exacerbated by the current competitiveness of coal prices on the international market, thanks in large part to demand falling in the US as it has turned to shale gas. This has caused the UK’s share of electricity generated by coal to reach 40 per cent, the highest since 1996, with emissions rising by 3.9 per cent in the last year alone. The Environment Agency’s Lord Smith has called Britain “the dirty man of Europe” and insisted the government must act to curb its rising emissions from coal, or risk threatening its attempts to tackle climate change. “We’re in a dash for coal that’s completely unsustainable (and) the government must ensure it doesn’t continue,” he said.

It’s not only coal that is giving cause for concern, with UK firm IGas today announcing that as much as 170 trillion cubic feet of gas could be recoverable from fracking in northern England. IGas chief executive Andrew Austin said; “The licences (we own) have a very significant shale gas resource with the potential to transform the company and materially benefit the communities in which we operate…Our estimates for our area alone could mean that the UK would not have to import gas for a period of 10 to 15 years".

Shale gas is extracted from bed rock by the injection of high pressure water and sand, which critics argue can cause dangerous seismic activity. Already having revolutionised the energy market in the US, the controversial fracking technique could yet do the same in the British energy sector.

With such attractive conventional sources of energy available for investment, the government has a difficult task in balancing the economic benefits and the environmental imperative of clean green energy. It is clear on which side of the fence Lord Sugar sits; “As someone who has spent over 45 years developing technology, it is disappointing to see the government has not seized the opportunities offered by this innovative sector… Without a 2030 decarbonisation target, the energy bill will be aimless, leaving businesses and potential investors with prolonged uncertainty and no real commitment from the politicians who were supposed to be the greenest government ever.”

With Tim Yeo’s proposed decarbonisation amendment to the energy bill gaining support from Labour, the SNP and Plaid Cymru, plus a number of Liberal Democrats, despite their official backing of the government’s position, the winds of change may yet force the Torys to follow suit and give investors the confidence to build on the ground work already achieved in the wind sector over the past decade.

Alan Sugar. Photograph: Getty Images

Mark Brierley is a group editor at Global Trade Media

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Building peace in a dangerous world needs resources, not just goodwill

Conflict resolution is only the first step.

Thursday 21 September is the UN-designated International Day of Peace. At noon on this day, which has been celebrated for the last 25 years, the UN general secretary will ring the Peace Bell on the UN headquarters in New York and people of good will around the world will take part in events to mark the occasion. At the same time, spending on every conceivable type of weaponry will continue at record levels.

The first couple of decades after the end of the Cold War saw a steady reduction in conflict, but lately that trend seems to have been reversed. There are currently around 40 active armed conflicts around the world with violence and suffering at record levels. According to the 2017 Global Peace Index worldwide military spending last year amounted to a staggering $1.7 trillion and a further trillion dollars worth of economic growth was lost as a result. This compares with around 10 billion dollars spent on long term peace building.

To mark World Peace Day, International Alert, a London-based non-government agency which specialises in peace building, is this week publishing Redressing the Balance, a report contrasting the trivial amounts spent on reconciliation and the avoidance of war with the enormous and ever growing global military expenditure.  Using data from the Institute for Economics and Peace, the report’s author, Phil Vernon, argues that money spent on avoiding and mitigating the consequences of conflict is not only morally right, but cost-effective – "every dollar invested in peace building reduces the cost of conflict".

According to Vernon, "the international community has a tendency to focus on peacemaking and peacekeeping at the expense of long term peace building."  There are currently 100,000 soldiers, police and other observers serving 16 UN operations on four continents. He says what’s needed instead of just peace keeping is a much greater sustained investment, involving individuals and agencies at all levels, to address the causes of violence and to give all parties a stake in the future. Above all, although funding and expertise can come from outside, constructing a durable peace will only work if there is local ownership of the process.

The picture is not wholly depressing. Even in the direst conflicts there are examples where the international community has help to fund and train local agencies with the result that local disputes can often be settled without escalating into full blown conflicts. In countries as diverse as East Timor, Sierra Leone, Rwanda and Nepal long term commitment by the international community working with local people has helped build durable institutions in the wake of vicious civil wars. Nearer to home, there has long been recognition that peace in Ireland can only be sustained by addressing long-standing grievances, building resilient institutions and ensuring that all communities have a stake in the outcome.

At a micro level, too, there is evidence that funding and training local agencies can contribute to longer term stability. In the eastern Congo, for example, various non-government organisations have worked with local leaders, men and women from different ethnic groups to settle disputes over land ownership which have helped fuel 40 years of mayhem. In the Central African Republic training and support to local Muslim and Christian leaders has helped reduce tensions. In north east Nigeria several agencies are helping to reintegrate the hundreds of traumatised girls and young women who have escaped the clutches of Boko Haram only to find themselves rejected by their communities.

Peace building, says Vernon, is the poor cousin of other approaches to conflict resolution. In future, he concludes, it must become a core component of future international interventions. "This means a major re-think by donor governments and multilateral organisations of how they measure success… with a greater focus placed on anticipation, prevention and the long term." Or, to quote the young Pakistani winner of the Nobel Peace Prize, Malala Yousufzai: "If you want to avoid war, then instead of sending guns, send books. Instead of tanks, send pens. Instead of soldiers, send teachers."

Redressing the Balance by Phil Vernon is published on September 21.   Chris Mullin is the chairman of International Alert.