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GE Energy’s 3.6-megawatt wind turbines operating at the Arklow Bank Offshore Wind Park in the Irish Sea |
Energy and the Environment
GE Energy
We are at a critical juncture for
determining how future global energy
demand will be satisfied and what
the impact on the environment will
be, while still maintaining economic
growth and a reliable and affordable
energy infrastructure.
While the United States (US) has yet to
impose national mandatory controls on
greenhouse gases, many countries have
already taken action unilaterally or as
part of a multi-country agreement. The
Kyoto Protocol, the most significant
international agreement to date, calls
for participating countries to reduce
their collective emissions of six key
greenhouse gases by at least 5%
by 2012, compared to 1990 levels.
However, commitments among the
individual participating countries vary,
and progress in reducing emissions
among developed countries has been
inconsistent.
Reducing Emissions
As part of its overall plan to implement
the Kyoto Protocol, the European
Union (EU) established an emissions
trading scheme. Since 1 January 2005,
approximately 12,000 large industrial
plants in the EU have been assigned
carbon emission caps and issued
tradable allowances permitting them
to release a limited amount of carbon
dioxide into the atmosphere.
In July 2005, the US joined Australia,
China, India, Japan and South Korea in
forming the Asia Pacific Partnership, to
facilitate the development of voluntary
programmes for improving energy
security and addressing the long-term
challenges of climate change. Unlike the cap and trade approach of the Kyoto
Protocol, this Asia-Pacific programme is based on the belief that the best way to
encourage environmental improvement is to help nations economically through
the adoption of cleaner, affordable energy technologies.
While these efforts are encouraging, there remains a lack of focused, committed
leadership to address the impact of global warming on a worldwide basis. Against
this backdrop, growing consensus among business and political leaders suggests
the US should take a leadership role in this process by establishing a clear and
consistent policy on cleaner energy and taking steps to reduce the growth of, and
subsequently limit, greenhouse gas emissions.
Policy Direction
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GE Energy’s Jenbacher biogas-to-energy plant at the Wolfring agricultural estate in
Germany |
Clear policy directives and long-term strategy commitments are critical in
enabling the energy sector to make effective decisions. Commitment to a definite
policy, implemented in the form of laws or regulations, will help electricity
generators make cost-effective decisions on capital investments today that will
keep energy prices affordable in the future, while also meeting environmental
requirements.
Many cleaner energy technologies already exist or are entering commercialisation.
But significant reductions in greenhouse gases will occur only through the wider adoption of cleaner, more
energy-efficient production
and consumption technologies,
including those to capture and
sequester emissions. This must
be a primary objective of any
energy policy - policies that
do not provide technology
incentives will not be effective
in addressing the long-term
challenges of climate change.
A meaningful technology
portfolio needs to serve all
fuel sources including gas,
coal, nuclear, solar, wind and
waste gas.
In addition, new alternative
emerging technologies
need continued exploration
to expand tomorrow’s
energy landscape. Research
partnerships between industry
and government have long
been recognised as the
incubator of new technologies.
An example of this is the
partnership between GE and
the US Department of Energy
to develop highly efficient,
multi-megawatt solid oxide
fuel cell (SOFC)-based power
system that can operate on
coal.
Government policies should facilitate access to technologies that reduce
greenhouse gas emissions. One example would be the elimination of customs
duties on clean energy power generating equipment. In developing countries such
as Brazil and India, these tariffs can range from 14% to more than 50%, thus
deterring the application of clean energy technologies.
Economic Growth
It is critical to minimise the impact of cleaner energy initiatives on economic
growth. Companies that implement advanced technologies need assurance
that they will not be penalised for early adoption of new technologies prior to
mandatory controls. No country or company wants to participate in accelerating
the introduction of new technologies if this raises the bar for steps it will be
required to take in the future.
A US Senate resolution on climate change calls for mandatory measures to be
taken that will not “significantly harm the US economy”, and internationally,
growing countries like China and India will not participate in any programme that
prevents their ability to develop and improve the quality of life for their people.
Climate change policies should address energy security needs and promote fuel
diversity. They should not increase the world’s vulnerability to future energy
supply disruptions and price spikes. In the short term, this means these policies
must support a continued and productive role for all fuels including coal and
nuclear technology as sources of energy.
International cooperation is essential for a comprehensive energy policy as
climate change is a global issue. The geographic location from which greenhouse
gas emissions originate is irrelevant to the overall greenhouse effect. Given the
increases in emissions expected in developing countries such as India and China,
an international response is the only hope to effectively address the problem.
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