CLIMATE CHANGE and EQUITY: China, coal and iPods

A good article from WSJ. Fails to point its finger at how fashion in gadgets requires these mobiles and other small electronic equipment to be flown from East Asia to Europe and the USA. Forget food miles, think gadget miles!

From Wall Street Journal: Why China Could Blame Its CO2 on West
By JANE SPENCER
To understand the deadlock in the debate on global climate change, take a look at your iPod.
The vast majority of the world's MP3 players are made in China, where the main power source is coal. Manufacturing a single MP3 player releases about 17 pounds of planet-warming carbon dioxide into the atmosphere.
IPods, along with thousands of other goods churned out by Chinese factories, from toys to rolled steel, pose a question that is becoming an issue in the climate-change debate. If a gadget is made in China by an American company and exported and used by consumers from Stockholm to São Paulo, Brazil, should the Chinese government be held responsible for the carbon released in manufacturing it?
Next month, world leaders will gather in Bali to begin hammering out a successor to the Kyoto Protocol, the international treaty to combat global warming that expires in 2012. China and the U.S., the world's two largest carbon emitters, are facing mounting international pressure to participate in the new deal. But as the bill for unchecked emissions comes due, a battle is brewing over who should pay for it.
Past accords like Kyoto have looked at emissions on a country-by-country basis, requiring participating nations to reduce greenhouse gases released within their borders. In other words, the manufacturing nation pays for the pollution. But in a twist that could put more pressure on industrialized nations like the U.S., academics, environmentalists and some policy makers argue the next global climate treaty should take into account a nation's emissions "consumption." They argue the emissions are embedded in goods that move around the world through trade -- so if the U.S. imports iPods from China, Americans should share some responsibility for the pollution produced in making them.
"As China's emissions rise, everyone is pointing the finger of blame at China," says Andrew Simms, policy director of the New Economics Foundation, a think tank and environmental-advocacy organization based in London. "The real responsibility for rising emissions should lie with the final consumers in Europe, North America and the rest of the world."
The argument appeals to leaders in China, which by some tallies has already passed the U.S. as the world's largest emitter of carbon dioxide. Earlier this year, Chinese Foreign Ministry spokesman Qin Gang reminded reporters from the Western media that "a lot of the things you wear, you use, you eat are produced in China." On the one hand, Western companies are manufacturing more in China, but "on the other hand, you criticize China on the emission-reduction issue," he added. Roughly 23% of China's emissions come from the production of goods that are shipped elsewhere, according to a recent report by the Tyndall Centre for Climate Change Research in Britain.
Some economists dismiss the argument and note that China happily benefits from the arrangement. "China loves being an exporter, so it's ironic they would blame the U.S. for their exports," says Robert Stavins, a professor of business and government at Harvard University. "It's called having your cake and eating it too."
At this point, the blame-the-buyer approach is more a negotiating tactic than a serious proposal for redrafting the global-emissions map. But as new studies and reams of data become available tallying embedded emissions, the research could influence the debate over what kind of emissions cuts various nations should be called on to make.
Advocates of the consumption-based approach argue it solves one of the key problems associated with the Kyoto Protocol, known as carbon leakage. This is the idea that countries can reduce their own emissions by sending dirty industries abroad. The same countries may still import the finished goods from the developing world, creating a situation in which global carbon emissions rise, even as individual nations meet their targets.
"If you have emissions constraints, it's become very attractive to relocate dirty production to developing countries, or import products from developing countries," says Glen Peters, a researcher at the Norwegian University of Science and Technology. "You import the finished goods, and leave the pollution in China."
Technically, carbon emissions in the U.S. have declined in recent years, a fact noted by President Bush. U.S. carbon emissions fell 1.3% in 2006. But a recent study by researchers at Carnegie Mellon University suggests the U.S. may be cutting its emissions by outsourcing more manufacturing.
"If the Chinese government was held responsible for its emissions, it would raise the cost of producing goods there," says Joseph Aldy, an economist at Resources for the Future, an environmental think tank based in Washington. "Typically, when one imposes a tax, the cost gets passed back to the consumer."

CAMBODIA and Helmets: responsible business fund safety

Frrom: WWF Cambodia's Newsletter.

On your bike! But not without your helmet WWF Cambodia employees have been provided
with motor cycle helmets which they are required to wear when riding to and from work and
whenever carrying out WWF work related activities.
According to a recent article in the Asia Life magazine, wearing a helmet reduces your chance of
death in an accident by 40%. When it comes to serious injury a non-helmeted motorbike rider is three times more likely to suffer than one wearing a helmet. These statistics apply to low speed accidents, between 30-40kph – or about the speed of the average motorcycle around Phnom Penh.
Not negotiable: WWF Cambodia is taking the issue of rider safety seriously. Project managers have already warned that any WWF staff seen riding a motorbike without a helmet may be stood down. Finance and administration manager Soeun Seng said the issue is really
non-negotiable with staff. “We have bought helmets for staff who ride motorbikes because we want to try and avoid serious injury. However we have also been advised that staff may not be adequately covered by our insurance policy if they are not wearing helmets,” he said.
“We can’t let that happen. The result would be financially crippling for the victims and their family, not to mention the pain and suffering.”
So the answer is simple – get on your bike, but not without your helmet.

SOUTH AFRICA's environmental economists fail to convince the policy-makers

South Africa's short-sighted politicans have been swayed by the opinions and no doubt financial clout of preservationist consrvation charities. Here, Marine Protected Areas are to be rid of fishermen. While this might make sense in the short-term, it is rarely a long-term solution. No mention is made of compensation for these poor fishers, nor of the plans for future fishing rights. It reminds me of 1960s-style conservation - put up a fence and keep the people [who are surely the problem, right?] OUT. Conservation in southern Africa leads the world in finding simple economics and incentive-based solutions to complex people-environment problems. This is an inequitable step in the wrong direction.

Source: BuaNews by Edwin Tshivhidzo "South Africa: Marine Protected Areas Will Not be Opened to Public"

Marine Protected Areas (MPA) are critical in resuscitating ailing oceans and collapsing fish stocks, and would remain closed for recreational activities, according to Environmental Affairs and Tourism Minister Marthinus van Schalkwyk. Responding to proposals that government should open parts of the Tsitsikamma MPA for recreational fishing, the minister was clear that fishing would not be allowed there.

"The reasons for originally closing the MPA in 2000 and the prevailing underlying circumstances have not changed," he said. ,Opening this MPA to recreational fishing will set a dangerous precedent in a conservation area that is closed to all and for the benefit of all South Africans.

"Allowing a few people access for recreational purposes would negate the benefits that accrue to all. MPAs are a key part of our strategy to manage vulnerable eco-systems in a sustainable way," he said. ,The minister said protected areas also increased populations outside reserves as young species migrated.

"Because of our determined and forward-looking approach, South Africa today is among the world leaders in implementing the goals set at the 2002 World Summit on Sustainable Development. "At least 18 percent of South Africa's coastline falls within formal protected areas." In order to protect and grow marine resources, local communities have been progressively excluded from fishing in the Tsitsikamma MPA since 1975.

Minister van Schalkwyk said a decision to open this MPA would effectively have signaled a broader shift in policy on the part of government and the beginning of a new approach that is neither sustainable nor in line with our stated objectives.

He added that opening the MPA would undermine its biological sustainability."The impact of catches in the MPA will lead to a decline in abundance because many of the resident fish species are slow growing," the minister said. In 2004, government proclaimed four new MPAs, bringing roughly 15 percent of South Africa's 3 000km coastline under protection, in the process creating a framework for managing the country's fisheries and consolidating some of the world's top research, eco-tourism, sport diving and fishing sites.

Previously, South Africa had 19 marine protected areas covering approximately 11 percent of the coastline, which stretches from the country's border with Namibia in the west to Mozambique in the east. The Tsitsikamma National Park was the first to be proclaimed in 1964. Marine protected areas allow for the conservation of natural environments, while assisting in the management of fisheries by protecting and rebuilding economically important stocks.

CLIMATE CHANGE and EQUITY: should we stop expecting postal haste or embrace new efficiencies in Africa?

DAR ES SALAAM: This DHL advert is from an ex-pat guide to Dar in my hotel room. Recent research shows that over 20% of all air freight is post or documents - a lot of this is time sensitive documents such as contracts and legal documentation. Now, developing countries are being serviced with regular flights, it is hoped that information efficiencies will stimulate growth in the knowledge economies and reduce risks of doing business in Africa further still. The text here from DHL reads "whether you are sending a single document or a pallet-load of machine parts, there's one sure way to get it there on time. All day, every day, DHL delivers to all 56 countries in Africa. With our own fleet of aircraft you can be sure of a fast reliable service. And happy customers throughout Africa." http://www.dhl.com/

Climate change and aviation equity: Cambodia's tourism provides economic incentives for aviation investment

PHNOM PENH: A joint venture between regional investors and the Cambodian government in a new airline shows the power of tourism in generating interest, incentives and investment in aviation in developing countries. Jobs, indirect benefits, land price changes and increased economic opportunities for Cambodia's citizenry and its business community are all expected. This raises the importance of getting the land rights issues sorted in the country. See this article on the economic benefits of air freight for developing countries.

Cambodia develops new national airline from Travpress

The Cambodian government has signed an agreement with Indonesian companies last Friday which will see the development of a Cambodian national airline called the National Flag Carrier. Petter Sondakh, the CEO for Rajawali Group, has stated that the company invested in Cambodia because of the tourism boom the country is currently experiencing.
"Today we signed the MOU to establish the National Flag Carrier with PT Rajawali Group and PT Ancora International company, which are joint ventures from Indonesia," Cambodian Deputy Prime Minister Sok An told reporters after signing the memorandum of understanding in Phnom Penh. "This is our pride and victory that we have had our own national airline."
The new carrier is expected to commence operations in six months, with Sok An revealing that the Cambodian government will hold a 51 percent stake in the airline and will receive 30 per cent of the profits.
The airline’s board chairman will be appointed by the Cambodian government and the General Manager and CEO will be selected by the investing companies, added Sok An. Its operations have been outlined by Petter Sondakh who has stated that the airline will fly both domestically and internationally, with its first international flights focusing on the country’s current strongest markets; China, Japan and South Korea.

CLIMATE CHANGE and EQUITY: America looks to learn from development-friendly UK

USA: Farmers in developing world hurt by 'eat local' philosophy in USA

Source: San Francisco Chronicle

Increasing awareness of climate change has transformed the way Americans think about organic food. While organic consumers used to focus on how food was produced, such as whether pesticides were used, they now are also concerned about how far food has traveled to arrive at their plate. The issue is that greater distances often equate to more energy use and greenhouse gas emissions.
The preference for eating local has been popularized, among others, by UC Berkeley journalism professor Michael Pollan in the "Omnivore's Dilemma" and by Barbara Kingsolver in "Animal, Vegetable, Miracle." This "eating local" philosophy has a huge following among those consumers who buy organic food. But what about the consequences of the local food craze for farmers in the developing world who have joined the organic and fair trade movements?
We're getting a glimpse of the future of this debate in the United Kingdom, where the tension between the local food and fair trade movements is acute. Just recently, the U.K. Soil Association, a nonprofit group that promotes sustainable and organic farming, called on the British government to restrict imports of organic produce brought in by air. In a concession to the fair trade movement, this group would allow for imports from countries actively seeking to promote organic and fair trade markets within their own borders. Despite this concession, British fair trade activists are worried.
Whether the British government would ever adopt such a ban is questionable, but labeling schemes and use of concepts such as "food miles" (the distance a product has traveled to reach the store) are likely to increase consumer awareness and influence purchasing habits.
The suggestion that developing countries should promote local markets for organic produce in order to wean themselves off of export markets is a false alternative. These markets often already exist in everything but name.
Many farmers in the poorest of African nations - where I do my research - already supply local markets with their grains and produce. While not formally recognized as such, these markets are virtually organic because most poor African farmers restrict pesticide use to traditional export crops such as cotton, cacao and coffee, while local foodstuffs are grown with few or no chemical inputs.
Traditional export-oriented agriculture is problematic in many ways, but the organic and fair trade movements are beginning to diversify opportunities for African farmers in this sector. Just as Mexico and South America supply large amounts of organic produce to California, European demand for organic and fair trade products from Africa is surging. These are not just niche markets where developing world farmers can potentially gain a higher return, but these channels also promote better working conditions and the reduced use of chemicals. If the local food movements in Europe and North America reduce their demand for organic and fair trade products from afar, the most likely consequence is that African farmers who have entered these niche markets will return to producing their export crops in the conventional, pesticide-intensive manner. While local food markets can provide some income for these farmers, they still are reliant on export opportunities for the bulk of their cash income.
Although our decisions as consumers have the power to influence how our food is produced, this approach is limited. What we really need are changes in the basic rules that govern the global marketplace.
If international bodies, such as the World Trade Organization, set and enforced rules about basic working conditions and environmental standards, then we would not be relegated to trying to promote organic farming and fair labor practices via labeling schemes and informed consumption. If African countries were allowed to protect nascent industries, then they might not be so reliant on agricultural exports.
But until these changes are made, it is a cruel joke to condemn developing-world farmers to commodity crop production and then remove the only hope they have for higher returns - organic and fair trade crops and products. While the local food craze is all well and good, we should not be so quick to denounce organic and fair trade foods that are imported from the developing world. By shunning these products, we do not encourage local markets to flourish in these countries, but we condemn these farmers to the ills of conventional production for the global market (the only other real alternative at this time). We should remain open to such products in the short term, but also work for broad scale changes in the rules of the global market place to ensure that even conventional agricultural production is safe and fairly compensated.

CLIMATE CHANGE and rubber: measurement and generation

PHNOM PENH: Rubber is at the heart of both climate change measurement and its generation. Weather forecasting remains most accurate when using a latex weather balloon. Tyres and deforestation to produce these tyres are at the heart of the problem.

Weather balloon story "Upper air measurement" from Engineering News (South Africa).


It may seem odd, and a little old-fashioned, that the world’s most sophisticated and accurate in situ upper-air weather-measurement device is borne aloft by, of all things, a latex rubber balloon. But there is nothing old-fashioned about the performance that Vaisala Radiosonde RS92 delivers to Finnish national weather services and other meteorological organisations worldwide.

The most valuable data for meteorologists and meteorological researchers is that generated in situ, at the very heart of weather phenomena.

And the most practical and cost- effective way to lift a radiosonde into the atmosphere, where it can measure these phenomena, is a good old latex rubber balloon.

This is as true today – when Vaisala radiosonde technology has become one of the high-tech cornerstones of modern meteorological measurement – as it was when Professor Vitho Vaisala, a mathematician and meteorologist and the inventor of a number of meteorological instruments, intro- duced his first commercial radiosonde back in 1936.

The atmospheric data gathered by Vaisala radiosondes is a key input for the forecasting and climate change monitoring carried out by many of the world’s national weather services.

It is also used to calibrate some of the most technologically sophisticated equipment on earth – and beyond. Radiosonde data is used, for example, to calibrate equipment aboard satellites, measuring such things as the radiation emanating from the earth’s surface.

Scientists conducting meteorological research, as well as meteoro- logists working for national weather services, require very different things of their measuring equipment, but one thing they all want, and expect, is accuracy. And that is what the Vaisala Radiosonde RS92 provides.

Its unrivalled measurement accuracy has propelled its rise to become the world’s acknowledged gold standard in upper-air weather observation.

The data that it generates during its ascent into the upper atmosphere covers pressure, temperature (as low as –90 degrees Celsius at high altitudes), and relative humidity measurments, all of which are transmitted to receiving equipment on the ground, in the form of the Vaisala Digi-CORA Sounding System MW31.

Thorough testing of the RS92 radiosonde, in combination with the Digi-CORA Sounding System MW31, by the World Meteoro-logical Organisa- tion (WMO) on the island of Mauritius, in February 2005, together with acceptance tests carried out by Vaisala customers worldwide, has shown that the RS92 offers the world’s highest level of PTU measurement performance and continuous wind data availability.

CLIMATE CHANGE and ALUMINIUM: growth stock fuelled by CC concerns in China fuels incentives for expanding concessions, reduced indigenous rights

SEN MONOROM: BHP Billiton, the world's largest mining company [and sixth largest producer of primary aluminium] is prospecting in Mondulkiri - a remote province in Cambodia, eight hours drive along poor roads. Yet, it is home to the Buong people, WWF's flagship conservation project Mondulkiri Protected Forest as well as some of the poorest people in Cambodia. Plus, little of the province's 1.2 million hectares outside of protected areas are titled, remaining the ownership of the state. With aluminium prices set to quadruple during the next four years - see excellent Herald Tribune article - what does this mean for conservationists. WWF have already lost 75,000 hectares of their conservation forest concession to BHP - a company with a reasonably transparent CSR wing - see their Corporate Sustainability Report here.

Throughout the developing world, will higher prices mean deeper digging, more widespread speculative prospecting, greater scullduggery in the industry or more competition, more openness to joint ventures with indigenous peoples and a new greener coat of paint for the aluminium extraction industry?

Climate change is an indirect driver here too ... China's drive to cut power consumption [of which aluminium smelting is a huge contributor] and reduce aluminum overcapacity [China produces over 60% of the world's aluminium] may slow growth enough that the nation becomes a net importer of the metal in the fourth quarter of 2008, said Chris Ding, a Beijing-based analyst at China International Capital, the nation's biggest investment bank [from HT article]

From the Phnom Penh Post:

Bauxite under the ground in Mondulkiri where exploratory drilling began a few months ago could result in an investment worth "billions of U.S. dollars," Deputy Prime Minister Sok An announced to 600 business people attending a two-day investment conference November 9.

Prime Minister Hun Sen told the investment conference that he also had high hopes for BHP Billiton efforts. "Cambodia has significant potential in iron, bauxite, precious stones, gold," he said. But regarding oil, he said, "much of the speculation is premature."

Australian mining giant BHP Billiton over the summer began what it expects to be five years of exploratory drilling for bauxite in Mondulkiri. The company has a concession signed a year ago by Sok An to explore 1,000 square kilometers, some still dotted with unexploded ordinance and land mines from 40 years ago. Billiton said it is using land mine clearance teams in the risky areas.

From Oxfam:

"The rapid pace of the development means that we might not have a say about if it happens, but more how it happens,” said Warwick Browne, a program officer in Oxfam America’s East Asia office.

From NGO Forum:

"Now they’re just exploring, but it’s important to get people involved early on. By participating, we want to avoid environmental, social, and cultural impacts,” said Chhith Sam Ath, executive director of The NGO Forum on Cambodia, an Oxfam partner. “We also want to empower communities to have some decision-making power.”

From the United Nations office in PP:

In late 2006, a licence was granted to BHP Billiton and Mitsubishi Corporation to explore for bauxite over 100,000 hectares of land in Mondulkiri province, overlapping with the Wuzhishan concession and encompassing indigenous traditional lands. Other mining concessions affect indigenous land in Veal Veng district, Pursat and Roveang district, Preah Vihear. The growing number of mining concessions gives rise to concerns about the potential impacts on indigenous
communities, their rights and their livelihoods.

CLIMATE CHANGE, EQUITY AND SELF-INTEREST: Japan

PHNOM PENH: Japan is proposing a £1 billion 'upgrade' for Asian forests in countries polluting Japanese air. The initiative, announced by Fukuda at a summit of Asian leaders, includes soft loans and training programs over five years, and is aimed at helping the region tackle global warming while pushing forward with economic development. "For ASEAN nations, the efforts to address climate change must not hinder them from seeking development and economic prosperity". East Asian countries also will adopt an "aspirational goal" of expanding their combined forest cover by at least 15 million hectares by 2020 and fight deforestation.

From TaiPei Times. Japan unveils 'green' aid package at Asian summit

The country's environment is already being affected by pollution from China and it is offering US$2 billion to promote a `greener' East Asia Japanese Prime Minister Yasuo Fukuda yesterday unveiled a US$2 billion aid package to help developing Asian nations fight pollution and combat climate change. The initiative, announced by Fukuda at a summit of Asian leaders, includes soft loans and training programs over five years, and is aimed at helping the region tackle global warming while pushing forward with economic development.

The package "includes loan and grant aid as well as technological training, targeting East Asian countries," a Japanese official said, without specifying which nations would receive aid. "For ASEAN nations, the efforts to address climate change must not hinder them from seeking development and economic prosperity," another official said.

Yesterday's summit included the 10 members of ASEAN, plus Australia, China, India, Japan, New Zealand and South Korea. The summit issued a declaration on fighting climate change.
The new Japanese aid is aimed specifically at helping developing Asian countries tackle air and water pollution, as well as improve sewage processing.

Japan has long relied on aid as a primary instrument of its foreign policy and considers Southeast Asia a key region to exert international influence. Pollution in China is already affecting parts of western Japan, and Japan is keen to share information to help other countries clean up the environment while ensuring economic growth.

Indonesia will host a conference on a successor to the Kyoto Protocol next month in Bali. The protocol sets limits on emissions by developed nations, but the US and Australia have refused to join it because it exempts major polluters, China and India. Australia, the world's worst greenhouse gas polluter per capita, says the emission targets imposed on it could hurt Australian industries while handing competitive advantages to developing countries.

Australian Foreign Minister Alexander Downer told reporters yesterday there were signs India and China have recognized they need to take action to stabilize and reduce emissions. "They are not going to take the view that only developed countries should deal with this issue," Downer said. "I think there has been a turning of the tide in terms of China and India's position on climate change."

China's booming economy has propelled it past the US as the world's largest emitter of carbon dioxide, the atmospheric pollutant that is primarily responsible for global warming. Two-thirds of China's power comes from coal, which releases more carbon dioxide into the atmosphere than any other energy source. Over the next five years, the country expects to complete at least one new coal-fired power plant a week. In India, where several automakers are competing to provide affordable cars to the country's enormous middle class, there were 300,000 cars registered last year in the capital New Delhi alone. The government acknowledges that it expects the country's emissions to grow fivefold by 2031, which would put India about where the US is now.

The East Asia Summit was expected to call on members to work to reduce by at least 25 percent their energy intensity -- the amount of energy needed to produce a dollar of gross domestic product -- by 2030. East Asian countries also will adopt an "aspirational goal" of expanding their combined forest cover by at least 15 million hectares by 2020 and fight deforestation.

ASEAN's members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

VIETNAM: safety in transit - new law economics bite as helmet makers reap returns

HANOI: New nationwide safety laws mean all morocyclists must wear helmets. The deadline is 15 Dec 2007 and worried about police crackdown, customers rush to buy them, pushing up prices. There are benefits to being a first mover here and to being a canny stockpiler. Costs to late deciders, those with big heads [33% premium! - I pity all brainy Vietnamese economists!] and potentially those who flout this law. Will the risk of detection outweigh these inflated prices? I am sure some clever economist will be testing this out - please let me know the outcome! Important analytical questions include taxi fare rises, demand for taxis [cheap already], imports, illegal helmets, mock helmets, etc.

Helmet sellers take public for a ride from VietNamNet.

Safety helmets have increased in price by VND30,000-80,000, a jump of 30-40%, over the past two months, as customers rush to buy them in anticipation of the traffic law requiring their usage in December.

Customers rush to buy helmets as the December 15 deadline approaches for the mandatory helmet law. In response to the high demand for helmets, retailers have raised prices 30-40% in the past two months.Honda brand helmets cost VND290,000 each, up from VND170,000-180,000 in October while Protec helmets are going for VND165,000 to VND215,000 and Amoro VND95,000 to VND150,000.

Taiwanese-made helmets for children that have eye-catching sizes cost VND180,000 to VND210,000. Safety helmets will likely be even more expensive as people tend to wait until the last minute to buy them, said a distributor. Under a recent regulation of the National Committee for Traffic Safety, motorcyclists have to wear safety helmets starting December 15 when riding motorbikes on all roads and streets nationwide. The deadline is fast approaching, and more and more people are rushing to buy good quality helmets that many fear are in short supply.
It is next to impossible to buy a helmet for less than VND150,000, said Duong Huu Khanh, an employee at a navigation company.

He said an Andes brand helmet worth VND120,000 last month now costs VND180,000 for a small one and VND210,000 for a large one with sellers citing a supply shortage as the main reason. A number of Protec showrooms are currently out of stock as the firm reduces its distribution channels. Local distributors said an undersupply is unlikely given the huge number of safety helmets available from domestic and foreign sources.

Nguyen Hoang Anh, Protec’s deputy general director, said the company has been operating at full capacity with additional employees working to get orders finished by the end of the year. "The company produces an average of 1,500-2,000 safety helmets a day," he said.
Vo Van Duc Bay, deputy director in charge of business at Cho Lon Plastic Co, said the company distributes 1,000 helmets a day and will increase its supplies if demand surges. Sai Gon Plastics Joint Stock Co said the company is producing 10,000-15,000 helmets a month, but that capacity can reach 50,000 a month. People will not likely be left without safety helmets because corporate clients have ordered up to 80,000 for their employees, who would not have to buy one for themselves, said an executive of a joint venture firm involving the production of LH helmets.

Le Van Dien, sales director of Dai Viet Trading and Service Joint Stock Co., agreed, saying that in addition to 20,000 helmets in stock, the company markets 1,000-1,500 daily. Legally and illegally imported helmets are also available on the market. A HCM City-based importer specialising in importing helmets from the US and Taiwan said it had rented a warehouse months ago to stockpile helmets.

BIOFUELS and CAMBODIAN FORESTS: fuelling felling, grabbing and odd economic arguments

PHNOM PENH: jatropha is being heralded as the silver bullet for biofuel production, sustainable rural livelihoods, small-scale alternatives to agriculutre and forest use, as well as a great way for poorer developing countries to access international funds. Of course, it is also a great way to fox communities, dodge legal requirements and make supernormal profits under the government and NGO radar.

Van Der Horst Biodiesel, a Singapore company that has invested in small pilot plantations of 1,000 hectares or less in China and Cambodia. Van der Horst is now negotiating for an additional 20,000 hectares in Cambodia, 10,000 hectares in Vietnam and 25,000 hectares on the Indonesian island of Seram. The company's business plan calls for it to build a biodiesel plant in Singapore, with a 200,000-ton annual production capacity, to process jatropha from its plantations in the region

Read mnore here in International Herald Tribune.

ERASED FORESTS: rubber, biofuels and rural communities

PHNOM PENH: rubber demand is rising, Chinese, Cambodian and Korean companies are gaining plantation concessions in Cambodia. Yet, with land rights ill-defined, activists fear for local communities losing land, losing access to livelihoods, losing future benefit-sharing opportunities and becoming even more marginalised. With 60% of rubber for car tyres, and fast development in SE Asia, this is an issue that requires further analysis and attention. Will climate change help reduce this demand? will technology mean greater re-use and longer tyre lives? will fashion mean we change our cars for newer models more often?

Article from India's Zee News: Rubber demand surging with scarce supply

With buyers the world over scouring for natural rubber and producing countries struggling to increase supplies, industry will soon feel the bite of spiralling prices. Though the market has been very much in balance in 2007, demand could exceed supply as early as next year as several factors conspire to curb output growth in the main producing countries of Thailand, Indonesia and Malaysia. These include delays in planting caused by erratic weather, limits in cultivable land, labour supply constraints, higher wage costs and religious insurgency. "There is no single piece of evidence to foresee a decline in the price. All factors are favourable for an increase in price," said Jom Jacob, senior economist of the Association of Natural Rubber Producing Countries. "There are well-defined limits for natural rubber supply to increase at least until 2012. So, the tight supply situation is likely to continue," he said. International prices have risen four-fold since hitting 30-year lows in 2001, when there was a supply glut. Some analysts say they expect rubber to rise around 18 percent to $3 a kg next year. Thai RSS3 grade, often used as the benchmark for physical prices, stood at USD2.55 a kg on Friday. "It`s possible the price will reach $3, although I would prefer to refrain from mentioning any specific number. Strong demand, mainly from China, is one of the factors that will push up the price," said a Tokyo-based analyst. China boom The recovery in rubber prices and continued robust demand have taken place on the coat-tails of China`s booming economy. Tyres account for 60 % of the country`s rubber consumption, according to China Rubber Industry Association. As the world`s largest consumer, China last year imported 1.6 million tonnes of natural rubber, which is used in everything from tyres to sports shoes. China`s rubber consumption is to rise 12 % in 2007 from 2.1 million tonnes last year, according to the China Rubber Industry Association. China is emerging as a major exporter of cars and production of tyres has grown above 20 percent a year over the past few years. And last year, China outstripped Japan to become the world`s number-two auto market, with sales of 7.2 million vehicles and output of 7.3 million. "There`s a close relationship between economic growth and domestic consumption. From 2007 to 2010, I anticipate demand growth in China at between 7 and 10% each year for natural rubber," said Jacob of the ANPRC. Deficit looms "We expect global consumption to rise to 9.7 million tonnes in 2007, which is an increase of around 4%. Next year`s may reach around 10.1 million tonnes," said a London-based analyst. "Of course there`s global economic growth, and demand from the tyre industry is obviously the key factor. Also, within the increase in global demand, we`ve got the increase in GDP and the increase in mining activity that pushes up demand for tyres." With consumpution on the rise, supply will be a problem for the market. Synthetic rubber remains expensive as it is made from pricey crude oil. The International Rubber Study Group put global natural rubber output at 9.7 million tonnes in 2006 but output this year and next remains constrained. Output in Thailand, the world`s largest producer, may fall 1.5 % to about 3 million tonnes in 2007 from a year earlier because heavy rains have disrupted tapping. Production has also been hurt by separatist violence in Thailand`s southern provinces, which account for 10 percent of the country`s output. The second-largest producer, Indonesia, could see its output unchanged at 2.8 million tonnes next year, due to climate change and poor yields. Malaysia, the third-largest producer, may lose 250,000 hectares of plantations between 2008 and 2020 because of rapid industrialisation and expansion of its palm oil plantations as demand for biofuel drives prices to record highs. With emerging producers such as Vietnam, Cambodia and Laos, also struggling to boost output due to the lack of suitable land, rubber manufacturers will face higher costs. "Everybody cares about rising prices but there`s very little choice. There`s not much you can do very quickly to reduce your exposure to natural rubber consumption. I think we`ll have a deficit starting next year," said the London-based analyst. "Going forward, we`re looking at the deficit running to probably 2013. We don`t dare forecast the shortfall but fundamentals are driving the direction, while the extent of the movements in prices is probably driven more strongly by speculators." India, whose economy has grown at an average of 8.6% in the past four years, grows rubber but also imports the commodity from Southeast Asia to fill a supply gap. "A surge in the natural rubber price is inevitable with the widening of the demand and supply gap in the coming few years," said Arup Chandra, head of research and development at Apollo Tyres, one of India`s main tyre makers. India`s tyre industry has an annual turnover of USD4.5 billion and production of passenger cars is expected to grow 18 percent each year from 2006 to 2010.

CLIMATE CHANGE IS UNDER THREAT: from public opinion

HANOI: it seems climate change may be under threat from fickle public opinion. While this is not a contra-CC article, it verges on it, taking a market-based approach - "if the market isnt fixing it, it aint broke"! "Notwithstanding the positive contributions (and potentially healthy financial performances) of the companies included in the Climate Change-Global Warming indices, the unavoidable truth is that their fortunes in the stock markets are ultimately linked to people's belief in global warming and its degree of severity."

It reads:

In the past few months, there has been a flurry of activity in the "green investments" arena. In August, Credit Suisse (NYSE:CSR) unveiled its Global Warming Index, with HSBC throwing its hat into the ring just weeks later with its Climate Change Index. Both innovative devices allow investors direct plays on the stocks of companies that should, in principle, benefit from the altered climatic conditions that seem to surround us these days. While Credit Suisse has chosen to select a basket of 40 firms, HSBC has opted for a larger selection of 300 names, with both indices focusing on renewable and alternative energies.

Should investors pay heed and punt on those companies bent on making millions out of the new weather realities? The easy answer would seem to be yes, definitely. Few would nowadays doubt that climate change is not only a reality, but a severe problem that needs to be tackled with the utmost urgency, thus significantly enhancing future demand for things like ethanol or wind turbines. And there is the ethical kicker to boot. By betting on the health of green companies, you would not only be destined to reap millions but also contribute to the clean-up of the planet. Who could resist that?

And yet, it seems difficult not to detect some potential risks associated with such investment strategy. It is not so much that the products and services offered by the names included in vehicles like the new indices may not end up being heavily sought-after. Rather, the key risk lies in the fact that climate change is such an emotional issue, almost entirely driven by thinly informed perceptions. Semi-religious for many, these perceptions are prone to dramatic shifts in sentiment for the most irrational of reasons. If chaotic, wild-swinging human decision-making processes are a concern for every investor, the semi-fanaticism that surrounds the global warming debate makes green investments particularly exposed.

Notwithstanding the positive contributions (and potentially healthy financial performances) of the companies included in the Climate Change-Global Warming indices, the unavoidable truth is that their fortunes in the stock markets are ultimately linked to people's belief in global warming and its degree of severity. If the outside world overwhelmingly believes that global warming and climate change are both real and can have severe consequences, green companies can benefit in the markets. But if, for whatever reason (perhaps new scientific evidence, perhaps a bout of cold weather, perhaps a tiredness about Al Gore's relentless preaching) the perceptions begin to change and people stop viewing climate change as that big a problem, green stocks could suffer indiscriminately.

The inner complexities of the issue are quite possibly alien to many of those faithfuls who bow at the global warming altar. After all, how many of today's anti-climate changers have really examined the scientific evidence, or even listened to all the relevant points of view? How many became converted simply because that seemed the appropriate, trendy thing to do? Such disinformed, passionate, animal-spirited decision-making tends to bode ill for any market, as any indication that the fad may be built on shaky foundations could trigger a devastating and sudden abandonment of investment faith.

In essence, the global warming debate seems mostly dominated by flimsy perceptions and borrowed wisdom, not fundamental analysis. When so many opinions are determined by emotions and voluntary submission to faddish popular conventional wisdom, they become extremely vulnerable to a drastic shift on very short notice.

Paradoxically, such a shift could take place in the green investments arena even if global warming turns out to be as nasty as originally predicted. All that matters is whether people stop believing in climate change, not whether climate change does actually take place.

Several recent events (including historical snowfalls in Argentina and South Africa, sceptical comments by NASA's chief, and a court resolution in the UK citing the bias of Al Gore's film) provide examples of the kind of ammunition that could cause a change in perceptions. Were global warming to start being seen as less severe or less threatening, the stocks of green companies could be indiscriminately thrown down the toilet, independently of the financial health of the company or the soundness of its strategy.
Climate may change in public opinion By Pablo Triana. From the FT.
Pablo Triana directs the Centre for Advanced Finance at Instituto de Empresa business school, Madrid

CLIMATE CHANGE, EQUITY and SPECIES: Sanctuary for cranes, Cambodia

The TallEconomist will be in Cambodia - wondering how the latest fad in conservation will work with hungry people and less food security among climate change:"wildlife officials had been dispatched to tell local fishermen and farmers not to hunt the cranes for food" ...

PHNOM PENH, Sept 14 (Reuters) - Cambodia has established an 8,000 hectare (20,000 acre) sanctuary in flood plains near the Mekong Delta to protect the rare Eastern Sarus Crane, Environment Minister Mok Mareth said on Friday.Nearly 300 of the red-headed, 1.3 metre (4 feet) tall birds have been found in two districts of Takeo province near the border with Vietnam. Conservationists said in 1999 there may be fewer than 1,000 of the birds left in the wild."We need to protect these beautiful creatures," Mok Mareth said, adding that wildlife officials had been dispatched to tell local fishermen and farmers not to hunt the cranes for food.The cranes have also been found in the northwestern province of Banteay Meanchey province, 300 km (185 miles) northwest of Phnom Penh, in an old Khmer Rouge reservoir.Thanks to a similar government protection and sanctuary scheme introduced in 1999, that population had grown from 220 to 495 this year, officials said.

CLIMATE CHANGE AND EQUITY: sugar sugar

BBC Radio Four's The Food Programme today was about the changes in the EU's sugar regime, with reporting from Barbados.
If you have good-quality internet access, you can still hear here. It is 24 minutes long.
Or if you are in the UK, you can hear a slightly longer version of it broadcast again on Radio 4 at 16.00 GMT on Monday, November 12th.

Ghent six-days: The greenest way to travel and party

Ghent six days. There is no greener way to travel. Book now to avoid disappointment here!

CLIMATE CHANGE, EQUITY and APATHY: UK consumers do not put their MONEY where their mouths are!

Article from Freshinfo.com reporting the ZERO impact on sales of fresh produce of airfreight stickers. The question the TallEconomist must ask is -- what would the consumer response have been if the stickers had indicated the "sustainable development" cost or benefit of the product?

Tesco and M&S admit airfreight apathy

November 10, 2007
Freshinfo 7 November 2007
Controversial airfreight stickers added to packs of fresh produce by Tesco and Marks & Spencer since April have had no impact on sales, the two retailers have admitted.
According to The Grocer, while neither retailer gave away the exact figures, they both said there was no direct evidence to suggest consumers were so concerned about their carbon footprints that they were turning away from airfreighted produce.
The news became clear during the Soil Association's consultation into whether or not to bar organic status from produce that had been flown to the UK.
Experts suggest consumers either do not care about the carbon footprint of such products or misunderstand the link between the label and the product's environmental impact.
But Tesco said the situation may have changed since sales figures were reviewed in September, and that it was still committed to developing more detailed carbon labelling for shoppers.
"It's still early days for the scheme," said a Tesco spokeswoman. "These findings are not in the same league as carbon labelling, where we haven't changed our thinking. Airfreight is a very immediate, visual thing, while carbon labelling will be much more detailed, so the two can't be compared. We are still committed to establishing an industry-wide carbon labelling system with the Carbon Institute and the BSI."

CLIMATE CHANGE AND EQUITY: Africa caught in the tough ‘food miles' war with UK

Source: Business Daily (Kenya). by Zeddy Sambu

Kenyan stakeholders re-ignite the debate over how to balance the socio-economic development benefits from the export horticultural trade with Europe with the carbon costs. One telling fact is that this needs to grow for genuine economic benefits to be accorded to Africa and to have any chance of filtering down to the poorest. Indeed, it is reported that a one per cent increase in Africa's share of global trade would deliver seven times more than the continent receives in aid. This is a figure to bear in mind when African trade is put under threat by tokenistic gestures such as "food miles" ...

Every day, a cargo plane leaves the Jomo Kenyatta International Airport in Nairobi with Kenya's agricultural produce destined for the European market. But it lands in Europe as a surging air-miles debate continues threatening to curtail growth in the agriculture sector.
Mr Joseph Muchemi, the Kenyan high commissioner in London, is sitting right at the centre of the storm and is fighting back.
"As an exporting country, we feel that air freight has been unfairly picked out as being the prime contributor to carbon emissions and that the concept of ‘food miles' as indicative of environmental sustainability is misleading," Mr Muchemi said in a statement sent to Business Daily.
The air miles debate - introduced early this year - has now broadened to include the spectrum of energy use and framing methods, with local players term as crude, the efforts by the European Union to introduce new standards.
Fresh campaigns aim to shift attention from the much hyped climate change debate to the contribution of trade in fresh produce making the fight against poverty and economic welfare of growers in the developing world.
Besides , African growers are facing the commercial standards threat set by individual EU member countries and supermarket chains.
The food miles concept, researchers say, needs reform, to include social and economic development aspects.
While UK researchers have disagreed with retailers' design of a new aeroplane label on exports, on Friday, the debate, took a new twist to include farming methods dashing Kenyan hopes on the fight against climate change and boost of revenue from one of Kenya's leading foreign exchange earner.
The Soil Association, Britain's largest organic food association, said it will continue to put its stamp of approval on products sent by air, but only if the food sales help poor farmers.
The official certifier of over 70 per cent of organic produce sold in Britain, the lobby appeared keen to cut down on airfreight with intention to see a total ban in the future.
Air freighted organic produce, it said , must, henceforth, adhere to stricter ‘ethical' policies in order to be accredited and sold in the key market that absorbs 65 per cent of Kenya's fresh fruits, vegetables and flower exports. Previously, the environmental lobby debated refusing to certify products shipped by air freight because of high carbon emissions from planes.
But the group says details of the proposal would be open to discussion throughout 2008 and would become effective January 2009.
"Our aim is to minimise air freight by encouraging alternatives, such other forms of shipping, and creating local organic markets," Anna Bradley, chairwoman of the Soil Association Standards Board, told reporters in London last week. "We recognise that building alternative markets that offer the same social and economic benefits as organic exports take time," she said.
Experts are warning that more restrictive practices will damage its organic export market, which is growing in demand in the UK.
Although developing markets such as Kenya use less carbon intensive farming methods, analysts say collapse of the horticulture sector could see the country lose Sh114 billion in trade and investment.
Environmental organisations like Greenpeace, which earlier said it was concerned about the large carbon footprint created by food shipped via air freight, had been involved in consultations over the new standards, Bradley said. Nearly 95 per cent of Kenya's exports to the UK are sent by ship, which is far less intensive in terms of carbon emissions.
Campaigns unveiled in July by Kenyan flower exporters in the height of the climate change battle, introduced the ‘Grown Under the Sun' label to counter the campaign fronted by UK traders and environmental lobbyists.
"All environmental and social aspects need to be analysed, and trade-offs assessed. Singular comparisons do not necessarily help us to generate good policy," said Jane Ngige, the Kenya Flower Council's chief executive.
The local horticultural industry and its exports to the UK currently supports around one million Kenyans and generates at least £100 million per year to play a key role in its economy.
New research findings by the International Institute for Environment Development (IIED) show that developing markets such as Kenya actually use far less carbon-intensive farming methods, and so the broader picture looks very different.
It estimates that air-freighting from sub-Saharan Africa accounts for 0.1 per cent of the UK's total carbon emissions while around 65 per cent of emissions relating to food are caused by transportation within Britain.
Gareth Thomas, the UK Minister for Trade and Development, last week, noted that driving around six miles to a supermarket to buy some Kenyan green beans, emits the same amount of carbon as air-freighting that pack of green beans.
"If you consider that the majority of Kenyan fresh produce is freighted in the hold of passenger aircraft, then the emissions relating to that pack of green beans is even less," said Mr Thomas.
IIED says before targeting developing countries such as Kenya whose emissions per capita are 0.9 tonnes as opposed to Europe's 22 tonnes per capita, the UK needs to prioritise addressing domestic road transport and energy use first, then aviation.
Estimates of doubling of air travel in the next 20 years, coupled with high carbon emissions, and the exacerbating effect of "radiative forcing", make aviation cuts, a necessary part of the solution and realise targets under Kyoto Protocol.
The Kyoto Protocol recognises the need for equity and economic development for developing countries in the transition to a low-carbon future. The UK's carbon footprint is largely domestically generated, the IIED report notes. But the main share of increased flights appears to be passenger traffic. In the UK, passenger flights account for 90 per cent of emissions from air transport, and international freight for five per cent.
"There is no firm evidence that UK if consumers are not eating imported produce, fewer planes would fly today or in future. Indeed, an annual expansion of six per cent in air traffic in all sectors air freight imports, passenger volumes, and dedicated freight," says the London-based IIED.
Only 1.5 per cent of imported produce arrive in air transport but that portion produces 50 per cent of all emissions from fruit and vegetable transportation.
Currently, average carbon dioxide (CO2) emissions globally stands at 3.6 tonnes globally, the UK (9.2 tonnes) and Africa, one tonne.
"African figures are skewed towards oil-rich countries, and only two countries exceed the global average. Many African countries are feeling the force of climate change impacts, the root cause of which was produced in developed countries" IIED's James McGregor and Bill Vorley, authors of the ‘Fair Miles? The Concept of "food miles" Through a Sustainable Development Lens', say.
They want the ‘Food miles' campaign to be replaced by the new concept of ‘fair miles.'
The earlier concept, it says, is blind to social and economic benefits associated with trade in food, especially from developing countries, while previous inclusion of sub-Saharan Africa in these high-value markets has been a success story.
UK consumers spend over £1 million (about Sh137 million) at retail every day on produce from Kenya, Ethiopia, Tanzania, Zambia and Zimbabwe, that supplies 40 per cent of air freighted imports, and is now growing despite the threats. Trade, it notes, is dependent on the UK consumer, and also on air-freight, bringing climate change impacts of this trade into the development equation.
The new findings show that it is only through the sale of fresh produce that UK consumers will interact with rural Africa. Poor African countries rely on the UK market to support their domestic industry. By not buying the produce, UK, researchers say, will be guarding against an insignificant less-than 0.1 per cent in CO2 emissions.
"Economic development for the poorest in a low carbon future means expanding emissions for some," says the report in part. It adds that over one million livelihoods in Africa are supported by UK consumption of imported fresh fruits and vegetables.
On the contrary, ‘Food miles' presents an argument to buy commodities which have travelled the shortest distance from farm to table, and to discriminate against long-haul transportation, especially air-freighted goods.
The long-distance transport of food is associated with additional emissions due to increased transportation coupled with greater packaging, as well as a disconnection between the public and local farming.
It is estimated that annually, the UK "imports" 189 million cubic metre of African water as a result of the import of green beans, which is enough to provide 10 million Kenyans with drinking water.
An estimated £200 million is injected into rural economies in Africa through trade with the UK alone. Africa is a relatively efficient "investment" by the UK in allocating its carbon emissions to support livelihoods when compared to the efficiency of the remaining 99.9 per cent that is supporting 60 million UK residents.
Unlike many western farming methods, machinery is rarely used and Kenya's indigenous geothermal energy provides a sustainable way to maintain humidity on flower farms. This year, the world's largest commercial project using solar panels for providing energy for farms was launched in Kenya.
Water recycling systems on farms encourage plant growth and supports biodiversity.
Similar studies have been conducted with refrigerators on ships that use more energy keeping the produce fresh over longer periods of time than a short journey by aeroplane.
The UK has always encouraged trade relationships with Kenya and the countries have been major trading partners for generations.
While the Kenyan economy and development is greatly enriched by high-value organic exports to the UK, Kenya is also leading the way in the East African Community in trading closer to home and will continue to build upon this local trade.
It is well reported that a one per cent increase in Africa's share of global trade would deliver seven times more than the continent receives in aid. This is a figure to bear in mind when African trade is put under threat.
There are clear socio-economic benefits of organic farming in Kenya and it would be beneficial to nurture Kenyan organic farming.
"British farmers currently have access to, among other things, subsidised diesel fuel for machinery which perhaps does send out the right message about emissions and climate change," says KFC.

CLIMATE CHANGE AND EQUITY: A new era for global citizenry?

Saleemul Huq from IIED at Gristmill. It is time for a new era of global citizenry in which people around the world come together to both take and demand effective action.

Three-quarters of people lie to BBC about green issues

An article today on the BBC demonstrates the depth of lying worldwide about personal climate change mitiagtion. The BBC report 83% of people worldwide reported they are willing to make personal sacrifices to be greener.

Previous surveys have shown that 40% of people in the UK say they are willing to make changes for the environment, and less than one-tenth of them actually will do when making financial dec isions (i.e. 4%). Assuming that lying is a universal trait (and not confined to British people), this means that of the 83%, around 8% of these will take decisions that will cost them but favour the environment. BUT, a full three-quarters are lying ...

But, I have yet to see an article or survey work looking at the environment/ development trade-offs. What about climate change and equity? An unanswerable question?