MONEY FLOWS TO NEW ENERGY BUT CLIMATE CHANGE GOES ON

Windmills, solar panels lead pack in attracting investment
Alex Morales (with Louise Downing and Ben Sills), November 25, 2011 (Bloomberg News via The Vancouver Sun)

"Renewable energy is surpassing fossil fuels for the first time in new power-plant investments, shaking off setbacks from the financial crisis and an impasse at the United Nations global warming talks.

"Electricity from the wind, sun, waves and biomass drew $187 billion US last year compared with $157 billion US for natural gas, oil and coal, according to calculations by Bloomberg New Energy Finance…Accelerating installations of solar and wind power led to lower equipment prices, making clean energy more competitive with coal…The findings indicate the world is shifting toward consuming more renewable energy even without a global agreement on limiting greenhouse gases. Delegates from more than 190 nations converge in Durban, South Africa, on Nov. 28 to discuss new measures for limiting emissions damaging the climate…"

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"The renewables boom, spurred by about $66 billion US of subsidies last year, intensified competition between wind- turbine and solar-panel manufacturers, gutting margins from the biggest producers led by Vestas Wind Systems A/S and First Solar Inc. The 95-member WilderHill New Energy Index of renewable- energy stocks has tumbled 40 per cent this year, steeper than the 14 per cent drop in the MSCI World Index.

"The zeal to replace fossil fuels…belies the failed efforts at the UN talks to broker a deal that would limit carbon dioxide emissions from coal and oil blamed for global warming. Without a deal, existing pollution caps under the 1997 Kyoto Protocol expire next year…Debate in South Africa…will include how to establish a fund that would channel an unspecified portion of $100 billion US a year in climate aid pledged by rich nations to developing countries by 2020…Monitoring and verifying emissions cuts…[and creating] a mechanism for transferring CO2- reducing technology between states…"