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YE360: Can Smarter Growth Guide China’s Urban Building Boom?, David Biello

A country to watch develop in the 21st century, China’s impact on climate change, the global economy, and development in general will be historic.

Can Smarter Growth Guide
China’s Urban Building Boom?

The world has never seen anything like China’s dizzying urbanization boom, which has taken a heavy environmental toll. But efforts are now underway to start using principles of green design and smart growth to guide the nation’s future development.

by david biello

Coal money, generated by one of the world’s largest open-pit mines, has built a new Ordos, a municipality in the Chinese province of Inner Mongolia. A modern city is rising there from the steppes, featuring monumental government buildings, an imposing museum, and row after row of apartment buildings and subdivisions, all designed to accommodate more than a million new residents. Spacious roads wait for cars to zoom between residential and commercial areas or feed into the highway that leads to the existing — and inhabited — old city, some 15 miles away. But cars and people remain sparse.

Ordos is emblematic of China’s urbanization boom, a construction frenzy unlike anything seen in the history of the planet. Today, half of the nation’s 1.35 billion people live in cities. From the outskirts of Shenyang in the cold northeast to the mountainous precincts of Kunming in the subtropical southwest, buildings are rising to accommodate the people now crowding into the 170 cities in China that host more than a million residents. Across the country, construction firms have built some 2 billion square meters of new apartments, offices, and skyscrapers annually in recent years. The national bird of China has become the construction crane.

Guardian: China's renewables surge dampened by growth in coal consumption

A coal-fired power plant on the outskirts of Datong
Datong, China: A street lamp is seen in front of the Datong second coal-fired power plant at night. Photograph: Jason Lee/Reuters

China tripled its solar energy generating capacity last year and notched up major increases in wind and hydropower, government figures showed this week, but officials are still struggling to cap the growth in coal burning, which is the biggest source of carbon dioxide emissions in the world.

At WFES2012, China's Wen Jaibao speaks of fostering cooperation

File this under “looking to take a leadership role”.

Where is the USA in this discussion? Apparently, not at the WFES.

“To reduce the problems and inequality brought by the energy and resources issues, countries in the world should take further action and exert more effort,” Wen said in a keynote speech Monday at the opening of the Fifth World Future Energy Summit in Abu Dhabi.

“China will work with the nations in the world to step up international cooperation and promote sustainable innovation to build a new world with green development and sustainable growth,” the Chinese premier said.

Record Clean Energy Investments in 2011

Bloomberg reports….

London and New York, 12 January 2012 – Global investment in clean energy reached a new record of $260bn in 2011, up 5% on 2010 and almost five times the total of $53.6bn in 2004. Investment in solar far outstripped that in wind, and perhaps of most note, US clean energy investment moved back ahead of China for the first time since 2008, according to the latest authoritative data from analysis company Bloomberg New Energy Finance. Last year also saw the one trillionth dollar invested in clean energy globally since the company started compiling data in 2004.

The record investment figures for 2011 are particularly striking because they were achieved during a turbulent year for the world economy in general and for the clean energy sector in particular. The industry has suffered severe pressure on the profit margins of manufacturers, a sharp fall in share prices, some notable bankruptcies, cuts in European government subsidy support, and a reduction in the availability of bank finance.

Michael Liebreich, chief executive of Bloomberg New Energy Finance, said: “The performance of solar is even more remarkable when you consider that the price of photovoltaic modules fell by close to 50% during 2011, and now stands 75% lower than three years ago, in mid-2008. The cost of PV technology has fallen, but the volume of PV sold has increased by a much greater factor as it approached competitiveness with other sources of power.”

A second highlight was the performance of the US in 2011. In 2008, the US was by far the largest single country worldwide in terms of total investment in clean energy, but it was overtaken by China in 2009. China increased its lead in 2010. However in 2011, the US roared ahead once again, with total investment surging to $55.9bn, up 33%; China saw investment rise just 1% to $47.4bn.

Liebreich commented: “The news that the US jumped back into the lead in clean energy investment last year will reassure those who worried that it was falling behind other countries. However before anyone in Washington celebrates too much, the US figure was achieved thanks in large part to support initiatives such as the federal loan guarantee programme and a Treasury grant programme which have now expired. The country’s principal remaining support measure for renewable energy, the Production Tax Credit, is currently also scheduled to fall away at the end of 2012 unless it is extended. There may be a rush to get projects completed in 2012, followed by a slump in investment in 2013 if it expires.”

The fuel subsidy crisis has woken Nigerians up

These protests are not just about being unable to afford fuel. People have had enough of wasteful and corrupt leadership

I remember watching Goodluck Jonathan’s speech at the start of his re-election campaign on 18 September, 2010. He promised change: “Let the word go out from this Eagle Square that Jonathan as president in 2011 will herald a new era of transformation of our country.” The canoe-carver’s son who became deputy governor, governor, vice-president and then president, without ever hustling for power, wowed us all with stories of his humble beginnings (a shoeless childhood, studying by the light of kerosene lanterns), his humility, and his seeming accessibility (via Facebook). But that was then.

Today he seems bent on recreating all the obstacles he faced all those decades ago; eager to ensure that as many Nigerians as possible study with lanterns and survive on a single meal a day. How is he doing this? By hurting the most vulnerable using one of the most ubiquitous items in the land: petrol.

A fuel price increase – and the associated increase in the price of commodities – has sparked nationwide #OccupyNigeria protests, driven largely by young people mobilising themselves via social media, mobile phones and word-of-mouth.

Nigeria is a crude-oil producing and exporting country, full of poor people – 70% of the population survives on less than $2 a day. These citizens consume more petrol than is necessary because Nigeria has consistently failed to produce enough electricity for its 150 million citizens (South Africa, with 50 million people, produces 10 times as much electricity as Nigeria), leaving much of the population dependent on petrol-guzzling Chinese generators to keep the lights on.

It gets worse. …

U.S. Shale Bubble Inflates After Near-Record Prices for Untested Fields

Thinking Marcellus Shale is just going to be a US-Domestic affair? Think again.

Surging prices for oil and natural- gas shales, in at least one case rising 10-fold in five weeks, are raising concern of a bubble as valuations of drilling acreage approach the peak set before the collapse of Lehman Brothers Holdings Inc.

Chinese, French and Japanese energy explorers committed more than $8 billion in the past two weeks to shale-rock formations from Pennsylvania to Texas after 2011 set records for international average crude prices and U.S. gas demand. As competition among buyers intensifies, overseas investors are paying top dollar for fields where too few wells have been drilled to assess potential production, said Sven Del Pozzo, a senior equity analyst at IHS Inc. (IHS)

Buying to Continue

The buying spree is likely to continue because international oil producers are eager to amass reserves in the U.S., which surpassed Russia in 2010 as the world’s largest source of gas, said Christian O’Neill, an analyst at Bloomberg Industries in Princeton, New Jersey.

‘Massive Land Grab’

U.S. gas explorers including Chesapeake and Devon Energy Corp. (DVN) are selling interests in shale fields to international energy companies such as Total and Sinopec to finance drilling on leases acquired during a “massive land grab” in 2007 and 2008 as oil and gas prices soared to record highs, O’Neill of Bloomberg Industries said.

The plunge in energy prices that followed Lehman’s bankruptcy and subsequent global financial crisis left operators like Chesapeake too poor to fulfill clauses that set deadlines for finishing wells on pain of forfeiting the leases, O’Neill said.

“These deals give the domestic exploration companies capital to drill so they won’t lose those assets, and gives the foreign companies the learning process they’re going to need to exploit shale resources on their own,” O’Neill said.

I may follow up on this more in a later report. This will definitely be an interesting bubble to follow.

(Source: theoildrum.com)

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