Monthly Archives: November 2012

President of the World Bank. Getty

Jim Yong Kim, World Bank president, has made an urgent plea for action to address the “devastating” risks of climate change as the development body releases a stark assessment of the potential impact of rising global temperatures.

“It is my hope that this report shocks us into action,” Dr Kim said in the foreword of a study the bank commissioned to look at what would happen if the world warmed by 4°C from pre-industrial levels.

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Scroby Sands offshore wind farm in Norfolk, just two miles off Britain's east coast. Image by Getty

A good rule in politics is never to take on those who care about a particular issue more than you do. I was in Norfolk at the weekend and came face to face with the new force in UK politics – a regiment of middle-aged ladies burning with indignation and determined to use their considerable powers of organisation to protect what they hold dear.

The issue at stake is not Europe, which is the obsession at Westminster, or the recession, or gay marriage. The issue is the growth of wind farms and the march across the beautiful Norfolk coast of developers planting the farms in order to milk the generous subsidies on offer. Norfolk, of course, is not an isolated case. Read more

Pipeline will be laid on the bed of the Black Sea

Gazprom has been putting the final investment agreements in place for the South Stream project, clearing the way for construction of the 63bn cubic metres a year pipeline to Europe to begin next month. Never mind that demand for Russian gas in Europe is falling, or the $19bn cost of South Stream. The pipeline will help free Gazprom from dependence on Ukrainian transit pipelines and improve European energy security.

Gazprom and its foreign partners took a final investment decision on the 900km offshore section of South Stream at a meeting in Milan late on Wednesday. The pipeline will be laid on the bed of the Black Sea and will link southern Russia with the coast of Bulgaria.

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Wholesale gas market faces investigation. Getty

The announcement of an inquiry into the wholesale gas market in the UK reflects the increasing concern about the way in which pricing structures operate in a business with a limited number of powerful players. It would be wrong to prejudge the specific inquiry. What matters is that the sector as a whole needs to regain consumer trust.

From the wholesale electricity business and retail gas supply, to the negotiations between the government and private sector over subsidies to wind and nuclear power generation, there is a culture of complexity with too many decisions taken in private. The commitment to transparency from the new energy minister, John Hayes, is very welcome and long overdue. Read more

A tanker is filled at a Gazprom refinery. Getty

Could the conflict between Gazprom and the European Union become the antitrust case of the decade?

The answer is yes and the argument is spelt out in an excellent paper just published by the Centre for European Policy Studies.

The case could not only make legal history and provide a very timely reminder that the EU is alive and kicking, it could also transform the international gas market, pushing on the fall in prices already underway and undermining to the point of extinction the linkage between the prices of crude oil and natural gas. Read more