Paris climate deal prompts call for action in Cayman

The Cayman Islands must set more aggressive targets on increasing renewable energy and reducing carbon dioxide emissions in the light of the Paris agreement on climate change, green energy advocates have said.

The Paris climate deal, hailed as an historic feat of international diplomacy, established a commitment from 195 countries to contain planet-warming carbon emissions.

Cayman, as a British territory, was not involved in the talks and is not a direct signatory to the agreement, which set a goal of reducing global temperature rises to less than 2C. The final submissions to the agreement are not enforceable and carry no consequences.

However. James Whittaker, president of the Cayman Renewable Energy Association, said the Paris accord represents a “paradigm shift” in the international approach to climate change and suggested Cayman would have to get on board.

Tim Austin, deputy director of the Department of Environment, said the National Conservation Council is also pushing for clearer and more ambitious targets.

A draft national energy policy, published in 2013, sets a goal that 13.5 percent of electricity sold should be generated from renewable sources by 2030. It also targets a 19 percent reduction in greenhouse gas emissions compared to a “business as usual scenario.”

Mr. Whittaker said the Paris agreement, referred to as COP 21, represents an international consensus that far more radical action is needed. He said Cayman’s targets on renewable energy are among the least ambitious of any country.

While Cayman’s net contribution to climate change is negligible, the territory is among the highest producers of carbon emissions per capita in the world, according to Mr. Austin.

Mr. Whittaker, added, “I believe COP 21 sets ambitious climate change benchmarks globally and it clearly suggests that Cayman must take a more aggressive approach to adopting renewable energy and reducing our carbon emissions. This is something CREA have been telling the government for some time now. That said, it still doesn’t appear the decision-makers in government are yet paying attention to the critical issues of renewable energy and carbon reduction.”

He added, “I am cautiously optimistic that the government will finally wake up and realize that this paradigm shift is happening all over the world for a reason and will start to ensure it happens in Cayman soon.”

Mr. Austin said the Cayman Islands could request to be included in commitments coming out of the agreement.

“At the moment, the U.K. does not push out those climate agreements to its territories, but this could potentially change with Cayman’s recent request to the U.K. government to include Cayman in its second commitment period to the Kyoto Protocol (2013-2020).

“The National Conservation Council is currently working on a climate change policy and would like to see clearer, more ambitious targets, in line with what the U.K. has signed up to.”

He said the Paris summit represents a significant milestone in gaining an international consensus that something needs to be done to curb the amounts of CO2 going into the atmosphere and limit the consequences of global warming.

Mr. Austin said the ambitious targets set in Paris were driven, in part, by small-island states concerned about the consequences of climate change.

Tim Austin - DOE

In 2009, the Maldives, one of the flattest countries on Earth, held a Cabinet meeting underwater in scuba gear as a stunt to generate publicity for the consequences of not acting on the issue.

Cayman’s position is less grave, but Mr. Austin warns that with the majority of Cayman’s population and major infrastructure located a short distance from the coastline, increasing storm intensity and flood risk present a potentially significant challenge.

He said the impact of climate change is already evident on coral reefs around Cayman.

Mr. Whittaker said Cayman’s size should not stop it from doing its part.

“While our aggregate emissions are small compared to large economies, we emit a lot of carbon per capita on this little island. I believe it’s a hypocritical and shortsighted position to just let the rest of the world handle it when we are expecting others to do things we are not willing to do ourselves.

“We need to show leadership here, regionally and globally. If we expect the world to change we have to be part of that change.” More

 

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Green Aruba 2015

Green Aruba is an annual conference born in 2010 with the specific aim to place dedicated emphasis on Aruba's energy transition to 100% fuel independence.

Besides showcasing Aruba's progress and challenges to the accelerated penetration of renewables in the total energy mix, Green Aruba also exhibits the experiences and knowledge of other institutions and island nations in this field. Over the past six years, Green Aruba has evolved into a practical and valuable well-known platform within the region for the exchange of information and applied knowledge on sustainable and best practices for the shift to cleaner, more environmentally friendly energy sources and resources.

Green Aruba VI – Share Sustainability

At this year's Green Aruba conference to be held October 27th and 28th, the main theme will focus on sharing sustainability by together confronting the common barriers we face, identifying the solutions moving forward and creating the essential roadmaps to achieve our desired growth paths of the sustainability journey for our island nations.

Aruba has made remarkable progress over the years in the penetration level of renewables and/or efficiency at production level, with in 2015 reaching close to the 20% mark. With the ongoing and upcoming planned projects operational by the end of 2017, the 40% barrier will be surpassed by 2018!

With our goal to reach 100% fuel free energy production by 2020, and in order to surpass the 40% level, it is fundamental to embark on a "deep dive" into our existing energy mix. Aruba is examining cutting-edge technologies and new business models for our utility companies, all in conjunction with our RAS framework, to create a balance between Reliable and Sustainable investments. This balancing act will only be achievable if energy production costs remain Affordable for the customer base.

Local utility stakeholders together with foreign renowned institutions are preparing for this dive known as the Aruba Renewable Integration Study (ARIS), and will present their approach and concept at the upcoming conference. The ARIS will provide models that map out the road forward towards Aruba's aspiring renewable energy goals, while maintaining grid reliability and minimizing overall system costs, and can serve as a prototype or starting point for fellow island nations. More

 

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Hawaii Flips Switch on World’s Largest Ocean Harvesting Clean Energy Plant

Hawaii is definitely ahead of the curve when it comes to renewable energy.

In June, the Aloha state became the first state to mandate that all of its electricity come from renewable sources no later than 2045. Along with other islands, its charging ahead with wind, solar and smart grid systems. But now, the state is home to the first fully closed-cycle Ocean Thermal Energy Conversion (OTEC) plant in the U.S.

OTEC is “a process that can produce electricity by using the temperature difference between deep cold ocean water and warm tropical surface waters,” Makai Ocean Engineering, the company that built the plant, explains on its website. “OTEC plants pump large quantities of deep cold seawater and surface seawater to run a power cycle and produce electricity.” Makai touts OTEC as a constant, clean energy source that is “capable of providing massive levels of energy.”

Watch this short video for an explanation of how it works.

Makai staff explain in the video that the potential for OTEC is immense because the source of the energy is just sunlight.

“About 70 percent of the sunlight coming to Earth lands on the ocean. Most of that is captured in the surface layers of the ocean water in the form of heat,” says Duke Hartman, vice president of business development at Makai. “That’s beautiful because we can extract that energy 24/7 and use that power any time we want it, totally eliminating the need for an energy storage system.”

The 105-kilowatt demonstration plant on the Big Island, which cost about $5 million to build, only generates enough electricity to power 120 homes. But to date, it’s the largest such plant in the world. And it’s promising enough for the U.S. Navy to be investing in it. The Navy has a target for 50 percent of its shore-based energy to come from alternative sources in five years.

While the industry is still very much in its infancy, Makai believes it won’t be long until it takes off.

“The plant is dispatchable, meaning the power can be ramped up and down quickly to accommodate fluctuating demand and intermittent power surges from solar and wind farms,” Hartman told Bloomberg.

The company estimates that all of Hawaii’s electricity needs could be met by about 12 commercial-scale OTEC plants. They already have plans to construct a 1-megawatt facility in Japan, and Hartman says Brazil, Sri Lanka, the Maldives and West African nations all have potential.

“Anywhere tropical with deep water is ideal, especially if they import their fuel,” says Hartman.

The biggest challenge remains financing, explains Hartman. “We need a visionary investor to get us past the expensive pilot project into the large-scale commercial projects,” he said.

According to the company’s website, an offshore commercial-scale OTEC plant could prevent burning roughly 1.3 million barrels of oil each year, produce electricity at roughly $0.20 per kilowatt-hour and prevent more than half a million tons of carbon emissions per year.

 

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What is holding back the Cayman Islands from implementing more solar and wind energy?

The Caribbean appears to be the ideal location for renewable energy development. Petroleum resources are scarce and renewable resources such as solar, wind and geothermal are plentiful. Energy prices are high as there is no opportunity for economy of scale benefits that large land masses enjoy. Added to that, climate change impacts pose a major threat to the region’s small-island economies that are largely dependent on tourism and agriculture.

Despite this, most Caribbean nations still use imported diesel or oil to generate 90-100% of their energy. So what has been the barrier to using renewables? Many people have pointed to the cost factor. Small economies mean that in most cases countries have difficulty in financing renewable energy projects that require high upfront capital. Also, regulations have been slow in setting clear rules for grid interconnection. These factors have led some international investors and developers to be cautious about entering the Caribbean market. http://bit.ly/1NeB0fj

 

 

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Port plan to undergo economic impact assessment

An economic impact assessment for the proposed cruise berthing facility is in the works, The Cayman Reporter understands.

Minister of Finance Hon Marco Archer

Minister of Finance Hon Marco Archer confirmed that PricewaterhouseCoopers (PWC) has been contracted to carry out the assessment. The Cayman Reporter inquired if the assessment has already started and how much this assessment will cost the country, but Mr Archer has not responded at press time.

The Cayman Islands has already done an Environmental Impact Assessment (EIA) to the tune of $2.5 million based on the current proposal of a two finger pier. The EIA indicated that dredging and its silt plume could impact 15 acres of coral reef. Now that the EIA has been completed and the Department of Environment (DoE) is the process of completing a report on the assessment to submit to Cabinet, a call for the examination of the proposal’s impact on the entire economy has been made.

Founder and Director-General at The Cayman Institute, Nicholas Robson, said to grasp the full impact of the proposal its impact on the country’s economy must be evaluated. He believes the economic impact assessment should state how financing a cruise port, that could destroy a significant part of the reef on the south-west of the island, will affect the country. He believes it should look at how many jobs will be affected in the retail sector as well as in to water sports industry.

He noted that it is also imperative to analyse the true strengths and weaknesses of the cruise tourism and stay-over tourism to these islands.

"We should be weighing up the cruise passenger industry and its per-capita spend against stay-over tourism. Should we be looking into lengthening the runway to 10,000 feet to be able to accommodate long haul flights from Europe and points east? The Persian Gulf and China have many high net worth individuals which may well want to come to the Cayman Islands. We have already had Mr. Lee Ka-Shing one of the richest men in Hong Kong residing and doing business here," he said. Furthermore, Mr Robson stated that it is important for Cayman to know how many cruise passengers it can manage. "If we try and take too many cruise passengers per day none will have an enjoyable experience," he said.

Commenting on his own stance on the port plans Mr Robson said he is for any initiative that will have the greatest benefit to the majority of the people in the Cayman Islands. "A decision made today will affect the Cayman islands for many years into the future. Furthermore, with Cuba opening up the cruise industry may find that more passengers want to go to Cuba, causing some of the cruise lines dropping Cayman," he said.

The Advancement of Cruise Tourism in the Cayman Islands (ACT) member Chris Kirkconnell told The Cayman Reporter that the ACT was formed because members involved in the cruise industry felt that the Cayman Islands Tourism Association (CITA), the tourism sector’s representative group, was only concerned about stay-over businesses. Those involved in cruise felt that in order to have a voice they had to start a group of their own.

"Once we formed ACT CITA tried to convince us that we didn’t need a separate entity and it seemed like they were trying to give us some kind of attention up until now. If you look at the member makeup of CITA its much more heavily stay-over focused than cruise," Mr Kirkconnell expressed. More

 

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Civil Aviation Unveils Design For New Cayman Air Terminal

The Cayman Islands Airports Authority (CIAA) has unveiled the interior conceptual drawings for the multi-million dollar expansion project at Owen Roberts International Airport (ORIA).

Commenting on the design created by Florida based firm RS&H Group, CIAA’s CEO Albert Anderson said, “The interior design is very impressive and I am confident that once completed the new expanded airport will be a first-class terminal facility

The CI$55 million expansion project should take around three years to complete and will nearly triple the current space at the airport. Construction on the first phase of the project is expected to begin this summer.

Here is the Cayman Islands Government's chance to save money and show their support for alternative energy. Covering the roof and parking lots with solar panels, and using LED lighting would set an example for Caymanians and Caymanian businesses to follow. Editor

 

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How will geo-political unrest in the Middle East affect Cayman's Energy Security?

Will the battle for Iraq become Saudi war on Iran?

Be careful what you wish for could have been, and perhaps should have been, Washington’s advice to Saudi Arabia and other Gulf states which have been supporting Sunni jihadists against Bashar al-Assad’s regime in Damascus.

The warning is even more appropriate today as the bloodthirsty fighters of the Islamic State of Iraq and al-Sham (ISIS) sweep through northwest Iraq, prompting hundreds of thousands of their Sunni coreligionists to flee and creating panic in Iraq’s Shiite heartland around Baghdad, whose population senses, correctly, that it will be shown no mercy if the ISIS motorcades are not stopped.

The outbreak of civil war in Iraq has oil traders nervous. Crude oil trading on the NYMEX Thursday gained more than $2 per barrel and has so far continued its climb Friday morning, going as high as $107.68 for WTI and Brent Crude to $113.02.

Such a setback for Iraqi Prime Minister Nouri al-Maliki has been the dream of Saudi Arabia’s King Abdullah for years. He has regarded Maliki as little more than an Iranian stooge, refusing to send an ambassador to Baghdad and instead encouraging his fellow rulers of the Gulf Cooperation Council (GCC) — Kuwait, Bahrain, Qatar, the United Arab Emirates, and Oman — to take a similar standoff-ish approach. Although vulnerable to al Qaeda-types at home, these countries (particularly Kuwait and Qatar) have often turned a blind eye to their citizens funding radical groups like Jabhat al-Nusra, one of the most active Islamist groups opposed to Bashar al-Assad in Syria.

Iran’s President Hassan Rouhani commented on June 12 on the latest crisis in Iraq, making it clear that Iran will intervene at the appropriate time to combat terror. According to a transcript of the speech released by the Islamic Republic News Agency, he said, "The Islamic Republic of Iran will not tolerate this violence and we will not tolerate this terror and as we stated at the UN, we will fight and combat violence, extremism and terrorism in the region and the world."

Currently on vacation in Morocco, King Abdullah has so far been silent on these developments. At 90-plus years old, he has shown no wish to join the Twitter generation, but the developments on the ground could well prompt him to cut short his stay and return home. He has no doubt realized that — with his policy of delivering a strategic setback to Iran by orchestrating the overthrow of Bashar al-Assad in Damascus showing little sign of any imminent success — events in Iraq offer a new opportunity.

This perspective may well confuse many observers. In recent weeks, there has been a flurry of reports of an emerging — albeit reluctant – diplomatic rapprochement between the Saudi-led GCC and Iran, bolstered by the apparently drunken visit to Tehran by the emir of Kuwait, and visits by trade delegations and commerce ministers in one direction or the other. This is despite evidence supporting the contrary view, including Saudi Arabia’s first public display of Chinese missiles capable of hitting Tehran and the UAE’s announcement of the introduction of military conscription for the country’s youth.

The merit, if such a word can be used, of the carnage in Iraq is that at least it offers clarity. There are tribal overlays and rival national identities at play, but the dominant tension is the religious difference between majority Sunni and minority Shiite Islam. This region-wide phenomenon is taken to extremes by the likes of ISIS, which also likely sees its action in Iraq as countering Maliki’s support for Assad.

ISIS is a ruthless killing machine, taking Sunni contempt for Shiites to its logical, and bloody, extreme. The Saudi monarch may be more careful to avoid direct religious insults than many other of his brethren, but contempt for Shiites no doubt underpinned his Wikileaked comment about "cutting off the head of the snake," meaning the clerical regime in Tehran. (Prejudice is an equal opportunity avocation in the Middle East: Iraqi government officials have been known to ask Iraqis whether they are Sunni or Shiite before deciding how to treat them.)

Despite the attempts of many, especially in Washington, to write him off, King Abdullah remains feisty, though helped occasionally by gasps of oxygen — as when President Barack Obama met him in March and photos emerged of breathing tubes inserted in his nostrils. When Sheikh Mohammed bin Zayed, the crown prince of Abu Dhabi — and, after his elder brother’s recent stroke, the effective ruler of the UAE — visited King Abdullah on June 4, the Saudi monarch was shown gesticulating with both hands. The subject under discussion was not revealed, but since Zayed was on his way to Cairo it was probably the election success of Egypt’s new president, Abdel Fattah el-Sisi, considered a stabilizing force by Riyadh and Abu Dhabi. Of course, Sisi gets extra points for being anti-Muslim Brotherhood, a group whose Islamist credentials are at odds with the inherited privileges of Arab monarchies. For the moment, Abdullah, Zayed, and Sisi are the three main leaders of the Arab world. Indeed, the future path of the Arab countries could well depend on these men (and whomever succeeds King Abdullah).

For those confused by the divisions in the Arab world and who find the metric of "the enemy of my enemy is my friend" to be of limited utility, it is important to note that the Sunni/Shiite divide coincides, at least approximately, with the division between the Arab and Persian worlds. In geopolitical terms, Iraq is at the nexus of these worlds — majority Shiite but ethnically Arab. There is an additional and often confusing dimension, although one that’s historically central to Saudi policy: A willingness to support radical Sunnis abroad while containing their activities at home. Hence Riyadh’s arms-length support for Osama bin Laden when he was leading jihadists in Soviet-controlled Afghanistan, and tolerance for jihadists in Chechnya, Bosnia, and Syria. More

One of the reasons that I have been lobbying and submitting reports on the need for an energy policy and the need for alternative energy to the Cayman Islands Government for the last seven years is because of the possibility of geo-political instability triggering conflict in the Middle East.

This may have come to pass. As you will have read above the insurgency has moved out of Syria and into Iraq. Civil war appears to have broken out, with Iraq's most senior Shia cleric has issued a call to arms after Sunni-led insurgents seized more towns. The call by a representative of Grand Ayatollah Ali al-Sistani came as the militants widened their grip in the north and east, having seized Mosul and Tikrit and threatened to march south, towards Baghdad.

The question is whether Saudi Arabia will offer help to the ISIS insurgents. Currently on vacation in Morocco, King Abdullah has so far been silent on these developments, but the developments on the ground could well prompt him to cut short his stay and return home. The Washington Institute for Near East Policy asserted that the Saudi military parade on April 29 marked a message to both Iran and the United States. Institute fellow Simon Henderson said this marked the first time Riyad displayed its Chinese-origin CSS-2 ballistic missile, designed to contain a nuclear warhead. King Abdullah has no doubt realized that — with his policy of delivering a strategic setback to Iran by orchestrating the overthrow of Bashar al-Assad in Damascus showing little sign of any imminent success — events in Iraq offer a new opportunity. Saudi Arabia's defense budget according to Deloitt, stands at $16 billion dollars.

Iran’s President Hassan Rouhani commented on June 12 on the latest crisis in Iraq, making it clear that Iran will intervene at the appropriate time to combat terror. According to a transcript of the speech released by the Islamic Republic News Agency, he said, "The Islamic Republic of Iran will not tolerate this violence and we will not tolerate this terror and as we stated at the UN, we will fight and combat violence, extremism and terrorism in the region and the world."

Given that Iraq is OPEC's second largest producer and that Brent Crude is already at a nine month high, the possibility is that oil prices could rapidly escalate to $150 per barrel is high.

What effect would this have on the Cayman Islands you may ask. If we have civil war in Iraq, which already appears to be the case, and if the ISIS takes Baghdad and continues south to the oil rich areas we could see $150 per barrel oil. However, if conflict spreads further afield in the region, which conceivably could see the Straights of Hormus closed, we could see oil at $300 per barrel. Editor.

 

 

© 2014