Steel may be buckling from outside pressures, but UK manufacturing isn’t helpless.
States intervene to help industry
Governments around the world give their industries a helping hand with all kinds of energy incentives from lower taxes to renewable energy levies and import tariffs.
But, as the crisis in the loss-making UK steel industry has illustrated so well, some nations are more generous with their hand-outs than others.
On 3 April, Kiran Stacey, energy correspondent at the Financial Times, reported that: “Germany has handed over 40 times more in energy subsidies to heavy industry since 2013 than the UK.”
Hand-outs aren’t always positive
Whether you think the UK should intervene to save steel making in Port Talbot or not, many feel it’s wise to treat any government intervention with caution.
In the past, subsidies and tariffs have been blamed for distorting the market and creating trade tension, even trade wars. However, national views vary depending on which side you’re trading from – one country’s helping hand is another’s unfair protectionism.
Besides, it’s not just subsidies that are being blamed for making the playing field uneven for the UK’s steel industry. As well as cheap Chinese imports and overproduction, some have also cited the price disparity between low energy bills paid by other EU countries and high bills in the UK.
Coping with energy price disparity
Looking closely at the UK energy market, however, it is not as clear cut as all that. According to UK Power, we may have the second most expensive electricity in Europe after Italy but our gas is one of the cheapest – beaten only by Belgium.
Undoubtedly, subsidies, energy prices and a glut of steel have all had their part to play in the uncertainty surrounding steel at Port Talbot. But there’s one thing we can be sure of – energy prices will always fluctuate and energy affordability remains a great concern for all manufacturers.
Coping with energy price fluctuations should be part of a company’s flexible energy procurement strategy as part of a joined-up energy management plan. To start with, choosing the right contract for your company is vital. A fixed-price energy contract, for example, can provide budget certainty when energy markets are volatile but it can also mean you miss out on low prices when they drop.
Energy management helps business cut costs
The steel crisis illustrates the strength of outside forces, some of which can only be faced down with government intervention, but manufacturers can also take steps to improve their competitiveness by controlling one of their biggest spends: energy and water.
“By taking a positive and proactive approach to energy efficiency, manufacturing companies can control and reduce their energy spend,” says the Carbon Trust in its Sector overview: Manufacturing, introducing energy saving opportunities for business. “All manufacturers are under pressure to cut costs and increase profits, and saving energy is one good way to meet this goal.”
A strategic energy management plan will help companies consume less energy and pay for less, as well as meeting your obligations to reduce carbon emissions targets.
Take control of utilities
Many energy and water savings are easy wins that firms can do themselves, from installing LEDs to engaging employees in turn off or turn down policies.
Other measures such as smarter procurement or constant monitoring and control, may require sophisticated strategies and dedicated energy experts to understand all the ins and outs.
While it’s true that managing energy and lower bills may have a limited part to play in saving British steelmaking for the future, it doesn’t mean manufacturers can’t improve their own position by being more efficient with energy use and reducing wastage. Taking tighter control of utilities is an obvious area where savings can be made.
Will Self-Driving Cars Be Better for the Environment?
Technologists, engineers, lawmakers, and the general public have been excitedly debating about the merits of self-driving cars for the past several years, as companies like Waymo and Uber race to get the first fully autonomous vehicles on the market. Largely, the concerns have been about safety and ethics; is a self-driving car really capable of eliminating the human errors responsible for the majority of vehicular accidents? And if so, who’s responsible for programming life-or-death decisions, and who’s held liable in the event of an accident?
But while these questions continue being debated, protecting people on an individual level, it’s worth posing a different question: how will self-driving cars impact the environment?
The Big Picture
The Department of Energy attempted to answer this question in clear terms, using scientific research and existing data sets to project the short-term and long-term environmental impact that self-driving vehicles could have. Its findings? The emergence of self-driving vehicles could essentially go either way; it could reduce energy consumption in transportation by as much as 90 percent, or increase it by more than 200 percent.
That’s a margin of error so wide it might as well be a total guess, but there are too many unknown variables to form a solid conclusion. There are many ways autonomous vehicles could influence our energy consumption and environmental impact, and they could go well or poorly, depending on how they’re adopted.
One of the big selling points of autonomous vehicles is their capacity to reduce the total number of vehicles—and human drivers—on the road. If you’re able to carpool to work in a self-driving vehicle, or rely on autonomous public transportation, you’ll spend far less time, money, and energy on your own car. The convenience and efficiency of autonomous vehicles would therefore reduce the total miles driven, and significantly reduce carbon emissions.
There’s a flip side to this argument, however. If autonomous vehicles are far more convenient and less expensive than previous means of travel, it could be an incentive for people to travel more frequently, or drive to more destinations they’d otherwise avoid. In this case, the total miles driven could actually increase with the rise of self-driving cars.
As an added consideration, the increase or decrease in drivers on the road could result in more or fewer vehicle collisions, respectively—especially in the early days of autonomous vehicle adoption, when so many human drivers are still on the road. Car accident injury cases, therefore, would become far more complicated, and the roads could be temporarily less safe.
Deadheading is a term used in trucking and ridesharing to refer to miles driven with an empty load. Assume for a moment that there’s a fleet of self-driving vehicles available to pick people up and carry them to their destinations. It’s a convenient service, but by necessity, these vehicles will spend at least some of their time driving without passengers, whether it’s spent waiting to pick someone up or en route to their location. The increase in miles from deadheading could nullify the potential benefits of people driving fewer total miles, or add to the damage done by their increased mileage.
Make and Model of Car
Much will also depend on the types of cars equipped to be self-driving. For example, Waymo recently launched a wave of self-driving hybrid minivans, capable of getting far better mileage than a gas-only vehicle. If the majority of self-driving cars are electric or hybrids, the environmental impact will be much lower than if they’re converted from existing vehicles. Good emissions ratings are also important here.
On the other hand, the increased demand for autonomous vehicles could put more pressure on factory production, and make older cars obsolete. In that case, the gas mileage savings could be counteracted by the increased environmental impact of factory production.
The Bottom Line
Right now, there are too many unanswered questions to make a confident determination whether self-driving vehicles will help or harm the environment. Will we start driving more, or less? How will they handle dead time? What kind of models are going to be on the road?
Engineers and the general public are in complete control of how this develops in the near future. Hopefully, we’ll be able to see all the safety benefits of having autonomous vehicles on the road, but without any of the extra environmental impact to deal with.
New Zealand to Switch to Fully Renewable Energy by 2035
New Zealand’s prime minister-elect Jacinda Ardern is already taking steps towards reducing the country’s carbon footprint. She signed a coalition deal with NZ First in October, aiming to generate 100% of the country’s energy from renewable sources by 2035.
New Zealand is already one of the greenest countries in the world, sourcing over 80% of its energy for its 4.7 million people from renewable resources like hydroelectric, geothermal and wind. The majority of its electricity comes from hydro-power, which generated 60% of the country’s energy in 2016. Last winter, renewable generation peaked at 93%.
Now, Ardern is taking on the challenge of eliminating New Zealand’s remaining use of fossil fuels. One of the biggest obstacles will be filling in the gap left by hydropower sources during dry conditions. When lake levels drop, the country relies on gas and coal to provide energy. Eliminating fossil fuels will require finding an alternative source to avoid spikes in energy costs during droughts.
Business NZ’s executive director John Carnegie told Bloomberg he believes Ardern needs to balance her goals with affordability, stating, “It’s completely appropriate to have a focus on reducing carbon emissions, but there needs to be an open and transparent public conversation about the policies and how they are delivered.”
The coalition deal outlined a few steps towards achieving this, including investing more in solar, which currently only provides 0.1% of the country’s energy. Ardern’s plans also include switching the electricity grid to renewable energy, investing more funds into rail transport, and switching all government vehicles to green fuel within a decade.
Zero net emissions by 2050
Beyond powering the country’s electricity grid with 100% green energy, Ardern also wants to reach zero net emissions by 2050. This ambitious goal is very much in line with her focus on climate change throughout the course of her campaign. Environmental issues were one of her top priorities from the start, which increased her appeal with young voters and helped her become one of the youngest world leaders at only 37.
Reaching zero net emissions would require overcoming challenging issues like eliminating fossil fuels in vehicles. Ardern hasn’t outlined a plan for reaching this goal, but has suggested creating an independent commission to aid in the transition to a lower carbon economy.
She also set a goal of doubling the number of trees the country plants per year to 100 million, a goal she says is “absolutely achievable” using land that is marginal for farming animals.
Greenpeace New Zealand climate and energy campaigner Amanda Larsson believes that phasing out fossil fuels should be a priority for the new prime minister. She says that in order to reach zero net emissions, Ardern “must prioritize closing down coal, putting a moratorium on new fossil fuel plants, building more wind infrastructure, and opening the playing field for household and community solar.”
A worldwide shift to renewable energy
Addressing climate change is becoming more of a priority around the world and many governments are assessing how they can reduce their reliance on fossil fuels and switch to environmentally-friendly energy sources. Sustainable energy is becoming an increasingly profitable industry, giving companies more of an incentive to invest.
Ardern isn’t alone in her climate concerns, as other prominent world leaders like Justin Trudeau and Emmanuel Macron have made renewable energy a focus of their campaigns. She isn’t the first to set ambitious goals, either. Sweden and Norway share New Zealand’s goal of net zero emissions by 2045 and 2030, respectively.
Scotland already sources more than half of its electricity from renewable sources and aims to fully transition by 2020, while France announced plans in September to stop fossil fuel production by 2040. This would make it the first country to do so, and the first to end the sale of gasoline and diesel vehicles.
Many parts of the world still rely heavily on coal, but if these countries are successful in phasing out fossil fuels and transitioning to renewable resources, it could serve as a turning point. As other world leaders see that switching to sustainable energy is possible – and profitable – it could be the start of a worldwide shift towards environmentally-friendly energy.
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