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  • CENN - October 28, 2004 Daily Digest

    CENN - OCTOBER 28, 2004 DAILY DIGEST
    Table of Contents:
    1. Ex-Chief of GIOC to Advise Azeri Oil Company
    2. Experts Propose New Method for Energy Tariff Calculation
    3. $ 170 mln. Allocates for State oil Company
    4. Cooperation Between Azerbaijan and Armenia in the Field of Ecology
    Impossible
    5. Azerbaijan, Russia, Iran Prepare to Synchronize Energy Systems
    6. International Energy Agency's world energy outlook runs out of
    control
    7. Russia Eyes the Kyoto Market
    8. IUCN Welcomes Russia's Ratification of the Kyoto Protocol
    9. Regional Winners of 2004 Reuters-IUCN Environmental Media Awards
    Announced



    1. EX-CHIEF OF GIOC TO ADVISE AZERI OIL COMPANY

    Source: Civil.ge, October 28, 2004

    Azeri news agencies report that ex-chief of Georgian International Oil
    Company (GIOC) Gia Chanturia was appointed as an advisor for the Azeri
    State Oil Company. According to the reports Mr. Chanturia would
    coordinate on Georgia-related projects with the Azeri company.

    Mr. Chanturia presided over GIOC since its inception in 1995 and was
    considered one of the closest allies of President Eduard Shevardnadze.
    He was in charge of negotiating and implementing the construction of the
    Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum pipelines. Before the
    November 2003 Rose Revolution, it was rumored that Chanturia may succeed
    Shevardnadze after his retirement in 2005. Mikheil Saakashvili dismissed
    Gia Chanturia on September 9, 2004.

    Azeri internet portal Day.Az speculates that an arrest warrant on Mr.
    Chanturia was issued in Georgia, but Azeri President Ilham Aliev vouched
    for him with Saakashvili, who agreed on the condition that Chanturia
    leaves Georgia.


    2. EXPERTS PROPOSE NEW METHOD FOR ENERGY TARIFF CALCULATION

    Source: Sarke, October 27, 2004

    Experts have proposed to review the energy tariff in case of the 7 per
    cent change of the lari exchange rate instead of the current 5 per cent,
    according to the National Energy Regulation Commission. Temur
    Torjanidze, a professor, and Levan Jamberia, a programmer from the
    Razmadze Mathematics Institute, have worked out an adequate mathematic
    model.


    3. $ 170 MLN ALLOCATES FOR STATE OIL COMPANY

    Source: State Telegraphic Agency of the Republic of Azerbaijan, Azertag,
    October 25, 2004

    Agreement on allocation of the credit in $ 170 mln will be signed
    between the State Oil Company of Azerbaijan Republic / SOCAR/ and
    European Bank of Reconstruction and Development / EBRD/ in Baku, AzerTAj
    correspondent reports.

    $110 mln will be spent for financing of 10% share of Shah-Deniz gas
    condensate well, as well as $60 mln for trusteeship on the construction
    of the Southern Caucasus gas pipeline.


    4. COOPERATION BETWEEN AZERBAIJAN AND ARMENIA IN THE FIELD OF ECOLOGY
    IMPOSSIBLE

    Source: State Telegraphic Agency of the Republic of Azerbaijan, Azertag,
    October 26, 2004

    Cooperation between Azerbaijan and Armenia in the field of ecology is
    impossible since the Armenia-Azerbaijan, Nagorny Karabakh conflict is
    not settled. Minister of ecology and natural resources of Azerbaijan
    Huseyngulu Bagirov at conference of the ministers of environment of the
    countries of the East Europe, Caucasus and the Central Asia, which was
    taken place in Tbilisi, stated it. Officials have taken part in work of
    conference from the European Union, the USA, and also representatives of
    some international organizations.

    As was informed to correspondent of AzerTAj in the press-service of the
    ministry of ecology and natural resources, during discussions around the
    question on regional cooperation and presentation of the report
    Environment and the initiative of safety on the Southern Caucasus,
    prepared by OSCE, UNDP and the Program of the United Nations on
    environment, the head of the Azerbaijan delegation, minister Huseyngulu
    Bagirov in reply to the offer of the international organizations
    concerning cooperation with Armenia, has called them to act from real
    positions and has stated that in conditions of absence of safety for
    life of people in zone of the conflict there can not be a speech about
    the solution of problems of ecological safety in any way. It has been
    marked, that as a result of occupational policy of Armenia, serious
    damage was caused to the unique nature of region, and natural riches of
    Azerbaijan are plundered. Non-alignment of some countries of region to
    the conventions regulating ecological questions of trans-national
    character prevents solution of available problems, in particular,
    connected with the Kur River.

    At the conference, also were discussed realization of ecological
    strategy for the countries of the East Europe, Caucasus and Central Asia
    adopted at the Kiev conference of ministers of environment of the
    European countries last year. The head of the Azerbaijan delegation who
    has acted at the Conference, devoted to questions of partnership of
    private and public sectors at realization of strategy, has told about
    the successes achieved in Azerbaijan in sphere of preservation of
    environment, and on the basis of concrete examples has informed on
    synthesis of private and public sectors in the decision of environmental
    problems.

    During discussion of the questions of partnership between the
    countries-participants of strategy and international donors, the
    Azerbaijani minister, speaking about donors in solution of environmental
    problems, with the purpose to reduce dependence on the donor assistance,
    has expressed a wish about more effective utilization of national
    resource.

    Minister Huseyngulu Bagirov has carried out in Tbilisi also a number of
    meetings - with the prime minister of Georgia Zurab Zhvania, minister of
    protection of environment and natural resources of this country Tamara
    Lebanidze and minister of Moldova - Konstantin Mikhailesku, and also
    with heads of the international organizations.


    5. AZERBAIJAN, RUSSIA, IRAN PREPARE TO SYNCHRONIZE ENERGY SYSTEMS

    Source: RFE/RL Newsline, 28 October, 2004

    A draft agreement has been prepared that will pave the way for an
    exchange of electric power between Russia, Azerbaijan, and Iran,
    Interfax reported on 26 October citing the Azerenergy press service.
    Russian Unified Energy Systems (EES) chief Anatolii Chubais discussed
    the draft agreement, under which the three countries would provide each
    other with power during winter months and in the case of emergency, with
    President Aliyev during a visit to Baku last week. ITAR-TASS on 20
    October quoted Chubais as telling journalists in Baku that a
    Russian-Azerbaijani delegation will travel to Iran shortly in the hope
    of finalizing the exchange agreement.


    6. INTERNATIONAL ENERGY AGENCY'S WORLD ENERGY OUTLOOK RUNS OUT OF
    CONTROL

    Source: ENWL-eng, October 28, 2004

    Amsterdam, October 26th 2004 -- Greenpeace today criticized the
    International Energy Agency (IEA) to fail to properly assess the world's
    energy trends for the next decades in its "World Energy Outlook 2004"
    which was presented today. The IEA contradicts its own publications on
    energy efficiency and ignores the scientifically recognized need for an
    urgent, global shift away from fossil fuels in the interest of
    protecting the climate.

    "With this report, the IEA sends a dangerous signal to policy makers and
    the industry worldwide to continue to massively waste energy, burn
    fossil fuels and forget about climate change," says Jan Vande Putte of
    Greenpeace International.

    The IEA today presented its annual 'World Energy Outlook', which
    predicts that if governments stick with the policies in force, the
    world's energy needs will be almost 60% higher in 2030 than they are
    now, electricity demand will double and CO2 emissions will increase by
    more than 60%.

    In IEA's view, fossil fuels will continue to dominate, with shares of
    nuclear power and renewable energy remaining limited. Furthermore, they
    neglect their own research on energy efficiency (1) and disregard the
    draft EU directive on energy efficiency, which sets an objective of
    decreasing energy demand by 1% per year (2).

    Aside from their 'Reference' scenario, the IEA is presenting an
    'Alternative' scenario with a decrease of CO2 emissions by 16%, needing
    a "technological breakthrough" and a shift to renewable and nuclear
    power.

    "Despite the 'Alternative' scenario, the IEA remains fixated on old and
    dirty fossil fuel technologies, and neglects the ongoing boom of
    renewable energy technologies," says Jan Vande Putte. "Wind energy has
    been growing at an average of 30% over the last decade and is costs
    competitive with coal and cheaper then nuclear power, despite massive
    subsidies for both dirty technologies." (3)

    The UK government’s Energy Review estimates that by 2020 wind power
    will be the cheapest available electricity source, even beating gas. A
    report from Greenpeace and the European Wind Energy Association
    estimates that by 2020, more than 12% of the global electricity needs
    could be generated by wind. The European Renewable Energy Council (EREC)
    (4) estimated that by 2030, renewables could supply 35% of the global
    energy needs.

    "By massively investing in available renewable and efficiency
    technologies and ruling out dirty and expensive nuclear and fossil
    fuels, a genuinely sustainable energy sector is possible." said Jan
    Vande Putte. "With an estimated 16 trillion dollars to be invested in
    the next 25 years, the world has a clear choice: either put the money in
    destruction or in solutions."

    Notes to Editor:

    1) IEA, Cool Appliances - Policy Strategies for Energy Efficient Homes
    Paris, 2003. http://www.iea.org/dbtw-wpd/bookshop/add.aspx?id=62
    2) 2) European Commission, Proposal for a Directive on the Promotion of
    End-use efficiency and Energy Services, COM (2003) 739 final
    http://europa.eu.int/comm/energy/demand/legislation/end_use_en.htm
    3) EWEA and GREENPEACE, Wind Force 12. May 2004.
    http://www.ewea.org/documents/0511%20-%20Win d%20Force%2012.pdf)
    4) EREC, Renewable Energy Scenario to 2040. 2004.
    http://www.erec-renewables.org/documents/targets_2040/EREC_S cenario%202040.pdf



    7. RUSSIA EYES THE KYOTO MARKET

    Source: ENWL-eng, October 28, 2004

    LONDON, Oct 22 (IPS) - Nobody stands to gain more than Russia through
    its move to ratify the Kyoto Protocol, an agreement to cut
    atmosphere-warming emissions and through that to contain climate change.

    Clearly Russian President Vladimir Putin did not wake up one day and
    decide to do his bit to cool down a warming atmosphere. Ratification had
    its reported opponents within Russia but few can argue that at least for
    the next eight years Russia has much to gain and little to lose.

    Ratification by the Lower Duma is expected to be approved by the upper
    house of Parliament and then by President Putin, all within the next
    couple of weeks. That would then satisfy conditions for the Kyoto
    Protocol to come into force.

    The protocol had been awaiting ratification by at least 55 countries
    said to be producing at least 55 percent of greenhouse gases
    (principally carbon dioxide and methane that are said to cause global
    warming). Russian entry would take it past the barrier.

    The Kyoto Protocol would bind signatory countries to reduce emissions to
    at least 5 percent below 1990 levels in the period 2008-2012. The
    overwhelming view of climate scientists is that this would be too little
    to do the climate much good. But a lot of companies stand to gain
    through mechanisms agreed to make such reduction possible.

    And with companies, countries; and none more than Russia. Its
    representative had made sure of that at a meeting in Marrakesh in
    Morocco in November 2001. The Marrakesh agreements set out the nuts and
    bolts for implementation of the Kyoto targets. The Marrakesh agreements
    are more significant than the protocol itself signed in Kyoto in Japan
    in 1997.

    The principal tools given shape were emissions trading, two other
    agreements called joint implementation (JI) and the clean development
    mechanism (CDM), and the so-called carbon sinks. Hard bargaining by
    Russia at Marrakesh gave it strong advantages in all these.

    Under emissions trading a company that is emitting less than its
    permissible limit of greenhouse gases can 'sell' the excess credit to a
    company counted as emitting more. The idea is that the buying company
    can find this a cheaper option than introducing technology to reduce
    emissions.

    Under joint implementation an agreed group of industrialised countries
    (what are called the Annex I countries of the United Nations Framework
    Convention on Climate Change) were allowed to gain credits for reduction
    of emissions by implementing reduction measures in other countries on
    the same list. In effect this would mean implementation in Eastern
    Europe where the cost of implementing such measures would be much less.

    Under the CDM credits could be earned for emissions-savings in projects
    in developing countries where measures were likely to cost even less
    than in Eastern Europe. Carbon sinks was a facility to gain credit
    through the existence of forests, on the ground that trees absorb carbon
    dioxide and therefore count as contribution towards carbon reduction.

    These measures all place Russia in an enviable position. Following a
    decline in industrial activity in the 1990s, emissions in Russia have
    been calculated - on the basis of data supplied by the Russian
    government FB to have fallen to 30 percent below 1990 levels anyway.
    That means Russian industry has to do virtually nothing to meet its
    reductions target by the end of the first Kyoto reduction period
    (2008-2012).

    The low recorded emissions translates potentially as a lucrative
    industry for emissions trading, that is due to begin within the European
    Union (EU) from January next year. It is hardly a coincidence that
    Russian ratification means that the Kyoto protocol will take effect at
    the same time. Russia would be on the emissions market straightaway for
    EU emissions trading and for wider emissions trading among other Kyoto
    signatory countries.

    Since Russian industry is emitting far less than the quota its officials
    have negotiated, large sections of the Russian industry will be in a
    position to 'sell' their quotas to emit more. Depending on how the
    market goes, this could bring significant income for Russian industry
    with almost no investment required to upgrade to more
    environment-friendly technology.

    At the same time Russian industry is well-placed through investments and
    partnerships in Eastern Europe through historical associations to claim
    reductions in emissions to its credits at a cost far lower than is
    likely for Western industry. It can also add to its huge reserves of the
    right to emit through CDM projects. Both these provide cheap
    opportunities for Russia to develop new environment-friendly technology,
    which too it can sell.

    Russia finally capitalised on its huge lakes and forest reserves
    available to count to its credit by way of carbon sinks. Russian
    officials managed at Marrakesh to double the amount of credits it was
    assigned for these 'sinks' from 17 million tonnes of carbon to 33
    million tonnes. The Russian demand was accepted because if it rejected
    the Kyoto protocol as the United States had done, the protocol itself
    would be seen to collapse.

    Russian leaders waited seven years after the Kyoto protocol to move
    towards ratification. Because it is only now that the Kyoto protocol is
    taking shape as the Kyoto market.


    8. IUCN WELCOMES RUSSIA’S RATIFICATION OF THE KYOTO PROTOCOL

    Source: IUCN October 22, 2004

    IUCN – The World Conservation Union warmly congratulates the Russian
    Federation on today’s ratification of the Kyoto Protocol, the only
    international agreement aimed at slowing global warming. Russia’s
    ratification has been the key to Kyoto’s coming into force since 2001
    when the United States pulled out of the pact. The Protocol stipulates
    that it must be ratified by industrialized countries whose combined 1990
    emissions exceed 55% of that group’s total. With Russia accounting for
    17% of emissions, it was the only country outside of the US who could
    push the agreement over that threshold, and bring it into force. “Today
    marks a turning point in the history of efforts to tackle climate change
    as a global community of nations. We now have a binding international
    agreement. It may just be a beginning but the costs of inaction would
    have been far higher to the increasingly vulnerable communities around
    the world,” said IUCN Director General Achim Steiner.


    9. REGIONAL WINNERS OF 2004 REUTERS-IUCN ENVIRONMENTAL MEDIA AWARDS
    ANNOUNCED

    Source: IUCN October 25, 2004

    Reuters Foundation and IUCN – The World Conservation Union today
    announced the regional winners of the 2004 Reuters-IUCN Media Awards for
    Excellence in Environmental Reporting, who will vie for the global prize
    of US$ 5,000. Her Majesty Queen Noor, IUCN Patron, will present awards
    to these six winners and announce the global winner of the 2004
    Reuters-IUCN Media Awards at a ceremony in Bangkok, Thailand, on 18
    November, during the 3rd IUCN World Conservation Congress. The regional
    winners – representing Latin America, North America and Oceania, Europe,
    Asia, English-speaking Africa and the Middle East and French-speaking
    Africa – have been selected from some 300 print entries from over 50
    countries. A global winner will be chosen from the six regional winners
    by a Global Master Jury, comprised of Her Majesty Queen Noor, Mr Geert
    Linnebank, Reuters Chief News Editor, Mrs Yolanda Kakabadse, IUCN
    President, Mr Dennis Dimick, Senior Editor, Environment and Technology,
    National Geographic Magazine, Mr Mario Lubetkin, Director General of the
    Inter Press Service, and Ms Denise Ham?, Chair of IUCN Commission on
    Education and Communication and CEO of WWF-Brazil.

    --Boundary_(ID_dDi6MZjM+RwSLSNVNff4RQ)--
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