Air New Zealand has nothing to hide, literally – Carrier unveils a rocking cool video campaign!

July 1, 2009 at 5:11 pm

(Source: New York Times & Air New Zealand)

Image Courtesy: Air New Zealand Website

Let us admit. Most of us don’t listen to those mundane sfaety instructions videos shown to us in the airplanes.  A lot of us simply ignore it knowing that it is same damn thing that we have heard umpteen times. Borrrrringgg!!  Not anymore.  Virgin America attempted to change this with its wonderfully creative pre-flight safety video shown before on their Airbus A320 airliners.

Now, Air New Zealand, already known for its innvoative marketing ideas has  done one better than Virgin America  with a safety video featuring its employees who are nude except for body paint and strategically placed seat belts.

Passengers on the video’s maiden flight Monday — the 7 a.m. from Auckland to Wellington, on New Zealand’s North Island — may have never paid more rapt attention to the line “undo the seat belt by lifting the metal flap.”

The video (shown below) — and a related ad campaign — are rare moments of levity in an industry that has been savaged by drastic drop-offs in passenger travel and air freight. Airlines around the world, including Air New Zealand, have had to cut flights, employees and investment plans.

The video and commercial are not as revealing as some might think (or perhaps hope, given the toned bodies of the employees). The realistic body paint makes it look as if the employees — flight attendants, baggage handlers and a pilot — are wearing uniforms. The one perThe video and commercial are not as revealing as some might think (or perhaps hope, given the toned bodies of the employees). The realistic body paint makes it look as if the employees — flight attendants, baggage handlers and a pilot — are wearing uniforms. The one person not shown doing his actual job is the company’s buff chief executive, Rob Fyfe, who plays a baggage handler.

The point of the three-and-a-half-minute safety video and the 45-second commercial that started running last month is that unlike other airlines, which increasingly add hidden charges to fares in an effort to increase falling revenue, Air New Zealand has nothing to hide.

“Which is why the price you pay includes everything — up front,” reads the ad’s tag line.

Click here to read the entire article.

TransportGooru Musing: I’d love to fly Air New Zealand and write a column about how their service matches against these sweet ad campaigns.  Also,  I am falling hard for Air New Zealand’s pleasant ambassadors  (read as hostesses, oohh lala)  with their accented “Kyora” (for those who don’t know what that means, it is the traditional Maori greeting).  Someone, please, tell Air New Zealand to give me a free ticket!  Mr. Rob Fyfe, are you listening??

Jalopnik’s Words of Wisdom – Five Ways To Get Screwed By “Cash For Clunkers” a.k.a. Car Allowance Rebate System (C.A.R.S.) Act

July 1, 2009 at 3:47 pm

(Source: Jalopnik)

Image Courtesy: Jalopnik

Now that the President has signed the “Cash For Clunkers” into a bill, a lot of you may be thinking hard about trading your old meta for a shiny new one.  Through various articles Transportgooru has already discussed in great lengths about the details associated with the Cash for Clunkers, including the eligibility criteria for trading your old vehicle.

To add to that, our good friends at Jalopnik have put together this awesome list (see below), which I think is a must read for anyone who is contemplating a trade under Cash for Clunkers program.  Here is the list in reverse order.

5.) Buy A Clunker Now!

Some unscrupulous sellers may try and convince you to buy a clunker for a few hundred dollars with the promise of being able to trade it in for a $4,500 voucher. In reality, if you haven’t owned your car and kept it running and insured for a year you’re not eligible. Don’t buy a beater unless you want to keep it for a while.

4.) Trade In Your Car Early! –

We’ve read reports on forums of people already taking advantage of the Cash for Clunkers bill. In reality, they’re being taken advantage of. The law has been signed, but the National Highway Transportation Safety Administration hasn’t finalized the rules. It probably won’t go into affect until after July 24th. If you are being offered a “voucher” on your clunker you’re really just getting money for your trade-in, which the dealer can then resell. The most you lose is your car, but the dealer could face a fine of up to $15,000.

3.) Scrap A Car Worth More Than The Voucher

The used car market isn’t great right now, but this doesn’t mean your vehicle doesn’t have some value. Make sure to check the value of your car using a resource like KBB before trading in an older car that, it turns out, is worth more than $4,500 or $3,500 on the open market. Dealers have a greater incentive to sell you a new car and scrap your old one than to get the value of your trade-in “clunker.”

2.) Get Denied For Other Discounts

The voucher program is not designed to be a stand-alone discount program, meaning you’re still eligible for whatever other discounts automakers are offering (and there are a lot of those). With 0% financing and thousands cash back you’re getting cheated if you just get the value of your trade-in off a new car. The average incentive, according to Edmunds, was $2,930 for June. So you could possibly get $4,500 + $3,000 off of a new car.

1.) Avoid Moving Up To A More Profitable Class

If you own a truck or SUV you can use your voucher to trade it in for a car and, likely, get a larger voucher. Many dealerships will want to put you into a new truck because they’re more expensive than most cars, but if you don’t need a truck you can trade your old one in and find an inexpensive car with 10 MPG better fuel economy, which qualifies you for $4,500. For example, if you’ve got a 1991 V6 Ford F-150 you can trade it in for a $15,000 2009 Ford Focus for your kid and get the full $4,500 off, instead of paying upwards of $20,000 for a new truck and only getting a $3,500 voucher.

If you still have any questions, please visit the official “Cash For Clunkers” CARS Act website. For those interested, please click here to checkout the nice picture-filled essay on Jalopnik’s website and don’t forget to drop a note thanking them in the comment section for keeping us informed.

Hyundai’s Innovative Marketers Pop a New Sales Pitch – Hyundai Assurance Gas Lock promises gas at $1.49/gal for one year

June 30, 2009 at 3:01 pm

(Sources: Autobloggreen, Autotropolis)

Hyundai is doing very well in both the automotive quality and marketing arenas. Hyundai recently scored high in the latest 2009 J.D. Power Initial Quality Study. Many analysts were surprised that Hyundai finished fourth behind a stellar cast consisting of Lexus, Porsche and Cadillac.

On the marketing side, Hyundai Assurance struck a cord with the American consumers when it offered payment protection in the event of job loss. Now Hyundai is looking to give consumers increased peace of mind over of the volatility of gas prices, which have swung from under $2 a gallon a few months ago to nearly $3 at the beginning of summer.

Many consumers are sitting on the fence waiting to see which direction the price of gasoline will take. After a period of relatively cheap fuel, over the last several months the price of a gallon has started to climb significantly once again.

The newest promotion, Gas Lock, fixes the price of regular unleaded at $1.49 per gallon for the next year. The program runs July 1 through August 31, and eligible vehicles include the Accent, Sonata, Tiburon, Elantra, Elantra Touring, Entourage, Azera, Santa Fe, Tucson and Veracruz. Customers choosing to utilize Gas Lock will forgo $1,000 in available rebates, making the incentive a gamble that gas prices will remain high.

Hyundai is able to finance its Assurance Gas Lock through a partnership with a commodities company named Pricelock. Without having to dust off your MBA to figure this one out it appears that Pricelock purchases call options in the commodity markets to lock in future gasoline prices. Hyundai will make up the difference.

Shown below is the Press Release from Hyundai:

GAO Report on Pentagon’s Defense Travel System Says Implementation Challenges Still Remain

June 30, 2009 at 1:52 pm

(Source: U.S. Government Acocuntability Office)

Why GAO Did this Study

In 1995, the Department of Defense (DOD) began an effort to implement a standard departmentwide travel system—the Defense Travel System (DTS). GAO has made numerous recommendations aimed at improving DOD management, oversight, and implementation of DTS.

Image Courtesy: Apture

GAO was asked to:

  • Assess the actions DOD has taken to implement GAO’s prior recommendations;
  • Determine the actions DOD has taken to standardize and streamline its travel rules and processes;
  • Determine if DOD has identified its legacy travel systems, their operating costs, and which of these systems will be eliminated; and
  • Report on DOD’s costs to process travel vouchers manually and electronically.

To address these objectives, GAO (1) obtained and analyzed relevant travel policies and procedures, and documents related to the operation of DTS and (2) interviewed appropriate DOD and contractor personnel.

What GAO Found

While the department has made progress in improving the efficiency of its travel operations by implementing DTS and revising its processes and policies, unresolved operational issues continue to exist. DOD has taken sufficient action to satisfactorily address 6 of the 14 recommendations GAO made in 2006 pertaining to unused airline tickets, restricted airfares, testing of system interfaces, and streamlining of certain travel processes. More effort is needed to address the remaining 8 related to requirements management and system testing, utilization, premium-class travel, and developing an automated approach to reduce the need for hard-copy receipts to substantiate travel expenses. For example, in the area of requirements management and testing, GAO’s analysis found that the display of flight information by DTS is complicated and confusing. This problem continues because DOD has yet to establish DTS flight display requirements that minimize the number of screens DOD travelers must view in selecting a flight.

The 1995 DOD Travel Reengineering Report made 22 recommendations to streamline DOD’s travel rules and processes. GAO found that DOD had satisfactorily addressed all 22 recommendations. For example, DOD has mandated the use of commercial travel offices (CTO), established a single entity within DOD—the Defense Travel Management Office—to contract with CTOs for travel services, and has begun modifying CTO contracts as they become subject to renewal to standardize the level of services provided.

According to DOD officials, except for locations where DTS has not yet been deployed, DTS is used by the military services and all 44 defense agencies and joint commands to process temporary duty (TDY) travel vouchers. The department uses two legacy systems to process:

  • TDY travel vouchers at locations where DTS is not yet deployed and
  • Civilian and military permanent duty travel vouchers since DTS currently lacks the functionality to process these vouchers.

DOD provided us with fiscal year 2008 expenditure data for one system and budget data for the other system. The expenditure/budget data provided by DOD were comparable to the amounts budgeted for these systems for fiscal year 2008. According to DOD officials, these legacy systems will not be eliminated because they provide the capability to process military and civilian permanent duty travel vouchers. Although DTS is expected to provide the capability to process military permanent duty travel vouchers in fiscal year 2010, DOD has not yet decided if civilian permanent duty travel voucher processing will be added to DTS.

DOD cost data indicate that it is about 15 times more expensive to process a travel voucher manually—$36.52 manually versus $2.47 electronically. DOD officials acknowledged that the department continues to lack the data needed to ascertain the complete universe of travel vouchers that should be processed through DTS.

What GAO Recommends

Because GAO has existing recommendations regarding the actions needed to address the weaknesses discussed in this report, GAO reiterates 8 of its 14 prior recommendations. DOD commented that it has taken sufficient action to address 12 of the 14 recommendations, including 6 of the 8 GAO is reiterating, and described actions under way or planned to address the other 2. GAO disagrees. GAO received technical comments, which were incorporated as appropriate.

Click here to read/download the entire report.

Smart Growth America reviews the state of stimulus spending on transportation 120 days since rollout

June 30, 2009 at 12:27 am

(Source: Streetsblog, WATodau.au.com, Smart Growth America)

Image Courtesy: Smart Growth America

Within the $787 billion stimulus bill that became law in February, Congress provided states and Metropolitan Planning Organizations (MPOs) with $26.6 billion in flexible funds for transportation projects. Today marks 120 days from the apportionment of the funds to the states.

Smart Growth America released a report today examining how well states have been spending these billions. As they say on the Smart Growth America blog today, not only did the money arrive in a time of economic recession, but “at a time of embarrassingly large backlogs of road and bridge repairs, inadequate and underfunded public transportation systems, and too-few convenient, affordable transportation options.”

So after 120 days, how have states done in addressing these pressing needs and investing in progress for their communities?

After analyzing project descriptions provided by states and MPOs, Smart Growth America found forward looking states and communities that used the stimulus money as flexibly as possible, repairing roads and bridges and making the kinds of smart, 21st century transportation investments that their communities need to support strong economic growth.

While some states proved excellent at investing wisely and making progress, most states failed to fulfill pressing transportation needs. Nearly one-third of the money, $6.6 billion, went towards building new road capacity. Only 2.8% was spent on public transportation, and 0.9% percent on non-motorized projects.

The Secretary of Transportation, Ray Lahood, in his daily blog noted that ARRA is working successfully across America. Some folks in the transportation community are not totally happy about how the money had been spent. Streetsblog points out that $6.6B in Stimulus Cash is spent on New Roads, Not Repair. It says:

Distressingly — but unsurprisingly — quite a lot is going to new roads rather than repair of existing ones. Of the $26.6 billion sent to states under a flexible transportation mandate, SGA found that $6.6 billion has gone towards building new highway capacity.

Only $185 million of the flexible stimulus aid has been used on transit and non-motorized transportation, which was given about $8 billionin separate funding as well.

One culprit behind this questionable use of taxpayer money, as SGA reports, is a theme at risk of repeating itself during the upcoming debate over broad transportation reform: the lack of accountability.

Most states and localities reported the projects they selected for stimulus aid only after the fact, allowing a privately run website to monitor the process much faster than the Obama administration.

But inconsistent reporting is just the beginning of the problem, as SGA points out in its report:

Most states failed to educate, engage, and seek input from the public before making decisions. … There is not a clear articulation of what project portfolios should accomplish, no methods identified for evaluating projects against these goals or against one another, and few repercussions for achieving or failing to achieve these goals.

SGA mined the stimulus itself, as well as comments by administration officials, to produce a list of nine goals that can be used to evaluate its transportation spending. But the lack of tangible consequences for not meeting those goals has left states free to spend at will, often focusing more on the report’s No. 1 objective (“create and save jobs”) than Nos. 5 (“improve public transportation”), 7 (“cut greenhouse gas emissions”), and 8 (“not contribute to additional sprawl”).

Interestingly enough, Senior White House adviser David Axelrod says the economic stimulus package has not yet “broken the back of the recession” but set aside calls for a second massive spending bill. Republicans, meanwhile, have called the spending under way a failure.

Some economists and business leaders have called for a second spending bill designed to help guide the economy through a downturn that has left millions without jobs. Axelrod said it’s too early to know if more spending would be needed or if the administration would seek more money from Congress.

“Most of the stimulus money – the economic recovery money – is yet to be spent. Let’s see what impact that has,” Axelrod said. “I’m not going to make any judgment as to whether we need more. We have confidence that the things we’re doing are going to help, but we’ve said repeatedly, it’s going to take time, and it will take time. It took years to get into the mess we’re in. It’s not going to take months to get out of it.”

Click here to download Smart Growth for America’s report:  The States and the Stimulus – Are they using it to create jobs and 21st century transportation?

Car-crazy Jakarta fast descends towards total gridlock; Now disabled pedestrians should wear traffic signs

June 29, 2009 at 11:51 pm

(Source: AFP via Google, ITDP & Jakarta Post)

New laws requiring disabled pedestrians to wear traffic signs have met with frustration and derision in Indonesia, where in the eyes of the law cars have taken priority over people.

The laws will do nothing to improve road safety or ease the traffic that is choking the life out of the capital city of some 12 million people, and serve only to highlight official incompetence, analysts said.

Within five years, if nothing changes, experts predict Jakarta will reach total gridlock, with every main road and backstreet clogged with barely moving, pollution-spewing cars.

That’s too late for the long-awaited urban rail link known as the Mass Rapid Transit (MRT), which has only just entered the design stage and won’t be operational until 2016 at the earliest.

“Just like a big flood, Jakarta could be paralysed. The city’s mobility will die,” University of Indonesia researcher Nyoman Teguh Prasidha said.

Instead of requiring level footpaths and ramps, lawmakers voted unanimously this month to demand disabled people wear signs announcing their condition so motorists won’t run them down as they cross the street.

Experts say the new traffic law is sadly typical of a country which for decades has allowed cars and an obsession with car ownership to run rampant over basic imperatives of urban planning.

“It is strange when handicapped people are asked to carry extra burdens and obligations,” Institute of Transportation Studies (Instran) chairman Darmaningtyas said.

A 2004 study by the Japan International Cooperation Agency found that traffic jams cost Jakarta some 8.3 trillion rupiah (822 million dollars) a year in extra fuel consumption, lost productivity and health impact.

Paralyzing traffic jams and severe air pollution are the most frequent answers when people are asked what they know about Jakarta. Motorized vehicle ownerships increase in line with a rise in income per capita.

An Institute for Transportation and Development Policy (ITDP) study notes that motorized vehicle ownership is growing at 9 percent every year, with more than 1,500 new registrations being filed a day for motorcycles and 500 a day for cars.  The study discusses various options including BRT, incentives for biking, etc to manage the growing congestion problem that is now threatening to cripple the growth of the country’s economy and adversely affect the quality of life of its citizens.

Now, growth of the vehicle population is not the only problem.  The drivers behind the wheel are adding to the chaos on the roads.  An article that recently appeared in the online edition of Jakarta Post, says the following: Driving in Jakarta is nothing short of chaotic, thanks to the huge quantity of people using the roads, the often terrible condition of the roads and the vast variety of vehicles there are. All of this chaos is only made worse by drivers who are reckless and dismissive of other road users.

There are drivers that seem utterly oblivious to there being anybody else on the roads except themselves. Perhaps they are too comfortable in the enclosed air-conditioned capsule that is their vehicle, as they listen to pumped-up stereophonic music or even watch small video screens, to pay any attention or care about anyone else on the roads.

Click here to read the entire article.

Good job, y’all! Rise in annual global CO2 emissions halved in 2008

June 28, 2009 at 6:23 pm

(Source: Autobloggreen, Netherlands Environmental Assessment Agency, Guardian, UK)

  • Financial crisis, pricey oil halve rise in CO2 emissions
  • Developing nations now emit more than industrialised world

Image Courtesy: Netherlands Environmental Assessment Agency (PBL)

High oil prices and the impact of a global recession halved yearly rises in global greenhouse gases from burning fossil fuels in 2008, the first evidence of an impact from the financial crisis, a study said on Thursday.

Also for the first time, the share of global carbon emissions from developing countries was higher than from industrialised nations, at 50.3 percent. China recently overtook the United States as the world’s top carbon emitter.

The good news comes to us via a study by the Netherlands Environmental Assessment Agency (PBL) which points out that the use of biofuels and an increase in the use of renewables has helped achieve the encouraging result. It’s also worth noting that America actually reduced emissions by 3 percent and that the continuing increases are mostly occurring in developing countries. One final positive worth underlining is that 2008 was the first year investment in renewables was greater than investments in fossil-fuelled technologies.

Thursday’s data showed that global carbon dioxide emissions from burning fossil fuels and from cement production reached 31.6 billion tonnes in 2008, up 40 percent from 1990 levels and a doubling since 1970. Scientists say that annual increases in global greenhouse gas emissions must level off and start to fall by 2015-2020 to avoid the worst effects of climate change.

Emissions increased by 1.7 percent in 2008 compared with 3.3 percent in 2007. Since 2002, the average annual increase was almost 4 percent, the study said.

Click here to read the results of the entire PBL study. Below is an interesting exceprt from the report.

Trends in USA, European Union, China, Russia and India

In total, CO2 emissions of the USA and the European Union decreased by about 3% and 1.5% in 2008, Although China’s emissions showed an increase of 6%, this is the lowest increase since 2001. Cement production in China showed a similar pattern, with a 2.5% increase in 2008, a drop from 9.5% in 2007. The declining increase of China’s emissions fits in the trend since 2004, when its emissions increased by 17%. Smaller contributions to increasing global emissions were made by India and Russia, which emissions increased by 7% and 2%, respectively.

Since 1990, CO2 emissions per person of China have increased from 2 to 5.5 tonne of CO2 per capita and decreased from 9 to 8.5 for the EU-15 and from 19.5 to 18.5 for the USA. These changes reflect the large economic development of China, structural changes in national and global economies and the impact of climate and energy policies.

It can be observed that due to its fast economic development, per capita emissions of China quickly approaches levels that are common within the industrialised countries of the Annex I group under the Kyoto Protocol. Among the largest countries, other countries that show fast increasing per capita emissions are South Korea, Iran and Australia. On the other hand per capita emissions of the EU-15 and the USA are gradually decreasing over time. Those of Russia and Ukraine have decreased fast since 1990, although the emissions in 1990 and therefore the trend are rather uncertain due to the dissolution of the former Soviet Union in the early 1990s.

Tata Motors suffers loss of $521.8 million; Serious belt tightening forecasted

June 27, 2009 at 3:20 pm

(Source:  Reuters, Times of India, SIFY, Bloomberg)

  • Tata FY09 loss $520 million, first in eight years
  • Jaguar Land Rover (JLR) unit 10-mth loss of 306 mln pounds
  • Warns of more job cuts, plant closures
  • Shares end 0.8 pct higher in Mumbai market

Image Courtesy: Apture - The Tata top and Jaguar auto company logos Top Indian vehicle

India’s Tata Motors said Friday that it suffered a loss of 25.05 billion rupees ($521.8 million) after taxes in the past fiscal year as the global meltdown exacted a toll on the auto industry worldwide.

The loss came after a year in which the company recorded a profit of 21.67 billion rupees ($451 million) after taxes, the company said in a statement.

Tata Motors reported a consolidated gross revenue of 741.51 billion rupees ($15.44 billion) in 2008-2009. India’s financial year runs from April 1 to March 31.  About 120,000 Land Rovers were sold in the 10 months ended March 31, down from 198,000 a year ago, Chief Financial Officer C. Ramakrishnan told reporters today. Jaguar sales fell to 47,000 in the same period from 48,800.

“The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008,” it said.

The firm, which controls 60 percent of the world’s fifth-biggest truck and bus market, said it was readying for major belt-tightening, including deferring capital expenditure wherever possible to keep a tight rein on costs.

The company said sales across the group were hit by the global economic downturn, which saw demand and vehicle financing dry up.

“The company has actively responded to this changed situation by taking a number of urgent and long-term measures. These include cutting costs drastically and working on a plan of substantial cost reduction, aligning production with demand and tight control over cash flows,” the company said in a statement.

“At this moment, things are beginning to improve only marginally. There may be more job losses and more shut downs of plants if required,” Sky News quoted Tata Motors vice-chairman, Ravi Kant, as saying.

Tata Motors said the Jaguar Land Rover unit it bought in 2008 posted a loss after tax of 306 million pounds ($504 million) in the 10 months of the fiscal year to March 2009 as a brutal global recession crippled car sales, primarily luxury and sports utility vehicles.

Tata Motors is continuing talks with the U.K government to secure a guarantee for a 340-million pound loan approved by the European Investment Bank for Jaguar and Land Rover, Kant said. It has the option to get the guarantee from private banks, he said.

JLR sold 167,000 vehicles for the 10 months to March, compared with 246,000 in the same period the year before.

The economic crisis has sent two of America’s three big carmakers into receivership and is set to plunge Toyota Motor Corp deeper into loss.

House Passes Landmark Bill to Address Threat of Climate Change

June 26, 2009 at 9:45 pm

(Source: Reuters, New York Times, Washington Post, fivethirtyeight.com & CNN)

Image Courtesy: Climatecrisis.net - An Inconvenient Truth

The U.S. House of Representatives on Friday narrowly passed a climate change bill that would create a national system to cap greenhouse gas emissions and allow trade of such credits. Only eight Republicans joined Democrats in backing the measure. Prospects for Senate passage this year are uncertain. States that have set the U.S. agenda on addressing greenhouse gas emissions are lining up behind a federal climate bill, fearing signs of dissent would weaken a plan that still faces hurdles.

The vote was the first time either house of Congress had approved a bill meant to curb the heat-trapping gases scientists have linked to climate change. The legislation, which passed despite deep divisions among Democrats, could lead to profound changes in many sectors of the economy, including electric power generation, agriculture, manufacturing and construction.

There was no derth of drama in the House from the moment the legislators began the day’s proceedings.  The Democrats released a 301-page amendment to the bill at 3:09 a.m. Friday, drawing protest from Republican Leader John Boehner, R-Ohio.  “This is the biggest job-killing bill that has ever been on the floor of the House of Representatives. Right here. This bill,” Boehner said.

The leaders of the House are customarily granted unlimited speaking time, but when the Boehner’s speech went more than 2½ hours, Democrats objected.  “Is this an attempt to try to get some people to leave on a close vote?” asked Rep Henry Waxman, D-California, the bill’s lead sponsor.

President Obama hailed the House passage of the bill as “a bold and necessary step.” Mr. Obama had lobbied wavering lawmakers in recent days, and Secretary of State Hillary Rodham Clinton and former Vice President Al Gore had made personal appeals to dozens of fence-sitters.

But the legislation, a patchwork of compromises, falls far short of what many European governments and environmentalists have said is needed to avert the worst effects of global warming. And it pitted liberal Democrats from the East and West Coasts against more conservative Democrats from areas dependent on coal for electricity and on heavy manufacturing for jobs.

The House legislation reflects a series of concessions necessary to attract the support of Democrats from different regions and with different ideologies. In the months of horse-trading before the vote Friday, the bill’s targets for emissions of heat-trapping gases were weakened, its mandate for renewable electricity was scaled back, and incentives for industries were sweetened.

Several House members expressed concern about the market to be created in carbon allowances, saying it posed the same risks as those in markets in other kinds of derivatives. Regulation of such markets would be divided among the Environmental Protection Agency, the Commodity Futures Trading Commission and the Federal Energy Regulatory Commission.

Following is a list of key provisions of the landmark bill (thanks to Washington Post):

  • Emissions from a large sector of the U.S. economy, including power plants, factories and auto tailpipes, will be required to be cut 17 percent below their 2005 levels by 2020, and 83 percent below those levels by 2050.
  • These reductions would be managed by requiring emitters to amass buyable, sellable “credits” equal to their pollution.
  • About 85 percent of these credits would be given away for free, many of them with the mandate that electricity distributors sell them and use the proceeds to soften the blow of rising energy prices. Environmentalists had wanted the government to auction them all off.
  • Electricity producers would be required to get at least 15 percent of their energy from renewable sources by 2020, with up to 5 percent more energy saved from new efficiency measures. The two figures must add up to 20 percent.
  • Polluters could also balance out some of their emissions by purchasing carbon “offsets,” which are official certificates that greenhouse gas emissions have been avoided, or taken out of the air. In a last-minute amendment, oversight over offsets generated on farms was taken from the Environmental Protection Agency and given to the Agriculture Department.
  • A new Clean Energy Deployment Administration funded with $7.5 billion in “green bonds” would provide government money to private companies investing in environment-friendly technologies.

Nearly half the U.S. states have moved toward curbing greenhouse gas emissions and want the federal government to learn from their experience in creating systems to cap emissions and trade pollution credits.  States that have set the U.S. agenda on addressing greenhouse gas emissions are lining up behind a federal climate bill, fearing signs of dissent would weaken a plan that still faces hurdles.

Image Courtesy: www.fivethirtyeight.com

At the heart of the legislation is a cap-and-trade system that sets a limit on overall emissions of heat-trapping gases while allowing utilities, manufacturers and other emitters to trade pollution permits, or allowances, among themselves.

The cap would grow tighter over the years, pushing up the price of emissions and presumably driving industry to find cleaner ways of making energy.

Regional considerations tend to loom larger in debates over environmental policy than in other sorts of affairs. Some states consume more energy than others. Some states have more carbon-intensive economies than others.

Some states are more or less likely to be negatively impacted by global warming. And some states are better equipped to take advantage of green energy development.

One of the first of those concerns: household energy usage. The goal here is simple: the Congressional Budget Office recently put out an estimate (.pdf) of the costs of the Waxman-Markey cap-and-trade bill. The CBO estimated that the average American household would wind up paying a net of $175 in additional energy costs in the year it benchmarked, which was 2020. But how does that cost translate to individual states?

Our renowned statistics whiz at fivethiryeight.com has come up with a brilliant way to translate the CBO’s numbers, based on his interpretation of the CBO’s assumptions, to the level of individual states, making it easy for us common folk to understand what is to be expected when this cap and trade takes effect  ( Transportgooru recommends this as a must read article, especially if you care to know about the the nuts and bolts of “cap-and-trade” system)

For $5,790 you can go on pirate hunting luxury cruises along the Somali Coast

June 26, 2009 at 4:33 pm

(source: Ananova, Wirtschaftsblatt & Slashdot)

Somali pirates - Image Courtesy: Apture

Select Russian ocean liners are offering  pirate hunting cruises on armed private yachts. £3,500 a day buys you a cruise close to the coast of Somalia and up to Kenya. The ships deliberately cruise close to the coast at a speed of just five nautical miles in an attempt to attract the interest of pirates.  When the ship is attacked, a squad of ex-special forces troops fights back with grenade launchers, machine guns, and rockets, reports Austrian business paper Wirtschaftsblatt.

Passengers who want to earn their stripes can pay an extra £5 a day for an AK-47 machine gun and £7 for 100 rounds of ammo.

The yachts travel from Djibouti in Somalia to Mombasa in Kenya.

“They are worse than the pirates,” said Russian yachtsman Vladimir Mironov. “At least the pirates have the decency to take hostages, these people are just paying to commit murder,” he continued.

An editors note found at the bottom of this Wirtschaftsblatt article says “Goldman Morgenstern & Partners tells us, that “they believe”, this story is “satire”.

TransportGooru Musings:  Hope this is a hoax.  It is appalling to even think that any government will authorize “hunting” humans and conduct that as a business, just because the “hunted” ones are pirates.  Russian government as such as earned a bad reputation for its alleged human rights excess and for failing to rein in the xenophobic thugs that attack people of color.  If they happened to let such a business take place in their watch, it can be worth calling the UN Security Council (which, as  an apex body has not done anything good lately).