Mexican move a light bulb moment for the globe

Age
Monday 7/12/2009 Page: 6

A cool initiative is a guiding light for Copenhagen, writes Mathew Murphy.

NIC Frances is preparing for a busy month. The executive chairman's Melbourne-based company Cool nrg has started replacing 30 million incandescent light bulbs in Mexico with compact fluorescents. The roll-out, to be done a million light bulbs at a time, has caught the attention of Mexican President Felipe Calderon who, despite the program already being under way, has asked to officially launch the initiative. Once complete, it will save 7 million tonnes of greenhouse gas each year, equivalent to taking all the cars in Mexico off the road for a year.

The excitement is also due to the replacement program being the world's first household energy efficiency project under the United Nations Clean Development Mechanism. The CDM, established under the Kyoto Protocol, allows developed countries to undertake emissions reductions programs in developing countries to meet its targeted obligations under the treaty. Its critics say the mechanism has failed to deliver the technology transfer to developing countries that was intended.

As delegates start arriving in Copenhagen this week to chart a post-Kyoto course, Mr Frances is being paraded as a shining example of what can be achieved. Mr Frances will present at the United Nations Framework Convention on Climate Change event; for the world's peak trading body, the International Emissions Trading Association; at an Austrade meeting; for the major power company partnering the initiative; and finally, in front of the Dutch Government. But the limelight and fanfare has not come without hurdles for the former stockbroker and Brotherhood of St Laurence chief executive.

"We have really slugged it out for more than 2 years to get to this point," he said. "We couldn't find a power company in Australia that was interested, but we found a Dutch company that said, 'This is the future of Clean Development Mechanism. We will buy the first stage up front, at a price much higher than the carbon price, but only if you allow its the following 29.' "We then tried the Australian banks for funding. The Mexican Government put in $1 million, but we needed another $1.5 million, and we could not find a bank in Australia that could understand it so we went to ING and they lent us the money.

"So Australia has been slow off the mark. But when we replace the light globes this will produce a real saving every year for the 10-year life of the globe - that equals about two weeks' salary in Mexico. That is $165 million a year if you aggregate that over all those families, or $1.6 billion over 10 years." Next Mr Frances has his sights on China. He is in talks with a potential partner to increase the project by 10 times, aiming to replace 300 million light globes in China. "This is programmatic CDM, and it can work," he said. "It can provide positive environmental outcomes and at the same time help lift people out of poverty - it is very much a win-win."