US tests laser on missile

The agency said in a statement the test took place at Point Mugu’s Naval Air Warfare Centre-Weapons Division Sea Range off Ventura in central California.

“The Missile Defense Agency demonstrated the potential use of directed energy to defend against ballistic missiles when the Airborne Laser Testbed (ALTB) successfully destroyed a boosting ballistic missile” the agency said.

The high-powered Airborne Laser system is being developed by Boeing Co, the prime contractor, and the US Missile Defense Agency.

Boeing produces the airframe, a modified 747 jumbo jet, while Northrop Grumman supplies the higher-energy laser and Lockheed Martin is developing the beam and fire control systems.

“This was the first directed energy lethal intercept demonstration against a liquid-fuel boosting ballistic missile target from an airborne platform,” the agency added.

The airborne laser weapon successfully underwent its first in-flight test against a target missile back in August. During that test, Boeing said the modified 747-400F aircraft took off from Edwards Air Force Base and used its infrared sensors to find a target missile launched from San Nicolas Island, California.

The plane’s battle management system issued engagement and target location instructions to the laser’s fire control system, which tracked the target and fired a test laser at the missile. Instruments on the missile verified the system had hit its mark, Boeing said.

The airborne laser weapon is aimed at deterring enemy missile attacks and providing the US military with the ability to engage all classes of ballistic missiles at the speed of light while they are in the boost phase of flight.

“The revolutionary use of directed energy is very attractive for missile defense, with the potential to attack multiple targets at the speed of light, at a range of hundreds of kilometres, and at a low cost per intercept attempt compared to current technologies,” the US Missile Defense Agency said.

Coffee culture boons Kenya

The concentrated black coffee – traditionally brewed over a charcoal stove in tall brass kettles reminiscent of the ancient Arabic world – is a speciality of the Kenyan coast that is preserved for men.

The age-old practice has failed to draw in a younger crowd to carry on the tradition.

“The young people are not taking up this culture,” said Swaleh, a tour guide in Mombasa’s Old Town which comes alive in the evenings as men pour into the streets for their five shilling ($0.06) cup of coffee.

The reverse is, however, happening in major cities up country. Young people are rushing to swanky coffee shops or restaurants and ordering coffee instead of tea, which has traditionally been the preferred drink in the former British colony, despite growing some of the world’s best coffee.

“Coffee houses are very trendy and are meeting points for the young and businesspeople to sit and have their discussions,” said Philip Gitao, executive director of the regional Eastern African Fine Coffees Association (EAFCA).

“We definitely are seeing a small growth in consumption especially due to the number of coffee houses.”

Figures are hard to come by, but the EAFCA estimates that Kenyans consumed only 3,000 tonnes of more than 50,000 tonnes produced here in the 2008/09 season.

Neighbouring Ethiopia, Africa’s largest producer which is also said to be the birthplace of coffee, drinks up half of its 330,000 tonnes annual production because the population has traditionally enjoyed the brew.

Tea vs coffee
Industry players say Kenya’s producers are too exposed to the ebb and flow of international prices and want to cultivate a coffee-drinking culture to boost domestic sales.

“When we went through the credit crunch, a lot of industry suffered. Domestic consumption is one of the ways of hedging farmers against the vagaries of international prices,” Gitao said.

Kenyans have traditionally favoured black tea over coffee, a relic left behind by British colonisers who traded more tea than coffee and introduced tea to push more volumes.

Uganda, another former British colony, has also been unable to push huge domestic sales although it is Africa’s second biggest producer of coffee after Ethiopia.

A mere 8,400 tonnes was consumed domestically out of some 198,000 tonnes produced last year, according to the Kampala-based EAFCA. But there too, the new trend of hanging out in modern Starbucks-style coffee shops and sipping gourmet brews is catching on.

“Branding of coffee as the new lifestyle drink is a major player in people converting to drink coffee. Everyone wants to be chic and identify with coffee drinking,” said Eric Omondi, retail director for Dormans coffee shops in Kenya.

“Initially when we begun, there was hardly any coffee drinking culture. Over time, people have gotten educated, they know what they want. We have fans who know what to look for in terms of a good cappuccino or a good espresso.”

The company opened its first shop in 2003 and has expanded to a chain of 11 outlets. This year, it hopes to push 50 tonnes of roasted coffee per month.

The government too supports the private sector’s promotion to drive up the intake of Kenyan beans.

“It is very unfortunate that we can produce a very high premium product and all we can do is export,” Kenyan agriculture minister William Ruto told an annual African Fine Coffee Conference in Kenya. “I think we deserve the best as well.”

Google defends pact to digitise books

Google’s ambitious plan has been praised for expanding access to books but the US Justice Department has criticised it on a variety of grounds, saying it potentially violated antitrust and copyright laws.

Google disagreed, saying that the amended settlement agreement complies with the law. “With only one significant exception, the parties sought to implement every suggestion the United States [Justice Department] made in its September submission,” Web search leader said.

That exception was a decision to keep books in the project unless authors decided to opt out. Finding all the authors in question and requiring them to sign up for the programme “would eviscerate the purposes of the ASA [amended settlement agreement],” it said.

Google also argued that the deal did not harm libraries and did nothing to stop other groups seeking to digitise books.

“The ASA will enable the parties to make available to people throughout the country millions of out-of-print books,” Google said in its brief. “This is precisely the kind of beneficial innovation that the antitrust laws are intended to encourage, not to frustrate.”

Google also took a swing at corporate rivals, noting that Microsoft Corp had abandoned its own book project.

“Competitors such as Amazon raise anxieties about Google’s potential market position, but ignore their own entrenched market dominance,” Google said in its brief.

Another objection has been that it is inappropriate to use the class action mechanism “to implement forward-looking business arrangements.” But, Google said, the Justice Department did not point to any cases disapproving a settlement on those grounds.

Google further sought to downplay the economic significance of the books in the project, saying that most were either out of copyright or no longer in print. The authors of most of the books in neighborhood bookstores would withhold their books from the project.

The Open Book Alliance, made up of Google’s corporate rivals, some library and writers groups and other groups digitizing books, rejected Google’s arguments.

“Despite the spin from Google’s attorneys, the amended settlement will still offer the search and online advertising giant exclusive access to books it has illegally scanned to the detriment of consumers, authors and competition,” the group said in an email statement.

The agreement is designed to settle a 2005 class action lawsuit filed against Google by authors and publishers who had accused the search engine giant of copyright infringement for scanning collections of books from four universities and the New York Public Library.

The Justice Department recommended in September that the agreement be rejected.

Faced with this and other opposition, Google and a group of authors and publishers made a series of changes to the deal in November that has failed to stem criticism of it.

The case is The Authors Guild et al v. Google, Inc, U.S. District Court, Southern District of New York, No. 05-08136.

Internet companies voice alarm over law

The draft, due to be approved next month, would make Internet Service
Providers (ISPs) like Fastweb and Telecom Italia, and Web sites like
Google’s YouTube, responsible for monitoring TV content on their pages,
industry experts say.

It comes as Google’s YouTube unit is
engaged in a legal battle with Mediaset, controlled by Prime Minister
Silvio Berlusconi. Italy’s largest media group wants 500 million euros
in damages from YouTube for copyright infringement.

“As it is
written at the moment … the law would certainly help Mediaset in the
procedure it has open against Google,” Paolo Nuti, president of the
Italian Internet Providers Association, told reporters. However, he
said he did not think the law was written expressly for this purpose.

The
proposed regulations would make internet sites as liable as television
stations for their content and subject to hefty fines by the AGCOM
media watchdog, according to a 33-page draft.

“If this happens it would sweep away Internet 2.0,” Nuti said. “It would transform internet platforms into judges or tribunals.”

Italy’s
parliament, which is holding consultations with civil groups and
internet associations, is due to present a non-binding opinion to
Silvio Berlusconi’s government by early February. The draft decree only
requires presidential approval.

Raffaele Nardacchione,
director of the Asstel association of telecommunications providers
which represents ISPs like Fastweb and Tiscali, said the decree far
exceeded the terms of the original European directive by extending the
definition of audiovisual media to Internet firms and by tightening
copyright.

Marco Pancini, senior European public policy counsel
for Google, said that if the decree remained unchanged it would
materially affect the company’s business in Italy.

“The first
step is to discuss this with Italian authorities to try to find a
solution and we think this is do-able,” he told reporters. “The next
step, if the law stays as it is, is going to be to discuss this with
the European authorities.”

Commission could investigate
EU sources told reporters on Tuesday the Commission could open an investigation into the decree for infringing EU norms.

Even
the head of AGCOM, Corrado Calabro, told reporters on the sidelines of
a parliamentary hearing on Tuesday the decree should be revised because
it would “deform” the EU directive.

The draft legislation has
also raised criticism from freedom of speech groups like Italy’s
Article 21, which said in a statement the decree “deviously attacks the
freedom to operate on the Web” and would “block any possibility of
modern development of the country”.

Italy has one of the
lowest rates of ADSL Internet usage in western Europe, according to the
European Commission’s 2009 Information Society Report. E-commerce is
also struggling. Only around 10 percent of Italians buy online compared
with around 55 percent of Britons and Germans.

Industry officials warned the new decree would postpone the development of the web even further.

“Any
internet company will make investments where the legislative system is
economical and the opportunities for investment are greatest,” said
Nuti.

Bulgaria repeats no GMO pledge

Miroslav Naidenov told reporters that a five-year moratorium on cultivation of GM crops drafted by his ruling centre-right GERB party should be enough to soothe public fears provoked by new legislation.

But non-government organisations, farmers and citizens, who have rallied against GM crops in the past weeks, said in a statement the proposed moratorium was “a political PR and manipulation” aimed at bypassing public concerns.

They said they would stage a demonstration in front of parliament to press deputies not to replace a ban on GM crop cultivation with a licensing regime.

The changes that sparked public fears envisage lifting a ban on growing GM crops for scientific and commercial reasons in the environment but the cultivation of such crops would only be possible with the authorisation of a special committee.

The new government, elected last July, has said the legal changes, approved by parliament at first reading, were aimed at complying with EU law and should be adopted along with the moratorium.

“The cultivation of such crops and their use to make food for people, which is now scaring the society, has never been an object of consideration,” Naidenov said.

“This [moratorium] is a commitment of the ruling majority for five years, so far we have kept our promises and people must calm down. There are much more serious things [to worry about].”

Pressure
Authorising GMOs for consumption, processing or cultivation in Europe is a politically charged subject with many openly hostile to what they call “Frankenstein foods.”

In Bulgaria, green groups, organic farmers and a number of political parties, including some of GERB’s rightist allies in parliament, say Sofia must not liberalise its GMO legislation and give in to pressure from biotech and other industries.

The government has said it has not received any requests for cultivation of GM crops and denies any corporate pressure.

Critics argue GMOs threaten biodiversity, could contaminate conventional crops, and also pose a health risk.

Naidenov said as a consumer and parent he had “big concerns” about GMO food but added he was ready to listen to arguments of the biotech industry, too.

“For the time being, we…must not raise the issue at all and it is unacceptable to offer GMO food to people and GMO food to the Bulgarian market,” he said.

“At the same time I want…to hear the opinion of the other side. We cannot stop science and development. I do not accept calls to also stop experiments in laboratories.”

Green groups have called on the government to support organic farming instead. But Naidenov said the government could not afford to set aside money in times of deepening recession for a sector that was unlikely to help raise competitiveness.

“It it is very important not to get carried away by fashion. Every lev must go for conventional farming in times of crisis particularly when we have huge reserves of unused potential.”

Irreversible recalls

Toyota Motor Corp has announced the recall of nearly half a million of its flagship Prius and other hybrid cars for braking problems as it seeks to address criticism over the handling of its worst safety crisis.

The move came on the heels of problems with sticking accelerator pedals and floormats that spiralled into a recall of over eight million vehicles worldwide.

Here are just a few of the large scale recalls which have sent motor companies into havoc.

1971
General Motors recalls 6.7 million vehicles due to engine mounts that separated from the vehicle and impacted the throttle.

1981
GM recalls 5.8 million vehicles due to loose suspension bolts that affected steering.

1996
Ford recalls more than eight million vehicles to replace defective ignition switches that could have led to electrical shorts and engine fires.

July 1998
GM recalls close to one million Cadillac, Pontiac and Chevrolet cars because of fears the air bags may have deployed by accident.

August 2000
Japanese tyre maker Bridgestone Corp recalls 14.4 million ATX, ATX II and Wilderness tyres of certain sizes installed on Ford’s Explorer SUVs and sold separately in stores. The recall applied to all tyres produced at the company’s Firestone US division.

2004
GM recalls nearly four million pickups because of corroding tailgate cables.

April 2005
GM recalls more than two million vehicles to fix a variety of potential safety defects, most of them on cars and trucks sold in the US, which includes 1.5 million full-size pickup trucks and sport utility vehicles from the 2003 to 2005 model years with second-row seat belts that GM says may be difficult to properly position across passengers’ hips.

October 2005
Toyota recalls about 1.41 million cars globally, including the Corolla and 15 other models, due to trouble with their headlight switching systems.

December 2007
Chrysler LLC recalls 575,417 vehicles as long-term wear on the gear shift assembly could cause them to shift out of park without the key in the ignition. The recall involved 2001 to 2002 model-year Dodge Dakota pickup trucks, Durango sports utility vehicles and Ram van models and 2002 model-year Ram pickup trucks.

August 2008
GM recalls 857,735 vehicles equipped with a heated windshield-wiper fluid system in the US after the National Highway Traffic Safety Administration said a short-circuit in the system may cause other electrical features to malfunction, increasing the risk of a fire.

September 2009
Toyota recalls approximately 3.8 million vehicles in the US because of floor mats that can come loose and force down the accelerator. The problem is suspected in crashes that killed a total of five people.

October 2009
Ford completes a series of recalls affecting 14 million vehicles over what it says was a faulty cruise control deactivation switch made by Texas Instruments. The latest recall involves some 4.5 million vehicles. Texas Instruments says the swtich, made by a former business unit, is not the “root cause” of the fires and that a 2006 National Highway Traffic Safety Administration investigation had concluded that there were multiple factors involved.

January 2010
Honda recalls 646,000 of its Fit/Jazz and City automobiles globally over a faulty window switch after a child died the previous year when a fire broke out in one of its cars the previous year.

Toyota issues a series of recalls covering 5.6 million vehicles in the US due to sudden acceleration in some vehicles. It is the largest ever recall for Toyota and among the biggest for an automaker in US history.

France’s PSA Peugeot Citroen recalls nearly 100,000 Peugeot 107s and Citroen C1s as they have the same accelerator-related problems afflicting Toyota.

February 2010
Toyota recalls 437,000 units of its 2010 Prius, Sai, Prius PHV (plug-in hybrid) and Lexus HS250h hybrids globally, including 155,000 in North America, 223,000 in Japan and 53,000 in Europe. It brings the total number of vehicles the world’s largest automaker has recalled over the last two months to 8.5 million vehicles.

Volatility through political risk

Politics has been at the heart of some of the sharpest market moves in early 2010, with much money to be made or lost as investors call developments right or wrong. It is a trend that looks likely to last.

It is not that political risk itself is higher. The key events in the 2008 crash and following market recovery – the decision not to bail out Lehman Brothers, the London G20 meeting, the decisions to launch stimulus packages – were essentially political moments with profound market impact.

“It’s more that it is affecting markets in a different way,” said Alastair Newton, managing director and political analyst for Nomura.

Essentially, while in 2008-9 a few political decisions helped set the tone for markets for months at a time, now political newsflow looks to be an increasingly important factor driving shorter term moves as well as longer-term trends.

Valuing banking stocks has become impossible without taking a view on how far President Obama will go as he takes on Wall Street with an eye to mid-term elections in the aftermath of the Democrats’ Senate defeat in Massachusetts.

Obama’s January bank reform announcement knocked major US indices down some four percent over two days. Market players will be nervously watching policymakers in the run-up to mid-term elections, with the uncertainty meaning investors will demand a higher risk premium and push prices lower.

Investors nervous over whether the Eurozone’s most indebted economies will default on their debts or be forced out of the euro must assess the ability of governments to force through cuts in the face of potential unrest and political strains.

They must also look at the political viability of rescue from the EU or the IMF if one of the so-called PIIGS – Portugal, Italy, Ireland, Greece or Spain – are pushed to the edge of collapse.

As Britain heads towards a parliamentary election that must be held before June, the pound looks set to be knocked up and down by opinion polls as markets worry a hung parliament could paralyse policymaking at the wrong moment.

Do you want volatility?
Most analysts say they believe the prospect of a Western European default or break in the single currency remains unlikely, but expect assets such as Greek, Spanish and Portuguese bonds and credit default swaps to be buffeted back and forth by political winds.

“It’s going to be a big driver of volatility,” said Newton. “If you don’t like volatility, they are not markets you want to be in. But if you do, there could be a lot of money to be made – or lost.”

That means investors can no longer rely on purely economic and market modelling, sending them rushing to both build their own knowledge and gain expert advice.

Economists covering Britain now scrutinise opinion polls, study key marginal constituencies and devise algorithms forecasting election outcomes alongside analysing interest rate prospects and economic growth.

Meanwhile, specialist risk consultancies more used to rougher frontier markets turn their eyes to Western economies.

“We’ve definitely seen an uptick in interest, particularly over southern Europe and Britain,” said Preston Keat, head of research for consultancy Eurasia Group. “It really began late last year but since January it has really taken off.”

Queries range from multinational firms wondering if they should have contingency plans for Eurozone breakup to specialist banks and brokerages who felt they lacked the in-house political expertise, he said.

Developed world markets must also keep an eye on emerging economies. Local politics in several Central and Eastern European economies – particularly Hungary, Latvia and Ukraine, all with elections this year – could imperil IMF deals and spark crises that could swiftly spill over borders.

Perhaps fortunately in terms of policy continuity, none of the troubled fringe Eurozone states have elections this year.

In contrast, the US mid-terms look set to drive more populist policy from the White House, impacting not just banking reform but also increasingly strained relations with China over everything from currency pegs to cybersecurity.

Rows over Google and weapons sales to Taiwan have yet to significantly spill over into global markets, but a more serious spat would be a different matter. In the background, tensions with Iran simmer and could again hit world markets.

Washington-linked political risk should fall after the mid-terms to rise again in time for the 2012 presidential poll, experts say, while in Britain whether risk falls after the election will depend on the size of the government majority.

Attention on the Eurozone could take longer to dissipate.

“I would say this could be with us for a year to 18 months,” said Eurasia’s Keat.

Shuttle Endeavour blasts off for space station

The space shuttle Endeavour bolted off its seaside launch pad on Monday on a voyage to install the last two main pieces of the International Space Station.

The early blastoff from the Kennedy Space Centre shattered the predawn tranquility with a deafening roar and a brilliant tower of flames that momentarily turned the dark Florida sky as bright as day.

Low clouds forced NASA to postpone Endeavour’s first launch attempt on Sunday morning. Scattered clouds also threatened visibility on Monday but cleared in time to meet flight safety rules.

The shuttle carries the station’s last connecting hub and a dome-shaped cupola with seven windows to provide the crew with panoramic views outside the station.

The modules were built in Italy for NASA and will complete US assembly of the orbital outpost, a $100bn project of 16 nations that has been under construction since 1998.

Four more shuttle missions remain to deliver cargo platforms, spare parts and experiments before the fleet is retired later this year.

“Every launch is a little bittersweet,” said Mike Moses, a shuttle programme manager at the Kennedy Space Centre. “We’re one closer to the end.”

The Endeavour crew includes commander George Zamka, pilot Terry Virts, flight engineer Stephen Robinson, spacewalkers Robert Behnken and Nicholas Patrick and mission specialist Kay Hire. The shuttle is scheduled to reach the station on Wednesday for a nine-day stay.

Riding green wave, Philips says ‘let there be LED’

The producer of one in four of the world’s lights, which sold its semiconductor business in 2006 after it was undercut by Asian rivals, has invested more than $5.47bn to ride the clean-tech wave and defend its world-leading position.

But this time, Philips is better prepared for competition.

The company is betting on a shift in the lighting market, away from inefficient incandescent light bulbs and towards light-emitting diodes or LEDs – perhaps best known for their use in the flashing indicators found on most consumer devices.

“In terms of value around 2015, LED will be bigger than conventional light sources,” said Philips executive Niels Haverkorn. In the fourth quarter of 2009, LED-based products made up more than 10 percent of Philips’ lighting sales for the first time.

Made of diodes, or chips, the first practical LED was a red light developed in 1962. Now the technology has advanced to enable them to produce lights across the colour spectrum.

To help draw attention to LEDs’ potential to scale up, come down in price and reduce carbon dioxide emissions, Philips at the turn of the year converted the famous numerals on the Times Square Ball to LED technology.

Other stunts have included a display of LED lights at the world heritage-listed windmills at Kinderdijk in the Netherlands and a solar-powered LED streetlamp at the Copenhagen climate talks.

LEDs’ advantages include long life, energy efficiency and the fact they do not contain mercury, as opposed to compact fluorescent lamps (CFLs), which after they became commercial in the 1980s were the first alternative to conventional bulbs.

Philips estimates LEDs made up just six to eight percent of the 45-50 billion euros in global lighting sales in 2009. The company, which had about 6.5 billion euros in annual lighting sales in 2009, expects the global lighting market to grow to more than 80 billion euros by 2015.

Regulation helps
To some extent, it is banking on regulation. The EU – which is phasing out old-style incandescent bulbs ahead of a total ban in 2012 – sees LEDs as a crucial step in reducing carbon dioxide emissions, because they use up to 80 percent less energy and last much longer.

About 16 billion conventional light bulb fixtures globally have to be replaced in the coming decades with LED lights. Researchers at consultancy iSuppli expect the LED market to continue to grow despite the economic crisis, estimating that in 2013 sales from LEDs globally will be around $15bn.

Although lighting is seen as a crucial driver of Philips’ future earnings growth, analysts see it as more of a long-term rather than short-term support for Philips’ stock.

“The lighting market is set to shift both in terms of light source and applications. Philips is trying to ride this curve and, in our view, has all the right ingredients in place if the industry were indeed to move in this direction,” said Jan Hein de Vroe, technology analyst at ING, who has a “buy” recommendation on the stock.

Of 37 analysts tracking Philips shares, 19 have a “strong buy” or “buy” rating, while 14 have a “hold” and four a “sell” or “strong sell” recommendation, according to StarMine data.

Competition ahead
Analysts also warn competition in the market will be brutal. Philips’ main rivals in the sector are Siemens’ Osram, General Electric, Sharp, Samsung, and Cree of the US.

Anticipating this – and building on lessons it learnt from sliding semiconductor prices – the 119-year old company is scaling up its LED output. Where before it used to sell just light bulbs, in LEDs the offer is a packaged “solution”, such as a luminaire, or the lamp and fitting combined.

“The manufacturing technique is quite similar to that seen in semiconductor manufacturing, where foundries compete mainly on price,” said De Vroe. “In that sense we think it is wise on the part of Philips to move their focus towards ‘solutions’.”

Philips sold a majority in its semiconductors business to a private equity consortium in 2006, retaining a minority interest in the company, renamed NXP. But it remains committed to lighting: in the business since 1891, it’s a veteran of illumination.

Price hurdles
But even if the company has a savvier strategy in approaching the modern LED market, the challenges it faces include current high prices which are deterring some retailers from stocking the products.

The quality of LED that can deliver a light that feels “warm” – a type that only large companies like Philips are currently able to produce – is very expensive.

It now costs about $46 to deliver 1,000 lumens – a measure of the power of light – or units of “warm” light, compared with $25 for the “cold” light variety.

By 2015, the cost of “warm” LED lights is expected to slide to $4 per 1,000 lumens versus $2 for “cold” lights, according to estimates from the US Department of Energy. To produce incandescent globes, it said, currently costs $0.29 per 1,000 lumens.

It expects the cost of producing LEDs to fall below that of compact fluorescent lamps in about 2013, but still be more expensive than an incandescent bulb.

Business users are enthusiastic, said Yvan Dejaeghere, director at wholesaler Technische Unie, a subsidiary of French electronics equipment distributor Sonepar.

“In our business-to-business professional segment we are seeing huge demand for new applications and new fixtures,” Dejaeghere said. The cost of replacing one conventional globe with an LED could be earned back within two years, he said.

LEDs are most frequently being used to replace conventional bulbs in restaurants and hotel lobbies, where they can take on a decorative effect due to their ability to change colours. Factories have yet to switch due to the high cost.

Philips’ business clients include the Marriott hotel chain and Heineken, which uses LED lighting in its Amsterdam brewery shop. Vodafone is also a client, while supermarkets Sainsbury and Tesco use LEDs in their refrigeration displays.

For consumers, it’s not so simple. The array of choices in lighting outlets can be dazzling: LEDs, conventional bulbs, fluorescent tubes or halogen lights?

Ralf Buehler, vice president for Europe and Middle East and Africa at LED lighting specialist Cree, said it may still take a while before LEDs will be available to all customers.

“We are five to six years away from a situation where you would go to one of the large do-it-yourself stores where they have lots and lots of these products at a commercially viable price in stock,” he said.

Gert Spaargaren, a professor in the Environmental Policy Group at Wageningen University in the Netherlands, said lighting retailers are proving slow to embrace the new technology.

“What is needed is that retailers … embrace the new products, integrate them into their mainstream assortment,” he said.

“Consumers show a really high willingness to go along with sustainable alternatives if they are offered in an appropriate way by appropriate providers.”

Saving endangered species: it’s the economy

Turtles like this 1.5 metre (5ft) female have probably been struggling out of the surf at night since before the dinosaurs disappeared 65 million years ago. The region is the main nesting site in the east Pacific for the critically endangered species.

Numbers of leatherbacks emerging onto this Costa Rican beach fell to 32 in the 2008-09 season from 1,500 two decades ago – due to factors such as nearby hotels, poaching of eggs, accidental snaring in fishermen’s nets and global warming. Arrivals so far this season are slightly up.

Far from the beach, other experts may give a new argument for conserving the turtles by studying whether their fast-clotting blood can give clues to aiding humans, or if the way they regulate buoyancy can inform submarine design.

In 2010 – the International Year of Biodiversity – the UN wants efforts to slow the accelerating pace of extinctions to reach beyond nature lovers, to companies and economists.

Shifting emphasis from emotional images of polar bears, pandas or leatherbacks that stress the fragility and beauty of nature, the focus is on a harder-headed assessment of how the natural world is a key to economic growth and new products.

“Boosting biodiversity can boost the global economy,” the UN Environment Programme said in a headline over a statement launching the theme. Natural services by coral reefs, forests or wetlands are too often undervalued, it said.

But profits from imitating nature have often been elusive. By some UN estimates, three species an hour are going extinct, most of them before they have even been identified.

“It’s like we have a house full of wedding presents,” said James Spotila, a professor of environmental science at Drexel University in Philadelphia. “And we’re throwing them out of the window before we even open them.”

Extinction crisis

UN reports say the world is facing the worst spate of extinctions since the dinosaurs vanished, due to factors such as expanding cities, forest clearance, overfishing, climate change and species disrupting new habitats.

Yet a hectare of intact coral reef, for instance, can be worth up to $1m a year for tourism, up to $189,000 for protecting coasts from storms, up to $57,000 as a source of genetic materials and up to $3,818 for fisheries, according to a preliminary UN-backed study in late 2009.

The problem is translating such estimates into cash.

“I always ask: ‘where’s the business proposal?’,” said Gunter Pauli, head of Zero Emissions Research and Initiatives which looks for opportunities in nature.

Many pharmaceutical firms rely on nature. Among recent examples, scientists developed the malaria drug artemisinin from sweet wormwood, while the Madagascan periwinkle and Pacific yew tree have both yielded treatments for cancer.

Beyond medicines, firms are looking to “biomimicry”, tricks evolved by nature such as adhesives inspired by the feet of gecko lizards that can walk on ceilings, or cellphone screens imitating iridescent butterfly wings to generate colours.

Companies including Royal Dutch Shell, Dupont and Nike work with the Montana-based Biomimicry Guild, which seeks to identify new ideas.

“It’s so fun to see the light go on in their eyes. They can see ‘we can make money and do the right thing’,” said Sherry Ritter of the Guild.

Still, Pauli said only three biomimicry products had secured annual turnover over $144.3m.

These are Velcro – Swiss inventor George de Mestral was inspired in the 1940s by plant burrs trapped on his dog’s fur – hypodermic needles which Terumo Corp modelled on the jab of a mosquito, and paints derived from a self-cleaning trick by the lotus plant, sold by US Sto Corp. and other groups.

Abalome Kevlar?

“A lot are nice, romantic ideas,” Pauli said. “The abalone (shellfish) produces materials stronger than Kevlar: correct. Commercial viability: zero. It’s too complicated.”

Among new business ideas, he said coffee farms in Colombia had created 10,000 jobs by using coffee waste as fertiliser to grow edible tropical mushrooms. In turn, the remaining waste can be sold as animal feed.

“If you say: ‘can we talk about triple cash flows?’ then the entrepreneur gets interested,” he said, referring to the three income sources in such a project.

Studies showing the utilitarian value of nature are an extra reason for conservation, said Ahmed Djoghlaf, Executive Secretary of the Convention on Biological Diversity.

It is only natural that these approaches, and the new data they generate, are receiving more attention since their estimates are suddenly becoming more robust, he said.

“Biodiversity decline is predominantly caused by economic activities in the broadest sense, and the policy debate all too often tends to pit ‘economic’ interests against ‘environmental’ interests. The recent work shows that this juxtaposition is fundamentally flawed,” he said.

The “Copenhagen Accord”, agreed by some nations at UN climate talks in 2009, will also seek to promote the use of tropical forests to soak up greenhouse gases, a new source of income for poor nations.

Spotila, a leatherback turtle expert, said turtle blood is quick to clot to avoid giving sharks a scent that can bring an attack. Scientists are studying turtle blood for possible clues to stem bleeding in humans, for instance after surgery.

And the leatherbacks, the biggest species of turtle, can dive deeper than other turtles, leading experts to wonder how they regulate buoyancy. That and the shape of their shells could give clues to submarine or ship design.

The International Union for Conservation of Nature is seeking corporate sponsors to slow losses of species after the world failed to reach a U.N. goal, set in 2002, of slowing the rate of extinctions of animals and plants by 2010.

“We failed miserably,” said Jean-Christophe Vie, deputy head of IUCN’s species programme. He said using economics to make the argument for protecting nature is often only stating the obvious.

“We need an economic argument, but I find it very sad,” he said. “Things like fisheries, timber, pollination, clean water. Can you imagine the size of the economy or company needed to (protect) that?”

On Playa Grande, researchers such as Tera Dornfeld mark the site of the eggs after the female turtle has filled in the hole with her giant rear flippers and returned to the ocean. Later, the eggs will be dug up and transferred to a hatchery.

In a local economic battle, park managers fear developers may win permission from politicians to develop hotels, roads and villas closer to the remote beach.

“I fear that more development here would be the final nail in the coffin for the turtles,” said Frank Paladino, professor of biology at Indiana Purdue University and director of research in the Las Baulas park that covers the beach.

In one sign of hope, an aging poster on the wall of the research centre says the turtles could all be gone by 2010. A turtle and her 49 eggs have proven that wrong.

55 nations set 2020 carbon goals since Copenhagen

“This represents an important invigoration of the UN climate change talks,” Yvo de Boer, head of the UN Climate Change Secretariat, said of the varying national promises for curbs on emissions until 2020 submitted by a January 31 deadline.

The countries, including top emitters led by China and the US, mostly reiterated commitments unveiled before December’s UN summit in Denmark, which disappointed many countries by failing to agree a new binding UN treaty.

It said the pledges covered 55 nations and amounted to 78 percent of global emissions from energy use.

“Greater ambition is required to meet the scale of the challenge,” de Boer said. “But I see these pledges as clear signals of willingness to move negotiations towards a successful conclusion.”

Mexico will host the next annual UN meeting, in late November and early December, as part of world efforts to avert more droughts, wildfires, floods, species extinctions and rising sea levels.

The Copenhagen Accord seeks to limit a rise in temperatures to below two degrees Celsius (3.6 Fahrenheit) above pre-industrial levels and sets a goal of $100bn a year in aid for developing nations from 2020 to help confront climate change.

It left blanks for countries to fill in their climate targets for achieving the 2C goal by January 31. Analysts say current targets are too lax and will mean temperatures rise by more than 2C.