EU rethinks biofuels guidelines

Europe's environment chief has admitted that the EU did not foresee the problems raised by its policy to get 10% of Europe's road fuels from plants

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Recent reports have warned of rising food prices and rainforest destruction from increased biofuel production.

The EU has promised new guidelines to ensure that its target is not damaging.

EU Environment Commissioner Stavros Dimas said it would be better to miss the target than achieve it by harming the poor or damaging the environment.

Clampdown promised

A couple of years ago biofuels looked like the perfect get-out-of-jail free card for car manufacturers under pressure to cut carbon emissions.

Instead of just revolutionising car design they could reduce transport pollution overall if drivers used more fuel from plants which would have soaked up CO2 while they were growing.

Fuel made from plants like corn are driving up food prices

The EU leapt at the idea - and set its biofuels targets.

Since then reports have warned that some biofuels barely cut emissions at all - and others can lead to rainforest destruction, drive up food prices, or prompt rich firms to drive poor people off their land to convert it to fuel crops.

"We have seen that the environmental problems caused by biofuels and also the social problems are bigger than we thought they were. So we have to move very carefully," Mr Dimas told.

"We have to have criteria for sustainability, including social and environmental issues, because there are some benefits from biofuels."

He said the EU would introduce a certification scheme for biofuels and promised a clampdown on biodiesel from palm oil which is leading to forest destruction in Indonesia.

Some analysts doubt that "sustainable" palm oil exists because any palm oil used for fuel simply swells the demand for the product oil on the global market which is mainly governed by food firms.

US expansion

Mr Dimas said it was vital for the EU's rules to prevent the loss of biodiversity which he described as the other great problem for the planet, along with climate change.

On Monday, the Royal Society, the UK's academy of science, is publishing a major review of biofuels. It is expected to call on the EU to make sure its guidelines guarantee that all biofuels in Europe genuinely save carbon emissions.

In the US the government has just passed a new energy bill mandating a major increase in fuel from corn, which is deemed by some analysts to be useless in combating rising carbon dioxide emissions.

The bill also foresees a huge expansion in fuel from woody plants but the technology for this is not yet proven.

Record data breaches in 2007

BOSTON - The loss or theft of personal data such as credit card and Social Security numbers soared to unprecedented levels in 2007, and the trend isn't expected to turn around anytime soon as hackers stay a step ahead of security and laptops disappear with sensitive information.

And while companies, government agencies, schools and other institutions are spending more to protect ever-increasing volumes of data with more sophisticated firewalls and encryption, the investment often is too little too late.

"More of them are experiencing data breaches, and they're responding to them in a reactive way, rather than proactively looking at the company's security and seeing where the holes might be,"

said Linda Foley, who founded the San Diego-based Identity Theft Resource Center after becoming an identity theft victim herself.

Foley's group lists more than 79 million records reported compromised in the United States through Dec. 18. That's a nearly fourfold increase from the nearly 20 million records reported in all of 2006.

Another group, Attrition.org, estimates more than 162 million records compromised through Dec. 21 — both in the U.S. and overseas, unlike the other group's U.S.-only list. Attrition reported 49 million last year.

"It's just the nature of business, that moving forward, more companies are going to have more records, so there will be more records compromised each year,"

said Attrition's Brian Martin.

"I imagine the total records compromised will steadily climb."

But the biggest difference between the groups' record-loss counts is Attrition.org's estimate that 94 million records were exposed in a theft of credit card data at TJX Cos., the owner of discount stores including T.J. Maxx and Marshalls. The TJX breach accounts for more than half the total records reported lost this year on both groups' lists.

The Identity Theft Resource Center counts about 46 million — the number of records TJX acknowledged in March were potentially compromised. Attrition's figure is based on estimates from Visa and MasterCard officials who were deposed in a lawsuit banks filed against TJX.

The breach is believed to have started when hackers intercepted wireless transfers of customer information at two Marshalls stores in Miami — an entry point that led the hackers to eventually break into TJX's central databases.

TJX has said that before the breach, which was revealed in January, it invested

"millions of dollars on computer security, and believes our security was comparable to many major retailers."

With wireless data transmission more common, hackers increasingly are expected to target what many experts see as a major vulnerability. Eavesdroppers appear to be learning how to bypass security safeguards faster than ever, said Jay Tumas, the head of Harvard University's network operations, at a recent conference for information security professionals.

"Within a year or two, these folks are catching up,"

Tumas said.

The two nonprofit groups' 2007 data also show rising numbers of incidents in which employees lose sensitive data, as opposed to cases of hacking.

Besides TJX's problem, major 2007 breaches include lost data disks with bank account numbers in Britain, a hacker attack of a U.S.-based online broker's database and a con that spilled resume contact information from a U.S. online jobs site.

"A lot of breaches are due to inadequate information handling, such as laptop computers with Social Security numbers on them that are lost,"

Foley said.

"This is human error, and something that's completely avoidable, as opposed to a hacker breaking into your computer system."

Attrition.org and the Identity Theft Resource Center are the only groups, government included, maintaining databases on breaches and trends each year. They've been keeping track for only a handful of years, with varied and still-evolving methods of learning about breaches and estimating how many people were affected.

Despite those challenges, the two nonprofits say it's clear 2007 will end up a record year for the amount of information compromised, because of greater data loss and increased reporting of breaches.

Both groups acknowledge many breaches may be missing from their lists, because they largely count incidents reported in news media that they consider credible. Media coverage has risen in part because of the growing number of states requiring businesses and institutions to publicly disclose data losses. Thirty-seven states, plus Washington D.C., now have such requirements.

Because of proliferation of such laws,

"it may take a year or two before things stabilize and we can see what's really happening,"

Foley said.

"If that's the case, then we'll know whether businesses are practicing better information-handling techniques."

Oil prices higher in Asian trade

SINGAPORE: Oil prices were higher in Asian trade on Wednesday on expectations of strong heating fuel demand as cold weather swept through the US midwest, dealers said.

In morning trade, New York's main contract, light sweet crude for February delivery, rose 31 cents to 94.44 US dollars per barrel from 94.13 dollars in late US trades on Monday.

Brent North Sea crude for February delivery gained 59 cents to 93.29 dollars per barrel.

Oil markets were closed on Tuesday for Christmas.

"What you are seeing is reasonably cold weather in the US which means we will see demand for heating oil,"

said Jason Feer, Asia-Pacific general manager for energy market analysts Argus Media in Singapore.

"The market sort of tends to view the cold weather as a bullish factor,"

he said.

A weekend storm reportedly left 11 people dead in car crashes across the central United States and grounded flights for Christmas holiday travellers.

New storm warnings were issued for the eastern Great Lakes region in both the United States and Canada.

The US is the world's biggest energy user and recently-released data suggest heating fuel demand is robust despite overall concerns about the state of the economy.

Data from the US Department of Energy's (DoE's) weekly report released last week showed crude stocks had fallen below their five-year average for the first time in more than three years.

Microsoft sees Xbox 360 sales growth in '08

Microsoft expects to sell more Xbox 360 consoles in 2008 than in 2007, with Europe standing out as a key battleground for dominance in the $30 billion video game industry.

In Japan, where the Xbox 360 has far lagged Nintendo's Wii and Sony's PlayStation 3, Microsoft said recent and upcoming games from popular Japanese designers should boost sales.

"We will sell more consoles next year than this year,"

Jeff Bell, head of global marketing for Microsoft's games business, told Reuters in an interview.

"We don't want to trade places with anybody,"

Bell said.

He said that the Xbox 360 was strong in Britain and was gaining market share in France and Germany, but that Sony had also been lifted in Europe by a recent price cut for the PS3.

"Europe for us is still the swing,"

Bell said.

"The biggest challenge is that Sony as a brand has had greater staying power than in other areas. Not just PlayStation 3, but Sony as a brand,"

Bell said.

Microsoft had seen some retailers sell out of the high-end Elite model of the console as well as of the lower-priced Arcade version.

Asked if Microsoft was benefiting from Nintendo's ongoing shortage of Wii machines, Bell said:

"Sometimes you're good, sometimes you're lucky, and it's wonderful when you're both."

Bell also took a dig at Nintendo, playing on an industry perception that independent video game publishers have not enjoyed great success on the Wii so far, in part because Nintendo's own offerings are so strong.

"Clearly, we have a competitor where they win and no one else wins. That is not sustainable, it's never been sustainable,"

Bell said.

Nintendo's U.S. president, Reggie Fils-Aime, told Reuters earlier this week that perception was misguided, and he pointed to recent market data showing that 60 percent of Wii game sales in November came from outside publishers.