IEA Unveils World Energy Outlook 2014: Looking Ahead to 2040

November 20, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Editor’s Note: In observance of the Thanksgiving holiday, The Climate Post will not circulate next week. It will return on December 4.

The International Energy Agency (IEA) has released its World Energy Outlook (WEO) 2014 report, which for the first time provides energy trend projections through the year 2040. Among the key challenges in the next two and a half decades is, a 37 percent rise in global energy demand, driven mainly by emerging markets in Asia, Africa, the Middle East and Latin America. Asia will account for 60 percent of global growth in demand, and by early 2030s, China may surpass the U.S. as the world’s largest oil consumer.

“The short-term picture of a well-supplied oil market should not disguise the challenges that lie ahead as reliance grows on a relatively small number of producers,” according to the WEO report.

The IEA projects that global oil consumption will rise from 90 million barrels a day in 2013 to 104 million barrels a day in 2040, requiring a $900 billion investment in oil and gas development by the 2030s.

Overall use of coal is projected to decrease slowly in demand, while use of renewable energy from wind, solar and hydropower will grow. The IEA anticipates renewables will saturate one-third of global energy demand by 2040.

CO2 emissions are expected to grow by one-fifth by 2040, which puts the world’s temperature well on track to rise to 3.6 degrees Celsius by the end of this century, increasing the risk of droughts, rising sea levels, damaging storms and mudslides.

According to IEA projections, limiting global temperature rise to 2 degrees Celsius deemed by U.N. as the level necessary to avoid dangerous changes would require the world to ramp up low-carbon energy investments by four times their current levels—bringing annual global investment up to approximately $1 trillion.

On the domestic front, a majority of Americans support stricter regulations on carbon emissions, according to a new poll by Yale’s Project on Climate Communication. Further, two thirds of those polled (1,275 adults) support limits on carbon dioxide emissions even after being told such measures would raise power prices.

U.S. Pledges $3 Billion to UN’s Green Climate Fund

On the heels of its climate deal with China, the U.S. announced its intent to contribute $3 billion to the United Nation’s Green Climate Fund, which was established in 2013 to provide support to developing countries in reducing greenhouse gas emissions. The “game-changing pledge,” made by President Obama on the eve of the G-20 Summit in Brisbane, Australia, last week, makes the U.S. the fund’s largest contributor. The Obama administration has not specified whether its pledge will come from existing sources of funding or new appropriations from Congress—a strategy that could face stiff resistance from Republican lawmakers.

“The contribution by the U.S. will have a direct impact on mobilizing contributions from the other large economies,” said Hela Cheikhrouhou, executive director of the Green Climate Fund. “The other large economies—Japan, the U.K.—have been watching to see what the U.S. will do.”

It did not take long for Japan to follow suit with a $1.5 billion pledge to the fund. To date, the U.N. has received pledges from 13 countries totaling $7.5 billion—three-quarters of its $10 billion goal. Rich countries meet in Berlin to further discuss the 2014 goal where pledges reached $9.3 billion.

Panel Approves Rules for Unconventional Oil and Gas

After several years of heated debate, the North Carolina Mining and Energy Commission approved a detailed list of regulations to guide companies interested in securing unconventional oil and gas permits in the state. The rules were unanimously approved by commission members after review of approximately 217,000 public comments by 30,000 groups and individuals.

One of the rules revised by the commission in light of those comments calls for inclusion of leak detection systems and continuous monitoring of liners for open pits where fluids such as drilling waste are stored.

The approved regulations will be reviewed in December by the NC Rules Review Commission and in January by the state legislature. The commission has identified a number of areas for continued work, including authority to stop a company’s work.

“Just because we don’t have that stop-work authority doesn’t mean we can’t stop the work on site,” said Amy Pickle, vice chair of the commission and director of the State Policy Program at Duke University’s Nicholas Institute for Environmental Policy Solutions. “If something is going wrong, there’s injunctive authority, there is the ability to go to court to require them to stop working, there’s an ability through inspections and monitoring to revoke that permit.”

Across the country, unconventional oil and gas issues continue to be highly polarizing, as measures passed during mid-term elections revealed. A development ban was passed by the town of Denton, the Texas city where the earliest exploration began. In a compromise plan, limited development was approved by the U.S. Forest Service for the George Washington National Forest in Virginia. A 2011 plan draft would have allowed drilling in much of the forest’s 1.1 million acres.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.


U.S., China Reach Climate Deal

November 13, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Two nations that account for more than one-third of all greenhouse gas emissions reached a climate deal. The United States will accelerate the pace of its net greenhouse gas emissions reductions from 17 percent below 2005 levels by 2020 to 26–28 percent by 2025. China will increase the non-fossil fuel share of all its energy to approximately 20 percent—roughly a fifth of its energy supply—by 2030.

“This is a major milestone,” said President Obama. “This is an ambitious goal, but this is an achievable goal. We have a special responsibility to lead the world effort to combat global climate change.”

The deal was reached after several rounds of talks between the two nations. At a joint press conference where the deal was announced, Obama indicated that he hoped the deal would “encourage all major economies to be ambitious and all developed and developing countries to work across divides” so that an agreement could be reached on climate change targets in Paris next year.

Chinese President Xi Jinping had similar comments.

“We agreed to make sure international climate change negotiations will reach agreement as scheduled at the Paris conference in 2015 and agreed to deepen practical cooperation on clean energy, environmental protection and other areas,” he said. The deal calls for China to deploy an additional 800–1,000 gigawatts of nuclear, wind, solar and other zero-emission energy sources—a capacity greater than that of all the coal–fired power plants in China and nearly equal to total electricity generation in the United States. Among other initiatives on which the two countries agreed: Expand joint clean energy research and development, advance major carbon capture and storage demonstrations, enhance cooperation on hydrofluorocarbons, creating a federal framework for cities in both countries to share experiences and best practices for low-carbon economic growth and adaptation to climate change impacts, and boosting trade in “green” goods, including energy efficiency technology and resilient infrastructure.

China is still largely poor, but its economy and energy use is still growing rapidly. At the same time, China is combating severe air pollution.

“Just the fact that they agreed to cap their emissions in the future is a significant development,” said Brian Murray, director of the Environmental Economics Program at Duke University’s Nicholas Institute for Environmental Policy Solutions. “As important as these two countries are, they can’t get the job done working alone. But without them, the world can’t get the job done.”

Will China’s pledge keep the climate from warming 2 degrees Celsius above pre-industrial levels—a scientific benchmark for averting dangerous climate impacts? A number of scientists say it falls short of what is needed to hit that target.

Congressional Republicans are skeptical of the deal. “As I read the agreement, it requires the Chinese to do nothing at all for 16 years, while these carbon emission regulations are creating havoc in my state and other states across the country,” said Mitch McConnell, who is in line to become the new Senate majority leader in January.

Grid Reliability In Question

New analysis by the North American Electric Reliability Corporation (NERC) discusses the potential impacts of the U.S. Environmental Protection Agency’s (EPA) Clean Power Plan on grid reliability (subscription). Specifically, NERC points to rapid transition as a factor in damaging capacity margins, increasing the difficulty of maintaining power quality and leaving the grid vulnerable to extreme weather.

The EPA said the report on the impact of the Clean Power Plan, which would reduce carbon emissions from existing fossil fuel–fired power plants, offered no new analysis and overlooks new capacity that will be built by 2020.

“The world is going to change regardless of this new proposed rule, and we know new capacity is going to build and NERC just ignores that completely,” a staff member in the EPA’s Office of Air and Radiation told Greenwire (subscription). “There are a lot of assertions and claims in the report that aren’t really substantiated by any particular analytics they mention, or supported by a deeper look into the issues.”

A U.S. Department of Energy study, due out in 2015, will examine the rule’s impact on utilities, according to The Hill.

OPEC Reduces Forecast Amid Low Oil Prices

In its annual World Oil Outlook, the Organization of the Petroleum Exporting Countries (OPEC), which supplies a third of the world’s crude oil, cut demand forecasts to 28.2 million barrels per day in 2017—a 14-year low. The 2014 report estimates approximately 600,000 barrels a day less than the 2013 report and 800,000 below the amount required this year.

The report further states that there will be a “small decline in real values” over this decade, together with a “constant nominal price” of $110 a barrel between now and 2020.

Booming U.S. oil production has put domestic output on the same level as that of energy giants Russia and Saudi Arabia, but oil prices are on the decline. UT San Diego News says the overall economy may still win, noting that “we still consume far more petroleum—in the form of gasoline and thousands of related products—than we pump from the ground. This means import costs are falling, too.”

Despite the decline in oil prices—to some $77 a barrel—companies like BP and Total are continuing to invest in major projects.

“We are not changing our investment decisions because of this [current price],” said Bob Dudley, BP chief executive.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.


Climate Change Risks, Impacts Focus of Reports

November 6, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The United Nations Intergovernmental Panel on Climate Change (IPCC) released its Fifth Assessment Synthesis Report warning that greenhouse gas levels are at the highest they have been in 800,000 years.

“We have little time before the window of opportunity to stay within the 2C of warming closes,” said IPCC chairman Rajendra Pachauri. “To keep a good chance of staying below the 2C, and at manageable costs, our emissions should drop by 40 to 70 percent globally between 2010 and 2050, and falling to zero or below by 2100.”

To have a 66 percent chance of limiting total average warming to the U.N.-set threshold of less than 2 degrees Celsius relative to preindustrial levels, the world’s population can emit no more than one trillion tons of carbon dioxide. But we’ve already emitted more than half that much.

The report includes conclusions of three previous IPCC reports on the science, impacts of climate change and on ways to address it.

One key finding: It’s “extremely likely” that humans are contributing to climate change—mainly through the burning of fossil fuels. There is evidence—through sea-level rise, shrinking glaciers, decreasing snow and ice cover and warmer oceans—that human-caused climate change is happening now.

The report indicates that “continued emission of greenhouse gases will cause further warming and long-lasting changes in all components of the climate system, increasing the likelihood of severe, pervasive and irreversible impacts.” In fact, if we stick to our current path, we could see 3.7 to 4.8 degrees Celsius of warming by the end of the century.

The report is timed just ahead of international negotiations in Lima, Peru, set to take place in December and intended to establish parameters for an emissions reduction agreement that negotiators may sign in Paris next year.

This piggy backs on another recent report, Climate Change and Environmental Risk Atlas 2015, provides comparable risk data for 198 countries across 26 climate-related issues. Echoing studies by groups such as the Pentagon, the report finds climate change and food insecurity could lead to increased civil unrest and violence in 32 countries assessed in the next 30 years. The countries include Sierra Leone, South Sudan, Nigeria, Chad, Haiti, Ethiopia and the Philippines. All 32 depend on agriculture; 65 percent of their combined working population are employed in farming.

“I think the most surprising thing [the new data shows] is how closely linked food security and climate change are,” said James Allan, associate director of global analytics firm Maplecroft. “We were not expecting this level of linkage.”

New Cause for Arctic Warming?

A new mechanism may be a large contributor to warming in the Arctic according to a new study in Proceedings of the National Academy of Sciences that looked at a long-wavelength region of the electromagnetic spectrum called far infrared.

“Our research found that non-frozen surfaces are poor emitters compared to frozen surfaces,” said lead author Daniel Feldman. “And this discrepancy has a much bigger impact on the polar climate than today’s models indicate. Based on our findings, we recommend that more efforts be made to measure far-infrared surface emissivity. These measurements will help climate models better simulate the effects of this phenomenon on the Earth’s climate.”

Through their simulations, researchers revealed that far-infrared surface emissions have the biggest impact on the climates of arid high-latitude and high-altitude regions. In the Arctic, open oceans were found to hold more far-infrared energy than sea ice, resulting in warmer oceans, melting sea ice and a 2-degree Celsius increase in the polar climate.

The study’s release follows a prediction by one of the leading authorities on the physics of the northern seas who claims the Arctic Ocean may be ice-free by the year 2020.

White House Releases Federal Agency Climate Plans

The White House released a series of reports documenting 38 federal agencies’ vulnerabilities to climate change and their plans to reduce their greenhouse gas emissions, save energy, cut waste and save taxpayer dollars.

“Under President Obama’s leadership, federal agencies have already made significant progress in cutting carbon pollution, improving energy efficiency, and preparing for the impacts of climate change,” said Mike Boots, who leads the White House Council on Environmental Quality. “These agency climate plans underscore the administration’s commitment to leading by example throughout the federal government so we can leave behind a planet that is not polluted and damaged and protect our ability to provide the vital services American communities depend on.”

Among some of the findings by agency:

  • The U.S. Department of Agriculture estimates an increase by 2050 of up to 100 percent in the number of acres annually burned by wildfires.
  • The National Aeronautics and Space Administration (NASA) not only sees rising sea levels and extreme storms as a major risk but believes that climate change could hinder its ability to get to space. It writes that “Many agency assets—66 percent of assets when measured by replacement value—are within 16 feet of mean sea level and located along America’s coasts, where sea level rise and increased frequency and intensity of high water levels associated with storms are expected.”
  • The U.S. Department of Health and Human Services outlines risks that include more frequent or worse extreme heat events—one weather-related cause of death in the United States.

The reports stem from a five-year process that began with an executive order by President Obama in 2009. The order called on the federal government to reduce its emissions and become more energy efficient and sustainable. According to separate documents, measures to fulfill the order have resulted in a 17 percent decrease in emissions by the federal government since Obama came into office.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.


EPA Refines Pollution Rules

October 30, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Last week the U.S. Environmental Protection Agency (EPA) was told by a federal appeals court that it could move forward with implementing a program to curb air pollution that crosses state lines. The Cross State Air Pollution Rule (CASPR) would require 28 states to reduce emissions of nitrogen oxides and sulfur dioxide by power plants. The rule establishes a two-step process: 1) The EPA determines if a state contributes more than 1 percent of the pollution causing a downwind state to exceed emissions standards to 2) The EPA using modeling analysis to determine state emissions targets (subscription). CASPR’s first phase would be implemented next year, with the final phase beginning in 2017.

Days later, the agency announced it’s making additional data available to elicit further comments on another controversial rule. In its Notice of Data Availability (NODA), the EPA points to areas of “concern” raised by stakeholders during the public comment period for its proposed Clean Power Plan, which aims to reduce carbon dioxide pollution from existing power plants. EPA Assistant Administrator Janet McCabe indicated that the agency hopes to get additional comments before the public comment period ends Dec. 1— specifically comments related to the trajectory of emissions reductions from 2020 to 2029, the way building blocks are established and the way in which state goals are calculated.

“We wanted to address issues where the feedback we were getting went beyond what we laid out in the preamble [of the Clean Power Plan],” she said.

Utility Dive and Bloomberg BNA break down stakeholder concerns in detail and describe how the EPA is looking to address them.

Along with the NODA, the EPA announced a supplemental proposal to reduce carbon pollution on tribal lands and territories housing fossil-fuel fired power plants. Like the Clean Power Plan does for states, the proposal sets area-specific goals for Indian country and territories and provides options for meeting those goals. The proposal, which relies on and builds upon measures outlined in the Clean Power Plan, would affect coal-fired power plants on lands belonging to three tribes—the Navajo Nation, the Ute Tribe of the Uintah and Ouray Reservation and the Fort Mojave Tribe—as well as plants in Puerto Rico and Guam.

EU Makes Climate Promise Ahead of U.N. Negotiations

Fresh off talks in Bonn, Germany, that were meant to make progress on identifying the information that countries will have to provide next year when making individual pledges for curbing greenhouse gas emissions, European Union leaders have announced a new emissions deal. It will cut greenhouse gas emissions 40 percent by 2030, compared with 1990 levels, and will increase energy efficiency and renewables by 27 percent. A “flexibility clause” was added to the final text to ensure that the EU can return to the targets after the U.N. summit in December 2015.

The deal sends a signal to the rest of the world to take action on a climate treaty at the upcoming Conference of the Parties in Paris. The EU is responsible for about one-sixth of the world’s greenhouse gas emissions.

Rising greenhouse gases are increasing the likelihood of “severe, pervasive and irreversible” impacts for people and ecosystems, according to a draft of the Intergovernmental Panel on Climate Change (IPCC) Synthesis Report. Due for approval and release Nov. 2, the report provides a summary of three other IPCC publications issued over the course of the last year. It is expected serve as a road map for upcoming U.N. negotiations.

According to a leaked draft of the report obtained by ClimateWire, to avoid a global temperature rise of 2 degrees Celsius above preindustrial levels, net global emissions must decrease 40–70 percent by 2050 and hit zero by the end of the century.

Study: 2010 BP Spill Left ‘Significant Quantities’ of Oil on Gulf Floor

Oil remnants from BP’s 2010 Deepwater Horizon spill have formed rings—roughly the size of Rhode Island—near the site of the blown-out well, according to a new study in the journal Proceedings of the National Academy of Sciences. The study suggests that “significant quantities” of crude are present near the site of the Macondo well.

“We don’t know with certainty how the oil reached the bottom,” said David Valentine, lead author and professor at the University of California-Santa Barbara. “We do provide hypotheses, that a combination of coagulation and bacterial growth drove the oil into a floc form and facilitated particles or droplets sinking to the seafloor. Some of the oil was certainly eaten by bacteria, and other components dissolved into the water.”

BP criticized the research, saying authors “failed to identify the source of the oil, leading them to grossly overstate the amount of residual Macondo oil on the sea floor and the geographic area in which it is found.”

During the study, researchers collected more than 3,000 samples, analyzing them for a hydrocarbon found in oil called hopane. What they traced represented 4–31 percent of the oil thought to be trapped deep in the ocean (as much as 16 percent of the total oil spilled).

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.


Ozone Focus of EPA’s Latest Rulemaking

October 23, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The U.S. Environmental Protection Agency (EPA) finalized a rule that sets domestic production consumption limits for hydrochlorofluorocarbons (HCFCs)—eventually phasing them out completely by 2020. The rule aims to reduce emissions from leakage and stockpiles of four HCFCs, a class of refrigerant linked to ozone depletion and climate change.

“This rule finalizes allowed amounts of HCFC production and import in 2015–2019 that protect human health and the environment, while also encouraging transition to non-ozone-depleting alternatives and greater recycling of existing HCFCs,” the EPA said, adding that the rule “should promote a smooth and stable transition, since without this rule, domestic production and consumption of these HCFCs is prohibited as of January 1, 2015.”

The final rule caps HCFC-22 at 10,000 megatons, down from the 13,700 megatons included in the EPA’s December proposal (subscription). It also creates an incentive for commercial consumers relying on outdated equipment that uses HCFCs to convert to energy-efficient models.

Meanwhile, the EPA is tasked—under court order—with proposing a change to the existing National Ambient Air Quality Standards (NAAQS) for ground-level ozone by Dec. 1. Agency watchers speculate that the standards, currently at 75 parts per billion, will be made more stringent. Although some have argued that the cost of tighter standards would be high—$11 billion in 2020, according to the EPA—a new report by the Congressional Research Service (CRS) indicates these concerns may be premature.

“There has been speculation regarding the economic impact of a NAAQS revision,” CRS’s James McCarthy writes. “At the moment, no one knows what a revised NAAQS would cost, because EPA hasn’t proposed one and we don’t know what areas will be designated nonattainment. But even after a proposal is signed, cost estimates will be little better than guesses.”

NOAA Reports Forecast Record Yearly Temps, Winter Outlook

Year to date, 2014 ties with 1998 and 2010 as the warmest year on record, according to new analysis from the National Oceanic and Atmospheric Administration (NOAA). Recorded temperatures were 1.22 degrees Fahrenheit above average.

“If 2014 maintains this temperature departure from average for the remainder of the year, it will be the warmest year on record,” the report indicated. Why? The increased chance for an El Nino—a warming of the tropical Pacific Ocean affecting weather worldwide. These rising ocean temperatures have implications for coral reefs, sea level rise and weather patterns worldwide.

When it comes to winter, the southern United States will see colder weather and western states warmer temperatures based on NOAA’s yearly winter outlook.

“Last year’s winter was exceptionally cold and snowy across most of the United States, east of the Rockies,” NOAA said. “A repeat of this extreme weather pattern is unlikely this year, although the [outlook] does favor below-average temperatures in the south-central and southeastern states.”

Tackling Rising Emissions

New data from the Energy Information Administration (EIA) indicates that carbon dioxide emissions from the U.S. energy sector increased 2.5 percent between 2012 and 2013—a jump from 5,267 million metric tons (MMmt) to 5,396 MMmt. Despite the increase, emissions were 10 percent below their 2005 level.

“An increase in energy intensity … was a leading cause of the 2013 increase in energy-related CO2 emissions when compared with the trend from the prior decade, which was -2.0pc,” EIA said. “Weather played an important role in the year-to-year increase in CO2 emissions.”

Negotiators from more than 190 nations were urged to “build bridges” toward a new global pact to curb greenhouse gas emissions at a meeting in preparation for talks in Lima, Peru, this December. Nations are working toward an agreement, to be decided in Paris in 2015, that would cut these emissions beginning in 2020. On the table—steps that can be taken to increase commitments from countries and the extent to which a 2015 treaty will be legally binding. Two themes in particular—carbon capture, storage and use; and non-CO2 greenhouse gases like methane and HCFCs are dominating the discussions.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.


U.S., Military to Plan More Strategically for Climate Change

October 16, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Climate change is a “threat multiplier” and worse than many of the challenges the U.S. military is already grappling with, according to a new report by the U.S. Department of Defense (DoD). The New York Times indicated that the report marks a departure from the DoD’s previous focus on preparing bases to adapt to climate change. The DoD now calls on the military to incorporate climate change plans in its strategic thinking and budgeting.

“Among the future trends that will impact our national security is climate change,” said Defense Secretary Chuck Hagel. “Rising global temperatures, changing precipitation patterns, climbing sea levels, and more extreme weather events will intensify the challenges of global instability, hunger, poverty, and conflict. They will likely lead to food and water shortages, pandemic disease, disputes over refugees and resources, and destruction by natural disasters in regions across the globe.”

Climate change will now be factored into several day-to-day decisions, including those about training exercises, purchasing decisions and assessment of the risk of infectious disease. The report points to inclusion of floods or storms in war game scenarios, testing of new equipment to adapt to warmer ocean conditions and preparedness for an increasing number of natural disasters.

“Politics or ideology must not get in the way of sound planning,” the report’s introduction stated. “Our armed forces must prepare for a future with a wide spectrum of possible threats.”

At a lecture at Yale University earlier this week, U.S. Climate Envoy Todd Stern discussed the country’s climate vision and the potential for a global climate pact touting flexible standards, financial assistance for developing countries and an accountability system at the 2015 U.N. Summit.

“The usual brinkmanship of holding cards until the eleventh hour is a bad bet because too much is riding on this negotiation,” Stern said. “We can’t afford to miss the opportunity to establish an ambitious, workable, new international climate order.”

According to a new fact sheet from the Environmental and Energy Institute, Americans, generally, agree that climate change is happening. The finding is based on polls from a variety of sources from 2013 to 2014.

Lower Oil Prices Have Multiple Effects

Amid reports of falling oil prices, the International Energy Information Administration (EIA) lowered its oil demand forecast to 93.5 million (bpd). The change, it said, was supported by near-four-year low prices.

Downward prices have been a boon to consumers at the pump, but as one economist tells Reuters, they are a two-edged sword. “Initially, (a lower oil price) will provide a boost to an economy that already has some momentum,” said Diane Swonk, chief economist at Mesirow Financial. “It’s like a tax cut. The problem is that it will come back to haunt us in 2015.”

The American energy boom combined with a sluggish global economy have led to a crude oil price correction with global impacts—nuancing debate about the need for major pipeline projects, potentially helping refiners and threatening to hit energy exporters like Russia and Iran harder than the recent U.S. economic sanctions.

UCS: EPA Clean Power Plan Could Use Tweaks

Some details in the U.S. Environmental Protection Agency (EPA) rules for regulating carbon dioxide from existing power plants—the Clean Power Plan—could be fine-tuned, a new report from the Union of Concerned Scientists (UCS) states. The group’s proposed approach for setting state targets would result in renewable energy supplying 23 percent versus the Clean Power Plan’s 12 percent of U.S. electricity by 2030.

UCS argues that the EPA’s current proposal doesn’t capture the rate at which renewables have been deployed across the country.

“Our renewable target is a percentage of electricity sales in the state that can either be met by having in-state generation or purchasing renewables from another state,” said UCS President Ken Kimmell.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.


Studies Focus on Warming of Oceans

October 9, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Oceans absorb carbon dioxide and 90 percent of the heat caused by human activity—making their warming a critical topic for climate research. Two new studies—one on the upper oceans and one on deeper ocean depths—share findings about climate change’s effect on these water bodies.

The first study, in the journal Nature Climate Change, provides the first estimate of global warming’s effect on upper-ocean depths between 1970 and 2004.

“This underestimation is a result of poor sampling prior to the last decade and limitations of the analysis methods that conservatively estimated temperature changes in data-sparse regions,” said lead author and oceanographer Paul Durack. “By using satellite data, along with a large suite of climate model simulations, our results suggest that global ocean warming has been underestimated by 24% to 58%. The conclusion that warming has been underestimated agrees with previous studies, however it’s the first time that scientists have tried to estimate how much heat we’ve missed.”

Researchers used temperature measurements for the upper 2,300 feet of the oceans, satellite measurements of sea level and computer models to find the rate of sea-level rise, which they compared to the rise measured by satellites for each hemisphere.

The second study, by NASA’s Jet Propulsion Laboratory, examined satellite and direct ocean temperature data from 2005 to 2013. It found that depths deeper than 1.24 miles have not warmed measurably.

“The deep parts of the ocean are harder to measure,” said the study’s lead author William Llovel. “The combination of satellite and direct temperature data gives us a glimpse of how much sea level rise is due to deep warming. The answer is—not much.”

The study also found that expansion of warming waters caused a third of the planet’s 2.8 millimeters of annual sea-level rise. Eventually, more accurate measurements of the deep ocean may be on their way through floating probes, collectively known as Deep Argo, which will sample ocean temperatures down to 19,700 feet.

Court Rulings Leave EPA Rules Untouched

This week, the U.S. Supreme Court left intact a federal appeals court decision that the U.S. Environmental Protection Agency (EPA) had adequate scientific evidence to tighten standards, drafted under former President George W. Bush, for ozone pollution.

The case came to the Supreme Court after an appeals court rejected arguments by industry groups that the rules were too stringent. By declining to hear the case, the justices left the standards in place.

Another challenge by Nebraska’s attorney general to proposed EPA regulations setting carbon limits for new power plants was dismissed by U.S. District Judge John Gerrard. The lawsuit had claimed that the “impossible standards imposed by the EPA will ensure no new power plants are built in Nebraska.”

“As the EPA points out, the State of Nebraska’s attempt to short-circuit the administrative rulemaking process runs contrary to basic, well-understood administrative law,” Judge John Gerrard wrote in his ruling. “Simply stated, the state cannot sue in federal court to challenge a rule that the EPA has not yet actually made.”

Decreases in Energy Costs

The U.S. Energy Information Administration (EIA) predicts U.S. households will spend less from October to March on heating bills due to warmer winter temperatures.

“U.S. households in all regions of the country can expect to pay lower heating bills this winter, because temperatures are forecast to be warmer than last winter and that means less demand for heat,” said EIA Administrator Adam Sieminski. Specifically, the EIA expects a decline of 15 percent in the cost of home heating oil, roughly 5 percent in the cost of natural gas and 2 percent in the cost of electricity. A decrease in the cost of natural gas and electricity is another contributing factor to the cost drop for households, according to the EIA.

A new study by the International Monetary Fund expands on how a boom in natural gas production—specifically related to shale gas—has helped to lower the cost of gas and energy prices for Americans. Since 2000, shale gas production has grown from 1 percent of total U.S. natural gas production to nearly 50 percent.

That increase has had global implications.

“So far, energy users in the United States have been the main beneficiaries of the energy prices declines that have resulted from the U.S. shale revolution,” said co-author Rabah Arezki. “However, that revolution has helped to stabilize international energy prices, including by freeing global energy supply for European and Asian markets, thus offsetting some of the shortages attributable to geopolitical disruptions. The shale gas boom has caused ripple effects to other energy sources around the globe, displacing coal from the United States to Europe, lowering energy costs and imposing a ‘significant impact on the geography of global energy trade.’”

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.


Studies Link Climate Change to Recent Extreme Weather Events

October 2, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

New research in the Bulletin of the American Meteorological Society finds that climate change influenced the majority of 16 extreme weather events in 2013. Specifically, it found evidence that climate change linked to human causes—particularly burning of fossil fuels—increased the odds of nine extreme events: amplifying temperature in China, Japan, Korea, Australia and Europe; intense rain in parts of the United States and India and severe droughts in New Zealand and California.

“It is not ever a single factor that is responsible for the extremes that we see; in many cases, there are multiple factors,” said Tom Karl, director of National Oceanic and Atmospheric Administration’s (NOAA’s) National Climatic Data Center, of the third NOAA-led annual report to make connections between human-caused climate change and individual extreme weather events.

Twenty groups of scientists conducted independent peer-reviewed studies on the same 16 extreme events occurring on four continents to arrive at their conclusions.

“There is great scientific value in having multiple studies analyze the same extreme event to determine the underlying factors that may have influenced it,” said Stephanie C. Herring of NOAA’s National Climatic Data Center and lead report editor. “Results from this report not only add to our body of knowledge about what drives extreme events, but what the odds are of these events happening again—and to what severity.”

Although the report concludes that the long durations of heat waves “are becoming increasingly likely” due to human-caused climate change, the effects of such change on other types of extremes—California’s drought and extreme rain in Colorado—are less clear.

“Temperature is much more continuous as opposed to precipitation, which is an on/off event,” said Karl. “If you have an on/off event, it makes the tools we have a little more difficult to use.”

Although the NOAA study reached mixed conclusions about the ongoing California drought’s connection to climate change, new research out of Stanford University is a bit more confident. The Stanford study found it is “very likely” that atmospheric conditions associated with the unprecedented drought in the state are linked to human-caused climate change.

“Our research finds that extreme atmospheric high pressure in this region—which is strongly linked to unusually low precipitation in California—is much more likely to occur today than prior to the human emission of greenhouse gases that began during the Industrial Revolution in the 1800s,” said Noah Diffenbaugh, a Stanford climate scientist.

According to the study, these high pressure ridges—currently parked over the Pacific Ocean—are now three times more likely to occur, and as long as high levels of greenhouse gases remain severe, drought will become more frequent.

Emissions from Industrial Facilities Rose Last Year

Reported greenhouse gas emissions from large industrial facilities were 0.6 percent—or roughly 20 million metric tons—higher in 2013 than in the year previous, according to new data from the U.S. Environmental Protection Agency (EPA), which linked the rise to greater coal use for power generation. A large majority of the increase, 13 million metric tons, was from the power sector alone—though overall emissions from power plants are down 9.8 percent since 2010. Reported emissions from the oil and natural gas sector declined 12 percent from 2011 levels, according to the report.

The news comes on the heels of an extension of the public comment period on EPA’s proposed Clean Power Plan, which aims to reduce greenhouse gas emissions from existing power plants, and of new comments by EPA Administrator Gina McCarthy concerning the proposal.

There will be “changes between proposal and final,” said McCarthy. “You may see adjustments in the state levels. You may see adjustments in the framework,” McCarthy noted, referring to the emissions reduction targets the EPA proposed for each state and to the formula used to calculate those targets. The changes could also include updates to the values for nuclear power and natural gas generation.

IEA Says Solar Could Become Dominate Energy Source by 2050

Solar could surpass fossil fuels as the largest source of electricity by mid-century, according to reports issued by the International Energy Agency (IEA). The reports suggests that together solar photovoltaic systems (PV) and concentrating solar power (CSP) could provide 27 percent of the world’s energy by 2050; fossil fuels would account for somewhere between 12 percent and 20 percent.

“The rapid cost decrease of photovoltaic modules and systems in the last few years has opened new perspectives for using solar energy as a major source of electricity in the coming years and decades,” said IEA Executive Director Maria van der Hoeven. “However, both technologies are very capital intensive: almost all expenditures are made upfront. Lowering the cost of capital is thus of primary importance for achieving the vision in these roadmaps.”

By 2050, the IEA said, PV will surge from today’s 150 gigawatts of installed capacity to 4,600 gigawatts, while CSP will increase from 4 gigawatts to 1,000 gigawatts (subscription). These projections are based on the IEA’s expectations that China and the United States will remain top installers for the foreseeable future and that PV will dominate up until 2030.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.


World Sees Some Tangible Outcomes from U.N. Climate Summit

September 25, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

World leaders gathered in New York this week for the United Nations Climate Summit, a meeting aimed at raising carbon reduction ambitions and mobilizing progress toward a global climate deal. In speeches at the summit, President Obama and other leaders recognized that countries across the world are feeling climate change effects, particularly extreme weather.

“In America, the past decade has been our hottest on record,” said Obama, who also announced the launch of new scientific and technological tools to increase global climate resilience and extend extreme weather risk outlooks. “Along our eastern coast, the city of Miami now floods at high tide. In our west, wildfire season now stretches most of year. In our heartland, farms have been parched by the worst drought in generations, and drenched by the wettest spring in our history. A hurricane left parts of this great city dark and underwater. And some nations already live with far worse.”

Like Obama, representatives of other major nations had their own news. The European Union unveiled a commitment to reduce greenhouse gas emissions 40 percent from 1990 levels by 2030, and China shared plans to set aside $6 million for U.N. efforts to boost South-South cooperation on global warming.

Other summit outcomes included a commitment by several countries and nearly 40 companies to support alternatives to deforestation, ending the loss of forests—which accounts for 12 percent of all global greenhouse gas emissions—by 2030.

“Forests represent one of the largest, most cost-effective climate solutions available today,” the declaration said. “Action to conserve, sustainably manage and restore forests can contribute to economic growth, poverty alleviation, rule of law, food security, climate resilience and biodiversity conservation.”

More than $1 billion in new financial pledges were made to the Green Climate Fund, which was established at the 2009 Copenhagen Summit to help developing countries ease their transition away from fossil fuels and fight climate change.

The climate summit came on the heels of news that many countries are missing their emissions targets and that avoidance of runaway climate warming is slipping out of reach. A report by the U.N.’s Intergovernmental Panel on Climate Change that says the world is dangerously close to no longer being able to limit global warming to 2 degrees Celsius above pre-industrial levels—the threshold the U.N. declared as necessary to avoid dangerous consequences of climate change. Another study published Sunday in the journal Nature Geoscience put 2014 world carbon emissions at 65 percent above 1990 levels and further suggested that the U.N.’s two-degree Celsius goal was becoming unobtainable.

Obama Announces New Solar Efficiency Measures

The White House announced new steps intended to increase deployment of solar and other energy efficiency measures to cut carbon pollution by nearly 300 million metric tons through 2030. The efforts are predicted to save $10 billion in energy costs.

Among the measures:

  • The U.S. Department of Energy (DOE) is launching the Solar Powering America website, providing access to a wide range of federal resources to drive solar deployment.
  • The U.S. Department of Agriculture will award $68 million in loans and grants for 540 renewable energy and energy efficiency projects, 240 of which will be solar projects.
  • DOE and Lawrence Berkeley National Laboratory are releasingthree new studies showing that the cost of solar energy continues to fall across all sectors, which indicates that initiatives targeting soft costs are starting to work.
  • DOE is updating itsGuide to Federal Financing for Energy Efficiency and Clean Energy Deployment. The guide will highlight financing programs located in various federal agencies, such as the Treasury, Housing and Urban Development, and the U.S. Department of Agriculture, which can be used for energy efficiency and clean energy projects.
  • A new program will train veterans to install solar panels.

The Transition to Clean Energy

Despite these clean energy plans, data from the U.S. Energy Information Administration shows just how far the United States is behind Europe in its pursuit of non-carbon electricity.

“While most of the countries that produce at least half of their power from zero-carbon sources rely heavily on nuclear and hydroelectric power, the U.S. has been slow to convert its power sources to renewables like wind, solar, or biomass,” Slate reports.

A new report suggests Canada’s investment in clean energy is lagging—with the country spending $6.5 billion in renewable energy transition last year compared to the $207 billion spent worldwide.

“While other economics have made clean-energy industries and services a trade priority, some of us cling to the notion that our carbon-based fuels constitute our only competitive advantage,” the report says.

In the U.S., states like New York have plans to grow their clean energy contributions. New York State Energy and Research Development Authority submitted its plan for a new Clean Energy Fund—roughly $5 billion to grow clean energy programs in the next decade by continuing a utility bill surcharge.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.


The Cost of Fixing Climate Change

September 18, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Reducing greenhouse gas emissions could boost the economy rather than slow it, according to a new study by the Global Commission on the Economy and Climate. Better Growth, Better Climate: The New Climate Economy Report finds that roughly $90 trillion will be spent in the next 15 years on new infrastructure around the world. Adopting rules that redirect that investment toward low-emissions options—more efficient use of resources and the building of connected and compact urban cities driven by public transportation—could make economic sense.

“A central insight of this report is that many of the policy and institutional reforms needed to revitalise growth and improve well-being over the next 15 years can also help reduce climate risk,” the report authors said. “In most economies, there are a range of market, government and policy failures that can be corrected, as well as new technologies, business models and other options that countries at various stages of development can use to improve economic performance and climate outcomes together.”

Taking action on climate change, the report authors said, is affordable.

“Of the $6 trillion we will spend a year on infrastructure, only a small amount—around $270 billion per year—is needed to accelerate the shift to a low-carbon economy, through clean energy, public transport systems and smarter land use,” said Felipe Calderon, chairman of the Global Commission on the Economy and Climate. “And this additional investment could be entirely offset by operating savings, particularly through reduced fuel expenditures”

Studies Assess Impacts of Hydraulic Fracturing

A new study in the journal Proceedings of the National Academy of Sciences links water contamination from shale gas extraction in parts of Pennsylvania and Texas to well integrity rather than the hydraulic fracturing process. The research, which looked at 133 water wells with high levels of methane, found that the contamination was either naturally occurring or linked to faulty well construction by drillers.

“These results appear to rule out the possibility that methane has migrated up into drinking water aquifers because of horizontal drilling or hydraulic fracturing, as some people feared,” said Avner Vengosh, study co-author and professor of geochemistry and water quality at Duke University. Researchers pointed, instead, to the cement used to seal the outside of vertical wells and the steel tubing used to line them as culprits.

“In all cases, it [the study] basically showed well integrity was the problem,” said Thomas H. Darrah, co-author and Ohio State University researcher. “The good news is, improvements in well integrity can probably eliminate most of the environmental problems with gas leaks.”

Another study on hydraulic fracturing in the Bulletin of Seismological Society of Americafound a connection between deep injections of wastewater from a coal-bed methane field and an increase in earthquakes in Colorado and New Mexico since 2001. The report, which focuses on the Raton Basin, suggested that the area had been “seismically quiet”—experiencing only one earthquake of greater than 3.8 magnitude—until shortly after major fluid injections began in 1999. Since 2001, the area has recorded 16 such events.

EPA Extends Comment Period for Power Plants

On Tuesday, the U.S. Environmental Protection Agency (EPA) extended the public comment period for its proposed rule for regulating carbon dioxide emissions from existing power plants by 45 days—to Dec. 1.

Janet McCabe, the EPA’s acting assistant administrator for the Office of Air and Radiation, said the extension is due to stakeholders’ great interest.

“While we’ve heard quite a bit so far, we know that there are many individuals and groups continuing to work to formulate their input,” she said. “We want the best rule possible, and we want to give people every opportunity to give their ideas and contributions.”

The delay, McCabe told reporters, would not affect the timeline for finalizing the rule by June 2015.

The same week, a government watchdog agency—the Government Accountability Office (GAO)—released a report suggesting coal plant retirements may be higher than previously thought. It predicted 13 percent of coal-fired generation would come offline by 2025—compared with its 2012 estimate of 2 percent to 12 percent.

The report suggested that existing regulations such as the EPA’s Mercury and Air Toxics Standard and recently proposed regulations to reduce carbon dioxide emissions from existing generating units were contributors to the retirements. Low natural gas prices, increasing coal prices and low expected growth in demand for electricity were also cited as contributors.

The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University’s Nicholas Institute for Environmental Policy Solutions.