In a Policy Forum article published in the journal Science, President Barack Obama says that the national policy trend toward a clean-energy economy is “irreversible” and that the trend will continue due to “the mounting economic and scientific evidence” of its value. The article points to the scientific case for actions on climate change, energy efficiency and emissions—the latest in a series of publications on different policy topics Obama has penned in academic journals, including the Harvard Law Review and the New England Journal of Medicine.
“The United States is showing that GHG [greenhouse gas] mitigation need not conflict with economic growth. Rather, it can boost efficiency, productivity, and innovation,” Obama writes in Science just days before President-Elect Donald Trump takes office Jan. 20. “Evidence is mounting that any economic strategy that ignores carbon pollution will impose tremendous costs to the global economy and will result in fewer jobs and less economic growth over the long term. Estimates of the economic damages from warming of 4°C over preindustrial levels range from 1 percent to 5 percent of global GDP each year by 2100.”
The article goes on to cover many of the environmental policies that Trump has said he may axe when he takes office, including the Paris Agreement, which aims to hold the global average temperature increase to “well below” 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit that increase to 1.5 degrees Celsius.
“Were the United States to step away from Paris, it would lose its seat at the table to hold other countries to their commitments, demand transparency, and encourage ambition,” Obama writes. “This does not mean the next administration needs to follow identical domestic policies to my administration’s. There are multiple paths and mechanisms by which this country can achieve—efficiently and economically—the targets we embraced in the Paris Agreement.”
Obama also discusses the struggles of the coal industry, offering that because the cost of new electricity generation using natural gas is projected to remain low relative to coal, “it is unlikely that utilities will change course and choose to build coal-fired power plants, which would be more expensive than natural gas plants, regardless of any near-term changes in federal policy.”
While it will take some time to evaluate which of Trump’s statements about environmental policy actually provide guiding points for how he will govern, The Hill takes a look at what Trump has promised to date on environment and how much might actually be accomplished on day one. At a press conference Wednesday, Trump said he planned to make a decision on his nominee for the Supreme Court within two weeks of taking office—a decision that would have implications for environmental policy.
Trump Transition: Tillerson Confirmation Hearing
The Senate confirmation hearing for Trump’s pick to lead the Department of State began early on Wednesday with conversation and questions about Russian relations. Nominated for the most senior U.S. diplomat position, one responsible for enacting the U.S. government’s foreign policy, the former Exxon Mobil Corp. CEO Rex Tillerson told senators that relations with Russia could be improved under his leadership despite concerns over his ties to Russia and its president, Vladimir Putin.
“We’re not likely to ever be friends,” Tillerson said, noting that the United States and Russia do not hold the same values. “With Russia, engagement is necessary in order to define what that relationship going to be. There is scope to define a different relationship that can bring down the temperature around the conflicts we have today.”
On the topic of climate change, Tillerson expressed that the “risk of climate change does exist and the consequences could be serious enough that action should be taken.” But he added, “Our ability to predict that effect is very limited,” and precisely what actions nations should take “seems to be the largest area of debate existing in the public discourse.”
Tillerson said he viewed the issue primarily as an engineering problem and that Trump has “invited my views on climate change. “He knows I am on the public record with my views. I look forward to providing those, if confirmed, to him and policies around how the United States should carry it out in these areas.”
What else was discussed? Tillerson clarified, and appeared to reconfirm, his support for a carbon tax, and made comments about the importance of maintaining a seat at the table on how to address climate change with international treaties.
EIA: United States Could Become Energy Exporter
The United States has not been a net exporter of energy since 1953, but it could regain that status by 2026. That’s the finding of the U.S. Energy Information Administration’s (EIA) Annual Energy Outlook 2017, which makes energy market projections through 2050 for scenarios with a high oil price, high and low oil and gas resource and technology, and high and low economic growth as well as for a scenario in which the Clean Power Plan is not implemented. In most of those projections, natural gas production increases.
“Natural gas production, we think, is actually going to go up quite a bit, with relatively low and stable prices, so that’s going to support higher levels of domestic consumption, especially in the electric power and industrial sectors, where we think there will be quite a bit of natural gas use,” said EIA Administrator Adam Sieminski.
He noted that technology advances are helping reduce the cost for both fossil fuel production and renewables.
“EIA’s projections show how advances in technology are driving oil and natural gas production, renewables penetration, and demand-side efficiencies and reshaping the energy future,” he said.
Across the scenarios in the report, projections for energy consumption are more consistent than those for production, whose growth is dependent on technology, resource, and market conditions. The EIA finds that although zero-carbon renewables are expected to grow faster than any other energy source over the next three decades, their increase is not likely to significantly help the United States reduce greenhouse gas emissions to meet its obligations under the Paris Climate Agreement (subscription). Instead, energy-related carbon emissions will nearly flatline, falling from an annual rate of 1.4 percent between 2005 and 2016 to 0.2 percent between 2016 and 2040. That’s because carbon reductions from electricity plants’ switch from coal to natural gas and renewables will be offset by emissions from a growing chemical industry.
The fate of the Clean Power Plan will affect energy-related carbon emissions, according to the report (subscription), though not as much as greater use of renewables and natural gas. If the plan is rescinded or overturned, annual emissions would slightly increase to 5.4 billion metric tons through 2040. If the plan is implemented, those emissions would drop to 5 billion metric tons. The scenario without the Clean Power Plan has the highest greenhouse gas emissions, but such a scenario does not include a replacement for the Clean Power Plan, which the Clean Air Act currently appears to require. However, other avenues under the Clean Air Act may be used to pursue greenhouse gas emissions reductions.
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.
Antarctica is home to Earth’s largest ice mass, which unlike the Arctic remains frozen year round. But a new satellite-based study in the journal Geophysical Research Letters shows that atop the coastal Langhovde Glacier in East Antarctica’s Dronning Maud Land, large numbers of meltwater lakes have been forming.
The study suggests that the lakes—nearly 8,000 of them—appeared in the summer months between 2000 and 2013. Like lakes that have formed from the meltwater of ice sheets in areas such as Greenland, those in East Antarctica may affect rates and patterns of ice melt, ice flow and ice shelf disintegration.
“What we find is that the appearance of these lakes, unsurprisingly, is correlated directly with the air temperature in the region, and so the maximum number of lakes, and the total area of the lakes, as well as the depth of the lakes, all of these things peak when the air temperatures peak,” said Stewart Jamieson, a glaciologist at Durham University in the U.K. and one of the study’s authors.
The concern is that the lakes’ meltwater will drain into the underlying ice, causing the ice sheet to weaken. The long-term effects are unknown, the authors say.
“We do not think that the lakes on Langhovde Glacier are at present affecting the glacier, but it will be important to monitor these in the future to see how they evolve with surface air temperature changes,” said lead study author Emily Langley of Durham University in the U.K.
Natural Gas Emissions to Edge Out Coal Emissions This Year
In its latest Short-Term Energy Outlook, released last week, the U.S. Energy Information Administration (EIA) projects that for the first time since 1972 energy-associated carbon dioxide (CO2) emissions from natural gas will surpass those from coal. Although natural gas is less carbon-intensive than coal, its consumption has increased while coal consumption has decreased, leading to what the EIA expects will be 10 percent greater energy-related CO2 emissions from natural gas than from coal in 2016.
The EIA estimates that this year natural gas will fuel 34 percent of U.S. electricity generation, compared with 30 percent for coal. Last year, natural gas generated slightly less than 33 percent of electricity, and coal generated slightly more than 33 percent.
The EIA also noted that annual U.S. carbon intensity rates have been falling since 2005, in part because of increased consumption of low- or zero-carbon electricity from nuclear plants and renewables. Along with the decrease in coal consumption, the increase in non-fossil fuel consumption has reduced U.S. total carbon intensity from 60 MMmtCO2/quad Btu in 2005 to 54 MMmtCO2/quad Btu in 2015.
But the EIA’s emissions numbers do not reflect emissions of methane, a more potent greenhouse gas released by gas drilling and transport operations. The extent of methane emissions from oil and gas production and distribution is uncertain, complicating the climate impacts of switching from coal to gas. Once those emissions total more than 4 percent of total gas production, according to a study cited in Utility Dive, they begin to negate the climactic benefits of gas over coal.
Obama Uses Anniversary to Remind Country of Climate Change’s Threat to National Parks
As the United States marks the centennial of the National Park Service this week, its parks are being widely celebrated for their natural grandeur. But President Obama used the milestone as a reminder of the threat climate change poses to the parks in a video released Saturday.
“As president, I’m proud to have built upon America’s tradition of conservation. We’ve protected more than 265 million acres of public lands and waters—more than any administration in history,” said Obama.
“As we look ahead, the threat of climate change means that protecting our public lands and waters is more important than ever. Rising temperatures could mean no more glaciers in Glacier National Park. No more Joshua Trees in Joshua Tree National Park. Rising seas could destroy vital ecosystems in the Everglades, even threaten Ellis Island and the Statue of Liberty.”
The National Park Service warns that today’s “rapid climate change challenges national parks in ways we’ve never seen before. Glaciers are retreating at an unprecedented rate, increasingly destructive storms threaten cultural resources and park facilities, habitat is disrupted—the list goes on.”
How is the National Park Service planning for climate change? The Atlantic reports that although parks have been slow to adapt their management practices, they are taking steps to cut emissions and educate the public about climate change and its effects. It reports that the visitors’ center at California’s Pinnacles National Park runs on electricity from solar panels, passenger vehicles are banned in Zion National Park during the summer, and at Golden Gate National Recreation Area, several beach restoration projects are in the works due to erosion caused partly by sea-level rise.
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.
A study published in the journal Environmental Research Letters finds that five of the uninhabitated Solomon Islands have submerged underwater and six more have experienced dramatic shoreline reductions due to man-made climate change. The study by a team of Australian researchers offers scientific evidence confirming anecdotal accounts of climate change impacts on Pacific islands. That evidence consists in part of radiocarbon tree dating and of aerial and satellite images of 33 islands dating back to 1947.
According to the study authors, the Western Pacific, where residents in many remote communities must constantly climb to higher elevations, is a hotspot for tracking sea-level rise.
The Solomon Islands have experienced nearly three times the global average of sea-level rise, 7–10 millimeters per year since 1993—rates consistent with those that can be expected across much of the Pacific in the second half of this century, reported Scientific American.
Previous research had attributed Pacific island shoreline changes to a mix of extreme events, seawalls, and inappropriate coastal development as well as sea-level rise. But the new study directly links island loss to climate-related phenomena.
Human disturbances, plate tectonics, hurricanes, and waves can mask the effects of climate change. So to hone in on those effects, the researchers studied islands with no human habitation—Nuatambu Island being the one notable exception.
“Rates of shoreline recession are substantially higher in areas exposed to high wave energy, indicating a synergistic interaction between sea-level rise and waves,” the study authors said. “Understanding these local factors that increase the susceptibility of islands to coastal erosion is critical to guide adaptation responses for these remote Pacific communities.”
U.S. Energy-Related Carbon Dioxide Emissions Fall But Global CO2 Concentrations Rise
The Energy Information Administration (EIA), which released the data, attributed the decline largely to “decreased use of coal and the increased use of natural gas for electricity generation.” Such fuel use changes, the EIA reports, accounted for 68 percent of total energy-related carbon dioxide reductions from 2005 to 2015.
Meanwhile, carbon dioxide concentrations at a remote Australia monitoring station—Cape Grim—are poised to hit a new high of 400 parts per million (ppm) of carbon dioxide for the first time in a few weeks. Though that mark is largely symbolic, the United Nations suggests that concentrations of all greenhouse gases should not be allowed to peak higher than 450 ppm this century to maximize chances of limiting global temperature rise.
“We wouldn’t have expected to reach the 400 ppm mark so early,” said David Etheridge, an atmospheric scientist with Commonwealth Scientific and Industrial Research Organisation (CSIRO), which runs the station. “With El Nino, the ocean essentially caps off its ability to take up heat so the concentrations are growing fast as warmer land areas release carbon. So we would have otherwise expected it to happen later in the year.”
The first 400 ppm milestone was hit in 2013 by a monitoring station in Mauna Loa. Cape Grim and Mauna Loa are among the stations that measure baseline carbon dioxide across the world. Their readings are unaffected by regional pollutions sources that would contaminate air quality.
Companies Relinquish Arctic Drilling Leases
The region is estimated to hold 27 billion barrels of oil and 132 trillion cubic feet of natural gas, but tapping these resources has come at great risk for companies.
“Given the current environment, our prospects in the Chukchi Sea are not competitive within our portfolio,” said ConocoPhillips spokeswoman Natalie Lowman. “This will effectively eliminate any near-term plans for Chukchi exploration for the company.”
Marketplace reports that data secured through a Freedom of Information Act request revealed that Shell, ConocoPhillips, Eni and Iona Energy have renounced all but one of their leases in the Chukchi Sea—meaning 80 percent of all area in the American Arctic leased in a 2008 sale has or will be abandoned.
Shell Spokesman Curtis Smith said “After extensive consideration and evaluation, Shell will relinquish all but one of its federal offshore leases in Alaska’s Chukchi Sea. Separate evaluations are underway for our federal offshore leases in the Beaufort Sea. This action is consistent with our earlier decision not to explore offshore Alaska for the foreseeable future.”
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.
More than 100 countries, including the United States, Colombia, Mexico, and the European Union, have formed a “high ambition coalition” in an effort to secure a final agreement at the United Nations Climate Change Conference in Paris. But members will not be satisfied with merely reaching a final agreement—they want an ambitious solution that includes a mechanism to review and raise countries’ emissions commitments every five years, that creates a unified tracking system to monitor countries’ progress on meeting their emissions goals, that recognizes the proposed 1.5 degrees Celsius temperature goal, and that contains a climate finance package.
“This is an ambition coalition,” said Giza Gaspar Martins, chair of the group of the 48 most vulnerable countries to climate change. “This is also a coalition that is open to recognizing the difficulties of others, because alone, we can’t achieve that high mitigation ambition that we have.”
European climate action and energy commissioner Miguel Arias Canete said the newly released draft text for the climate deal was not “bold enough, and not ambitious enough.”
U.S. Secretary of State John Kerry, in address to the conference, echoed the need for a more in the final text. “We didn’t come to Paris to build a ceiling that contains all that we ever hope to do,” he said. “We came to Paris to build a floor on which we can and must altogether continue to build.”
Negotiations are now happening around the clock in the final days of the conference, set to wrap up Dec.11. Nearly every country has declared discontent with the current draft, but none are rejecting the agreement either.
United States Attempts to Spur Momentum on Paris Talks with Funding Announcement
Yesterday the United States announced a doubling of the grant funding it provides to help developing countries adapt to climate change, a pledge that Reuters reports might help “clinch a climate pact.” The pledge announced by Secretary of State John Kerry is part of what the United States views as its contribution to a promise made in 2009 by developed countries to mobilize $100 billion a year in public and private money by 2020 to deal with impacts such as droughts, flooding, and sea level rise. The $860 million, which must be approved by Congress, would come from the State Department and Treasury budgets and would be distributed through both U.S. mechanisms, such as USAID, and multi-lateral systems like the Green Climate Fund.
“If we just continue down our current path, with too many people sitting on their hands and waiting for someone else to take responsibility, the damage is going to increase exponentially,” Kerry said. “To cut to the chase: Unless the global community takes bold steps now to transition away from a high-carbon economy, we are facing unthinkable harm to our habitat, our infrastructure, our food production, our water supplies, and potentially to life itself.”
The announcement appeared intended to give momentum to talks stalled by resistance by China and India to an outside monitoring system for emissions and to submission to a review process for pollution reduction plans.
“This impasse has slowed progress to a crawl, with the U.S. lacking leverage and China and India seemingly content to wait out the process,” said Paul Bledsoe, a former Clinton administration climate adviser who is attending the talks. “The decision to double U.S. adaptation funding itself is a strategic play to head off loss and damage calls by developing nations. This is why Kerry is pushing these lines right now.”
Study: Worldwide Carbon Emissions May Fall in 2015
As ministers work on a deal to cut post–2020 carbon emissions at the United Nations Climate Change Conference in Paris, a study published in the journal Nature Climate Change suggests that growth in those emissions has stalled, at least temporarily. Specifically, the authors say that in 2015 worldwide greenhouse gas emissions will fall, marking the first time they will have done so during a period of substantial economic growth. The reason? A decrease in coal consumption by China as well as increased use of renewables and decreased growth in demand for oil and gas. But it isn’t clear whether the decrease in China’s emissions is temporary due to the slowing economy or long-term due to changes in how the country consumes energy.
Using preliminary data through October 2015, the authors projected that total carbon emissions this year will be down by 220 million tons. But the decrease—0.6 percent—is so small that it may not be a decrease and could actually be a slight increase because of the margin of error. Nevertheless, the figure appears to mark a departure from an average annual growth of 2.4 percent over the last decade.
Corinne Le Quéré, director of the Tyndall Centre at the University of East Anglia and one of the paper’s authors, said that the Chinese think their emissions are going to rise, suggesting a resumption of an upward trajectory. Moreover, the emissions of India, which has emerged as a key player at the Paris talks, are likely to have risen 6.7 percent this year. The study authors warned that for global emissions to peak soon, part of India’s new energy—designed to spur economic growth and connect 300 million people to the grid—must come from low-carbon sources. And even more must be done to avoid dangerous climate change.
“Global emissions need to decrease to near zero to achieve climate stabilization,” said Le Quéré. “We are still emitting massive amounts of CO2 annually—around 36 billion tonnes from fossil fuels and industry alone. There is a long way to near zero emissions. Today’s news is encouraging, but world leaders at COP21 need to agree on the substantial emission reductions needed to keep warming below two degrees Celsius.”
Editor’s Note: Dec. 7–11 we will present a series of special issues of The Climate Post featuring updates on climate negotiations and commentary from our staff in Paris.
At the United Nations Climate Change Conference in Paris, world leaders on Monday suggested that stakes are too high to end negotiations on Dec. 11 without inking a climate deal that would limit global warming to two degrees Celsius over preindustrial levels—the U.N.-declared threshold for avoiding the most dangerous climate change impacts.
NPR reports that observers hope the deal will include three main items: agreement by countries to increase pledges in the future, a rigorous system of accountability to ensure nations keep those pledges, and support for poor countries to adopt low-carbon energy technologies.
A major sticking point for delegates of the nearly 200 countries meeting at the conference is the legal status of the treaty they hope to ink.
“Although the targets themselves may not have the force of treaties, the process, the procedures that ensure transparency and periodic reviews, that needs to be legally binding,” President Obama said in Paris. “…that’s going to be critical.”
Countries Pledge Financing for Clean Energy, Withdraw It for Coal
Another key negotiating point in Paris will be whether developing countries get enough financing to make the transition to clean energy worth it given the comparative cheapness of coal. In an announcement intended to give the U.N. climate talks momentum, the leaders of 19 nations, including the United States and many developing economies, on Monday pledged a doubling of clean energy spending to $20 billion in a deal with 28 corporate leaders (the so-called Breakthrough Energy Coalition spearheaded by Microsoft co-founder Bill Gates) who are putting up billions of their own (subscription).
According to a White House e-mail, the public component of the public-private agreement, known as Mission Innovation, is aimed at helping energy technologies “cross the investment ‘valley of death’” presented by their risk profiles and long return time horizons.
Brian Deese, White House climate adviser, said that Mission Innovation “should help to send a strong signal that the world is committed to helping to try to mobilize the resources necessary to ensure that countries around the world can deploy clean energy solutions in cost-effective ways.”
In an editorial for the Boston Globe, U.S. Energy Secretary Ernest Moniz wrote that Mission Innovation and the Breakthrough Energy Coalition are “synergistic initiatives that establish clean energy innovation as a foundation for environmental stewardship, prosperity, security and social responsibility. Strong American leadership in these initiatives has provided a tremendous global leveraging opportunity, and innovation has remained common ground in our political discourse.”
Three questions raised by the initiatives are whether a multinational research effort combining public and private investments could entail intellectual property problems, how much of the newly pledged money might represent formerly pledged funding, and whether the future funding will be approved in national budgets.
In the lead up to the Paris talks, some of the countries that just committed financial support for clean energy signed on to a deal to severely cut funding for some prospective coal projects. A promise by China to control its support for high-carbon projects overseas—part of its most recent climate agreement with the United States—allowed Japan and the United States to develop a proposal that last month became a less stringent agreement by members of the Organisation for Economic Co-operation and Development (OECD) to curb public financing for coal plants (subscription). Under the policy, which goes into effect in 2017 and will be up for revision in four years, OECD countries will continue to provide export credits for “ultra-supercritical” coal-fired power plants—those constructed to meet the most stringent environmental standards—but public financing for 85 percent of coal plants going forward would effectively be cut off. The agreement does allow support for less efficient plants with a capacity under 500 megawatts in the world’s poorest countries.
House Votes to Block Power Plant Rules
The House approved, largely along party lines, to block the Obama administration’s measures to reduce greenhouse gas emissions from power plants. The House voted 242–180 to repeal the Environmental Protection Agency’s Clean Power Plan, which would limit carbon emissions from existing power plants, and 235–188 to block EPA rules governing emissions from new power plants. The votes come just weeks after the Senate passed legislation blocking U.S. Environmental Protection Agency rules that apply to new and existing power plants.
The resolutions now go to President Obama, who last month announced plans to veto them, claiming that they undermine public health protections of the Clean Air Act and “stop critical U.S. efforts to reduce dangerous carbon pollution from power plants.”
The Supreme Court, in a 5–4 decision, ruled that the Clean Air Act required the U.S. Environmental Protection Agency (EPA) to consider the costs of its Mercury and Air Toxics Standard (MATS) rule when determining whether it was “appropriate and necessary” to regulate mercury emissions from the power sector.
The MATS rule requires coal-burning power plants to reduce emissions of toxic pollutants by installing control technologies. The EPA estimated MATS would cost industry about $9.6 billion a year but cut coal and oil emissions by 90 percent and generate $37 billion in savings through “co-benefits.” Because these benefits are calculated on the basis of increased life expectancies and reduced health effects, the values have been subject to much of the debate.
“It is not rational, never mind ‘appropriate,’ to impose billions of dollars in economic costs in return for a few dollars in health or environmental benefits,” wrote Justice Antonin Scalia for the majority. “Statutory context supports this reading.”
The Supreme Court did not dictate how the agency should address its ruling. It sent the case back to the U.S. Court of Appeals for District of Columbia Circuit for reconsideration of the rulemaking.
“EPA is disappointed that the court did not uphold the rule, but this rule was issued more than three years ago, investments have been made and most plants are already well on their way to compliance,” said EPA spokeswoman Melissa Harrison, noting the agency is reviewing the ruling.
The Nicholas Institute for Environmental Policy Solutions’ Climate and Energy Program Director Jonas Monast notes that the immediate impact of the Supreme Court’s decision will likely be limited because electric utilities have already taken steps to comply with the regulation.
World’s Top Emitters Announce Climate Pledges
Three of the world’s 10 largest emitters of greenhouse gases—Brazil, China and the United States—announced new climate change commitments.
China made its intended nationally determined contribution to the United Nations, which calls to cut greenhouse gas emissions per unit of gross domestic product by 60–65 percent from 2005 levels and obtain 20 percent of its energy from low-carbon sources in 2030 (11.2 percent now comes from such sources).
“China’s carbon dioxide emission will peak by around 2030 and China will work hard to achieve the target at an even earlier date,” said Chinese Premier Li Keqiang.
In a joint statement, the United States and Brazil pledged to source 20 percent of their electricity from non-hydropower renewable sources by 2030. Brazil also committed to restore a swath of forest 46,332 square miles—roughly the size of England—through policies that aim to tackle deforestation.
The commitments come just months before the United Nations Climate Change Conference in Paris, where countries will work toward a global climate agreement. Brian Deese, senior White House climate adviser, said the announcement by the United States and Brazil “substantially elevates and builds” on climate progress and “should provide momentum moving into our shared objective of getting an agreement in Paris later this year.”
Alberta Doubles Carbon Fee, Moves on Climate-Policy Review
The Canadian province of Alberta last week announced it would double its carbon fee—the first to be levied by a North American jurisdiction—from C$15 to C$30 a metric ton and increase its emissions intensity reductions target from 12 to 20 percent by 2017 in an effort to curb greenhouse gases from industrial facilities, coal plants and oil-sands production. The government, which will also begin a climate-policy review to prepare recommendations ahead of the United Nations climate talks in Paris later this year, has said the province needs to be a leader in climate policy in order to support the oil-sands industry, long criticized for its environmental impact.
“If Alberta wants better access to world markets, then we’re going to need to do our part to address one of the world’s biggest problems, which is climate change,” said Environment Minister Shannon Phillips in announcing the news.
The carbon fee is levied on industrial facilities emitting more than 100,000 metric tons of carbon dioxide per year for emissions that exceed a facility’s emission intensity target. The levy was introduced in 2008, Alberta has collected fee revenues of $578 million, which it has put into a technology fund for initiatives that reduce emissions. Those 103 facilities have the option of reducing their emissions intensity, buying Alberta-based offsets to meet the intensity targets, or paying into that fund.
While Alberta’s fee is in support of an emissions intensity target rather than on total emissions, neighboring province British Columbia levies a broad-based carbon tax on emissions from most major sources and uses those tax revenues to largely fund tax cuts. A recent Nicholas Institute for Environmental Policy Solutions-University of Ottawa analysis of that tax found that it was reducing emissions with little net impact, either negative or positive, on provincial economic performance.
The International Emissions Trading Association (IETA) welcomed the news that Alberta would extend its carbon fee measure, officially the Specified Gas Emitters Regulation, to December 31, 2017, the date on which Ontario will likely launch its emissions-trading market, “which is intended to link with those of California and Quebec,” according to IETA.
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.
Editor’s Note: While Tim Profeta is on vacation, Jeremy Tarr, policy associate in the Climate and Energy Program at Duke’s Nicholas Institute for Environmental Policy Solutions, will author The Climate Post. Tim will post again August 28.
The Climate Post will also take a break from circulation August 7 and will return August 14.
A new report from the White House Council of Economic Advisers finds that for each decade of delay, policy actions on climate change increase total mitigation costs by approximately 40 percent. The cost of inaction—letting the temperature rise 3 degrees Celsius above preindustrial levels instead of 2 degrees— could increase economic damages by about 0.9 percent of global output.
“To put this percentage in perspective, 0.9 percent of estimated 2014 U.S. Gross Domestic Product (GDP) is approximately $150 billion,” according to the report. “Moreover, these costs are not one-time, but are rather incurred year after year because of the permanent damage caused by increased climate change resulting from the delay.”
The report is the first of several announcements by the Obama administration on climate change. On Tuesday, the U.S. Department of Energy announced initiatives to curb methane emissions, which accounted for about 9 percent of the country’s greenhouse gas pollution in 2012. The Energy Department recommended incentives for modernizing natural gas infrastructure, and it plans to establish efficiency standards for natural gas compressors as well as improve advanced natural gas system manufacturing.
The same day, several companies and nongovernment groups committed to support a new Food Resilience theme in the president’s Climate Data Initiative. The initiative leverages data and technology to help businesses and communities better withstand the effects of climate change. Companies like Microsoft are helping to organize data sets and tools in the cloud that will enable the assessment of vulnerable points in the food system, such as the effects of climate change on our food system and the reliability of food transportation and safety.
Hearings Fuel Debate on Clean Power Plan
During public hearings in Denver, Atlanta, Pittsburgh and Washington, D.C., the U.S. Environmental Protection Agency (EPA) heard testimony from the public on its proposed Clean Power Plan, which would limit greenhouse gas emissions from existing power plants.
In Washington, D.C., many utilities and industry groups were critical of the plan’s climate benefits and called on the EPA to conduct further economic analysis before issuing its final rule in June 2015. In Atlanta, others said the plan did not account for steps they’ve already taken to reduce emissions.
“This rule is flawed,” said Mississippi utility regulator Brandon Presley (subscription). “States like Mississippi, who have fought to pull themselves up and get a program to help customers reduce energy costs and reduce energy consumption, kind of get slapped away from the table.”
In their testimony, many environmental groups sought greater emissions reductions from the power sector as well as increases in renewable energy generation and programs that reduce electricity demand. Some members of the public, like retired coal miner Stan Sturgill of Kentucky, agreed with these groups’ request for tougher restrictions.
“Your targets to reduce carbon dioxide pollution by 2030 are way too low and do not do enough to reduce our risk of climate change,” said Sturgill, who suffers from black lung and other respiratory ailments. “The rule does not do near enough to protect the health of the front line communities from the consequences of this pollution. We’re dying, literally dying, for you to help us.”
The EPA is asking states to meet carbon emissions targets that would result in a 30 percent reduction in power sector carbon dioxide emissions from 2005 levels by 2030. States are given flexibility in how they achieve the targets.
Representatives from 13 western states met last week to discuss the EPA’s proposal and to begin considering the advantages of working together in response to the rule.
“We’re in the process of determining what makes sense for us, including working with other states in a regional market,” said Camille St. Onge, spokeswomen for Washington’s Department of Ecology.
United States Imposes Energy-Related Trade Constraints
The U.S. Commerce Department placed proposed new import penalties on solar products from China and Taiwan. These penalties come on top of anti-subsidy tariffs imposed on some panels from China last month.
The new proposed penalties, still to be confirmed, aim to curb the sale of low-cost solar panels and cells, a practice known as dumping, from other countries in the U.S. market. If confirmed, they would impose duties as high as 165 percent on some solar companies in China and 44 percent on those in Taiwan. The Commerce Department has issued only preliminary findings, but final rulings are expected from the Commerce Department later this year.
The move has China’s Commerce Ministry saying Washington’s actions risk damaging the solar industry in both countries.
“The frequent adoption of trade remedies cannot resolve the United States’ solar industry development problems,” an unnamed Chinese official told Reuters.
In the United States, reactions to the news were mixed.
“Today’s actions should help the U.S. solar manufacturing industry to expand and innovate,” said SolarWorld Industries America President Mukesh Dulani. “We should not have to compete with dumped imports or the Chinese government.”
But Rhone Resch, CEO of the U.S.-based Solar Energy Industries Association, condemned the decision, saying the answer lies in a negotiated solution.
Chinese companies supplied 31 percent of the solar modules installed in the United States in 2013 and more than 50 percent in the distributed solar market.
On Tuesday, the United States and the European Union issued new economic sanctions on Russia, citing the country’s involvement in the Ukraine crisis. The sanctions ban the export of energy-related technology for use in Russian oil production from deepwater, Arctic offshore and shale oil production rock reserves. However, exports of technology for gas projects to the country, which holds the world’s largest combined oil and gas reserves, will continue.
On the coattails of the U.S. Environmental Protection Agency’s proposed rule for regulating carbon dioxide emissions from existing power plants, the White House issued a report on the health effects of climate change. The seven-page report outlines six major risks linked to rising temperatures—asthma, lung and heart illnesses; infectious disease; allergies; flooding-related hazards and heat stroke.
But one week after release of the EPA rule, most conversation centered on how the states will undertake their role in executing it. States in the Regional Greenhouse Gas Initiative were hopeful their participation in the carbon trading program would help meet the requirements of the new rule. Lawmakers in at least eight states approved anti-EPA resolutions. Kentucky has enacted a new law that could block the state from complying with the rule, and West Virginia sent a letter to the EPA requesting the agency to withdraw the rule.
The proposal, which assigns each state interim and final emissions goals and asks the states to develop plans to reach them, accounts for the regional differences that affect how hard it will be to reduce emissions. The differences are both practical—how expensive one energy source is compared to another—and political. The proposal does say it “anticipates—and supports—states’ commitments to a wide range of policy preferences,” including decisions “to feature significant reliance on coal-based generation.”
States using a more traditional regulatory approach to execute their plans may be choosing a more costly approach than putting a price on carbon. New research from the Massachusetts Institute of Technology finds that a regulatory standards approach cut less carbon at a higher price than emissions reductions that could be achieved under a cap-and-trade system (subscription).
“With a broader policy, like cap-and-trade, the market can distribute the costs across sectors, technologies and time horizons, and find the cheapest solutions,” said a study author Valerie Karplus. “So the market encourages emissions reductions from sectors like electricity and agriculture, and requires reductions from vehicles and electricity at a level that makes economic sense given an emissions target. On the other hand, narrow regulations force cuts in ways that are potentially more costly and less effective in reducing emissions.”
According to a Bloomberg national poll, Americans—by nearly a two-to-one margin—are willing to pay more for energy if it helps combat climate change. A recent Rasmussen Reports poll had similar findings, showing that most voters approve of the EPA’s new regulations even if there is a rise in energy costs. Here at the Nicholas Institute for Environmental Policy Solutions, we looked ahead to the possibility of a further expansion of Clean Air Act standards limiting carbon dioxide emissions from other sectors. In particular, a new policy brief identifies key differences between the electric power and refining industries, highlighting their potential significance for regulating the refining industry. A companion working paper more deeply examines policy design as well as options for maximizing cost effectiveness while accounting for differences among refineries.
Study: Agricultural Emissions Can Be Curbed
Worldwide, agriculture accounts for about 80 percent of human-caused emissions of nitrous oxide, a greenhouse gas with 300 times as much heat-trapping power as carbon dioxide. Overuse of nitrogen fertilizer is increasing these emissions.
A study in the journal Proceedings of the National Academy of Sciences found that soil microbes were converting nitrogen fertilizer (subscription) into nitrous oxide faster than previously expected when fertilizer rates exceeded crop needs. In fact, the change was happening at a rate of about one kilogram of greenhouse gas for every 100 kilograms of fertilizer.
“Our specific motivation is to learn where to best target agricultural efforts to slow global warming,” said Phil Robertson, author of the study and director of Michigan State University’s Kellogg Biological Station. “Agriculture accounts for 8 to 14 percent of all greenhouse gas production globally. We’re showing how farmers can help to reduce this number by applying nitrogen fertilizer more precisely.”
The study offers proven ways to reduce nitrogen use—applying fertilizer in the spring instead of fall and placing it deeper in the soil for easier plant access. It also provides support for expanding the use of carbon credits to pay farmers for improved fertilizer management.
This week, the first agricultural greenhouse gas emissions offsets were issued to a Michigan farmer whose voluntary decrease of nitrogen fertilizer use on corn crops reduced nitrous oxide emissions.
Crude Oil Production to Increase
U.S. crude oil production will reach its highest level—9.3 million barrels per day—in 2015, according to the latest Energy Information Administration (EIA) forecast, issued Tuesday. The EIA estimates 8.4 million barrels per day for 2014—the United States averaged 7.4 million in 2013.
The increase will not have a dramatic effect on gas prices. The EIA reports that the U.S. average price for gasoline is expected to fall to $3.54 a gallon in September and to $3.38 a gallon in 2015.
The U.S. Environmental Protection Agency (EPA) this week announced a proposed rule to reduce carbon dioxide emissions from existing fossil fuel–fired power plants 30 percent below 2005 levels by 2030. This first-of-its-kind proposal uses an infrequently exercised provision of the Clean Air Act to set state-specific reduction targets for carbon dioxide and to allow states to devise individual or joint plans to meet those targets. The EPA expects to finalize the rule by next June.
“Climate change, fueled by carbon pollution, supercharges risks to our health, our economy, and our way of life,” said EPA administrator Gina McCarthy. “EPA is delivering on a vital piece of President Obama’s Climate Action Plan by proposing a Clean Power Plan that will cut harmful carbon pollution from our largest source—power plants. By leveraging cleaner energy sources and cutting energy waste, this plan will clean the air we breathe while helping slow climate change so we can leave a safe and healthy future for our kids.”
An analysis by our Nicholas Institute for Environmental Policy Solutions researchers highlights key details of the 600-plus-page rule, which assigns each state interim and final emissions goals. These goals are based, in part, on the efficiency of each state’s fossil fleet in 2012. They also reflect estimates of the emissions-reduction potential of efficiency upgrades to coal plants and increased use of renewable energy, demand-side energy efficiency, and existing natural gas capacity.
The rule provides states considerable flexibility to decide how to meet their interim and final emissions reduction goals. States may consider methods such as expanding renewable energy generation, creating energy efficiency programs and working with other states on the creation of regional plans. Once the EPA’s proposed rule is finalized, states will be given one to three years to finalize their state plans.
The rule sparked predictable political commentary. Republican leadership pilloried the rule, the President’s allies expressed gratitude for his leadership, and political pundits mused over the rule’s impact on the midterm elections. A Washington Post-ABC News post–rule-announcement poll found a large majority of Americans—70 percent—support regulating carbon from power plants. Americans in coal states were supportive of limiting greenhouse gas emissions regardless of whether their state was forced to make bigger adjustments than other states. And at least one set of political commenters—former Sen. Joseph Lieberman and I—point out that, if executed effectively, the rule could begin the nation’s path back to more comprehensive climate change policy.
China Taking Action as Well?
The proposed rule appeared to spur another of the world’s largest emitters—China—to consider capping its carbon dioxide emissions, starting with its next five-year plan in 2016. The suggestion, offered by He Jiankun, chairman of China’s Advisory Committee on Climate Change at a Beijing conference, was reported in several media outlets but was not an official pronouncement of the government.
“What I said today was my personal view,” said Jiankun. “The opinions expressed at the workshop were only meant for academic studies. What I said does not represent the Chinese government or any organization.”
Still, some saw the statement—by a senior advisor—as a promising development ahead of international climate negotiations that began Wednesday in Bonn, Germany. “As with many things in China, these officials don’t speak unless there’s some emerging consensus in the government that this is a position that they’re trending toward,” said Jake Schmidt, international climate policy director for the environmental group at the Natural Resources Defense Council. “I think it’s a very positive sign that this kind of debate has taken hold.”
Not all commenters were sanguine about the EPA rule. According to a German study released this week, even with the 30 percent emissions cut outlined in the EPA’s proposed rule, climate pledges the United States set at United Nations climate talks may not be met. The study found the EPA rule would reduce 2030 U.S. national emissions only about 10 percent below 2005 levels. In 2010, the United States promised to reduce greenhouse gases 17 percent below 2005 levels by 2020.
“While the proposal is welcome, it is insufficient to meet the U.S.’s pledges of 17 percent reduction of all greenhouse gas emissions by 2020 and is inconsistent with its long-term target of 83 percent below 2005 levels by 2050,” said Niklas Hoehne of Ecofys, a German group that helped analyze the plan’s impact. “The plan implies an economy-wide decarbonisation rate of about 0.9 percent per annum, significantly lower than the 1.4 percent per annum achieved in the last decade. This is not as fast as required for a 2 C decarbonisation pathway.”
New Imports for Solar
The United States has set new import tariffs on some solar panels from China, saying some manufacturers had unfairly benefitted from subsidies. The still-preliminary Commerce Department ruling was prompted by a petition of charges filed by a group led by SolarWorld in 2011. The petition claims some Chinese companies avoided tariffs by shipping solar cell parts to locations like Taiwan—flooding the U.S. market with cheap products.
Duties imposed in the preliminary decision could range from 18.5 to 35.21 percent.
“The import duties, which are in line with our expectations, will wipe out the price competitiveness of Chinese products in the U.S. market,” said Zhou Ziguang, an analyst at the Chinese investment bank Ping An Securities in Beijing.
For U.S. companies, the news was mixed—some could see great benefits; others, very little.
“SunPower will be the primary beneficiary of the decision, given its presence in the U.S. distributed generation market where most Chinese companies supply product,” according to Morgan Stanley. “Although First Solar theoretically benefits, we believe that the impact will be small given limited presence of Chinese companies in the U.S. utility scale market.”
Rhone Resch, chief executive of the Solar Energy Industries Association, said “These damaging tariffs will increase costs for U.S. solar consumers and, in turn, slow the adoption of solar.”
Last year the European Union overcame a similar trade dispute with Beijing when the trade partners agreed to set a minimum price for solar panels from China.