Negotiations Heat Up in Closing Stages of UN Climate Change Conference

December 11, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Optimism at the outset of the 2014 United Nations Climate Change Conference twentieth Conference of the Parties in Lima, Peru, has given way to the hard work of reaching high-level resolution prior to the December 2015 UN meeting in Paris.

Among the challenges is disagreement about regular auditing of carbon emission pledges. The European Union insists on a formal review of all country pledges, whereas the United States recommends a voluntary approach to emissions cuts with the disclaimer of no backtracking in targets. “You could assign every country a particular reduction that on paper looks like a perfect result and then you can’t get agreement on it,” said Todd Stern, United States Special Envoy for Climate Change. “This is a way to get everyone in.”

Another challenge is differentiating the responsibilities of developed countries and those of developing countries. China, Brazil, India, and South Africa, which have coordinated their positions at the Lima talks, want to make sure the potential new agreement will allow poorer nations to meet their prevalent needs such as poverty eradication. “Poor people have aspirations,” said India’s Environment Minister Prakash Javadekar. “We must give them energy access.”

Host country Peru, along with other Latin American nations (Chile, Colombia, Costa Rica, Guatemala and Panama), is pushing for aggressive emission cuts by major economies as well as emerging economies such as China and Brazil. However, critics are quick to point out the country’s poor record in protecting rainforests, which play a critical role as carbon sinks.

Struggling through hammering rainfall from Typhoon Hagupit, the Philippines are asking for all nations, developing and developed, to cut use of fossil fuels.

“The thinking of the pivot is—we’re going to take on commitments and do our part,” said Tony La Viña, a Philippine climate change delegate. “The call has always been for developed countries to act. But the thinking is simple. If we’re going to get hit every year again and again, how can we call on developed countries to reduce their emissions, but not reduce our own?”

A new UN report showing climate adaptation costs for developing countries could be two to three times higher than current global estimates makes the 2050 zero-carbon goal another contentious issue. Meeting this goal would significantly affect oil and gas production as well as coal extraction methods. “With a concept like zero emissions and ‘let’s knock fossil fuels out of the picture’, without clear technology diffusion and international cooperation program, you are really not helping the process,” said chief Saudi Arabian negotiator Khalid AbuLeif.

Emissions Reduction Pledges Underscore Importance of Social Cost of Carbon Estimates

The Climate Action Tracker report released by a group of independent scientists notes that recent pledges by the United States, China and the European Union to limit greenhouse gas emissions will, in fact, slow the rate of global warming this century, though not enough to limit warming to 2 degrees Celsius (3.6 Fahrenheit).

Draft text of the 2015 global climate change agreement being negotiated in Lima includes a May 3, 2015, deadline for nationally determined contributions—promises from individual countries for internal action on climate change. Figuring into these commitments are estimates of the social cost of carbon, or the per-metric-ton dollar value of reducing climate change damages—a metric that the United States uses in regulatory analysis and that it and other developed countries could use to leverage greater emissions reductions commitments from developing countries.

Several economy and environmental policy experts are recommending that the government change the way (subscription) it establishes this cost. In an article in Science, former U.S. Department of the Treasury Deputy Assistant Secretary for Environment and Energy and Nicholas Institute faculty fellow William Pizer and his coauthors recommend that the United States adopt a standardized process to regularly evaluate the cost and that the process undergo a public comment period and a review by the National Academy of Sciences.

Commenting on the need for a consistently used and rigorously maintained estimate of climate damages, Pizer said, “It’s important that we draw on the expertise of all government agencies, as well as independent experts in the field. This level of high-quality collaboration and peer review would decrease the likelihood of political factors interfering with the process, and ensure we have the most robust Social Cost of Carbon.”

2014—Hottest Year on Record?

A report issued by The United Nation’s World Meteorological Association says that 2014 is expected to be the hottest year on record, with global temperatures 1.03 degrees Fahrenheit above the 1961–1990 average.

“What we saw in 2014 is consistent with what we expect from a changing climate,” said Michel Jarraud, World Meteorological Organization Secretary-General. “Record-breaking heat combined with torrential rainfall and floods destroyed livelihoods and ruined lives.”

A report by National Oceanic and Atmospheric Administration that finds that the historic California drought is due to natural weather patterns, as opposed to hot temperatures across the state, raised the ire of some climate scientists, who said the report did not take into account how record warmth worsened the drought.

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.


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.


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.


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.


EPA Considering Lower Ozone Standard, Methane Strategy

September 4, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

In its Policy Assessment for the Review of the Ozone National Ambient Air Quality Standards report—released Friday—the U.S. Environmental Protection Agency (EPA) suggests revising the health-based national ambient air quality standard for ozone.

“Staff concludes that it is appropriate in this review to consider a revised primary [ozone] standard level within the range of 70 ppb [parts per billion] to 60 ppb,” the report said (subscription). “A standard set within this range would result in important improvements in public protection, compared to the current standard, and could reasonably be judged to provide an appropriate degree of public health protection, including for at-risk populations and life stages.”

The report is part of the normal EPA process to consider changing air quality standards. It recommends tightening current smog rules—now at 75 parts per billion—somewhere between 7 and 20 percent, echoing findings of the EPA’s science advisory committee in June. A final decision lies with EPA Administrator Gina McCarthy, who has a Dec. 1 deadline to issue a proposal on whether to retain or revise the existing standard.

Earlier in the week, McCarthy announced plans to issue a methane strategy emphasizing efficiency and reducing the need to flare gas—a strategy that could force oil and gas producers to cut emissions.

“We’re going to be putting out a strategy this fall and we hope everybody will pay attention to that effort,” McCarthy said at the Barclays Capital energy forum on Tuesday. “It will be addressing the challenges as well as the opportunities.”

Whether or not actual regulations for the industry will be issued is still being decided. McCarthy noted that the agency is “looking at what are the most cost-effective regulatory and-or voluntary efforts that can take a chunk out of methane in the system.”

This effort follows on the heels of an announcement by the White House that directed the EPA to develop an inter-agency strategy to combat methane emissions from oil and natural gas systems. If issued, rules to cut methane emissions would take effect in 2016.

China Eyes Carbon Market

Reuters reports that China will launch the world’s largest carbon market in 2016, although some provinces would be allowed to join later if they lacked the technical infrastructure needed to participate at the outset. “We will send over the national market regulations to the State Council for approval by the end of the year,” Sun Cuihua, a senior climate official with the National Development and Reform Commission (NDRC), told a conference in Bejing.

Confirming the earlier statement by Cuihua, Wang Shu, an official with the climate division of the NDRC said “We’ve brought forward this plan because it’s been prioritized in the central government’s economic reforms. The central government is pushing reforms, so everything is speeding up.”  According to Reuters, as in other carbon markets, power plants and manufacturers would face a cap on the carbon dioxide they discharge.  If an emitter needs to exceed its cap, it will have to purchase additional permits from the market to account for such emissions.

Court Finds BP Grossly Negligent in 2010 Gulf Spill

A U.S. District judge on Thursday ruled that BP was “grossly negligent” in the 2010 Deepwater Horizon explosion that killed 11 men and allowed millions of barrels of oil to flow out of the Macondo oil well into the Gulf of Mexico.

“The court concludes that the discharge of oil was the result of gross negligence or willful misconduct,” by BP, the ruling from U.S. District Court Judge Carl Barbier said. He found that BP was at fault for 67 percent of the spill. Two other companies involved—Transocean and Halliburton—were responsible for 30 and 3 percent, respectively.

“The law is clear that proving gross negligence is a very high bar that was not met in this case,” BP said in a statement. “BP believes that an impartial view of the record does not support the erroneous conclusion reached by the District Court. The court has not yet ruled on the number of barrels spilled and no penalty has been determined. The District Court will hold additional proceedings, which are currently scheduled to begin in January 2015, to consider the application of statutory penalty factors in assessing a per-barrel Clean Water Act penalty.”

Judge Barbier’s ruling could result in as much as $18 billion in fines under the Clean Water Act, according to The Hill.

Bacteria Used to Make Alternative Fuel

A study in the journal Nature Communications suggests that Escherichia coli, or E. coli bacteria, which is widely found in the human intestine, can be used to create propane gas that can power vehicles, central heating systems and camp stoves.

“Although this research is at a very early stage, our proof of concept study provides a method for renewable production of a fuel that previously was only accessible from fossil reserves,” said Patrik Jones, a study co-author. “Although we have only produced tiny amounts so far, the fuel we have produced is ready to be used in an engine straight away. This opens up possibilities for future sustainable production of renewable fuels that at first could complement, and thereafter replace fossil fuels like diesel, petrol, natural gas and jet fuel.”

Commercial production is still five to 10 years away—the level of propane produced by the team is 1,000 times less than that needed to make a commercial product. The process, which needs further refinement, uses E. coli to interrupt a biological process to create engine-ready propane rather than cell membranes.

“At the moment, we don’t have a full grasp of exactly how the fuel molecules are made, so we are now trying to find out exactly how this process unfolds,” Jones said.

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.


Court Ruling Could Affect Nation’s Electric Grid

August 21, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

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.

A unanimous ruling by the U.S. Court of Appeals for the District of Columbia Circuit could change the way utilities and regulators consider electricity transmission and open pathways for new renewable energy facilities.

The Federal Energy Regulatory Commission’s (FERC) Order 1000 rule, issued in 2011, requires participation by public utility transmission providers in regional planning processes, establishes methods to clarify who will pay for new transmission projects, and includes procedures to consider the effects of energy-related policies on the grid. In the lawsuit petitioners challenged FERC’s authority to adopt these reforms and whether they are supported by sufficient evidence

In its decision, a three-judge panel upheld Order 1000 and explained that “The Commission reasonably determined that regional planning must include consideration of transmission needs driven by public policy requirements.” The decision noted that “The Commission expects that many states will require construction of new transmission infrastructure to integrate sources of renewable energy, such as wind farms, into the grid and that new federal environmental regulations will shape utilities’ decisions about when to retire old coal-based generators. Plans that fail to account for such laws and regulations, the Commissioned reasoned, would not adequately reflect future needs.”

Some experts viewed the ruling as “progress”; others felt the decision sets the stage for future appeals.

Report Analyzes Wind Power Trends

A new report by the U.S. Department of Energy and the Lawrence Berkley National Laboratory highlights trends in the wind industry during 2013. It found that the wind industry remains strong in the United States, which ranked second only to China in installed wind power. The United States, however, represented only 3 percent of global wind additions in 2013.

Other key findings from the report:

  • Wind power purchase agreement prices reached all-time lows in the United States in 2013 thanks to 20–40 percent lower wind turbine prices (compared to 2008) and lower installed project costs, which are down more than $600/kW from 2009 and 2010 levels. The average price stream of wind power purchase agreements executed last year ($25 per megawatt hour) compares favorably with a range of projections of the fuel costs of gas-fired generation extending into 2040.
  • New wind installations are expected to increase in 2014 and 2015. Projections for 2016 and beyond are less certain.
  • A growing percentage of equipment used in U.S. wind projects is sourced domestically.

Arctic Drilling Subject of Interagency Review

No current regulations specifically govern Arctic oil development, but a draft proposal on drilling safety rules by the U.S. Department of Interior made its way to the White House’s Office of Management and Budget (OMB) for review Friday.

Details of the proposal remain undisclosed. According to the OMB website, the rules are designed to “promote safe, responsible, and effective drilling activities … while also ensuring the protection of Alaska’s coastal communities and marine environment.”

Some speculate the rules—which may be under review for months—could require oil companies to obtain leak containment equipment before beginning drilling activities. Federal rules may not be in place before Shell resumes a three-year break from drilling in the region.

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.


Rule for Regulating Existing Power Plants under Fire

July 24, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy testified before the Senate Environment and Public Works Committee during a hearing on “EPA’s Proposed Carbon Pollution Standards for Existing Power Plants.” Debate about the proposed rule to regulate carbon emissions from existing power plants has swirled since the rule’s release last month. Coal-heavy states and others have criticized both the substance of the rule and the EPA’s authority to issue it.

Throughout the hearing McCarthy faced questions about whether the agency had stretched the parameters of the Clean Air Act. The proposed rule uses an infrequently exercised provision of the act to set state-specific emissions targets and provide states a wide range of flexibility when choosing how to meet those targets.

“EPA goes beyond the plain reading of the Clean Air Act Section 111 [by] directing states to achieve questionable emission reduction targets from a limited menu of economically damaging and legally questionable ‘options,’” said Senator David Vitter of Louisiana.

Defending the Clean Power Plan on Wednesday, McCarthy insisted the EPA followed proper legal procedure in conducting its analysis. She also dismissed suggestions that the rule was designed “miraculously” months ago and that the EPA has had it in its back pocket since then. She further stressed the flexibility of the rule.

“The proposal is designed to be moderate in its ask,” she told senators. “We will get significantly more benefit than we are requiring.”

She noted “The science is clear. The risks are clear. And the high costs of climate inaction are clear. We must act.”

A new paper by Duke University’s Nicholas Institute for Environmental Policy Solutions aims to address one question not answered in this debate: What will EPA’s rules mean for policy choices aimed at securing future mitigation goals? The analysis explores the long-term consequences of several key regulatory design choices, including mass-based versus rate-based standards, tradable versus non-tradable standards and separate standards for coal and natural gas power plants (differentiated standards) versus a single standard for all fossil plants. It finds that consequences may be significant. Differentiated standards lead to relatively greater investment in coal retrofits and non-tradable standards lead to relatively greater retirement of coal capacity—all of which could create different costs for securing deeper greenhouse gas reductions in the future. How the EPA’s proposed rule for existing power plants is viewed—as a final or interim solution—could also affect tradeoffs associated with key policy choices.

NOAA: Global Temperatures Rising

Global average temperatures surpassed previous records by 1.3 degrees Fahrenheit last month—making it the hottest June on record according to new National Oceanic and Atmospheric Administration (NOAA) data. It’s the second straight month the world set a warm-temperature record. In May, Earth’s temperature was 1.33 degrees above the 20th century average.

Warmer oceans made the difference—they were 1.15 degrees Fahrenheit hotter. Every month of 2014 except February has ranked among the four warmest on record for that respective month.

The finding piggybacks on another report co-authored by NOAA and published by the Bulletin of the American Meteorological SocietyState of the Climate in 2013—which provides a detailed update on notable weather events, global climate indicators and environmental monitoring station data.

“These findings reinforce what scientists for decades have observed: that our planet is becoming a warmer place,” said NOAA Administrator Kathryn Sullivan. “This report provides the foundational information we need to develop tools and services for communities, business, and nations to prepare for, and build resilience to, the impacts of climate change.”

The global average temperature, which is a broad baseline used to measure the climate, was about 0.4 degrees Fahrenheit above average according to four of the most commonly used datasets. Among the report’s other findings: all major greenhouse gas emissions increased to new records, sea surface temperatures were among the 10 warmest on record and sea level continued to rise by about an eighth of an inch each year.

Department of Interior Plan, Warming Waters Expand Oil Exploration

The Obama administration approved a plan that next year allows energy companies to apply for permits for underwater oil exploration on the Atlantic Coast, from Delaware to Florida.

The final plan, compiled by the Interior Department’s Bureau of Ocean Energy Management (BOEM), requires oil and gas search methods—including seismic air gun testing—to pass several safeguards to mitigate risks to marine life.

“After thoroughly reviewing the analysis, coordinating with Federal agencies and considering extensive public input, the bureau has identified a path forward that addresses the need to update the nearly four-decade-old data in the region while protecting marine life and cultural sites,” said BOEM Acting Director Walter Cruickshank. “The bureau’s decision reflects a carefully analyzed and balanced approach that will allow us to increase our understanding of potential offshore resources while protecting the human, marine and coastal environments.”

The plan doesn’t permit actual oil drilling or guarantee that lease sales for drilling in Atlantic waters will be included in the Interior Department’s five-year plan for 2017–2022. Obama intended to open up the Atlantic Coast to drilling in 2010 but reversed course after the BP Deepwater Horizon oil spill in the Gulf of Mexico that April.

Meanwhile, melting ice in the Arctic is making the region’s icy waters more passable—allowing ships to deliver European oil to Asia and fueling South Korea’s hopes of becoming an oil hub.

“We’ve noticed a huge difference in trading routes,” said Erik Hanell, chief executive officer of Stena Bulk AB in Gothenburg, Sweden. “China is importing more and all the countries in the Far East are importing a lot more. South Korea has a very strong geographic position in today’s development of both Arctic oil and China’s growing demand.”

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.


States, Studies React to EPA Rule Release

June 12, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

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 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.


Obama Doesn’t Need Congress to Move Forward on Clean Energy

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

The Nicholas Institute for Environmental Policy Solutions at Duke University

A week before President Barack Obama’s State of the Union address, a new report says Obama could advance key measures of his Climate Action Plan with or without the cooperation of Congress.

“When they believed a national situation warranted action, some past presidents interpreted their authority broadly and exercised it aggressively,” the report said. “That is the practice of presidential authority Americans and the world need today.”

More than 200 recommendations for how Obama can use his executive authority to accelerate progress on climate change are contained in the 207-page Powering Forward report released by the Center for the New Energy Economy and developed with the help of CEOs, energy experts, academicians and thought leaders. The recommendations focus on clean energy solutions such as doubling energy efficiency, financing renewable energy, producing natural gas more responsibly, developing alternative fuels and vehicles and helping utilities adapt to a changing energy landscape.

Most of the recommendations aren’t all that new, but a few, says Oilprice.com, are interesting. One suggestion is to modify mortgage rules so that qualifying for federally backed mortgage loans requires new homes to be constructed with updated energy efficiency standards.

Despite the report’s ideas for the future, 2013 saw many clean energy developments. The Rocky Mountain Institute calls out 10—including growth in the electric vehicle sector and companies putting a price on carbon—that helped bring the country closer to a secure, prosperous energy future.

NASA, NOAA Label 2013 One of the Planet’s Warmest Years

A pair of reports simultaneously released Tuesday by the National Oceanic and Atmospheric Administration (NOAA) and the National Aeronautics and Space Administration (NASA) reached different conclusions about where 2013 ranks among the world’s hottest years.

NOAA said last year’s average world temperature of 58.12 degrees tied with that of 2003 for the fourth hottest year since 1880—when record keeping began. NASA ranked 2013 the seventh warmest on record—tying 2009 and 2006. The slight difference in rankings, scientists said, could be explained by the methods used by the agencies to interpret the same weather data collected from more than 1,000 metrological stations across the globe. NASA, for example, uses more samples from Antarctica.

Regardless of the difference in rankings, both agencies found that nine of the 10 warmest years on record were in the 21st century. According to NASA, the level of carbon dioxide in Earth’s atmosphere peaked in 2013 at 400 parts per million—higher than any point in the last 800,000 years. The level was 285 parts per million in 1880.

“Long-term trends in surface temperature are unusual and 2013 adds to the evidence for ongoing climate change,” said Gavin Schmidt of NASA’s Goddard Institute for Space Studies. “While one year or one season can be affected by random weather events, this analysis shows the necessity for continued, long-term monitoring.”

Schmidt said 2014 is likely to be even warmer than 2013, remarkable partly because El Nino, the periodic warming of the equatorial Pacific Ocean, was absent in 2013.

“Through the second half of 2014 we are looking at the likelihood of an El Nino, which will help warm 2014 over 2013,” he said.

Southern Leg of Keystone Begins Exporting Oil

TransCanada began delivering oil on Wednesday from Oklahoma to customers in Nederland, Texas, through the southern portion of a controversial proposed cross-border pipeline. The start of commercial operations for this leg of the Keystone XL pipeline came with little fanfare after approval by the president nearly two years ago. Although landowners in East Texas continue to challenge TransCanada’s right to take their land for the pipeline, it’s the northern leg of the pipeline, which is projected to carry oil from Canada, that’s been most controversial.

The northern portion of the pipeline still awaits approval by the U.S. State Department. Last week, Secretary of State John Kerry brushed aside pressure from Canada, offering that he’s not yet received a critical environmental report on the long delayed project.

“My hope is that before long, that analysis will be available, and then my work begins,” he said.

TransCanada acknowledged it has plans to look at building rail terminals in Alberta and Oklahoma if the Obama administration declines to approve the pipeline’s northern leg. Recent accidents involving oil-bearing trains may put more pressure on the administration to approve the pipeline.

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.


Study Says United States Tops List of Global Warming Offenders

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

The Nicholas Institute for Environmental Policy Solutions at Duke University

A new study by Canadian researchers finds the United States, Germany, the United Kingdom, China, Russia, and developing nations Brazil and India were responsible for more than 60 percent of global temperature changes between 1906 and 2005. The U.S. alone was responsible for 22 percent of the warning; China followed at 9 percent and Russia at 8 percent. Brazil and India each contributed 7 percent; the U.K. and Germany were each responsible for 5 percent. The findings, authors said, are particularly important for diplomats working toward a deal in 2015 to limit emissions.

“A clear understanding of national contributions to climate warming provides important information with which to determine national responsibility for global warming, and can therefore be used as a framework to allocate future emissions,” researchers said in their paper, published in the journal Environmental Research Letters.

To restrict warming to U.N. targets of 2 degrees Celsius, rising world emissions would need to drop 40 to 70 percent by 2050, Reuters reports. U.N. Framework Convention on Climate Change Executive Secretary Christiana Figueres said number two historic emitter China is taking the right steps to address global warming with its energy-efficiency standards for buildings and other renewable energy commitments. In the U.S. carbon emissions from energy fell 12 percent between 2005 and 2012, but the U.S. Energy Information Administration estimates a 2 percent increase in these emissions in 2013.

Global Energy Demand Growth, Renewable Investment Slowing

Global energy consumption continues to grow, but slowly. The fourth annual edition of the BP Energy Outlook 2035 pegged growth at 41 percent compared with 55 percent the last 23 years. Although demand from emerging economies is predicted to rise steadily, energy demand elsewhere will slow through 2035.

The U.S., the report said, will be able to provide for its own energy needs in the next two decades with the acceleration of shale oil and gas production. Natural gas, in particular, will overtake oil as the country’s most used fuel as early as 2027—accounting for 35 percent of U.S. consumption by 2035. Oil, however, will be the slowest growing of the major fuels with demand rising on average 0.8 percent annually. Still, U.S. oil imports are expected to drop 75 percent through 2035.

In Europe, the energy market is predicted to rise just 5 percent by 2030 and to become more dependent on imports of gas. China’s energy production will rise 61 percent with consumption growing 71 percent by 2035.

The release of BP’s Energy Outlook comes the same day Bloomberg New Energy Finance revealed that global investment in clean energy fell 12 percent last year.

“Global investment in clean energy was USD 254 billion last year, down from a revised USD 288.9 billion in 2012 and the record USD 317.9 billion of 2011,” a release from Bloomberg stated. In Japan, clean energy investment spiked as a result of small-scale solar installations.

RGGI States Reduce Emission Cap in 2014

States participating in the Regional Greenhouse Gas Initiative (RGGI) dropped their carbon dioxide emissions cap for power plants 45 percent for 2014 to 91 million tons. The initiative, which partners New York, Delaware, Maryland, Connecticut, Massachusetts, Rhode Island, Vermont, New Hampshire and Maine, aims to reduce these states’ power plant pollution by half of 2005 levels.

“RGGI has once again proven that state leadership provides the laboratory for innovation,” said Kenneth Kimmell, commissioner of the Massachusetts Department of Environmental Protection and RGGI chair. “RGGI is a cost-effective and flexible program that can serve as a national model for dramatically reducing carbon pollution for other states throughout the nation.”

Within the program, each power plant is assigned an amount of carbon dioxide it can release, but the plants can buy and sell allowances to increase or decrease their emissions. At the first allowance auction under the new limits March 5, states will offer up 18.6 million carbon dioxide allowances.

Appellate court arguments surrounding New Jersey’s 2011 exit from the trading program began this week.

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.