Recent Studies Provide Examples of Emissions Trading Successes, Failures

August 27, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The emissions trading program in the northeastern United States—the Regional Greenhouse Gas Initiative (RGGI)—is responsible for about half the region’s emissions reductions—an amount far greater than reductions achieved in the rest of the country.

The study in the journal Energy Economics determined that even when controlling for other factors—the natural gas boom, the recession, and environmental regulations—emissions would have been 24 percent higher in participating states without RGGI (subscription). RGGI, the first market-based regulatory program in the United States, is a cooperative effort among states to create a “cap” that sets limits on carbon dioxide emissions from the power sector—a cap lowered over time to reduce emissions. Power plants that can’t stay under the cap must purchase credits or “emissions allowances” from others that can.

“While the study focused on the northeastern states and the RGGI program specifically, the findings suggest that emissions trading could be a cost-effective strategy for states now considering how to comply with EPA’s recently issued regulations aimed at reducing carbon dioxide from power plants,” said Brian Murray, lead author and director of the Environmental Economics Program at Duke University’s Nicholas Institute for Environmental Policy Solutions.

A separate study in the journal Nature Climate Change found significant misuse of a key carbon offsetting scheme after several factories increased their production of industrial waste products—spiking emissions. It suggests that a loophole in the United Nation’s carbon market may have led to “perverse incentives” for some industrial plants to increase emissions so they could then make money by reducing them.

A companion study indicates that the majority of credits from Russia and Ukraine were a sham and that no emissions were reduced. In fact, the study estimates use of the sham offsets actually enabled greenhouse gas emissions to increase by some 600 million tons of carbon dioxide equivalent.

“We were surprised ourselves by the extent, we didn’t expect such a large number,” said study co-author Anja Kollmuss. “What went on was that these countries could approve these projects by themselves there was no international oversight, in particular Russia and Ukraine didn’t have any incentive to guarantee the quality of these credits.”

Study Quantifies Global Warming’s Contribution to California’s Drought

How much of California’s drought is due to climate change? A study published in Geophysical Research Letters has an answer: up to 27 percent. The study also indicates that climate change has made the odds of severe droughts twice as likely.

Global warming has worsened the drought through increased evapotranspiration, the contribution of which was quantified in detail for the first time by researchers at the Lamont-Doherty Earth Observatory, the National Aeronautics and Space Administration, and the University of Idaho who analyzed 432 combinations of precipitation, temperature, wind, and radiation data gathered between 1901 and 2014 to simulate monthly changes in soil moisture across California. When they modeled these combinations against various greenhouse gas emissions scenarios, they concluded that the state’s lack of rainfall is due to natural variability—a finding that accords with most other studies—but that California’s drought is 8 to 27 percent drier because of human-cause climate change (subscription).

“By knowing how much global warming has contributed to the trend in California drought conditions over the past century, we can reliably predict how the future will play out,” said A. Park Williams, a bioclimatologist at Lamont-Doherty who led the study. By the 2060s, Williams said, drought conditions will be more or less permanent, and evaporation will overpower bursts of intense rainfall.

Williams likened climate change to a “bully” that every year “demands more of your money than the year before. Every year, the bully—or atmosphere—is demanding more resources—or water—than ever before.”

He also said that California should more aggressively police groundwater withdrawals by agricultural operations, increasing use fees and fines for overuse. California is one of the few states that does not regulate such withdrawals, which after three years of drought have led to precipitous drops in groundwater tables and land subsidence.

Obama Announces Renewable Energy Initiatives

In the first stop on an 11-day climate and energy tour, President Obama announced a number of initiatives aimed at making it easier for homeowners and businesses to invest in clean energy technology.

“We are here today because we believe that no challenge poses a greater threat to our future than climate change,” said President Obama at the National Clean Energy Summit in Las Vegas. “But we’re also here because we hold another belief, and that is, we are deeply optimistic about American ingenuity.”

According to a White House fact sheet, these measures include:

  • $24 million for 11 projects in seven states to develop innovative solar technologies that double the amount of energy each solar panel can produce.
  • Approval of a transmission line for a 485-megawatt photovoltaic facility planed for Riverside County.
  • An additional $1 billion in federal loan guarantees available through a federal program for innovative versions of residential solar systems.
  • Creation of the Interagency Task Force to Promote a Clean Energy Future for All Americans.
  • Provision of residential Property-Assessed Clean Energy financing that facilitates investment in clean energy technologies for single-family homes.
  • Creation of a new HUD and DOE program to provide home owners with a simple way to measure and improve their homes’ energy efficiency.

Energy Secretary Ernest Moniz said federal support is critical as the clean-energy industry seeks to become further established, noting “The playing field is not always as level and that’s where investors and developers can have risks. That’s where things like our loan program come in.”

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.

Final Clean Power Plan More Ambitious, Flexible

August 6, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

On Monday, President Obama announced the release of the final Clean Power Plan (CPP), which sets mandatory limits on the amount of carbon dioxide emissions the nation’s fleet of existing power plants may emit. The rule is projected to reduce emissions 32 percent below 2005 levels by 2030.

“We’re the first generation to feel the impact of climate change. We’re the last generation that can do something about it,” Obama said, noting that power plants are the single largest source of carbon pollution, a key contributor to climate change. “Until now, there have been no federal limits to the amount of carbon pollution plants dump in the air.”

Some Plan Particulars

The complicated and controversial 1561-page rule was developed by the Obama administration using existing authority under the Clean Air Act—specifically, section 111(d). The plan, according to a Washington Post op-ed, “is about as flexible as possible,” because it allows each state to come up with its own compliance program to meet the federal standards.

In broad strokes, the plan is designed to accelerate an already-underway shift from coal-fired electricity to cleaner natural gas and renewables, along with increased energy efficiency, by requiring existing power plants to meet specific carbon dioxide emissions reduction guidelines. The U.S. Environmental Protection Agency (EPA) calculated the targets based on a “best system of emissions reduction” comprised of three building blocks: making existing coal plants more efficient; shifting generation from coal to gas plants; and increasing generation from renewables.

Once the targets are set, however, states do not have to use the building blocks as a framework for their plans, and have been given a range of market-based, flexible mechanisms to reach their state targets.  In fact, emulating the flexibility afforded power plants under the market-based program devised in 1990 to reduce sulfur dioxide emissions, the CPP allows states to create “trading-ready” plans that will allow affected plants to sell emissions credits or to buy credits, if that’s a less expensive option than taking other actions. Parallel compliance approaches remove the need for formal interstate trading agreements, an approach described in one of Duke University’s Nicholas Institute for Environmental Policy Solutions’ recent policy briefs. Also facilitating trading are new state goals reflecting uniform national emissions rate standards for fossil steam (coal and oil) and natural gas power plants, respectively, reports ClimateWire (subscription).

The centerpiece of the Obama administration’s push to slash U.S. carbon emissions 17 percent below 2005 levels by 2020 and 26–28 percent below 2005 levels by 2025, the final CPP was timed to build momentum toward the start of international climate talks in Paris in November. Lord Nicholas Stern, a prominent economist in the U.K., said the rule’s release will “set a powerful example for the rest of the world,” and will reinforce the credibility of the U.S. commitment to greenhouse gas emissions reductions as a new international agreement on climate change is being finalized.

Significant Changes from the Proposal

Changes to the final plan were expected, given some 4 million comments on the proposed plan, and the plan did not disappoint. One big change, according to Acting Assistant Administrator for the Office of Air and Radiation Janet McCabe, is based on the assumption that renewable energy and regional approaches have even greater capacity for helping the power sector reduce emissions than reflected in the draft proposal (subscription). Consequently, the final plan will cut power plant carbon emissions 32 percent below 2005 levels by 2030, rather than the 30 percent target in the proposed rule.

The final rule also axed what the draft proposal referred to as Building Block 4, a criterion for achieving emissions reductions through programs that improve electricity consumers’ energy efficiency, as a means of calculating the state targets. Although these efficiency standards and under-construction nuclear plants were left out of the criteria for setting state goals under the plan, both are still available as compliance options.

The plan also includes a Clean Energy Incentive Program that rewards states for investing early (2020–2021) in renewable energy, specifically solar and wind power as well as demand side energy efficiency in low-income communities. Details of the incentive scheme are yet to be worked out, but the final rule goals do now expect renewable energy sources to account for 28 percent of the nation’s capacity by 2030—up from 22 percent in the proposal (subscription). The aim, said EPA Administrator Gina McCarthy is to incentivize renewable energy, which will lessen the reliance on natural gas as a replacement for coal power as the dominant compliance strategy.

Many other changes were anticipated in the Nicholas Institute’s most recent policy brief, including:

  • Additional time—an two extra years (to 2022)—for states to submit plans and begin cutting emissions;
  • Easing of the interim goals “glide path,” which states can now craft for themselves; and
  • New state mass emissions targets. These targets, based on states’ energy mixes and a uniform emissions rate for plants that use the same technology but no longer on demand-side energy efficiency, are less disparate than and also vastly different from those in the proposal. They also allow states to choose whether to use one target that includes the emissions from new natural gas units or another target that excludes these units (but still provides mechanisms to ensure that emissions cannot increase through new units).

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

Climate Pledges May Not Be Enough

March 12, 2015
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The European Union (EU) is now the second body to submit an official climate target to the United Nations ahead of talks to reach a global climate agreement in Paris later this year. One of the world’s top emitters, the EU intends to reduce its emissions 40 percent (relative to 1990 levels) by 2030. This commitment is in addition to 2050 emissions reduction targets that a recent report published by the European Environment Agency claims may prove difficult to reach.

“The level of ambition of environmental policies currently in place to reduce environmental pressures may not enable Europe to achieve long-term environmental goals, such as the 2050 target of reducing greenhouse gas emissions by 80-95 percent,” the report said. It points to a 60 percent cut in transportation emissions toward which little progress has been made.

Another study that looks at commitments by all nations to curb the effects of climate change suggests that the U.N. goal of avoiding 2 degrees Celsius of warming by century’s end is unlikely to be met. According to the authors, to attain that goal, the agreement reached in Paris must not only be based on a shared commitment to creating “equitable access to sustainable development,” but must also be structured to facilitate dynamic and collaborative interactions between parties.

Negotiators aim to complete an agreement in Paris that would go into effect in 2020. All countries are due to announce their emissions reductions plans in June in Bonn.

Droughts in the Amazon Accelerating Climate Change

A severe drought in 2010 doubled the rate of tree mortality in the Amazon rainforest, causing a 1.4 billion ton loss in the forest’s uptake of carbon dioxide from the atmosphere. That’s the conclusion of a new study in Nature that finds droughts are causing the trees to exhale more carbon dioxide than they inhale. The authors say trees store a tenth less CO2 from the atmosphere during droughts, apparently because they are channeling their more limited energy reserves into growth.

“Here, we show for the first time that during severe drought, the rate at which they [tropical rainforests] ‘inhale’ carbon through photosynthesis can decrease,” said Christopher Doughty, one of the researchers. “This decreased uptake of carbon does not decrease growth rates but does mean an increase in tree deaths. As trees die and decompose, the concentrations of carbon dioxide in the atmosphere will increase, potentially speeding up climate change during tropical droughts.”

The study provides the first direct evidence of the rate at which individual trees in the Amazonian basin absorb carbon during a severe drought. An international research team compared the growth and photosynthesis rates of trees at 13 drought-affected and non-drought-affected rainforest plots across Brazil, Peru, and Bolivia. Researchers discovered that growth rates of the trees in the plots were unchanged but that photosynthesis rates on the six drought-affected plots slowed by some 10 percent over six months.

EIA Report Sees Growth in Wind, Solar

Electricity from renewable sources outpaced the growth of electricity from fossil fuel-fired plants in 2014, according to a new Energy Information Administration report. Though solar’s share of electricity production remained smaller than wind’s share, net generation of the former grew by more than 100 percent last year. Wind generation grew by 8 percent and is forecasted to grow by 16.1 percent this year and another 6.5 percent in 2016.

“Because wind is starting from a much larger base than solar, even though the growth rate is lower, the absolute amount of the increase in capacity is more than twice that of solar: 15 GW [gigawatts] of wind versus 6 GW of utility-scale solar between 2014 and 2016,” the EIA reports.

Ultimately, wind will see a net increase of 9.8 gigawatts—the most of any other power source in 2015. California and North Carolina will add the most utility-scale solar capacity to systems (73 percent combined).

“Given current growth rates, especially for solar and wind, it is quite possible that renewable energy sources will reach, or exceed, 14% of the nation’s electrical supply by the end of 2015,” noted Ken Bossong, executive director of the SUN DAY Campaign. “That is a level that EIA, only a few years ago, was forecasting would not be achieved until the year 2040.”

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.

UN Climate Negotiators Ink Deal in Lima

December 18, 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 holidays, The Climate Post will not circulate on December 25th and January 1st. We will return on January 8, 2015.

Negotiators have reached a deal at United Nations (UN) talks in Peru, setting the stage for a global climate pact in Paris in December 2015. The agreement, dubbed the Lima Call for Climate Action, for the first time in history commits every nation to reducing its rate of greenhouse gas emissions.

“As a text, it’s not perfect but it includes the positions of the parties,” said Peru environment minister and conference chair Manuel Pulgar-Vidal.

In addition to an “ambitious agreement” in 2015 that reflects each nation’s “differentiated responsibilities and respective capabilities,” the Lima document calls for submission of national pledges by the first quarter of 2015 by those states “ready to do so” and for setting of national targets that go beyond countries’ “current undertaking.”

Countries already imperiled by climate change, such as small island states, were promised a “loss and damage” program of financial aid.

Through Belgium’s pledge of $62 million, the UN Green Climate Fund met its initial target of $10 billion to aid developing countries in curbing carbon emissions.

“There is still considerable work to be done,” said Felipe Calderon, former president of Mexico and chairman of the Global Commission on the Economy and Climate, at the conclusion of the talks. “But I am encouraged that countries, all around the world, are beginning to see that it is in their economic interest to take action now.”

“We are happy that the final negotiated statement at COP20 in Lima has addressed the concerns of developing countries,” said India’s environment minister Prakash Javadekar. “It gives enough space for the developing world to grow and take appropriate nationally determined steps,” he said.

But the negotiations, at which U.S. Secretary of State John Kerry had made an impassioned plea for agreement, were considered a failure by those hoping for ambitious emissions reductions commitments.

“Against the backdrop of extreme weather in the Philippines and potentially the hottest year ever recorded, governments at the U.N. climate talks in Lima opted for a half-baked plan to cut emissions,” said Samantha Smith, leader of World Wildlife Fund’s global climate and energy initiative.

The remaining North-South divide over which countries should carry the majority of emissions-cutting costs—plus other thorny matters, such as how to finance poorer countries’ reductions and preparations for extreme climatic events—has increased the diplomatic heavy-lifting required to reach a final agreement in 2015.

“They [countries] got through Lima by largely skirting the issue for now,” said Elliot Diringer, executive vice president at the Center for Climate and Energy Solutions. “It’s hard to see that flying in Paris.”

Solar Net Metering Terms Set in South Carolin​a

An agreement filed in South Carolina outlines new terms for solar net metering in the state. The terms ensure homes, businesses, schools, and any nonprofit organizations using rooftop solar panels will be provided “one-to-one” retail credit (or full retail value) from the state’s utilities for each kilowatt hour generated back to the electric grid—making South Carolina the 44th state (subscription) to allow for full rate credit.

Referred to as net metering, this process was a key component of Act 236, a law passed in June, which made solar power more accessible in the state.

Upon gaining approval from the South Carolina Public Service Commission, the agreement—supported by utilities such as Duke Energy and environmental groups—will provide homeowners the opportunity to lease solar systems while allowing utility companies to recoup costs of offering service.

According to Dukes Scott, executive director of the South Carolina Office of Regulatory Staff, proposed rules from the Environmental Protection Agency’s Clean Power Plan on reducing carbon emissions will help determine the value or contribution of solar power.

Last Big Warmup May Offer Sneak Peek into Today’s Climate Change

Despite climate warming by five to eight degrees Celsius during the Paleocene-Eocene Thermal Maximum, nearly 55.5 million years ago, most of the species around that time survived. However, it took nearly 200,000 years for Earth to recover from that 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.

Studies Link Climate Change to Recent Extreme Weather Events

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

The Nicholas Institute for Environmental Policy Solutions at Duke University

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

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

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

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

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

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

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

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

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

Emissions from Industrial Facilities Rose Last Year

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

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

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

IEA Says Solar Could Become Dominate Energy Source by 2050

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

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

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

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

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

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

The Nicholas Institute for Environmental Policy Solutions at Duke University

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

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

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

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

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

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

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

Obama Announces New Solar Efficiency Measures

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

Among the measures:

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

The Transition to Clean Energy

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

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

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

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

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

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

Report, Initiatives Aim to Take Action on Climate Change

July 31, 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.

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.

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.

Senate Clears Way for Keystone XL Pipeline

June 19, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Editor’s Note: The Climate Post will not circulate next week. It will return July 3.

The U.S. Senate Energy and Natural Resources Committee voted 12 to 10 on a bill Wednesday approving the long-debated Keystone XL oil pipeline. The pipeline, which would transport oil from Canada to the U.S. Gulf Coast, requires presidential approval as it crosses international boundaries. Without a commitment from Senate Majority Leader Harry Reid to bring it to a vote by the full Senate, the bill is likely to languish.

Even so, Forbes deemed the vote “more than symbolic,” saying “It serves to tell the truth about Keystone XL, the need for new pipelines in this country, and for making our future energy security our top priority.”

Others, like Natural Resources Defense Council attorney Anthony Swift, disagreed. “This latest vote on the Keystone XL tar sands pipeline is all about politics and bad policy,” he said. “Locking ourselves into a massive infrastructure to move the dirtiest oil on the planet for the next 50 years would greatly worsen carbon pollution—at a time when we’re facing growing and grievous costs wrought by climate change.”

Another Canadian pipeline did get the official green light—the Northern Gateway project. Just as controversial as Keystone XL, the Northern Gateway pipeline would carry 525,000 barrels of oil a day from Alberta to British Columbia, where it would be loaded on supertankers for shipment to Asia through sensitive waters in the Pacific’s shipping lanes. Before construction can begin on the Northern Gateway pipeline, Enbridge must meet about 100 conditions imposed by the regulator. Inside Climate News focuses on the “eerie” parallels between the debates on each pipeline project.

As the United States Grapples with EPA Rule, Japan Considers Carbon Trading

The U.S. Environmental Protection Agency’s proposed rule to reduce greenhouse gas emissions from existing power plants has made it into the pages of the Federal Register, an event marking the start of a 120-day comment period.

In the weeks since the rule’s release, there has been closer examination of how states can meet emissions standards cost effectively. Some say energy efficiency is the answer. Another potential solution: wind and solar. In an op-ed in The Hill, representatives of the American Wind Association and the Solar Energy Industries Association point to the technologies’ cost decreases and significant carbon reduction benefits. Others like Ed Throop, director for the Sikeston Board of Municipal Utilities, are not so convinced. “The wind doesn’t blow all the time and the sun doesn’t shine all the time,” he said. It’s good, clean energy, but it’s not what you’d call baseload energy. You can’t call on it anytime you need it.”  

Japan has its own strategy for reducing greenhouse gas emissions. According to unnamed government sources, the country may have plans to agree to a carbon deal with India. Japanese companies would install carbon-cutting technology in India and in return receive carbon credits that can be used to offset their country’s emissions under the joint crediting mechanism. So far, Japan has signed agreements with 11 countries to launch the joint crediting mechanism. Several news outlets reported the likelihood of a bilateral agreement in early July during annual talks by Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi.

Ocean Sanctuary Would Close Parts of Pacific to Energy Exploration

President Barack Obama on Tuesday announced his intent to expand a U.S. sanctuary in the central Pacific Ocean. Slated to go into effect later this year, the proposal extends protection around the Pacific Remote Islands Marine National Monument to 200 miles and limits fishing and energy development. The White House said it will consider input from lawmakers and fishermen before making any final decisions about the geographic scope of the sanctuary.

In video remarks, Obama said climate change, overfishing and pollution have threatened economic growth opportunities in the ocean.

“We cannot afford to let that happen,” Obama said. “That’s why the United States is leading the fight to protect our oceans. Let’s make sure that years from now we can look our children in the eye and tell them that, yes, we did our part, we took action, and we led the way toward a safer, more stable world.”

Marine reserves, Smithsonian Magazine reports, can mitigate some of these problems by increasing the size and number of marine creatures within its borders and helping species deal with climate change.

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


Climate Change, EPA Rules Focus of McCabe Confirmation Hearing

April 10, 2014
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

Climate change, extreme weather and U.S. Environmental Protection Agency (EPA) rules to regulate greenhouse gas emissions from new and existing power plants were the focus of a confirmation hearing for Janet McCabe, President Barack Obama’s nominee to head the EPA’s Office of Air and Radiation.

In the hearing—at which lawmakers took jabs at one another on the impacts of climate change and criticized McCabe’s recent comments on extreme weather causes—the acting assistant administrator for air and radiation told the committee that if confirmed she would evaluate the full consequences of the EPA’s current and pending rules. She pointed to her work as a state regulator in Indiana, highlighting her sensitivity to the economic impact of environmental regulations.

“I come from Indiana, where people rely on coal,” she told the committee (subscription).

The Senate Environment and Public Works Committee has not announced when it will vote on McCabe’s nomination, which still requires approval by the full Senate.

Just a day earlier, EPA Administrator Gina McCarthy touted the draft rule for existing power plants, which is scheduled for release by June 1. “We are going to make them cost-effective, we are going to make them make sense,” McCarthy said at a conference. “That doesn’t mean it’s going to be so flexible that I’m not going to be able to rely on this as a federally enforceable rule.”

Flexibility for states was emphasized by McCarthy who insisted the EPA will give states the tools to curtail emissions that drive climate change and that the proposed rule will not threaten electric reliability or shutter large numbers of facilities.

EPA officials have met with more than 200 groups about the upcoming rule. Last week, the White House began its review of the rule—the final step before the EPA can publish it and gather formal comments from the public.

EIA Energy Outlook Predicts Decrease in Oil Imports

Net U.S. energy imports declined last year to their lowest level in more than 20 years, meaning U.S. net imports could reach zero within 23 years, according to the U.S. Energy Information Administration (EIA).

The finding is the first in a staged release of the EIA’s complete Annual Energy Outlook 2014. Future releases—running April 14 to April 30—will look at matters ranging from the implications of accelerated power plant retirements and lower natural gas prices for industrial production to light-duty vehicle energy demand and the potential for liquefied natural gas to be used as a railroad fuel.

Between 2012 and 2013, net energy imports decreased by 19 percent. The EIA cited increased growth in oil and natural gas production as the reason. Crude oil production grew 15 percent in 2013.

“In EIA’s view, there is more upside potential for greater gains in production than downside potential for lower production levels,” the report said. It noted that U.S. oil production should hit 9.6 million barrels per day by 2020.

Global Renewable Energy Investment Down as Tax Credits Resurface

Global investment in renewable energy fell 14 percent in 2013, according to a new report by the United Nations Environment Programme (UNEP), Bloomberg New Energy Finance and the Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance. The drop in investment was attributed, in part, to energy policy uncertainty and the falling cost of renewable energy technology. The latter factor may seem counterintuitive but one of the report’s lead editors, UN energy expert Eric Usher said that the fall in the cost of the clean energy technologies, particularly solar, had “left some governments thinking that they had been paying too much and reviewed their subsidies.”

Even with investment down, the shift toward low-carbon sources hasn’t slowed. “The onward march of this sector is inevitable,” said Michael Liebreich of Bloomberg New Energy Finance.

Renewables accounted for 8.5 percent of power generated worldwide last year—up from 7.8 percent in 2012. Liebreich told Mother Jones that proprietary data about future investments suggest annual clean tech installations worldwide are likely to jump 37 percent to 112 gigawatts—a record level—by 2015.

Further incentives for renewables may be in the offing. Last week, the U.S. Senate Finance Committee approved a draft bill that includes some 50 temporary tax breaks, including one for renewable energy. The bill includes provisions for wind energy through an extension of the U.S. Renewable Energy Production Tax Credit, which was responsible for jumpstarting much of the last decade’s U.S. wind energy development. Provisions were also included for biofuel.

Congress is expected to pass the bill by the end of year, allowing businesses and individuals to continue to claim tax breaks on their 2014 taxes.

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

U.N. Climate Talks Pick Back Up in Bonn

June 6, 2013
The Nicholas Institute for Environmental Policy Solutions at Duke University

The Nicholas Institute for Environmental Policy Solutions at Duke University

The next round of U.N. climate change talks began in Bonn, Germany—the final round of midyear negotiations before the 19th Conference of the Parties to the U.N. Framework Convention on Climate Change in November. The talks are, in part, focused on defining elements of a universal climate agreement by 2015, an agreement that would be enforced by 2020.

“The negotiations are now in a crucial conceptual phase of the 2015 agreement,” said U.N. Climate Chief Christiana Figueres. “Stakeholders need to provide clear inputs as to where more ambition is possible, and where international policy guidance from governments can unleash even more action on their part.”

Early stories regarding research by the Stockholm Environment Institute aims to guide emissions targets being devised by U.N. climate talk delegates. Their plan suggests the U.S. would be responsible for 29.1 percent of greenhouse gas reductions by 2020—three times the effort assigned to the current emissions leader, China—to avoid the worst effects of climate change.

The Obama administration also opted to raise the social cost of carbon emissions—a monetized estimate of health, property and environmental damage tied to federal regulations—from about $21 to roughly $35 a metric ton. In theory, this means the government could justify stricter regulations for greenhouse gas emissions in the future, according to the Washington Post.

Wind, Solar, Geothermal Projects to Increase Domestic Renewable Production

Projects with the potential to create 520 megawatts of new clean electricity generation were announced by the U.S. Department of Interior this week. Located in Arizona and Nevada, the projects—the 350-megawatt Midland Solar Energy Project near Boulder City, Nev., the 100-megawatt Quartzsite Solar Energy Project near Quartzsite, Ariz., and the 70-megawatt New York Canyon Geothermal Project—are the first approved by Department Secretary Sally Jewell on public lands since she took over the department earlier this year.

“These projects reflect the Obama Administration’s commitment to expand responsible domestic energy production on our public lands and diversify our nation’s energy portfolio,” said Jewell. “Today’s approvals will help bolster rural economies by generating good jobs and reliable power and advance our national energy security.”

Separately, the department announced its first ever commercial wind energy lease sale in federal waters, south of Rhode Island and Massachusetts. The July 31 sale will include 164,750 acres that could produce enough electricity to power more than one million homes, if fully developed. Nine companies, including the developer of the Cape Wind Project, expressed interest in participating. The area sits between, and to the south of, Block Island and Martha’s Vineyard. Although several offshore wind farms are being developed in the U.S., there are none currently in operation. In Maine, a team did recently launch a prototype of a floating turbine—making history. The turbine, which stands 65 feet tall, is now afloat and connected to the grid with a capacity of about 20 kilowatts. The research team hopes the prototype will cut the traditional cost of erecting a tower in the water, allowing the U.S. to better tap into its offshore wind potential, which is estimated at 4,000 gigawatts.

Keystone Hearing Rumored

This summer, there could be another public hearing in Washington, D.C. on the Keystone XL oil sands pipeline, but State Department officials have yet to confirm the news regarding the long awaited project.

Meanwhile, another Canadian company is quietly building a network of new and expanded pipelines that would achieve the same goal as Keystone—but bring even more oil into the U.S.

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.