Trump Administration Issues Solar Import Tariff

The Nicholas Institute for Environmental Policy Solutions at Duke University

The Trump administration announced Monday that it will begin imposing a 30 percent tariff on solar cells and modules imported into the United States. The tariff will decline annually over a four-year period—reaching 15 percent in year four—and the first 2.5 gigawatts of imported solar cells will be exempt from the safeguard tariff in each of those four years.

The U.S. has the world’s fourth-largest solar capacity after China, Japan and Germany. The Office of the U.S. Trade Representative (USTR) said the tariff, which is opposed by most of the renewable energy industry, is necessary to prevent unfair practices by overseas manufacturers, mainly in Asia.

“From 2012 to 2016, the volume of solar generation capacity installed annually in the United States more than tripled, spurred on by artificially low-priced solar cells and modules from China,” the USTR said in a fact sheet announcing the Trump administration’s decision. “China’s industrial planning has included a focus on increasing Chinese capacity and production of solar cells and modules, using state incentives, subsidies, and tariffs to dominate the global supply chain.”

The tariff comes in response to petitions from two American manufacturers who complained for years that rising imports were eating into their sales. The International Trade Commission (ITC), in September, voted in favor of imposing a tariff. Monday’s announcement is similar to one recommended by the ITC late last year.

More than 80 percent of U.S. solar installations use imported panels, many of which come from China. However, China is not the only country that could be affected by the decision. Countries like South Korea now account for many of U.S. solar imports, which means they could face job losses and other hardships as a result of the tariffs.

Although imposing tariffs could create as many as 6,400 solar manufacturing positions, overall industry job losses could exceed those gains, an independent analysis by Bloomberg New Energy Finance performed for Utility Dive found. The Solar Energy Industries Association said 23,000 jobs would be lost in 2018, noting that most solar manufacturing in the U.S. involves making parts for cheaper imported panels.

Homeowner installation costs are expected to go up about 4 percent and utility-scale installation costs could go up about 10 percent, according to ClearView Energy Partners.

Before the tariff announcement, the U.S. Energy Information Administration estimated that total U.S. small-scale solar capacity was 16 gigawatts (GW) at the end of 2017 and projected it to grow to 19 GW by the end of 2018. It estimated that U.S. large-scale solar capacity totaled 27 GW at the end of 2017 and projected it to rise to 30 GW by the end of 2018.

Studies Examine Continuing Warming Trend

According to an analysis released last week by the National Aeronautics and Space Administration (NASA), 2017 was the second warmest year in 123 years of record-keeping. Using a different methodology, the National Oceanic and Atmospheric Administration (NOAA) had earlier put 2017 as the third warmest year. In either case, it was the 21st consecutive year in which the annual average temperature exceeded the 20th century average of 13.9 degrees Celsius (57 degrees Fahrenheit) and the third consecutive year that every state across the contiguous U.S. and Alaska experienced above-average annual temperatures. Notably, it was also the warmest year on record without the warming influence of El Niño, which contributed to the heat of the warmest year, 2016.

Gavin Schmidt, director of NASA’s Goddard Institute for Space Studies, said there’s little doubt about the source of the multi-decadal warming.

“Basically all of the warming in the last 60 years is attributable to human activities, and carbon dioxide emissions are the No. 1 component of that,” Schmidt said.

According to NOAA’s annual global climate report, worldwide, temperatures in 2017 were 0.8 degrees Celsius (1.5 degrees Fahrenheit) above the 20th century average, and ocean temperatures experienced their third-warmest year on record.

In Poll, Mayors Acknowledge Threat of Climate Change

Two-thirds of mayors said that cities should take action on climate change, even if doing so requires financial costs, according to an annual poll by Boston University.

“As the widening wealth gap, rising cost of housing and other economic challenges dominate the discourse in Washington, D.C. and across the country, the 2017 Menino Survey of Mayors provides invaluable insights into some of the most complex issues facing our nation’s mayors,” said Bob Annibale, Global Director of Citi Community Development and Inclusive Finance. “This year’s survey confirms yet again that our nation’s mayors are leading the way—prioritizing issues within and beyond their municipal borders, such as affordable housing and climate change, with innovative approaches that affect positive change for their constituents.”

Those polled cited a range of top climate and sustainability issues, including reducing the number of vehicles on the road (36 percent), upgrading city buildings and vehicles (31 percent), and sourcing greener energy (27 percent). Increasing residential density and updating building codes were also considered integral parts of any serious effort to address climate change, but when it came to the private sector, respondents pushed back on the need to institute new costly regulations.

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.

Carbon Tax Not on Agenda for Trump

The Nicholas Institute for Environmental Policy Solutions at Duke University

President Donald Trump is not considering a national carbon tax proposal that a group of Republicans discussed in February. A White House official told GreenWire in an e-mail that although the group of Republican leaders visited the White House to discuss their proposal that “the Trump Administration is not considering a carbon tax.”

The plan had called for an increase in the cost of fossil fuels to bring down consumption—suggesting a tax of $40 a ton that would increase steadily over time. Tax proceeds, they state, would be redistributed to consumers on a quarterly basis in what they call “carbon dividends” that could be approximately $2,000 annually for a family of four.

The Hill reports that White House advisors, along with National Economic Council (NEC) Director Gary Cohn, met with the group led by former Secretary of State James A. Baker III.

“Part of the NEC’s responsibility in coordinating economic policy for the president is to listen to a range of viewpoints on various issues,” said Lindsay Walters, a White House spokeswoman. “The Trump administration is not considering a carbon tax.”

Nominee for Supreme Court Sheds Little Light on How He Would Weigh Environmental Issues

The Senate hearing began this week for Judge Neil Gorsuch, President Donald Trump’s nominee to fill the Supreme Court seat left vacant in February 2016 by the death of Justice Antonin Scalia. How Gorsuch may weigh environmental issues is difficult to discern due to his slender case record on energy and climate topics.

“His record is kind of skimpy,” said Peter McGrath, a member of the Moore & VanAllen law firm based in Charlotte, North Carolina. “It’s hard to predict where he might rule.”

His third day of Senate testimony has revealed little about how Gorsuch might consider specific issues. He repeatedly said that it is his duty to “apply the law impartially.”

He has been skeptical of a judicial doctrine whereby government agencies’ interpretation of ambiguous statutes prevails unless it is unreasonable—the so-called Chevron deference. Chevron has become the basis of the legal argument for many environmental cases since the 1980s. But according to a concurring opinion Gorsuch wrote last year, the doctrine empowers bureaucrats to “swallow huge amounts of core judicial and legislative power” and to “concentrate federal power” in a way with which the framers of the Constitution would have disagreed.

On day two of his Senate hearing, Gorsuch may have partly clarified his stance on the legal doctrine.

“Scientists, biologists, chemists—the experts get great deference from the courts,” Gorsuch said. “The only question is who decides what the law is.”

The hearing for Gorsuch is expected to continue through Thursday and possibly into Friday. Senate Judiciary Committee Chairman Charles E. Grassley (R-Iowa) said the plan is for the full Senate to vote on Gorsuch by Easter.

Complex Picture of Carbon Emissions Emerges; Record Temps Continue

Thanks to a combination of stricter emissions regulations, a decline in the use of coal, cheaper natural gas and a rise in clean energy, climate-warming carbon dioxide emissions—totaling 32.1 metric gigatons in 2016—have remained flat for the third consecutive year despite 3.1 percent growth in the global economy over the same period, the International Energy Agency (IEA) announced on Monday. The biggest drop came from the United States, where carbon dioxide emissions fell 3 percent, while the economy grew 1.6 percent. Carbon dioxide output also declined 1 percent in China, where the economy grew by more than 6 percent, showing that the world’s two largest energy users and carbon emitters may be able to balance economic growth with emissions reductions. The decreases offset increases in most of the rest of world.

“These three years of flat emissions in a growing global economy signal an emerging trend and that is certainly a cause for optimism, even if it is too soon to say that global emissions have definitely peaked,” said IEA Executive Director Fatih Birol. “They are also a sign that market dynamics and technological improvements matter.”

In 2016, renewables, particularly hydro, supplied more than half the growth in global electricity demand. The overall increase in the world’s nuclear net capacity last year was the highest since 1993, with new reactors becoming operational in China, the United States, South Korea, India, Russia and Pakistan. And coal demand fell worldwide but particularly in the United States, where it was down 11 percent in 2016 and where, for the first time, more electricity was generated from natural gas than from coal.

Although positive for air pollution, the emissions pause, said the IEA, is insufficient to keep global temperatures from rising 2 degrees Celsius, the cutoff that scientists say helps us to avoid the worst effects of climate change. Transparent, predictable policies are needed worldwide to ensure temperatures do not rise above 2 degrees Celsius.

The National Oceanic and Atmospheric Administration and the National Aeronautics and Space Administration on Friday announced that last month’s average global temperature was 1.76 degrees Fahrenheit above the 20th-century average of 53.9 degrees Fahrenheit, making February 2017 the second warmest, behind last February, in 137 years of record keeping.

On the heels of this announcement, the annual State of the Global Climate report from the World Meteorological Organization (WMO) also showed that 2016 was the warmest year on record. The El Niño weather phenomenon contributed 0.1 to 0.2 degrees to the longer-term warming driven by carbon dioxide emissions.

“The year 2016 was the warmest on record—a remarkable 1.1 degrees Celsius above the pre-industrial period, which is 0.06 degrees Celsius above the previous record set in 2015,” said WMO Secretary General Petteri Taalas. “This increase in global temperatures is consistent with other changes occurring in the climate system. Globally averaged sea surface temperatures were also the warmest on record, global sea levels continued to rise, and Arctic sea-ice extent was well below average for most of the year.”

According to WMO, provisional data also indicates that there has been no easing in the rate of increase in atmospheric carbon dioxide despite the fading of 2016’s strong El Niño conditions, a phenomenon in the Pacific that increases global temperatures and affects weather patterns.

“Even without a strong El Niño in 2017, we are seeing other remarkable changes across the planet that are challenging the limits of our understanding of the climate system,” said David Carlson, director of the World Climate Research Programme. “We are now in truly uncharted territory.”

The WMO says the Arctic has experienced the “polar equivalent of a heatwave” at least three times this winter, while Antarctic sea ice has been at a record low.

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 Hearings for Trump’s Environmental Cabinet Members Continue

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

As the nation prepares for the inauguration of its 45th president, environment-focused hearings for some of President-Elect Donald Trump’s cabinet nominees continue. They include hearings for Scott Pruitt, nominee to head the U.S. Environmental Protection Agency (EPA) and former Oklahoma attorney general, as well as Ryan Zinke, nominee for secretary of the interior and a former Navy Seal. Rick Perry, nominee for energy secretary and former governor of Texas, will have a hearing today.

The picks appear to follow Trump’s campaign promises to roll back EPA regulations and increase drilling on public lands. At his Tuesday hearing, Zinke said he would consider expansion of energy drilling and mining on federal lands but would ensure sensitive areas remain protected. A new Reuters/Ipsos poll suggests many Americans want the opposite. More than 60 percent of Americans would like to see the EPA’s powers preserved or strengthened and the drilling of oil on public lands to hold steady or drop.

Here is what Pruitt and Zinke had to say on top environmental topics:

On climate change:

Zinke: “First of all, the climate is changing, that’s undisputable,” Zinke said at his hearing, adding that he and his wife had seen evidence of glaciers retreating during a visit to Glacier National Park in Montana. “The second thing is man has had an influence. I think that’s undisputable as well. So, climate is changing, man is an influence. I think where there’s debate on it is what that influence is and what can we do about it.”

Pruitt: “Science tells us that the climate is changing and that human activity in some manner impacts that change. The ability to measure with precision the degree and extent of that impact and what to do about it are subject to continuing debate and dialogue, and well it should be … I do not believe climate change is a hoax.”

On energy:

Pruitt: “First, we must reject the false paradigm that if you are pro-energy, you are anti-environment and if you are pro-environment, you are anti-energy. I utterly reject the narrative.”

He said he would support the U.S. renewable fuels program, which requires biofuels like ethanol to be blended into gasoline, but said the program needed some tweaks.

Zinke: “The war on coal, I believe, is real. All-of-the-above is the correct (energy) policy. Coal is a great part of that energy mix. I’m also a great believer that we should invest in research and development on coal—because we know we have the asset—to make it cleaner and better. We should lead the world in clean energy technology.”

On environmental regulation:

Pruitt: “Environmental regulations should not occur in an economic vacuum. We can simultaneously pursue the mutual goals of environmental protection and economic growth,” he said, adding that he would seek to give states more authority to regulate their own environmental issues.

Zinke: “The president-elect has said we want to be energy independent. I can guarantee you it is better to produce energy domestically under reasonable regulation, than watch it be produced overseas with no regulation.”

Reports: Climate Change A Risk; Responsible for Record Warming

The issue of climate change is not one to ignore, according to recent reports on global risks by the World Economic Forum (WEF) and global temperature by the National Oceanic and Atmospheric Administration (NOAA), NASA and the U.K.’s Met Office.

In the WEF’s annual report, which is based on an assessment of 30 global risks by 750 experts from business, academia and non-governmental organizations, climate change was labeled the third major global trend. Failing to adapt to or mitigate climate change and a host of other climate-connected risks, including water and food crises and involuntary migration, also rank in the top 10.
In its annual State of the Climate report, NOAA found that global temperatures are the highest since scientists started tracking them in 1880. NASA and the U.K.’s Met Office came to the same conclusion.

“The NOAA and NASA are two keepers of the world’s temperature data and independently produce a record of Earth’s surface temperatures, as well as changes based on historical observations over ocean and land,” NOAA officials said in a statement. “Consistency between the two independent analyses, as well as analyses produced by other countries, increases confidence in the accuracy of such data, the assessment of the data and resulting conclusions.” 

The NOAA report suggests that the average temperature in 2016 was 2.9 degrees Fahrenheit above the 20th-century average, making it the second-warmest year on record. Temperature increases in 2016 had links to El Niño, which waned in the spring, as well as human-caused global warming, which has been leading to an array of climate shifts in the U.S.

“A single warm year is something of a curiosity,” said Deke Arndt, chief of global climate monitoring for NOAA. “It’s really the trend, and the fact that we’re punching at the ceiling every year now, that is the real indicator that we’re undergoing big changes.”

National Academy of Sciences Recommends Social Cost of Carbon Makeover

A December memo prepared by Trump’s energy transition head Thomas Pyle suggested that the social cost of carbon—the U.S. government’s best estimate of how much society gains over the long term by cutting each ton of carbon dioxide emissions—will likely be a target for lowering. The estimate factors into justifications for various environmental policies, such as regulation of power plant emissions, and it has helped shape 79 regulations since 2010. A report released last week by the National Academies of Sciences, Engineering, and Medicine details a new framework to arrive at that estimate, one aimed at strengthening the estimate’s scientific basis and transparency.

“I think the report has laid out an important blueprint for how to update the most important number that you’ve never heard of,” said University of Chicago economist Michael Greenstone, who served as a reviewer. “Social and economic understanding of climate change has advanced greatly in the last six years, since the original social cost of carbon was released, and the report identifies important ways to take advantage of those improvements in our understanding.”

The report recommends that the federal government use a framework in which each step of the social cost of carbon calculation is developed as one of four separate but integrated “modules”: the socioeconomic module; the climate module, which translates emissions changes into temperature changes; the damages module, which estimates the net impact of temperature changes in dollar terms; and the discounting module. Instead of using a fixed discount rate—the exact rate to use is highly contentious—the discounting module would incorporate the relationship between economic growth and discounting for calculating discount rates, thereby accounting for uncertainty about them over long timeframes.

The recommendation to “unbundle” the mix of models currently used would make transparent the assumptions and uncertainties in each step of the calculation and, according to Myles R. Allen, one the report’s authors, clarify where data ends and choices begin.

“There are obviously political decisions which need to be made in any calculation like the social cost of carbon,” said Allen. “On the other hand, the way the climate system responds to greenhouse gas emission levels is not really up for political discussion.”

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.

Release of Carbon from Melting Permafrost Could Trigger Rapid Warming

The Nicholas Institute for Environmental Policy Solutions at Duke University
The Nicholas Institute for Environmental Policy Solutions at Duke University

A study published last week in Nature Geoscience provides the first measurements of greenhouse gases from permafrost under Arctic lakes in Alaska, Siberia, and Canada. Although the research reveals that only a small amount of old carbon has been released in the past 60 years, it also suggests that much more could be released as the Arctic warms up faster than any other place on Earth.

“It’s a lit fuse, but the length of that fuse is very long,” said lead author Katey Walter Anthony of the University of Alaska. “According to the model projections, we’re getting ready for the part where it starts to explode. But it hasn’t happened yet.”

The scientists determined that the permafrost-carbon feedback is thus far small by looking at aerial photographs and using radiocarbon dating to determine the age of methane emitted from the Arctic lakes that are expanding to consume and thaw terrestrial permafrost. As that permafrost melts and decomposes, it releases ancient carbon as carbon dioxide and methane. Analysis of 113 radiocarbon dating measurements and 289 soil organic carbon measurements showed that approximately 0.2 to 2.5 petagrams of permafrost carbon was released as methane and carbon dioxide in the past six decades.

The billions of tons of carbon stored in permafrost are approximately double the amount currently in the atmosphere. Many researchers are concerned that emission of that stored carbon will contribute to warming that then contributes to permafrost thawing in an accelerating feedback loop.

NASA: Temperature Reconstructions Suggest Achievement of Paris Agreement Goals “Unlikely”

The Paris Agreement’s goal to limit Earth’s temperature increase to “well below” 2 degrees Celsius and to pursue efforts to limit that increase to 1.5 degrees Celsius above pre-industrial levels is unlikely to be achieved according to temperature reconstructions from the National Oceanic and Atmospheric Administration and the National Aeronautical and Space Administration (NASA). Those reconstructions reveal that the world is heating up faster than at any other time within the past 1,000 years. Over the next 100 years, according to NASA, it will continue to warm at least 20 times faster than the historical average.

“In the last 30 years we’ve really moved into exceptional territory,” said Gavin Schmidt, director of NASA’s Goddard Institute for Space Studies. “It’s unprecedented in 1,000 years. There’s no period that has the trend seen in the 20th century in terms of the inclination (of temperatures). Maintaining temperatures below the 1.5C guardrail requires significant and very rapid cuts in carbon dioxide emissions or coordinated geo-engineering. That is very unlikely. We are not even yet making emissions cuts commensurate with keeping warming below 2C.”

Using evidence left in tree rings, layers of ice in glaciers, ocean sediments, coral reefs, and layers of sedimentary rocks, NASA figures that the past century’s warming of 0.7 degrees Celsius is roughly 10 times faster than the average rate of ice-age-recovery warming.

This year, the average global temperature reached 1.38 Celsius above levels observed in the 19th century, just 0.12 Celsius below the 1.5 Celsius limit that nations aimed for in the Paris Agreement.

Climate Change Major Focus at G20 Summit

Climate change is among the topics world leaders are expected to discuss at a G20 summit in China, beginning September 4.

“This is the first time that the G20 leaders are gathering to discuss the Sustainable Development Goals and climate change, (and) how we implement them in parallel,” said United Nations Secretary-General Ban Ki Moon.

President Obama, who began his 10-day trip to Asia on Wednesday, is expected to stress the urgency of climate change. And some media outlets are reporting that the United States and China are expected to announce their ratification of the Paris Agreement prior to the start of the G20 Summit, but the White House has made no formal statement to this effect.

“We’ve made the commitment that we will join in 2016. And we’ve made the commitment to do that as soon as possible this year,” said Brian Deese, senior advisor to the president. “With respect to exactly when, I don’t have any announcements on that front. But we’ve committed, and we’ve been working on that issue.”

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.

California Adopts Cap-and-Trade System, Serves as Greenhouse Guinea Pig

The Nicholas Institute for Environmental Policy Solutions at Duke University

After a unanimous vote by the California Air Resources Board, the state adopted the most comprehensive cap-and-trade system in the country, a key part of a 2006 global warming law that had yet to be implemented. The system will cover 85 percent of greenhouse gas emissions in the state, and allows businesses to counterbalance up to 8 percent of their emissions by buying offset credits.

The state is making itself a guinea pig for climate legislation and hopes to inspire other states to follow suit—a precedent the state has set with other environmental legislation.

At first, most of the emissions credits will be given out free, but it’s expected by 2016 to be a $10 billion market.

Slow Growth

After the economic crash of 2008, the growth of clean energy slowed—and the outlook for the rest of the decade is single-digit growth, according to analyses by IHS Emerging Energy Research and others. A major factor has been that cash-strapped governments have cut back on subsidies that helped drive the growth in renewables.

The U.K. reshuffled its renewable subsidies, taking away from onshore wind and hydro power, and giving more to tidal and biomass power plants. Scotland—which sets its subsidies separately from the rest of the U.K., and which boasts some of the world’s best wind and tidal resources—also made subsidy support adjustments.

Industry experts fear the U.K. may soon slash solar subsidies by half—after already cutting them earlier this year—so they are encouraging people to install solar systems now.

But the World Wildlife Fund argues that high growth of renewables is still possible, and the U.K. could get nearly all of its energy from renewables by 2030.

In the U.S., solar industry jobs grew about 7 percent in the past year—much faster than job growth in the whole economy, but only about a quarter of the rate that the industry had expected, according to the Solar Foundation’s newly released National Jobs Census.

High-Tech Efficiency

In Europe, “business as usual will not be an option for most energy utilities,” according to McKinsey analysts who argued that energy demand is reaching a peak, and existing technologies could drastically cut consumption. In response, utilities should look to other services to keep their revenue up, such as selling solar panels, insulation, or central control units that track and manage a building’s electricity consumption.

One company is already trying to make such products cool. Nest Labs, a well funded start up founded by former Apple employees, have created a thermostat that studies your habits to help adjust the temperature to save energy.

Climate Change Conundrum

Climate change could exceed dangerous levels in some parts of the world during the lifetime of many people alive today, according to research papers published in the journal Nature.

University of Washington Professor of Philosophy Stephen Gardiner argued in Yale Environment 360 that humanity’s institutions aren’t up to the ethical challenge presented by environmental change. As these problems get worse, he argues, we might see apush for technological fixes such as geoengineering.

Some scientists are looking into such methods, and a U.K. group had planned a test flight of a balloon tethered to a hose—the kind that could shoot reflective aerosols into the atmosphere, scatter sunlight and potentially cool the planet. But that group postponed its test until spring to allow “more engagement with stakeholders”—which New Scientist argued is crucial.

Most of the public is not against such research on “solar radiation management” according to a new survey. But critics say the survey may be some biased toward geoengineering research.

Skeptic Changes Mind

A study led by a self-described climate change skeptic—physicist Richard Muller of the University of California, Berkeley—released results from a re-analysis of temperature records. The “biggest surprise,” Muller said, was how closely his study matched earlier assessments, such as those by NASA and the U.K.’s Hadley Centre. Muller’s study had been hailed by climate change skeptics since it took seriously many of their criticisms.

But in a Wall Street Journal op-ed, Muller said “global warming is real,” and argued no one should be a skeptic about this warming any longer.

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.