Climate Change News - April 22, 2013

EU Rejects Plan to Reduce Number of Carbon Permits in Short-term to Bolster Market

On April 16, the European Parliament rejected a measure to decrease the number of available carbon permits in European Union (EU) Emissions Trading System (ETS), by a vote of 334 to 315. The “backloading” plan would have reduced the number of permits available in the next three years to improve the near-term market, and then reintroduced the permits into the market at a later date. EU ETS permit prices dropped to 2.63 Euros ($3.47) per tonne of carbon dioxide after the vote was announced, which marks a significant decline from 2008 prices of 25 Euros. The vote would “make the EU ETS irrelevant as an emissions reduction tool for many years to come,” according to Stig Schjolset, head of EU carbon analysis at Thomson Reuters Point Carbon. European Commissioner for Climate Action Connie Hedegaard told lawmakers, “Europe needs a robust carbon market to meet our climate targets and spur innovation.” Hedegaard vowed to continue to push for ETS market reforms, stating, “We are preparing structural [longer-term reforms]. We will have new meetings for stakeholders, in parallel with an impact assessment. We are preparing an initiative.”

For additional information see: New York Times , Guardian , Washington Post

U.S. Agrees to Cooperate with China and Japan on Climate Change

On April 13, the U.S. Department of State announced that the United States and China agreed to take collective and cooperative action on climate change. The State Department stated, “The two countries took special note of the overwhelming scientific consensus about anthropogenic climate change and its worsening impacts, including the sharp rise in global average temperatures over the past century, the alarming acidification of our oceans, the rapid loss of Arctic sea ice, and the striking incidence of extreme weather events occurring all over the world.” The details of the agreement will be worked out in July, but the statement continues, “Both sides recognize that, given the latest scientific understanding of accelerating climate change and the urgent need to intensify global efforts to reduce greenhouse gas emissions, forceful, nationally appropriate action by the United States and China – including large-scale cooperative action – is more critical than ever. Such action is crucial both to contain climate change and to set the kind of powerful example that can inspire the world.”

For additional information see: State Dept. Statement – China , State Dept. Statement – Japan

EPA Delays Finalization of Carbon Regulations for New Power Plants

The Environmental Protection Agency (EPA) delayed finalization of the proposed carbon dioxide New Source Performance Standards (NSPS) for new power plants, missing the original April 13 deadline. EPA spokeswoman Alisha Johnson said, “We are working on the rule and no timetable has been set. We continue to review the more than 2.7 million comments we have received on the rule.” The proposed rule, released March 2012, states that new power plants cannot emit more than 1,000 pounds of carbon dioxide per megawatt-hour (lbs per MWh) of electricity. On average, natural gas plants emit roughly 800 lbs per MWh, while coal plants emit 1,768 lbs per MWh. The rule, which would essentially prevent new coal-fired plants from being built without carbon capture and storage technology, has come under attack from industry representatives. At least 10 states and cities along with the Environmental Defense Fund, Natural Resources Defense Council and the Sierra Club, have threatened to sue the EPA unless it finalizes the draft NSPS.

For additional information see: Washington Post , New York Times , Los Angeles Times

Rep. Ellison Introduces Financial Transaction Tax Legislation that Could Help Climate Action

On April 16, Rep. Keith Ellison (D-MN) reintroduced the Inclusive Prosperity Act (H.R. 1579). The legislation would introduce a financial transaction tax, or “Robin Hood tax,” that would levy a 0.5 percent sales tax on each trade of stock and lower percentages on bonds, derivatives and other financial interactions. The tax could raise up to $300 billion annually, some of which would be used to fund climate mitigation and adaptation, as well as Medicare, Social Security and public infrastructure and education programs. H.R. 1579 is co-sponsored by eight House Democrats, including, Rep. Donna Edwards (D-MD), Rep. Raul Grijalva (D-AZ) and Rep. Barbara Lee (D-CA). Many major economies, including China, Australia, Japan, South Korea, and 11 European Union nations have implemented or are planning to adopt a financial transaction tax.

For additional information see: Robin Hood Tax , Rep. Ellison Press Release , H.R.1579

Australia and China to Explore Linking Fledgling Carbon Trading Programs

Australia and China announced an agreement to begin a carbon trading partnership after Australian Prime Minister Julia Gillard visited Beijing the week of April 8th. Gillard told reporters, "We've committed ourselves to work together on the shared challenge of carbon pollution and climate change through a carbon-trading experts group.” The newly established group hopes to explore a possible integration of the nascent carbon markets in the two countries. During Gillard’s visit, officials also signed a $1.6 billion dollar deal between Hydro Tasmania and China’s Shenhua Group to work together in producing new wind farms in Australia.

For additional information see: Business Green , International Business Times , CleanBiz Asia

Micronesia, Morocco Seek Fast HFC Reductions to Slow Sea-Level Rise, Other Impacts

The Federated States of Micronesia and the Kingdom of Morocco on April 16 formally filed a proposal to use the Montreal Protocol treaty to phase down the use of hydrofluorocarbons (HFCs), super-greenhouse gases that have global warming potentials hundreds to thousands of times higher than carbon dioxide. The proposal came two days after research led by Dr. V. Ramanathan of the Scripps Institution of Oceanography concluded that the rate of global warming could be cut in half by 2050, and sea level rise could be reduced by a quarter by the end of the century, through reductions of HFCs and other short lived-climate pollutants, including methane, tropospheric ozone, and black carbon (see April 15 issue). The North American parties, including the United States, Canada and Mexico, filed a similar proposal. “Reducing HFCs is critical for slowing both temperature increase and sea-level rise,” said Micronesian Ambassador Asterio Takesy. “We are happy the U.S. shares our view on using the Montreal Protocol to reduce HFCs. As a native of the Pacific islands himself, we hope that President Obama will help us to seal an agreement on HFCs this year.”

For additional information see: IGSD Press Release , Micronesian Proposal , North American Proposal

Federally-Funded FutureGen CCS Project May Never Come to Fruition

On April 3, the Congressional Research Service (CRS) released a report stating that the carbon capture and storage (CCS) coal-fired power plant FutureGen may not succeed. The American Recovery and Reinvestment Act of 2009 (P.L. 111-5) provided a total of $1 billion for FutureGen through 2015. According to the CRS report, “Nearly ten years and two restructuring efforts since FutureGen’s inception, the project is still in its early development stages.” The report continues, “Regulations, tax credits, or policies such as carbon taxation or cap and trade that increase the price of electricity from conventional power plants may be necessary to make CCS technology competitive enough for private sector investment. Even then, industry may choose to forgo coal-fired plants for other sources of energy that emit less CO2, such as natural gas.” FutureGen CEO Kenneth Humphreys has stated that the project will be completed by its intended goal of 2017 using $300 million in non-governmental funding.

For additional information see: The Hill , CRS Report

IEA: Globally, Energy Produced Today “as Dirty as It Was 20 Years Ago”

A report released April 17 by the International Energy Agency (IEA) concludes that despite progress in some countries, globally, energy is as “dirty” as it was 20 years ago. Carbon intensity, a measure of the level of carbon dioxide (CO2) emitted for each unit of energy supplied, was at 2.39 tonnes of CO2 per tonnne of oil equivalent in 1990, while it measured 2.37 in 2010. The unchanged carbon intensity can largely be attributed to a spike in coal demand from emerging economies such as China and India. On the other hand, recent years have seen success for certain clean energy markets such as hybrid-electric vehicles, whose sales rose 43 percent in 2012, and solar photovoltaic systems, for which installations grew 42 percent in 2012. In the report, presented at the fourth meeting of the Clean Energy Ministerial group in New Delhi, the IEA states that a $5 trillion worldwide investment is needed by 2020 to switch to a clean energy economy. IEA Executive Director Maria van der Hoeven called the report “a wake-up call.” Relating the report to climate change, van der Hoeven said, “We cannot afford another 20 years of listlessness.”

For additional information see: Bloomberg

Starbucks, Nike, eBay, and 30 Other Business Leaders Urge Strong Action on Climate Change

Thirty-three major corporations, along with the sustainable business and investment advocacy group Ceres and the Business for Innovative Climate and Energy Policy (BICEP) coalition, sent a letter to the president and other policy makers, calling on them to take action on climate change. Anne Kelly, director of BICEP, stated, “The signers of the Climate Declaration have a clear message for Washington: Act on climate change. We are, and it’s good for our businesses. The cost of inaction is too high. Policymakers should see climate change policy for what it is: an economic opportunity.” The 33 companies that signed on to the letter – including IKEA, L’Oreal, EBay, Starbucks, Unilever, and Intel – collectively employ approximately 475,000 Americans and have annual revenue of approximately $450 billion.

For additional information see: Agence France-Presse , Ceres Press Release

UNEP Group Ranks Climate Change as Top Market Externality

According to a study released April 15 by The Economics of Environment and Biodiversity for the Business Council (TEEB) – a United Nations Environmental Programme (UNEP) group that brings together economic, policy and scientific experts – business activities in sectors such as forestry, agriculture, fishing, mining, oil and gas extraction and electricity generation annually account for $7.3 trillion in uncompensated environmental and public health external costs. The study, “Natural Capital at Risk – The Top 100 Externalities of Business,” concludes that the majority of the costs (38 percent) are attributable to global climate change, followed by water use (25 percent), land use (24 percent) and air pollution (7 percent). In relation to the report, UNEP Executive Director Achim Steiner said, “Forward-looking companies are already recognizing that the key to competitiveness in an increasingly resource-constrained world will hinge in large part on escalating natural resource efficiencies and cutting pollution footprints.”

For additional information see: UN Press Release , Report

EPA Reports U.S. GHG Emissions Dropped 1.6 Percent in 2011

The Environmental Protection Agency released the agency’s 18th annual report of U.S. greenhouse gas (GHG) emissions on April 15. The report finds that U.S. emissions decreased 1.6 percent from 2010 to 2011, and since 2005, emissions decreased by a total of 6.9 percent. The EPA stated the drop from 2010 to 2011 was due in part to many power plants switching from coal-fired production to natural gas, and a relatively mild winter in the south Atlantic region. Power plants are the single largest source of GHG emissions and account for 33 percent of all emissions. In addition, improved fuel economy standards are credited with helping reduce the overall emissions.

For additional information see: Los Angeles Times , EPA Press Release

Antarctic Ice Melting Faster than Any Time in Past 1,000 Years

New research published April 14 in the journal Nature Geoscience reveals that summer ice in the Antarctic Peninsula is melting faster than at any point in the past millennium. The report uses data collected from a 364-meter (400-yard) ice core that contains a historical record of melting and freezing over the past thousand years. While temperatures have risen steadily by 1.6 degrees Celsius (2.9 degrees Fahrenheit) over the past 600 years, the rate of melting over the past 50 years has accelerated. Lead author Dr. Nerilie Abram, research fellow at the Australian National University, said, "Summer melting at the ice core site today is now at a level that is higher than at any other time over the last 1,000 years. And while temperatures at this site increased gradually in phases over many hundreds of years, most of the intensification of melting has happened since the mid-20th century."

For additional information see: Guardian , Reuters , Study

Arctic Could Be Nearly Ice-Free in the Summer by 2050

According to a study published in Geophysical Research Letters, while most previous research suggests that the Arctic will have ice-free summers in 2070 or later, the Arctic sea ice is melting significantly faster than most current climate models predict. The National Oceanic and Atmospheric Administration (NOAA) researchers used updated data on ice melt and climate factors to run three different climate models. All of the models suggested that there would be major Arctic ice loss in the first half of this century, and two of the models predicted that it is likely to occur within the next two decades. Lead-author James Overland, research oceanographer at NOAA’s Pacific Marine Environmental Laboratory, explained, “Rapid Arctic sea ice loss is probably the most visible indicator of global climate change; it leads to shifts in ecosystems and economic access, and potentially impacts weather throughout the northern hemisphere. Increased physical understanding of rapid Arctic climate shifts and improved models are needed that give a more detailed picture and timing of what to expect so we can better prepare and adapt to such changes. Early loss of Arctic sea ice gives immediacy to the issue of climate change.”

For additional information see: Bloomberg , NOAA , Study

Climate Policy Initiative Finds that U.S. Has “Messy But Useful” Climate Policy Framework

A new report released April 15, by the Climate Policy Initiative (CPI) concludes that the United States has made headway on climate change mitigation through public policy, albeit in a complicated manner. “There's a lot of angst or worry that we're not doing anything,” said David Nelson, senior director of CPI and author of the report. “But quite clearly what we're doing has managed to stop the growth of emissions in a number of sectors.” Most policy reforms have taken place at the state level, with most policies taking the form of tax credits for clean energy sources, local anti-pollution laws, federal automobile fuel efficiency standards, and the promotion of more energy efficient technologies. The lack of comprehensive federal policies has created a fragmented or “messy” pool of climate change mitigation strategies. “The fact that we've had different goals is both good and bad – it's bad because there have been missed opportunities in some states, but it's good from the perspective that we have some leading states – California and New Jersey come to mind – that are providing examples others can learn from,” said Nelson. The report also analyzes the climate policy structure in several other countries, including China and the European Union.

For additional information see: U.S. News , USNewswire , Report

Experts Flock to Dublin to Discuss Climate Change and Food Security

Experts gathered in Dublin, Ireland April 11-16 at the First Food Security Futures Conference and the Conference on hunger, nutrition, and climate justice, both organized by the United Nations World Food Programme, to discuss the future of food security and what world leaders could expect by 2050. Researchers agreed that food insecurity in Africa and Asia would be exacerbated by a warming climate, and that by 2050, Africa could possibly turn into a permanent food insecurity zone. Frank Rijsberman, CEO of the Consortium of International Agricultural Research Centers, who helped sponsor one of the conferences, said “Food production will have to rise 60 percent by 2050 just to keep pace with expected global population increase and changing demand. Climate change comes on top of that. The annual production gains we have come to expect . . . will be taken away by climate change. We are not so worried about the total amount of food produced so much as the vulnerability of the one billion people who are without food already and who will be hit hardest by climate change. They have no capacity to adapt.”

For additional information see: Guardian , First Food Security Futures Conference , Conference: Hunger: nutrition: climate justice

Wednesday, April 24: Fuel Cell and Hydrogen EXPO and POLICY FORUM

Heather Zichal, Deputy Assistant to the President for Energy and Climate Change, will be speaking at the Fuel Cell and Hydrogen Expo Wednesday, April 24, along with Sunita Satyapal, the Department of Energy’s Hydrogen and Fuel Cell Technology Program Manager. Hosted by the House Hydrogen and Fuel Cell Caucus, the event will feature several exhibitors as well as a panel that will discuss fuel cell and hydrogen activities around the country. Lunch will be provided at noon and snacks during the afternoon panel. Wednesday, April 24, from 10:00 AM – 3:30 PM in Caucus Room 345 of the Cannon House Office Building. The event is free and open to the public.

Friday, April 26: Harnessing Landfill Methane to Benefit Local Economies and the Environment

The Environmental and Energy Study Institute (EESI) invites you to a briefing on the benefits of capturing and harnessing methane emissions from municipal solid waste landfills. Landfills are the third largest source of anthropogenic methane gas produced in the United States; between 1990 and 2011, landfill gas composed 17.7 percent of all U.S. methane emissions. The briefing will discuss the economic, health, and climate benefits of tapping the energy potential of the nation’s landfills. Speakers include: Congressman Scott Peters (D-CA); Dr. V. Ramanathan, Distinguished Professor of Atmospheric and Climate Sciences, Scripps Institution of Oceanography, University of California at San Diego; and Daniel S. LeFevers, Vice President, Federal Public Affairs, Waste Management. The briefing will be held Friday, April 26th, from 10:30 – 11:30 a.m. in 2325 Rayburn House Office Building. The event is free and open to the public.