Climate Change News - December 9, 2013

Head of White House Council on Environmental Quality to Resign

On December 3, White House Council on Environmental Quality (CEQ) Chair Nancy Sutley announced her intention to step down in February. During her five-year tenure, Sutley helped create landmark policies such as the Climate Action Plan, new fuel economy standards, new national monuments, and the establishment of the first comprehensive National Ocean Policy. Former Environmental Protection Agency Administrator Carol Browner said that Sutley was “the force” behind successful federal government initiatives which reduced its greenhouse gas emissions by over 15 percent. Nancy Sutley’s resignation comes one month after that of White House chief energy and climate adviser Heather Zichal’s (see November issue). The White House has not yet announced Sutley’s replacement to head the CEQ, which coordinates environmental policy among federal agencies. President Obama commented, “Under her leadership, federal agencies are meeting the goals I set for them at the beginning of the administration by using less energy, reducing pollution, and saving taxpayer dollars. Her efforts have made it clear that a healthy environment and a strong economy aren’t mutually exclusive.”

For additional information see: The Hill , National Journal

Obama Directs Federal Agencies to Nearly Triple Renewable Energy Use

On December 5, the White House released a presidential memorandum establishing a new target to nearly triple Federal use of renewable energy by 2020. The White House commented that the decision will support a national clean energy economy, bolster energy security, mitigate climate change, and benefit taxpayers. The memorandum ordered 20 percent of total energy consumed by each agency to be renewably sourced by fiscal year 2020. The memorandum outlines steps to gradually improve from the federal government’s current goal of a 7.5 percent level of renewable energy use, by aiming to use 10 percent by 2015, 15 percent by 2017 and 17.5 percent by 2019. The document identified top priorities for achieving the target, including installing on-site renewable energy facilities and obtaining renewable energy certificates. The administration also encourages updating building performance and energy management practices by using the Green Button data access system and Environmental Protection Agency’s Energy Star Portfolio Manager. President Obama noted in the memorandum that during his administration federal agencies have already reduced their greenhouse gas emissions by 15 percent, stating, “the Federal Government must lead by example.”

For additional information see: The Huffington Post , The White House

White House Office Releases EPA 2014 Regulatory Agenda

On November 26, the White House Office of Management and Budget released its annual Unified Agenda for 2014, which covers the priorities of dozens of federal agencies. The EPA’s 2014 agenda consists of many long-standing agency priorities, such as addressing climate change; improving air quality; protecting water; improving chemical safety; and continuing to build partnerships with states, regions, and tribes. The agency verified its intent to issue new source performance standards for carbon dioxide (CO2) emissions from existing power plants in September and to finalize the renewable fuel standard (RFS) by February. In addition, the EPA gave advanced notice of a proposed rulemaking in August regarding the disclosure of chemicals used in hydraulic fracturing. The agency plans to update administrative practices in order to better comply with the Freedom of Information Act and the Open Government Act, and to revisit EPA authority over small waterways under the Clean Water Act. Missing from the agenda was any notice regarding the final rule on coal combustion residuals (coal ash), despite the fact that on October 29 a federal judge gave the agency 60 days to announce a timeline for the completion of the regulation.

For additional information see: Bloomberg BNA , The Hill

White House Releases Data Behind Social Cost of Carbon

On November 26, the White House Office of Management and Budget (OMB) published the Technical Support Document for Social Cost of Carbon (SCC) on Federal Register, and requested public comment on the document. SCC is a monetary estimate of social damages associated with increased carbon emissions. In May, the White House increased the SCC from about $21 per metric ton to $35, which will increase the expected net benefits of regulations to limit carbon emissions. That revision drew criticism for being developed without "proper oversight" and public input. The newly released document fills that gap, and explains the calculation of SCC using three underlying integrated assessment models (IAMs). The document includes an updated SCC value that takes into account minor technical corrections to the May estimate. "Rigorous evaluation of costs and benefits is a core tenet of the rulemaking process. It is particularly important in the area of climate change," said the OMB in a notice. According to the notice, the officials are especially interested in comments on the selection and synthesis of the three IAMs used for SCC calculation, the way SCC is used in "regulatory impact analyses" and the strengths and limitations of the approach. The public comment period on the document will last for 60 days till January 27, 2014.

For additional information see: The Hill , Federal Register Notice

National Research Council Report Calls for Abrupt Change Early Warning System

On December 3, the National Research Council (NRC), a research arm of the National Academies of Science, released a report asserting that greenhouse gases (GHG) levels will soon reach various "tipping points" that will result in sudden changes to various systems, including sea ice and ecosystems. The authors explain that the physical climate in a region can drastically shift over a decade or a few years, potentially triggering other abrupt changes in physical, natural and human systems. The report recommends the development of an "Abrupt Change Early Warning System," which would function to identify areas vulnerable to abrupt shifts in climate through improved climate monitoring and analysis. Dr. James White, chair of the NRC report and professor of geological sciences at the University of Colorado at Boulder, stated that these tipping points are currently unknown, but "with better information, we will be able to anticipate some major changes before they occur and help reduce the potential consequences." Changes which are already occurring due to elevated levels of GHG include the melting of late-summer Arctic sea ice with accompanying impacts on Arctic shipping and ecosystems, and increasing species extinction. The report warns that "to willfully ignore the threat of abrupt change could lead to more costs, loss of life, suffering and environmental degradation." The work was sponsored by the National Oceanic and Atmospheric Administration, National Science Foundation, U.S. intelligence community, and the National Academies.

For additional information see: The Hill , Politico , The LA Times

U.N. Green Climate Fund Open, Despite Lack of Funding

On December 4, the U.N. Green Climate Fund (GCF) was opened in Songdo, South Korea. The GCF, touted as the world’s first low-carbon bank, was established to allow developing countries access to clean-energy financing. The fund will begin receiving capital from governments and private organizations in August 2014. According to Torben Moger Pendersen, Chief Executive Officer of PensionDenmark, a Danish retirement fund, the GCF could be a good partner for pension funds, especially if it reduces pension fund exposure to government bonds. Globally, government bond yields have been weak in the past five years, and Pendersen said, “we would be interested in finding investments in high-growth economies in the developing world.” Confusion over the GCF business model and lack of funding were a theme at the recent COP-19 meetings in Warsaw. Pleas for significant funding for the GCF came from developing nations during the meeting; in 2010, developed nations committed to raising $100 billion per year for the GCF by 2020, but to date, investments have hovered around $10 billion per year.

For additional information see: Bloomberg , Huffington Post , Responding to Climate Change

Six African Countries Awarded $330 Million to Invest in Climate Solutions

The African Development Bank (AfDB) and the Climate Investment Funds (CIF) awarded six African countries $330 million in funding for projects that boost private investment in renewable energy, energy efficiency, and sustainable forests. The funds will help climate-improving projects be competitive against fossil fuels by offering private investors loans, guarantees, or equity to mediate the increased financial risk of investing in a developing country’s renewable energy resources. To select the projects that would receive funding, CIF ran a competition which asked African countries to propose climate-action projects that could be financed through either public-private partnerships or the private-sector arms of the various multilateral development banks. Fifteen winning projects were selected from six countries: Ghana, Burkina Faso, the Democratic Republic of Congo, Kenya, Mali, and Mozambique. Mali’s award is $40 million in funding for three projects that will create a solar photovoltaic grid, subsidize investment in solar energy and biofuels, and support the construction and operation of mini and micro hydro power plants. Similar projects will be funded in the other five countries, with the aim of reducing dependence on imported fossil fuels by investing in alternative energy sources or taking action on some aspect of climate change.

For additional information see: Think Progress , Complete list of the winning projects

Report Reveals 29 Major Companies Using Price on Carbon

On December 5, a new report by data company CDP, formerly known as the Carbon Disclosure Project, revealed that 27 major companies in the United States and two in London have included an internal price on carbon pollution in their long-term financial plans. The companies, which include ExxonMobil, BP, Walmart, Xcel Energy, Walt Disney and Google, have carbon pricing ranges from $6 to $60 dollars per metric ton. The White House has its own “social cost of carbon” that places the price at about $37 dollars per ton (see November 11 issue). Tom Carnac, the North American President of CDP, commented that the five large oil companies, ExxonMobil, BP, Chevron, ConocoPhillips and Shell, seem to have concluded that a carbon price is inevitable. Xcel Energy’s director for environmental and public policy Jack Ihle stated that “in the long-term, we think that either EPA or Congress will likely impose some form of market-based carbon policy on electric generating units.”

For additional information see: The New York Times , Press Release , Report

Bloomberg Reveals New Tool to Assess Financial Risks of Climate Policy

On November 26, Bloomberg L.P. announced a new investment tool that will assess the impact of climate risk on the valuation of oil, coal and natural gas companies and stock. The "Carbon Risk Valuation Tool" was developed in response to the potential risk that future falling oil demand, rising production costs of oil, and carbon emissions regulations may render large fossil fuel reserves "unburnable." Recent studies have concluded that carbon emissions need to be curbed in order to keep global warming in the safe range below 2 degrees Celsius; burning current fossil fuel reserves would likely push global temperatures beyond that point (see September 2013 article). Oil and gas reserves underpin the share prices and projected future earnings of fossil fuel companies, so if future reserves are forced to remain in the ground, their share value will be permanently erased. Bloomberg's valuation tool is currently available to 300,000 traders and analysts. The tool can be manipulated to measure the risk involved in investing in a single company or group of companies, by calculating potential oil, coal and natural gas prices and weighing them against the company's performance and quantity of fuel reserves. According to Curtis Ravenel, Bloomberg's global head of sustainability projects, the tool is in its nascent phase, commenting "this is not something that I would use to make investment decisions . . . It's something to start the conversation among the mainstream [financial] community."

For additional information see: Business Green , Bloomberg Tool

Study Shows Global Warming Continuing Even If Carbon Emissions Stop

On November 24, a new study published in journal Nature Climate Change reported that existing greenhouse gases (GHG) in the atmosphere would continue to warm the earth for hundreds of years, even if emissions came to a sudden stop. The Princeton-led study simulated a planet where GHG emissions suddenly ceased after reaching 1,800 billion tons, four times pre-industrial levels. The model predicted that after an initial century-long cooling stretch, the planet would begin a warming period, with a total temperature increase of 0.37 degrees Celsius (0.66 Fahrenheit) within 400 years of the emissions shutdown. “This is illustrative of how difficult it may be to reverse climate change - we stop the emissions, but still get an increase in global mean temperature,” commented lead author Thomas Frolicher, a researcher at ETH-Zurich. The results reveal that the amount of carbon emissions which can be released while keeping global warming below two degrees Celsius would be three-quarters less than previous estimates, or 750 billion tons of carbon instead of 1,000 billion tons. This means that limiting global warming to two degrees would require keeping future total carbon emissions to below 250 billion tons. So far, global emissions have totaled 500 billion tons. Many similar studies suggest that after emissions stop, global temperature would remain constant or decline. Researchers said the reason for this contradiction was that previous models did not account for the declining ability of oceans, especially in polar regions, to remove surplus heat from the atmosphere.

For additional information see: Natural World News , Princeton , Study

Current Climate Goal Will Not Avoid Catastrophic Damages from Global Warming

On December 3, research was published in the journal Plos One finding that the most dangerous effects of climate change will be felt much sooner than the accepted international target of 2 degrees Celsius (2C) warming. The researchers found that the Intergovernmental Panel on Climate Change’s (IPCC) emissions target is nearly double the threshold that would cause catastrophic damage, such as further sea level rise, ocean acidification, arctic ice melt and extreme weather. To address current shortcomings in climate change mitigation, the authors advocate for an immediate cut of 6 percent in global emissions, large reforestation projects, implementation of a carbon tax and expansion of nuclear power. While the report notes that these actions would be "exceedingly difficult," it also warns that if no action is taken until 2020, when new U.N. emissions targets are planned to come into effect, emissions reductions would have to be in excess of 15 percent. Eighteen climate scientists analyzed global carbon cycle and temperature data in order to define a target of 1 degree Celsius warming to avoid further impacts of climate change. Lead author Dr. James Hansen, former chair of the NASA Goddard Institute for Space Studies and current adjunct professor in the Earth and Environmental Sciences Department at Columbia University, commented "the case we make for 2C itself is a very dangerous target to be aiming for . . . Society should reassess what are dangerous levels, given the impacts we have already seen."

For additional information see: The Guardian , Climate Central , Reuters , Study