Climate Change News - September 18, 2009

Senate Democrats May Delay Climate Legislation

On September 15, Senate Majority Leader Harry Reid (D-NV) announced that Senate Democrats may wait until 2010 to take up climate change legislation because of the competing priorities of health care and financial regulatory reform. Reid said, “We are going to have a busy, busy time the rest of this year, and, of course, nothing terminates at the end of this year. We still have next year to complete things if we have to.” President Obama has stated that he wants the Senate to pass a climate change bill this year because the United Nations Framework Convention on Climate Change is convening in Copenhagen in December. Jim Manley, Reid’s spokesman, later insisted that “no decisions have been made” regarding the timing of a Senate climate change bill. He added, “We still intend to deal with health care, financial regulatory reform and cap and trade this year.”

For additional information see: New York Times , The Guardian , Wall Street Journal , AP

CBO: House-Passed Climate Bill to Reduce GDP by 1-3.5 Percent

On September 17, the Congressional Budget Office (CBO) released a new analysis of The American Clean Energy and Security Act (H.R. 2454) as passed in June by the U.S. House of Representatives. The CBO forecasted that the cap and trade provisions of the bill would reduce U.S. gross domestic product (GDP) by 1-3.5 percent in 2050 if implemented. “By way of comparison, CBO projects the real inflation-adjusted GDP will be roughly two and a half times as large in 2050 as it today, so those changes would be comparatively modest,” the report said. In a posting on its website, the CBO concluded, "Reducing the risk of climate change would come at some cost to the economy."

For additional information see: Reuters , Congressional Budget Office

Stern: Rich Nations Should Spend 2 Percent of GDP on Climate Mitigation, Cheaper than Inaction

On September 11, Lord Nicholas Stern, economist and former Director of the United Kingdom’s Office of Climate Change, declared in a speech at People’s University in Beijing that, to prevent climate change, developed nations will need to reconsider their emphasis on economic growth. Stern said the priority of developed nations must be to prevent climate change. “At some point we would have to think about whether we want future growth,” he cautioned. Stern now believes that governments should spend 2 percent of global gross domestic production, up from 1 percent, on climate change mitigation because the pace of climate change has accelerated since the Stern Review was released in 2006. “Emissions were higher than forecast. Also the ability of the planet, particularly the ocean, to absorb carbon was less than we assumed. The effects of climate change were also coming faster ... so I argued more should be done," he said. "But even at 2% of GDP, it would still be way way below the cost of inaction."

For additional information see: The Guardian

White House Releases Details of Vehicle Emissions Rules

On September 15, the Department of Transportation (DOT) and the Environmental Protection Agency (EPA) released the details of President Obama’s new automobile fuel economy standards and the first national automobile CO2 emission standard. The new standards would increase the corporate average fuel economy (CAFE) to a fleet-wide average of 35.5 miles per gallon and limit vehicular CO2 emissions to 250 grams per mile by 2016. The EPA said the new standards would reduce vehicular oil consumption by 1.8 billion barrels and prevent the emission of 950 million metric tons of CO2. According to a DOT analysis, the new rules will cost up to $1,100 per vehicle in 2016 while saving approximately $3,000 in fuel costs over the lifetime of the vehicle. “This marks a significant advance in our effort to protect health and the environment,” said EPA Administrator Lisa Jackson. Transportation Secretary Ray LaHood said, “The increases in fuel economy and the reductions in greenhouse gases we are proposing today would bring about a new era in automotive history. These proposed standards would help consumers save money at the gas pump, help the environment and decrease our dependence on oil -- all while ensuring that consumers still have a full range of vehicle choices.”

For additional information see: New York Times , Detroit Free Press , Wall Street Journal

Interior Dept. Launches Climate Change Response Strategy

On September 14, the Department of Interior (DOI) launched its first comprehensive strategy to address the impacts of climate change on public lands. Secretary of the Interior Ken Salazar signed Secretarial Order 3289 which established a federal Climate Change Response Council (CCRC), 8 regional CCRC’s, and a network of Landscape Conservation Cooperatives. The CCRC will coordinate the DOI’s overall response to climate change. The regional CCRC’s will develop location-specific resource management strategies for pubic lands that take into account the impacts of climate change. The Landscape Conservation Cooperatives will work with other stakeholders to extend the DOI’s new strategy beyond the borders of national parks. Said Salazar, “Because Interior manages one-fifth of our nation’s landmass and 1.7 billion acres on the Outer Continental Shelf, it is imperative that we tackle these impacts of a failed and outdated energy policy. This secretarial order is another milestone in our continuing effort to change how Interior does business to respond to the energy and climate challenges of our time.”

For additional information see: Reuters , AP , Department of the Interior , Washington Post

Carbon Price Drops in Fifth Northeastern Cap and Trade Auction

On September 11, the administrators of the Regional Greenhouse Gas Initiative (RGGI), a regional greenhouse gas emission cap-and-trade program for 10 northeastern and mid-Atlantic states, announced that the price of emissions allowances fell from $3.23 per ton of CO2 equivalent in June to $2.19 in September, a drop of over 30 percent. Prices for emission allowances have now fallen in three straight auctions. Analysts from Point Carbon, a consultancy, believe prices have declined because the recession has reduced demand for electricity, low natural gas prices are encouraging utilities to transition away from coal, and the RGGI states initially allocated more emission allowances than were necessary. “The implication of this forecast is that prices in RGGI are likely to remain low, as the market should be able to settle each year's compliance without undertaking carbon price driven abatement,” Point Carbon analysts said in a recent note. “We expect prices to fall closer to or at the reserve price in the short to medium term.”

For additional information see: New York Times , AP , Reuters

Finance Groups Demand Tough Climate Targets

On September 16, banks, pension funds and other investment groups holding over $13 trillion of assets called for a strong global agreement on climate change at the United Nations Framework Convention on Climate Change in Copenhagen in December to encourage investment in a low carbon economy. Over 180 investor groups lobbied for a 50-85 percent reduction in global greenhouse gas emissions by 2050 with developed nations cutting emissions more then developing ones. “Without the policies to encourage clean energy, investors are stuck at the starting gates," said Mindy Lubber, president of Ceres, a Boston-based coalition of investors and environmentalists.

For additional information see: Reuters , Financial Times

Report Measures Competitiveness of G20 Nations in a Carbon-Constrained World

On September 13, E3G, a London think tank, released a report titled “G20 Low Carbon Competitiveness,” which measured how competitive the economies of G20 nations would be in a carbon-constrained world. France, Britain, and Japan ranked at the top of the G20 nations. The United States ranked tenth. The report concluded, “Countries that adapt quickly to a carbon-constrained world will be better able to deliver lasting prosperity for their citizens.” E3G Chief Executive Nick Mabey said, “There is a growing global consensus that our best path toward strong economic recovery is through transitioning to a less vulnerable, low carbon economy.” Only Mexico and Argentina have enacted energy and climate policies ambitious enough to keep emissions at a level on par with the targeted warming peak of 2°C.

For additional information see: Financial Times , Reuters , The Age

U.S. Assumes Leadership Role in International Climate Talks

On September 17, a week of climate talks aiming to bridge differences among the world's biggest carbon polluters began in Washington, DC. Representatives from the European Union, France, Italy, Germany, Britain, Australia, Brazil, Canada, China, India, Indonesia, Japan, South Korea, Mexico, Russia and South Africa, attended the State Department talks, hosted by the United States. The participants belong to the Major Economies Forum on Energy and Climate, an initiative launched in March by President Obama. An anonymous State Department official said the meeting will seek to "deepen the candid dialogue among major developed and developing economies in an effort to help generate the political leadership necessary to achieve a successful outcome at the December UN climate change conference in Copenhagen."

For additional information see: AFP

UN Leader Expresses Concern Over Pace of Climate Negotiations

Negotiations for an international climate change agreement at the United Nations Framework Convention on Climate Change in Copenhagen this December are proceeding slowly. Serious differences have emerged between Europe and the United States over the structure of the new treaty. European diplomats hope to use the framework established by the Kyoto Protocol, while U.S. diplomats want to create an entirely new approach. Nigel Purvis, a member of the U.S. Kyoto Protocol negotiating team, said, “It's not welcome news in Europe but the Kyoto architecture shouldn't have any presumed status. Many decisions were taken when the United States was not at the negotiating table.” The slow progress is troubling United Nations General Secretary Ban Ki-Moon. “We are deeply concerned that the negotiation is not making much headway. It is absolutely and crucially important for the leaders to demonstrate their political will, leadership, and to give clear political guidelines to the negotiators. They should be responsible for the future of this entire humanity,” he said.

For additional information see: The Guardian , The Telegraph , The Guardian

U.S. Warns China and India over Emissions; India to Set Cap

On September 16, Todd Stern, U.S. special envoy for climate change, warned developing countries that they may face protectionist measures if they do not cooperate at negotiations to produce a global agreement to curb greenhouse gas (GHG) emissions at the United Nations Framework Convention on Climate Change in Copenhagen in December. Speaking about pressure to include protectionist measures in U.S. climate change legislation, Stern said, “The more there is a sense that the big countries are recalcitrant or unwilling to step up then the greater the pressure in Congress is going to be.” Stern stressed the importance of U.S. co-operation with China, now the world's biggest carbon emitter, "not just to reach agreement in Copenhagen but actually to solve the problem."

For additional information see: Financial Times , The Times

North America Supports Cuts in Climate-Warming HFCs via Montreal Protocol

On September 15, the Obama administration announced that the United States, Canada, and Mexico support using the Montreal Protocol to require cuts in hydrofluorocarbons (HFCs). The Montreal Protocol is an international treaty signed in 1987 by 196 nations that regulates emissions of ozone depleting substances. The Montreal Protocol currently encourages the use of HFCs as less damaging substitutes for ozone destroying chlorofluorocarbons (CFCs). HFCs and CFCs are also powerful greenhouse gases that contribute to climate change. In April, Micronesia and Mauritius proposed a new amendment to the Montreal Protocol that would phase out the use of HFCs because of their impact on the climate. North American governments are now backing this amendment. The U.S. State Department called the amendment “a significant down payment” on efforts to produce a new international climate change agreement at the United Nations Framework Convention on Climate Change in Copenhagen this December.

For additional information see: AP

Warming May Cut GDP of Nations at High Risk by a Fifth

On September 14, a new report, “Shaping Climate-Resilient Development,” issued by the United Nations sponsored Economics of Climate Adaptation Working Group, found that climate change could cut the gross domestic product (GDP) of nations at high risk from extreme weather events by 20 percent by 2030. The report attempted to evaluate the cost of climate change and possible adaptation measures. David Bresch, one of the authors, said, “This is the first study that really thrashes out the adaptation policies and puts a price on them.” The study found that both developed and developing nations face economy-damaging climate change. In the United States, Florida could lose 10 percent of GDP per year because of hurricanes. The study concluded that adaption measures were desirable due to the high cost of inaction. “Easily identifiable and cost-effective measures -- such as improved drainage, sea barriers and improved building regulations, among many others -- could reduce potential economic losses from climate change for all regions,” a statement accompanying the report said.

For additional information see: Reuters , Swiss Re

World Bank Urges Rich Nations to Act Now on Climate

On September 15, the World Bank released its biennial global economic assessment, "World Development Report 2010," which this year focused exclusively on climate change. The report found that developed nations are responsible for over two-thirds of greenhouse gas (GHG) emissions, but developing nations will bear 75-80 percent of the cost of climate change. Developing nations in South Asia and Africa could lose 4-5 percent of their gross domestic product if temperatures rise by more than 2°C, compared to minimal losses for developed nations. The report concluded that financial assistance from developed nations would provide the fairest and most cost-effective way to reduce the impacts of climate change, but it will not be cheap: developing countries will need $75 billion per year for climate change adaptation and over $500 billion annually to develop sustainable economies by 2030. “Unless developing countries also start transforming their energy system as they grow, limiting warming to close to 2°C above the pre-industrial levels will not be achievable,” the report warned.

Rosina Bierbaum, who co-directed the report, added, “We can't afford not to address it. But it absolutely will not be cheap and it will not be easy.” The report called on developed nations to take action and concluded, “Left unmanaged, climate change will reverse development progress and compromise the well-being of current and future generations. That is why decisive, immediate action is needed.”

(Rosina Bierbaum serves on EESI's Board of Directors.)

For additional information see: New York Times , Reuters , AFP , Sydney Morning Herald

Australia Overtakes United States With Highest Per Capita CO2 Emissions

On September 11, a new report issued by Maplecroft, a British risk analysis consultancy, found that Australia has surpassed the United States as the nation with the highest per capita CO2 emissions. Australia’s per capita emissions are now 20.58 tons of CO2 per year, compared to 19.78 for the United States. This new finding comes only weeks after Prime Minister Kevin Rudd’s plan to create an Australian cap and trade program for greenhouse gas (GHG) emissions was defeated in Parliament. Tony Mohr, of the Australian Conservation Foundation, said the ranking will harm Australia’s image in the business world because “Most businesses in Australia already understand that it's a matter of when, not what if we have a price on greenhouse pollution.” Professor Barry Brook of Australia’s Adelaide University and the Minerals Council of Australia stressed that a global agreement to cut GHG emissions is more important than an individual country’s performance. “Ultimately what matters,” said Brooke, “is the total global carbon budget. And unless humanity as a whole can find solutions to that problem then all of that petty bickering amongst nations about who's more or less responsible isn't really going to be very helpful.”

For additional information see: AFP , UPI , Australian Broadcasting Corporation

Kyoto Offset Program Called into Question as UN Suspends Clean-Energy Auditor

On September 15, a report released by the National Commission on Energy Policy (NCEP), a panel of experts drawn from both major U.S. political parties, said the Kyoto Protocol’s greenhouse gas (GHG) emission offset program may not be effective. The NCEP said the offset program “has drawn considerable criticism,” citing studies that found “a significant percentage of the reductions claimed is debatable.” Under the Kyoto Protocol, credits for emissions reductions achieved in emerging countries that are certified and approved by auditors can be used by factories and power stations in the European Union–the biggest carbon market–as an alternative to the permits distributed by governments. “By far the most common critique is that many claimed reductions would have occurred anyway,” the report said.

For additional information see: The Times , Bloomberg , Reuters

Summer Ocean Surface Temperatures Highest on Record

On September 16, the National Ocean and Atmospheric Administration (NOAA) reported that the world’s ocean surface temperature in August was the warmest on record. The ocean’s global average temperature was 62.4°F, or 1.03°F higher than the 20th century average of 61.4°F. NOAA’s records date back to 1880. While the agency did not specify climate change as the reason for the temperature increase, numerous reports, including the Intergovernmental Panel on Climate Change’s Fourth Assessment, have predicted that climate change would lead to rises in ocean temperatures.

For additional information see: National Ocean and Atmospheric Administration , Bloomberg

Doctors Cite Public Health Threat, Urge Climate Action

On September 16, doctors from 18 medical organizations worldwide published letters in two British medical journals calling for world leaders to take decisive action against climate change at the United Nations Framework Convention on Climate Change in Copenhagen in December. “There is a real danger that politicians will be indecisive,” wrote the doctors. “We call on doctors to demand that their politicians listen to the clear facts that have been identified in relation to climate change and act now…Should their response be weak the results for international health could be catastrophic.” The letter also cited the co-benefits for public health of reducing carbon emissions. “A low-carbon economy will mean less pollution. A low carbon-diet (especially eating less meat) and more exercise will mean less cancer, obesity, diabetes, and heart disease,” it said. Signors included the American College of Physicians and Britain’s Royal College of Physicians.

For additional information see: AP , AFP

Carbon Emissions from Alberta Oil Sands Higher than Some Countries'

On September 14, Greenpeace released a new report called “Dirty Oil: How the Tar Sands are Fueling the Global Climate Crisis,” which found that greenhouse gas (GHG) emissions from tar sands (also known as oil sands) in Alberta, Canada could triple by 2020. Currently, the production of 1.3 million barrels of oil per day from the oil sands releases over 36 megatons of CO2 each year. If production growth continues unabated, annual emissions will be 127-140 megatons of CO2 in 2020. “The emissions are bigger than Estonia and Lithuania right now, and in 2020 will be larger than countries like Belgium, Austria, Ireland and Denmark,” said author Andrew Nikiforuk. “Nobody in Canada wants to talk about the scale issues.” The report was released just before President Obama’s September 16 meeting with Canadian Prime Minister Harper, at which the oil sands issue was discussed.

For additional information see: The Canadian Press , The Globe and Mail , Greenpeace

September 22: Energy Independence: A State and Local Perspective

The Embassy of the Federal Republic of Germany and the John Hopkins University Government Program invite you to a panel discussion on state and local efforts to increase energy independence, boost energy efficiency, and invest in renewable energy as part of the Transatlantic Climate Bridge Initiative. U.S. and German practitioners and local policymakers will talk about the incentives for communities and states to engage in their own local energy planning, and report on best practice examples with a transatlantic perspective. The event will take place on Tuesday, September 22 from 8:30-10:30 a.m. at 1717 Massachusetts Ave, NW. The room number will be posted in the lobby. This event is free and open to the public, but RSVP is required by September 18 at http://advanced.jhu.edu/rsvp/index.cfm?ContentID=1630. For more information, contact Anja Kuppers at (202) 298-4381 or [email protected].

September 25: States in the Lead

The Georgetown State-Federal Climate Resource Center and UCLA’s Emmett Center on Climate Change and the Environment invite you to a day of workshops that will bring together state and local leaders from across the country to share their experiences in reducing energy demand and greenhouse gas emissions. The event will be held on Friday, September 25, with a morning session at 562 Dirksen Senate Office Building and an afternoon session at the Georgetown Law Center. Please RSVP to Tsinu Tesfaye at (202) 661-6566 or [email protected].