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.
The Nicholas Institute for Environmental Policy Solutions at Duke University
A group of 285 large investors, representing more than $20 trillion in assets, urged world governments to forge a binding treaty at upcoming climate negotiations in Durban, South Africa, and said global spending has not been nearly enough to keep warming below 2 degrees Celsius.
The call came from a coalition of four green investment groups—representing the investment arms of banks HSBC and BNP Paribas, as well as of fashion company Hermes and the United Nations Environment Programme—aimed at limiting emissions and taxing them, arguing it will drive innovation, attract investment and create jobs. The call also hailed Australia’s recent move toward a carbon tax, saying it will be a boon for investors.
Meanwhile, another group of more than 175 companies called for Durban attendees to ensure $100 billion in annual climate aid to poor nations, as had been promised earlier.
No Big Bang
But Jos Delbeke, director general for climate action at the European Commission believes the long-running negotiations through the United Nations Framework Convention on Climate Change are unlikely to produce a “big bang”—that is, a breakthrough that would lead to the birth of a new climate treaty.
In preparation for the upcoming meeting, Japan has signaled it may step back from its own target of cutting CO2 emissions 25 percent by 2020—and it is bringing it up now to avoid giving the “wrong message to the international community,” according to the Wall Street Journal.
Japan, Canada and Russia have said they won’t accept an extension of the Kyoto Protocol unless it binds all major economies—which is not the case under Kyoto—but other governments are seeking a way to extend the treaty even without those three countries.
Yomiuri Shimbun also reported Japan will argue the next legally binding climate agreement should wait until 2015, after the Kyoto Protocol lapses in 2012.
Door Closing
Meanwhile, International Energy Agency Chief Economist Fatih Birol gave a sneak preview of the upcoming World Energy Outlook report, which will argue that without bold action, “the door may be closing” on limiting warming to 2 degrees Celsius. Meeting the challenge will take about $38 trillion in spending on oil, gas and electricity infrastructure over the next 25 years.
According to a leaked version of the European Union’s Energy Roadmap 2050, in most scenarios—with differing amounts of efficiency, renewable energy and nuclear power—electricity prices will rise until about 2030, and then fall.
Already the high cost of energy is eating into consumers’ disposable income in the U.S., as well as in the U.K., where it is driving inflation up.
As a counter-measure, the U.K. is pursuing “serious intervention” in the energy market to increase competition and transparency, and the country’s Department of Energy and Climate Change hopes a new bill that came into effect on home energy efficiency will help fight rising bills.
Mixed Signals
A New York Times article asked “Where Did Global Warming Go?,” noting the topic has faded from Obama’s speeches and arguing the GOP has made climate change skepticism a requirement for electability.
However, Joseph Romm at Climate Progress pointed a finger at the New York Times and other major media outlets as part of the problem because there has been a major decline in the amount of climate coverage. Others, such as William Y. Brown of the Brookings Institution argued the New York Times piece is wrong to say Americans don’t trust scientists; rather they don’t like being lectured.
Green issues do appeal to voters, according to a study by Stanford University researchers, who found American politicians who took a pro-green stance were more likely to win. More specifically, Democrats who supported green issues won more often, and Republicans who took anti-green stances lost more often than if they kept silent on the topic.
Energy will also be a significant issue for GOP candidates, according to “energy and environment insiders” polled by the National Journal. Especially important, the insiders said, will be linking energy policy with job creation.
Luxury in a Smaller Package
Even in these hard economic times, luxury cars still have a market and automakers are rolling out new models that, while remaining plush and pricey, are shrinking, both in body and engine.
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.
The Nicholas Institute for Environmental Policy Solutions at Duke University
Although Australia’s Prime Minister Julia Gillard had promised before to not enact a carbon tax, floods, bush fires, heat waves, and drought reawakened discussion about putting a price on greenhouse gas emissions.
This week, Australia’s House of Representatives narrowly passed a carbon tax, sending the bill to the country’s Senate, where observers say it is almost certain to pass. Supporters say Australia’s setup would have several advantages over Europe’s carbon-trading system, including a fixed price for the first three years while the fledgling system gets going, which could allow Australia to claim it is the world leader on climate legislation.
However, Australia is currently one of the biggest emitters per capita, with 80 percent of the country’s electricity coming from coal. Australia is also the world’s biggest coal exporter, and as such has the coal industry reacting fiercely to the proposed law.
Buying Sunshine
Debt-wracked Greece is launching a plan—with Germany’s help—to attempt to boost its economy out of recession by building huge solar power installations. “Project Helios,” named after the Greek god of the sun, is designed to attract 20 billion euros in foreign investment—and a large portion of the electricity produced may leave the country, headed to Germany.
However, the plan for exporting the electricity has some snags, critics say—including the need for billions of euros of investment in Greece’s power grid. Nonetheless, the president of the Hellenic Association of Photovoltaic Companies said the plan is more realistic than Desertec, a proposal to supply Europe with electricity from huge solar power farms in North Africa.
Energy for All
In preparation for 2012—which the United Nations has named the Year of Sustainable Energy for All—the International Energy Agency released its first assessment of the cost of ending energy poverty. The price tag: $48 billion a year—about 3 percent of the yearly global energy investment, and about five times as much as is spent now trying to bring energy to the world’s poor.
Expanding electricity to about 1.5 billion people who lack it now would add less than 1 percent to the world’s emissions, the report estimated, and the spread could be driven by the private sector, with the proper incentives from governments, said U.N. Secretary-General Ban Ki-moon.
Pipeline Proceedings
The proposed Keystone XL pipeline, which would carry diluted tar sands from Canada to Texas, faced raucous opposition at a public hearing in Washington, D.C. Protests against the project outside the White House dwindled in September, but the project remains a political headache for the Obama Administration.
Nonetheless, many industry insiders surveyed by National Journal, as well as Canada’s natural resources minister, said the administration is likely to approve the pipeline.
More Nuclear Zones
Notwithstanding the retreat from nuclear power in Germany, Switzerland, and perhaps Japan, the world is still headed for a nuclear renaissance, said a report by Britain’s Royal Society. However, the report argued there should be more emphasis on controlling proliferation of nuclear materials and better storage of spent fuel to avoid accidents like that at Fukushima.
A new bill in Berkeley, California, is questioning the city’s long-time stance as a “nuclear free zone,” which uses no nuclear power and lets no nuclear weapons pass through it. But one of its city council members says the 1986 law causes more problems than it is worth and should be repealed.
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.
The Nicholas Institute for Environmental Policy Solutions at Duke University
The proposed Keystone XL pipeline, which could carry a diluted form of tar sands from Canada to Texas, has attracted the ire of many environmentalists, including Bill McKibben, who spearheaded protests in front of the White House last month.
This week, McKibben argued the Obama administration is practicing “crony capitalism” and that e-mails obtained through a Freedom of Information Act request imply the State Department—charged with evaluating the pipeline—may have worked closely with TransCanada, the company building the pipeline, to help the plan win approval.
The State Department rejected the accusations of bias. In response, the heads of a more than a dozen major environmental groups and other nonprofits called for President Obama to strip the State Department of its authority over the pipeline. Environmental groups also sued to stop the pipeline, saying TransCanada had unlawfully begun preparations in Nebraska for the pipeline, although it is still awaiting approval.
The opposition went more mainstream when a New York Times editorial called for the United States to “Say No to the Keystone XL,” arguing it would not do much to help energy security because much of the oil appears slated for export, and the best bet for long-term job creation is through renewable and alternative energy, rather than building more pipelines.
The European Union appears likely to stymie imports of fuels made from tar sands, through a new fuel quality directive.
Haunting Visit
The Obama administration also came under fire because the U.S. Department of Energy (DOE) had hired top campaign supporters to help direct loan guarantees and other support for cleantech companies, including $535 million for now-bankrupt solar panel manufacturer Solyndra.
Obama was warned before his May 2010 visit to Solyndra, the trip may come back to haunt him because the company was already looking shaky, according to newly released e-mails.
Before a major loan guarantee program ended, the DOE completed $4.75 billion in loan guarantees for four large solar projects, on top of $11.4 billion in loans backed by the program before.
Solar Decline
It’s not just solar companies such as Solyndra that have struggled. Sales of solar panels may drop in 2012, according to a Bloomberg New Energy Finance analyst and two large solar companies. This runs counter to 15 years of double-digit growth rates, and would be the first time, at least since 1975, that annual installations have fallen.
The U.S. solar industry is headed for a “solar coaster” as key federal subsidies are set to expire.
In Germany, consumers are rushing to install more panels in anticipation of a scheduled drop in the country’s solar subsidies. Chancellor Angela Merkel also said the government may cut the subsidies further.
With a surplus of panels on the market and prices falling, Germany’s plan to shut its nuclear plants may cost the country less than expected, taking away some of the bite of this transition.
Subsidy Backfire
In 2010, the world spent $409 billion subsidizing fossil fuels, up 36 percent from the year before, since policies remained largely unchanged while fossil fuels prices rose, according to a new report by the International Energy Agency (IEA).
In industrialized countries, subsidies tend to go to fuel producers, while in developing countries the price to consumers is subsidized as a way to help the poor. However, the vast majority of fossil fuel subsidies go to middle and upper classes, the report found. It also argued the subsidies encourage waste and make prices more volatile, thus backfiring by creating hardship for the poor.
The countries with the biggest subsidies are major oil and gas producers that rely heavily on oil revenue—mostly members of the Organization of Petroleum Exporting Countries (OPEC), plus Russia. In 2010, about half the subsidies went toward oil, a quarter toward natural gas, and the remaining quarter toward coal. “The time of cheap energy is over,” said the Executive Director of the IEA, Maria van der Hoeven.
Fighting Denial
Many of the leading Republican candidates for the presidency have, while on the campaign trail, questioned whether climate change is real, or whether people are causing it.
Some Republicans who supported policies to cut emissions in the past have been quiet about this issue recently. But National Journal reports that, behind the scenes, former Republican officials and other insiders are trying to shift the GOP’s focus back to acknowledging climate change is real.
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.
