Climate Change News - October 5, 2009

Senators Kerry and Boxer Introduce the Clean Energy Jobs and American Power Act

On September 30, Sen. John Kerry (D-MA), Senate Foreign Relations Committee Chair, and Sen. Barbara Boxer (D-CA), Senate Environment and Public Works Committee Chair, introduced new legislation entitled the Clean Energy Jobs and American Power Act. “We know clean energy is the ticket to strong, stable economic growth -- it's right here in front of us, in the ingenuity of our workers and the vision of our entrepreneurs. We must seize this opportunity, or others will move ahead,” Boxer said at a press conference for the bill’s introduction. “This is a security bill that puts Americans back in charge of our energy future and makes it clear that we will combat global climate change with American ingenuity. It is our country's defense against the harms of pollution and the security risks of global climate change,” Kerry added. President Obama responded to the introduction of the bill in a statement: “I applaud Chairmen Kerry and Boxer for their leadership on comprehensive energy reform. With the draft legislation they are announcing today, we are one step closer to putting America in control of our energy future and making America more energy independent.”

Much of the Senate climate bill is modeled after the American Clean Energy and Security Act (ACES) (H.R. 2454), passed by the House in June, though differences exist in key areas. Like ACES, a centerpiece of the legislation is a national cap-and-trade program for greenhouse gas emissions (GHGs), though the Senate bill calls for a 20 percent reduction in GHG emissions below the 2005 baseline by 2020, compared to a 17 percent reduction in ACES. Senators Boxer and Kerry also included a collar on the price of emission allowances, stipulating that if the price of an emission allowance rises above $28 in 2012, the Commodity Futures Trading Commission (CFTC) may issue additional emission allowances from a market stability fund to drive the price down. The bill also preserves the right of the Environment Protection Agency (EPA) to regulate GHG emissions, which was significantly limited in ACES. In addition, the Senate bill empowers the CFTC to wholly regulate the carbon market created by the cap-and-trade program, rather than sharing jurisdiction with the Federal Energy Regulatory Commission, as stipulated by the House bill.

Similar to when ACES was introduced in the House, Sen. Boxer and Sen. Kerry initially left out details on how emission allowances will be distributed, choosing to add those details at a time closer to when the bill is considered by the full Senate Environment and Public Works Committee.

For additional information see: Senate Environment and Public Works Committee , Washington Post , Wall Street Journal , Los Angeles Times

EPA Moves to Regulate Smokestack Greenhouse Gases

On September 30, Environmental Protection Agency (EPA) Administrator Lisa Jackson announced the EPA will advance new rules to regulate the emission of greenhouse gases (GHGs) from stationary sources. The specific rule released raised the threshold for EPA regulation of GHGs under the Clean Air Act from any facility that emits 250 tons per year to only those that emit over 25,000 tons per year. This would allow EPA to regulate the approximately 14,000 large emitters responsible for roughly 75 percent of U S. GHG emissions, instead of, as Jackson said, “Every cow and dunkin’ donuts.” Covered facilities would have to implement 'best available control technologies' to minimize GHG emissions. “[The proposed rule] allows us to do what the Clean Air Act does best: Reduce emissions for better health, drive technology innovation for a better economy, and protect the environment for a better future, all without placing an undue burden on the businesses that make up the better part of our economy,” Jackson said.

“We are not going to continue with business as usual while we wait for Congress to act,” said Jackson. President Obama has said that he prefers climate change legislation to EPA regulation of GHGs under the Clean Air Act . The next step for the EPA’s rules will be a period of drafting and then public comment. EPA’s rules could take effect as early as 2011 if climate change legislation is not passed by Congress by that time.

For additional information see: New York Times , AP , Los Angeles Times , Houston Chronicle

Exelon Leaves U.S. Chamber over Climate Dispute, Nike Leaves Chamber Post

On September 28, Exelon CEO John Rowe announced that the electric utility Exelon Corp. will let its membership to the U.S. Chamber of Commerce expire at the end of the year due to concerns over the business lobby’s position on climate change. Exelon is the third electric utility to leave the Chamber of Commerce after the lobby called for a public hearing to investigate the science behind climate change. PG&E Corp and PNM Resources both withdrew last week. “Inaction on climate is not an option,” Rowe said. "If Congress does not act, the EPA will, and the result will be more arbitrary, more expensive, and more uncertain for investors and the industry than a reasonable, market-based legislative solution." An Exelon spokeswoman added, “The Chamber and other groups think climate legislation will be bad for the economy . . . We think it's going to be good for the economy.”

On September 30, Nike announced it will resign its position on the board of directors at the Chamber due to disagreements with the business lobby’s climate change position. “We believe that on the issue of climate change the Chamber has not represented the diversity of perspective held by the board of directors," the company said in a statement. “Therefore, we have decided to resign our board of directors position.” Nike said it will stay in the Chamber in order to “advocate for climate change legislation” from within the organization.

For additional information see: New York Times , NASDAQ , Reuters , Politico , NASDAQ

White House Forms Climate and Energy Working Group

On September 29, the newly formed White House Working Group of State Legislators on Energy and Climate Control met for the first time. The Working Group is comprised of 40 state legislators from around the country that have already had success in moving energy and climate change legislation through their respective states. President Obama formed the Working Group to harness this expertise to help move energy and climate change legislation through Congress. Minnesota State Representative Jeremy Kalin, Chair of the Working Group, said, “The next real opportunity for real economic prosperity will be the clean energy jobs bill in the Senate,” and that he hopes his Working Group will be able to contribute to the successful passing of a federal bill.

For additional information see: Minnesota Tribune , Star Tribune

Top Emitters in California to Begin Paying Fees

On September 25, the California Air Resources Board (CARB) approved the first state-wide carbon fee in the United States. The fee, initially set at $0.15 per ton of CO2, will be levied on approximately 350 of California’s utilities, oil refineries, and other heavy polluting industries to pay for the bureaucratic expenses of California’s Global Warming Solutions Act of 2006 (A.B. 32). The fee will be imposed beginning in 2010 and is expected to raise $63 million per year. CARB Chairwomen Mary Nichols said, “If you're going to start a new program, I think it makes a lot of sense to be asking that it is a pay-as-you-go program, and that's what we're doing here.” Sierra Club California Director Bill Magavern said, “This is a necessary step for California to continue its implementation of the nation's first-ever statewide cap on global warming pollution.”

For additional information see: San Francisco Chronicle , AP

Climate Talks Continue in Bangkok

On September 29, delegates convened in Bangkok, Thailand, to begin the latest rounds of negotiations to produce an international climate change agreement at the United Nations (UN) Framework Convention on Climate Change in Copenhagen this December. One goal of the meeting is to revise a draft agreement, which currently stands at over 180 pages. Key areas of debate are developed country greenhouse gas emission cuts by 2020 and financial assistance for developing nations to adapt to climate change. “Progress toward high industrialized world emissions cuts remains disappointing during these talks. We're not seeing real advances there," said UN Climate Change Secretariat Head Yvo de Boer. “Movement on the ways and means and institutions to raise, manage and deploy financing support for the developing world climate action also remains slow,” he added. The Bangkok talks will conclude on October 9.

During UN-sponsored negotiations, Indonesian President Susilo Bambang Yudhoyono pledged that his nation would reduce the carbon intensity of its economy by 26 percent below 'business as usual' levels by 2020. Indonesia is currently the world’s third largest emitter of greenhouse gases and also the first large developing nation to commit to a specific reduction in carbon intensity. Yudhoyono indicated that Indonesia would be willing to reduce its carbon intensity by 41 percent if developed nations provide financial assistance, signaling additional progress can be made at the Bangkok talks. “This target is entirely achievable because most of our emissions come from forest-related issues, such as forest fires and deforestation,” Yudhoyono said.

For additional information see: Reuters , AP , India Times

G-20 Agrees to Phase Out Fossil Fuel Subsidies

On September 24-25, world leaders from the Group of 20 (G-20), a group comprised of the world’s 20 largest economies, met in Pittsburgh to discuss the global economy. The G-20 agreed to phase out fossil fuel subsidies in the “medium term” in order to combat climate change by preventing overinvestment in fossil fuels. Each year over $300 billion is spent by governments in the developed and developing world on fossil fuel subsidies. Critics argue that this keeps fossil fuel prices artificially low, leading to increased use and higher CO2 emissions. The International Energy Agency and the Organization for Economic Cooperation and Development estimate that removing fossil fuel subsidies by 2020 will reduce greenhouse gas emissions by 10 percent below a 'business as usual' baseline by 2050. “This reform will increase our energy security . . . and it will help us combat the threat posed by climate change," said President Obama. “All nations have a responsibility to meet this challenge, and together we have taken a substantial step forward in meeting that responsibility,” he said.

For additional information see: Reuters , Los Angeles Times , Wall Street Journal , Brisbane Times

UK Met Office Says Dire Climate Change May Occur Before 2060

On September 28, the Met Office Hadley Center of the United Kingdom’s Department for Energy and Climate Change released a new report announcing climate change is accelerating beyond earlier estimates. The report warned that if business continues as usual, average global temperatures could rise by 4°C by 2060. The report also forecasted a 16°C increase in the Arctic and a 10°C increase in parts of North America and sub-Saharan Africa. The Met Office cautioned that temperature increases of this magnitude could cause global rainfall to fall by 20 percent, which would have profound impacts on agriculture and water availability. Met Office Head of Climate Impacts Dr. Richard Betts said, “4°C of warming averaged over the globe translates into even greater warming in many regions, along with major changes in rainfall . . . If greenhouse gas emissions are not cut soon then we could see major climate changes within our lifetimes.” A Department for Energy and Climate Change spokesman added, “A four degree rise in global temperatures would have serious consequences for mankind with food security, water availability and health all being adversely affected. This report illustrates why it is imperative for the world to reach an ambitious climate deal at Copenhagen which keeps the global temperature increase to below two degrees.”

For additional information see: The Guardian , The Telegraph , Daily Mail , Met Office Press Release

World Bank: $100 Billion a Year Needed for Climate Safety

On September 30, the World Bank released preliminary results from its biennial global economic assessment, World Development Report 2010, which this year focused exclusively on climate change, at the international climate change talks in Bangkok, Thailand. The study found that developing nations will need $75-100 billion per year until 2050 to adapt to the impacts of climate change if temperatures rise by the targeted 2°C above pre-industrialization levels. In comparison, total foreign aid spending was $118 billion in 2008. “Faced with the prospect of huge additional infrastructure costs, as well as drought, disease and dramatic reductions in agricultural productivity, developing countries need to be prepared for the potential consequences of unchecked climate change,” said World Bank Vice President for Sustainable Development Katherine Sierra. The report elaborated that the funding should go to adaptation measures such as ensuring safe water supplies, protecting coasts, fighting tropical diseases, and coping with extreme weather events, and would allow developing nations to “enjoy the same level of welfare in the future world as they would have without climate change.” Financial assistance from developed nations to developing ones has been a key issue at negotiations to produce an international climate change agreement at the United Nations Framework Convention on Climate Change in Copenhagen this December.

For additional information see: BBC , Bloomberg , Reuters

NATO Chief Warns of Huge Security Threats from Climate Change

On October 1, the new North Atlantic Treaty Organization (NATO) Secretary General Anders Fogh Rasmussen said climate change has “potentially huge security implications” for the alliance. Rasmussen said many of the impacts of climate change, such as rising sea levels, droughts, and reduced crop yields, could trigger large population movements and conflicts. “The fact that new sea routes will be opened for navigating, the fact that we will get easier access to resources in the Arctic, might also increase the scope of competition in the region,” Rasmussen added. He recommended that the treaty nations use NATO as a forum to discuss responses to climate change, saying, “I think it is within the natural scope of work for NATO to be the forum for consultation and discussion on these issues.”

For additional information see: AFP , AP

India Offers to Report Emissions Annually to UN

On September 25, India’s Environment Minister Jairam Ramesh announced India will voluntarily submit an annual greenhouse gas (GHG) inventory to the United Nations (UN). The Kyoto Protocol stipulates that developed nations have to submit annual GHG inventories to the UN, and developing countries need to submit climate change declarations every six years. India’s annual GHG inventory will allow the UN to more accurately measure, report, and verify India’s GHG emissions. “An annual communication to the UN will say what we’re doing, what the results are, how’s it being implemented, the impact,” said Ramesh. “We want to be transparent to the international community, but domestically accountable to our voters,” the minister added.

For additional information see: The Guardian , Hindustan Times

Oil Sands Emissions Underestimated, Report Claims

On October 2, Global Forest Watch released a new report claiming industry is underestimating greenhouse gas (GHG) emissions from the oil sands in Alberta, Canada. Industry reports have estimated that Canadian oil sands emitted 36 megatons of CO2 in 2008, while Global Forest Watch claimed actual GHG emissions were approximately one quarter higher. The report said the reason for this discrepancy was that industry estimates do not include GHG emissions that occur when the forests over the oil sands are cut down and the peatlands are disturbed. The report also estimated that the full development of the oil sands will release an additional 873 megatons of CO2 over the next 100 years. Lead author Peter Lee said, “We undertook this research to help better inform the recent efforts of the Government of Alberta to try to balance bitumen extraction with environmental concerns. As part of these initiatives, it is important to know the full carbon emission impact of all activities associated with oil sands development, not just those related to industrial processing.”

For additional information see: Canadian Press , Global Forest Watch

EU Delays Airline CO2-Cap Verdict Until 2010

On September 29, the European Union (EU) Commission said it would wait until mid-2010 to set a greenhouse gas (GHG) emission cap for airlines. Airlines will be incorporated in the EU Emissions Trading Scheme, Europe’s cap-and-trade program, beginning in 2012. The EU chose to delay its decision, originally scheduled for this fall, until next year because of uncertainties over airline emissions data which the airline industry feared would lead to a more ambitious cap than is warranted. When asked about the decision, Phillip Good, an environment official at the EU Commission, said, “The earliest next year is likely to be the first quarter, more likely midway . . . We’re very keen to ensure we have a robust methodology.”

For additional information see: Bloomberg

USGS: Melting Ice Displaced Trampled Walruses

On October 1, a preliminary report from the United States Geological Survey (USGS) concluded that the loss of sea ice along the northwest coast of Alaska was a factor in the trampling death of 131 walruses, most of which were juveniles. On September 12, 3,500 walruses were spotted near Icy Cape in Alaska. A disturbance set off a stampede and the walruses rushed to the sea, causing 131 walruses to be trampled. The USGS believes these walruses were unable to escape because they were exhausted from their travels, and that the loss of sea ice was a factor. Walruses cannot swim indefinitely so young walruses use sea ice as resting points when traveling. However, in recent years sea ice has receded as global temperatures increased. World Wildlife Fund biologist Geoff York said, “Were it not for the dramatic decline in the sea ice, the young walruses at Icy Cape most likely would be alive on the ice and not dead on a beach.”

For additional information see: AP

Study Questions Theory That Population Growth Is Major Driver of Climate Change

In the September 28 issue of the journal Environment and Urbanization a study concluded that forecasted population growth in the developing world will have little impact on global climate change. This study contradicts recent calls for population growth to be limited to address climate change. Lead author Dr. David Satterthwaite of the International Institute for Environment and Development concluded that the real issue is not population growth, but growth in the number of modern consumers. He argued that sub-Saharan Africa had 18.5 percent of the world’s population growth, but only 2.4 percent of the growth in CO2 emissions, while the United States had 3.4 percent of the world’s population growth and 12.6 percent of the growth in CO2 emissions. “A child born into a very poor African household who during their life never escapes from poverty contributes very little to climate change, especially if they die young, as many do. A child born into a wealthy household in North America or Europe and who enjoys a full life and a high-consumption lifestyle contributes far more — thousands or even tens of thousands of times more,” he said. Satterthwaite concluded that providing contraceptives and other forms of family planning to the developing world will not have a sizable impact on mitigating climate change.

For additional information see: The Times , International Institute for Environment and Development Press Release

Climate Change to Cut Crop Yields, Boost Prices, Study Shows

On September 30, the International Food Policy Research Institute (IFPRI) released a new report concluding climate change will lead to a 20 percent increase in hungry children by 2050. The report forecasted that instead of 113 million malnourished children in 2050, 138 million children will be malnourished because of climate change. “Climate change increases child malnutrition and reduces calorie consumption dramatically,” the report stated. IFPRI said climate change will reduce crop yields because of lower rainfall and increased spread of pests and plant disease. “The negative effects of climate change on crop production are especially pronounced in sub-Saharan Africa and South Asia,” the report said. It also forecasted that reduced crop yields means food prices will rise. “Even without climate change, food prices will rise,” lead author Gerald Nelson said. “Climate change makes this problem worse.” The report recommended a $7 billion increase in public spending on agriculture research, irrigation improvements, and farm-to-market roads in response.

For additional information see: AP , Reuters , Bloomberg , International Food Policy Research Institute Press Release

October 7: Addressing Climate Change with Energy Efficient Buildings: Best Practices from Switzerland

The Environmental and Energy Study Institute (EESI) and the Embassy of Switzerland invite you to a lunch briefing to learn how energy efficient buildings have become the cornerstone of Switzerland’s efforts to reduce greenhouse gas emissions and dependence on fossil fuels with strong support from the Swiss building industry, financial sector, and public agencies. As Congress considers energy and climate legislation, this briefing will examine Switzerland’s success in promoting energy efficiency policies and whether similar strategies can be applied to reduce U.S. building energy consumption. This briefing will take place on Wednesday, October 7, from 12:00 - 1:30 p.m. in B339 Rayburn House Office Building. This briefing is free and open to the public. Lunch will be served. RSVP to Ursina Roder at ursina.roder [at] eda.admin.ch. For more information, contact Ellen Vaughan at (202) 662-1893 or evaughan [at] eesi.org

Last Week's Briefings on Climate Change

The Environmental and Energy Study Institute (EESI) held two briefings last week to discuss issues related to climate change. Presentations from both the October 1 briefing titled "How Climate Change Is Impacting the Arctic" and the October 2 briefing titled "Chlorofluorocarbons: An Overlooked Climate Threat" are now available on our website.