California Establishes Low Carbon Fuels Standard
On January 9, California Governor
Schwarzenegger announced in his State of the State address that
he will issue an Executive Order establishing a Low Carbon Fuel
Standard (LCFS) for transportation fuels sold in California. By
2020, the standard will reduce the carbon intensity of
California's passenger vehicle fuels by at least 10 percent.
This first-of-its kind standard will support AB 32 emissions
targets as part of California's overall strategy to fight global
warming.
"Transportation accounts for
forty percent of California's annual greenhouse gas emissions,
and we rely on petroleum-based fuels for an overwhelming 96
percent of our transportation needs," said Governor
Schwarzenegger. "This petroleum dependency
contributes to climate change and leaves workers, businesses and
consumers vulnerable to price shocks from an unstable global
energy market. As a world leader in energy efficiency,
alternative energy and reducing greenhouse gases, California's
new low carbon standard is an innovative action that will
diversify our fuel supplies and establish a vibrant market for
cleaner-burning fuels."
The new standard is expected to
reduce emissions by 13 million metric tons, more than half of
the 24 million metric tons of carbon dioxide the state will need
to eliminate to meet 1990 vehicle emission levels.
EU Proposes Energy Policy to Address Climate Change
On January 10, the European
Commission proposed a comprehensive package of measures to
establish a new energy policy for Europe to combat climate
change and boost the EU's energy security and competitiveness.
The package of proposals set a series of targets on greenhouse
gas emissions and renewable energy and aim to create a true
internal market for energy and strengthen effective regulation.
The Commission believes that when an international agreement is
reached on the post-2012 framework this should lead to a 30
percent cut in emissions from developed countries by 2020. To
further underline its commitment, the Commission proposes that
the European Union commits now to cut greenhouse gas emissions
by at least 20 percent by 2020, in particular through energy
measures.
Stavros Dimas, Commissioner for the
Environment, said "Climate change is one of the gravest
threats to our planet. Acting against climate change is
imperative. Today, we have agreed on a set of ambitious, but
realistic targets which will support our global efforts to
contain climate change and its most dire consequences. I urge
the rest of the developed world to follow our lead, match our
reductions and accelerate progress towards an international
agreement on the global emission reductions."
As part of accelerating the shift to
low carbon energy, the Commission proposes to maintain the EU's
position as a world leader in renewable energy by proposing a
binding target of 20 percent of its overall energy mix to be
sourced from renewable energy by 2020. This will require
significant growth in all three renewable energy sectors:
electricity, biofuels and heating and cooling. This renewables
target will be supplemented by a minimum target for biofuels of
10 percent. In addition, a 2007 renewables legislative package
will include specific measures to facilitate the market
penetration of both biofuels and heating and cooling.
Research is also crucial to lower
the cost of clean energy and to put EU industry at the forefront
of the rapidly growing low carbon technology sector. To meet
these objectives, the Commission will propose a strategic
European Energy Technology Plan. The European Union will also
increase by at least 50 percent its annual spending on energy
research for the next seven years.
EU Considers Mandatory Tailpipe GHG Standards
The European Commission wants to
impose mandatory efficiency standards on all new vehicles sold
in Europe as part of a master plan to combat climate change.
Currently, the EU has a voluntary agreement with motor vehicle
manufacturers, signed in 1998, to reduce emissions by 25 percent
by 2008—but they have missed their target by almost 50
percent.
The Environment Commissioner Stavros
Dimas now wants mandatory standards that will allow the average
car to emit just 120 grams of carbon dioxide (CO2) per kilometer
(g/km). That would mean a 1.6 liter Ford Focus would need to cut
emissions by a third to qualify as an average vehicle under the
new regime. Car manufacturers will be able to average out their
overall CO2 targets over their entire range of vehicles.
The Citroen C3 diesel emits exactly
120 grams of carbon per kilometer. A supercharged Range Rover
Sport V8 emits 376 g/km and the gas-electric hybrid Toyota Prius
produces 104 g/km. Car manufacturers said the proposals, which
apply only to new cars, would prove devastating for stand-alone
sports car builders, such as Porsche, and specialist
manufacturers such as Land Rover.
As reported by the Telegraph,
Mr. Dimas insisted that they would not be forced out of
business. The way he sees the legislation working is that
manufacturers would subsidize cheaper, high volume family cars
and pass the increased costs of developing new, low-emission
vehicles on to the buyers of more polluting cars.
EIA Finds Mandatory Carbon Cap Would Not Harm US Economy
On January 11, the Energy Information Administration (EIA)
released an analysis of a detailed discussion draft on global
warming legislation. The draft analyzed was a modified version
of a draft originally submitted by Senate Energy and Natural
Resources Committee Chairman Bingaman (D-NM) as an amendment to
the Energy Policy Act of 2005 (PL 109-58), but which was
withdrawn for further development after discussion with
then-Chair Domenici (R-NM). According to a Senate Energy and
Natural Resources Committee press release, EIA finds that the
proposed mandatory steps to reduce greenhouse gas emissions can
be achieved at very low cost to American households and without
harming the U.S. economy.
According to EIA, the climate plan
would have the following impacts: Compared to projected
emissions without the program, emissions are lowered by 5
percent (372 million tons) in 2015 and 11 percent (909 million
tons) in 2025, and 14 percent (1259 million tons) by 2030.
Costs to the U.S. economy would total 0.1 percent of GDP through
2030. Cumulative GDP is projected to double from 2006 to 2030.
Electricity prices would rise by less than 11 percent by 2030.
Coal use would grow by 23 percent by 2030, compared to 53
percent without the program. Natural gas demand is projected to
increase by a mere 1 percent by 2030. Non-hydro renewable
electricity generation would rise by 53 percent by 2030.
As reported by Congress Daily,
to limit the effect on the economy, Bingaman has included a
"safety valve" that initially limits to $7 per ton the
amount that industry would have to pay for exceeding emission
limits. That amount would increase annually by 5 percent above
the projected inflation rate. Sen. Bingaman's plan would
establish annual emission limits to reduce greenhouse gas
"intensity," derived by dividing greenhouse gas
emissions by the forecasted gross domestic product for a given
year. This intensity would be reduced 2.6 percent annually
between 2012 and 2021 and by 3 percent a year after that,
according to the analysis.
Sen. Bingaman said, “I am
committed to developing bipartisan climate change legislation
that can pass the Congress this year. Getting good analysis of
draft legislation is the critical first step to understanding
the impacts of global warming policy. I plan to hold a
hearing to review the results of this analysis.”
NOAA Reports 2006 Warmest Year on Record for U.S.
The National Oceanic and Atmospheric
Administration (NOAA) reports that 2006 was the warmest year for
the 48 contiguous states since regular temperature records began
in 1895. NOAA says this is due to a general climatic warming
trend, in addition to El Niño contributing to milder winter
temperatures.
As reported in NOAA's press release,
"A contributing factor to the unusually warm temperatures
throughout 2006 also is the long-term warming trend, which has
been linked to increases in greenhouse gases. This has made
warmer-than-average conditions more common in the U.S. and other
parts of the world. It is unclear how much of the recent
anomalous warmth was due to greenhouse-gas-induced warming and
how much was due to the El Niño-related circulation pattern. It
is known that El Niño is playing a major role in this winter's
short-term warm period."
Based on preliminary data, the 2006
annual average temperature was 55°F--2.2°F (1.2°C) above the
20th Century mean and 0.07°F (0.04°C) warmer than 1998. U.S.
and global annual temperatures are now approximately 1.0°F
warmer than at the start of the 20th century, and the rate of
warming has accelerated over the past 30 years, increasing
globally since the mid-1970s at a rate approximately three times
faster than the century-scale trend. The past nine years have
all been among the 25 warmest years on record for the contiguous
United States, a streak which is unprecedented in the historical
record.
Study Looks at Cost of Climate Change to Washington
State
Climate change is already affecting
Washington's economy, according to a $100,000 study requested by
the departments of Ecology and Community Trade and Economic
Development (CTED) that was released January 10. A team of
scientists and economists evaluated climate change in producing
the state report, "Impacts of Climate Change on
Washington's Economy." The study warns that economic
effects are likely to grow in the Pacific Northwest as
temperatures increase.
A warming Pacific Northwest, extreme
weather, reduced snow pack and sea level rise are four major
ways climate change is disrupting Washington's economy,
environment and communities. The research team reached three
conclusions about the effects of climate change on Washington's
economy: climate change impacts are already occurring in
Washington State and their economic effects are becoming
apparent; the economic effects of climate change in Washington
will grow as temperatures and sea levels rise, and; although
global warming and the economic disruption it causes will
increase over time, new economic opportunities are already
available.
Key evidence of climate change
effects in Washington include: retreating glaciers, decreasing
snow pack, lower summer stream flows, more wildfires, and rising
sea levels. "It's safe to say that virtually every aspect
of the state's economy will be affected by climate change,"
said co-author Bob Doppelt, director of the Climate Leadership
Initiative at the University of Oregon, in a teleconference
after the study's release. "But the impacts are manageable
with an appropriate response, and climate change does open the
door for new economic opportunities."
Global Risk Report Highlights Climate Change
The Global Risks 2007 report
released today highlights a growing disconnect between the power
of global risks to cause major systemic disruption, and our
ability to mitigate them. The annual Global Risks report –
published by the World Economic Forum in cooperation with
Citigroup, Marsh & McLennan Companies, Swiss Re and the
Wharton School Risk Center – suggests that many of the 23 core
global risks explored in the report have worsened over the last
12 months, despite growing awareness of their potential impacts.
In addition to specific risk mitigation measures, institutional
innovations may be needed to create effective responses to a
complex risk landscape.
From the range of economic,
environmental, geopolitical, societal and technological threats,
the "Global Risks 2007" report pinpointed climate
change as "one of the defining challenges of the 21st
century." The
report recommends a number of key needs for addressing specific
global risks, including linking energy security with
considerations on climate change and urgently beginning work on
a successor to the Kyoto agreement with three central
principles: involvement of the United States and major
developing countries (particularly China and India);
differential responsibilities for future emissions’ reduction
dependent upon past emissions and stage of economic development;
and, common overall responsibility for climate change.
EESI
Briefings
DVD’s
Available: Copies of DVD's
are available of EESI's recent climate
briefings: "Agriculture
and Climate Change: Threats and Opportunities," May
24, 2005; "What
Does Climate Change Mean for the Arctic? How is Alaska Being
Affected?,"
March 15, 2005; "Perspectives
on Climate Change: Business Initiatives to Reduce Greenhouse
Gas Emissions," November
18, 2004; “State
and Local Government Climate Change Efforts,” September
28, 2004; “Climate
Change Post 2100,” September 21, 2004; “Abrupt
Climate Change,” September 15, 2004; and
“Discussing Climate Change: A Multi-faceted View
of the Climate Stewardship Act,” June 3, 2004.
The discs are $20
ea. (incl. shipping/handling) plus tax 5.75%
(DC residents only). Click on the following link to
order a DVD: EESI
Climate Change DVD's
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