Jun29

Mapping House Climate Votes

Waxman-Markey, Cap and Trade, Congress

 

By a vote of 219 to 212 (proponents notching just one more vote than a simple majority) the U.S. House Friday approved the American Clean Energy and Security Act, legislation that would implement a cap-and-trade system to cut greenhouse gas emissions.


Debate of the bill had shown that along with party-line splits, the fate of climate legislation in the House relied on overcoming regional differences. Members generally kept with party rank, with the notable exceptions of eight Republicans who showed support for ACES and 44 Democrats who voted against the bill (see map below).

 

 

Maps from the National Journal, NYT and 538 offer greater detail and perhaps some context to the democratic defections and provide some insight into how regional differences may have influenced this vote.


For more on the regional outcomes of climate policy see this RFF discussion paper, and posts here and here.

 

Tiffany Clements is managing editor of Weathervane.

Published: Jun-29-09 | 0 Comments

Jun24

Overseeing Avoided Deforestation: Time for New Regulators?

Forest Carbon, United States, International, Waxman-Markey

 

After exploring some of the key questions in Waxman-Markey’s tropical conservation provisions here, Andrew teamed with RFF’s Nigel Purvis and Ray Kopp to write this issue brief proposing the creation of a new U.S. regulatory entity to the administration of international forest carbon offset program.

 

According to authors, “Existing federal agencies are ill‐equipped to manage new programs in ways that produce genuine climate change benefits, reduce the cost of climate action for the United States, and advance other foreign policy objectives, including poverty alleviation and economic development.”

 

The authors recommend the creation of a new entity— International Forest Conservation Corporation—to take on the following functions:

 

  • Negotiate and monitor bilateral agreements with developing nations
  • Build capacity and market-readiness in developing nations to prepare countries to participate in global carbon markets
  • Verify benefits for local people and environmental integrity
  • Serve as financial intermediary to negotiate prices and purchase verified emissions reductions
  • Monitor volume of offsets to lessen price volatility and maintain market price signals that drive innovation
  •  

    Read Purvis, Kopp, and Stevenson’s Managing Climate-Related International Forest Programs.

    Published: Jun-24-09 | 0 Comments

    Jun23

    Adapting to Climate Change: U.S. Coastal and Marine Resources

    Adaptation, Oceans, United States

     

    Climate change is expected to have particularly devastating effects on marine and coastal resources as temperatures and sea levels rise. These environmental changes could lead to ecological impacts like coral bleaching, species invasion, changes in biodiversity, and reduced biological productivity.

     

    Adapting to changing oceans remain a key concern for members of the international community (especially small island nations) as well as domestic policymakers.

     

    In "An Adaptation Portfolio for the United States Coastal and Marine Environment," RFF University Fellow James Sanchirico and David Kling of the University of California-Davis examine a range of public policies to fortify natural and man-made systems against the impacts of climate change and variability for marine and coastal environments within the United States and its territories.

     

    The portfolio of policy options proposed by the authors contains a number of adaptation strategies for marine and coastal resource administrators. Among their suggestions: keeping strategic retreat (also known as abandonment) in play. The option, while logical from a financial perspective, is often politically unpalatable, according to Sanchirico and Kling:

     

    "Although abandonment or the strategic retreat from a place is a politically difficult position to take that has many potential distributional and social justice consequences, the question of if and when to retreat needs to be in the forefront of the dialogue on adaptation policies. This is true for decisions regarding coastal habitat restoration in the face of sea level rise, habitat protections, and development in highly- vulnerable locations such as barrier islands. With abandonment not in the feasible set of policies, cost‐effective adaptation policies will remain elusive."

     

    An Adaptation Portfolio for the United States Coastal and Marine Environment,” is an installment from a six-part series of U.S. climate change adaptation policy reports.

     

    Tiffany Clements is managing editor of Weathervane.

    Published: Jun-23-09 | 0 Comments

    Jun22

    The Lifecycle Measurement Dilemma

    CO2, Cap and Trade, Congress, Waxman-Markey, Lifecycle Costing
     
    Image courtesy vgm8383 via flickrCatchphrases, however tiresome their proliferation, can alert us to important issues.  Take "carbon footprint,” an idea now routinely mentioned in corporate ads, political discourse, and environmental advocacy. 
     
    Recently a new and very important addition to the catchphrase glossary—lifecycle analysis—has morphed from academic writing to climate policy concerns. Indeed it is embodied in a number of current legislative proposals—among them the Waxman-Markey energy bill.

    The concept, in principle, is straightforward.  To calculate CO2 emissions associated with use of coal to produce electricity, you shouldn't just consider emissions during combustion in the power plant but also account for the energy (and CO2 emitted) in transporting the coal from mine to generating station.  Or, you can't just revel in CO2 absorbed (through photosynthesis in the growth stage) to claim carbon "neutrality" when producing corn-based ethanol.  You've got to account for how much energy is used in the ethanol distillery and, beyond that, how much (locked in) carbon is released from soil when planting corn.  If such releases are large, they can negate the “offsets” designed to compensate for excess releases from conventional energy combustion activity.


    The scope of how wide a net should be cast to catch indirect sources of emissions is anything but clear-cut. (In the case of ethanol land requirements may remove acreage devoted to food, whose cost may rise—yet one further indirect effect.) So, here we confront the dilemma of shifting from lifecycle costing as an analytical concept to a factor susceptible to unambiguous and enforceable policy and legislation. Indeed, a recent and widely-reported discord between Reps. Waxman and Peterson (respectively, Chairs of the House Energy and Commerce Committee and the Agriculture Committee) spotlights precisely concerns over the calculation of lifecycle biomass emissions and the appropriateness of EPA’s role as the monitoring agency.


    Climate policy complications are not limited to carbon-containing resources. Non-CO2 greenhouse gases, while contributing less to global warming than carbon dioxide, cannot be ignored. They include methane, nitrous oxide, and a certain class of hydrofluorocarbons. (Combining the four into a single metric, denoted as “CO2e,” involves weights based on the potency of a particular gas, coupled to its residence time in the atmosphere.) Lifecycle and CO2e measurement can often figure jointly in a given situation. Production of fertilizer involves carbon-containing energy inputs like natural gas; application of fertilizer in farming can give rise to emissions of nitrous oxide. The carbon dioxide-equivalent measure gets us out of the apples-vs.-oranges bind.


    Workable ways of dealing with the lifecycle and carbon dioxide-equivalence problems can no doubt be overcome. But we’re not there yet—neither in the case of domestic climate policy, nor in the more formidable task of harmonizing multi-country climate mitigation strategies.


    More particulars on CO2e can be found on this EPA fact sheet. An exhaustive body of data and information is contained in the EPA Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2007, April, 2009.


    Joel Darmstadter is a senior fellow at Resources for the Future. Since joining RFF in 1966, his research has centered on energy resources and policy.

    Published: Jun-22-09 | 0 Comments

    Jun18

    Is Free Allocation to Electricity Consumers the Best for Households?

    Allocations, Cap and Trade, Waxman-Markey

     

    Free allocation of allowance value to electricity local distribution companies (LDCs) could offset the lion’s share of the increase in electricity prices that would otherwise arise under a cap-and-trade program. However, the ultimate effect on households is uncertain: Does free distribution to LDCs make households better or worse off compared to other approaches to compensation?

     

    To consider this question we examined three compensation options using detailed electricity market modeling coupled with a distributional analysis of impacts across regions and income groups.  Analysis accounted for changes in supply and demand side investment and behavior in the electricity sector that could be expected by 2015.

     

    Our models included:

     

    Assuming conventional electricity pricing and behavior for all customer classes.

     

    Separating fixed and variable charges and assume rational behavior by industrial and commercial customers.

     

    Returning value that would be given to LDCs to households as a per capita, nontaxable dividend.

     

    Our simulation modeling indicates that the assignment of 30 percent of allowance value to LDCs raises the costs of climate policy by $157 per household compared to providing a dividend of the same magnitude directly to households. If there is widespread reform of electricity pricing by separating fixed and variable charges, and if industrial and commercial customers respond rationally, the cost per household (as compared to providing a dividend of the same magnitude) falls to $66. There is significant redistribution of income from lower income to upper income households because of the allocation to LDCs when compared to providing dividends.

     

    Read a detailed report of our latest modeling here.

     

    Rich Sweeney and Josh Blonz are a research assistants at Resources for the Future and regular contributors to Common Tragedies.

     

    Dallas Burtraw is a senior fellow. His research interests include the design of environmental regulation, the costs and benefits of environmental regulation, and the regulation and restructuring of the electricity industry.
    Published: Jun-18-09 | 0 Comments

    Jun17

    National Climate Assessment: Climate Change Underway, More Adaptation Research Needed

    Adaptation, Climate Science, United States

    Image courtesy NASA's Visible EarthClimate change is underway in the United States and expected to continue with far-reaching effects if unmitigated—from thawing Alaskan permafrost, to declining air quality in the Northeast, to rising sea levels encroaching on Pacific Island regions—according to a new report from the U.S. Global Climate Research Program. (Key findings here)


    “Global Change Impacts in the United States,” explores possible impacts explores global climate change on specific U.S. regions and sectors, including human health, energy, water, and agriculture.


    The report’s authors focus largely on scientific observations and projections for the future impacts, but say a successful climate change response strategy will include both mitigation and adaptation efforts.  The report calls further adaptation research saying, “In most cases, there is currently insufficient peer-reviewed information to evaluate the practicality, effectiveness, costs, or benefits of these measures, highlighting a need for research in this area.”


    To help answers these questions, Resources for the Future has released a series of reports examining key issues U.S. for climate change adaptation policy. The first installment from RFF University Fellow John M. Antle explores the relationship between agriculture (one of the most-adaptable sectors, according to USCGRP), food supply and adaptation.


    In “Agriculture and the Food System: Adaptation to Climate Change,” Antle suggests with planning and support, farmers and ranchers can adjust to climate change and continue sustainable operations:


    The substantial role that the public sector has played in making the complementary investments that led to the success of U.S. agriculture in the 20th century raises a number of questions about appropriate policies in the context of climate change. The justification for public funding of infrastructure, research, and information systems was based on economies of scale as well as the public good aspect of basic research needed to develop agricultural technologies. Although a substantial public role remains in infrastructure, research, and outreach, it has diminished over time as private institutions have become increasingly capable of providing these services. A key question for policy is whether climate change justifies an expanded role in these areas or whether markets can stimulate adequate responses to the adjustments that will be required as the climate changes. There seems to be a particularly compelling case for the provision of public information about climate change, potential impacts, and adaptation strategies.

     

    Agriculture remains an industry with substantial public subsidies to producers of basic grain and fiber commodities, as well as various subsidies and incentives to encourage sustainable land management and to mitigate environmental impacts. Some policies, such as commodity subsidies, create disincentives for farmers to adapt to changing climate and economic conditions, but these subsidies are likely to be under political pressure, both because they increasingly go to large commercial farms and wealthy landowners and because they are incompatible with international trade agreements.

     

    Agriculture and the Food System: Adaptation to Climate Change,” is an installment from a six-part series of U.S. climate change adaptation policy reports.

     

    Tiffany Clements is managing editor of Weathervane.

    Published: Jun-17-09 | 0 Comments

    Jun16

    Obama Administration Puts FutureGen Back in Play

    Obama Administration, CCS, Coal, FutureGen

    Not surprisingly, the Obama administration has revived the planning process for FutureGen, a demonstration project to generate electricity with coal but without carbon emissions into the atmosphere.
     
    Energy Secretary Steven Chu announced late last week a restart of work on engineering design and on a funding plan. He said that he foresees a final decision early next year on whether to proceed with construction. FutureGen is a partnership between the federal government and a consortium of large American and foreign utilities and mining companies, including a Chinese utility. The program was initiated by the Bush administration, which suddenly stopped it early last year on grounds that the cost estimates were excessive.
     
    But it’s not surprising that the present administration has returned to it, for FutureGen represents a solution—and so far the only visible solution—to an urgent dilemma of energy and environmental policy. The United States, like the world generally, relies on coal to generate nearly half of its electricity. But burning coal emits massive amounts of carbon dioxide into the atmosphere, and carbon dioxide contributes to global warming.
     
    FutureGen would construct a coal-burning generating plant in Mattoon, Illinois, to demonstrate the technology, known as carbon capture and sequestration (CCS), to capture the carbon dioxide and seal it permanently underground. The concept is clear in theory but it has never been tried on an industrial scale, and no private company wants to bear the risk of experimenting. Under FutureGen, the government would provide $1 billion already appropriated by Congress in the economic recovery legislation, and the consortium has pledged an additional $400 million.
     
    The idea of developing and demonstrating technology to sequester carbon is widely popular in Congress, where many members acknowledge the need to reduce carbon dioxide emissions but see no way to meet the country’s demand for electricity without coal. The Waxman-Markey bill to slow climate change would set up a permanent Carbon Storage Research Corporation, funded by a charge on burning fossil fuels.
     
    John Anderson is Resources for the Future’s journalist in residence. He previously explored FutureGen in this 2008 Weekly Policy Commentary.
    Published: Jun-16-09 | 0 Comments

    Jun15

    Experts Explore Challenges in Offset Market Design

    Carbon Market, Waxman-Markey, Offsets
     
    As the American Clean Energy and Security Act makes its way through the House Agriculture and Ways and Means Committees, offsets continue to crop up as a major point of contention. While understanding of offset markets matures, RFF continues to identify and address important economic and logistical issues of concern.

    Last month, RFF hosted a joint workshop with the EPA entitled “Modeling the Costs and Volumes of GHG Offsets.” Experts in forest, non-CO2 gas, and agriculture offsets came gathered for a technical discussion about the state of offset modeling and how it can contribute to the design and implementation of offset policy. The presentations from each panel are available here. Some of the major themes highlighted by the panelists include:

    Forestry

    • Forest offsets show huge potential to sequester carbon and control costs, but there are many challenges to implementation.
    • Threats to the integrity of offsets include tracking and measuring emissions leakage, establishing clear additionality, and assuring reliable levels of permanence.
    • Heavy use of forest offsets suggest major land use changes both in the U.S. and in other countries, though land conditions could substantially affect the potential for offset usage.
    • Contracts may be useful in some situations for dealing with leakage, permanence and other issues, but national standards may be needed in other contexts.

    Non-CO2 gases

    • Non-CO2 gases are major climate forcings and their mitigation costs are often lower than energy-related CO2.
    • The economics of individual projects are relatively well-understood, but the sectoral cost curves are less clear.
    • More guidance from government is necessary to reduce investment risk and encourage early action on offset opportunities.

    Agriculture

    • Models indicate that agriculture offsets will not play as big a role domestically as forestry-related offsets, but higher prices will bring more agriculture offsets into the market.
    • Agriculture offset opportunities may exist in areas where afforestation or other types of offsets are not realistic.
    • Technology may play a key role in providing more offsets.
     
    Daniel Morris is a research assistant at Resources for the Future and regular contributor to Common Tragedies.
    Published: Jun-15-09 | 0 Comments

    Jun12

    An Adaptation Update from Bonn Climate Talks

    Adaptation, COP-15, International

     

    Today marks the end of the latest round of climate negotiations under the UN Framework Convention on Climate Change in Bonn, Germany. The talks over the past two weeks marked the shift from largely theoretical debates on key climate issues including emissions targets, developing country commitments, technology transfer, and adaptation to concrete text. The formal negotiations included a reading of the draft negotiating text for a successor to the Kyoto Protocol. {Text in brackets like these} indicates words or topics where different countries (parties) have yet to settle on common ideas or vocabulary.

     
    Interestingly, the first reading of the text started with the sections on adaptation, the area where there is the shortest history in the negotiations and perhaps the least consensus to date. The good news is that this early start on adaptation means that countries have actually been able to confront some particularly thorny questions head-on, including:

    1. How much money is actually required to support adaptation? In other words, what will adaptation cost? Various studies suggest numbers ranging from less than $20 to over $80 billion USD annually.

    2. How can that money be most constructively channeled to developing countries? Dialogue has centered on the strengths and weaknesses of existing vehicles, such as the Global Environment Facility, new direct access options, and setting up of national climate trusts.

    3. Which countries should be prioritized? New discussions are focused on defining "most vulnerable” countries separate from existing categories, such as "least developed countries" and “small island states”

    4. What are possible mechanisms to ensure adaptation funds are provided additional to traditional development assistance? What are the implications of separating development and adaptation projects and practices on the ground?

    5. How can adaptation funding flows and activities be monitored, reported, and verified (MRV)? Are existing institutions and vehicles, such as the National Communications, adequate?

    The bad news is that we are nowhere near resolving many of these issues as yet. A series of parallel meetings at the halfway point of the negotiations (calledDevelopment and Climate Day) also tackled some of these topics, but even outside the negotiations the presentations and discussions raised more questions than they resolved. The last question on MRV was particularly contentious.

    The challenge lies in the problem separating out monitoring of adaptation funding allocation (has money been disbursed, as promised?) from the monitoring of activities on the ground (have projects actually reduced vulnerability?). Both of these questions are extraordinarily difficult to answer, let alone, to answer as well as we will be needed to design effective adaptation finance mechanisms. In many cases, successful adaptation means that negative outcomes were avoided. This suggests that we will be faced with measuring adaptation benefits of climate impact—such as deaths from droughts, floods, or severe weather—that haven’t happened.
     
    What’s Next?

    A second reading of the adaptation text took place on Tuesday, June 9, and saw several countries add or correct their own contributions. However, official debate between countries and within groups, such as the G-77 and China, will not resume until the next round of climate talks in August.

    We are still learning from our experiences with measuring the effectiveness of international development activities. As negotiators return to the details of the adaptation text, these lessons are likely to emerge within the political debates on adaptation that will continue from now until the landmark negotiations in Copenhagen this coming December.

    Shalini Vajjhala is a fellow at Resources for the Future where she studies the social impacts of large-scale physical and economic phenomena.
    Published: Jun-12-09 | 2 Comments

    Jun11

    Perspectives From Bonn: EU-U.S. Leadership in International Emissions Trading

    Carbon Market, COP-15, International

     

    In a side event at the most recent round of negotiations of a comprehensive international climate agreement a panel of negotiators, policy experts and researchers gathered to discuss the framework of a global carbon trading market and opportunities for leadership from the U.S. and European Union in the design and implementation of such a scheme.


    At “Forging an EU-US Alliance: What Does a Comparable Effort in a Global Carbon Market Mean?,” (sponsored by the Mistra Foundation Climate Policy Research Program) panelists discussed roles for the EU and U.S. broadly in global markets for emissions and specifically examined offsets and sectoral crediting mechanisms.


    The Bonn event followed an Earth Day workshop in Washington (sponsored by CLIPORE, RFF, and the Embassy of Sweden) that highlighted specific research issues like competitiveness, leakage, and offsets and facilitated broader discussions of the relationship between the European Union and the U.S. in climate change negotiations.


    In her remarks RFF Fellow Shalini Vajjhala said international market design presents, “… a Russian doll of issues—from the international, to the national, to the regional, to the sectoral.”


    She pointed out that many market mechanisms are intended to be transitional. “Yet,” Vajjhala said, “there is very little consensus on how and when to make that transition.” 


    Underscoring key points from the Earth Day event, Vajjhala said forging a renewed trust between the EU and U.S., based on sound domestic action and specific targets, will be key to successful implementation of any international climate change agreement and determining just what transitional instruments might transition toward. 


    Find a full event recap from the UNFCC here, and video coverage of the panel discussion here.


    RFF Fellow Shalini Vajjhala was in Bonn, Germany for the most recent round of UNFCCC negotiations. She’ll share an update on adaptation in the most recent treaty draft here Friday.

    Published: Jun-11-09 | 0 Comments

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