Feb09

Tuesday's Reads

Morning Reads
 
AP: Obama administration officials have proposed creating a new federal agency to address the challenges of climate change

WaPo: Despite the devastating toll it took on human life, the earthquake that shook Haiti isn't likely to have a huge impact on that nation's ecosystems

The Hill:Top White House advisor David Axelrod is urging the GOP to get moving on U.S. climate legislation.

NYT: The top U.N. climate scientist is facing an uphill battle after a series of unflattering discoveries have called his agency's credibility into question

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Published: Feb-09-10 | 0 Comments

Feb08

Obama Shifts and Speeds up Clean Coal Strategy

CCS, FutureGen, Obama Administration

 

President Obama set up a federal task force on Feb. 3 to accelerate the development of technologies to capture and store carbon emitted by coal-fired electric utility generators. It looks as though the administration is having second thoughts about a clean-coal strategy that depends crucially on one pilot project, the plant dubbed FutureGen.

 

The president's memo directed the task force to prepare a plan in 180 days "to overcome the barriers to the widespread, cost-effective deployment of CCS (carbon capture and storage) within 10 years, with a goal of bringing 5 to 10 commercial demonstration projects online by 2016."

 

That is an extremely ambitious target. The reason for the urgency is that no one has come

up with a plausible way to meet this country's growing demand for electricity without

continuing to rely heavily on coal. Any progress in slowing climate change consequently

depends on finding ways to burn coal without emitting carbon dioxide into the atmosphere.

 

Responding to that logic, in 2003 President George W. Bush launched FutureGen as a

public-private partnership to build a plant that would demonstrate CCS. His administration

canceled it in early 2008, on grounds that it would be too expensive. Obama's energy

department restarted the planning process last year, promising a final decision early this year

on whether to proceed with construction. But there was no mention of FutureGen in the

president's recent memo.

 

The president may be heeding advice from technical experts—offered repeatedly over the

past several years— that focusing the whole policy on one experimental plant would be a

serious mistake.

 

"America's Energy Future," a report published last summer by the The National Research Council, warned:

 

Too little is known at present to determine which power-generation technologies and which storage options could best produce electricity after 2020 if carbon emissions were constrained. Reliable cost and performance data are needed, both for capture and storage, and they can be obtained only by construction and operation of full-scale demonstration facilities... Because of the variety of coal types and the myriad of technology-conversion options for coal, natural gas and biomass fuels, a diverse portfolio of demonstrations of CO2 capture technology will actually be required. Similarly, to sort out storage options and gain experience with their costs, risks, environmental impacts, legal liabilities, and regulatory and management issues, it will be necessary to operate a number of large-scale storage projects in a variety of subsurface settings.

 

The NRC committee that wrote this report also said that if the country makes an

immediate start it should be possible to gain the necessary information and get 10 gigawatts

of CCS generation in place by 2020.

 

The Obama administration is also well aware that CCS projects are already under way in

many other countries, notably in Europe and China, and further indecision here risks putting

the U.S. at a technological disadvantage.

 

The president's memo contained a reminder that passage of cap-and-trade legislation,

which would put a price on carbon emissions, will be necessary to induce utilities to use CCS

technology. "Ultimately," the memo said, "comprehensive energy and climate legislation that

puts a cap on carbon pollution will provide the largest incentive for CCS because it will

create stable, long-term, market-based incentives to channel private investment in low carbon

technologies."

 

J. W. Anderson is Resources for the Future’s journalist in residence. He previously explored FutureGen in this Weathervane post and this 2008 Weekly Policy Commentary.

Published: Feb-08-10 | 0 Comments

Feb08

Monday's Reads

Morning Reads
 
NYT: A group of trucking and petroleum interests in California have filed suit against the state of California saying new emissions reductions standard will make business prohibitively expensive

WaPo: The Cape Wind project continues to face problems

ClimateWire via NYT: Increasingly a pipe dream and defined in a variety of ways, climate policy watchers are distancing themselves from the notion of a legally binding treaty for international climate change action. Meanwhile, even if all nations took the actions they committed to at the end of last month, it could be tough to tell, according to DotEarth. 

NYT: Hacked emails are just the latest problem faced by the EU's carbon trading system

The Hindu: India's environmental minister says the nation is considering dropping its stance that per-capita emissions should form the baseline for consideration of international reductions obligations given the disparity between its overall emissions and the emissions released per citizen. 

Climate Compass: With China leading the way on green tech manufacturing, U.S. business leaders are encouraging members of the Obama Administration to avoid sparking a trade war through protectionist policies

And, from Discovery News, some troubling news about sea ice
 
Did we miss something today? Let us know, leave a comment or email clements@rff.org.
Published: Feb-08-10 | 0 Comments

Feb05

The Week that Was: 2/1/2010-2/5/2010

In Case You Missed It

 

Backing biofuels and calling for CCS: President Obama announced plans Wednesday to invest time, energy and funding in developing the next generation of American energy technology. He’s placing his bets on biofuels and carbon capture and sequestration.

 

Awfully good timing: According to a new biomass life cycle analysis published in the Journal of Environmental Science and Technology, stations retrofitted to run on a mixture of coal and dried wood pellets can produce cost-competitive, emission-reduced electricity even without the advent of a cap-and-trade system.

 

Regulation please: A planned California power plant is likely to be the first in the nation to comply with federal greenhouse gas emission requirements. The plant will produce 50 percent fewer greenhouse gas emissions than even the most advanced coal-fired plants and will emit 25 percent fewer heat-trapping gases than the California Public Utilities Commission's standard.

 

Anything you can do, we can do too: Following the Sen. Lisa Murkowski’s lead, Reps. Collin Peterson (D-Minn.), Ike Skelton (D-MO) and Jo Ann Emerson (R-MO) introduced legislation to strip the EPA of its authority to regulate greenhouse gases under the Clean Air Act. It seems that the cohort put the measure in play to ensure the viability of the renewable fuel industry.

 

RPS path to jobs?: According to a new report from RES-Alliance for Jobs, a coalition of green power businesses and trade groups, a national renewable portfolio standard of 25 percent by 2025 would create three times more jobs than weaker measures Congress is considering.

At least D.C. can blame something for the impending snow doom: The extra volatile winter weather we’ve all been experiencing is a sign of how climate change disrupts long-standing patterns, according to a new report from the National Wildlife Federation.

 

Did we miss the big story of the week? Let us know. Leave a comment below or email clements@rff.org.

Published: Feb-05-10 | 0 Comments

Feb05

SEC Recognizes Climate Change as Material Business Risk

Risk, SEC

 

Roulette wheel image courtesy conorwithonen via Flickr Last week the Securities and Exchange Commission took a significant leap into the climate change debate by clarifying the climate-related disclosure requirements for publicly traded firms. Investors and shareholder rights advocates have been calling for increased disclosure about the impact of climate change risks for several years—as evidenced by the emergence of the Carbon Disclosure Project (and existing reporting frameworks such as the Global Reporting Initiative), numerous shareholder resolutions, litigation, as well as petitions by investor groups to the SEC. The new SEC Guidelines do not make new rules—they simply provide guidance about how existing disclosure standards should be applied in the case of climate.

 

The basic idea behind the guidelines is that companies should disclose “material” information “if there is a substantial likelihood that a reasonable investor would consider it important in deciding how to vote or make an investment decision …” The SEC Guidelines recognize that there are several different ways in which climate change might have a material impact on companies, including: direct increases in the price of energy and/or carbon that might come about through legislation or regulation, physical impacts on plant and equipment depending upon geographic location of firm’s plants, availability of supply for essential inputs, and changes in consumer demand.

 

In perhaps its strongest-worded statement on current practice, the SEC Guidelines noted that many (but not all) firms are already disclosing significant information through voluntary reporting standards. However, it noted, “Although much of this reporting is provided voluntarily, registrants should be aware that some of the information they may be reporting pursuant to these mechanisms also may be required to be disclosed in filings made with the Commission pursuant to existing disclosure requirements.”

 

While the impact of these new SEC Guidelines is difficult to predict empirically, this is a very significant step toward making climate change risks more transparent and comparable across firms. In another context, mandatory toxic chemical disclosures had both a significant effect on firm stock prices as well as an impact on overall emissions.[1] Thus, if new material disclosures are made as a result of this ruling, we can expect both changes in market value (as investors adjust their expectation about the future profits of firms) and changes in firm behavior (as firms taken on new initiatives to reduce the impact of climate change on their bottom line).

 

Mark Cohen is vice president for research at Resources for the Future.


 


[1] See for example, Konar and Cohen (1997), "Information As Regulation: The Effect of Community Right to Know Laws on Toxic Emissions," 32 Journal of Environmental Economics and Management 109-124.

Published: Feb-05-10 | 0 Comments

Feb05

Friday's Reads

Morning Reads
 
GreenWire via NYT: Permitting was approved to make a future California power plant the first in the nation to be built in compliance with federal greenhouse gas limits. WaPo has reaction to the announcement

Reuters
: A new reports finds a national renewable portfolio standard could create three times more jobs than if Congress takes a less aggressive approach to climate and energy legislation. 

FT: A recap of the rocky week for cap and trade

NYT: Britain is kicking around ideas to reform its energy sector and Canada isn't feeling optimistic about nuclear. 

WaPo: Some good snowstorm reads for those soon-to-be stuck inside in the Mid Atlantic

And check out the latest Climate Post, more on the IPCC, a snapshot of the budget and more. 

Did we miss something today? Let us know, leave a comment or email clements@rff.org.
Published: Feb-05-10 | 0 Comments

Feb04

Administration Doubles Down on Biofuels, CCS

Biofuels, CCS, EPA, FutureGen, Obama Administration

 

Striking while the post-State-of-the-Union/budge release iron is hot, President Obama Wednesday unveiled details of his administration’s plans for the next generation of energy technology. With the FY 2011 budget backing loans for the development of nuclear power plants eating up several days of the news cycle, yesterday’s announcement shifted energy and environment watchers’ gaze toward biofuels and carbon capture. From the Environmental Protection Agency’s release:

 

The EPA has finalized a rule to implement the long-term renewable fuels standard of 36 billion gallons by 2022 established by Congress. The U.S. Department of Agriculture has proposed a rule on the Biomass Crop Assistance Program (BCAP) that would provide financing to increase the conversion of biomass to bioenergy. The President’s Biofuels Interagency Working Group released its first report – Growing America’s Fuel. The report, authored by group co-chairs, Secretaries Vilsack and Chu, and Administrator Jackson, lays out a strategy to advance the development and commercialization of a sustainable biofuels industry to meet or exceed the nation’s biofuels targets.


In addition, President Obama announced a Presidential Memorandum creating an Interagency Task Force on Carbon Capture and Storage to develop a comprehensive and coordinated federal strategy to speed the development and deployment of clean coal technologies. Our nation’s economy will continue to rely on the availability and affordability of domestic coal for decades to meet its energy needs, and these advances are necessary to reduce pollution in the meantime. The President calls for five to ten commercial demonstration projects to be up and running by 2016.

 

The EPA’s move on biofuels puts the Obama administration in compliance with the Energy Independence and Security Act of 2007 (EISA) but finding the right alchemy of fuels to meet the standard is likely to be a subject of political and logistical debate, not to mention the difficulties in calculating the GHG implications.

 

As for CCS, yesterday’s announcement regarding the proverbial “clean coal” marks some of the first official murmurs from the White House on the technology since it announced its plans to kick FutureGen back in gear last summer. I’ll be interested to see what the president’s task force can pull together in a 180 days that will put CCS within reach in the next five years.

 

Tiffany Clements is managing editor of Weathervane.

Published: Feb-04-10 | 0 Comments

Feb04

Thursday's Reads

Morning Reads
 
NYT: President Obama offered some insight into his plans Wednesday for the U.S. renewable fuel portfolio. Thanks to newly-released rules from the EPA, the nation's plans are likely to rely heavily on corn-based ethanol, from WaPo. But, according to GreenWire via NYT, those rules could face some opposition on Capitol Hill

GreenWire via NYT: EPA officials say they're on pace to release their emissions tailoring rules for automobiles as early as next month. 

FT:  Is cap and trade doomed in the U.S.? Not so fast, Sen. Lindsey Graham says (from TNR)

Reuters: A pair of powerful House committee chairmen say it's Congress, not "unelected bureaucrats," who should be responsible for designing rules to keep greenhouse emissions in check and have introduced legislation to prevent the EPA from regulating GHGs

JakartaGlobe: Despite being positioned to reap great benefits from international emissions offset programs, Indonesia is struggling to capitalize

GreenWire via NYT: The Federal Trade Commission is expected to make some changes to its environmental marketing guidelines, updating the rules for the first time since 1998 to crack down on so-called "greenwashing". 

And, in a snapshot from the future, physicists have figured out how to teleport energy

Did we miss something today? Let us know, leave a comment or emailclements@rff.org.
Published: Feb-04-10 | 0 Comments

Feb03

Cutting Fossil Fuel Subsides to Cut Emissions

Oil, Subsidies, Renewables

 

President Obama’s FY 2011 budget proposal puts the kibosh on some $39 billion in tax breaks for oil and coal companies over the next 10 years. The president seems to be taking a step in the direction of making good on last year’s G20 agreement to phase out subsidies for fossil fuels.

 

The connection between a fossil fuel phase-out and global emissions reductions is undeniable, according to RFF Senior Fellow Ray Kopp. He explains in that in order to meet worldwide emissions reductions, fossil fuel consumption will have to be curtailed. One way to encourage using less, reducing subsidies on fossil fuel costs, he says:

 

Fossil energy subsidies hamper all government efforts to increase energy conservation, provide a viable market for renewable energy sources, and accelerate the transition to a low carbon economy. The OECD estimates that removal of the $300 billion of consumer subsidies would reduce carbon dioxide emissions by 13 percent in 2050.

 

Of course, removal of the subsidies is easier said than done. Consumer energy subsidies are very popular among the groups receiving them and therefore politically difficult to dismantle. Moreover, they are seen as government support for poor households. It is arguable whether a significant portion of these subsidies (for example gasoline) target very low-income households; but, in some countries the only link households have to the monetary based market world is through the purchase of fossil fuels. In these cases the fossil markets provide governments with a mechanism for income support—perhaps the only mechanism.

 

A U.S. proposal to end fossil fuel subsidies to oil, diesel and gas “in the medium term” was accepted by world leaders at a G-20 summit in Pittsburgh in September. While no deadline was set, the action by the G-20 to end subsidies is clearly a step in the right direction, but the political hurdles and issue of poor household income support must be addressed and overcome.

 

Read Kopp’s entire post, “Fossil Subsidies: Yet Another Call for Getting Prices Right” hereRaymond J. Kopp is a senior fellow and director of Resources for the Future’s Climate Policy Program.

Published: Feb-03-10 | 0 Comments

Feb03

Wednesday's Reads

Morning Reads
 
NYT: California officials are preparing to install a system of sensors to measure and monitor changes in emissions and pinpoint major sources of greenhouse gas emissions. 

GreenWire via NYT: Obama administration officials are putting the final touches on a policy that would allow the EPA to implement an emissions standard that would force officials to assess the lifecycle emissions of biofuels like corn-based ethanol.

TPM: After keeping a stiff upper lip for months, President Obama acknowledged yesterday at a town hall meeting in Nashua, NH the political reality that the Senate may be unable to pass comprehensive climate and energy legislation that includes a cap-and-trade system.

WSJ: What better way to celebrate the 50th anniversary of commercial nuclear power than to boost its presence around the world?

AFP:Fifty-five nations including the world’s top carbon polluters have registered their commitments to combat global warming. The pledges from both industrialized and developing countries for cutting greenhouse gases up to 2020 cover nearly 80 percent of total emissions.

And, according to NYT's DotEarth, Pentagon officials are for the first time considering the national security implications of climate change. Turns out, there could be some problems

Did we miss something today? Let us know, leave a comment or email clements@rff.org.
Published: Feb-03-10 | 0 Comments

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