Leading up to COP26: U.S. and China make important pledges; activists demand fossil-free future

As the IPCC Conference of Parties (COP26) in Glasgow approaches on Oct. 31 to Nov. 12, international leaders are grabbing microphones, activists are lobbying, and important new reports are being released .  A chronology of some important highlights:  

On September 13, an Open Letter was delivered to the UN General Assembly, calling for a Fossil Fuel Non-proliferation Treaty. Signed by over 2000 academics and scientists from 81 countries, the Letter calls  for international cooperation on climate change and an end to new expansion of fossil fuel production in line with the best available science, and a phase-out of existing fossil fuel production of fossil fuels “in a manner that is fair and equitable”. 

On September 16, World Resources Institute and Climate Analytics released  Closing the gap: The impact of G20 climate commitments on limiting global temperature rise to 1.5°C, which offers hope. The report argues that if G20 countries set ambitious, 1.5°C-aligned emission reduction targets for 2030 and reach net-zero emissions by 2050, then global temperature rise at the end of the century could be limited to 1.7°C.  This hinges on the fact that G20 countries account for 75% of global GHG emissions.

A new, related report from the UNFCC is far less hopeful – in fact, Greta Thunberg , as quoted in Common Dreams, states that “this is what betrayal looks like”. The Synthesis Report of Nationally determined contributions under the Paris Agreement compiled the emissions reduction pledges of 191 countries as of July 31 2021, and evaluated and analyzed their targets and plans .  The bottom line: “The total global GHG emission level in 2030, taking into account implementation of all the latest NDCs, is expected to be 16.3 per cent above the 2010 level.”  Such a course would lead to a “catastrophic” increase in average temperatures by 2.7 degrees C. by the end of the century. While Argentina, Canada, the European Union, United Kingdom and United States strengthened their 2030 emission reduction targets (compared to the NDCs they submitted five years ago),  China, India, Saudi Arabia and Turkey have yet to submit their updated NDCs. The latter countries are responsible for 33% of global greenhouse gases.

On September 18, the EU and U.S. launched a Global Methane Pledge, promising to reduce methane emissions by 30% from 2020 levels by 2030 – which is a step in the right direction, but fails to meet the target of 45% reduction in this decade , as called for by the UNEP in its Global Methane Assessment Report released in May 2021.  However, according to Inside Climate News, “Global Methane Pledge Offers Hope on Climate in Lead Up to Glasgow “, and The Conversation U.S. describes “Biden urges countries to slash methane emissions 30% – here’s why it’s crucial for protecting climate and health, and how it can pay for itself”  ( Sept. 17). It remains to be seen if Canada will join the eight countries already signed on to the new Methane Pledge; in Canada, the existing regulations for methane emissions from the oil and gas industry  target a reduction by 40% to 45% below 2012 levels by 2025. The Liberal election platform pledged to “Require oil and gas companies to reduce methane emissions by at least 75% below 2012 levels by 2030 and work to reduce methane emissions across the broader economy.”  (More Canadian context appears in The Energy Mix,  and from the WCR here, which explains the federal-provincial equivalency agreement re methane regulations.

The opening of UN General Assembly on September 20, began with a fiery speech by U.N. Secretary General António Guterres about global inequality, saying that the world is “sleepwalking”  to climate change disaster and pleading yet again for urgent action and  international cooperation.  Discussions around Covid-19, racism, and climate change are creating the “sombre mood” of the meetings . Yet speeches by U.S. president Biden and China’s Xi Jinping offer hope for climate change actions:

On September 21, US president Biden’s address to the General Assembly included a pledge that the US will become the world’s leading provider of climate finance, promising to double U.S. aid to $11bn by 2024.  Some reaction to the pledge was sceptical, given that the $100 billion in aid already pledged by developed countries has not been achieved. Canada is one of the worst offenders, with an average contribution only 17% of its fair share in 2017 and 2018, according to  “Climate Finance Faces $75-Billion Gap as COP 26 Looms 1,000 Hours Away” (The Energy Mix, Sept. 21).

Also on September 21, China’s leader Xi Jinping announced to the United Nations General Assembly that China “will not build new coal-fired power projects abroad.”  The impact, as explained here by the New York Times, can be huge, given that  “China built more than three times more new coal power capacity than all other countries in the world combined” last year. “‘Betting on a low-carbon future’: why China is ending foreign coal investment” (The Guardian, Sept. 22) highlights two important points: 1. the announcement signals that China is serious about climate action even though it hasn’t confirmed attendance at COP26, and 2. Real climate progress lies in reduction of China’s domestic coal production, which is 10 times higher than foreign production according to the report in Germany’s DW . So far, China has not specified plans re domestic production, nor re the timing of its commitment to end coal financing.

On September 22, a statement by over 200 civil society organizations from around the world called on progressive governments and public finance institutions to launch a joint commitment to end public finance for fossil fuels at COP26.  According to the spokesperson for the International Institute for Sustainable Development, said: “While a growing number of governments are turning away from coal and oil, international financial institutions are still providing four times as much funding for gas projects as for wind or solar.”  The full statement and list of signatories is here and includes 28 Canadian organizations – including the Canadian Union of Postal Workers (CUPW) and the Syndicat de la fonction publique et parapublique du Québec (SFPQ).

#Wemaketomorrow is an activist campaign coordinated by the Trade Union Caucus of the COP26 Coalition. Planning and actions for COP26 are already underway at https://www.wemaketomorrow.org/ . The main COP26 Coalition website organizes The People’s Summit, “a global convergence space for movements, campaigns and civil society”, which this year, because of Covid-19, will feature in-person and virtual events.

More to come!

Coal transition case studies argue for anticipation and early action

coal transitions report sept 2018Implementing coal transitions:  Insights from case studies of major coal-consuming economies , published on September 5, brings together the main insights from the Coal Transitions project, the international research program led by IDDRI and Climate Strategies.  The report provides an overview of the drivers of coal transition across the world (with brief mention of the Powering Past Coal Alliance and Canada), and concludes that coal transition is already happening, and that it is technically feasible and affordable. The report then presents case studies of coal transition in six countries: China, India, Poland, Germany, Australia and South Africa.

The analysis concludes that there are multiple policy options which have proven effective for coal transition, but warns that the meaningful consultation and participation of stakeholders early on in the decision-making process is critical to success. In an explanatory blog,  lead author Oliver Sartor states that coal transition policies: “…. must be context-specific and agreed between the relevant parties. However, the crucial success factor is to anticipate rather than wait until the economics turns against coal. A good preparation can allow for younger eligible workers to be more easily placed into alternative jobs, for older workers to retire naturally, and for tailored worker reconversion and job-transfer programs for workers in the middle of their careers.”

In addition to the Synthesis report, national reports for each of the six countries are available from the IDDRI here.

Converting fleets to electric vehicles: examples include buses, UPS delivery, and the U.S. Postal Service

The federal government’s announcement of new fuel-efficiency standards for light-duty trucks and buses on June 14  presents an opportunity for electric vehicles in Canada, according to an article by Clean Energy Canada.  “Electric buses and trucks a big (rig) opportunity for Canadian innovators”   argues that the new regulations will  limit the lifespan of heavy- and medium-duty trucks in Canada, by requiring the older, more polluting vehicles to be replaced by cleaner vehicles. The article provides an overview of examples. electric school bus

Canadian examples: An article from Corporate Knights magazine in January 2018:  “The e-bus revolution has arrived”. In March, Winnipeg Transit released the first Report  on its Bus Electrification Demonstration Project   which began in 2015  ( summarized by the CBC here) . Winnipeg is home to the New Flyer Industries, which manufactures the battery-electric buses in use.  The government of Quebec announced its Sustainable Mobility Plan in April 2018, with an emphasis on transit and electrification.   New Flyer buses, along with those from Nova Bus from Quebec  are being tested in the Pan-Ontario  and Pan-Canadian Electric Bus Demonstration and Integration Trials , launched in April 2018 and coordinated by Canadian Urban Transit Research and Innovation Consortium (CUTRIC- CRITUC) .  Their CUTRIC-CRITUC news site provides updates; their 2018 Biennial Forum, Building Low-Carbon Smart Mobility Projects Across Canada,  gathered industry players in Montreal, June 21 and 22.

U.S. News:  A June 21 article in the New York Times cites many examples of electric fleet conversion.  “Buses, Delivery Vans and Garbage Trucks Are the Electric Vehicles Next Door” in the (June 21)  highlights the  Antelope Valley Transit Authority in Los Angeles County, which intends to replace all diesel buses with 80 fully-electric ones in 2018; the Chicago Transit Authority (planning to buy 20 electric buses) ; San Francisco ( will convert to electric-only  bus procurement starting in 2025, aiming for an all-electric fleet by 2035), as well as the  Los Angeles Sanitation department for garbage trucks, Duke Energy for pick-up trucks.  An article in Cleantechnica,  “UPS Places Order For 950 Workhorse N-GEN Electric Delivery Vans”  describes Workhorse products,  which include the  N-GEN  vans sold to UPS and which are also competing (with partner VT Hackney)  in the US Postal Service procurement process for Next Generation Delivery Vehicles.  The N-GEN vans offer an option to include the Horsefly autonomous delivery drones . workhorse electric van and drone

The Transportation Electrification Accord (TEA) was officially launched in Portland, Oregon at the EV Roadmap 11 conference on June 19. In fact, the Accord was first signed  in November 2017 , according to the Sierra Club  press release which describes it and lists the original signatories, including the International Brotherhood of Electrical Workers District Nine, Natural Resources Defense Council, Sierra Club, as well as Plug In America, and industry organizations Advanced Energy Economy, Energy Foundation, Enervee, Illinois Citizens Utility Board,  Proterra, and Siemens. Honda and General Motors signed on at the June 19 launch.

The “Accord” is a voluntary statement of eleven principles, meant to educate policymakers and inspire change. The first two principles are:  1.  There is a clear case on both policy and regulatory grounds for electrifying transportation, which can provide benefits to all consumers (including the socioeconomically disadvantaged), advance economic development, create jobs, provide grid services, integrate more renewable energy, and cut air pollution and greenhouse gases.

2. Electrified transportation should include not only light-duty passenger vehicles, but also heavy-duty vehicles (e.g., transit buses and delivery trucks), as well as off-road equipment (e.g., airport and port electrification equipment).

Globally:  A March 2018 report from Bloomberg New Energy Finance and the C-40 Leadership Initiative provides a great overview of statistics and analysis:  Electric buses in cities   and demonstrates the strength of China’s leadership.  The city of  Shensen has been seen as the poster child of this strength – for example, read the blog from the World Resources Institute in April 2018 “How did Shenshen China build the world’s largest electric bus fleet?“.   The Global EV Outlook 2018 released by the  International Energy Association at the end of May focuses mostly on the growth of personal vehicles, but reported that the stock of electric buses rose from 345,000 in 2016 to 370,000 in 2017 , (with electric two-wheelers at 250 million). Growth has been driven almost entirely by China, which accounts for more than 99% of both electric bus and two-wheeler stock.

 

Clean Energy is unstoppable – and China is in the lead

January 2017 began with an attention-getting report from Bloomberg New Energy Finance: “Solar Could Beat Coal to Become the Cheapest Power on Earth” .  Similarly, the Renewable Infrastructure Investment Handbook published  by the World Economic Forum states:   “ renewable energy technology, especially solar and wind, has made exponential gains in efficiency in recent years, enough to achieve economic competitiveness and, in an increasing number of cases, grid parity.”   A January 5 post by Clean Energy Canada,  “Clean Energy is too good a deal for Trump to Pass up ” , documents the economic and political  forces driving clean energy in the U.S., and offers this chart comparing the number of jobs in solar to the fossil fuel industries.

jobs-in-solar-vs-oil-and-gas-jan-2017

from Clean Energy blog post, “Clean Energy is too good a deal for Trump to pass up” (January 5, 2017)

And in an unprecedented move for a sitting President of the United States, Barack Obama has written “The Irreversible Momentum of Clean Energy”  in Science (Jan. 9), with an overview of his energy policy legacy, and making the case that market forces in the U.S. will carry it on.

A general consensus is that the clean energy train  has left the station, and China is driving that train.  A January 2017  report from the Institute for Energy Economics and Financial Analysis (IEEFA) is the latest to document the growing dominance of China in the renewable energy industry in   China’s Global Renewable Energy Expansion: How the World’s Second-Biggest Economy Is Positioned to Lead the World in Clean-Power Investment.  The report  states:   “The change in leadership in the U.S. is likely to widen China’s global leadership in industries of the future, building China’s dominance in these sectors in terms of technology, investment, manufacturing and employment. ” According to the IEEFA,   Chinese global investment in clean energy exceeds $100 billion annually, (more than twice that of the U.S.), and is expanding beyond Asia to Africa, Europe, the Middle East, North America and South America. It cites the International Energy Agency’s World Energy Outlook 2016 report ( Nov. 2016) to state that China holds 3.5 million of the 8.1 million renewable energy jobs globally. Small wonder when five of the world’s six largest solar-module manufacturing firms, and five of the ten top wind-turbine manufacturing firms are owned by  Chinese companies.  Between 2015 – 2021,  “China will install 36% of all global hydro electricity generation capacity … 40% of all worldwide wind energy and 36% of all solar.”See a summary of the details of the IEEFA report in “China cementing Global Dominance of Renewable Energy and Technology”   in The Guardian ;  the Globe and Mail  summary   “U.S. and Canada falling behind China in race for renewable energy” (Jan. 6) rather badly understates the case .

The trend  seems set to continue.  On January 5, the Chinese National Energy Agency announced its plans for the next phase of energy investment: see “China Aims to Spend at Least $360 Billion on Renewable Energy by 2020 ” in the New York Times.

In Canada, the latest major report tracking clean energy investment was published by Clean Energy Canada in June 2016.   Tracking the Energy Revolution    reported reduced investment in 2015 (from $12 billion to  $10 billion), although renewable generation capacity grew by 4% in that time.  Even before the announcement of the Pan-Canadian Framework, Clean Energy Canada called this a “pivotal time” for renewables, and sets an optimistic tone.  That boosterism is also apparent in   “Challenge 2017: Rays of hope shine on solar industry despite ‘Trump digs coal’ mantra” in the Financial Post (Jan. 3) – a mostly anecdotal story of Canadian solar manufacturers, and  “Canada can cash in on a cleantech boom“, in the Toronto Star (Jan. 5). The Star article  applauds  a recent clean energy-focused trade mission to China by the Minister of Environment and Climate Change, the clean-tech incentives announced in the December 2016 Pan-Canadian Framework on  Clean Growth and Climate Change, and recent federal and provincial policies that set aggressive targets for renewable energy use in government buildings and operations.

In Case you missed it: Some policy landmarks over the summer

Ontario, Quebec and Mexico agree to promote carbon markets in North America: On August 31, at the 2016 Climate Summit of the Americas , the three jurisdictions announced   a joint declaration  which states: “The Partners are determined to jointly promote the expansion of carbon market instruments for greenhouse gas emissions reduction in North America.”   See the Globe and Mail summary here .

Alberta appoints an Oil Sands Advisory Group:  On July 14, Alberta appointed a 15-member Oil Sands Advisory Group   to provide expert advice on how to implement its 100 megatonne per year carbon emissions limit for the oil sands industry, and on “a pathway to 2050, including responding to federal and other initiatives that may affect the oil sands after 2030.”  Co-chairs appointed are: Climate and energy advocate Tzeporah Berman,   Melody Lepine of the Mikisew Cree First Nation, and Dave Collyer, former president of the Canadian Association of Petroleum Producers.

New Brunswick Climate Action Committee: The government’s Select Committee on Climate Change   held public hearings and accepted submissions over the summer.  In July, New Brunswick’s  Conservation Council produced its  “Climate Action Plan for New Brunswick”. It  proposes to reduce GHG  emissions through investments in retrofitting, starting with social and low-income housing; expand renewable energy ; provide incentives for electric and energy efficient vehicles; modernize industry and manufacturing to reduce waste and pollution, and accelerate installation of the Energy Internet (Smart Grid telecommunications) to manage a more distributed electricity load. These investments would help NB Power phase coal out of electricity production over the next 15 years.

U.S. and China formally join the Paris Agreement: On September 3, the eve of the G20 Summit in Hangzhou China, the two countries responsible for almost  40% of the world’s GHG emissions announced that they will formally ratify the Paris Accord.  See coverage in The Guardian ;  “U.S. and China formally join historic Paris climate agreement; Canada not yet ready”  in the Globe and Mail;  “Landmark China-U.S. climate breakthrough elicits tepid response” from Weekly Climate Review.  Check the Climate Analytics website  for their “ratification tracker”, which on September 9 states “ it is estimated that at least 58 countries are likely to have ratified the Paris Agreement by the end of 2016, accounting for 59.88% of global emissions. Under this scenario, the Paris Agreement will entry into force by the end of the year.”  The website has details country-by-country.

New U.S.  fuel standards for heavy-duty vehicles after model year 2018:  The U.S. Environmental Protection Agency   and the Department of Transportation’s National Highway Traffic Safety Administration jointly finalized standards for medium- and heavy-duty vehicles, to improve fuel efficiency and cut carbon pollution.  Heavy duty vehicles include:combination tractors (semi trucks), heavy-duty pickup trucks and vans, and vocational vehicles (including buses and garbage or utility trucks). The new rule and an archive of related documents is available at the EPA website . The American Council for an Energy Efficient Economy   applauds the new rules; as does the trucking industry, according to the New York Times coverage .  Canada is expected to follow suit, based on the  the Joint Leaders’ statement from the Three Amigos Summit, June 29,  :  “Canada, the U.S., and Mexico commit to reduce GHG emissions from light- and heavy-duty vehicles by aligning fuel efficiency and/or GHG emission standards by 2025 and 2027, respectively. We also commit to reduce air pollutant emissions by aligning air pollutant emission standards for light- and heavy-duty vehicles and corresponding low-sulphur fuel standards beginning in 2018. In addition, we will encourage greener freight transportation throughout North America by expanding the SmartWay program to Mexico.” Canada last updated its emission standards for heavy-duty trucks in 2013, covering up to model year 2018.

California continues to lead with landmark legislation:  California legislation (SB32) was passed in late August, and signed by Governor Jerry Brown on September 8,  requiring the state to reduce its greenhouse gas emissions to 40 percent below 1990 levels by 2030 .   An economic analysis by consulting firm Environmental Entrepreneurs (E2)  was released during the public debate  around SB32, claiming that thousands of jobs had been created in every District of the state by the predecesor Global Warming Solutions Act. See the press release here.  And the 8th annual edition of California’s Green Innovation Index  by Next10 quantifies a booming clean energy economy, with solar generation increased by 1,378 percent in the past 5 years.  “California’s Historic Climate Legislation becomes Law” from Think Progress is typical of the superlatives throughout the news coverage.

As evidence of California’s important leadership role:  on August 1, New York’s Public Service Commission approved the Clean Energy Standard   which mandates that 50 percent of the New York state’s electricity will come from renewable, clean energy sources by 2030 .   California had passed legislation in 2015 to mandate utilities to provide 50 percent of their electricity generation from renewable sources by 2030, and require a 50 percent increase in energy efficiency in buildings by 2030.

Minority Report challenges Australia’s Climate Change policies:  Australia’s Cimate Change Authority released a report at the end of August:  Towards a climate policy toolkit: Special Review of Australia’s climate goals and policies  .  Authority experts David Karoly and Clive Hamilton so disagreed with the majority report that they issued their own Minority Report   (see the press release here  ) .  Clive Hamilton stated  “The majority report gives the impression that Australia has plenty of time to implement measures to bring Australia’s emissions sharply down.  This is untrue and dangerous”.

Shift in Climate Change policy in the U.K. government:  The new post-Brexit government of Theresa May has made “ a stupid and deeply worrying” decision according to The Independent ,    by moving the work of the  Department for Environment and Climate Change to a new  “Department for Business, Energy & Industrial Strategy.”    Reassurance from the June adoption of  a world-leading GHG emissions reduction target, as reported in The Guardian  here and here , has been challenged. The BBC reported that  “Just days after the United Kingdom committed  to cut greenhouse gas emissions 57% from 1990 levels by 2032, the country’s grid operator reported this morning that the country will miss its existing EU long-term targets for 2020,  unless it adopts more aggressive clean energy policies.”

 

What impact for Coal Workers from China’s new 5-Year Plan?

China’s Official 5-Year Plan for 2016 – 2020  was released on March 5, and for the first time, China has set a limit on energy consumption, to 5 billion tons of standard coal equivalent.  Kate Gordon of the Paulson Institute considers the impact on coal workers  in “ The Fate of Industrial Workers in China’s Proposed Green(er) Economy” (March 22) . For a general overview of the Plan, see the World Resources Institute analysis ; or “China’s New Five-year Plan is out and it doesn’t Sacrifice the Environment for the Economy”   in Grist (March 18) .

A Moratorium On New Coal Development in the U.S. And China; U.S. Clean Power Plan Survives its First Major Court Challenge

On January 15, 2016, the U.S. Secretary of the Interior announced a halt to licenses for new coal development on federal lands for 3 years while the department conducts the first comprehensive review of the federal coal program in 30 years. Calling it “an historic day” the Natural Resources Defense Council summarizes the details of the announcement, including that the review “will also include an accounting of the carbon emissions of all fossil fuel production on federal lands”. Inside Climate News sums up reaction of environmental groups to the announcement and the New York Times offers a compilation of articles about the coal industry  . On January 21, the New York Times reported “Court Rejects a Bid to Block Coal Plant Regulations” , saying that a “federal appeals panel .. rejected an effort by 27 states and dozens of corporations and industry groups to block the administration’s signature regulation on emissions from coal-fired power plants while a lawsuit moves through the courts.” Further court challenges are expected, with a likely ruling by the Supreme Court in 2017.     And in December 2015, Bloomberg News reported that China will suspend the approval of new coal mines in 2016, pledging to reduce coal’s share of its energy consumption by almost 2% , to approximately 60 percent in 2016. Read more at Climate Progress  and The Guardian .

 

 

China-U.S. Announcements include a National Cap and Trade program for China

On an official state visit to the U.S. on September 25, China’s president, Xi Jinping, announced that China would establish a national cap and trade program in 2017 covering power generation, iron and steel, chemicals and building materials industries. He also committed $3.1 billion in climate financing to help developing countries mitigate and adapt to climate change, capping off a series of recent announcements. The Rocky Mountain Institute summarizes the full slate of pledges made by the U.S. and China on September 25, “Today’s U.S.-China Announcement is the Most Significant Milestone to Date for Battling Global Climate Change”Inside Climate News summarizes the Chinese announcement.   In the New Yorker (September 25)  “What can China achieve with Cap-and-Trade?” cites the irony of a market-based system from a communist country, in contrast to the U.S. approach of regulation from a centralized bureaucracy.

Job Benefits of the Intended Nationally Determined Contributions

An analysis published at the end of March by the New Climate Institute of Germany estimates  the co-benefits associated with the Intended Nationally Determined Contributions (INDC)  targets of the EU, as well as the anticipated statements from the U.S. and China. The co-benefits include the cost savings associated with reduced fossil fuel imports, the reduction in premature deaths associated with reduced air pollution, and the generation of green jobs in the renewable energy sector.

Job creation forecasts were only made for wind, solar, and hydro electricity sectors, and within that, only for manufacturing, construction and installation, and operation and maintenance. Even within those conservative parameters, the forecasts show that if the IDNC’s of the three jurisdictions were strengthened so that they actually would meet the 2 degree celsius reduction target, job creation would be 350,000 in the EU, 180,00 in the U.S.,  and 1.4 million in China. Assessing the Missed Benefits of Countries’ National Contributions  demonstrates that “the achievement of a 2°C compatible trajectory does not only preserve the well-being of future generations, but may also generate positive economy-wide returns, rather than costs for the current generation”. 

China Announces Coal Restrictions and a National Carbon Market to Begin in 2016

The Chinese government has shown new muscle in its efforts to rein in its enormous GHG emissions. China’s planning agency, the National Development and Reform Commission, issued a directive banning the sale or import of coal with 40 per cent or more ash content and 3 per cent or more sulphur content, with tighter restrictions (ash content limits at 16 per cent and sulphur at 1 per cent) in major economic hubs, including Beijing, Shanghai and Guangzhou.

Australians, whose coal industry could be adversely affected, see this as a move to protect the Chinese coal mining industry, according to the Sydney Morning Herald at: http://www.smh.com.au/business/china-coal-ban-to-rescue-domestic-mines-20140917-10ibcl.html. See also a Wall Street Journal report at: http://online.wsj.com/articles/china-coal-ban-highly-polluting-types-banned-starting-in-2015-1410852013.

In September, China also announced that it plans to launch a national carbon market in only two years, in 2016. See the New York Times announcement at: http://www.nytimes.com/2014/09/01/business/international/china-plans-a-market-for-carbon-permits.html, a brief summary by the International Centre for Trade and Sustainable Development at: http://www.ictsd.org/bridges-news/bridges/news/china-unveils-plans-for-national-carbon-market-by-2016 or a detailed analysis by Caron Brief at: http://www.carbonbrief.org/blog/2014/09/analysing-china-carbon-market/.

 

Mandatory Emissions Trading Scheme for China

China’s Ministry of Finance has announced a plan to launch a mandatory national emissions trading scheme sometime between 2017 and 2020. The country has chosen seven regions where carbon market pilots will begin in the meantime. Eleven regions across China have been conducting pollution trading pilots since 2007, partly modelled after the EU emissions trading scheme. While pilots to date have focussed on carbon dioxide (CO2), the national scheme is expected to include sulphur dioxide (SO2) and nitrous oxide (NOx) as well. One billion metric tonnes of CO2 will be covered under the pilot programs, smaller only than the EU emissions trading scheme.

See “China aims to launch pollution permit market within 3 years” from Reuters at: http://in.reuters.com/article/2014/03/24/china-pollution-idINL4N0ML1OU20140324. By 2020, China has pledged to cut its greenhouse gas emissions per unit of GDP by 40 to 45 percent from 2005 levels.

90 Companies Account for Two-Thirds of Global Emissions: a New Look at who is Responsible

A widely-cited article in the November issue of Climatic Change analyzed the greenhouse gas emissions produced by the largest investor-owned and state-owned companies, rather than the usual metric of national emissions.  The results show that nearly two-thirds of carbon dioxide and methane emissions from 1854 to 2010 can be attributed to 90 companies, with almost 30% of emissions produced by the top 20 companies .  Among state-owned companies,  Russian enterprises produced 8.9% of the total emissions, with China accounting for 8.6% of total global emissions. Among investor-owned companies, ChevronTexaco was the leading emitter, causing 3.5% of global emissions, with Exxon causing 3.2% and BP causing 2.5%. The data in the article was constructed using public records and data for the period 1854 to 2010, from the U.S. Department of Energy’s Carbon Dioxide Information and Analysis Centre. Author Richard Heede states, “the present analysis…invites consideration of the suggestion that some degree of responsibility for both cause and remedy for climate change rests with those entities that have extracted, refined, and marketed the preponderance of the historic carbon fuels.” Read “Tracing anthropogenic carbon dioxide and methane emissions to fossil fuel and cement producers, 1854-2010”  in Climatic Change (November 2013) at: http://link.springer.com/article/10.1007/s10584-013-0986-y

Local Content Requirements Promoting Green Growth in China and Around the World

A paper released on June 3rd by the International Centre on Trade and Sustainable Development “attempts to refocus the LCR debate around the ultimate question of whether this measure can play a role in achieving green industrial growth in general, and RE deployment and innovation in particular. ” The authors set out the arguments for and against the use of LCR’s, examine their use by China in the wind energy industry, and describe (in less detail) examples in Ontario, Quebec, Spain, Italy, France, Greece, Croatia, the US, India, Brazil, South Africa and Turkey. A concluding section deals with the WTO role. Ultimately, the authors call for more rigorous research into the effect of local content requirement policies on the creation of jobs in the renewable energy industry.

LINK

Local Content Requirements and the Renewable Energy Industry – A Good Match? By Jan-Christoph Kuntze and Tom Moerenhout is available at: http://ictsd.org/i/publications/165193/?view=details

Reform Proposals for Global Carbon Markets

An April report from the Centre for American Progress acknowledges and describes the shortcomings of carbon markets, but argues that carbon markets have helped to fight climate change while providing  billions of dollars for investment capital to spur economic growth. With much attention to the Clean Development Mechanism, and after a through description of the Chinese experience with CDM, the report makes several recommendations for reforms so that “With the right political commitment and much-needed reforms, global carbon markets have the potential to deliver outsized environmental and economic benefits in the coming years.”  See Carbon Market Crossroads: New Ideas for Harnessing Global Markets to Confront Climate Change is at http://www.americanprogress.org/wp-content/uploads/2013/04/CarbonMarketCrossroads-3.pdf .