Author Archives: Derek Walker

New Study: California's Carbon Market Delivers for Economy and Climate

caliwind_378x235Would you believe there's a state that cut pollution and cleaned up its air, while creating jobs and sustaining economic growth?

And where economic incentives, rather than costly regulations, are stimulating innovation and investment?

California passed the earliest, most comprehensive law to set a cap on carbon pollution, along with numerous other complementary policies to help the state transition to a low-carbon, clean-energy economy.

The results are now coming in and the present – and future – looks bright.

Two years after it was fully implemented, California's cap-and-trade program is thriving, a new report [PDF] from Environmental Defense Fund shows.

The program is now ramping up as the state economy is growing, paving the way for California to pass even stronger climate policies. Perhaps most important, it's laying the groundwork for other states and nations to move forward with similar steps.

The four top findings from our report: Read More »

Posted in Cap and trade, Climate, General, Global Warming Solutions Act: AB 32| Comments closed

Lima Climate Talks Showcase Another Path to Global Climate Action: Through States, Provinces and Cities

California state Senate President Kevin de León arrives at the conference center for the UN climate talks in Lima, Peru. Image used with permission from Senator de León.

California state Senate President Kevin de León arrives at the conference center for the UN climate talks in Lima, Peru. Image used with permission from Senator de León.

The chattering classes of the climate policy world are abuzz with their customary post-mortems following the latest breathless two-week session of the United Nations Framework on Climate Change 20th Conference of Parties (also known simply as COP 20), held in Lima, Peru.

Consensus is forming around a “slightly better than nothing” assessment of the Lima Call for Climate Action, which was adopted in the wee hours of Sunday amidst the usual skirmishes over money, monitoring, and mandates.

Lima clarified some of the expected content of the national pledges (“Intended Nationally Determined Contributions,” INDCs in COP shorthand) to be presented by all countries next year.

Notwithstanding the softness engendered by the word “intended,” at least we aren’t firmly stuck in the “old world order” where only developed countries are taking on mitigation actions.

Subnational cooperation and pathways to climate progress outside UN process

While nations squabbled about intentions, another story was playing out on the sidelines of the COP, showcasing real, groundbreaking and consequential progress at the subnational level – within states, provinces, and cities. Read More »

Posted in Climate, General, Global Warming Solutions Act: AB 32, Politics| Comments closed

Carbon Markets Reward 10 Pioneering States. Who's Next?

carbon_378x235A handful of states are already proving that economic growth and environmental protection can go hand in hand – and they’re using market forces, price signals and economic incentives to meet their goals.

These results are particularly salient as states consider how to comply with the U.S. Environmental Protection Agency’s plan to limit dangerous pollution from power plants.

So let's take a closer look at what's happening on our two coasts.

California: 4% cut in emissions, 2% growth

California’s landmark cap-and-trade program is closing out its second year with some strong results. Between 2012 and 2013, greenhouse gas emissions from the 350+ facilities covered by the program dropped by 4 percent, putting California solidly on track to meet its goal to cut emissions to 1990 levels by 2020.

During the same period, the state’s gross domestic product jumped 2 percent.

Read More »

Posted in Cap and trade, Climate, General, Global Warming Solutions Act: AB 32| Comments closed

EPA Hands Over the Keys with Clean Power Plan, California Already on Cruise Control

rp_dWalker.jpgEPA’s Clean Power Plan, proposed today, is a roadmap for cutting dangerous pollution from power plants, and as with any map, there are many roads to follow. For this journey, states are in the driver’s seat and can steer themselves in the direction most beneficial to their people and to the state’s economy, as long as they show EPA they are staying on the map and ultimately reaching the final destination.

As usual, California got off to a head start, explored the territory, blazed a lot of new trails, and left a number of clues on how states can transition to a lower carbon future, and California’s successes are one proven, potential model for other states to follow. The state’s legacy of clean energy and energy efficiency progress is a big reason the White House and EPA could roll out the most significant national climate change action in U.S. history.

Way back in the mid-1970s, when Governor Jerry Brown did his first tour of duty, California pioneered what remains one of the most effective tools for cutting pollution and saving money:  energy efficiency. The state’s efficiency standards, largely aimed at buildings and appliances, have saved Californians $74 billion and avoided the construction of more than 30 power plants. All those energy savings have translated into California residential electricity bills that are 25% lower than the national average.  What’s more, California produces twice as much economic output per kilowatt hour of electricity usage as the national average.

While energy efficiency has done yeoman’s work pulling costs down, reducing the need for dirty energy, and supercharging the state’s clean energy economy, California has also brought bold approaches to cleaning up its power supply. The California Renewable Portfolio Standard (RPS) requires 33% of all electricity sold in California to come from renewable sources by 2020, the most aggressive of the 29 states with RPS measures on the books. Read More »

Posted in Cap and trade, Clean Energy, Climate, Energy Efficiency, General, Global Warming Solutions Act: AB 32| Comments closed

California’s Carbon Market Could Help Stop Amazon Deforestation

(This post first appeared in Point Carbon North America)

By Juan Carlos Jintiach, Shuar indigenous leader from the Amazon basin, and Derek Walker, Associate Vice President for the US Climate and Energy Program at Environmental Defense Fund

From left to right: Juan Carlos Jintiach, Megaron Txucarramae (a leader of Brazil’s indigenous Kayapo tribe), Lubenay.

A recent article in the Journal of Climate predicts that destroying the Amazon rainforest would cause disastrous drought across California and the western United States. Californians are already no strangers to drought – the state is suffering one of its worst on record. But the research adds an interesting dimension to what we already know from numerous studies about deforestation: that greenhouse gas pollution in California and around the world makes forests, including the Amazon, drier and more susceptible to widespread fires. California may be thousands of miles away from “the Earth’s lungs,” but how we treat our diverse ecosystems directly affects the one atmosphere we all share.

It is good news for everyone that California’s Global Warming Solutions Act (AB 32) – which includes the world’s most comprehensive carbon market – is already helping reduce the state’s greenhouse gas pollution. Amazon states and nations have also greatly reduced their greenhouse gas emissions from deforestation, which collectively accounts for as much greenhouse gas pollution as all the cars, trucks, and buses in the world. California now has a terrific opportunity to show global environmental leadership by helping Amazon states keep deforestation rates headed for zero while helping save money for companies and consumers in the Golden State.

The current world leader in greenhouse gas reductions is Brazil, which has brought Amazon deforestation down about 75% since 2005 and kept almost 3 billion tons of carbon out of the atmosphere. Indigenous peoples and forest communities have played an essential role in this accomplishment. Decades of indigenous peoples’ struggles against corporate miners, loggers, ranchers, and land grabbers and advocacy in defense of their land rights have resulted in the legal protection of 45% of the Amazon basin as indigenous territory and forest reserves – an area more than eight times the size of California.

Credit: Dylan Murray

Credit: Dylan Murray

These dedicated indigenous and forest lands hold about half of the forest carbon of the Amazon, and have proven to be effective barriers against frontier expansion and deforestation. In a real sense, indigenous and forest peoples are providing a huge global environmental service, but that service is almost entirely unrecognized, let alone compensated. And in Brazil, where agribusiness is pushing back hard against law enforcement and reserve creation, deforestation is back on the upswing – increasing nearly 30% last year.

California has a role to play in keeping Amazon deforestation on the decline and giving indigenous and forest communities the recognition and support they need. A program called Reducing Emissions from Deforestation and Forest Degradation (REDD+) gives countries or states that commit to reducing deforestation below historic levels “credits” they can sell in carbon cap-and-trade markets. Getting these programs recognized by California’s carbon market would send a powerful signal that forests in the Amazon and around the world are worth more alive than dead, and would also provide real incentives for further reductions.

A few weeks ago, indigenous leaders from Brazil, Ecuador, and Mexico are in California engaging state leaders and policymakers on the issues of deforestation, indigenous and local peoples’ rights, and potential partnership with California’s carbon market. California should insist that only jurisdictions that respect indigenous and local peoples’ rights, territory and knowledge, and ensure that they benefit from REDD+ programs get access to its market.

The successful adoption and implementation of AB 32 is proof that California is leading the nation on effective, market-based climate change policies. But it’s time to take that another step forward. By allowing credits from REDD+ to play a role in the AB 32 program, the Golden State can be a world leader on one of the most significant causes of climate change and take action to protect the health and prosperity of a threatened land and its people.

 

Learn more about REDD+ and California:

Posted in General, Global Warming Solutions Act: AB 32, Offsets| Comments closed

Does the future of the Amazon rainforest lie in California?

(This post first appeared on EDF Voices)

By Derek Walker and Steve Schwartzman.

Over the past year, California’s new carbon market has held five auctions, generating $530 million for projects that reduce climate pollution in the state. This is just the start, however, as we believe the program has potential to achieve substantial environmental benefits half a world away in the Amazon rainforest.

We are working with community partners, scientific and business leaders, and California policy makers to craft a rule that permits credits from REDD (Reducing Emissions from Deforestation and forest Degradation) to be used in California’s carbon market, rewarding indigenous and forest-dwelling communities with incentives for ecosystem protection.

From left to right: Lubenay, Juan Carlos Jintiach, Derek Walker and Megaron Txucarramae (a leader of Brazil’s indigenous Kayapo tribe).

Using California’s new carbon market to reward rainforest protection would be a powerful signal to Brazil, Mexico, and other tropical countries—and to the world—that leaving forests standing is more profitable than cutting them down.

With the right rules in place, California could create an international gold standard for REDD credits that could be adopted by emerging carbon markets in China, Mexico and beyond.

The right technology

There’s a misperception about how hard it is to measure whether forests are being destroyed or protected. Current technology makes it possible, right now. Satellite and airplane-based sensors are already capable of recording what’s going on with high accuracy. This technology enables us to measure emissions reductions across whole states or countries, the best way to ensure that the reductions are real.

The right partners

We need to help pull together the best policy experts, scientists, and environmental organizations to help California government officials write model rules for REDD that can create a race-to-the-top for forest protection around the world. We need to show that trailblazing states – like Acre in Brazil and Chiapas in Mexico – are ready to be partners with California and can deliver the rigorous level of enforcement and program implementation that California requires.

The right time

There’s real urgency to linking California’s carbon market with REDD. Even though Brazil, home to the world’s largest tracts of tropical forests, has cut deforestation by about 75% from its 1996-2005 levels and consequently become the world leader in reducing greenhouse gas emissions, that progress is fragile. Over the past year, agribusiness has been pushing back hard against law enforcement and the creation of protected reserves, and deforestation increased nearly 30%. If we want Brazil to continue reducing its deforestation towards zero, we must provide economic incentives to protect the Amazon, and California can be an important catalyst in doing that.

Posted in Climate, Global Warming Solutions Act: AB 32, Offsets| Comments closed
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    How California can leverage market-based environmental policies to revitalize its economy, protect its quality of life and retain a leading edge in global innovation.

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