Climate 411

Safeguarding Americans’ financial futures from climate change

By Gabriel Malek / Published: October 29, 2021

This post is co-authored with Michael Panfil, Director of Climate Risk Strategies Project Manager at EDF.

Climate change presents immense risks for our society. These include, as is becoming increasingly apparent, the financial system. Now, the U.S. Department of Labor is taking a step to help safeguard one critical part of our economy and a cornerstone of many Americans’ financial futures – workers’ retirement savings.

The Labor Department has proposed a rule that would make clear that retirement plan managers can consider climate change when making 401(k) investment decisions. Risk management is bedrock to our financial system, and this proposal empowers 401(k) plan sponsors to incorporate the substantial and growing risks posed by climate change alongside other financial risks.

A substantial body of research highlights the financial risks stemming from climate change. The London School of Economics found that climate change could cause trillions of dollars in financial damage, far more severe than the 2008 financial crisis. The U.S. Fourth National Climate Assessment found climate change could stifle economic growth by 10% by 2100.  The U.S. Commodity Futures and Trading Commission released a report last year that found Earth’s rising temperatures, and resulting extreme weather, pose “a major risk to the stability of the U.S. financial system and to its ability to sustain the American economy.” These findings were reaffirmed last week, with an Executive Order initiated risk and finance report by the White House making clear that “climate change poses serious and systemic risks to the U.S. economy and financial system.”

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Posted in Economics / Read 1 Response

COP26: 4 Reasons Carbon Markets Rules under Article 6 (Finally) May be Agreed in Glasgow

By Kelley Kizzier / Published: October 28, 2021
The SEC Centre in Glasgow Credit: CC0/PublicDomainPictures.net

The SEC Centre in Glasgow Credit: CC0/PublicDomainPictures.net

Interest in carbon markets is currently booming and with increased activity comes increased attention and, of course, familiar criticism. A high-integrity carbon market can help companies and countries increase their ambition on the pathway to net zero by mid century.

If designed well, the carbon market can channel public and crucial private sector investment from developed to developing countries and to the most urgent areas for climate action — like tropical forest protection.

A few key changes since countries met at COP25 in Madrid mean we are in a better position to get agreement on Article 6 at COP26 in Glasgow. Read More »

Posted in Carbon Markets, News, Paris Agreement, United Nations / Read 1 Response

Washington and Wall Street must act now to protect Americans’ financial futures from unfolding climate change harms

By Michael Panfil / Published: October 25, 2021

This piece was co-authored by Stephanie Jones, Attorney, Climate Risk and Financial Regulations, and Gabe Malek, Project Manager, Investor Influence at EDF.

Climate change poses grave risks across society, including “more frequent and intense storms, wildfires, and heatwaves as well as more damaging droughts and more extensive ecosystem losses.” All people face climate harms, today: “this year alone, extreme weather has upended the U.S. economy and affected one in three Americans.” Policymakers must act with urgency to protect all Americans in the face of the unfolding climate crisis, and safeguarding peoples’ financial health and stability is urgent and paramount – no American should face financial jeopardy due to the harms climate change poses to their retirement account or ability to prudently manage personal and home finances.

Importantly, Washington and Wall Street are increasingly taking steps to recognize and manage climate risks. A number of important activities have taken shape in recently weeks, all designed to protect Americans’ financial futures. Measures range from proposed rules that would improve lifelong retirement savings plan selection to report findings that make transparent the harms climate change presents to the foundational stability of our banking system.

Eight of the most significant recent U.S. developments in the last few months of 2021 are highlighted below. It is crucial that we build upon these steps and take concrete, urgent action now to protect families, all people with bank accounts small and large, investors from main street to wall street, retirees, and all who depend on a financial system that is not destabilized by climate change.

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Posted in Greenhouse Gas Emissions, Policy / Read 2 Responses

New analysis: Americans across the country suffered from high ozone pollution levels of this summer

By Taylor Bacon / Published: October 20, 2021

In addition to checking the temperature and the chance of rain before leaving home, many people have been forced to add a new indicator to their daily weather check – air quality.

Ground-level ozone pollution – more commonly known as smog – reached dangerous levels across the U.S. this summer. EDF’s new analysis found that almost every state experienced unhealthy levels of it, with millions of Americans exposed to dangerous air pollution.

The current national standard for ground-level ozone pollution is 70 parts per billion. As you can see from the maps above, 45 states had at least one day between March and August with levels that exceeded that limit.

However, there is a substantial and growing body of scientific evidence that shows serious health effects from ground-level ozone exposure at levels below the current standard. When the data is expanded to consider ground-level ozone levels greater than 60 parts per billion, which would be a health-based standard more consistent with the scientific evidence, the picture of summer ozone levels is even more concerning – all but one state (Hawaii) had at least one day with levels that exceeded that amount.

Our analysis also found:

  • The Western U.S. experienced the worst ozone levels in the country this summer. California, Arizona and Colorado experienced the most high-ozone days between March and August.
  • 343 counties recorded at least one high-ozone day. San Bernardino, California recorded the most exceedances – 112 high-ozone days between March and August, including almost every day in July and August.
  • More than 31 million people live in the 24 counties that had more than 20 high-ozone days between March and August, including Denver County in Colorado, Maricopa County in Arizona, and Los Angeles County in California.
  • If you use the more health-protective standard of 60 parts per billion, a majority of days between March and April had unhealthy ozone levels across the Western U.S.
  • In Arizona, under the 60 parts per billion standard, 89% of days between March and August had unhealthy ozone levels somewhere in the state.

There were many wildfires this summer and wildfire smoke is one of the sources that can contribute to elevated levels of ozone pollution. EPA establishes standards based on health science alone, and the agency has long had policies in place that allow states to account for truly exceptional events. Our analysis includes all recorded high ozone readings and does not exclude any high ozone days

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Posted in Cities and states, Health, News, Policy, Smog / Comments are closed

Where the U.S. stands going into COP26

By Danielle Arostegui / Published: October 12, 2021

After a year-long delay from the pandemic, COP26 — the next UN meeting aimed at accelerating global action on climate change — is right around the corner. As a newly rejoined Party to the Paris Agreement under the leadership of President Biden, the United States will be arriving under much different circumstances than the last COP. But will other countries see the U.S. participation and its new commitments as credible? Will the United States be positioned to push global ambition to the levels needed to beat the climate crisis? The answers to those critical questions depend on how much policy progress the U.S. can make at home.

In April, the United States renewed its commitment to meeting global climate targets, including through an ambitious new nationally determined contribution (NDC) that pledges to reduce U.S. emissions by 50-52% from 2005 levels by 2030. While highly ambitious, multiple analyses have demonstrated that this goal is also achievable, lending much-needed credibility to the U.S. pledge. Since then, the Biden administration has unveiled a series of actions intended to move the country towards achieving that goal.

Critically, one of the largest and most significant components of the president’s plan to tackle climate change is a piece of legislation that is currently in active stages of negotiation in Congress. Getting this bill and the included climate investments across the finish line will be crucial to meeting our climate goals. On top of that, the U.S. must also ratchet up regulatory climate action at the federal and state level to meet our 2030 pledge, as incentives and investments alone won’t be enough to slash emissions at the pace and scale needed.

So what has the U.S. accomplished since announcing its new NDC in April and what is still on the table? Here is where progress stands.

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Posted in Greenhouse Gas Emissions, Jobs, Paris Agreement / Comments are closed

Beyond R&D: Climate innovation policy can help the U.S. meet the moment

By Natasha Vidangos / Published: September 27, 2021

Together with Third Way, EDF co-hosted a Climate Week 2021 event on how U.S. climate innovation policy can accelerate a cleaner, stronger and more equitable economy. Here are four big takeaways.

(Caption: Speakers included Mandela Barnes, Lieutenant Governor, Wisconsin; Chris Deschene, Board Member, National InterTribal Energy Council; Jason Walsh, Executive Director, BlueGreen Alliance; Jetta Wong, Senior Fellow, Information Technology and Innovation Foundation, and President, JLW Advising. The event was moderated by Natasha Vidangos, Senior Director, Climate Innovation and Technology at EDF, and Josh Freed, Senior Vice President, Climate and Energy Program at Third Way.)

Climate innovation is a powerful tool that can create high-quality jobs, improve the quality of life for all communities and catalyze the breakthroughs needed to reach net-zero emissions by no later than 2050. To take advantage of the full opportunity, however, we need strong policies and approaches now that can deliver on all of these challenges, as a recent Climate Week event hosted by Environmental Defense Fund and Third Way made clear.

Innovation in climate technologies includes many stages of development, from research and development through to demonstration and deployment. The U.S. is poised to make major investments in this area to combat climate change: President Biden has pledged to deliver the largest-ever federal investment in clean energy innovation, and the infrastructure and reconciliation packages currently under negotiation in Congress contain large amounts of funding, including specific investments in demonstration and deployment of key technologies. But these investments can feel abstract. What would a strong push for climate innovation mean for U.S. workers and communities, and how can we design these policies to deliver the maximum benefits for all?

Here are four major takeaways from the event, which brought together perspectives from government, labor and advocacy.

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Posted in Energy, Jobs, News / Comments are closed