Climate 411

An insurance policy for cutting emissions: New research strengthens the case for climate backstops

Climate backstops are a critical part of a carbon fee that help ensure expected emissions reductions actually occur. More federal climate proposals are using them, including the new America’s Clean Future Fund Act from Senator Richard Durbin. New research on these innovative mechanisms can help advance our understanding of different design options and implications for environmental performance.

Protecting lives during the COVID-19 crisis, confronting systemic racism, and providing much-needed economic relief to workers and businesses should be the top priorities for federal policymakers right now. As attention turns to recovery and rebuilding, we must use the opportunity to act swiftly to tackle the climate crisis, another significant threat to our nation’s health that exacerbates racial and economic inequality.

The policies and programs designed to stimulate the economy must also dramatically cut climate and air pollution – a goal underscored by the new report from the House Select Committee on the Climate Crisis, which outlines a range of bold solutions to climate change. Within the suite of climate and air pollution solutions needed, it will be critical that lawmakers include an economy-wide mechanism that puts an enforceable limit on climate pollution. There are several options for such a mechanism – one is a carbon fee that covers the vast majority of emissions across the economy. Such a fee can and should be designed to distribute costs and benefits in a way that promotes equity. That includes protecting the communities most vulnerable to climate impacts, air pollution and the transition to a clean economy through the use of targeted revenue.

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Posted in Economics, Greenhouse Gas Emissions / Comments are closed

New research series: Ensuring fairness for workers and communities in the transition to a clean economy

EDF and Resources for the Future (RFF) partner on a new research series to inform policymaking on fairness for fossil fuel workers and communities in transition.

Coal burning plant in Conesville, Ohio.

Coal burning plant in Conesville, Ohio.

The shockwaves from the COVID-19 pandemic continue to reverberate across the United States, with tens of millions unemployed and workers in every sector in need of support. The energy sector is reeling from the impact — especially the many workers and communities living in coal-dominated regions already grappling with job loss.

In Northeast Wyoming, the Powder River Basin region experienced the largest round of coal mine layoffs in years. In West Virginia, Longview Power — cited as the most efficient coal-fired power plant in the country — filed for bankruptcy. And in Somerset County, Pennsylvania a local coal mine went “indefinitely idle” and laid off 100 workers. These are just a few examples from this spring that reveal how the steep drop in energy demand, largely a result of shutdowns to contain the spread of COVID-19, exacerbated loss in the coal industry. But they don’t capture the whole story.

The loss of these coal jobs will cause a ripple effect beyond the workers: these families will see a drop in income, making it harder to make ends meet, and may also lose health care and other critical benefits. Surrounding businesses — from restaurants to gas stations — will see a drop in customers and the communities and towns dependent on taxes from the coal industry for building roads and schools face an uncertain future too.

But well before the coronavirus outbreak, coal-dependent regions were already facing chronic job loss, public health crises, and other hardships. The rise of cheaper energy alternatives, including the dramatically improving costs of wind and solar power, has been steadily moving the needle toward a low-carbon economy in the US.

For years, many coal communities anticipated the gradual decline in jobs and revenue; few were prepared for the free fall from coronavirus.

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Posted in Energy, Green Jobs, Jobs, News / Comments are closed

As Amazon deforestation rises, so does the need for urgent action

Deforestation in the Amazon. iStock.

The year 2020 was expected to be a “super year” for global action on climate change. Instead, it’s become an “extraordinary year” for a global community trying to cope with the impacts of the COVID-19 pandemic.

Amidst this backdrop, deforestation throughout the Amazon has been rising steadily, jumping 55% in the first four months of 2020 compared to the same period last year. This is no coincidence. Loggers, miners, land-grabbers and individuals clearing land for soy and livestock are taking advantage of the COVID-19 crisis to illegally clear the forest.

Enforcement of forest protection was already severely weakened across the Amazon, due in part to anti-environmental leadership and rhetoric, such as that of President Bolsonaro in Brazil. The virus has forced many of the field agents responsible for keeping forest invaders out to retreat, making it virtually impossible to enforce environmental laws and leaving these areas open to destruction. As we enter fire season, deforestation could get much worse due to warmer than average sea surface temperatures which could exacerbate the spread of fires. It all makes for a “perfect storm” that is threatening the Amazon forest and is already having disastrous impacts on the Indigenous communities who depend on forests.

Increased deforestation will jeopardize the rainforest’s rich biodiversity and extensive carbon stocks. It’s pushing the Amazon closer to the tipping point where deforestation will be irreversible. And it’s hindering global climate change mitigation efforts.

If the global community is going to achieve the goals of the Paris Agreement, Convention on Biological Diversity, the New York Declaration on Forests and other frameworks, then countries and companies need to prioritize forest protection.

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Posted in Brazil, Forest protection, Indigenous People, International, Jobs, REDD+ / Comments are closed

Seven Senate Republicans join growing momentum to support struggling clean energy industry

Last week, a group of Republican Senators pushed Congress to support relief for the clean energy industry, even as several of their colleagues from fossil fuel producing states pushed back against these efforts.

The clean energy sector has been hit especially hard during the COVID-19 crisis. According to an analysis of Department of Labor data, more than 620,000 workers in these occupations have been laid off since March, with most of those continuing to seek unemployment. Those numbers account for 15% of the clean energy workforce and are more than double the number of clean energy jobs created since 2017. This loss is a significant change from the pre-COVID economy where clean energy was one of the nation’s strongest sectors, growing 70% faster than the economy as a whole.

The clean energy sector plays a critical role in U.S. energy independence,is a powerful economic tool to reduce climate pollution, and has wide bipartisan support. Read More »

Posted in Cities and states, Green Jobs, Greenhouse Gas Emissions, Jobs, Policy / Comments are closed

More confirmation that the Trump administration has been disregarding the true costs of climate pollution

A new report highlights the Trump administration’s dangerous efforts to obscure the real costs of climate change, while a major court decision firmly rejects the administration’s approach.

Costly flooding in a Houston area neighborhood in the aftermath of Hurricane Harvey.

A new report from the Government Accountability Office (GAO), an independent agency tasked with providing objective nonpartisan information to policymakers, confirms what we’ve known for years: that the Trump administration has been ignoring the enormous costs of climate change. By ignoring these damages, the administration is turning its back on communities across the nation who are footing the bill for those impacts today.

In addition, a federal court recently issued a clear-cut rejection of the administration’s deceptive math on the cost of methane pollution, another greenhouse gas that is 84 times more potent than carbon dioxide over a 20 year time period. This ruling reinforces the fact that the administration has been blatantly disregarding widely accepted science and economics when it comes to the costs of climate change.

All of this comes amid a raging and widespread pandemic that underscores the absolute necessity of relying on experts and scientific data when crafting policy. With unchecked climate change fueling more devastating storms, droughts, and other public health impacts — all of which hit vulnerable communities the hardest — incorporating accurate costs of climate change in policy decision-making matters now more than ever.

Here is what this new report and court decision reveal about the administration’s backwards and harmful approach to decisions on climate change — and how experts and the courts are wholly rejecting it.

Why undervaluing the cost of climate change is dangerous

To justify its own political agenda, the Trump administration has manipulated the calculations behind the estimated impact of emissions to allow for more climate pollution from major sources like power plants and cars. The new GAO report outlines the steps the administration has taken to drastically underestimate the “Social Cost of Carbon” — a measure of the economic harm from climate impacts that is used to inform policy and government decision-making. These impacts include extreme weather events like flooding and deadly storms, the spread of disease, and sea level rise, increased food insecurity, and more.

After a 2008 court decision requiring the federal government to account for the economic effects of climate change in regulatory benefit-cost analysis, an Interagency Working Group (IWG) comprised of experts across a dozen federal agencies began in 2009 to develop robust estimates of the social costs of carbon that could be used consistently by agencies across the government. These estimates were developed through a transparent and rigorous process based on peer-reviewed science and economics that included input from the National Academy of Sciences and the public — and were periodically updated over time to account for the latest science. More recently, the NAS conducted a thorough assessment to provide guidance on updating the social cost of carbon estimates and suggestions for continuing to build on and strengthen it.

The GAO report underscores the importance of implementing those recommendations, while pointing to the fact that the federal government has done absolutely nothing to follow through. In fact, in 2017 the Trump administration recklessly disbanded the IWG — the very federal entity that already had the mandate to take on this task.

Since then, federal agencies like the EPA have been relying on an “interim cost” to inform important regulatory decisions that is seven times lower than the IWG’s estimate — a move that dramatically underestimates the profound impacts climate change has on families, businesses, taxpayers and local governments. To make matters worse, the administration is dramatically reducing the IWG figure even though it is widely recognized to be an underestimate of the true costs. There is wide consensus that the true costs are much likely significantly higher.

The Trump administration substantially reduces estimates through two key flaws in its calculations, both of which fly in the face of established science and economic principles. First, the reduced estimates ignore that carbon emissions are a global pollutant, omitting important categories of climate change impacts on the United States. Second, they undervalue the harm to our children and future generations by significantly over-discounting future climate impacts.

By vastly undervaluing the costs of climate change — and thus, the benefits of acting on climate — the administration has been able to justify rolling back critical protections such as the landmark federal Clean Car Standards. These important rules offer critical public health benefits and fuel savings for consumers.

A court ruling refutes the administration’s deceptive math on pollution costs

In encouraging news, a recent court decision outright rejected the administration’s deceptive math on a similar metric, the ‘Social Cost of Methane,’ used to estimate the impacts of methane pollution. The Bureau of Land Management, under former Department of Interior Secretary Ryan Zinke, has been using an interim social cost of methane that is more than 25 times less than the estimate from the IWG. The U.S. District Court for the Northern District of California recently overturned the BLM’s attempt to ease protections from dangerous methane leaking, venting and discharging from oil and gas activities on public and tribal lands, where it used a distorted social cost of methane as justification. EDF joined the states of California and New Mexico and a broad coalition of health, environmental, tribal citizen and Western groups to challenge in court the rescission of these vital safeguards.

In the opinion, the judge ruled that the BLM’s decision to rely on a lower interim estimate for the social cost of methane was “arbitrary” and “capricious,” and therefore, “failed to quantify accurately the forgone methane emissions and the resulting environmental impacts.” In addition, the court underscored that “the President did not alter by fiat what constitutes the best available science” on the social cost of greenhouse gas emissions. This is a major win for not only the broad coalition involved in the case, but for the basic principle of science-based decision-making on climate change. The court’s meticulous critique of the flaws in the interim social cost of methane — and the process used to develop it — could be influential in future cases involving the social cost of greenhouse gas emissions. Such a critical ruling like this opens the possibility that the Trump administration and future administrations could be required to properly account for the costs of climate change.

The Trump administration’s unwavering, politically motivated attempts at twisting facts and discrediting experts is putting Americans’ lives, health and financial well-being at risk. Unfortunately, its effort to skew the costs of climate change is far more than a political game. It is already causing real harm to communities across the country suffering from climate impacts — and it will only add to the mounting costs our children and grandchildren will pay. That is why ongoing efforts to uncover and overturn unjust climate decisions are all the more essential.

Posted in Economics, Greenhouse Gas Emissions, Policy / Comments are closed

Firms can manage climate policy uncertainty. Here’s how.

shutterstock_194915288

Shutterstock

This post was authored by Ruben Lubowski, Chief Natural Resource Economist at EDF, and Alexander Golub, Adjunct Professor of Environmental Science at American University.

For companies that are large emitters of greenhouse gases, uncertainty about policies to address climate change can be a real challenge. But our new paper in the journal Energy shows how companies that invest now in a novel approach to climate mitigation could help manage their risk of future policy obligations more effectively and at a lower cost.

The challenge

In Energy, we demonstrate how policy uncertainty puts greenhouse gas emitting companies in a bind, raising risks for these companies and making it likely that carbon prices—an indicator of costs—will rise in a series of sudden bursts, rather than following a smooth transition.

Policy uncertainty discourages private investment in low-carbon technologies. However, when credible climate policy is finally in place, industry will have missed out on prudent investment opportunities and face spiking costs as they rush to catch up with tightened emissions controls requirements.

In the paper, we show that companies have a latent demand for suitable strategies that can help manage these risks.

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Posted in Carbon Markets, Forest protection, International, REDD+ / Read 1 Response