Tag Archives: climate-change
World Bank Looks at Global Carbon Pricing Systems
Posted June 3, 2013 It’s ironic considering all the attention on the struggles of the EU Emissions Trading System, but today over 40 national and 20 sub-national government jurisdictions have either implemented or are considering carbon pricing mechanisms. Global emissions trading schemes map via World Bank This wide-ranging assessment comes from no less an authority than the World Bank, which announced their findings this week in a new report “ Mapping Carbon Pricing Initiatives: Developments and Prospects. ” The Bank’s findings once again underling the growing momentum toward an interconnected global carbon market working to fight climate change and spur the transition to a global clean energy economy. Lessons Learned From EU Struggles Despite international failure to establish an international climate deal through the United Nations, the Bank sees individual carbon pricing initiatives developing faster than ever before – and learning lessons from the EU ETS . These markets are taking shape at the same time international prices on carbon are at historic lows and the prospect of coordinated international emissions reduction measures uncertain. “Even as the first generation of the carbon market stutters…it is progress at the country level that gives hope,” said Rachel Kyte , World Bank vice president for sustainable development. “Carbon pricing is emerging and carbon markets have a future.” Multiple systems feature novel system designs like pricing stabilization mechanisms to make them flexible and adjustable to changing economic situations that may have been unforeseen when they were created. The current glut of allowances and low prices in the EU ETS has been attributed to system inflexibility to handle reduced allocation demand after the economic recession. EU ETS allowance price chart 2008-2013 via World Bank Carbon Pricing Covering 20% Total Global Emissions These emerging schemes could make a massive impact on global emissions. As of 2013, the countries with functioning systems or carbon pricing mechanisms scheduled to start within the next few years collectively emit 10 gigatons of CO2 per year – equal to about 20% of global emissions, or the combined annual emissions of the US and EU. The Bank report highlights cap and trade systems in the EU, California, Kazakhstan , New Zealand, Quebec, the Regional Greenhouse Gas Initiative , and regional markets in Japan, as well as South Korea’s developing system . In addition, carbon taxes are cited in Australia , British Columbia, Denmark, Finland, Ireland, Norway, South Africa , Sweden, Switzerland, and the United Kingdom. Even more promising, the Bank’s report does not fully consider China’s fledgling system , which has begun pilot programs in major cities and will roll out nationally in 2020. “If China, Brazil, Chile, and the other emerging economies eyeing these mechanisms are included, carbon pricing initiatives could…cover almost half of total global emissions,” said Niklas Hohne of report co-author Ecofys. Severe Beijing air pollution image via Shutterstock Linkages And Expanded Targets Boost Value The Bank report also recognizes the value of international system linkages in stabilizing individual systems long-term. Linkages between the EU and Australia and California and Quebec , and potentially the EU and China , will create efficiencies and benefits for each system. However, the Bank cautions linkages need to be carefully timed to allow new systems to become established before connecting to other schemes. Bank analysts also note the growing trend of existing or scheduled systems expanding coverage of domestic emissions, with Australia and Korea now targeting 60% coverage, California eyeing 85% coverage , and New Zealand targeting 100% coverage within a few years. “There may not be a one-size-fits-all,” said Alexandre Kossoy , World Bank senior financial specialist. “But it is clear the foundation of the first generation of market-based instruments is informing what will constitute the future landscape of carbon pricing.” Does Hope Spring Eternal? Ultimately, it all comes down to climate, the ability to fund our transition to a sustainable future, and our inability to come to international agreement on climate policy. World Bank President Jim Yong Kim recently said climate change presents “serious consequences to the economic outlook” of international economies, and the Bank’s report acknowledges current emissions put us on the pathway to a devastating 3.5-4 degree Celsius temperature rise by 2100. If enough carbon pricing systems are online or planned by the next United Nations climate meetings, the power of international carbon markets as an economic and environmental stimulus may be too hard to ignore. Continue reading
Biomass Plants Do ‘Not Threaten’ Food Production
29 May 2013 By Tereza Pultarova Experts believe demands of biomass production don’t compete with those of food production The possible conflicts over land-use with food production needs should not prevent the Government from further exploring the possibilities of biomass power generation, says a new policy statement from the Institution of Mechanical Engineers (IMechE). Biomass-fired power stations, using energy stored in plants, present a convenient way of removing around 10 per cent of global carbon dioxide (CO2) each year. “Our analysis shows that at the scale of current global ambitions, the cultivation of biomass for use in electricity generation need not necessarily threaten the availability of land for food production, other energy sourcing and the preservation of ecosystems,” said Dr Tim Fox, Head of Energy and Environment at the IMechE. Compared to other power sources, biomass electricity generates low level of carbon emissions. In combination with Carbon Capture and Storage technologies (CCS) it offers a so-called ‘negative-emissions’ ratio, making it a promising part of the energy mix, convenient for climate change mitigation. Surprisingly, though, the current demand for this type of technology for power generation is very low. “Given that the exclusion of biomass from the energy mix would significantly increase the cost of reducing the CO2 emissions of the UK energy system, Government should help ensure that land-use tensions are fully understood and correctly managed,” Fox said. Even though the demand for biomass power generation is expected to grow, it is believed that the land needed to grow crops for these purposes will be nowhere near the size of areas required to meet the needs of food production in the future. The new policy statement advises the Government to take a complex approach to land-use management to eliminate any possible conflicts. In the statement issued today, the IMechE further encourages the UK representatives to take an international lead in encouraging integrated approach to future food security on global scale and to support research into CCS technology to achieve negative emissions. Continue reading
Time For Europe To Embrace ‘Affordable, Sustainable’ Energy Solutions
Published 29 May 2013 The European Union should embrace new renewable solutions such as gas fermentation technologies to advance towards a low-carbon economy, argues Jennifer Holmgren. Jennifer Holmgren is chief executive of LanzaTech , which has developed a biological fermentation process that transforms industrial waste gases and residues into fuels and chemicals. Pressed by Europe’s economic crisis, EU leaders at a recent summit called for “affordable and sustainable energy” to underpin the EU’s “competitiveness, jobs and growth”. Many see this as wishful thinking, and argue for a relaxation of the club’s ambitious 2020 energy and emissions reduction targets. If the EU is to weather the crisis and emerge stronger and more competitive than ever, energy policies need to be looking resolutely forward, not back. Technologies are advancing faster than the policies designed to harness them. The EU is debating amendments to the Renewable Energy Directive and Fuel Quality Directive to include sustainability criteria. These criteria could help determine whether Europe can indeed meet its 2020 targets. If policies can catch up with science, sustainable energy can fuel Europe’s growth. Researchers in many different fields have made working out the conundrum of affordable and sustainable energy their priority for years now. Their investments are paying off. A number of new technologies are questioning our perceptions of waste for example, by turning greenhouse gases (GHGs) such as carbon monoxide and carbon dioxide into a valuable resource, and the potential is vast and varied. It is part of a growing trend among researchers who say why capture and bury these gases – a technique supported by EU policies– when you can recycle them into valuable commodities? The EU’s 2020 target to source 10% of Europe’s transport fuel from renewables, is reachable by deploying a variety of existing and new technologies, including gas fermentation which captures carbon-rich waste and residues from European manufacturers and recycles it into biofuel in a closed loop system. These processes allow industries not only to reduce their carbon footprint, but moreover to convert this liability into a valuable green commodity, and be at the forefront of a greener, more sustainable economy. This kind of economy supports green growth for industry, preserving and creating jobs across Europe as manufacturers and industry invest in green technologies while maintaining a healthy bottom line. The old argument that a cleaner, greener economy and job-creation are mutually exclusive just doesn’t hold water anymore. Greening a traditional industry by deployment of a gas fermentation facility at a steel plant for example can create 40 to 50 jobs. CleanTech also boosts foreign direct investment, with global supply chain partners and customers ready to finance and build plants in Europe. Furthermore, increased efficiency and reduced dependence on fossil imports reinforce energy security, and help reduce costs. It is crucial that Europe, in its role as global leader in the fight against climate change, embrace these technologies. Looking beyond 2020, they are an important part of the equation if the EU is to meet its commitments to reduce GHGs 95% by 2050. As Commission President José Manuel Barroso said at the summit, however, there is no silver bullet solution. In its drive for a more sustainable economy, Europe needs to assess all technologies over time and not stop with one policy. There is a high risk for policies focusing on one or a few technologies that may not work in the long run or produce unintended consequences in the future. There is a need to de-risk those policies by diversifying but also coordinating the different policies to further support deployment of clean technologies. Many policymakers and researchers have rightly argued that the solution to climate change requires a wide range of measures. Why not expand the concept of renewable energy beyond solar, wind and other means of harnessing the forces of nature? You need carbon to produce liquid fuels and chemicals – and we can source this from wastes and residues from industry in Europe today. Why not look at what up to now has been seen as a burden we’d just like to go away or bury, and see greenhouse gases as an opportunity, as one solution in a complex equation to ensure a more sustainable, growing economy? Continue reading
