02/02/2017

What Will Happen If The U.S. Withdraws From The Paris Climate Agreement

Fast CompanyAdele Peters

Trump's EPA transition leader says the administration will soon move to leave the groundbreaking climate agreement. How will that work, and what will it mean for clean energy in America, and the fate of the world?
Photo: Jesse Gardner via Unsplash
After reviving the Keystone XL Pipeline, pushing for the Dakota Access Pipeline, and temporarily banning refugees from entering the U.S., Trump may soon move on to one of his next campaign promises: pulling out of the Paris climate agreement.
Myron Ebell, who led the transition team for the Environmental Protection Agency, predicts that Trump will withdraw from the deal, and might do it within days.
Photo: Jordan Donaldson via Unsplash
To be clear, Ebell is not currently part of the administration, so his prediction is that of an outsider. When Rex Tillerson, Trump's nominee for secretary of state, was asked about the Paris deal in his confirmation hearings, he said that the U.S. would be "better served by being at that table than leaving that table.
"They could potentially do something even faster just by ignoring rules and stopping to participate."
During the campaign, Trump promised to "cancel" the Paris agreement. After the election, he claimed that he would keep an "open mind" about climate change. Given that he's surrounded himself with climate deniers who want nothing more than to gut the deal, his campaign promises seem more likely than his post-election nod at thoughtful restraint.
The landmark agreement saw 190 countries make pledges to stabilize emissions to limit climate change. The U.S. pledged to reduce greenhouse gas emissions 26% to 28% below 2005 levels by 2025.
It's not simple to withdraw—the U.S. already ratified the agreement, so it would have to wait three years before announcing a withdrawal, and then it would take another year before the process was finished. But the agreement falls under an earlier 1992 treaty—the United Nations Framework Convention on Climate Change—and if the U.S. withdrew from that instead, it would only take a year. And all that assumes that the administration cares about laws.
"They could potentially do something even faster just by ignoring rules and stopping to participate," says Andrew Light, a distinguished senior fellow in the climate program at the World Resources Institute, who was also part of the climate team in the State Department leading up to the agreement.
If the U.S. withdraws from the Paris agreement, or simply doesn't make an effort to meet its pledged (but voluntary) targets, that will have several consequences beyond those on the climate itself—including impacts on the economy and security.
By 2030, renewable energy is estimated to be a $6 trillion market. Without the federal government behind it, U.S. companies may fall behind the rest of the world.
"I think if the U.S. withdrew, then it would probably make it much harder for [U.S. renewable energy companies] to sell their products around the world, because they've got competition," says Light.
"We're effectively taking ourselves out of the clean energy economy."
China is investing $360 billion in renewable energy over the next few years, which will create 13 million new jobs. Other countries may decide to penalize the U.S. if it fails on the Paris agreement. "They could do that by lowering tariffs, for example, from other countries that would be trying to sell clean energy technologies," he says.
Beyond the Paris agreement, the government also plays a big role in helping the renewable energy sector succeed in selling to the rest of the world and creating more U.S. jobs, though instruments like the Export-Import Bank and Overseas Private Investment Corporation. Without that investment, "we're effectively taking ourselves out of the clean energy economy," Light says.
Before the inauguration, 530 companies and 100 investors wrote an open letter to the new administration asking for support of low-carbon policies, investment in the low-carbon economy, and continued participation in the Paris agreement.
"I think if the U.S. completely pulls away from this, we're going to see a diplomatic blowback. It's going to be significant."
"Failure to build a low-carbon economy puts American prosperity at risk," they wrote. "But the right action now will create jobs and boost U.S. competitiveness."
Withdrawing from the Paris agreement would also affect the U.S. relationship with other countries. "To create the first climate agreement we were really pushing lots of leaders to really get on board and get this thing done," says Light. "I think if the U.S. completely pulls away from this, we're going to see a diplomatic blowback. It's going to be significant, and it will impact a lot of areas that this administration will care about a lot more than climate change, especially on trade and national security issues."
In the longer term, failing to reduce emissions now will lead to spending trillions of dollars dealing with the damage caused by climate change. It will also lead to greater security threats as climate impacts create new political instability.
All hope is not lost: Even if the federal government rejects the Paris agreement, cities, states, and businesses can potentially make enough progress to come close to the Paris target of 26% to 28% reductions. By 2050, the longer-term goal of the U.S. was to reduce emissions 80%, in line with some recommendations to avoid catastrophic climate change.
"I think there's a good chance that between what states and cities are doing, and what businesses are doing, that we can hit somewhere maybe on the lower end of that range by 2025," says Light. "But unless we have an administration that continues ambitious action starting in 2020, I think it's going to be really difficult for us to get back on track so that we hit any lower by 2030."

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State Renewable Energy Targets 'Will Be Vital To Meet Emissions Goals'

The Guardian

RETs are the only policy tool left to shift Australia’s electricity sector away from fossil fuels, RepuTex modelling shows
Under current policies, state RETs will become essential to Australia’s carbon reduction efforts, a report has found. Photograph: Steven David Miller/Getty Images/Nature Picture Library
State-based renewable energy targets are becoming essential drivers of Australia’s carbon reduction framework and, based on current policy settings, will be vital for Australia to meet its 2030 emissions targets, according to a report by the energy consultancy RepuTex.
The finding comes amid attacks on state-based renewable energy targets by the prime minister, Malcolm Turnbull, and his ministers, who have called for them to be scrapped.
According to modelling by RepuTex, since the federal government has excluded the electricity sector from the so-called “safeguard mechanism” and ruled out any sort of carbon trading, state and federal RETs are the only policy tool left to shift the sector away from fossil fuels.
The government has released projections showing that under current policies emissions would continue to rise to 2020 and 2030, leaving no chance for Australia to meet its 2030 targets.

Renewable energy targets in the Australian Capital Territory, Queensland, South Australia and Victoria would have an effect equivalent to that of raising the federal RET to 35% by 2030, from its current target of 23% by 2020, the RepuTex report found.
Combined state and federal RETs would amount to fulfilling 20% of Australia’s 2030 abatement task, it said.
“In the absence of a federal policy framework, state actions are likely to drive large-scale emissions reductions,” said RepuTex’s executive director, Hugh Grossman. “We would therefore see the states as the dominant driver of the national energy and climate debate.”
Grossman said the reliance on renewable energy targets to achieve the transformation was far from ideal, since it didn’t provide certainty to the market and wouldn’t put downward pressure on prices. “We consider not implementing an emissions intensity scheme a policy failure,” he said.
Next week Turnbull is expected to outline new vehicle emissions standards which, using a best-case-scenario, Reputex estimated could account for 7% of the government’s abatement task by 2030.
Assuming the government doubles its nearly empty emissions reduction fund, and accounting for expected reductions from synthetic greenhouse gases, RepuTex found the government would have left more than 40% of its abatement task unaddressed.
“With an EIS off the table, and no extension of the RET, the government has a limited number of policy levers to meet its 2030 target,” Grossman said.
As a result, a tightening of the last remaining lever, the “safeguard mechanism”, would be needed, the report said. The safeguard mechanism sets emissions caps – or “baselines” – for polluting industries, with the exception of the power sector.
RepuTex found that to fill the abatement gap, the government would need to reduce the baselines by between 1% and 3% each year.
Grossman described meeting those tightened baselines as a “modest task for industry”. “This reinforces the zero-sum nature of Australian climate policy – the exclusion of one policy lever is fine – but losses will need to be balanced elsewhere in the economy,” he said.

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Coal Could Get Clean-Energy Subsidy Under New Turnbull Focus

Fairfax

Malcolm Turnbull has opened the possibility of using clean-energy subsidies to build new-generation, coal-fired power stations as he branded Labor's heavy focus on renewables "mindless", and a recipe for more expensive, less reliable electricity.
Flagging a policy switch sure to provoke anger from anti-coal environmentalists, but set to please fossil-fuel enthusiasts in the Coalition partyroom, Mr Turnbull said technological advances had made new coal-fired generators viable as a potential foundation in the overall energy mix.

"The next incarnation of our national energy policy should be technology agnostic - it's security and cost that matter most, not how you deliver it," he told the National Press Club in Canberra.
This called for a policy approach that was non-ideological, using "all of the above technologies" - coal, wind, solar, pumped hydro, and improved battery storage.
Malcolm Turnbull has flagged a policy switch that is sure to provoke anger from anti-coal environmentalists. Photo: Brendan Esposito
"Storage (battery) has a big role to play, that's true, but we will need more synchronous baseload power and, as the world's largest coal exporter, we have a vested interest in showing that we can provide both lower emissions and reliable baseload power with state-of-the-art, clean-coal-fired technology," he said.
And in a clear sign that the politics of the change will be packaged in retail terms - ie, what it would mean for ordinary consumers and businesses - he declared: "The battlelines have been drawn - it is clear that the Coalition stands for cheaper energy."
The comments came in a scene-setting speech in which the Prime Minister drew his battlelines of 2017 as the push for lower business taxes, cheaper and more reliable energy, and more affordable childcare funded through the abolition of Family Tax Benefit subsidies.
While he did not repeat Tony Abbott's moral declaration that coal is "good for humanity", he arrived at a similar position from a practical standpoint, observing that Australia was not playing to its natural advantages of plentiful gas, and abundant coal.
"Australia is the world's largest exporter of coal, has invested $590 million since 2009 in clean-coal technology research and demonstration, and yet we do not have one modern High Efficiency Low Emissions (HELE), coal-fired power station, let alone one with CCS (carbon capture and storage)"," he said.
"Increasing gas supply in Australia is vital for our energy future and vital for industries and jobs, but state bans on onshore gas development will result in more expensive and less reliable energy."
The option of redirecting federal subsidies from exclusively renewable energy projects to encourage investment in new, coal-fired power generators, is among "several ideas" being considered as part of a wide review of policy.
A number of countries, including Japan, currently use either supercritical (SC) and ultra-supercritical (USC) coal-fired generators, which work with black coal and higher temperatures to produce more energy per tonne but with lower emissions than their predecessors.
Under pressures from both political flanks, Mr Turnbull used the speech, his first set-piece political address for the year, to propose a new approach to climate and energy policy in which the metrics are energy affordability, energy security, and the lowest achievable emissions.
Senior ministers are now actively discussing a plan in conjunction with Chief Scientist Dr Alan Finkel, who is undertaking a review of energy markets.
"He and others and a group of cabinet ministers are working with the Prime Minister now on a set of proposals, to provide, if you like, a more systemic approach to all of this," revealed Industry Minister Arthur Sinodinos, speaking on Sky News.
The policy shift puts the government on a collision course with the opposition and the environmental lobby over climate policy, reviving the carbon tax wars of recent years.
Mr Turnbull also used the podium to slam the Labor states for pursuing unrealistic renewable energy targets while opposing onshore gas exploration, sayingf: "Nothing will more rapidly de-industrialise Australia and deter investment more than more and more expensive, let alone less reliable, energy."
He offered to lead new Commonwealth/state discussions in a bid to see those moratoriums lifted.
Mr Turnbull's speech followed just one day after that of the Opposition Leader Bill Shorten, who used his Press Club opportunity to defend Labor's ambitious 2030 target for Australian renewable energy consumption of 50 per cent.
He said the 50 per cent target would generate new jobs for scientists, technicians, and blue-collar workers alike.
The government argues the costs to the economy would be prohibitive, leaving consumers out of pocket, while driving up business costs and risking investment and jobs.
An independent assessment by the Australian Energy Market Regulator put the potential cost of the 50 per cent RET at some $48 billion.
In his speech, Mr Turnbull revealed he had asked the Australian Renewable Energy Agency and the Clean Energy Finance Corporation to work together "on a new funding round for large-scale storage and other flexible capacity projects, including pumped hydro".
If it occurs, the role-change of using the CEFC to subsidise new private investment in coal-fired power, would be a startling variation from the policy pursued by Tony Abbott, who tried unsuccessfully to scrap what he had dubbed as "Bob Brown's bank".

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