13/11/2021

(AU Bloomberg) Australia’s Net-Zero Plan Will Only Cut Emissions By A Third

Bloomberg Green - 

Photographer: Carla Gottgens/Bloomberg

Australia’s bid to reach net-zero emissions by 2050 will only cut the amount of greenhouse gases being produced in the fossil-fuel dependent nation by a third compared with having no plan at all, according to modeling released by the government.

The nation will still be emitting 215 million tons of emissions by 2050 under its new plan, compared with 316 million tons without it, a table in the document released Friday shows. 

Still, the modeling shows offsets will only be responsible for reducing net-zero emissions by 94 million tons by 2050. The government expects to close the gap to net-zero with technological advancements emerging over the next three decades, though the report noted that the analysis isn’t a precise prediction of economic or technology trends.

About 70% of the planned emission reductions under the plan, announced by Prime Minister Scott Morrison’s conservative government last month, is expected to come from the “technology investment roadmap,” “global technology trends” or “further technology breakthroughs.”

Emissions Target
Australia's plan to zero out greenhouse gas emissions by 2050 relies heavily on technology
Source: Australian government





The release is unlikely to ease criticism of Morrison’s policies, with Australia under pressure during the COP26 summit to enact stronger short-term action to combat climate change. The country, one of the world’s top suppliers of fossil fuels, will also continue to rely heavily on projects designed to offset planet-warming pollution.

Morrison, whose government relies on support from voters in communities with strong resources industries including coal-mining, is refusing to impose taxes on polluters, saying strict government intervention on climate change would add pressure on living costs and threaten businesses.

“Climate change will ultimately be solved by ‘can do’ capitalism, not ‘don’t do’ governments seeking to control people’s lives and tell them what to do, with interventionist regulation and taxes that just force up your cost of living and force businesses to close,” Morrison said Wednesday in Melbourne

Links

(AU SMH) The PM’s ‘Can-Do’ Climate Capitalism Won’t Work Without A Price On Carbon

Sydney Morning HeraldRosalind Dixon | Richard Holden

Authors
  • Rosalind Dixon is a professor of law at UNSW Sydney and Director of the Gilbert + Tobin Centre of Public Law.
  • Richard Holden is a professor of economics at UNSW Business School and president-elect of the Academy of the Social Sciences in Australia.
Scott Morrison has suggested “can-do” capitalism is the answer to climate change.

And the Prime Minister is right – but only if he is willing to reward initiative-taking firms with the right set of incentives.

Some firms are going to make money from developing green energy alternatives – especially now that the government is subsidising those firms and their access to capital.

It has been suggested that the $1 billion Low Emissions Technology Commercialisation Fund might result in new investment in emerging techniques such as direct air capture and storage, or methane-reducing livestock feed.

That’s good news for early stage green-tech firms looking for cheap capital.

Prime Minister Scott Morrison needs to create the right environment for firms to embrace carbon reduction. Credit: Dominic Lorrimer


But many firms are going to look at these new green alternatives and say: “I can, but I won’t.”

These alternatives do not enhance my bottom line. Why? Because even with great technological advances they are likely to be more expensive than coal for quite some time – unless one accounts for the true social cost of coal, which includes its environmental damage.

There’s a reason fossil-fuel technologies have been so dominant for so long. It’s because they are cheap when one only considers the financial cost, and not the environmental cost.

The success of a green technology push requires factoring in the social cost of energy. This puts all technologies on a level-playing-field, and thus provides the right incentives for adoption as well as innovation.

Take carbon capture and sequestration – a technology that can substantially reduce carbon emissions from coal-fired power plants.

This is an existing technology that could no doubt be refined. It exists and it works – we don’t need a billion-dollar slush fund to develop it. But it is expensive to implement, and reduces the energy produced by those plants by approximately 20 per cent.

So if plants are owned by private companies, who don’t think about social costs and benefits, there will be little incentive to adopt carbon capture. The can-do attitude for these businesses is “yes we can pollute and stay profitable”.

The first steps have been taken towards a new policy on energy and carbon emissions.

The only way can-do capitalism makes sense, as an environmental policy, is if the government adopts a price on carbon, or an equivalent market-based policy such as the cap-and-trade model proposed by the Business Council of Australia through tightening the existing safeguard mechanism.

If there is a price on carbon, polluting costs businesses money. So the can-do attitude becomes about how to reduce those costs, and with them, the pollution itself.

Other businesses will then also have an incentive to invest in green technologies, even without a government subsidy, because they know that can-do capitalists will be interested in purchasing that technology – to reduce their tax burden, and costs.

Electric cars
Morrison’s electric car policy misses the price point
Capital markets will also see this and be more willing to lend to green-tech start-ups.
A carbon price has a chequered political history in Australia. But that history should not obscure the fact that it is the only real way for can-do capitalism to be a form of can-do environmentalism.

It is also a policy that has increasing support in the business community, and globally.

Without a price on carbon, we will be paying the price in lost tax revenue – because our export-businesses will have to pay it anyway (but not in Australia) through carbon-border-adjustment taxes.

That additional revenue could also do a lot of good. It could be used to pay for the government’s can-do lending program to green businesses. Or it could be used to pay a dividend to households, to compensate them for the rise in costs associated with true action on climate.

Can-do policies are a good idea, but only if they understand how and when markets can work to our benefit: when businesses have an incentive to reduce emissions because doing so reduces their tax burden, and increases their profit.

It is hard for the government to admit this politically. But we know they can.

Links

(USA Washington Post) 2C Or 1.5C? How Global Climate Targets Are Set And What They Mean

Washington PostAdam Taylor | Harry Stevens

How much warming can the world bear?

That question is one of the fundamental issues in dispute at the ongoing U.N. climate change summit, known as COP26, in Glasgow, Scotland.

Here’s what different levels of warming would look like, and how global temperature targets have been set.
Six years ago, when countries came together in Paris for the COP21 summit, at which the Paris climate accord was shaped, they committed to limit the global average temperature rise to well below 2 degrees Celsius (3.6 degrees Fahrenheit) above preindustrial levels.

However, while the 2015 agreement set 2C as the minimum, it included language that suggested countries should push for a more ambitious goal: 1.5C.

A preliminary draft of the COP26 agreement released Wednesday “reaffirms” the Paris agreement’s goal: limiting warming to well below 2C and pursuing a target of 1.5C. But it does not commit to meeting the 1.5C threshold.

The difference between the two targets may seem small, but they represent vastly different levels of effort for countries seeking to limit their carbon footprints, and strikingly divergent outcomes for the planet.

Some experts doubt that 1.5C remains achievable. Limiting warming to 1.5C “will be very difficult,” Microsoft founder and philanthropist Bill Gates told U.K. lawmaker Jeremy Hunt in a conversation hosted by the think tank Policy Exchange last week.

Evidence shows that the two targets also represent different scenarios for the climate’s impact on human life.

A study released Tuesday by the U.K. Met Office, Britain’s national weather service, found that 1 billion people could face heat stress, a potentially fatal combination of heat and humidity, if temperatures rise by 2C.

“The higher the level of warming, the more severe and widespread the risks to people’s lives, but it is still possible to avoid these higher risks if we act now,” said Richard Betts, one of the leaders of the project.

Tuvalu's foreign minister gave a speech to COP26 on Nov. 8, standing in the ocean to show how his Pacific island nation is on the front line of climate change. (Reuters)

How did the world agree upon a 2C target?

When world leaders came together in Paris in 2015, they were looking to reverse a long period of international inaction after the widely perceived failures of the 1992 Kyoto Protocol and the 2009 Copenhagen Accord.

The latter had included nonbinding language that referenced “the scientific view that the increase in global temperature should be below 2 degrees Celsius.”

During his visit to the COP26 climate summit in Glasgow, Scotland, Rep. Garret Graves (R-La.) explained how he talks to his party about the climate crisis. (Casey Silvestri/The Washington Post)
Nearly 200 countries signed onto the agreement in Paris, which was adopted in 2015 and took effect in 2016.

Under the accord, countries would set their own emission reduction targets and plans to reach those targets, but agreed to the long-term temperature goal to limit “the increase in the global average temperature to well below 2C above preindustrial levels.”

Countries would also pursue “efforts to limit the temperature increase to 1.5C above preindustrial levels, recognizing that this would significantly reduce the risks and impacts of climate change,” according to the text.

The two targets, one firm and one aspirational, represented a fierce policy debate.

Developing countries had been pushing to set a rise of 1.5C as a target for years. Small island nations were often the most vocal in their support, pointing to the existential threat they faced.

Around the world, many adopted the slogan “1.5 to stay alive.”

Has there been a movement toward a 1.5C target?

The Paris agreement represented a significant shift. More than 100 countries expressed support for a target of 1.5C, including for the first time some major emitters.

Notably, the United States got on board, joining a group called the “High Ambition Coalition” founded by the Marshall Islands in 2014.

Scientific pressure played a role in the change. In a paper published during COP21, Nature Geoscience stated that “no scientific assessment has clearly justified or defended the 2° C target as a safe level of warming, and indeed, this is not a problem that science alone can address.”

But there remained some skepticism, with oil and gas producing Saudi Arabia among the countries pushing back on the more ambitious targets. Some officials argued that countries should keep to the less ambitious target so that countries were not set up for failure.

Former president Donald Trump pulled the United States out of the Paris agreement and promoted the use of fossil fuels.

But, under President Biden the United States has not only rejoined that agreement but also the group of nations that say that 1.5C should be the standard.

However, the U.S. leader has also privately questioned whether even the 2C goal is attainable if top emitters do not stick to their pledges. And while the draft released from COP26 on Wednesday did include new terms, it did not set 1.5C as a target.

What does the science say about the difference between 1.5C and 2C warming?

The Intergovernmental Panel on Climate Change (IPCC), a U.N. body responsible for assessing the scientific research on climate change, has warned that even an increase of 1.5C of global warming would result in significant differences, with increased heat waves and short cold seasons.

At 2C, however, the changes will be more profound. “With every additional increment of global warming, changes in extremes continue to become larger,” the IPCC wrote in a report released earlier this year that evaluated more than 14,000 papers.

The IPCC has found that an extreme heat event that would have occurred once per decade in a climate without human influence, would happen 4.1 times a decade at 1.5C of warming. It would occur 5.6 times at 2C. Other events such as heavy precipitation or drought would also increase.

The IPCC also noted that it was very likely that the relative sea level will continue to rise throughout the 21st century and beyond, and the level it rises will be affected significantly by the level of climate change.

If temperatures are confined to an increase of 1.5C, over the next 2000 years sea levels could rise by as much as 10 feet, but it could be double that if temperatures grow by 2C, the IPCC research found, and potentially worse if ice sheets in Antarctica become destabilized.

Individual papers have spelled out similar scenarios, though they also show that increases of over 2C could be far worse. The Met Office study released on Tuesday found that while a 2C increase would result in the number of people living in areas affected by extreme heat stress rising from 68 million today to 1 billion, a 4C rise could see nearly half of the world’s population living in those areas.

What are we at now?

A Washington Post analysis of multiple data sets has found that Earth has already warmed more than 1 degree Celsius on average over the past century. Some places may already have seen rises of 2C.

In their latest report, the IPCC estimated that under the current scenario, the world would likely hit the 1.5C threshold by 2040. Under the most optimistic scenario presented in the report, global temperatures would reach 1.5C by the middle of the century and then drop back down as emissions were cut further, potentially avoiding some of the worst outcomes.

Under the worst scenario envisaged by the IPCC, the best estimate was that the world will likely see a rise of 4.4C by the end of the century — with an extreme impact on life on Earth.

Links