11/10/2018

The Economic Case For Climate Action Is Strong

Sydney Morning Herald - Editorial

If you do not trust the International Panel on Climate Change you should probably not trust the Nobel Prize for economics.
Yale economist William Nordhaus has just won the highest honour in his profession partly for his work on the economics of climate change.
His modelling calculated the costs of investing to reduce greenhouse gas emissions and then compared them to the social and economic costs of doing nothing and just allowing temperatures to rise. The bottom line was that investment in emissions reduction was a lot better value.
By coincidence, Professor Nordhaus' work provided the economic foundation for the International Panel on Climate Change report also released on Monday which urged the world to take more "rapid and far reaching" measures to cut emissions.
The IPCC report found that it still worth taking the fairly drastic action required to limit the increase in global temperatures to a rise of 1.5 degrees by 2050 as a result of global warming as compared to going slow and allowing for a bigger rise in temperature.
“Limiting global warming to 1.5°C compared with 2°C would reduce challenging impacts on
ecosystems, human health and wellbeing," the IPCC report found.
The obvious big cost for Australia is that if the rise in global temperatures can be kept to below 1.5 degrees as much as a third of the Great Barrier Reef could still be alive in 2100 but if it rises by 2 degrees the reef will die.
So when Prime Minister Scott Morrison claims to be arguing from a  hard-headed economics perspective in dismissing the IPCC, the Nobel committee respectfully disagrees.
Yale University Professor William Nordhaus. Credit: AP
Mr Morrison's response to the IPCC report confirms that the next election will pose one of the clearest choices on climate change policy in over a decade.
This will be the first election since 2004 where one of the major parties  will campaign without even the skimpiest fig leaf of a policy on climate change.
Mr Morrison has responded by repeating his nonsense claim that Australia will meet targets for cutting emissions under the Paris treaty "at a canter" despite data from his own Ministry of Environment that emissions are rising and not falling as the government has promised.
While he is wary of the science, Mr Morrison appears to believe in magic. It is unclear why he thinks emissions would fall without any policy to do so. The government has ditched the National Energy Guarantee, its only emissions control policy.
The ALP's policy is for cuts in emissions which are at least in the ball park for the rapid and far-reaching target advocated by the IPCC. If they were serious, they would follow Professor Nordhaus' prescription of putting a price on carbon.
Government ministers responded to the IPCC by deploying the straw-man argument that Australia cannot survive without coal. True. It is is impossible to do it tomorrow. But that choice is false. Australia's old coal-fired electricity generators will inevitably give up the ghost over the next few decades. The issue is how fast they drop out of operation and what they are replaced with. With a time horizon of a couple of decades drastically reducing coal emissions is very possible.
Unfortunately, because Australia and the world have been slow to act, greenhouse gases have built up and it has become more expensive to stop global temperature rising at a dangerous pace. But the costs of doing nothing are ever more onerous. The smartest economist in the world says so.

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Can We Quit Coal In Time? IPCC Warns World Has Just 12 Years To Avoid Climate Change Catastrophe

ABCAngela Lavoipierre | Stephen Smiley

China hopes coal-fired power plants will become a thing of the past. (ABC News: Brant Cumming)

The IPCC issued its bleakest report yet this week, saying that without drastic changes, the world doesn't have a hope of avoiding uncontrollable climate change.
Unless emissions are halved within 12 years and virtually eliminated by 2050, temperature increases will likely exceed 2 degrees Celsius.
Beyond 2 degrees, scientists predict temperature increases may spiral as the climate breaches a series of unique tipping points, such as the melting of the permafrost.
The top culprit is fossil fuels, and the instructions to Australia and the rest of the world are clear: Quit coal by 2050.
Specifically, the report's authors say that coal usage needs to drop to between 0 and 2 per cent of existing levels.
At the moment, the countries responsible for the bulk of the world's emissions are scaling down their reliance on coal, but developing countries in South-East Asia are moving in the exact opposite direction, even going so far as to build new coal-fired power plants with the help of foreign finance.
If they're all built, Australian coal is likely to be used to keep those generators running for decades into the future.
So with all that in mind, is it possible for the world to quit coal in time?

Australia's coal habit
Much has been written about Australia's love affair with coal.
The bulk of Australia's coal is mined in Victoria, New South Wales and Queensland, with the most polluting coal — also known as brown coal — coming predominantly from Victoria.
Australia has more than 21 coal-fired power stations in operation, and still relies heavily on coal for electricity.
There are no new coal-fired power stations currently being built in Australia, but Energy Market Analyst Tim Buckley has told The Signal 80 per cent of Australia's coal is exported.
He said he believes "it's entirely possible, [but] it's entirely improbable" that Australia will manage to wean itself off coal by 2050, if the current policy settings remain.
The Government's own figures, released two weeks ago, reveal Australia's emissions are currently rising.
But Prime Minister Scott Morrison says he's confident Australia will meet its 2030 Paris targets to cut emissions 26-28 per cent on 2005 levels.
While there are no new coal-fired power stations being built in Australia, 80 per cent of Australia's coal is exported to other countries. (Supplied: Clean Energy for Eternity)
Who's quitting coal

New coal power is not the answer
The tipping point's been reached: the cold, hard numbers show that new renewable energy is supplying cheaper electricity than new coal-fired power plants could and will continue do so, writes Stephen Long.

In responding to the IPCC report, Scott Morrison has been quick to point out that Australia's emissions are only a fraction of the world's overall carbon output, coming in between 1 and 2 per cent.
By contrast, the US, China, Japan, and India are the world's biggest emitters.
Tim Buckley said Japan has been slow to act, but has had a recent change of heart.
"Japan is definitely pivoting. They've gone from being a world laggard — Japan is going in the other direction".
China and India on the other hand, have been investing heavily in renewables.
"What happens in China drives the world when it comes to coal.
"China is half the world's coal production, half the world's coal consumption — it's the biggest importer of coal, and for the last five years the chinese central leadership has been on an absolute mission to decarbonise their economy".
"India is really exciting. Prime Minister [Narendra] Modi was elected on a solar platform.
"They are saying that 40 per cent of their electricity generation capacity by 2027 will be renewable energy, up from maybe 10 per cent three years ago, so it's just a huge transformation."
US President Donald Trump has expressed enthusiasm for coal, and long threatened to pull America out of the Paris Climate Agreement.
But Tim Buckley said the transformation set in motion during the Obama years was significant.
"Coal went from being 50 per cent of US electricity system a decade ago, but it hit a record low last year of 30 per cent and it's gone even lower this year".
Of Australia's reliance on coal as an export, he said: "We can turn the ship around. Our biggest customers are turning the ship around."

Which countries are doubling down
Not every country is bailing out of coal.
In fact, Australian coal miners are likely to have markets in the region for decades to come.
"South-East Asia is still on a coal-fired power station expansion program, that's really the last bastion of growth".
Tim Buckley says the rest of the world's cuts won't be enough to compensate for further increases in coal use in South-East Asia. (Supplied: Rio Tinto)
Vietnam, Thailand, Indonesia and the Philippines are all planning to build new power plants.
Tim Buckley said if all those plans come to pass, the rest of the world's cuts won't be enough to compensate for that increase.
"Therefore we have to assume that the world is going to go off the climate cliff.
"We are going to have a climate catastrophe if Asia continues to get foreign subsidies finance to build these coal plants, because once you build a coal plant, you're locking in 45 years of coal burning.
"So if Asia goes and replicates the same sort of industrialisation that Australia, America, Europe and China have all done, we all go off the cliff".

How to get coal under control
Tim Buckley said each of those power plants will cost $2-$3 billion dollars to build, and require government subsidies.
He says the capital subsidies supporting those planned projects are coming primarily from Japan, South Korea and China.
He's hopeful that finance will fall through.
"If South Korea and Japan stop providing those subsidies, China is now the last man standing.
"If China moves, and pulls the subsidies, there is no way new coal plants will be built in South-East Asia, they will pivot to renewables."
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Australia Doesn’t Care To Break Its Coal Habit In The Face Of Climate Change

Ars Technica - 

US not the only nation with a complicated relationship with coal.
Coking coal.
Luke Sharrett/Bloomberg via Getty Images
Earlier this week, the Intergovernmental Panel on Climate Change (IPCC) issued a dire warning about climate change: unless governments of the world coordinate to implement multiple long-term changes, we risk overshooting the 2°C warming scenario that countries strived to target in the Paris Agreement. This would lead to ecosystem damage, increasingly dramatic heat waves and previously-irregular weather patterns in different regions, and subsequent health impacts for humans.
Retiring coal-fired power plants is a significant action that could limit our race toward an unstable future. But Australia's officials don't quite care. According to The Guardian, the country's deputy prime minister, Michael McCormack, said that Australia would "'absolutely' continue to use and exploit its coal reserves, despite the IPCC's dire warnings the world has just 12 years to avoid climate-change catastrophe."
McCormack also reportedly said that Australia would not change its coal policies "just because somebody might suggest that some sort of report is the way we need to follow and everything that we should do."
The country's previous prime minister, Malcolm Turnbull, abandoned emissions reductions targets that the nation had agreed to, and Australia's renewable energy targets are set to expire in 2020. In September, government analysis showed that Australia's greenhouse-gas emissions increased last year, and independent analysts said the country would likely not meet the greenhouse-gas emissions reductions that it committed to under the Paris Agreement. Unlike the US, Australia has not exited the Paris Agreement, but the country's current prime minister has declined to add any more money to the global climate fund.
McCormack said on Monday that coal provides 60 percent of Australia's electricity and coal mining operations support 50,000 jobs. Australia exports significantly to other Pacific countries. One of those countries is China, which is the world's largest consumer of coal products.
Australia's operating black and brown coal mines as at December 2012.
Source: Geoscience Australia.

But what about the big battery?
Despite Australia's coal habit, the country is also home to the world's largest grid-connected battery, a Tesla system connected to a wind farm in South Australia. The Australian Energy Market Operator recently praised the system for its quick response to frequency abnormalities on the grid. After the success of that grid-connected battery, Tesla seemed keen to install a "virtual power plant" made of distributed solar panels on Housing Authority homes. But the new South Australian premier has cast doubts about whether the plan would go forward.
On Monday, "McCormack said he 'understands the concerns' expressed in the IPCC report, but admitted he hadn't read it yet," The Guardian wrote. McCormack added in a Monday interview that coal-fired power stations would be around in Australia "for more than just 10 years."
Environment Minister Melissa Price seemed just as unconcerned as McCormack, saying that "it would be 'irresponsible' to commit to phase out coal by 2050 because clean coal technology could be available by then," the Guardian reported. Carbon Capture and Storage has not yet been proven to be an economic solution—without a price penalizing carbon emissions, adoption of CCS techniques are prohibitively expensive.
Still, Australia ranks only fourth for economic coal resources, with the US, Russia, and China ahead of it. In the US, which has the world's largest economic coal resource, the Trump administration has had a difficult time fighting to save coal. On Wednesday, US coal supplier Westmoreland filed for Chapter 11 bankruptcy in the face of $1.4 billion in debt. That makes the company the fourth major US coal supplier to file for bankruptcy in recent years due to the significant decline in coal use.
Although coal production in the US increased slightly in 2017 after years of punishing loses, 2018 is shaping up to show more declines according to the Energy Department's most recent Quarterly Coal Report. The first and second quarter of this year showed less coal produced than in each of the similar quarters last year.

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10/10/2018

How To Understand The UN's Dire New Climate Report

The Atlantic - 

It tries to find hope against a backdrop of failure.
Men perform a ceremony on the drought-stricken bed of Poopo, a lake in Bolivia. David Mercado / Reuters
People must be burnt out on major climate reports, and can you really blame them? Every year, it seems, yet another group of scientists compiles what we know about climate change. And every year, with few exceptions, the broad outlines of that knowledge seem worrying. But nothing ever really changes—and so our ongoing apocalypse becomes not only all the more terrifying, but all the more tedious.
That burnout is understandable, but I urge you to pay attention to—yes—a new report, released this week by the Intergovernmental Panel on Climate Change, the UN-convened coalition of climate scientists from around the world. Where previous assessments have warned of our hideous overheated future, this one does something different: It tries to sketch a better one.
The report articulates what seems, from the vantage point of 2018, like a best-case scenario for climate change. It describes what the world will look like if it warms by only 2.7 degrees Fahrenheit, or 1.5 degrees Celsius, by the end of this century. Meeting that target would require humanity to abandon coal and other fossil fuels in the next decade or two: an economic transition so abrupt that, in the IPCC’s words, it “has no documented historic precedents.
This lukewarm world would still suffer many of the consequences of climate change. There would be more deadly heat waves, more heavy rainstorms, and more intense and frequent droughts. Yet some of the phenomenon’s most catastrophic symptoms—including dozens of feet of sea-level rise and planet-wracking extinctions—might be averted.
The report, in other words, lays out humanity’s last best hope for managing climate change. But it does so against a backdrop of generational failure.
More than a quarter-century ago, the countries of the world hammered out the UN Framework Convention on Climate Change. In language signed by President George H. W. Bush and ratified by the Senate, that document—which later gave rise to both the IPCC’s reports and the Paris Agreement—laid out the goal for all of the UN’s future work on climate change. “The ultimate objective,” it said, was to cut greenhouse-gas emissions so as to “prevent dangerous anthropogenic interference with the climate system.”
“Climate scientists have made it abundantly clear, over the past few years, that we’ve already passed that goal. We’ve already dangerously interfered,” says Christopher Field, the director of the Stanford Woods Institute for the Environment who has worked on previous UN reports, but was not involved in this one.
The new report confirms his contention. It finds that the world has already warmed by 1.8 degrees Fahrenheit, or 1 degree Celsius, since humans began sending industrial pollution into the atmosphere. The costs of this warmth can be seen around the world: This decade alone, sweltering heat waves have killed thousands; engorged floods have ravaged cities from Houston to North Carolina; and half of the coral in the Great Barrier Reef has died.
The question is what happens next. “The international community is struggling with how to address the climate challenge … [while] not being able to meet the ultimate objective,” Field told me. “We’ve already seen dangerous interference—now the question is, how do we deal as effectively as we can with that?”
The new 2.7-degree plan tries to lay out such a strategy. Written by 91 researchers from around the world, it summarizes the findings of more than 6,000 different scientific studies. It argues that humanity must begin rapidly switching away from fossil fuels if it hopes to avoid ecological upheaval. But almost every step of its prescription sits at odds with current policy.
Under its plan, the level of carbon pollution released into the atmosphere every year must begin to fall immediately. (Instead, it hit a record high last year.) By 2030, the world would need to have cut its annual emissions by about half. (Even the Obama administration’s now-cancelled climate policies only cut U.S. emissions by about a quarter by that year.) By 2050, the world must get 80 percent of its electricity from renewable or nuclear power. (Today, only about 20 percent of electricity comes from those sources.)
Additionally, humanity would need to start removing more carbon dioxide from the atmosphere than it emitted by 2050. But even in that world, humanity would probably overshoot the 1.5-degree target for a few decades.
Nowhere are its prescriptions more glaring than around coal. By 2050, it warns that coal must generate no more than 7 percent of global electricity. Today, coal generates about 40 percent of the world’s power.
But more than 1,600 new coal plants are due to come online worldwide in the next few decades, most under contract from Chinese companies. The Trump administration, meanwhile, has tried to create new subsidies for coal companies. It has also moved to weaken or repeal pollution regulations limiting airborne neurotoxins, as well those reducing greenhouse-gas emissions—rules that attracted the ire of coal companies.
“Many will dismiss the [2.7-degree] target as unrealistic, if not laughable,” said Kim Cobb, a professor of climate science at Georgia Tech, in an email. “It is not our job as scientists to give the world a ‘pass’ in the face of damaging delays in tackling climate change.”
She added that its authors “spent months of their lives outlining a path that is entirely justified, from a cost perspective, and urgently needed.”
This report is the first time that the IPCC has examined a 2.7-degree warming “target.” For more than a decade, every nation on the planet has pledged to limit warming to 3.6 degrees Fahrenheit, or 2 degrees Celsius. This goal remains as notional as its newer and more ambitious peer: Even if every country met its obligations as they stand today under the Paris Agreement, the world would emit too much carbon dioxide and shoot past the goal.
But that less ambitious target of 3.6 degrees Fahrenheit has started to look more and more dangerous. In particular, increasing Earth’s temperature by that amount seems like it might greatly increase the risk of destabilizing ice sheets in Antarctica and Greenland.
“We know there’s a threshold somewhere—probably in the vicinity of [3.6 degrees Fahrenheit]—where we’re very likely committed to more than [30 feet of sea-level rise] over centuries,” Field told me. It may be possible to preserve those large stores of ice at 2.7 degrees, scientists have found.
Katharine Hayhoe, a climate scientist at Texas Tech, told me that the report as a whole should be seen as a re-appraisal of where we’re heading as a planet. “It’s like we had a medical issue. The physician had diagnosed it. But now they’re worried it might be worse than we thought,” she said. “So we go back and do a complete work over, every type of test we can imagine.”
The new prognosis is stirring. A world that warms by 3.6 degrees—and not 2.7 degrees—will find that its problems metastasize out of scale with that seemingly small difference. In the hotter world, the number of people affected by water scarcity will double. Twice as many corn crops will perish in the tropics. The size of global fisheries will drop by 50 percent. And 99 percent of the world’s coral reefs will perish.
Plants and animals will also have a much harder time. If the world warms 3.6 degrees, the number of species projected to lose half their habitat will double as compared to the 2.7-degree world. These effects are particularly acute for the Arctic. In the 2.7-degree world, the sea ice in the Arctic Ocean will entirely melt about once a century. In the 3.6-degree world, the Arctic Ocean will go ice-free about once a decade—a potentially cataclysmic moment for polar bears, seals, and other high-latitude mammals.
“A lot of the reason it’s been so challenging to turn the corner on climate change is it will mean that some of the folks who are in positions of power and privilege won’t maintain that privilege,” Field said. “We have a huge number of special interests that benefit from making the transition slower rather than faster.”
Even lacking that clause, the new report might set the stage for the next stage of the climate challenge. As every climate scientist will tell you, the battle to prevent climate change entirely has already been lost. But the battle to blunt its effects—to manage it, as humanity manages the threats of hunger, poverty, war, disease, and other afflictions, and to choose a better, cooler future—has just begun.

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Why Half A Degree Of Global Warming Is A Big Deal

New York Times - Brad Plumer | Nadja Popovich | Illustrations Iris Gottlieb



The Earth has already warmed 1 degree Celsius (1.8 degrees Fahrenheit) since the 19th century. Now, a major new United Nations report has looked at the consequences of jumping to 1.5 or 2 degrees Celsius.
Half a degree may not sound like much. But as the report details, even that much warming could expose tens of millions more people worldwide to life-threatening heat waves, water shortages and coastal flooding. Half a degree may mean the difference between a world with coral reefs and Arctic summer sea ice and a world without them.

Arctic

Status of Arctic summer sea ice:

An additional half-degree of warming could mean greater habitat losses for 
polar bears, whales, seals and sea birds. But warming temperatures could 
benefit Arctic fisheries.

Extreme heat

World population exposed to severe heat waves (like one that blanketed 
southeastern Europe in 2007) at least once every five years:

Extreme heat will be much more common worldwide under 2°C of warming 
 compared to 1.5°C, with the tropics experiencing the biggest increase in the 
number of “highly unusual” hot days.

Water scarcity

Increase in urban population exposed to severe drought:

The Mediterranean region is expected to see “particularly strong 
increases in dryness” in a 2°C world compared to a 1.5°C world.

Plants and animals

Species losing more than half of their range:

Coral reefs

Status of coral reefs worldwide:

Sea level rise

Population exposed to flooding from sea level rise in 2100 (without adaptation):

A half a degree of warming could be significant for small island nations, 
which are particularly vulnerable to sea level rise and 
other climate change impacts. 

Crops

Global crop yields are expected to be lower under 2°C of warming compared to 1.5°C,
especially in sub-Saharan Africa, Southeast Asia, and Central and South America.


Small changes, big impacts
The report from the Intergovernmental Panel on Climate Change, compiled by hundreds of scientists from around the world, warns that these dangers are no longer remote or hypothetical.
Nations have delayed curbing their greenhouse gas emissions for so long that warming of 1.5 degrees Celsius (2.7 degrees Fahrenheit) is now all but inevitable. At current rates of warming, the world will likely cross the 1.5 degree threshold between 2030 and 2052, well within the lifetime of most adults and children alive today.
And 1.5 degrees is a best-case scenario. Without an extremely rapid, and perhaps unrealistic, global push to zero out fossil fuel emissions and remove carbon dioxide from the atmosphere, 2 degrees Celsius (3.6 degrees Fahrenheit) or higher this century looks more likely.
Each time the Earth heats up an extra half-degree, the effects aren’t uniform across the planet. Some regions, such as the Arctic, will heat up two to three times faster. The Mediterranean and Middle East regions could see a 9 percent drop in water availability at 1.5 degrees of warming and a 17 percent drop at 2 degrees, according to one major study cited in the report.
“If you’re looking at this one region, which is already water-scarce today and sees a lot of political instability, half a degree makes a really big difference,” said Carl-Friedrich Schleussner, the head of climate science and impacts at Climate Analytics and the lead author of that study. “It’s a good reminder that no one experiences the global average temperature.”
The odds of extreme weather events like severe heat waves or powerful rainstorms also don’t go up uniformly with an extra half-degree. The number of extremely hot days around the world, for example, tends to rise exponentially as the global average temperature increases, the report said.

The risk of tipping points
The report also highlights the possibility that even modest amounts of warming may push both human societies and natural ecosystems past certain thresholds where sudden and calamitous changes can occur.
Take coral reefs, which provide food and coastal protection for half a billion people worldwide. Before the 1970s, it was virtually unheard-of for ocean temperatures to get so warm that swaths of corals would bleach and die off. But as global average temperatures have risen half a degree in that span, these bleaching events have become a regular phenomenon.
With an additional half-degree of warming above today’s levels, the report said, tropical coral reefs will face “very frequent mass mortalities,” though some corals may adapt if given enough time. But at 2 degrees of total warming, coral reefs are in danger of vanishing entirely.
It is less certain when other long-feared tipping points will occur, such as the irreversible disintegration of the vast ice sheets on top of Greenland or West Antarctica. But the report warns that these ice sheets could potentially start to destabilize with 1.5 to 2 degrees of warming, committing the world to many more feet of sea level rise for centuries to come.
The report also warns that vulnerable areas, like many African countries and small island nations, may struggle to cope with multiple impacts. Crop failures, heat waves and the expansion of malaria-carrying mosquitoes compound when they occur together.
“You’re not just adapting to one thing at a time, you’re adapting to everything shifting at once,” said Kristie L. Ebi, a professor of public health at the University of Washington and one of the lead authors of the report’s chapter on climate impacts.

Beyond 1.5 degrees
At the United Nations climate negotiations in Paris in 2015, countries promised to hold total global warming to well below 2 degrees and agreed to “pursue efforts” to limit warming to 1.5 degrees. Leaders of small island nations, like the Marshall Islands and Maldives, had deemed that lower goal essential to their survival.
At this point, however, both goals are starting to look wildly out of reach. If you add up all the national pledges made in Paris to curb emissions, they would put the world on track to warm around 3 degrees Celsius or more.
Holding warming to 1.5 degrees, the report said, would entail a staggering transformation of the global energy system beyond what world leaders are contemplating today. Global greenhouse emissions would need to fall in half in just 12 years and zero out by 2050. To stay below 2 degrees, emissions have to decline to zero by around 2075. Virtually all of the coal plants and gasoline-burning vehicles on the planet would need to be quickly replaced with zero-carbon alternatives.
In addition, the report said, the world would have to swiftly develop and deploy technology to remove billions of tons of carbon dioxide from the atmosphere each year — using technology that is still untested at large scales.
“My view is that 2 degrees is aspirational and 1.5 degrees is ridiculously aspirational” said Gary Yohe, an environmental economist at Wesleyan University. “They are good targets to aim for, but we need to face the fact that we might not hit them and start thinking more seriously about what a 2.5 degree or 3 degree world might look like.”

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To Tackle Climate Change, A New U.N. Climate Report Says Put A High Price On Carbon

New York TimesBrad Plumer

The Tesoro Los Angeles oil refinery in California. Economists have long been enthusiastic about carbon pricing because of the idea’s simplicity. Credit Lucy Nicholson/Reuters
WASHINGTON — In its landmark report on the fast-approaching dangers of climate change, a United Nations scientific panel said on Sunday that putting a price on carbon dioxide emissions would be central for getting global warming under control.
More than 40 governments around the world, including the European Union and California, have now put a price on carbon, either through direct taxes on fossil fuels or through cap-and-trade programs. But many of them have found it politically difficult to set a price high enough to spur truly deep reductions in carbon emissions.
The concept of carbon pricing received another implicit endorsement on Monday from the Nobel Prize committee, which awarded Yale’s William D. Nordhaus a share of the 2018 Nobel Memorial Prize in Economic Science for, among other things, making a case that “the most efficient remedy for the problems caused by greenhouse gas emissions would be a global scheme of carbon taxes that are uniformly imposed on all countries.”
Scientists who worked on the United Nations report hailed Professor Nordhaus’s work as influential for thinking about how to tackle climate change.
“It’s great to see the importance of Bill’s work being recognized,” said Drew Shindell, a climate scientist at Duke University and an author of the report. “Though many think a price on carbon is too expensive, it’s really a way of getting the true impacts of emissions into the economy so we can make better decisions.”
In the 1970s, Professor Nordhaus conducted the first detailed look at the economic damages that global warming could inflict on human society, right as climate scientists were starting to sound the alarm about rising greenhouse gas emissions. He argued that companies that burn fossil fuels should be taxed at a rate that reflected the harms they were imposing on the rest of the world.
William Nordhaus shared the Nobel prize in economics in part for showing that carbon taxes are an efficient way to reduce global carbon emissions. Credit Christopher Capozziello for The New York Times
Economists have long been enthusiastic about carbon pricing because of the policy’s efficiency. Give companies a financial incentive to reduce their fossil-fuel use, and they will find creative and cost-effective ways to do so without the need for heavy-handed government regulations.
To date, however, policymakers have often had more success in reducing emissions by relying on those heavy-handed government regulations. Examples include France’s state-led push to build nuclear power in the 1970s and 1980s and the United States’ strict fuel-economy standards for cars and light trucks, which have reduced domestic oil consumption by billions of barrels.
“It is safe to say that policies other than carbon pricing have driven the majority of emissions reductions to date,” said Jesse Jenkins, a postdoctoral researcher at Harvard’s John F. Kennedy School of Government.
One possible reason for that: While government regulations can often be more expensive in reducing emissions on a per-ton basis, they also tend to hide their costs from voters, and therefore can be a safer political bet. A policy that requires utilities to build more renewable energy has visible benefits — more wind and solar — and murky costs. But a carbon tax that directly increases the price of gasoline at the pump or electricity rates brings more obvious pain, and hence is more likely to garner opposition.
A case in point: In 2012, the Australian government enacted a cap-and-trade program that effectively set a price on carbon of $23 per ton. Emissions fell nationwide under the program. Yet the policy faced a fierce political backlash from industry groups and voters, and when the nation’s more conservative Liberal Party swept into power in 2013, it quickly moved to repeal the program.
A recent report from the Organization for Economic Cooperation and Development found that the average carbon price across 42 major economies was around $8 per ton in 2018, far below the level most experts say is necessary to address climate change. Those low prices, some researchers have argued, may reflect political constraints on pricing carbon directly.
For comparison, the United Nations report estimated that governments would need to impose effective carbon prices of $135 to $5,500 per ton of carbon dioxide pollution by 2030 to keep overall global warming below 1.5 degrees Celsius, or 2.7 degrees Fahrenheit.
The O.E.C.D. report did mention, however, that carbon pricing is starting to show signs of momentum in many parts of the world. Portugal launched its own carbon tax in 2015, and Chile followed suit in 2017. China has launched an early carbon-trading program in several of its provinces. California recently expanded its own cap-and-trade program to cover 85 percent of its statewide emissions. This fall, voters in Washington State will decide whether to enact their own statewide carbon tax.
Some scientists hope that the new United Nations report on the dangers of further climate change may spur nations to step up efforts like these. “If the report works and governments take it seriously, it should increase their ambition for expeditiously reducing emissions,” said Michael Oppenheimer, a climate scientist at Princeton.
But getting anywhere near the high levels of carbon pricing envisioned by the report may take creative new strategies, said Mr. Jenkins, the researcher at Harvard. In the short term, policies that are widely popular with voters, such as mandates for renewable energy, can help reshape the political landscape to make more ambitious climate action feasible. And policies that spur innovation and drive down the cost of cleaner alternatives to fossil fuels, such as electric vehicles, could potentially make higher carbon prices more palatable.
But whether they ultimately rely on carbon pricing, direct subsidies for clean energy or other types of policies, nations will have to do far more than they are currently doing for the world to have hope of avoiding drastic climate change.
In an interview with the Nobel committee on Monday, Dr. Nordhaus said he was “concerned about the fact that we’re doing so little.” He added: “The policies are lagging very, very far — miles, miles, miles — behind the science and what needs to be done.”

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09/10/2018

Mining Sector, Morrison Government On The Defensive Over IPCC Report

FairfaxPeter Hannam | Cole Latimer

Australia's mining industry and the Morrison government have rejected an international climate report that demands nations phase out all coal-fired power by mid-century and leave most fossil fuel reserves untapped to avoid dangerous global warming.
The Intergovernmental Panel on Climate Change's special report, released on Monday, said average temperature increases could still be kept to 1.5 degrees but would require a "global transformation" of all sectors of the economy.
Sunset for coal and other fossil fuels? Not yet, says the Morrison government. Credit: Nic Walker
Prime Minister Scott Morrison led his government's defence of miners, saying the IPCC report did not "provide recommendations to Australia" and that his government's focus would be "to ensure that electricity prices are lower" for households and businesses, alike.
Resources companies, though, fell on the Australian Stock Exchange, led by South32, the mainly coal miner spun-off from BHP. Its price sank 5.4 per cent or more than triple the overall market's slide of 1.4 per cent.
Industry groups, such as the Queensland Resources Council, dismissed the prospect of an early demise for the country's coal sector, saying Australian coal boasted relatively low emissions.
"There is a role for high-quality Australian coal and it's compatible with meeting Paris emissions reductions targets," Ian Macfarlane, council chief executive and a former Coalition energy minister.
"Our economy depends on the coal industry, and we can have both a strong coal industry and reduce carbon emissions."
The NSW Minerals Council likewise said coal had "very positive" future in the state, with strong demand from traditional and emerging export markets, a spokesman said.
"There are positive signs that these good conditions will continue in coming decades," he said, citing a recent industry forecast that annual Asian demand for coal burnt in power plants would jump by half from about 740 million tonnes to 1.147 billion tonnes by 2030.

Carbon budgets
However, the IPCC report's authors said the world would face severe consequences if the great bulk of fossil fuels including coal, oil and gas, weren't left in the ground.
At 1.5 degrees of warming, compared with pre-industrial levels, as much as 90 per cent of the world's coral reefs will die, and virtually all would be lost if temperatures rose two degrees, or about twice the increase so far.
Mark Howden, head of the Australian National University's Climate Change Institute, said emitting the equivalent of about 420 billions of carbon dioxide would exhaust the remaining carbon budget to cap warming at 1.5 degrees. Current annual emissions are about 42 billion tonnes, implying about a decade of pollution before "the need to go vertical" to zero emissions to keep within the temperature limit.



Emissions will need to fall 45 per cent from 2010 levels - or 58 per cent from 2015 totals - by 2030, the IPCC said.
Melissa Price, the federal Environment Minister, said the government would consider the IPCC report, saying the government "is committed to the Paris Agreement and takes its international obligations seriously".
"We’re particularly concerned about the implications for coral reefs, with the report finding climate
change will impact reefs across the world, including Australia," she said.
The Paris accord was signed three years ago by almost 200 nations, who pledged to keep warming to 1.5-2 degrees. Australia's pledge is to cut 2005-level emissions 26-28 per cent by 2030, a target environmental groups such as the Climate Action Tracker describe as "insufficient".

Labor, Greens
Both Labor and the Greens attacked the Coalition government, signalling the likelihood that climate change will become a major issue at the next federal poll due by mid-2019.
"At 1.5 degrees, we will see the consequences of climate-related risks to our health, our livelihoods, our food security, water supply, human security, and economic growth," Penny Wong, Labor's acting spokeswoman for climate change, said.
Senator Wong said "the government’s own data shows they will fail to meet their already inadequate Paris targets with pollution rising all the way to 2030".
Labor has pledged to increase Australia's carbon reduction effort to 45 per cent from 2005 levels and roughly triple the current share of renewable energy to 50 per cent by 2030.

Adam Bandt, the Greens climate spokesman, said the IPCC report showed it was "time to hit the climate emergency button", and that neither major party was prepared to take the necessary steps.
"If we don’t quit coal, we are screwed," said Mr Bandt. "Business as usual under Liberal and Labor is a death sentence."

Shutting down
Market forces, at least in Australia, indicate an exit from coal in the electricity sector is likely for all major plants by 2050 - unless governments intervene to extend their lives.



Origin Energy, for instance, plans to shut the Eraring coal-fired power station in NSW - Australia's largest - by 2032.
"We believe that net-zero emissions for the electricity sector by 2050 or earlier is achievable," Origin chief executive Frank Calabria said in the company’s 2018 Sustainability report.
One industry hoping to benefit from any shift towards low emissions in the carbon capture and storage (CCS) industry, a sector singled out by the IPCC as necessary if global temperatures are to avoid "overshooting" the targets.
"It’s obviously very pleasing the panel is endorsing the necessity for CCS," Global Carbon Capture and Storage Institute spokesman Antonios Papaspiropoulos told Fairfax Media.
"This is a pivotal part of turning back the climate change siege," he said. "We’re starting to see a wider acceptance that more needs to be done to fight climate change, and CCS is part of this 'more'."

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