Monday, November 22, 2010

2009 carbon emissions fall smaller than expected

BBC News
November 21, 2010

Piling up coal Coal use in developing economies tends to make them less "carbon-efficient"

Carbon emissions fell in 2009 due to the recession - but not by as much as predicted, suggesting the fast upward trend will soon be resumed.

Those are the key findings from an analysis of 2009 emissions data issued in the journal Nature Geoscience a week before the UN climate summit opens.

Industrialised nations saw big falls in emissions - but major developing countries saw a continued rise.

The report suggests emissions will begin rising by 3% per year again.

"What we find is a drop in emissions from fossil fuels in 2009 of 1.3%, which is not dramatic," said lead researcher Pierre Friedlingstein from the UK's University of Exeter.

"Based on GDP projections last year, we were expecting much more.

"If you think about it, it's like four days' worth of emissions; it's peanuts," he told BBC News.

The headline figure masked big differences between trends in different groups of countries.

Broadly, developed nations saw emissions fall - Japan fell by 11.8%, the UK by 8.6%, and Germany by 7% - whereas they continued to rise in developing countries with significant industrial output.

China's emissions grew by 8%, and India's by 6.2% - connected to the fact that during the recession, it was the industrialised world that really felt the pinch.

Back on track

Before the recession, emissions had been rising by about 3% per year, with the growth having accelerated around the year 2000.

The new analysis suggests that after the recession, those rates of growth are likely to resume.

"Probably, we'll be back on the track of the previous decade, 2009 having been a small blip," said Dr Friedlingstein.

The figures come just a week before the start of the UN climate summit, held this year in Cancun, Mexico.

Little progress is expected, following what is widely regarded as the failure of last year's Copenhagen summit.

But the projections - produced by the Global Carbon Project, a network of researchers around the world - may focus delegates' minds anew on the enduring issue in tackling climate change: decoupling economic growth from carbon emissions.

Speaking last week at a meeting of Indian and British business leaders aiming to develop joint clean energy projects, UK climate minister Greg Barker conceded this was the missing ingredient.

Fundamentally, he said, the question was "whether a transition to a low-carbon economy is compatible with continued economic growth - and no-one knows the answer, because no country has made the transition yet".


Thursday, November 18, 2010

Republicans Slammed on Climate Change - by a Republican

Huffington Post
November 18, 2010

Rep. Bob Inglis (R-S.C.), an outgoing lawmaker with nothing left to lose after having his fate sealed through a primary challenge from the right earlier this year, expressed his frustrations with the GOP's trajectory toward climate change denial Wednesday in a harsh rebuke that blasted his party's hard-headed refusal to listen to scientific experts.

"Because 98 of the doctors say, 'Do this thing,' two say, 'Do the other.' So, it's on the record. And we're here with important decision to be made." Inglis said of his party's readiness to listen to minority dissenting voices on the issue. "There are people who make a lot of money on talk radio and talk TV saying a lot of things. They slept at a Holiday Inn Express last night, and they're experts on climate change. They substitute their judgment for people who have Ph.D.s and work tirelessly [on climate change]."

Then Inglis laid out the potential consequences.

"And I would also suggest to my Free Enterprise colleagues -- especially conservatives here -- whether you think it's all a bunch of hooey, what we've talked about in this committee, the Chinese don't. And they plan on eating our lunch in this next century. They plan on innovating around these problems, and selling to us, and the rest of the world, the technology that'll lead the 21st century," Inglis told his colleagues. "So we may just press the pause button here for several years, but China is pressing the fast-forward button. And as a result, if we wake up in several years and we say, 'geez, this didn't work very well for us.'"

Inglis's reflection on the GOP's tendency to reject the findings of climate scientists isn't just about the party's image, it's also indicative a trend that's likely to find its way into the highest levels of legislative leadership, as the top chairman picks for House committees on Energy and Commerce, as well as Science, all have expressed doubts about the validity of climate change.

And these beliefs appear only to be growing in the GOP's freshman ranks. A recent report by ThinkProgress showed that 50 percent of incoming Republican legislators are outspoken climate change deniers. This opinion was just as rampant in Senate GOP ranks.

Inglis has been an outspoken critic of his party since his torpedoing by the more-conservative Trey Gowdy in June. A month after his loss, Inglis attacked conservative leaders for "demagoguery" in their use of hyperbolic, incendiary and false rhetoric in some of their partisan criticisms. Later that summer, Inglis attributed his electoral failure to his refusal to call Obama a "socialist."


Schwarzenegger Pushes Local Governments on Climate Change

Huffington Post
November 18, 2010

DAVIS, Calif. — Unlocking economic prosperity in a low-carbon world was a key theme Monday at a climate-change summit headlined by Gov. Arnold Schwarzenegger, who is among regional government leaders seeking to join private investors with green technology projects.

The outgoing governor of California has been bringing together local government leaders from around the world for three years to reduce greenhouse gas emissions after saying the U.S. and other countries failed to take the lead.

"I know that together we can usher in a new era and build a cleaner and brighter, more prosperous future," Schwarzenegger told attendees at his third and final climate summit. "So, I say let's do it."

The two-day summit at the University of California, Davis, just west of Sacramento, drew more than 1,500 people from more than 80 countries.

Many of those who spoke during the opening session said state and provincial leaders want to tap private investment to generate jobs in the alternative-energy field while reducing emissions blamed for warming the planet.

Profiting from the emerging green economy remains a work in progress, especially with many countries still struggling to emerge from recession and a severe credit crisis that has hampered lending.

"It's time for us to recognize this is a significant economic challenge as well as an environmental challenge," said British Columbia Premier Gordon Campbell.

British Columbia has imposed a carbon tax that promises to lower the personal and corporate income taxes for residents and small businesses in the province. For example, money collected from taxing polluting companies means small businesses there will not pay any taxes on the first $500,000 of their income by 2012, Campbell said.

Michigan, which has been hit hard by the loss of manufacturing jobs, is aggressively pursuing green-tech companies. California is working with the federal government for what will be the largest solar and wind farms in the world.

These kinds of efforts can not only help the environment but bring jobs to places where governments act as partners with private companies, Michigan Gov. Jennifer Granholm said.

Granholm and three other Democratic governors – Jim Doyle of Wisconsin, Ted Kulongoski of Oregon and Chris Gregoire of Washington – are co-sponsors of the summit.

Tapping green investment is the underlying goal of a new organization Schwarzenegger and leaders from more than 20 countries are expected to announce at the summit on Tuesday, said Linda Adams, secretary of the California Environmental Protection Agency.

Named R20, the nonprofit organization incorporated in Geneva, Switzerland, is intended to match investors from the World Bank and private corporations with local governments in developing and industrialized countries to accelerate alternative-energy projects.

The idea that California, other states and leaders of provinces in such countries as Morocco and France are moving forward with their own nonprofit financing program gives hope to those in the environmental community who have been disappointed with the lack of an international treaty on climate change.

"Local governments and state leaders around the world are reacting to the tangible benefits of clean energy, economic development opportunities and the imminent threats they are facing, and realizing the problem doesn't have any borders," said Derek Walker, director of the California climate initiative at the Environmental Defense Fund.

One immediate action local governments can take would be to implement programs and policies to stem deforestation, actor and environmental advocate Harrison Ford said during the summit.

"Unlike many of the other climate solutions, tropical forest conservation is inexpensive and immediately available," said Ford, star of the "Indiana Jones" movies. "But if we don't seize the opportunity now, we will lose this precious forest and we will lose the battle against climate change."

Schwarzenegger on Tuesday is expected to sign agreements with two regions of Mexico and Brazil that could open California's proposed carbon market to protecting tropical forests there. California is developing a cap-and-trade market that would allow forest owners to sell carbon offsets to polluting companies that either are unable to reduce their own greenhouse gases or find it too costly to cut emissions.

Schwarzenegger's agreement with the states of Acre in Western Brazil and Chiapas in southeastern Mexico comes as a surprise because state regulators had recently proposed forest offsets be limited to projects within the United States when California begins selling and trading emissions in 2012. The California Air Resources Board must approve the agreement.

Last December, countries participating in the United Nations climate talks in Denmark failed to agree on an international treaty that would have required them to cut greenhouse gas emissions.

They will meet again in two weeks to try to reach a global finance agreement that would give poor countries money to cope with the effects of rising temperatures and become more energy-efficient. The talks leading to that meeting, however, already have divided developing and wealthier nations over the issue of intellectual property rights.

___


Coal Plants Canceled in Kentucky

Huffington Post
November 18, 2010

Thanks to a powerful and growing New Power grassroots movement, a broad alliance of Kentucky activists sent an electrifying message across the nation today: A just transition to a clean energy future, even in the heartland of coal country Kentucky, is possible.

Recognizing the spiraling costs of coal-fired plant construction and more practical energy efficiency and renewable energy options, the East Kentucky Power Cooperative has agreed to halt its once fervent plans to construct two coal-burning power plants in Clark County.

The announcement comes nearly one year after American Municipal Power abandoned its plans to build a coal-fired power plant along the Ohio River in Meigs County, and shifted the battle between coal-fired plants and New Power sources to Kentucky.

Led by EKPC members, the Sierra Club, Kentucky Environmental Foundation and Kentuckians For The Commonwealth, along with individual co-op members Wendell Berry, Father John Rausch and Dr. John A. Patterson, the announcement comes as an extraordinary shift in the national debate over coal-fired energy.

Doug Doerrfeld, a member of Grayson Rural Electric and past chairperson of Kentuckians For The Commonwealth, said the agreement marked a significant turning point for Kentucky. "This is very good news for all of Kentucky's distribution co-ops and their members. EKPC can now avoid the huge cost of building the plant and turn its attention to aggressively pursuing energy efficiency and renewable energy options. I believe those strategies hold the greatest promise for keeping rates as low as possible in the long run for Grayson Rural Electric members, especially our many low-income ratepayers."

"This agreement demonstrates what can happen when people work together," said Billy Edwards, a Clark Energy customer and Sierra Club member. "It creates an opportunity for our cooperative to become a leader in developing affordable, accessible clean energy and energy efficiency programs that can create jobs across the region while meeting the needs of their customers."

"I'm awfully glad to be party to a settlement that is amicable and made in good faith," said Wendell Berry, a farmer, renowned author, and Shelby Energy co-op member. "I do, on the basis of long experience, value the idea of a cooperative - which is to say an established cooperation between suppliers and users of energy or of any other vital supply. I'm also glad that the settlement agreement establishes a way forward through the establishment of a collaborative which will allow for informal conversations without the rigidity and anxiety of legal process."

The cooperative also committed $125,000 toward a collaborative effort in which plaintiff groups, EKPC and its member co-ops, and other parties will work together to evaluate and recommend new energy efficiency programs and renewable energy options.

During the campaign to stop the proposed Smith #1 coal-fired plant, the New Power movement hailed a breakthrough study completed last summer by The Och Center for Metropolitan Studies, which concluded:

As an alternative to building the proposed Smith #1 plant, an investment in a combination of energy efficiency, weatherization, hydropower and wind power initiatives in the East Kentucky Power Cooperative (EKPC) region would generate more than 8,750 new jobs for Kentucky residents, witha total impact of more than $1.7 billion on the region's economy over the next three years. This alternative approach would meet the energy needs of EKPC customers at a lower cost than the proposed coal plant.

Unlike projected economic activity that would result from construction of a new coal‐burning
power plant, investing in renewable energy, efficiency and weatherization would result in jobs
and benefits across the region rather than in a smaller geographic area around the site of the
proposed coal burning power plant.

Over a three year period of construction and implementation, energy efficiency and
weatherization initiatives would create nearly $1.2 billion in economic activity and more than
5,400 jobs. The development of small scale hydropower generation at 20 sites in the region
would create more than $500 million in economic activity and more than 3,300 jobs.

For more information, see KFTC's blog.


Monday, November 15, 2010

None flew over the cuckoo's nest: A world without birds

The Independent
November 15, 2010

Could we be facing a future without birds? Our reliance on pesticides has cut a swathe through their numbers. We must act now, argues Kate Ravilious

Monday, 15 November 2010

A wing and a prayer: starlings congregate over Gretna on the Scottish Borders

PA

A wing and a prayer: starlings congregate over Gretna on the Scottish Borders

Scanning the sky with his binoculars, he searches carefully for any sign of movement: the steady beat of a blackbird's wings, the fluttering of a flock of starlings. It has been a week now since he saw the starlings: just four of them flitting from tree to tree, feasting on the autumn berries.

Birds are a real rarity these days. In his boyhood, he recalls, he would watch the acrobatics of entire flocks as they ducked and dived after insects. But now the skies are silent, barring the hum of the odd airplane. Turning back to his fruit and vegetable patch, he continues the laborious task of pollinating the raspberry plants by hand, gently brushing pollen onto the slender stigmas inside the flowers. In the past, bees, wasps, butterflies and flies would have done this job for him; nowadays such insects are likewise a rarity. Farmers instead resort to robot bees to pollinate their crops: tiny motors, encased in fuzzy fabric, which hover from flower to flower.

Will this bleak outlook be a reality for future generations? It is nearly 50 years since Rachel Carson wrote Silent Spring, the book that warned of environmental damage the pesticide DDT was causing. Today, DDT use is banned except in exceptional circumstances, yet we still don't seem to have taken on board Carson's fundamental message.

According to Henk Tennekes, a researcher at the Experimental Toxicology Services in Zutphen, the Netherlands, the threat of DDT has been superseded by a relatively new class of insecticide, known as the neonicotinoids. In his book The Systemic Insecticides: A Disaster in the Making, published this month, Tennekes draws all the evidence together, to make the case that neonicotinoids are causing a catastrophe in the insect world, which is having a knock-on effect for many of our birds.

Already, in many areas, the skies are much quieter than they used to be. All over Europe, many species of bird have suffered a population crash. Spotting a house sparrow, common swift or a flock of starlings used to be unremarkable, but today they are a more of an unusual sight. Since 1977, Britain's house-sparrow population has shrunk by 68 per cent.

The common swift has suffered a 41 per cent fall in numbers since 1994, and the starling 26 per cent. The story is similar for woodland birds (such as the spotted flycatcher, willow tit and wood warbler), and farmland birds (including the northern lapwing, snipe, curlew, redshank and song thrush).

Ornithologists have been trying desperately to work out what is behind these rapid declines. Urban development, hermetically sealed houses and barns, designer gardens and changing farming practices have all been blamed, but exactly why these birds have fallen from the skies is still largely unexplained.

However, Tennekes thinks there may be a simple reason. "The evidence shows that the bird species suffering massive decline since the 1990s rely on insects for their diet," he says. He believes that the insect world is no longer thriving, and that birds that feed on insects are short on food.

So what has happened to all the insects? In the Nineties, a new class of insecticide – the neonicotinoids – was introduced. Beekeepers were the first people to notice a problem, as their bees began to desert their hives and die, a phenomenon known as Colony Collapse Disorder (CCD).

The first cases were in France in 1994, but the epidemic quickly fanned out across Europe, and by 2006 CCD reached the US too. Between 2006 and 2009 one third of American beekeepers reported cases of colony collapse. Aside from the loss of revenue in honey sales, this is worrying news because honey bees are one of the world's most important pollinators, and 35 per cent of agricultural crops rely on pollinators.

As a service, pollination is worth an estimated £440m a year to the UK economy and a staggering $15bn (£9.3bn) to US farmers. And it isn't just the Western world that is affected: in China the lack of bees has become so serious that farmers in some regions are already resorting to pollinating their crops by hand.

Controversy has swirled around the issue, with everything from mobile phones to GM crops being held to blame. The key contenders include parasites, viral and fungal infections, and insecticides.

Last month the problem appeared to have been cracked, when a group of US scientists published a paper in the online journal PLoS One which indicated that CCD was caused by the interaction between a virus, the invertebrate iridescent virus, and a fungus known as Nosema apis (http://ind.pn/9NKzPD).

But since then it has emerged that the study's lead author, Jerry Bromenshenk, has in recent years received a research grant from Bayer Crop Science (a leading manufacturer of neonicotinoid insecticides) to study bee pollination. Bromenshenk has, however, said that no Bayer funds were used in the earlier study. Jeroen van der Sluijs, of the Netherlands' Utrecht University, doesn't doubt Bromenshenk's findings, but says they don't address the key issue: "Previous research has shown that exposure to neonicotinoids makes colonies more prone to the Nosema fungus and virus infections."

If that is so, then neonicotinoid insecticides could be the root cause of the problem. But why are they so much worse than other insecticides?

"Neonicotinoids are revolutionary because they are put inside seeds and permeate the whole plant because they are water-soluble (which is why they are called systemic insecticides). Any insect that feeds on the crop dies," explains Tennekes.

Even small doses can kill. Recent research, carried out on honey bees in the lab, showed that these insecticides build up in the central nervous system of the insect, so that very small doses over a long time period can have a fatal effect. The reason that neonicotinoids can have such a powerful long-term effect is down to the way they work – binding irreversibly to receptors in the central nervous systems of insects.

"An insect has a limited amount of such receptors. The damage is cumulative: with every exposure, more receptors are blocked, until the damage is so big that the insect cannot function any more and dies," explains van der Sluijs.

And unfortunately the robust nature of neonicotinoids means that they can travel far beyond the crops they were used to treat. "Neonicotinoids are water-soluble and mobile in soil. They can be washed out of soils and into surface and groundwater – as we've seen in the Netherlands since 2004. As a result, neonicotinoids are probably readily taken up by wild plants as well, and in this way spread throughout nature, causing irreversible damage to non-target insects," says Tennekes.

Many scientists now agree that there is strong evidence to suggest that neonicotinoid insecticides are damaging to bees. But what about the other insects? Are they being poisoned in the same way? "It is very difficult to prove, but I believe that most insects will have declined since the introduction of neonicotinoids in the 1990s. The problem is that we are not really interested in insects, apart from bees (because we need them) and butterflies (because they are pretty). However, the few insect species that we monitor closely indicate massive decline," says Tennekes.

A new PhD thesis goes some way to backing up Tennekes's claim. This year, Tessa van Dijk at Utrecht University demonstrated a strong link between increased pollution levels and a reduced presence of insects, and especially flying insects, in regions of the Netherlands where residues of neonicotinoids are high.

Others agree that Tennekes may be onto something. "It is a plausible theory that birds that feed on insects, or that feed their chicks on insects only, will suffer from insect decline. But much more data are needed to understand how big the role of neonicotinoids is," says van der Sluijs.

Nigel Raine, a bee expert from Royal Holloway, University of London, concurs. "There is not yet enough evidence to show that neonicotinoid insecticides are environmentally safe in the longer term. But if it can be proved that they are causing a decline in insects, it is reasonable to assume a link to a decline in the bird species that eat insects."

Some argue, however, that the story is unlikely to be so simple. "Bird decline started before neonicotinoids hit the scene. Like so many things, the decline of bird populations is almost certainly multifactorial, involving pesticides, habitat loss and many other variables," says Gard Otis, an entomologist at the University of Guelph in Ontario, Canada.

Nonetheless, some countries have already begun to take action. In 2008 the German, Italian and Slovenian authorities imposed a ban on the use of two types of neonicotinoid insecticides on maize. Meanwhile France has had a ban in place since 1999, on a neonicotinoid insecticide used to dress sunflower seeds.

But for Tennekes the only solution is a global ban. "Neonicotinoids act like chemical carcinogens, for which there are no safe levels of exposure. The message is that we must act quickly and ban these compounds, to avoid a catastrophe," he says.

www.disasterinthemaking.com


Tuesday, November 9, 2010

A Novel Tactic in Climate Fight Gains Some Traction

New York Times
November 9, 2010

WASHINGTON — With energy legislation shelved in the United States and little hope for a global climate change agreement this year, some policy experts are proposing a novel approach to curbing global warming: including greenhouse gases under an existing and highly successful international treaty ratified more than 20 years ago.

Gregory Bull/AP Photo

Mario Molina, a Mexican scientist, speaking to students in September. He wants to expand the scope of the Montreal Protocol.

The treaty, the Montreal Protocol, was adopted in 1987 for a completely different purpose, to eliminate aerosols and other chemicals that were blowing a hole in the Earth's protective ozone layer.

But as the signers of the protocol convened the 22nd annual meeting in Bangkok on Monday, negotiators are considering a proposed expansion in the ozone treaty to phase out the production and use of the industrial chemicals known as hydrofluorocarbons or HFCs The chemicals have thousands of times the global warming potential of carbon dioxide, the most prevalent greenhouse gas.

HFCs are used as refrigerants in air-conditioners and cooling systems. They are manufactured mostly in China and India, but appliances containing the substance are in use in every corner of the world. HFCs replaced even more dangerous ozone-depleting chemicals known as HCFCs, themselves a substitute for the chlorofluorocarbons that were the first big target of the Montreal process.

"Eliminating HFCs under the Montreal Protocol is the single biggest chunk of climate protection we can get in the next few years," said Durwood Zaelke, president of the Institute for Governance and Sustainable Development, a nongovernment organization based in Washington. He noted that the ozone protection effort had begun under former President Ronald Reagan and continues to enjoy bipartisan support.

The United States has thrown its support behind the proposal and negotiators said there was a strong current of support for the move at the meeting on Monday. All the signatories to the Montreal Protocol would have to agree to the expansion, but no further approval from Congress would be needed. So far, there has been no Congressional or industry opposition to the idea.

But the plan is not expected to be adopted this year. Large developing countries, including China, India and Brazil, object that the timetable is too rapid and that payments for eliminating the refrigerant are not high enough.

One advantage to using the Montreal protocol as a vehicle, supporters say, is that negotiations over the treaty have been utterly unlike the contentious United Nations climate talks that foundered in Copenhagen last year. Negotiators say that without legislative action on curbing greenhouse gases by the United States, little progress will be made when countries gather in CancĂșn, Mexico, late this month for another round of climate talks.

In a post-election news conference, President Obama noted that it was doubtful that Congress would do anything to address global warming "this year or next year or the year after."

Unlike the Kyoto Protocol, the Montreal treaty has been signed by all nations. They conduct their business with little drama and with broad scientific and technical input from governments and industry. The financing mechanisms, while occasionally contentious, are generally quickly resolved and seen as equitable.

The ozone treaty was unanimously ratified in 1988 by the United States Senate, which a decade later unanimously voted against adopting the Kyoto Protocol to address climate change. Montreal's pollution reduction targets are mandatory, universally accepted and readily measurable. None of that is true of the climate process.

The Montreal Protocol has phased out nearly 97 percent of 100 ozone-depleting chemicals, some of which are also potent climate-altering gases. The net effect has been the elimination of the equivalent of more than 200 billion metric tons of global-warming gases, five years' worth of total global emissions, far more than has been accomplished by the Kyoto process.

It has been, according to the former United Nations secretary general Kofi Annan, "perhaps the most successful international agreement to date."

The proposal to eliminate HFCs was advanced several years ago by the tiny island nation of Micronesia, one of the places on Earth most vulnerable to sea-level rise and other global warming effects.

The United States quickly signed on. Along with Mexico and Canada, the Obama administration has proposed a rapid series of steps to reduce HFC production, with rich countries meeting a faster timetable than developing nations and helping to pay the poorer countries to find substitutes. But the Environmental Protection Agency estimates that adopting the HFC proposal could eliminate the equivalent of 88 billion metric tons of carbon dioxide by 2050, and slow global warming by a decade.

Daniel A. Reifsnyder, the deputy assistant secretary of state for environment and the nation's chief Montreal Protocol negotiator, said that it might take several years to persuade the ozone treaty countries to back the plan.

In addition to pace and cost issues, some countries say that HFCs have little impact on the ozone layer and thus should be handled under the United Nations climate change talks. Mr. Reifsnyder dismissed that as a legalistic argument and said that the ozone treaty could and should be used to achieve broader environmental objectives.

"What we've found is that the Montreal Protocol has been a very effective instrument for addressing global environmental problems," Mr. Reifsnyder said in an interview. "It was created to deal with the ozone layer, but it also has tremendous ability to solve the climate problem if people are willing to use it that way."

Mario Molina, the Mexican scientist who shared the Nobel Prize in chemistry for his groundbreaking work in identifying the role of chlorofluorocarbon gases in the breach of the stratospheric ozone layer, said that it might take two or three years for other countries to see the virtues of the HFC reduction.

"My hope is that everybody will agree with this proposal from the United States and Mexico and a few other countries because the Montreal Protocol has been so successful at controlling these industrial chemicals," he said in an interview from his institute in Mexico City.

Dr. Molina said that extending the protocol to include HFCs could reduce the threat of climate change by several times what the Kyoto Protocol proposes. He noted that the climate treaty had fallen far short of its goals, and that there was no agreement on what should replace it when its major provisions expired in 2012.

"We understand it's a stretch to use an international agreement designed for another purpose," he said. "But dealing with these chemicals and using this treaty to protect the planet makes a lot of sense."


Monday, November 8, 2010

Pioneering Cap-and-Trade Program to Fade into the Sunset

Climate Biz
November 8, 2010

Pioneering Cap-and-Trade Program to Fade into the Sunset

OAKLAND, CA — A tough political atmosphere in which Congress backed away from comprehensive clean energy and climate change legislation may have been the nail in the coffin for one of the voluntary carbon market's early pioneers.

The Chicago Climate Exchange (CCX) will discontinue its voluntary greenhouse gas cap-and-trade program next month, according to Intercontinental Exchange Inc., its parent company. In its place, CCX will launch a new registry program for 2011 and 2012 carbon offsets.

The development marks a stark contrast from two years ago when many considered climate change legislation in the U.S. to be inevitable.

"Fundamentally with any program that relies on voluntary compliance for something not yet mandated into law, it makes it more difficult ultimately to have as vibrant a market as you'd want," said Bruce Braine, vice president of strategic policy at utility American Electric Power (AEP). "That was the ultimate weakness. For a period of time, up until the last year, a lot of it was thriving on anticipation there would be legislation."

AEP was one of 13 CCX founding members when the program launched in 2003, and Braine sat on the board of directors for much of its existence. The most recent election, he said, where several candidates ran on platforms against cap-and-trade illustrated that "the waters have been poisoned for cap-and-trade legislation, at least for a couple of years."

"There was a period during the 2008 primaries and into 2009 where it certainly looked pretty positive and looked like we were going to see legislation passing fairly soon." Braine said. "As a result, activity on CCX increased, there was more trading, prices went up. In the last six to 12 months, activity started to drop off and a lot of that was related to an increasing sense that we might not see a cap-and-trade system anytime soon."

In interviews conducted since the CCX announcement, Braine and others within the business and research communities discussed the strengths and weaknesses of a program that demonstrated for many how reducing emissions could complement, not hinder, business performance.

The news also comes on the heels of the demise of another voluntary program, the EPA's Climate Leaders, giving fewer options to businesses that want to voluntarily and publicly report and reduce their greenhouse gas inventories.

"EPA has made it abundantly clear to everybody that they're just heading down a regulatory path now, and voluntary Climate Leader-type programs are no longer really relevant in their minds so there really isn't a lot you can do," Braine said.

The CCX cap-and-trade program had about 450 members. The program was both a registry for organizations to report their greenhouse gas inventories, and an exchange platform through which they could trade emissions reduction permits. Members committed to reduce emissions during a specific time phrase; those that reduced emissions to levels below the target could trade the extra emission credits, while those that fell short of their goals had to buy permits to make up the difference.

The program offered a teachable moment to many who grappled with finding ways to reduce emissions, said Terry Tamminen, operating advisor to Pegasus Capital Partners and former advisor to Calif. Governor Arnold Schwarzenegger.

"It helped people understand the price discovery, the concept discovery, and allowed people to try it on for size to see if it would work and to see whether it was analogous to SO2," Tamminen said, referring to the successful sulfur dioxide emissions trading program put in place to address acid rain. "It was a great education exercise. It got people to understand this was not going to be the end of the world."

CCX was an early mover that helped propel the carbon market forward, said Michael Gillenwater, executive director and dean of the Greenhouse Gas Management Institute. "They brought an enormous amount of expertise in terms of proper exchanges."

But CCX also faced design and quality issues, Gillenwater said, such as the fact that CCX used corporate-wide emissions rather than facility-based. As others have mentioned, the voluntary nature of the program weakened the business case for participation because of the absence of regulation.

"It doesn't take too many years of economics to figure out that only companies that want to sell (permits) will tend to join, and companies that need to buy (permits) avoid joining," Gillenwater said.

Other programs, including Climate Leaders and The Climate Registry, fulfilled some of the same functions.

"Both of those programs --  not that they're perfect, and Climate Leaders is now shut down -- invested a lot in the technical rigor and quality of what they were doing," Gillenwater said
 
There was a perception within the expert community, he said, that CCX was not making its own methodologies and protocols as stringent.
 
"That was especially the case with offsets," Gillenwater said. "The general perception was that the offset protocols developed by CCX were of the lowest quality out there in the greenhouse gas emissions offset marketplace. That impacts people's perception of the program."

The combination of an exchange for trading with an emissions registry, Gillenwater said, was not widely embraced.

"The other registries that followed, none of those had exchanges," Gillenwater said. "If you look at emulation as an indication of what makes sense, others didn't think that was what the market was calling for."

Although it had 450 members, CCX could have also used more staff to reach out to a broader network, Tamminen said. "Greater participation could have had more impact on the national debate."

However, as Tamminen suggested, the CCX succeeded in introducing people to the concept of both disclosing carbon footprints and using cap-and-trade as a means to reduce them.

"I think CCX was a significant and, at the time, innovative program that did a lot of good in terms of getting people to pay attention to and thinking about greenhouse gas emissions reporting, and giving credibility to the idea of emissions trading because big companies were willing to engage with it," Gillenwater said.

For AEP, participation in CCX allowed the utility to focus on its own sustainability commitments and view processes through a carbon lens. Employees from a range of departments "began to realize that this was a part of our overall objective," Braine said.

"They found things. They saw things that we could do that were in many cases win-wins," he said. "We figured out ways to both save money and reduce emissions. We probably would not have found those things had it been for looking and focusing on the carbon issue."

Members include businesses, universities and manufacturers. In its first and only two phases, CCX members reduced nearly 700 million metric tons of greenhouse gas emissions, but Intercontinental Exchange Inc. Chief Executive Jeff Sprecher recently told the Financial Times that members wanted to pull out of they weren't going to get credit for their efforts under a compliance regime.

"People wanted to get credit for early action," Braine said. "When that goes away, I guess the value of the system just dries up."



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Read more: http://www.greenbiz.com/news/2010/11/08/cap-and-trade-pioneer-fade-sunset#ixzz14jaVOdN4

In climate politics, Texas aims to be the anti-California

Los Angeles Times
November 7, 2010

The state has filed seven lawsuits against the EPA, and its members of Congress want to check the EPA's efforts to curb greenhouse gases. 'At times they're their own country,' one observer says.

Gov. Rick Perry

Under Gov. Rick Perry, Texas has filed seven lawsuits in the last nine months over the EPA's efforts to curb greenhouse gases. (LM Otero, Associated Press / November 1, 2010)

For decades, California has set the pace for the country on air pollution and climate change, adopting ever-higher standards for controlling auto emissions and, more recently, greenhouse gases that scientists say have led to global warming.

Now, California's dominance is being challenged — under attack from another mega-state that wants to displace California by calling for a freeze of the status quo instead of a move toward tighter controls.

In effect, Texas is staking out a role as the anti-California.

With Republicans in control of the House of Representatives, powerful Texans such as Rep. Joe L. Barton of the House Energy and Commerce Committee have vowed to check the Environmental Protection Agency's efforts to use its existing authority to curtail greenhouse gases.

An even more ambitious challenge is coming directly from the Texas state government and leading Texas politicians. State Atty. Gen. Greg Abbott, with the support of Republican Gov. Rick Perry, has filed seven lawsuits against the EPA in the last nine months.

In some ways, Texas' attack was bound to be bigger and bolder than it might have been from other states. After all, Texans proudly trace their lineage back to the defiant stand of Texas patriots at the Alamo and the days when Texas was an independent republic under the Lone Star flag.

"At times, they're their own country," said Bill Becker, executive director of the National Assn. of Clean Air Agencies, a group of state environmental regulators. "They feel strongly, politically, that this is an issue that shouldn't pertain to them and they would like to proceed on their own terms."

And Texas corporations clearly have California in their gun sights, as reflected in their determined though ultimately unsuccessful attempt to roll back California state law in the recent election.

In a recent letter to the EPA, state officials likened the agency's efforts to regulate greenhouse gases to a socialist "plan for centralized control of industrial development."

Rebelling against federal regulation, especially on the environment, was a touchstone of Texas politics long before the "tea party" emerged and made it a national rallying cry. For years, the state's congressional champions had compelled the EPA, starting in the 1990s, to look the other way as Texas crafted regulation that went easy on industry, said Tom Smith, Texas state director for Public Citizen, a watchdog group.

"The big change is that now we have an administration whose EPA has some courage," Smith said.

Abbott, the Texas attorney general, contends his state had a "cooperative relationship" with the EPA that has been all but ruined by the Obama administration, which, he said, "is putting a target on Texas."

Perry, who has successfully run for three terms in part by criticizing Washington, took aim at outside regulatory intrusion during his victory speech Tuesday night.

"People are tired of the government cooking up new ways to micromanage their lives," he said. "They're tired of the government killing jobs with their do-gooder policies that have nothing to do with science or economics."

Texas officials and their allies assert that regulations they consider hasty and onerous would hurt the state's vast economy, which relies on oil refineries, coal-burning power plants and manufacturing.

Those facilities have made Texas the nation's largest emitter of greenhouse gases from power plants, industrial facilities and other so-called stationary sites, according to an Environmental Defense Fund analysis of EPA data. If it were a separate country, Texas would be the seventh-biggest emitter of stationary-site greenhouse gases in the world, according to the environmental group.

Still, Texas is also among the world's largest producers of wind energy, because of a measure adopted when George W. Bush was governor.

On Jan. 2, crucial EPA regulations will kick in limiting greenhouse gas emissions from large industrial facilities. Texas is the only state refusing to enforce the new rules.

"EPA is cramming this down the throats of citizens and the states," said Howard Feldman, director of regulatory and scientific affairs at the American Petroleum Institute, another plaintiff against the EPA. "We see Texas as standing up for normal processes under the Clean Air Act."

But Texas' activism also seems to reflect close relations between leading politicians and corporations. E-mails made available to the Tribune Washington Bureau indicate that the initial idea for suing the EPA on greenhouse gas regulation came from a new, little-known Texas nonprofit called the Coalition for Responsible Regulation.

"Just a quick interruption to see whether y'all know if TCEQ/Texas is planning on petitioning on DC Circuit Court review of the endangerment finding?" wrote Eric Groten, a lawyer at Vinson & Elkins, referring to the Texas Commission on Environmental Quality in a Dec. 30, 2009, e-mail to a commission official.

Just weeks earlier, the EPA had issued the so-called endangerment finding, which said carbon dioxide emissions were a threat to public welfare and therefore subject to regulation.

"I represent a national organization, Coalition for Responsible Regulation Inc, and its members, which already has filed (in fact, we believe we were the first to file), and I'd like to begin the coordination process," Groten continued in the e-mail. "Plus of course we would like to see state petitioners involved, and Texas is an obvious candidate."

The first Texas suit challenging the endangerment finding was filed about five weeks later.

The Coalition for Responsible Regulation was formed to challenge the EPA, its incorporation papers say. Its Houston address and officers are the same as those of Quintana Minerals Resources Corp. Quintana's leaders, including chief executive Corbin Robertson Jr., have given tens of thousands of dollars to Abbott's and Perry's war chests. Robertson has also donated to Barton and many others in Congress.

By some estimates, Quintana is the largest private owner of coal reserves in the United States; only the federal government has bigger reserves.

Robertson, who began as an heir to a Texas oil fortune before diversifying into coal, is a founder of two new groups that work to refute climate science.

Texas environmental regulators and Groten, attorney for the coalition, said that Texas decided on its own to file suit. "It is safe to say that Texas needed no push from CRR or anyone else to understand and protect its own interests," Groten wrote in an e-mail.

Abbott said that Robertson's donations to his election comprised a tiny portion of his overall contributions. He said his office had sued at the behest of the Texas Commission on Environmental Quality and no one else.

"All of our decisions are based on the law," he said in a phone interview. "Any suggestion to the contrary is just make-believe."

The EPA says it will continue its efforts to scale back greenhouse gases, regardless of Texas' resistance. In an e-mailed statement, the agency said: "The state government in Texas seems to have different priorities right now, but we have not yet given up on our efforts to work with them."

Tea Party Goes After Recycling

Huffington Post
November 8, 2010
Trashcare

WASHINGTON -- First, conservative activists went after "ObamaCare." Now they're going after... "TrashCare."

Tea Party organizations are turning their focus to local issues lately, with a group in Fountain Hills, Ariz. rallying against what it views as a pernicious change in the way that trash is collected in the community.

According to The Arizona Republic, the controversy began when the Fountain Hills Town Council proposed hiring a single trash hauler and starting a curbside recycling program. On Thursday, a divided council approved the changes -- currently there's no recycling program and residents can choose from five haulers -- but not before the local Tea Party activists loudly objected to what they viewed as, essentially, a step toward socialism.

Fountain Hills Mayor Jay Schlum said he wasn't that surprised by the strong opposition and attributed it to the fact that debate happened shortly before the election and the vote just two days after.

"Of course our vote was two days after the national election, so there was quite a bit of angst already nationally," Schlum told The Huffington Post. "So I wasn't completely surprised. I think some of the tone was a little louder because of the fact that our discussion was on both sides of the national election, but I wouldn't say I was surprised by it."

In a bulletin entitled "Trash Talk," the Fountain Hills Tea Party wrote on its website: "On Thursday, November 4 the Fountain Hills Town Council decided, by a 4-3 vote, to take away your ability to choose your own trash hauler. Councilmembers Brown, Dickey, and Leger, along with Mayor Schlum, voted for this action. Councilmembers Contino, Elkie, and Hansen voted to preserve your freedom. Once more, government is trying to restrict free market economics. If you don't like it, stay tuned." The Fountain Hills Tea Party did not respond to an inquiry from The Huffington Post.

Arizona's Campaign for Liberty (C4L), an offshoot of a national organization founded by Rep. Ron Paul (R-Tex.), also put up an action alert about the issue on its website, accompanied by a menacing-looking man smoking a cigar in front of a Fountain Hills backdrop:

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In its open letter to Fountain Hills, Arizona C4L wrote that the controversy is nothing less than an assault on capitalism:

Opponents of the free-market would have a hard time arguing with the fact that only capitalism could create a situation where companies fight for the honor to haul away and dispose of your least wanted stuff: your family's garbage and waste.

With multiple companies fighting for the compensation associated with this unpleasant task, one would naturally assume that - as with any competitive industry - standards of service remain high and prices stay low.

Unfortunately for the taxpayers of Fountain Hills, that system may soon be dead.

C4L further argued that the change is being pushed by "[l]arge multinational corporations" that are "unscrupulously restricting smaller companies from participating in the [bid] process." "When the government creates the winners, everyone else loses," the group added.

According to The Arizona Republic, some opponents had taken to calling the controversy TrashCare, as a comparison to the heated opposition to health care reform. Additionally, a flier was circulated with an "ominous icon" and the phrase, "The Hills Will Have Eyes." It claimed the "Fountain Hills Green Police" were checking residents' garbage and recyclables.

The Huffington Post spoke with Fountain Hills Town Manager Rick Davis, who confirmed seeing the flier and said the effort against the trash collection change appeared to be very "organized" and "orchestrated." He said that although there were some loud voices speaking out, he received a considerable amount of backing for the proposal -- including from people who were self-proclaimed Tea Party supporters.

"What Tea Party people believe in is lower cost for municipal services, governmental services, and this certainly fit the bill," he noted.

There are actually two different Tea Party groups in Fountain Hills, who don't usually work together. The Tea Party Patriots in the town do not appear to have anything on their site about the trash collection issue.

Davis also disputed the claims of the "Hills" flier, saying that all companies -- including local ones -- were allowed to bid to be the single hauler. The company that received the contract, Allied Waste, submitted a bid that was significantly lower than the others. Schlum said that the process to change the trash collection issue began in 2005 and involved significant public input.

"The main issue -- we have five haulers on our street, so if you're on a residential street, there's a good chance you're going to have five different trash companies, five different trash bins on your street throughout the week, with pick-ups two-three times per week by each individual hauler," said Schlum, adding that the town was looking for a way to ensure that trash collection was less noisy and resulted in less wear and tear on the streets (which costs taxpayers more money to repair).

Fountain Hills isn't the first community to deal with Tea Party protests to trash collection. Over the summer, a local FreedomWorks chapter Gwinnett County, Georgia protested mandatory trash collection.