I gotta say, it is nice to not be covering the Syrian civil war in this post. Events in Syria have dominated the news lately, but it seems that at least for the immediate future diplomatic exercises have stalled the prospect of outside military intervention.
I would like to take this opportunity to highlight an interesting trend I have noticed lately, involving different countries efforts (or lack thereof) to curb greenhouse gas (GHG) emissions. The trend is interesting because it involves major players from both extremes (both high emitting nations and sustainability champions) moving forward with policies that would seem to contradict their historical stances on climate change. In recent news, the U.S. and China are moving to curb GHG emissions , while Australia and Canada are moving towards less sustainable energy portfolios.
Australia and Canada have, in recent history, been global champions of sustainable development. Both countries were original ratifying members of the Kyoto Protocol, and have signed the protocol into law (although it appears Canada will not make it’s emissions targets). Australia became one of the first countries to sign a carbon tax into law, and while Canada does not have a federal carbon tax, several Providences have their own regulations in place. Canada and Australia, with their natural beauty, seemed like global poster-children for sustainable development. However, recent developments show these two countries shifting in the other direction.
Economic downturns have pitted environmentalists vs. industry in a zero-sum and short-sighted game, in which advocacy for sustainable development could be political suicide. Of course, in the long run, we need a more sustainable global energy portfolio; but these are problems for future generations who do not have the unemployment problems of today’s world, opponents of carbon taxes argue (I am not considering the climate change skeptic as a legitimate opposition anymore).
Canada has seen rising GHG emissions in recent years, with no future decline in sight–if anything, increased production of oil sands forecasts emissions trending upwards in Canada. Politics have turned against environmentalists in Canada for reasons discussed above; anybody who thinks about environmental sustainability implicitly does not care about jobs / the economy / problems facing Canadians today (sound familiar? this is a common argument for putting off action on reducing emissions around the world).
Australia recently had elections, which were won by conservatives based partially on a promise to abolish the unpopular carbon tax:
The Australian mining industry welcomed Saturday’s election of Prime Minister Tony Abbott and his coalition’s pledge to abolish the carbon tax on fugitive greenhouse gas emissions from coal mines and the Minerals Resource Rent Tax on coal and iron ore mining profits.
The coalition of Liberal and National parties campaigned on a platform to repeal the taxes within 100 days of taking the reins of government.
“On the first sitting day of Parliament under a coalition government, I will introduce legislation to repeal the Carbon Tax,” Abbott said on the Liberal party’s website that included policy documentation stating the party would also rescind the MRRT.
For some Australians, the free-rider issue seems to make being environmentally conscious not worth fronting the bill–literally:
The carbon tax is one reason Sydney resident Geoff Hamment, who normally votes for Labor, is supporting the conservatives this time around. Hamment said he’s seen his household electricity bills go “through the roof” since the tax was introduced.
“I don’t like it,” he said. “I think us paying so much is just pointless when you have countries like China churning it out.”
The tax is extremely unpopular, despite the fact that most Australians, but not the wealthy, get government compensation for higher electricity prices.
For all the well-founded China bashing on the environmental front–China has overtaken the U.S. as the global leader in terms of absolute GHG emissions (although the U.S., per capita, still emits more than China; this is arguably a better measure of a countries energy efficiency)–the Chinese government appears to be trending towards more sustainable environmental policies:
BEIJING — The Chinese government announced an ambitious plan on Thursday to curb air pollution across the nation, including setting some limits on burning coal and taking high-polluting vehicles off the roads to ensure a drop in the concentration of particulate matter in cities.
The plan, released by the State Council, China’s cabinet, filled in a broad outline that the government had issued this year. It represents the most concrete response yet by the Communist Party and the government to growing criticism over allowing the country’s air, soil and water to degrade to abysmal levels because of corruption and unchecked economic growth.
The criticism has been especially pronounced in some of China’s largest cities, where anxious residents grapple with choking smog that can persist for days and even weeks. In January, the concentration of fine particulate matter in Beijing reached 40 times the exposure limit recommended by the World Health Organization.
For years China has had an array of strict environmental standards on paper, and its leaders talk constantly about the need to improve the environment. But enforcement has been lax, and the environment has continued to deteriorate at an alarming rate.
“The plan successfully identifies the root cause of air pollution in China: China’s industrial structure,” said Ma Jun, a prominent environmental advocate. “Industrialization determines the structure of energy consumption. If China does not upgrade its coal-dependent industries, coal consumption can never be curbed.” he said. “The key to preventing air pollution is to curb coal burning — China burns half of all the coal consumed in the world.”
In the United States, the world’s number two GHG emitter, the issue of emissions has been divided largely down partisan lines. Liberals, led by President Obama, believe in taxing carbon and subsidizing renewable energies as part of an “all of the above” energy portfolio to meet future demand and cut emissions. Conservatives tend to argue against the need to curb GHG emissions, largely for the same reasons mentioned above with respect to Canada and Australia. However, it seems Obama intends to bypass partisan gridlock by passing executive orders, carried out through the EPA, to curb emissions from fossil fuel power plants:
The Environmental Protection Agency is due to unveil next week the first batch of regulations under President Barack Obama’s new climate action plan – a carbon emissions-rate standard for new fossil fuel power plants.
If standards are as strict as the industry expects, it could be the death knell for new coal plant construction. The recent bankruptcy of Longview, a highly efficient West Virginia coal plant, is an example of the pressures already facing the industry.
The EPA is due to issue an emissions-rate standard for new fossil fuel power plants by September 20. Proposed standards on existing plants will follow in 2014.
Obama asked the EPA to re-propose a rule it introduced last year using a section of the federal Clean Air Act that required all new power plants, including those that use coal, to meet a standard of 1,000 pounds of carbon dioxide per megawatt hour – the rate of an average gas-fired plant.
Sources that have met with the administration in recent weeks said the agency has likely revised its earlier proposal to provide separate standards for natural gas and coal plants, and also raised the emissions limits for coal plants.
The new rules, like those initially proposed in 2012, are also likely to include a requirement for new coal plants to use a form of carbon capture and storage (CCS), a technology that captures carbon emissions and stores the carbon underground, that is years away from being available on a commercial scale.
Eugene Trisko, a lawyer who represents clients such as the American Coalition for Clean Coal Electricity in energy and environmental matters, said CCS cannot be deployed if coal plants, such as Longview, are unable to run.
“If you really wanted to advance CCS, you really need to build new coal plants because those are the plants that one day or another would be the laboratories for CCS,” he said.
“Nobody is going to put CCS on plants that are 50 years old,” he added.
But some environmentalists argue that new EPA rules will only add another layer of financial risk around coal plant investment even in coal-reliant states like West Virginia.
Instead of investing in new coal plants, which will only become more costly, states should diversify their energy supply, said Cathy Kunkel, an energy research consultant and fellow at the Institute for Energy Economics and Financial Analysis.
The concept behind taxing carbon emissions and subsidizing renewable energies is pretty straightforward. Emissions represent a negative externality, pollution, that is a detriment to society as a whole. A carbon tax or cap-and-trade system creates a cost for this negative externality, discouraging its use and potentially helping to fund R & D in renewables (and therefore encouraging competing cleaner energy sources). Renewable energy has positive externalities (energy with lower levels GHG emissions), subsidies compensate producers for these externalities. Furthermore, renewable energy is still a relatively infant industry, which combined with its inherent positive externalities and increasing global energy demand, make it a prime candidate for government subsidy.
Do not get me wrong, we are still a long way away from the point where China and America can lecture Australia and Canada about their emissions (especially considering that China and America represent large export markets for Australian and Canadian fossil fuels respectively). However, it is interesting to note the role reversal, which I believe at it’s root is a failure of the international community to embrace the concept of “common but differentiated responsibilities”. Previous environmental champions, discouraged by the lack of international commitment to emissions reductions, have created an environment where politicians can win elections by tapping into that frustration. “We have tried, now we are concerned with our own problems.” people in these countries may argue. Australia has taken this stance on step further, with respect to ODA:
The outgoing Labor government said in May that Australia’s long-standing pledge to increase its foreign aid spending to 0.5 percent of gross national income by 2015-16 would be postponed by two years.
The coalition said in a statement last week that it shared Labor’s commitment to reach the 0.5 percent target “over time, but cannot commit to a date given the current state of the federal budget.”
“I have to say, there are higher immediate priorities” than reaching the 0.5 percent target, Abbott told reporters last week. “The best thing we can do for our country and ultimately the best thing we can do for people around the world is to strengthen our economy.”
The plans have been condemned by opponents and aid groups, who dubbed it short-sighted and contrary to the nation’s image of global cooperation, particularly in light of Australia’s recent appointments to presidency of the U.N. Security Council and the G-20 in 2014.