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Energy & Climate

Friday, May 18, 2012
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Emerging Issues in the Electric Power Industry: Challenges and Opportunities in Meeting Clean Energy

By Guest Author, Beren Argetsinger, Pace University School of Law ‘13

Meeting clean energy goals, complying with environmental standards, achieving state renewable portfolio standards (RPS), and maintaining grid reliability require enormous resource and capital investment throughout the energy industry. The recent Energy Bar Association (EBA) Spring Seminar and 66th Annual Meeting in Washington DC offered insight into numerous aspects of these important issues, including the effects of shale gas and new EPA regulations on coal-fired electric generating units (EGU), challenges facing the integration of renewable energy resources, and a discussion of recent Federal Energy Regulatory Commission (FERC) orders, including Order 1000. A summary of meeting highlights follows.

Coal Plant Economics

Rapid growth in shale gas production throughout the United States has led to the lowest natural gas prices in over a decade. Futures prices dipped below $2.00 per thousand cubic feet in April 2012 for the first time since September 2001, and the Energy Information Administration projects that low natural gas prices (in the $4- to $6-per-thousand-cubic-feet range) will continue for the foreseeable future. Low natural gas prices combined with increasingly stringent EPA regulations on power plant emissions have important implications for the electric power industry.

Kurt Bilas, Executive Director of Government Relations at the Midwest Independent System Operator (MISO), noted that out of the approximately 70 gigawatts of coal-generation capacity in the MISO service territory, 60 GW will need to retrofit or retire as a result of EPA’s Mercury Air Toxics Standard (MATS) and the Cross-State Air Pollution Rule (CSAPR, which is currently under stay). Out of that 60 GW, approximately 12 GW (representing over 10 percent of MISO’s total generation capacity) would have to retire.

With EPA’s proposed greenhouse gas rule, the economics for coal fired EGUs – both existing and new – are becoming increasingly marginal in competitive wholesale electricity markets. Further complicating the issue, the decision to retrofit or replace these units must account for the possibility that a significant retrofit of a facility could trigger New Source Review (NSR) and compliance with New Source Performance Standards (NSPS) under the Clean Air Act. Many operators are looking for greater stability and certainty for the long term, and natural gas is quickly emerging as the fuel of choice for new electric power generation.

Infrastructure Limitations

Some regions of the country already rely heavily on natural-gas-fired generation. In 2010 natural gas supplied over 45 percent of the power produced in the ISO-New England service territory, up from just 6 percent in 1990. In other regions, natural gas represents the second largest portion of proposed new generation (second only to proposals for wind). However, switching from coal to gas generation is complicated: new facilities must be constructed and pipeline transportation infrastructure must be in place to deliver the fuel.

In fact, the pipeline infrastructure and nature of the natural gas delivery contracts represent some of the most significant barriers to the transition. In regions such as the Northeast, natural gas is also used as a heating fuel in the winter months. Because gas generators generally take natural gas delivery on an interruptible basis, other customers taking delivery on a firm contract basis – such as the home heating market – take precedent when demand is high and pipeline capacity is full. Expanding pipeline capacity is the logical solution to this problem; however, this takes years of planning, environmental review, siting, permitting, and construction.

Compounding the issue for coal plants is the EPA’s 2015 compliance deadline for MATS (2016, if a state extension is granted). Many operators will choose to retire these old generators rather than upgrading them to meet the new standards. Without adequate replacement capacity in the system, a generation facility could be called upon to run for reliability reasons – putting it out of compliance with the law. The U.S. House of Representatives recently responded to this issue with the passage of H.R. 4273

Liability Exemption?

H.R. 4273 would amend the Federal Power Act (FPA) to exempt a generator operating under an FPA Section 202(c) emergency order from liability if it were otherwise in violation of federal, state or local environmental laws. While the principles contained in the bill are sound – dispatching a generator for emergency reliability purposes should not subject that generator to liability for non-compliance with the law – it opens the door for generators to subvert environmental policy and extend the date of compliance.

Opponents of the legislation have argued the bill would effectively write a loophole into the FPA that would delay compliance with EPA regulation. Further, the EPA maintains that Section 202(c) orders are rare and the legislation is unnecessary, given the other tools that EPA has at its disposal. While the fate of HR 4273 may be a bellwether for how Congress ultimately responds to EPA regulation in the electric industry, the long-term generation resource portfolio that will replace retiring coal units largely will depend on economic, technological, and infrastructure constraints. Public policy, such as state RPS or EPA regulations like MATS, CSAPR, and the proposed greenhouse gas rule, must be considered in regional transmission planning processes pursuant to FERC Order 1000.

Transmission Planning

In July 2011 FERC issued Order 1000 in an attempt to address challenges associated with transmission planning and cost-allocation. At the EBA meeting, former FERC Commissioner Suedeen Kelley noted that the promotion of competition in regional transmission planning processes lies at the core of Order 1000. Requiring the incorporation of public policy into the planning process should stimulate a more holistic assessment of transmission needs, costs, and benefits for transmission infrastructure. This is particularly important for the integration of renewables – which has a sort of “chicken and egg” conundrum associated with it. Renewable developers won’t build new wind turbines if there are no transmission lines to deliver the power to load, and transmission developers won’t build new transmission in the hopes that a wind farm will go up and energize the line.

The Midwest has vast wind resource potential that could play an important role in the nation’s energy portfolio over the long term. Texas, Kansas, Montana, Nebraska, South Dakota, North Dakota, and Iowa have over 6,900 GW of combined wind generation potential. With only 46 GW of installed wind power capacity in the United States in 2011, wind has a long way to go to before it represents a significant portion of the nearly 1000 GW of the country’s total installed capacity.

Balancing Short-Term Market Signals with Long-Term Energy Policy

FERC Order 1000 fosters greater competition and inter-ISO/RTO cooperation in transmission planning, requiring the incorporation of public policy goals in the transmission planning process.  While this is a step in the right direction, comprehensive Congressional action is critical – but unlikely in the near term. That makes it all the more critical for states and regional entities to coordinate on clean energy goals and cost-effective solutions to meeting environmental standards while maintaining grid reliability.

Greater harmonization of state RPS, even if only among states within the same ISO/RTO service territories, could lead to more cost-effective renewable power integration and ease the transmission planning and cost-allocation process. While increased natural gas development will and must be part of our energy future, short-term market signals must be tempered by long-term energy policy goals, including increased federal attention to transmission and renewable energy development.

Beren Argetsinger is a joint-degree student at the Yale School of Forestry & Environmental Studies, where he is pursuing a MEM with a concentration in energy systems and policy, and Pace Law School.

Posted in: Energy & Climate
Wednesday, March 07, 2012
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Q&A with Mary Nichols, Chairman of the California Air Resources Board

By Guest Author, Agustín F. Carbó-Lugo, MEM '12, Yale School of Forestry & Environmental Studies

Mary Nichols, Chairman of the California Air Resources Board, gave the keynote address at the Yale Environmental Law Association’s second annual New Directions in Environmental Law Conference. While she was on campus, she sat down for an interview with Agustín F. Carbó-Lugo, a MEM candidate at the Yale School of Forestry & Environmental Studies.

Agustín Carbó: Environmental justice groups argue that California’s greenhouse gas emissions cap-and-trade program will create “hot spots” in low-income communities. How is California addressing these concerns from a legal and programmatic perspective?

Mary Nichols: First of all, when we began developing the cap and trade program, we were operating under the requirements of AB 32, which has very specific provisions that order the Air Resources Board to consider environmental justice in every aspect of our decisionmaking. And before we could even begin to adopt a market-based program of any kind, we had to make certain findings, including findings that the program would not increase air pollution in any community in the state.

So from the beginning we were analyzing the rule and developing it in a way that we felt [we] would be able to make those kinds of findings -- that [process] involved looking at how the program would actually operate in a worst-case situation: Assuming that the most polluting companies in the state subject to the rule were trying to buy as many credits as they could rather than cleaning up themselves, would they actually be able to do that in a way that would increase localized air pollution?

We were able to satisfy ourselves based on some scenarios that we developed that it could not happen because of existing air quality regulations already on the books. But we also, in the course of writing the regulation, put in some safeguards that we felt would make sure – and hopefully assure concerned members of the public – that it was not going to happen. Those safeguards involved extra monitoring at the localized level and the ability to take action to disallow further use of imported allowances or offsets if we found increased pollution from facilities under the cap and trade program.

One reason we think there’s not a real issue here, despite the concern, is that there’s a tendency on the part of facility owners to make decisions based on actual costs of compliance with the program. In other words, putting a price on carbon causes people to take a look at their operations and decide how to operate more efficiently. Generally speaking, the oldest, dirtiest plants are also those where the company has chosen not to clean up because they’re not operating very efficiently in addition to the pollution that they put out. Either they decide to clean up – and thereby also improve their operating profile – or they’ll tend to shut down their least efficient facilities and concentrate on the places where they get more output per unit of fuel.

The other reason is that when we look at our low-income and minority communities in California with the greatest concentrations of toxic contaminants, the sources of those pollutants tend not to be the industrial facilities themselves, but instead community-level transportation like the ports and the rail yards where the major pollutants of concern are diesel toxic emissions. These facilities are not being directly affected by the cap and trade program, but they are subject of a lot of other regulatory attention from the Air Resources Board these days.

We do understand how in parts of the world – where there are great concerns about whether localized communities have any kind of air pollution protection – adding in carbon trading or carbon allowances could add to a community’s concerns if they’re not also accompanied by a push to deal with health. But in our situation in California, we just don’t think it’s an issue.

Agustín Carbó: Is California’s cap-and-trade program pushing the climate change agenda to a national level? Do you foresee that eventually the federal government may preempt this issue?

Mary Nichols: Some of the thinking behind the original AB 32 was clearly that if our state and other states adopted climate legislation, especially if that legislation was in some ways conflicting or created different pressures on companies, that it would make them more anxious to support federal legislation.

The truth is, a lot of impetus behind the adoption of the Waxman-Markey legislation by the House of Representatives came from the business community; large companies that operate at the national and international level were already experiencing the push and pull of being held accountable in different states and were hoping Congress would step in and preempt state programs like ours. Of course, no bill was passed in the Senate, and it looks now like it’s going to be a long time before that happens.

But I expect that someday Congress will take action. There will be federal climate legislation and if it has a cap and trade element, then state programs probably will be merged into that program. Whether it would be an absolute preemption or a set of steps creating incentives for states to join I can’t say – either way, we would much prefer to be operating under a national program rather than running our own; it’s just more efficient that way.

Agustín Carbó: In light of skeptics and partisan propaganda that insists climate change is not real, what needs to happen to gain more public acceptance and force the U.S. government to commit to international initiatives to fight climate change?

Mary Nichols: I don’t think the impediment has anything to do with science. The science debate is a distraction. Scientists are still debating exactly how cigarette smoking causes cancer. That’s the nature of science – to continue to raise problems and objections.

I recognize that people will be questioning the accepted consensus on human-caused climate change for many years into the future. But the fact is there is enough agreement on the need to curb our emissions of greenhouse gases. That’s not what’s holding back any kind of effective regulatory or legislative program. It’s politics, and it’s the cost – and until there’s a sufficient demand and understanding that there are ways to do this that don’t hurt the economy, that actually help the economy, we’ll continue to see blockage at the national level.

Agustín Carbó: Recent UN Framework Convention on Climate Change (UNFCCC) negotiations have made it clear that climate protection will depend on actions on the ground in both developing and developed countries, a concept that may involve Nationally Appropriate Mitigation Actions (NAMAs) and Low-Emissions Development Strategies (LEDS). Is California considering to design, plan and/or implement some of these measures?

Mary Nichols: I think the California program and the programs we’ve worked on with other states and other subnational groups through various mechanisms – including the Western Climate Initiative and others — constitute that kind of on-the-ground control measure. We think what we’re doing is actually developing some of the operating rules and the experiences that will make it possible for other places to do some of the things we’re doing. The cap-and-trade program is only one example. We also have the low-carbon fuel standard, our advanced fleet cars programs, our industrial audits – there’s a panoply of rules that we’re working on.

But I think what’s more relevant to many parts of the developing world are programs we’re working on that involve incentives and/or voluntary programs – working with agriculture, working with local sanitation districts, helping to promote better technology for the capture and reuse of methane from waste materials. These areas are critically important if we’re actually going to make a dent in the overall buildup of greenhouse gasses. And these are programs that are also underway in California, but they’re not all necessarily being led out of the Air Resources Board. We have a variety of other government agencies at the state and local level working together with the private sector to pioneer some of these activities.

It’s very exciting to pick up the paper every morning to see examples new technologies. For example, there’s a little rural community outside of Las Angeles called Norco, which is famous because it’s zoned for horses. Along with the horses, they also have a very large waste disposal problem – and the city has been spending tens of thousands of dollars each year to collect and truck the stuff to a land disposal site. They’ve just signed a contract with a subsidiary of Chevron, which is developing for them a waste-to-energy plant. The plant will not only alleviate the cost of disposal, but also provide the city with some of its electrical power. This is great stuff, and it’s happening because of interest in waste disposal, energy policy – and it also helps our climate numbers.

This interview has been edited and condensed. A video recording of their conversation is available below as well as here.

Posted in: Energy & Climate
Wednesday, February 01, 2012
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Exploring Canada’s Climate Perspectives: Dr. Shi-Ling Hsu on Canadian Climate Policy

By Guest Author, Erin Burns Gill, Yale School of Forestry & Environmental Studies, MEM '12

In January’s Climate Change Solutions: Frontline Perspectives from Around the Globe webinar, Dr. Shi-Ling Hsu, law professor at the University of British Columbia and author of the new book The Case for a Carbon Tax: Getting Past Our Hang-Ups to Effective Climate Policy, joined the Yale Center for Environmental Law & Policy to discuss climate policy from Canada's perspective. His presentation, “Climate Policy in Canada: (Snow)Boots on the Ground,” explained the nuances of Canadian policy that outsiders may miss by focusing only on the similarities between Canada and the United States. 


On the surface, many of Canada’s climate actions appear to parallel those of the United States: Canada’s recent withdrawal from the Kyoto Protocol or its acceptance of the Copenhagen Accord might be seen as Canada simply following the U.S. lead in international policy, and Canada’s efforts to impose federal command-and-control policies for greenhouse gases might look similar to President Obama’s efforts to regulate carbon under the Clean Air Act. However, there are several subtle but important distinctions between the two neighbors’ attitudes toward climate policy, Hsu said.

He outlined four “puzzles” that, when explained, reveal differences between the United States and Canada:

  1. Why is Canada’s conservative and market-savvy federal government embracing command-and-control climate policy, rather than a market-based approach?
  2. Why is British Columbia—the only province in North America to have accepted a carbon tax—so far ahead of the country and the continent?
  3. Why are four important Canadian provinces still participating in the Western Climate Initiative, when all U.S. states except California have abandoned the program?
  4. What explains Alberta’s voluntary adoption of carbon policy when its economy and policies are so tightly linked with oil & gas extraction?

 

To explain these puzzles Hsu identified four unique Canadian qualities:

  1. Trade Dependence. Canada places a strong emphasis on maintaining healthy trade relationships with the U.S., Europe, and (more and more) China.
  2. Conciliatory Attitudes. Canadian political leaders often value consensus and conciliation over confrontation and conflict.
  3.  Federalism. Canada is a very federalist country—the jurisdiction of Canadian provinces is much broader than that of U.S. States. Provincial responsibility for action on climate change is well recognized, and passing federal climate policies can be very challenging.
  4. Strong Executives. Canada’s executives (the Prime Minister and provincial Premiers) can be very powerful if backed by a legislative majority. Additionally, Canadian courts are highly deferential to executive branch action or inaction. Unlike in the U.S., if an executive agency makes a decision, Canadian courts are unlikely to question or overturn that decision.

 

Hsu then explained how these four Canadian qualities—unique compared to the U.S.—explain the four “puzzles” of Canadian climate policy:

  1. Trade Dependency and Federalism explain Canada’s command-and-control approach to carbon regulation. To avoid trade tariffs and to otherwise remain competitive in a global marketplace, Canadian companies want to show that they operate under similar regulatory conditions as other countries. Additionally, command-and-control regulation is one of the few carbon policies that the federal government is positioned to impose; the federal government does not have constitutional authority to implement a cap-and-trade program. Hsu notes, however, that the proposed means of achieving federal command-and-control may be a tough sell: the government has defined greenhouse gases as toxic substances, and thus plans to regulate emissions under criminal law. 
  2. The Strong Executive role of British Columbia’s Premier Gordon Campbell explains why the province succeeded in passing a carbon tax. Premier Campbell was politically and intellectually interested in a carbon tax policy, and in 2008 he faced ideal political conditions to lead parliament in adopting the legislation. Interestingly, Campbell’s political party was the less liberal of the province’s two parties; by taking leadership on carbon, Premier Campbell won support from environmentalists who were traditionally more supportive of his opponents.  
  3. Federalism explains why the provinces of British Columbia, Manitoba, Quebec, and Ontario remain in the Western Climate Initiative when all U.S. states (except California) have dropped out. Because there is no expectation of leadership from the federal government, Canadian constituencies demand and expect action from their provincial leadership; thus, participation in the Western Climate Initiative is well supported.
  4. Trade Dependence, Conciliatory Attitudes, and Federalism explain why the fossil fuel-dependent province of Alberta has taken voluntary (albeit tepid) action on climate. Oil and gas production accounts for 25 percent of GDP, 75 percent of exports, and 35 percent of government revenue in Alberta. This dependence on fossil fuel trading motivates Alberta to remain an attractive trade partner to countries that more and more prefer climate-friendly suppliers; Alberta’s climate policy is a sign to trading partners that the province is doing something to address climate change. Additionally, a general inclination to remain conciliatory with neighboring Canadian provinces likely motivated Alberta to pursue some degree of voluntary action. Finally, Canadian federalism means that Alberta’s voluntary action may also prove strategic: by having a climate policy in place, Alberta makes it more difficult for the federal government to impose top-down (and potentially more impactful) legislation.

 

To conclude, Hsu predicted climate action will continue to come from Canadian provinces, rather than from Canada’s federal government. He recognized that, despite the unique qualities of Canadian politics, action from the United States would likely motivate action from Canada. In the perhaps more likely case that the U.S. fails to pass significant climate legislation in the short term, there is still potential that Canada might show leadership by adopting a carbon tax.

Such a tax, Hsu said, could be significant even if it’s not very steep. Even a slight price on carbon could guide upcoming capital decisions (regarding the construction of new power plants, for example) toward less carbon-intensive paths.

A full recording of Dr. Hsu’s presentation, along with recordings of all the other webinars in the Climate Change Solutions series, is available at http://yaleenvirocenter.webex.com.

Posted in: Energy & Climate
Friday, December 09, 2011
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Bridging Gaps in Durban: What Can China do?

By Guest Author, Angel Hsu, Max Song, and Jonathan Smith

The following post is republished from China FAQs: The Network for Climate and Energy Information.

One of the most persistent themes so far at Durban has been how to bridge gaps - the divide between the developed and developing countries, many of whom disagree about whether the Kyoto Protocol should be extended into a second commitment period; the hole in climate finance pledges from developed countries; and the ambition or emissions gap between the Copenhagen pledges and the stabilization of global temperatures below a 2 degrees Celsius increase from pre-industrial levels.

These three major gaps must be addressed in Durban. One major question will be whether developing and some developed countries, Europe in particular, can work together to find a solution that enables the Kyoto Protocol to be extended. When it comes to money, there are questions about where some $2 billion USD out of the $30 billion promised to developing countries at Copenhagen and Cancun to assist them in mitigation and adaptation efforts will come from.

Perhaps the most prominent issue being discussed in Durban is the emissions or ambition gap between Copenhagen emission reduction pledges and the goal to limit global temperature rise to 2 degrees Celsius. To help facilitate the negotiations, the United Nations Environment Programme (UNEP) released a report Bridging the Emissions Gap which concludes that even if countries fully implement their Copenhagen commitments, the world would only be about halfway towards the emission reductions necessary to ensure global temperatures do not warm more than 2 degrees Celsius. However, the good news is that we have the technological and financial capacity now to achieve the emissions reductions necessary to avoid such an increase. Focusing on projections of global greenhouse gas emissions in the year 2020, the report looks at the “emissions gap” between:

  1. the level of emissions needed to ensure an average global temperature increase below 2 degrees C; and
  2. the level of global emissions in 2020 we’re likely to see given the voluntary emission reduction pledges in the Copenhagen Accord.

The report finds that even if all Copenhagen reduction pledges are met, total emissions would still exceed the level necessary to prevent a 2-degree increase by 6 to 11 gigatonnes. This is about 1 gigatonne greater than last year’s gap, an increase brought about by some countries such as Australia and Brazil having clarified how they calculate the baseline emissions from which their reductions would be made - effectively weakening their Copenhagen pledges.

But on the bright side, the full implementation of current technologies could more than make up for the gap, and at an economically feasible price. Existing energy efficiency technologies, renewable energy sources, and agricultural practices will be enough to put us back on the right track. In other words, we no longer need to wait for the next great technological breakthrough, just the next great policies to deploy the technology we have now. The report also emphasizes the need to improve measurement and accounting for market-based incentives such as the carbon reduction projects through the Clean Development Mechanism and from land-use, land-use change and forestry (LULUCF).

Negotiators here in Durban have been actively discussing the report and referencing the emissions scenarios that show global emissions must peak sometime before 2020 if temperature rise is to be contained below 2 degrees C. Delegates have been referring to the 6-11 gigatonne gap on the plenary floors and in the working groups over the last week.

We had the opportunity to speak with Dr. Kejun Jiang of China’s Energy Research Institute and a lead author of the UNEP report, about their analysis and what China can do here in Durban to help bridge the gap.

The Gap

Q: The UNEP report concludes that global emissions will need to peak before 2020 if the “emissions gap” is to be closed. How likely do you think it will be for countries to agree on this here in Durban and what about the time frame for when China’s emissions will peak?

A: It’s necessary for the world to see emissions peak by 2020. We can get there supposing China’s emissions peak in 2025, and developed countries will have significantly reduced emissions by 2025. This way, it’s still possible to control global average temperature rise below 2 degrees Celsius. It’s not quite possible to observe the global peak before 2015. For China, emissions are expected to peak around 2030. However, if we look at clean tech development in China now, the speed is very fast and it’s still possible to see major changes coming from China in 3 to 4 years to help close the gap.

Q: So is China’s Copenhagen pledge to reduce carbon intensity 40-45 percent enough to help bridge the emissions gap?

A: Actually, the 12th-Five Year Plan was made according to a target of 45 percent carbon intensity reduction. There are a lot of policies and actions in the plan on energy efficiency and non-fossil fuel energy. If all this work could be done well, it is possible for China to do better than the target.

Clean Tech

Q: Technology transfer continues to be a very hot-button issue in the UN climate negotiations. Will China be pushing for technology transfer to contribute to their ability to help close the emissions gap?

A: There is much capital from China looking for investment opportunities, however domestic investment has been pretty much saturated, and they are now looking at overseas investments. Clean tech investment is a good choice because China has the most competitive technologies that can bring down the cost of wind and solar power. So this is what we want to convey here in Durban: it’s not just emission reductions, it’s also about the country’s future competitiveness in the clean tech sector.

China will have a lot of capital in the future, like I just said, and China is not really in need of CDM money, which is only a tiny little part of GDP. What China needs is high-end technology.

The Durban Agenda

Q: What do you think can be accomplished here in Durban?

A: So here are my suggestions for us observers this time in COP-17. First, we want to leave some more room for the negotiators. Copenhagen was about debating; Cancun was about moving forward, and Durban is a working conference where countries don’t really want to fight each other but to finish the “homework” left from Copenhagen and Cancun. Also, countries in Durban want to nail down some technical details. For example, the EU wants to promote a “road-map” this time, and countries like China are waiting for that proposal to see how much it can be promoted. If Durban fails again, then countries will start to doubt UN’s capability.

Also China is changing very fast, and the negotiators need time to follow up. For example, China expected financial support in Copenhagen, but this time, this is not a major issue for China.

Q: If Parties fail to decide on a second commitment period before the Kyoto Protocol expires next year, what do you think China’s response will be?

A: I think this [failure to agree on the Kyoto Protocol] would be unimaginable. Without the KP - the minimum-level of agreement - it would be a mess. Ideally, we should have an improved KP, both considering the needs from G77+China and developed countries. China can also compromise on some issues here in Durban.

Q: If a new agreement can only be made for 2020, do you think that would be too late?

A: Certainly too late. There is possibility for some countries to make new adjustments to their 2020 emission goals. So I think countries should start to make targets for 2025 and 2030. If those targets are made very clear, then we can start to place less emphasis on emission targets for 2020.


Angel Hsu is a PhD candidate at Yale School of Forestry and Environmental Studies and a contributing expert to ChinaFAQs.org; Max Song is a MEM student at the Yale School of Forestry and Environmental Studies; and Jonathan Smith is a JD/MEM candidate at Yale Law School and the Yale School of Forestry and Environmental Studies. They are all attending COP-17 in Durban.

Posted in: Environmental Performance MeasurementEnvironmental Law & GovernanceEnergy & Climate
Thursday, December 08, 2011
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Propelling the Durban climate talks - China announces willingness to consider legally binding commit

By Guest Author, Angel Hsu, PhD candidate, Yale School of Forestry and Environmental Studies

The following post is republished from China FAQs: The Network for Climate and Energy Information.

When China launched its first official pavilion at a UN climate conference last week, UN Framework Convention on Climate Change (UNFCCC) Secretariat Cristiana Figueres was there alongside China’s NDRC Vice Minister Xie Zhenhua to cut the ribbon. Swarmed by journalists in the standing-room only conference center of the China pavilion in Durban, Figueres applauded China for being a “trend-setter” in global renewable energy, resonating around the world and during the first week of climate negotiations in Durban.

“As I look at what has happened here at Durban in the negotiations this past week, what I see is a sailboat that has been sailing over very difficult waters, but with the wind blowing the right direction. And now that you have arrived, that boat now has a powerful motor behind it,” she said. The motor propelling talks forward into the second and final week of negotiations here in Durban may be developments in China’s negotiation position that emerged last week. An announcement that made waves was with regards to China’s willingness to consider signing on to a legally-binding agreement with binding climate targets after 2020 for the country.

Lead Chinese negotiator Su Wei told media last Friday that, “We do not rule out the possibility of legally binding. It is possible for us, but it depends on the negotiations,” Su is quoted as speaking in English rather than Chinese, presumably to make his point clear.

Although China made similar noises in Cancun, Su’s statement is the first time in the international climate negotiations that China has made this type of overture so clear with regards to a willingness to consider placing its post-2020 action into a legally binding instrument. This willingness to discuss the legal nature of post-2020 targets comes directly counter to the United States’ position put forth in Durban last week in which Jonathan Pershing, Deputy Envoy for Climate Change, said that a legally binding post-2020 agreement would be unacceptable unless other major economies also agree to be legally bound. Indeed it would seem to fulfill one of the US’ main conditions for moving forward.

If China is indeed open to placing its post-2020 commitment into an internationally legally binding instrument, it has just opened a pathway forward to both securing the Kyoto Protocol for the post-2012 period and building a bridge, with all Parties, to a legally binding regime in the near future. The impact of this is not to be underestimated.

Vice Minister Xie Zhenhua confirmed China’s stance when he spoke at a briefing for international NGOs immediately following the China Pavilion’s launch. “We can start the process for a legally-binding framework for issues after 2020,” Xie said, clarifying five conditions that must be met before China can make its commitments legally binding in an international agreement. These conditions are:

  1. Parties must continue the Kyoto Protocol through a second commitment period;
  2. Developed countries must meet financial commitments to provide developing countries $30 billion in fast-start financing and $100 billion per year by 2020 through the Green Climate Fund;
  3. Institutionalization of consensus on finance, technology transfer, REDD+, adaptation, and transparency measures;
  4. Commitment to completion of the review of adequacy of long-term goals scheduled to take place between 2013 and 2015.
  5. Define a framework for a post-2020 agreement that upholds common but differentiated responsibilities, equity, respective capacities, and environmental integrity.

If all conditions are met, Xie says, “We are open to the process.”

Implications – Will China’s move bolster the EU mandate?

The question remains as to whether these major developments in China’s position here in Durban will have a significant impact on the negotiations in Durban. The European Union has stated its openness to placing its 2020 targets into the legally binding Kyoto Protocol if it is part of a package. The package includes a roadmap that would clearly show the way forward for all major economies to be in a binding regime in the post-2020 time period, the negotiations for which would end in 2015. China’s statements agreeing to internationally-binding emissions limits in a post-2020 framework might galvanize other major emerging economies such as India and Brazil to do the same.

Jennifer Morgan, the Climate and Energy Program Director at the World Resources Institute, explained the significance of China’s new posture:

“If China is indeed open to placing its post-2020 commitment into an internationally legally binding instrument, Europe and the most vulnerable countries are now its key allies. If these Parties can work together this week, Durban has a good chance of success,” Morgan added.

It is not yet clear what kind of commitment China would be willing to bind, and that level of specificity does not appear to be part of the current discussion.

Jonathan Smith (JD‘12/MEM’12) and Max Song (MEM’12) contributed to this piece.

Angel Hsu is a Phd candidate at Yale School of Forestry and Environmental Studies and a contributing expert to ChinaFAQs.org; Max Song is a MEM student at the Yale School of Forestry and Environmental Studies; and Jonathan Smith is a JD/MEM candidate at Yale Law School and the Yale School of Forestry and Environmental Studies. They are all attending COP-17 in Durban.

Posted in: Environmental Performance MeasurementEnvironmental Law & GovernanceEnergy & Climate
Tuesday, December 06, 2011
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Chinese experts discuss absolute emissions limits in Durban

By Guest Author, Angel Hsu, Max Song, and Jonathan Smith

The following post is republished from China FAQs: The Network for Climate and Energy Information.

The idea of a total cap on energy consumption in China, first suggested last March before the National People’s Congress, has reemerged in Durban -- and surprisingly there are now suggestions that China might consider some kind of a cap on carbon emissions. This has been suggested apparently as part of domestic policy rather than as a negotiating position, but details are very sketchy.

Over the last week, we have been witnessing an active debate amongst Chinese academics and researchers on energy and carbon caps, although these discussions have taken place separately, from outside the plenary floor and in the multitude of side events the Chinese delegation has been hosting. Chinese negotiators have been careful to not muddy the waters in Durban, especially after making such a loud splash late the first week of negotiations by supporting a legally-binding treaty after 2020. Read more.

What senior government researchers have been suggesting, however, is that China is considering an absolute rather than an intensity-based emissions target that is more restrictive after 2020. Statements by senior researchers from the Energy Research Institute - a high-level government think tank associated with the National Development and Reform Commission (NDRC) - are the first time that China has suggested they might soon be ready to set a timetable and limit for its emissions, at least in the context of domestic policy.

This idea first emerged prior to the March release of the Five-Year Plan. Senior representatives of the Chinese government suggested that an energy consumption cap of 4.1 billion tons coal equivalent might be included in the Plan. Since then we understand the question of a total energy cap has been hotly debated within the Chinese government. Now its advocates are speaking fairly forcefully in Durban and going beyond the energy cap to suggest a carbon cap as well.

At a side event on local pilot carbon trading schemes on Dec. 1 organized by Tsinghua University and the Institute for Global Environmental Strategies, the debate of absolute versus intensity emissions targets was prominently mentioned. Tsinghua University professor Teng Fei emphasized that whether these preliminary carbon-trading schemes will cap emissions on an absolute or an intensity basis is the biggest issue for government leaders in deciding how to roll out these programs to the four cities and two provinces selected as pilots. Lead Chinese negotiator Su Wei was also present and added, “It’s very clear in China’s Five-Year Plan that it’s our objective to gradually establish a national system on carbon emissions trading. Certainly the pilot system is still in the design stage but we have more or less set the direction of piloting market mechanisms.” It certainly could be the case that experience with regards to the design of caps (i.e. sectoral or provincial basis; baseline calculations, etc.) in these local pilot projects may eventually inform a national level cap on emissions.

One reason for a possible shift to an absolute target is because an emissions cap may spur growth in alternative energy sectors – such as natural gas, renewables and nuclear – according to Yang Fuqiang, Senior Advisor on Energy, Environment, and Climate Change for the Natural Resources Defense Council.

While Chinese experts and delegates have not suggested what kind of carbon number they are considering, Jiang Kejun of NDRC’s Energy Research Institute noted, “If you add up the coal consumption cap, the target for non-fossil energy consumption, and the natural gas target, you can basically calculate what an emissions limit for China might be.”

At this point this discussion mainly concerns domestic policy, but its active airing in Durban suggests the scope for Chinese policy development in the next several years.

Angel Hsu is a Phd candidate at Yale School of Forestry and Environmental Studies and a contributing expert to ChinaFAQs.org; Max Song is a MEM student at the Yale School of Forestry and Environmental Studies; and Jonathan Smith is a JD/MEM candidate at Yale Law School and the Yale School of Forestry and Environmental Studies. They are all attending COP-17 in Durban.

Posted in: Environmental Performance MeasurementEnergy & Climate
Friday, October 21, 2011
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Clearing the haze

By Guest Author, Angel Hsu, PhD candidate, Yale School of Forestry and Environmental Studies

The news late last month from China’s environment ministry that it plans to bring one of the country’s most destructive and widespread pollutants – tiny particulates widely known as PM 2.5 – into national air quality standards suggests that attitudes to pollutant data, once deemed too politically sensitive to gather, may be shifting. 

Air particulates with a diameter of 2.5 microns or less (hence “PM 2.5”) have serious health implications. Small enough to penetrate human lung tissue, they can cause asthma, lung cancer and cardiovascular disease. In most parts of China, PM 2.5 has beenfound to account for more than half of air particulate pollution.  But despite these serious pollution levels and impacts, national air-quality standards in China have lacked requirements for monitoring PM 2.5, or specific reduction targets – until now.

Speaking at Seventh Environment and Development Forum on September 22, China’s pollution control secretary Zhao Hualin announced that the Ministry of Environmental Protection (MEP) intends to revise its national ambient air quality standards to include PM 2.5 measurements. Recognising the contribution of PM 2.5 pollution to poor visibility and air quality, Zhaotold the audience, “We have now started to address the haze problem, which is precisely a PM 2.5 problem”. 

The idea is for China’s so-called “model cities” to pilot particulate measurement, themselves something of a shifting phenomenon. In late August, the MEP made revisions for the second time as to what criteria are necessary to qualify as a National Environmental Protection Model City – a title given to cities to reward special efforts in the green sphere – and PM 2.5 measurement is among the requirements. 

Under these new standards, only 11 cities now qualify as model cities, vastly fewer than the 77 reported to have carried the title before the changes. They are: Wujiang, Liaocheng, Qingpu District of Shanghai, Linyi, Dongguan, Xuzhou, Yinchuan, Yichang, Linan, Huai’an and Foshan. Three more have undergone review and are in the process of being designated as model cities, while the remaining locations previously considered model cities are under review. 

The strengthening of air quality metrics suggests that the political tides surrounding pollutant data may be changing. When the MEP released draft amendments to its Air Pollution Index (API) in late February of this year, the inclusion of PM 2.5 was notably absent, despite the addition of ozone and a number of other considerable improvements.  

The omission was criticised as a political maneouvre rather than a decision stemming from a lack of technical capacity in Chinese cities to measure the pollutant. Ma Jun, who directs the Beijing-based Institute of Public and Environmental Affairs, told the Global Times, “Government agencies feel the [inclusion of PM 2.5 in the] index may hurt the image of many cities that want to attract investment or that they may not be able to improve PM 2.5 pollution in a short time.”  

Secret US diplomatic cables, released by Wikileaks, further corroborated such suspicions, reporting research by local scientists that revealed PM 2.5 levels five to 10 times higher than World Health Organisation guidelines was deemed “too sensitive” for authorities and therefore not systematically measured in major Chinese cities. But just months after the release of draft API revisions and the diplomatic cables, secretary Zhao has claimed that measurement of PM 2.5 is “technically no longer a problem”. So, how big a step is this?

The first thing to make clear is that Zhao was most likely referring to the question of technical capability to measure PM 2.5, and questions remain as to whether political sensitivities around environmental data still exist. The memory of a failed attempt to quantify economic losses attributable to environmental harms is still fresh in the MEP’s memory. In 2007, the conclusions of China’s “Green GDP” project met stiff resistance from provincial leaders who feared yet another performance metric, and the results of the report were never officially released. The then-State Environmental Protection Agency and National Bureau of Statistics were left quibbling over data and methodology – a testament to how contentious attributing numbers to pollution can be.  

However, recent signs that China is embracing a more transparent approach to its environmental challenges are evident. In early June, the MEP released a franker assessment of China’s environment than seen previously in the latest annual State of the Environment Report. Vice-minister Li Ganjie stated that while some aspects of the environment showed modest improvement, “the overall environmental situation is still very grave and is facing many difficulties and challenges”. Only 3.6% of the 471 cities monitored in the most recent report garnered top ratings for clean air. 

Deborah Seligsohn, principal advisor to the World Resources Institute’s Climate and Energy Program, has also noted a dramatic shift in language since the 1990s when the annual reports claimed that China’s environmental situation was “basically good” or, later, “basically unchanged”. Not until the State Environmental Protection Agency achieved ministerial status in 2007 did the reports become more critical, describing the environment as “not inspiring”.

Including the politically sensitive PM 2.5 in air-quality standards signals a push for greater transparency in China’s environmental governance. Over the course of a few months the MEP has already taken significant strides to improve air quality measurements and standards. This will bring China’s policies closer to international best practices for air quality monitoring.  

Piloting measurement in model cities makes political sense as a way of easing China into eventual binding PM 2.5 targets for all provinces – a mandate that will likely be included in the 13th Five-Year Plan. By first signaling that PM 2.5 is an aspiration for “model cities”, the government is taking an important step toward lessening political stigma surrounding the pollutant: instead of being punished, cities will be rewarded.

PM 2.5’s inclusion is also indicative of a broader trend: China’s transition to a political culture that is more open about environmental conditions. Importantly, if it continues, this openness will allow greater public access to data and information, in turn spurring better results for the environment.

Angel Hsu is a doctoral student at the Yale School of Forestry and Environmental Studies and project director for the 2012 Environmental Performance Index.

This piece was originally posted on the China Dialogue website on October 19th.

Posted in: Environmental Performance MeasurementEnergy & Climate
Wednesday, October 19, 2011
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The Nuclear Power Endgame in Germany

By Guest Author, Erin Burns Gill, MEM '12, Yale School of Forestry & Environmental Studies

In the second event of the webinar series Climate Change Solutions: Frontline Perspectives from Around the Globe, the Yale Center for Environmental Law & Policy welcomed Mr.  R. Andreas Kraemer, Director of Ecologic Institute, Berlin, to the stage to address the nuclear power phase out in Germany.  Speaking both to our international online audience and a live audience in Berlin, Mr. Kraemer offered a fascinating discussion on the true causes and triggers of Germany’s decision to cease production of electricity from nuclear power plants by 2022.

Though general perception (particularly outside of Germany) points toward the tragic catastrophe at Fukushima earlier this spring as the trigger for the dramatic shift, in truth, the nuclear endgame has been in play for years.  Economics, rather than emotions, underlie the decision.

The decision to phase out nuclear is significant. No exception to the trend among many industrialized nations, Germany deployed nuclear power plants in the 1950s as a safe and reliable source of electricity, as well as a way to try to redeem nuclear technology after the attacks on Hiroshima and Nagasaki in World War II.  In 2010, nuclear provided 23 percent of Germany’s electricity.[1]  Phasing out this substantial industry will not be easy, but it does make sense.

The economics of nuclear are clear: Nuclear power is economically unsustainable without public subsidies. Private investment in the industry simply has not demonstrated willingness to pay for the associated risks.  At the same time, political and public dissatisfaction with nuclear has grown, matched by increasing support for renewable energy.

Mr. Kraemer explained how the successful deployment of renewable energy in Germany has shifted the way Germans envision electricity grids. Rather than maintaining a grid of large, centrally placed power plants, Germany seeks a smarter, more efficient grid fed by distributed generation supplemented by strategic and economical larger plants.  Widespread public support for renewable energy justified the creation of German policies that promote renewable energy. These policies ultimately jumpstarted Germany’s now self-sustaining renewable energy industries. In a climate constrained world, this robust and growing portfolio of renewable energy opens the door to phasing out nuclear.

A far cry from simply shutting down plants, the German government orchestrated a strategic, orderly phase-out of nuclear, working in collaboration with the nuclear industries to smooth the transition for the industry and the public. Essentially, the phase-out strategy allows nuclear plants to continue running through the end of their useful life, but there will be no investment in extending plant life and certainly no new nuclear.

Can the US catch up with Germany? Mr. Kraemer says “yes!” The US has plenty of energy from the sun and wind – more “energy potential,” in fact, than Germany. What’s missing is political will and, to some extent, maturity of the renewable energy industries. We need to learn from Germany’s experience. Looking at the economics (in which nuclear power has no self-sustaining business case) and the environmental and social risks associated with the technology, Mr. Kraemer’s proposition is that the United States (as well as the European Union and other global countries) should admit that our investment in nuclear power was a mistake and begin to phase it out in an orderly way.

You can hear Mr. Kraemer’s full discussion on the nuclear power endgame in Germany here.



[1]
Federal Statistical Office, Germany. “17% of Germany’s electricity consumption was met by renewable energy in 2010” Press release No. 144, April 11, 2011.

Posted in: Energy & Climate
Monday, October 17, 2011
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Why Environmentalists Can’t Ignore Development Economics, and Two Books to Get Us Started

By Guest Author, Ainsley Lloyd, MEM '12, Yale School of Forestry & Environmental Studies

Picture rural Ghana: Orange-brown yam fields with hand-piled dirtmounds stretch for miles in any direction, a silent testament to the fact that half the country’s population makes its living from agriculture. The farmers wait for rain; the yams need it – but for all of its life-giving properties, it complicates life when it comes, carving deep gullies into dirt roads and bringing anopheles mosquitoes and their bellyfuls of the malaria parasite, which kills nearly one million people annually.

The developing world is tightly intertwined with the environment. Indeed, the U.N. calls ecosystems “the GDP of the poor,” because of the dependence this portion of society has on the environment. Now consider just how many people this portion represents: more than half of the earth’s population earns less than $3,000 per year. 

With paved roads, financial metropoles and first-world medical care it’s easy to forget how visceral our connection to the environment is. But our task as environmentalists--understanding the complex relations between humans and the environment--cannot be accomplished without a close look at the developing world.


Though academic articles within the discipline can be daunting, two excellent, accessible books covering development economics research have been released this year. Written in a narrative style, Karlan and Appel’s More than Good Intentions and Banerjee and Duflo’s Poor Economics summarize key developments in the past decade. The authors are all involved in two cutting-edge development research organizations: Innovations for Poverty Action (IPA) and The Abdul Latif Jameel Poverty Action Lab (J-PAL). IPA and J-PAL have pioneered the use of randomized controlled trials, methodology borrowed from medical trials that has brought the rigor of hard science to development research.

Important reading for all environmentalists.

Posted in: Energy & Climate
Monday, October 10, 2011
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The Klamath River: How the 100-Year Old Crisis is Finally Coming to an End

By Guest Author, Laura Johnson, MESc '13, Yale School of Forestry & Environmental Studies

In a recent Yale Environment 360 video, photographer Pete McBride navigates the Colorado River from its source in the Rocky Mountains to its historic mouth in Mexico. It’s a sobering account. The Colorado River, Pete says, has become a “dry river cemetery.”

Over 20 dams were installed along the Colorado River to divert water for industrial, agricultural, and urban life. These ever-increasing demands exceed the river’s capacity, and droughts are spreading throughout the basin. Similar water management problems exist worldwide, but another example close to home is California’s Klamath River. Officials recently announced that four of the major dams along the Klamath will be removed in the coming years – and the situation there may offer some hope for the Colorado.

In 1909, developers installed the first of four major dams on the Klamath River as part of the PacifiCorp Klamath River Hydroelectric Project. The installation of these hydroelectric dams had a number of negative effects: Coho salmon and steelhead trout populations throughout the Klamath River Basin declined, migratory salmon were kept from reaching spawning grounds up river, and algal blooms developed behind the dams, creating an additional source of stress for fish populations.

Stakeholders – including Indian tribes, the US Department of Interior, farmers, environmental groups, and private citizens – called for improved management strategies and, in 2003, the National Research Council (NRC) released a set of recommendations for overhauling the Klamath River, including a call for dam removal. The NRC based its decisions on data and risk analyses, and provided stakeholders the indicators they needed to analyze potential effects of various water management strategies.

The inclusion of indicator data allowed stakeholders to come to an eventual agreement on how to best manage the Klamath River’s water resources; the various groups signed the Klamath Restoration Agreement and Klamath Hydroelectric Settlement Agreement in 2010 and are waiting approval from Congress. The dam-removal project is expected to begin in 2020, allowing PacifiCorp time to raise money for the project without increasing power rates to its customers.

The Klamath River Restoration Agreement offers a successful example of social learning through adaptive management and stakeholder involvement – and it underscores the importance of metrics and data in environmental decisionmaking.

For more information on the Klamath River restoration visit http://klamathrestoration.org/

Posted in: Environmental Performance MeasurementEnergy & Climate
Thursday, October 06, 2011
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Key Steps on Global Warming Agreed in Cancun… Now What?

By Guest Author, Jonathan Smith, Yale Law School, J.D. '12; Yale School of Forestry and Environmental Studies, M.E.M. '12

The binding international greenhouse gas emissions reduction targets of the Kyoto Protocol are set to expire next year, but global greenhouse gas emissions show no signs of halting themselves.  All eyes are focused on this December’s Conference of the Parties of the United Nations Framework Convention on Climate Change in Durban, South Africa to see how, if at all, the emissions reduction targets of Kyoto will be extended past 2012. The Yale Center for Environmental Law and Policy invited NRDC’s International Climate Policy Director, Jake Schmidt, to talk about recent developments in international climate negotiations, and what we can expect from Durban, as part of the Center’s new Climate Change Solutions: Frontline Perspectives from Around the Globe webinar series.

Jake’s presentation, entitled Key Steps on Global Warming Agreed in Cancun… Now What? (recording available here) focused on the major unresolved issues from last year’s conference in Cancun that are likely to be discussed and negotiated at Durban, including the transparency of each country’s emissions data, accountability of each country’s emissions reduction targets, and new funding pathways such as the Green Climate Fund. But of course, the elephant in the room is the conclusion of the Kyoto Protocol obligation period. With Kyoto as the ostensible driver of national greenhouse gas emissions reduction commitments the world over, significant changes to, or non-continuation of, Kyoto has the potential to throw a wrench in the best-laid plans of politicians, negotiators, and activists.

But, as Jake highlighted, many countries have recently been taking decisive emissions reduction action seemingly without direct relation to obligations under Kyoto. For example, neither of the top two emitting countries, China and the United States, has binding reduction targets under Kyoto, but both are nevertheless taking political action to reduce domestic greenhouse gas emissions. China is a party to Kyoto but not listed as an Annex I country, and thus has no binding emissions targets. Yet its most recent Five-Year Plan has made emissions reduction promises formed at the Copenhagen conference into binding domestic law, and Chinese investment in clean energy technologies continues to rise. The United States, which has not ratified the Kyoto Protocol, is nevertheless also following through with policies to reduce emissions such as higher fuel efficiency standards and revising emission standards for power plants. The U.S.’s energy-related CO2 emissions have decreased since 2005, and the U.S. Energy Information Administration predicts that just with the policies of today, emissions will stay below 2005 levels until at least 2035.

Globally, clean energy investments increased 30% from 2009 to 2010, and 2010 was the first year that nearly half of new energy capacity was non-fossil in nature. It is statistics like these, and proactive national emissions reduction actions like those above, that provide glimmers of hope for climate policy post-Kyoto. As Jake notes, the question is no longer if countries will take action, but rather how much action will they take?

Posted in: Environmental Law & GovernanceEnergy & Climate
Friday, September 02, 2011
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Green Kitchens in Cambodia: Can Cookstoves Fuel an Economy?

By Guest Author, Jasmine Hyman, PhD candidate, Yale School of Forestry & Environmental Studies

Siem Reap, home of the Angkor Watt temples, is among Cambodia's poorest provinces [1]. Four out of ten villages lack access to clean drinking water; literacy rates are among the lowest in the country; 53 percent of all children are malnourished, and average incomes hover just above $1.80 USD per day [2]. The tourism industry here brings in over $640 million USD per year, yet foreign revenue streams do not ensure (and may indeed extract from) local development -- though the draw of external revenue streams is understandably attractive for Least Developed Countries such as Cambodia. 

But a different form of foreign investment has dramatically changed Arun and Mlis Keo's [3] economic outlook. The couple, who farms just 20 kilometers from the Angkor Watt heritage site, acquired a biodigester through the National Biodigester Program (NBP) run by the Ministry of Agriculture, Forestry and Fisheries of the Cambodian Royal Kingdom (MAFF) and the Netherlands Development Organisation (SNV-Cambodia). The biodigester, which converts livestock dung to biogas, fuels their cooking and household lighting needs and has decreased their energy bill by $14.39 per month -- while saving them one and a half hours per day in fuelwood collection. The slurry waste from the biodigestion process substitutes for chemical fertilizer, generating an extra annual savings of $52 per year.

The Keo family represents just one of 8,000 Cambodian rural homes, spanning nine provinces, that have qualified for a flat $150 subsidy and soft private loans to invest an average of $472 into a household-scale biodigester. Considering that the average annual Khmer income is $412, the NBP's popularity (and zero loan-default rate) deserves investigating [4].

When talking about the biodigester, the Keos do not mention the environmental or health benefits of the project. The best part of owning a biodigester is the convenience, Mlis Keo said. She no longer needs to collect firewood or buy charcoal, and cooking rice on a gas stove is much easier than building and maintaining a fire.   

But reductions in household soot and atmospheric methane from the livestock waste are certainly points of interest for NBP, which is trying to convert those benefits to carbon credits for international sale.  

Carbon finance -- foreign investment in greenhouse-gas-reducing projects in developing countries that generate, in turn, carbon credits that developed countries may buy and use for their own climate commitments -- has been a source of controversy in international headlines and academic debate since the Kyoto Protocol launched a global carbon market in 2005. Proponents point to an estimated $141.9 billion market value in 2010 [5] while critics underscore imbalanced regional investment patterns [6] and uncertainty regarding the final destination of the revenue streams.

While much has been said on the shortcomings of carbon finance, the market's local successes are poorly understood and may, in fact, be hindered by current market rules. Further, while the future of the Kyoto Protocol is uncertain, international enthusiasm for carbon-financed cookstove programs is on the rise with the launch of the Global Alliance for Clean Cookstoves. But how can carbon finance truly benefit the poor? And are current requirements for defining a carbon offset project relevant for development objectives? 

These are just a few of the issues driving my research. Through funding by the Yale Center for Environmental Law and Policy and pilot support from the Yale Institute of Biospheric Studies, I am collaborating with the Nexus Alliance of small-scale project developers to trace benefit flows and to identify principles for success when designing pro-poor cookstove and kitchen interventions.   

Jasmine Hyman, M.Sc. (LSE), B.A. (Columbia) is completing a doctorate at the Yale School of Forestry & Environmental Studies, where she holds a doctoral fellowship from the National Science Foundation. Her research seeks to identify design principles for global climate finance schemes that promote equitable development and social justice. 


[1] Kosa, Chea and Mara, Yos (2006), "Children's Empowerment through Education Services (CHES) Project in Siem Reap Province," in Winrock International (ed.), (Phnom Penh).

[2] Doherty, Ben (2010), "Angkor Butterfly Hunters Tell of Poverty Amid Tourist Wealth," The Guardian.

[3] Names have been changed.

[4] van Mansvelt, Rogier (2011) "Biodigester User Survey 2009-2011," for NBP, Phnom Penh

[5] Capoor, Karan and Ambrosi, Philippe (2010), "State and Trends of the Carbon Market 2010," (Washington DC: The World Bank).

[6] UNEP RISOE, CDM in Charts, Accessed July 2011.

Posted in: Innovation & EnvironmentEnvironmental Law & GovernanceEnergy & Climate
Wednesday, August 31, 2011
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China’s 12th Five-Year Plan Lays Out Ambitious Blueprint, but Data Challenges Remain

By Guest Author, Angel Hsu, PhD candidate, Yale School of Forestry and Environmental Studies

In March, China released its 12th Five-Year Plan – a blueprint outlining the key economic and development targets for the country over the next few years.  Unlike previous Plans, climate change and energy are featured prominently, and a strong emphasis is placed on a slower, more sustainable growth trajectory.[1]  Not only is the 12th Five-Year Plan the first to mention climate change, but it adopts as part of national, binding law the climate pledges China first made at the United Nations Framework Convention on Climate Change (UNFCCCC) Copenhagen climate summit in December 2009.  Binding targets for a range of other environment and energy issues are also included in the Plan, including important air and water quality pollutants that were previously absent.

Part of the country’s ability to achieve these targets will be in its capacity to measure and track progress toward its goals.  The Chinese government has pledged implementation of “well-equipped and statistical and monitoring systems” and “index evaluation systems”[2] in the 12th Five Year Plan, indicating an increasing awareness of the importance of data, information and robust infrastructure to ensure targets are met.  However, while there are signs of China’s move toward a more “data-driven” approach to decision-making in the formulation of the latest Plan, political sensitivities around pollution information still persist, meaning China may still confront challenges when trying to improve environmental conditions.

The 12th Five-Year Plan comes at a time of growing recognition from the Chinese government regarding the importance of information for environmental decision-making. In 2010 the Chinese government completed its first national census of pollution, requiring more than $100 million U.S. dollars, 570,000 staff and nearly two years to complete.[3]  The survey mapped more than 6 million sources of residential, industrial, and notably agricultural pollution, which had been previously absent from measures of water contamination.  The survey found that previous measures of water pollution – specifically chemical oxygen demand – had neglected to include non-point agricultural sources of pollution, from fertilizer and pesticide effluent as well as landfill leakage.[4] Including these non-point sources of discharge meant that prior measures of water pollution had been missing over half of the baseline data for chemical oxygen demand – from 13.8 million tons in 2007 to 30.3 million.  At the time, Chinese officials noted that the targets would not be revised based on the new data, while still touting China’s success in meeting COD reduction targets in the 11th Five-Year Plan. However, the findings from the survey did lead to the adoption of a binding reduction target for a critical water pollutant – ammonia nitrogen – and continued reduction goals for Chemical Oxygen Demand (COD) in the 12th Five-Year Plan. The adoption of these new water pollution targets were largely due in part to the survey results, which allowed for the government to set new targets and refine previous ones based on this new information. 

While this example speaks to the progress China is making in terms of measurement and performance tracking, political sensitivities surrounding other environmental data still prove to be barriers to policy changes.  Earlier this year, the Chinese Ministry of Environmental Protection (MEP) released draft proposals to amend its Air Pollution Index (API) [5] to an Air Quality Index (AQI) that more closely resembles the U.S. version [6]. While the proposed amendments include significant improvements – such as including ozone measurements, improved calculation methodologies, and standardizing color-coding schemes – PM 2.5 [7] is notably absent.Experts, such as Ma Jun, Director of the Institute of Public and Environmental Affairs (IPE), a Beijing-based NGO, and former Yale World Fellow, have suggested that leaving out PM 2.5 is due to political rather than technical concerns. “Government agencies feel the index may hurt the image of many cities that want to attract investment or that they may not be able to improve PM 2.5 pollution in a short time,” Ma told the Global Times. U.S. diplomatic cables have also revealed that lack of measurement of PM 2.5 and other dangerous air pollutants could be due to fear of political consequences.

So while we can see evidence that China is embracing improved data-based decision-making, the results are mixed because political vulnerability toward environmental pollution is still a serious concern amongst Chinese leadership who fear citizen unrest and social instability.  What China must realize are the benefits from knowing risks and exposures to environmental harms and pollutants, which is not possible without measurement.  Failing to incorporate critical pollutants in national environmental policies only pushes serious concerns under the rug, in a type of “act now, apologize later” mentality that in many cases have led to dire political ramifications for Chinese government officials when harmful pollution disasters surface [8].

Therefore, while the 12th Five-Year Plan makes important inroads in establishing more comprehensive environment and energy-related targets, equal progress needs to be made in terms of data transparency and a shift toward a government culture that doesn’t fear data and numbers.Only then can the Chinese leadership expect to formulate sound policies and robust systems to drive environmental results.


[2] Premier Wen’s Work Report, the NDRC Draft Plan for National Economic and Social Development, and the Ministry of Finance Budget Report can all be found online: http://blogs.wsj.com/chinarealtime/2011/03/05/china-npc-2011-reports-full-text/.

[3] Xinhua News Agency. 2010. China issues first national census of pollution sources. February 10. http://english.mep.gov.cn/News_service/media_news/201002/t20100210_185653.htm.

[4] Ansfield, J. and K. Bradsher. 2010. China Report Shows More Pollution in Waterways. The NY Times. http://www.nytimes.com/2010/02/10/world/asia/10pollute.html.

[6] Hsu, A. 2011. China amends air quality measures but misses key pollutant – PM 2.5. http://hsu.me/2011/03/china-amends-air-quality-measures-but-misses-key-pollutant-pm-2-5/.

[7] PM 2.5 refers to air particulates with a diameter of 2.5 microns or less; known to have serious health implications such as asthma, lung cancer, and cardiovascular disease, due to their ability to penetrate human lungs.

[8] Si, Meng. 2011. On Yunnan’s Chromium Trail. China Dialogue. http://www.chinadialogue.net/article/show/single/en/4493.

Posted in: Environmental Performance MeasurementEnvironmental Law & GovernanceEnergy & Climate
Thursday, August 18, 2011
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World’s First Electric Highway

By testpersona

British-based electricity firm Ecotricity will complete the world's first electric highway by September of this year by installing twelve electric charging stations between London and Edinburgh.  The first of its kind, the aim is to bring the all-electric vehicle out of the city and make longer distance (not just commuter) traveling possible.

Though still a market in its infancy, it's estimated that the UK needs to have 1.7 million electric vehicles on the road by 2020 in order to meet its carbon reduction targets. At today's roughly 2,000 electric vehicles on the road, there's a long way to go to meet that target - but without eliminating the perpetual cycle of consumers not buying electric vehicles due to the lack of charging stations, and charging stations not being built due to lack of electric vehicles and demand – electric vehicle numbers will always remain low.
 
With top ranges of just 100 miles for newer electric vehicles, and an average charging time of 20 minutes to top up and a whole hour to fully charge the battery, critics argue that charging times are simply too long at this point to present a viable option for longer motorway journeys.  Put in context, that would mean stopping just over three times, for an hour each time to complete the 400 mile journey from London to Edinburgh.
 
While it's critical to get a charging network in place, without faster charging time and improved battery range, electric vehicles may still be confined to city living.
Posted in: Innovation & EnvironmentEnergy & Climate
Tuesday, July 12, 2011
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Limiting SO2 and NOx crossing state borders

By Guest Author, Yaron Schwartz, Research Assistant, Yale Center for Environmental Law and Policy

The U.S. Environmental Protection Agency released this past Friday the Cross-State Air Pollution Rule (CSAPR), a new and potentially powerful regulation that limits the amount of sulfur dioxide (SO2) and nitrogen oxides (NOx) that can cross state borders. CSAPR is a response to the environmental dilemma created by airborne pollutants that can disperse widely and across state boundaries, a dilemma that particularly afflicts the eastern half of the United States (for instance, sulfur dioxide emissions from a Pennsylvania power plant creating acid rain in New York’s Adirondacks). Under CSAPR, 27 states will be required by 2014 to cut their SO2 emissions to 2.4 million tons per year and their NOx emissions to 1.2 million tons per year, down from 8.8 million tons and 2.6 million tons in 2005. 

 Map

CSAPR’s public health and environment benefits could be vast. The EPA announced that they expect the rule to prevent 34,000 premature deaths, 15,000 nonfatal heart attacks, 19,000 cases of acute bronchitis, 400,000 cases of aggravated asthma, and 1.8 million sick days a year beginning in 2014.  The EPA also estimated that CSAPR’s benefits will overwhelmingly outweigh its costs.  The following graphic tells the story well. 
 

For more information about the EPA’s new rule on cross-state pollution, please visit: http://www.epa.gov/airtransport/.

Posted in: Environmental Law & GovernanceEnergy & Climate

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