Tag Archives: Fossil Fuels

Global Climate Talks: G7 leaders target zero-carbon economy

Repost from The Carbon Brief

G7 leaders target zero-carbon economy

Simon Evans & Sophie Yeo, 08 Jun 2015, 17:00
Third working party at G7 summit
Third working party at G7 summit. | Bundesregierung/Kugler

Global climate talks received a symbolic boost today, as the G7 group of rich nations threw their weight behind a long-term goal of decarbonising the global economy over the course of this century.

The joint communique from the leaders of Japan, Germany, the US, UK, Canada, Italy and France reaffirms their commitment to the internationally agreed target of limiting warming to less than 2C above pre-industrial levels. It also reiterates their commitment to deep cuts in emissions by 2050.

Today’s declaration goes a step further, however, backing a long-term goal of cutting global greenhouse gas emissions at the “upper end” of 40-70% below 2010 levels by 2050 and decarbonising completely “over the course of this century”.

These milestones are broadly in line with the path to avoiding more than 2C of warming, set out by the Intergovernmental Panel on Climate Change (IPCC) last year. The IPCC said this would require “near zero emissions of carbon dioxide and other long-lived greenhouse gases by the end of the century”.

The 40-70% reduction on 2010 levels by 2050 is the range for 2C set out by research organization Climate Analytics earlier this year. It also just about reaches the 70-95% range of emissions reduction by 2050 that would be consistent with limiting warming to 1.5C. A review of whether to adopt this tougher temperature target is expected to conclude at UN climate talks in Bonn this week.

Powering up Paris?

The G7 declaration calls this year’s UN talks in Paris “crucial for the protection of the global climate” and says: “We want to provide key impetus for ambitious results”. It promises to put climate protection “at the centre of our growth agenda”.

However, the G7 nations only account for 19% of global greenhouse gas emissions. Former Australian prime minister Kevin Rudd argued recently that the larger G20 needed to drive the planned global climate deal.

As such, the good will of the G7 is hardly enough to guarantee success in Paris on its own. In the run-up to the 2009 climate talks in Copenhagen — variously described as a “failure”, “setback” or a “disaster” — the then-G8 group of leading nations said:

“We are committed to reaching a global, ambitious and comprehensive agreement in Copenhagen.”

The same 2009 G8 statement set a goal of cutting emissions by “at least” 50% by 2050 – within the 40-70% range set out by the G7 today. It said developed countries should collectively cut emissions by “80% or more” compared to 1990 levels.

G 7-group -photo
Group photo of the G7 leaders sitting together with their outreach guests on a bench. Source: Federal Government – Bundesregierung / Bergmann.

Zero carbon economy

Today’s text does not repeat this promise on developed country emissions. The novel element is its backing for potentially greater global ambition in 2050, along with complete decarbonisation by the end of this century.

Statements from NGOs — and some newspaper headlines — added their own interpretations to this new pledge. The Guardian said the leaders had “agreed on tough measures” that would cut emissions by “phasing out the use of fossil fuels”. The Financial Times headline  says “G7 leaders agree to phase out fossil fuels”.

Greenpeace said the text signalled the fossil fuel age was “coming to an end” and that coal, in particular, must be phased out in favour of 100% renewable energy. Christian Aid made similar points, asking global leaders to follow the UK in committing to phase out unabated coal. G7 nations continue to rely on large fleets of coal-fired power stations, whose combined emissions are more than twice Africa’s total.

The G7 language on decarbonisation this century is not specific, however, and does not promise an end to the use of coal or other fossil fuels. Instead, the language could imply reaching net-zero, where any remaining emissions are balanced by sequestration through afforestation or negative emissions technologies.

The most likely method of achieving negative emissions, biomass with carbon capture and storage (BECCS), is controversial because it might require very large areas of land to be set aside for fast-growing trees or other biomass crops.

The G7 “commit to” develop and deploy “innovative technologies striving for a transformation of the energy sectors by 2050”. The communique doesn’t explain which technologies would be considered “innovative”. However, the use of the plural term “energy sectors” perhaps points past electricity generation towards transport, heat and beyond.

Finance

The declaration is thin on new financial commitments – despite some high expectations heralded by chancellor Angela Merkel’s announcement in May that Germany would double its contribution to international climate finance by 2020.

The communique says that climate finance is already flowing at “higher levels”. All G7 countries have pledged various sums of money into the UN-backed Green Climate Fund (GCF) over the past year, although all countries’ cumulative contributions are still only around $10bn.

This is well short of the $100bn a year that rich countries have pledged to provide every year by 2020. A significant proportion of this is expected to be channelled through the GCF. So far, there is no clear roadmap on how this money will be scaled up over the next five years – a source of contention for developing countries, which rely upon international donations to implement their own climate actions.

In the statement, the G7 countries pledge to “continue our efforts to provide and mobilize increased finance, from public and private sources”.

This doesn’t equate to a commitment to actually scale up finance, Oxfam’s policy lead on climate Tim Gore tells Carbon Brief:

“They’re saying that it’s higher than it was, and now they’re going to try and maintain it at that higher level. What we were looking for was what Merkel did, and say from the level we’re at now, we’re going up towards 2020.”

The statement also says that the G7 nations “pledge to incorporate climate mitigation and resilience considerations into our development assistance and investment decisions”. This could have particular implications for Japan, which is still investing heavily in coal plants both domestically and abroad.

Conclusion

Despite its shortcomings, the stronger elements of the G7 communique were not easily won. Wording on the long term goal could reverberate at the UN negotiations taking place this week in Germany, sending a message about the pressure that countries such as Japan and Canada are under to toe the climate line.

Both nations have faced criticism for low ambition in their INDCs (still due to be finalised in Japan’s case), yet have nonetheless agreed to a statement pointing towards a decarbonised economy by the end of the century.

Alden Meyer, from the Union of Concerned Scientists, says:

“I think it shows the pressure that some of these laggard countries felt under from other countries and from the public in their own countries to not block the language. This is not a kumbaya moment that all of a sudden has transformed the long term goal discussion, and those who have been resisting good language in this agreement are suddenly going to turn around on decarbonisation in the long term goal. I think that’s the political significance.”

Scientists call for end to tar sands mining

Repost from The Guardian
[Editor: This story is also covered (with great photos) in the National Observer, “Over 100 scientists call for oil sands moratorium.”  – RS]

North American scientists call for end to tar sands mining

More than 100 US and Canadian scientists publish letter saying tar sands crude should be relegated to fuel of last resort, because it causes so much pollution
By Suzanne Goldenberg, 10 June 2015 13.14 EDT 
The Syncrude tar sand site near to Fort McMurray in Northern Alberta, Canada
The Syncrude tar sand site near to Fort McMurray in Northern Alberta, Canada | Photograph: David Levene for the Guardian

More than 100 leading US and Canadian scientists called for a halt on future mining of the tar sands, saying extraction of the carbon-heavy fuel was incompatible with fighting climate change.

In a letter published on Wednesday, the researchers said tar sands crude should be relegated to a fuel of last resort, because it causes so much more carbon pollution than conventional oil.

The letter, released two days after G7 countries committed to get off fossil fuels by the end of the century, added to growing international pressure on the Canadian government, which has championed the tar sands and is failing to meet its earlier climate goals.

“If Canada wants to participate constructively in the global effort to stop climate change, we should first stop expanding the oil sands. More growth simply shows Canada has gone rogue,” Thomas Homer-Dixon, professor of governance innovation at the University of Waterloo, said in a statement.

The researchers included a Nobel prize winner, five holders of Canada’s highest national honour, and 34 researchers honoured by Canadian and US scientific societies.

The researchers said it was the first time that scientists had come out as professionals in opposition to the tar sands. The letter offered 10 reasons for the moratorium call, ranging from extraction’s impact on local First Nations communities to destruction of boreal forests and climate change, and argued that foregoing tar sands production would not hurt the economy.

They said they hoped to present those findings to Canada’s prime minister, Stephen Harper, who has lobbied hard in Washington and European capitals for the tar sands.

“We offer a unified voice calling for a moratorium on new oil sands projects,” the scientists said in the letter.

“No new oil sands or related infrastructure projects should proceed unless consistent with an implemented plan to rapidly reduce carbon pollution, safeguard biodiversity, protect human health, and respect treaty rights.”

They said the decisions made by Canada and the US would set an important example for the international community, when it comes to fighting climate change. “The choices we make about the oil sands will reverberate globally, as other countries decide whether or how to develop their own large unconventional oil deposits,” the scientists said.

Since 2000, Canada has doubled tar sands production, and Harper has lobbied Barack Obama to approve the controversial Keystone XL pipeline, which would open up new routes to market for Alberta oil.

The crash of oil prices will likely put some future projects on hold, but are unlikely to affect current production, analysts said.

The organisers of the letter said all future projects should be shelved unless Canada put in place safeguards to protect local people and environment and prevent climate change.

“The oil sands should be one of the first fuels we decide not to develop because of its carbon intensity,” said Thomas Sisk, professor of environmental science at Northern Arizona University, and one of the organisers of the letter.

“It is among the highest emitting fuels in terms of greenhouse gas emissions … If we are trying to address the climate crisis this high carbon intensive fuel should be among the first we forego as we move to an economy based around cleaner fuels.”

Researchers including Sisk first outlined reasons for opposition to the tar sands in Nature last year.

Wednesday’s intervention deepens an emerging political and economic distinction around coal and tar sands among climate campaigners.

As a fossil fuel divestment movement moves from college campuses to financial institutions, a number of prominent supporters, such as Rockefeller Brothers Fund, moved swiftly to ditch coal and tar sands holdings, but plan more gradual moves away from oil and gas.

Scientists agree that two-thirds of known fossil fuel reserves will need to stay in the ground to avoid warming above 2C, the internationally agreed threshold on catastrophic climate change.

The Guardian supports the fossil fuel divestment campaign, and has called on two of the world’s largest health charities, The Bill and Melinda Gates Foundation and the Wellcome Trust, to rid its holdings of coal, oil, and gas.

PETITION: Kick Big Polluters out of Climate Policy

Repost from Oil Change International

Help kick Big Oil out of climate policy!

Sign the petition to the Parties to the United Nations Framework Convention on Climate Change:

“We call on you to take immediate action to protect COP21 and all future negotiations from the influence of big polluters. Given the fossil fuel industry’s years of interference intended to block progress, push false solutions, and continue the disastrous status quo, the time has come to stop treating big polluters as legitimate “stakeholders” and to remove them from climate policymaking.”

Today, we are facing the prospect of the destruction of life as we know it and irreversible damage to our planet due to climate change. Scientists are telling us with ever more urgency that we must act quickly to stop extracting fossil fuels and reduce greenhouse gas emissions. But the world’s largest polluters have prevented progress on bold climate action for far too long.

We call on the Parties to the UNFCCC to protect the UN climate talks and climate policymaking around the world from the influence of big polluters. The world is looking to the next round of negotiations – in Paris this December – for decisive action on climate. This is a pivotal moment to create real solutions. We need a strong outcome from the Paris talks in order to seize the momentum of a growing global movement, and to urge leaders to take bolder action to address the climate crisis.

But the fossil fuel industry and other transnational corporations that have a vested interest in stopping progress continue to delay, weaken, and block climate policy at every level. From the World Coal Association hosting a summit on “clean coal” around COP19 to Shell aggressively lobbying in the European Union for weak renewable energy goals while promoting gas – these big polluters are peddling false solutions to protect their profits while driving the climate crisis closer to the brink.

A decade ago, the international community took on another behemoth industry – Big Tobacco – and created a precedent-setting treaty mechanism that removed the tobacco industry from public health policy. This can happen again here.

Corporate Accountability International will deliver this message and the list of signatures at the climate talks in Bonn, Germany, the first week of June. We will do another delivery by the end of COP21 in Paris this December.

Participating organizations:

350.org
Amazon Watch
Chesapeake Climate Action Network
Climate Action Network International
Corporate Accountability International
CREDO Action
Daily Kos
Environmental Action
Food & Water Watch
Federation of Young European Greens
Forecast the Facts
Greenpeace USA
League of Conservation Voters
Oil Change International
People for the American Way
Rainforest Action Network
RH Reality Check
SumOfUs
The Natural History Museum
CC: UNFCCC Executive Secretary Christiana Figueres
UN Secretary General Ban Ki-moon
Outgoing COP20 President Manuel Pulgar-Vidal
Incoming COP21 President Laurent Fabius

US taxpayers subsidizing world’s biggest fossil fuel companies

Repost from The Guardian

US taxpayers subsidising world’s biggest fossil fuel companies

Shell, ExxonMobil and Marathon Petroleum got subsidises granted by politicians who received significant campaign contributions from the fossil fuel industry, Guardian investigation reveals
By Damian Carrington and Harry Davies, 12 May 2015 07.00 EDT
Marathon Petroleum refinery in Canton, Ohio, got a job subsidy scheme worth $78m when it started in 2011. Photograph: PR

The world’s biggest and most profitable fossil fuel companies are receiving huge and rising subsidies from US taxpayers, a practice slammed as absurd by a presidential candidate given the threat of climate change.

A Guardian investigation of three specific projects, run by Shell, ExxonMobil and Marathon Petroleum, has revealed that the subsidises were all granted by politicians who received significant campaign contributions from the fossil fuel industry.

The Guardian has found that:

  • A proposed Shell petrochemical refinery in Pennsylvania is in line for $1.6bn (£1bn) in state subsidy, according to a deal struck in 2012 when the company made an annual profit of $26.8bn.
  • ExxonMobil’s upgrades to its Baton Rouge refinery in Louisiana are benefitting from $119m of state subsidy, with the support starting in 2011, when the company made a $41bn profit.
  • A jobs subsidy scheme worth $78m to Marathon Petroleum in Ohio began in 2011, when the company made $2.4bn in profit.

“At a time when scientists tell us we need to reduce carbon pollution to prevent catastrophic climate change, it is absurd to provide massive taxpayer subsidies that pad fossil-fuel companies’ already enormous profits,” said senator Bernie Sanders, who announced on 30 April he is running for president.

Sanders, with representative Keith Ellison, recently proposed an End Polluter Welfare Act, which they say would cut $135bn of US subsidies for fossil fuel companies over the next decade. “Between 2010 and 2014, the oil, coal, gas, utility, and natural resource extraction industries spent $1.8bn on lobbying, much of it in defence of these giveaways,” according to Sanders and Ellison.

In April, the president of the World Bank called for the subsidies to be scrapped immediately as poorer nations were feeling “the boot of climate change on their neck”. Globally in 2013, the most recent figures available,the coal, oil and gas industries benefited from subsidies of $550bn, four times those given to renewable energy.

“Subsidies to fossil fuel companies are completely inappropriate in this day and age,” said Stephen Kretzmann, executive director of Oil Change International, an NGO that analyses the costs of fossil fuels. OCI found in 2014 that US taxpayers were subsidising fossil fuel exploration and production alone by $21bn a year. In 2009, President Barack Obama called on the G20 to eliminate fossil fuel subsidies but since then US federal subsidies have risen by 45%.

“Climate science is clear that the vast majority of existing reserves will have to stay in the ground,” Kretzmann said. “Yet our government spends many tens of billions of our tax dollars – every year – making it more profitable for the fossil fuel industry to produce more.”

Tax credits, defined as a subsidy by the World Trade Organisation, are a key route of support for the fossil fuel industry. Using the subsidy tracker tool created by the Good Jobs First group, the Guardian examined some of the biggest subsidies for specific projects.

Shell’s proposed $4bn plant in Pennsylvania is set to benefit from tax credits of $66m a year for 25 years. Shell has bought the site and has 10 supply contracts in place lasting up to 20 years, including from fracking companies extracting shale gas in the Marcellus shale field. The deal was struck by the then Republican governor, Tom Corbett, who received over $1m in campaign donations from the oil and gas industry. According to Guardian analysis of data compiled by Common Cause Pennsylvania, Shell have spent $1.2m on lobbying in Pennsylvania since 2011.

A Shell spokesman said: “Shell supports and endorses incentive programmes provided by state and local authorities that improve the business climate for capital investment, economic expansion and job growth. Shell would not have access to these incentive programmes without the support and approval from the representative state and local jurisdictions.”

ExxonMobil’s Baton Rouge refinery is the second-largest in the US. Since 2011, it has been benefitting from exemptions from industrial taxes, worth $118.9m over 10 years, according to the Good Jobs First database. The Republican governor of Louisiana, Bobby Jindal has expressed his pride in attracting investment from ExxonMobil. In state election campaigns between 2003 and 2013, he received 231 contributions from oil and gas companies and executives totalling $1,019,777, according to a list compiled by environmental groups.

A spokesman for ExxonMobil said: “ExxonMobil will not respond to Guardian inquiries because of its lack of objectivity on climate change reporting demonstrated by its campaign against companies that provide energy necessary for modern life, including newspapers.”

The Guardian is running a campaign asking the world’s biggest health charities, the Bill and Melinda Gates Foundation and the Wellcome Trust, to sell their fossil fuel investments on the basis that it is misguided to invest in companies dedicated to finding more oil, gas and coal when current reserves are already several times greater than can be safely burned. Many philanthropic organisations have already divested from fossil fuels, including the Rockefeller Brothers Fund whose wealth derives from Standard Oil, which went on to become ExxonMobil.

In Ohio, Marathon Petroleum is benefitting from a 15-year tax credit for retaining 1,650 jobs and a 10-year tax credit for creating 100 new jobs. The subsidy is worth $78.5m, according to the Good Jobs First database. “I think Marathon always wanted to be here,” Republican governor John Kasich said in 2011. “All we’re doing is helping them.” In 2011, Kasich was named as the top recipient of oil and gas donations in Ohio, having received $213, 519. The same year Kasich appointed Marathon Petroleum’s CEO to the board of Jobs Ohio, a semi-private group “in charge of the economic growth in the state of Ohio”.

A spokesman for Marathon Petroleum said: “The tax credit recognises the enormous contribution we make to the Ohio economy through the taxes we pay and the well-paying jobs we maintain. We have more than doubled the 100 new jobs we committed to create.” The spokesman said the company paid billions of dollars in income and other taxes every year across the US.

“Big oil, gas, and coal have huge influence on politicians and governments and they get that influence the old fashioned way – they buy it,” said Kretzmann. “Through campaign finance, lobbying, advertising and superpac spending, the industry has many ways to influence candidates and government officials seeking re-election.”

He said fossil fuel subsidies were endemic in the US: “Every single well, pipeline, refinery, coal and gas plant in the country is heavily subsidised. Big Fossil’s lobbyists have done their jobs well for the last century.”

Ben Schreiber, at Friends of the Earth US, said. “There is a vibrant discussion about the best way to keep fossil fuels in the ground – from carbon taxation to divestment – but ending state and federal corporate welfare for polluters is one of the easiest places to start.”

Schreiber also defended subsidies for renewable energy: “Fossil fuels are a mature technology while renewable energy is nascent and still developing. It makes sense to subsidise technologies that are going to help solve climate change, but not to do the same for those that are causing the problem.”