Category Archives: Fossil fuels

Renewable Energy After COP21: Nine issues for climate leaders to think about on the journey home

Repost from PostCarbon Institute
[Editor:  A lengthy article, well-worth your time.  This is by Richard Heinberg, Senior Fellow-in-Residence of the Post Carbon Institute and widely regarded as one of the world’s foremost Peak Oil educators.  – RS]

Renewable Energy After COP21: Nine issues for climate leaders to think about on the journey home

Richard Heinberg, December 14, 2015

COP21 in Paris is over. Now it’s back to the hard work of fighting for, and implementing, the energy transition.
We all know that the transition away from fossil fuels is key to maintaining a livable planet. Several organizations have formulated proposals for transitioning to 100 percent renewable energy; some of those proposals focus on the national level, some the state level, while a few look at the global challenge. David Fridley (staff scientist of the energy analysis program at Lawrence Berkeley Laboratory) and I have been working for the past few months to analyze and assess many of those proposals, and to dig deeper into energy transition issues—particularly how our use of energy will need to adapt in a ~100 percent renewable future. We have a book in the works, titled Our Renewable Future, that examines the adjustments society will have to make in the transition to new energy sources. We started this project with some general understanding of the likely constraints and opportunities in this transition; nevertheless, researching and writing Our Renewable Future has been a journey of discovery. Along the way, we identified not only technical issues requiring more attention, but also important implications for advocacy and policy. What follows is a short summary—tailored mostly to the United States—of what we’ve learned, along with some recommendations.

1. We really need a plan; no, lots of them

Germany has arguably accomplished more toward the transition than any other nation largely because it has a plan—the Energiewende. This plan targets a 60 percent reduction in all fossil fuel use (not just in the electricity sector) by 2050, achieving a 50 percent cut in overall energy use through efficiency in power generation (fossil fueled power plants entail huge losses), buildings, and transport. It’s not a perfect plan, in that it really should aim higher than 60 percent. But it’s better than nothing, and the effort is off to a good start. Although the United States has a stated goal of generating 20 percent of its electricity from renewable sources by 2030, it does not have an equivalent official plan. Without it, we are at a significant disadvantage.

What would a plan do? It would identify the low-hanging fruit, show how resources need to be allocated, and identify needed policies. We would of course need to revise the plan frequently as we gained practical experience (as Germany is doing).

What follows are some components of a possible plan, based on work already done by many researchers in the United States and elsewhere; far more detail (with timelines, cost schedules, and policies) would be required for a fleshed-out version. It groups tasks into levels of difficulty; work would need to commence right away on tasks at all levels of difficulty, but for planning purposes it’s useful to know what can be achieved relatively quickly and cheaply, and what will take long, expensive, sustained effort.

Level One: The “easy” stuff

Nearly everyone agrees that the easiest way to kick-start the transition would be to replace coal with solar and wind power for electricity generation. That would require building lots of panels and turbines while regulating coal out of existence. Distributed generation and storage (rooftop solar panels with home- or business-scale battery packs) will help. Replacing natural gas will be harder, because gas-fired “peaking” plants are often used to buffer the intermittency of industrial-scale wind and solar inputs to the grid (see Level Two).

us-final-energy-consumption-2012

Electricity accounts for less than a quarter of all final energy used in the U.S. What about the rest of the energy we depend on? Since solar, wind, hydro, and geothermal produce electricity, it makes sense to electrify as much of our energy usage as we can. For example, we could heat and cool most buildings with electric air-source heat pumps (replacing natural gas- or oil-fueled furnaces). We could also begin switching out all our gas cooking stoves with electric stoves.

Transportation represents a large swath of energy consumption, and personal automobiles account for most of that. We could reduce oil consumption substantially if we all drove electric cars (replacing 250 million gasoline-fueled automobiles will take time and money, but will eventually result in energy and financial savings). But promoting walking, bicycling, and public transit will take much less time and investment, and be far more sustainable in the long-term.

Buildings will require substantial retrofitting for energy efficiency (this will again take time and investment, but will offer still more opportunities for savings). Building codes should be strengthened to require net-zero energy or near-net-zero-energy performance for new construction. More energy-efficient appliances will also help.

The food system is a big energy consumer, with fossil fuels used in the manufacturing of fertilizers, in food processing, and transportation. We could reduce a lot of that fuel consumption by increasing the market share of organic, local foods. While we’re at it, we could begin sequestering enormous amounts of atmospheric carbon in topsoil by promoting farming practices that build soil rather than deplete it.

If we got a good start in all these areas, we could achieve at least a 40 percent reduction in carbon emissions in ten to twenty years.

Level Two: The harder stuff

Solar and wind technologies have a drawback: they provide energy intermittently. When they become dominant within our overall energy mix, we will have to accommodate that intermittency in various ways. We’ll need substantial amounts of grid-level energy storage as well as a major grid overhaul to get the electricity sector to 80 percent renewables (thereby replacing natural gas in electricity generation). We’ll also need to start timing our energy usage to better coincide with the availability of sunlight and wind energy. That in itself will present both technological and behavioral hurdles.

Electric cars aside, the transport sector will require longer-term and sometimes more expensive substitutions. We could reduce our need for cars (which require a lot of energy for their manufacture and de-commissioning) by densifying our cities and suburbs and reorienting them to public transit, bicycling, and walking. We could electrify all motorized human transport by building more electrified public transit and intercity passenger rail links. Heavy trucks could run on fuel cells, but it would be better to minimize trucking by expanding freight rail. Transport by ship could employ modern fsails to increase fuel efficiency (this is already being done on a tiny scale), but re-localization or de-globalization of manufacturing would be a necessary co-strategy to reduce the need for shipping.

Much of the manufacturing sector already runs on electricity, but there are exceptions—and some of these will offer significant challenges.

materials-prius

Many raw materials for manufacturing processes either are fossil fuels (feedstocks for plastics and other petrochemical-based materials including lubricants, paints, dyes, pharmaceuticals, etc.) or currently require fossil fuels for mining and/or transformation (e.g., most metals). Considerable effort will be needed to replace fossil fuel-based materials and to recycle non-renewable materials more completely, significantly reducing the need for mining.

If we did all these things, while also building far, far more solar panels and wind turbines, we could achieve roughly an 80 percent reduction in emissions compared to our current level.

Level Three: The really hard stuff

Doing away with the last 20 percent of our current fossil fuel consumption is going to take still more time, research, and investment—as well as much more behavioral adaptation. Just one example: we currently use enormous amounts of cement for all kinds of construction activities. Cement making requires high heat, which could theoretically be supplied by sunlight, electricity, or hydrogen—but that will entail a nearly complete redesign of the process.

While with Level One we began a shift in food systems by promoting local organic food, driving carbon emissions down further will require finishing that job by making all food production organic, and requiring all agriculture to sequester carbon through building topsoil. Eliminating all fossil fuels in food systems will also entail a substantial re-design of those systems to minimize processing, packaging, and transport.

The communications sector—which uses mining and high heat processes for the production of phones, computers, servers, wires, photo-optic cables, cell towers, and more—presents some really knotty problems. The only good long-term solution in this sector is to make devices that are built to last a very long time and then to repair them and fully recycle and re-manufacture them when absolutely needed. The Internet could be maintained via the kinds of low-tech, asynchronous networks now being pioneered in poor nations, using relatively little power.

Back in the transport sector: we’ve already made shipping more efficient with sails in Level Two, but doing away with petroleum altogether will require costly substitutes (fuel cells or biofuels). One way or another, global trade will have to shrink. There is no good drop-in substitute for aviation fuels; we may have to write off aviation as anything but a specialty transport mode. Planes running on hydrogen or biofuels are an expensive possibility, as are dirigibles filled with (non-renewable) helium, any of which could help us maintain vestiges of air travel. Paving and repairing roads without oil-based asphalt is possible, but will require an almost complete redesign of processes and equipment.

The good news is that if we do all these things, we can get to beyond zero carbon emissions; that is, with sequestration of carbon in soils and forests, we could actually reduce atmospheric carbon with each passing year.

Plans will look different in each country, so each country (and each state) needs one.

2. It’s not all about solar and wind

These two energy resources have been the subjects of most of the discussion surrounding the renewable energy transition. Prices are falling, rates of installation are high, and there is a large potential for further growth. But, with a small number of exceptions, hydropower continues to serve as the largest source of renewable electricity.

renewable-electricity-mix-2014

The inherent intermittency of wind and solar power will pose increasing challenges as percentage levels of penetration into overall energy markets increase. Other renewable energy sources—hydropower, geothermal, and biomass—can more readily supply controllable baseload power, but they have much less opportunity for growth.

Hopes for high levels of wind and solar are therefore largely driven by the assumption that industrial societies can and should maintain very high levels of energy use. If energy usage in the United States could be scaled back significantly (70 to 90 percent) then a reliable all-renewable energy regime becomes much easier to envision and cheaper to engineer—but the system would need to look very different. Solar and wind would serve as significant sources of electricity and with usage timed to its availability, but hydro, geothermal, and some biomass (when environmentally appropriate) would serve as baseload power.

3. We must begin pre-adapting to less energy

It is unclear how much energy will be available to society at the end of the transition: there are many variables (including rates of investment and the capabilities of renewable energy technology without fossil fuels to back them up and to power their manufacture, at least in the early stages). Nevertheless, given all the challenges involved, it would be prudent to assume that people in wealthy industrialized countries will have less energy (even taking into account efficiencies in power generation and energy usage) than they would otherwise have, assuming a continuation of historic growth trends.

This conclusion is hard to avoid when considering the speed and scale of reduction in emissions actually required to avert climate catastrophe. As climate scientist Kevin Anderson points out in a recent Nature Geoscience paper:

According to the IPCC’s Synthesis Report, no more than 1,000 billion tonnes (1,000 Gt) of CO2 can be emitted between 2011 and 2100 for a 66% chance (or better) of remaining below 2 °C of warming (over preindustrial times)… However, between 2011 and 2014 CO2 emissions from energy production alone amounted to about 140 Gt of CO2… [Subtracting realistic emissions budgets for deforestation and cement production,] …the remaining budget for energy-only emissions over the period 2015–2100, for a ‘likely’ chance of staying below 2 °C, is about 650 Gt of CO2.

That 650 gigatons of carbon amounts to less than 19 years of continued business-as-usual emissions from global fossil energy use. The notion that the world could make a complete transition to alternative energy sources, using only that six-year fossil energy budget, and without significant reduction in overall energy use, might be characterized as optimism on a scale that stretches credulity.

The “how much will we have?” question reflects an understandable concern to maintain current levels of comfort and convenience as we switch energy sources. But in this regard it is good to keep ecological footprint analysis in mind.

global-hectares-per-capita

According to the Global Footprint Network’s Living Planet Report 2014, the amount of productive land and sea available to each person on Earth in order to live in a way that’s ecologically sustainable is 1.7 global hectares. The current per capita ecological footprint in the United States is 6.8 global hectares. Asking whether renewable energy could enable Americans to maintain their current lifestyle is therefore equivalent to asking whether renewable energy can keep us living unsustainably. The clear answer is: only temporarily, if at all . . . so why attempt the impossible? We should aim for a sustainable level of energy and material consumption, which on average is significantly lower than at present.

Efforts to pre-adapt to shrinking energy supplies have understandably gotten a lot less attention from activists than campaigns to leave fossil fuels in the ground, or to promote renewable energy projects. But if we don’t give equal thought to this bundle of problems, we will eventually be caught short and there will be significant economic and political fallout.

So what should we do to prepare for energy reduction? Look to California: its economy has grown for the past several decades while its per capita electricity demand has not. The state encouraged cooperation between research institutions, manufacturers, utilities, and regulators to figure out how to keep demand from growing by changing the way electricity is used. This is not a complete solution, but it may be one of the top success stories in the energy transition so far, rivaling that of Germany’s Energiewende. It should be copied in every state and country.

4. Consumerism is a problem, not a solution

Current policy makers see increased buying and discarding of industrial products as a solution to the problem of stagnating economies. With nearly 70 percent of the United States economy tied to consumer spending, it is easy to see why consumption is encouraged. Historically, the form of social and economic order known as consumerism largely emerged as a response to industrial overproduction—one of the causes of the Great Depression—which in turn resulted from an abundant availability of cheap fossil energy. Before and especially after the Depression and World War II, the advertising and consumer credit industries grew dramatically as a means of stoking product purchases, and politicians of all political persuasions joined the chorus urging citizens to think of themselves as “consumers,” and to take their new job description to heart.

If the transition to renewable energy implies a reduction in overall energy availability, if mobility is diminished, and if many industrial processes involving high heat and the use of fossil fuels as feedstocks become more expensive or are curtailed, then conservation must assume a much higher priority than consumption in the dawning post-fossil-fuel era. If it becomes more difficult and costly to produce and distribute goods such as clothing, computers, and phones, then people will have to use these manufactured goods longer, and repurpose, remanufacture, and recycle them wherever possible. Rather than a consumer economy, this will be a conserver economy.

The switch from one set of priorities and incentives (consumerism) to the other (conservation) implies not just a major change in American culture but also a vast shift in both the economy and in government policy, with implications for nearly every industry. If this shift is to occur with a minimum of stress, it should be thought out ahead of time and guided with policy. We see little evidence of such planning currently, and it is not clear what governmental body would have the authority and capacity to undertake it. Nor do we yet see a culture shift powerful and broad-based enough to propel policy change.

The renewable economy will likely be slower and more local. Economic growth may reverse itself as per capita consumption shrinks; if we are to avert a financial crash (and perhaps a revolution as well) we may need a different economic organizing principle. In her recent book on climate change, This Changes Everything, Naomi Klein asks whether capitalism be preserved in the era of climate change; while it probably can (capitalism needs profit more than growth), that may not be a good idea because, in the absence of overall growth, profits for some will have to come at a cost to everyone else. And this is exactly what we have been seeing in the years since the financial crash of 2008.

US-family-wealth-1917-2014

The idea of a conserver economy has been around at least since the 1970s, and both the European degrowth movement and the leaders of the relatively new discipline of ecological economics have given it a lot of thought. Their insights deserve to be at the center of energy transition discussions.

5. Population growth makes everything harder

A discussion of population might seem off-topic. But if energy and materials (which represent embodied energy) are likely to be more scarce in the decades ahead of us, population growth will mean even less consumption per capita. And global population is indeed growing: on a net basis (births minus deaths) we are currently adding 82 million humans to the rolls each year, a larger number than at any time in the past, even if the rate of growth is slowing.

Population growth of the past century was enabled by factors—many of which trace back to the availability of abundant, cheap energy and the abundant, cheap food that it enabled—that may be reaching a point of diminishing returns. Policy makers face the decision now of whether to humanely reduce population by promoting family planning and by public persuasion—by raising the educational level of poor women around the world and giving women full control over their reproductive rights—or to let nature deal with overpopulation in unnecessarily brutal ways. For detailed recommendations regarding population matters, consult population organizations such as Population Institute and Population Media Center. Population is a climate issue.

6. Fossil fuels are too valuable to allocate solely by the market

Our analysis suggests that industrial societies will need to keep using fossil fuels for some applications until the very final stages of the energy transition—and possibly beyond, for non-energy purposes. Crucially, we will need to use fossil fuels (for the time being, anyway) for industrial processes and transportation needed to build and install renewable energy systems.We will also need to continue using fossil fuels in agriculture, manufacturing, and general transportation, until robust renewable energy-based technologies are available. This implies several problems.

As the best of our remaining fossil fuels are depleted, society will by necessity be extracting and burning ever lower-grade coal, oil, and natural gas. We see this trend already far advanced in the petroleum industry, where virtually all new production prospects involve tight oil, tar sands, ultra-heavy oil, deepwater oil, or Arctic oil—all of which entail high production costs and high environmental risk as compared to conventional oil found and produced during the 20thcentury. Burning these heavier, dirtier fuels will create ever more co-pollutants that have a disproportionate health impact and burden on low-income communities. The fact that the fossil fuel industry will require ever-increasing levels of investment per unit of energy yielded has a gloomy implication for the energy transition: society’s available capital will have to be directed toward the deteriorating fossil fuel sector to maintain current services, just as much more capital is also needed to fund the build-out of renewables. Seemingly the only way to avoid this trap would be to push the energy transition as quickly as possible, so that we aren’t stuck two or three decades from now still dependent on fossil fuels that, by then, will be requiring so much investment to find and extract that society may not be able to afford the transition project.

But there’s also a problem with accelerating the transition too much. Since we use fossil fuels to build the infrastructure for renewables, speeding up the transition could mean an overall increase in emissions—unless we reduce other current uses of fossil fuels. In other words, we may have to deprive some sectors of the economy of fossil fuels before adequate renewable substitutes are available, in order to fuel the transition without increasing overall greenhouse gas emissions. This would translate to a reduction in overall energy consumption and in the economic benefits of energy use (though money saved from conservation and efficiency would hopefully reduce the impact), and this would have to be done without producing a regressive impact on already vulnerable and economically disadvantaged communities.

We may be entering a period of fossil fuel triage. Rather than allocating fossil fuels simply on a market basis (those who pay for them get them), it may be fairer, especially to lower-income citizens, for government (with wartime powers) to allocate fuels purposefully based on the strategic importance of the societal sectors that depend on them, and on the relative ease and timeliness of transitioning those sectors to renewable substitutes. Agriculture, for example, might be deemed the highest priority for continued fossil fuel allocations, with commercial air travel assuming a far lower priority. Perhaps we need not just a price on carbon, but different prices for different uses. We see very little discussion of this prospect in the current energy policy literature. Further, few governments even currently acknowledge the need for a carbon budget. The political center of gravity, particularly in the United States, will have to shift significantly before decision makers can publicly acknowledge the need for fossil fuel triage.

As fossil fuels grow more costly to extract, there may be ever-greater temptation to use our available energy and investment capital merely to maintain existing consumption patterns (likely for the rich above all), and to put off the effort that the transition implies. If we do that, we will eventually reap the worst of all possible outcomes—climate chaos, a gutted economy, and no continuing wherewithal to build a bridge to a renewable energy future.

7. Equity within and between nations has to be addressed

The ability to harness energy creates wealth and confers social power. With the advent of fossil fuels came a rush of wealth and power such as the world had never before seen. Naturally, humanitarians saw this as an opportunity to spread wealth and power around so as to lift all of humanity above drudgery, eliminate hunger, and even put an end to war. And to a large degree that opportunity has been seized: overall, child mortality rates are down, life expectancy is up, infectious diseases are on the decline, hunger has been reduced (even as population has dramatically grown), andmortality from violence has declined since the end of World War II.

Yet globally, wealthy industrial nations have disproportionately benefitted from the fossil fuel revolution while poorer nations have disproportionately borne the costs. And a similar disparity also exists within nations, both rich and poor ones. Further, the injustice of energy wealth vs. energy poverty is increasingly magnified by climate impacts, which fall disproportionately upon energy poor societies—both because of geographical happenstance and because they do not have the same level of resources to devote toward adaptation.

Now we arrive at a crossroads, where the wealth-generating energy sources of the past two centuries (fossil fuels) must give way to different energy sources. While the decades ahead may see declining per capita energy consumption in the industrialized world, the transition to renewable energy does not automatically herald a more egalitarian future. Entrenched economic interests that benefited disproportionately during the fossil fuel era may seek to maintain their advantages as everyone else adjusts to lower consumption levels, attempting to ensure that their slice of a diminishing pie is left untouched. It is also possible that nations, and wealthy communities within nations, will build robust, largely self-contained renewable energy systems while everyone else continues to depend upon increasingly dysfunctional and expensive electricity grids that are increasingly starved of fuel. In either case, current levels of economic inequality could persist or worsen.

Pursuing the renewable energy transition without equity in mind would likely doom the entire project. Unless the interests of people at lower economic levels are taken into account and existing inequalities are reduced, the inevitable stresses accompanying this all-encompassing societal transformation could result in ever-deeper divisions both between and within nations, and lead to open conflict. On the other hand, if everyone is drawn into a visionary project that entails shared effort as well as shared gains, the result could be overwhelmingly beneficial for all of humanity. This is true, of course, not only for the renewable energy transition but also for our response to impacts of climate change that are by now unavoidable.

8. Everything is connected

Throughout the energy transition, great attention will have to be given to the interdependent linkages and supply chains connecting various sectors (communications, mining, and transport knit together most of what we do in industrial societies). Some links in supply chains will be hard to substitute, and chains can be brittle: a problem with even one link can imperil the entire chain. This is the modern manifestation of the old nursery rhyme, “for the want of a nail…the kingdom was lost.”

Consider, for example, the supply chain analysis for wind turbines.

materials-wind-turbine

The graphic above shows the various components, each with its own manufacturing sector somewhere in the world. Planning will need to take such interdependencies into account. As every ecologist knows, you can’t do just one thing.

9. This is not plug-and-play; it is civilization reboot

Energy transitions change everything. From a public relations standpoint, it may be helpful to give politicians or the general public the impression that life will go on as before while we unplug coal power plants and plug in solar panels, but the reality will probably be quite different. During historic energy transitions, economies and political systems underwent profound metamorphoses. There is no reason to suppose that it will be different this time around. If this is done right, the changes that must take place will bring with them opportunities for societal improvement and the greater wellbeing of everyone—including the rest of the biosphere.

*           *           *

For every answer David Fridley and I identified to the problem of how to power a modern industrial society with 100 percent renewable energy, it seemed that one or more questions popped up. For example, a massive deployment of electric cars would drastically reduce our dependence on oil—but how will we make electric cars without fossil fuels for plastics and tires? The high temperatures for industrial processes used to make glass and steel for those cars could be supplied by renewable electricity, but at what price? And how will we build and repair roads?

Studies showing an easy and affordable path to 100 percent renewable energy typically have an agenda with which we entirely concur: the transition away from fossil fuels and toward renewable energy must occur, whatever the roadblocks. Some of those roadblocks take the form of simple inertia: companies—indeed, whole societies—will invest in fundamental changes to their ways of doing business only when they have to, and most are quite comfortable with their current fossil-fuel-dependent processes, supply chains, and of course sunk costs.

Studies claiming that a transition to renewable energy will be easy and cost-free may allay fears and thus help speed the transition. However, sweeping actual difficulties under the carpet also delays confronting them. We need to start now to address the problems of energy demand adaptation, of balancing intermittency in energy supply from solar and wind, and of energy substitution in thousands of industrial processes. Those are big jobs, and ignoring them won’t make them go away.

If many of the unknowns in the renewable energy transition imply roadblocks and speed bumps, some could turn out to be opportunities, and we cheerfully acknowledge that many conundrums may be much more easily solved than currently appears likely. For example, it is conceivable that new technical advances could result in a zero-carbon cement that is cheaper to make than the current carbon-intensive variety. But that’s extremely unlikely to happen until serious attention is given to the problem.

At the end of the renewable energy transition, if it is successful, we will achieve savings in ongoing energy expenditures needed for each increment of economic production, and we may be rewarded with a quality of life that is acceptable and perhaps preferable over our current one (even though, for most Americans, material consumption will be scaled back from its current unsustainable level). We will get a much more stable climate than would otherwise be the case, along with greatly reduced health and environmental impacts from energy production activities.

But the transition will entail costs—in terms of money, regulation, and the requirement to change our behavior and expectations. And delay would be fatal.

Recommendations

Below are some suggestions geared specifically to environmental nonprofits and funders.

Environmental Organizations

  • Create social momentum to support a global powerdown, helping prepare society for an effort and a shift as huge as the Industrial Revolution. While the concern about providing opponents with ammunition is understandable, downplaying or ignoring the real implications of the energy transition may not only engender distrust, it might also waste an opportunity to provide people with a sense of agency.
  • Where key uses of fossil fuels are especially hard to substitute (aviation fuel, for example), argue for work-arounds (such as rail) or for the managed, gradual scaling down of those uses.
  • Explore how the transition could provide satisfying livelihoods and support thriving localized, steady state, circular economies. The Transition Network has already given considerable thought to this. Organizations of young organic farmers (like Greenhorns) and farmer training services (like the Agriculture and Land-Based Training Association), are only scratching the surface of what is needed. The Business Alliance for Local Living Economies is providing networking services for sustainable enterprises, but could perhaps provide more of a training function, if it were supported to do so.
  • Take a leadership role in initiating visionary projects to further the energy transition, then enlist communities to take those projects on, and to benefit from them. These could be renewable energy, local food, transport, import substitution, recycling, or energy efficiency projects—the possibilities are nearly endless.
  • In addition to resisting the dominance of fossil fuels, engage with communities to create persuasive models of how people can live and thrive with much reduced reliance on fossil fuels.
  • Advocate for a just transition to renewable energy that benefits all people and communities. If the NGO world doesn’t do this, who will? And without such advocacy, the energy transition could actually exacerbate existing inequity.

Philanthropy

The philanthropic sector inevitably exerts a very large influence over the priorities of nonprofit organizations that it funds. Funders should increasingly support:

  • Efforts to educate and inspire citizens about the energy transition.
  • Projects that involve development of new economic models that enable people to live with less energy, but in ways that bring greater life satisfaction.
  • Replicable models of community development that include taking charge of local energy production and reducing fossil fuel demand across many sectors.

Funders could also help the nonprofit community view the energy transition as a systemic transformation, one that only begins with shutting down coal power plants.

The technical coordination of the renewable transition is itself an enormous task, and currently nobody is handling it. It will likely require a global authority to determine how to direct the use of the world’s remaining burnable fossil fuels—whether toward the further growth of conventional manufacturing and transportation, or toward the build-out of renewable energy-based generation and consumption infrastructure. Only such an authority could globally prioritize and coordinate sectoral shifts (in agriculture, transport, manufacturing, and buildings) to reduce fossil fuel consumption as quickly as possible without reducing economic benefits in unacceptable ways.

But in the absence of such an international authority, the onus of this work will fall largely upon nonprofit environmental organizations and their funders, along with national and local governments.

One way or another, it’s time to make a plan—as comprehensive and detailed as we can manage—and run with it, revising it as we go. And to “sell” that plan, honestly but skillfully, to policy makers and our fellow citizens.

NRDC: Paris Climate Agreement Explained

Repost from the Natural Resources Defense Council

Paris Climate Agreement Explained

By Susan Casey-Lefkowitz, Director of Programs with Emily Cousins, December 12, 2015
Credit: Shun Kambe

How we’ll deliver on the promise of ambitious climate action.
The global community signed an historic agreement today at the Paris climate talks to tackle the threat of climate change and accelerate the shift to clean energy around the world. This is a momentous breakthrough. Nearly 200 countries have pledged to reduce their climate change pollution, strengthen their climate commitments every five years, protect people living on the front lines of climate impacts, and help developing nations expand their clean energy economies.

Most important, this agreement sets ambitious goals. It calls for holding global temperature rise to 1.5 degrees Celsius, with a first step of keeping us at no more than 2 degrees of warming.

Reaching the 2-degree target is essential to prevent catastrophic climate impacts, but scientists say it still leaves us open to dangerous levels of rising seas, food insecurity, and extreme drought. It would make the Marshall Islands and other island nations uninhabitable and expose countless vulnerable communities to deadly harm. Keeping the temperature rise at no more than 1.5 degrees will sustain these communities and create a brighter, more stable future for our children and grandchildren.

This is an ambitious goal, but the past two weeks in Paris confirm it is achievable.

In Paris, an action agenda emerged out of a groundswell of climate action from cities, regions, businesses, investors, trade unions, and many others. Mayors and governors described what they are already doing to reduce carbon pollution and how they plan to do more. Multinational corporations said they are cutting carbon pollution across their operations. Financial institutions reported that renewable energy is a better investment than fossil fuels. Leaders from developing nations explained that clean energy is helping to generate economic growth and bring people out of poverty. And thousands of people from all over the world stood up for climate action. This groundswell has the backs of our national leaders in implementing ambitious climate policies. This is what climate leadership looks like.

The low-carbon transition is already underway. Now the Paris agreement calls on us to return home, pick up the pace, and go faster into the clean energy future. And it gives us the tools to hold our government leaders accountable.

In China, that means building on the country’s commitment to implement a cap-and-trade program and increase non-fossil-fuel energy sources to 20 percent of total energy by 2030. In India, that means leapfrogging over dirty fossil fuels and using clean, renewable, and efficient energy to power its growth. Meeting the country’s solar mission alone will create 1 million jobs. India has already vowed to increase renewable energy sixfold by 2020 and to set mandatory efficiency standards for buildings by 2017.

The United States can also build on existing progress. All 50 states are on track to implement the Clean Power Plan for limiting carbon pollution from power plants; they need to focus on doing this through energy efficiency and an increase in wind and solar. We can continue to improve fuel efficiency standards and move to a combination of electric vehicles and smarter growth in transportation. Next up, we’ll work on getting existing oil and gas facilities to reduce their methane emissions and on the phase-out of fossil fuel development on federal lands and in federal waters. And U.S. businesses should continue not only to improve their own energy efficiency but to band together to advocate for stronger clean energy and climate policies.

This work won’t be easy. The Paris agreement — and our obligation to future generations — demands that nations transform how we think about electricity, transportation, industry, methane from fracking, HFCs from air conditioning, agriculture, and other contributors to climate change. It also requires helping developing countries face the challenges of poverty alleviation, energy equity, and climate justice. And here in the United States, it entails going up against entrenched fossil fuel interests and those politicians who persist in denying climate change.

These are significant hurdles, but citizens, businesses, and political leaders around the globe have made it clear that we support strong climate action. This momentum will carry us forward. And the Paris climate agreement and action agenda will provide the road map.

Irina Bokova, the director-general of UNESCO, said at an NRDC event last week, “When we speak about climate, we speak about humanity.” Our future is at stake here. For the human community to thrive, we need a stable climate. The Paris agreement and commitments will help ensure that our families, nations, and societies can flourish for generations to come.

Why cheap oil is the key to beating climate change

Repost from The Guardian

Why cheap oil is the key to beating climate change

Keeping the price of a barrel of crude at $75 or less will devastate the profitability of fossil fuel extraction – as the shelving of three tar sands projects demonstrates

By Mitchell Anderson, 11 December 2015 11.59 EST
‘If the Canadian tar sands investments that were halted this year stay dead, the world will avoid another 1.6tn tonnes of dangerous carbon emissions.’ Photograph: David Levene for the Guardian

As world leaders enter the home stretch of the Paris climate negotiations they should keep in mind a key measure of success in limiting carbon emissions: cheap oil. The lower the global price of oil, the more it stays in the ground – due to the brutal, if counterintuitive, logic of the petroleum marketplace.

Most of the easily extracted oil deposits are long gone. What’s left are high-cost, high-risk long shots such as the Alberta tar sandsdeep-water reservoirs off Brazil, and drilling the high Arctic. Companies hoping to profit from the last dregs of the petroleum age need to convince their investors to part with massive amounts of capital in hopes of competitive returns often decades down the road.

Billions have already fled the Alberta oil sands in the last year as the global price of oil collapsed from over $100 per barrel to below $40. Shell has just called a halt to its Carmon Creek project in Northern Alberta, writing off $2bn in booked assets and 418 million barrels of bitumen reserves. A barrel of bitumen will release about 480kg of carbon dioxide from extraction, refining, transport and combustion. This head office write-down means that 200m tonnes of carbon will not be released into the atmosphere.

Two other tar sands projects were also shelved this year with reserves of about 3bn barrels. If these investments stay dead the world will avoid another 1.6tn tonnes of dangerous carbon emissions. Together the cancellation of these three projects alone amount to the equivalent of taking more than 14m cars off the road for the next 25 years.

There a simple correlation between future emissions and the price of oil needed to make that profitable. Such a graph has been compiled by Carbon Tracker, a UK-based non-profit organisation set up to educate institutional investors on the increasing financial risks of the fossil fuel sector.

Its message to investors is simple: the world must limit additional emissions to below 900 gigatons to avoid potentially catastrophic climate consequences – and 40% of this future carbon budget – about 360 gigatons – is projected to come from the oil sector. Anything more than that must stay in the ground – the so-called unburnable carbon.

And what’s the price of oil that could save to world? Anything below $75 a barrel of Brent crude means that companies cannot profitably extract more than 360 gigatons of the world’s remaining reserves – no messy policy solutions required.

Just last year the price of Brent crude was about $110 a barrel, a price that would gainfully produce about 500 gigatons of carbon emissions by 2050. Now it is less than $50, which would only produce 180 gigatons over the same period. If prices stay where they are, the world will avoid some 320bn tonnes of carbon emissions by 2050 in precluded production from uneconomic oil fields.

To put this in perspective, that is 25 times larger than reductions the Kyoto protocol was supposed to achieve if it had worked (it didn’t), and 180 gigatons below the oil emissions limit scientists say we need to avoid a world with more than two degrees of warming. Economic turmoil aside, the global commodities market just served up massive progress on an issue in desperate need of some good news.

Carbon Tracker recently revised its calculations to include the turmoil in the oil market, but the basic correlation is the same: lower fossil fuel prices devastate the economics of future extraction.

Seen through this lens, a key measure of our success in controlling carbon emissions should be keeping commodity prices of fossil fuels low. And while the main driver of the current slump in prices is the current glut of supply, it’s important to realise that almost every policy intervention to avert climate disaster is directly or indirectly aimed at lowering the price or profitability of fossil fuels such as oil and coal.

Efficiency and conservation incentives reduce demand, as do vehicle emission standards and investing in public transit. Carbon pricing means that fossil fuel companies can no longer use the atmosphere as a free dumping ground for CO2, so also lowering profitability.

But doesn’t cheap gas mean that people just use more of it? Not really. While there is a weak economic link between declining prices and increasing consumption, key producers like Saudi Arabia are in fact fretting that slowing growth in Asian markets and already peaked demand in developed countries will lead to a long-term decline in the world’s appetite for oil.

I dearly hope that world leaders can somehow negotiate transformative change. But perhaps the best they can do is nudge economic indicators like crude prices in the right direction and get out of the way. The unstoppable forces of the global marketplace will hopefully do the rest.

400+ investors with more than $24 trillion support Paris climate agreement

Repost from Ceres – Mobilizing Business Leadership for a Sustainable World

Leading Investors and Businesses Back A Strong Paris Climate Agreement

By Christopher N. Fox

The UN climate conference now underway in Paris represents a critical opportunity to limit the risks of climate change and accelerate the shift to clean energy.  That’s why Ceres and leading investors and businesses are in Paris making the economic case for a strong global climate agreement. Together, we are focused on the dual objectives of addressing climate risks by ratcheting down reliance on high carbon resources, on the one hand, while simultaneously seizing the Clean Trillion opportunity tied to clean energy investment and transition, on the other.

Record investor and business support

As the Paris negotiations officially have kicked off, over 400 investors with more than $24 trillion in assets released a statement [see column at right] calling for an ambitious global agreement on climate change.  That’s the largest-ever group of investors calling for strong government action on climate change.  Investors are publicizing their clean energy investments through the Global Investor Coalition on Climate Change’s Low-Carbon Investment Registry, and announcing other actions they are taking on climate change through the new Investor Platform for Climate Actions.

In addition, more than 1,600 companies have signed Ceres’ Climate Declaration; 147 companies have signed the White House Act on Climate Business Pledge; six major U.S. banks released a statement calling for a strong climate deal; and the CEOs of 14 major food companies have launched a high profile climate pledge.  And thousands of businesses worldwide are joining forces with the We Mean Business Coalition in support of climate policy action.

Tackling climate change is a multi-trillion dollar opportunity

Combating climate change requires rapid, large-scale shifting from fossil fuels to clean energy.  This transition to clean energy is a multi-trillion dollar opportunity.  To limit warming to below two degrees Celsius – a key goal of the Paris climate talks – the International Energy Agency estimates the world needs to invest an additional $40 trillion in clean energy by 2050.  That’s slightly more than an additional $1 trillion invested in clean energy – a “Clean Trillion” – per year for the next 35 years.

The Paris climate talks are catalyzing important momentum toward the Clean Trillion goal.  The national climate plans that almost every nation in the world has submitted to the UN can spur $13.5 trillion in investment in energy efficiency and low-carbon technologies between 2015 and 2030, according to a recent IEA analysis.

Much more action needed after Paris

A strong Paris climate agreement will accelerate the transition to clean energy, but much more action will be needed in the years ahead to limit warming to below two degrees Celsius.  In the months after Paris, the most important single step that the U.S. can take to lead on climate change is to implement the EPA Clean Power Plan, the first-ever nationwide limits on carbon pollution from electric power plants.  This US plan for boosting electric sector clean energy transition is a critically important step for the climate and the economy, as recognized by leading voices in the business community — more than 365 companies and investors announced their support for the plan in a July 2015 lettercoordinated by Ceres.

As aptly noted by Letitia Webster, senior director of global sustainability at VF Corporation, a North Carolina-based apparel company whose brands include The North Face, Timberland and Reef, “The Clean Power Plan will enable us to continue to invest in clean energy solutions and further advance our greenhouse gas reduction goals.”

And as Mars, Inc. Global Sustainability Director Kevin Rabinovitch points out, “It’s going to take action from all of us … For businesses like Mars, that means delivering on efficiency and renewable energy; for the EPA and state governors, that means developing and delivering against initiatives like the Clean Power Plan.”

Both VF Corporation and Mars are represented as part of the delegation of business and investor leaders that Ceres is bringing to the Paris climate talks to support strong climate policy action. By backing a strong Paris climate agreement and the EPA Clean Power Plan, leading investors and businesses are making a smart business decision.  They are supporting policies that will expand investment in the clean energy technologies that the world needs to stabilize the climate and promote a sustainable economy and world.

To learn more about Ceres plans for COP21 in Paris, and what actions leading investor and business leaders have been taking on the road through Paris click here.

Repost from Investor Platform for Climate Actions

Global Investor Statement on Climate Change - groupsGLOBAL INVESTOR STATEMENT ON CLIMATE CHANGE

This statement is signed by 404 investors representing more than US $24 trillion in assets.

We, the institutional investors that are signatories to this Statement, are acutely aware of the risks climate change presents to our investments. In addition, we recognise that significant capital will be needed to finance the transition to a low carbon economy and to enable society to adapt to the physical impacts of climate change.

We are particularly concerned that gaps, weaknesses and delays in climate change and clean energy policies will increase the risks to our investments as a result of the physical impacts of climate change, and will increase the likelihood that more radical policy measures will be required to reduce greenhouse gas emissions. In turn, this could jeopardise the investments and retirement savings of millions of citizens.

There is a significant gap between the amount of capital that will be required to finance the transition to a low carbon and climate resilient economy and the amount currently being invested. For example, while current investments in clean energy alone are approximately $250 billion per year, the International Energy Agency has estimated that limiting the increase in global temperature to two degrees Celsius above preindustrial levels requires average additional investments in clean energy of at least $1 trillion per year between now and 2050.

This Statement sets out the contribution that we as investors can make to increasing low carbon and climate resilient investments. It offers practical proposals on how our contribution may be accelerated and increased through appropriate government action.

Stronger political leadership and more ambitious policies are needed in order for us to scale up our investments. We believe that well designed and implemented policies would encourage us to invest significantly more in areas such as renewable energy, energy efficiency, sustainable land use and climate resilient development, thereby benefitting our clients and beneficiaries, and society as a whole.

HOW WE CAN CONTRIBUTE

As institutional investors and consistent with our fiduciary duty to our beneficiaries, we will:

Work with policy makers to support and inform their efforts to develop and implement policy measures that encourage capital deployment at scale to finance the transition to a low carbon economy and encourage investment in climate change adaptation.

Identify and evaluate low carbon investment opportunities that meet our investment criteria and consider investment vehicles that invest in low carbon assets subject to our risk and return objectives.

Develop our capacity to assess the risks and opportunities presented by climate change and climate policy to our investment portfolios, and integrate, where appropriate, this information into our investment decisions.

Work with the companies in which we invest to ensure that they are minimising and disclosing the risks and maximising the opportunities presented by climate change and climate policy.

Continue to report on the actions we have taken and the progress we have made in addressing climate risk and investing in areas such as renewable energy, energy efficiency and climate change adaptation.

SCALING UP INVESTMENT: THE NEED FOR POLICY ACTION

We call on governments to develop an ambitious global agreement on climate change by the end of 2015. This would give investors the confidence to support and accelerate the investments in low carbon technologies, in energy efficiency and in climate change adaptation.

Ultimately, in order to deliver real changes in investment flows, international policy commitments need to be implemented into national laws and regulations. These policies must provide appropriate incentives to invest, be of adequate duration to improve certainty to investors in long-term infrastructure investments and avoid retroactive impact on existing investments. We, therefore, call on governments to:

Provide stable, reliable and economically meaningful carbon pricing that helps redirect investment commensurate with the scale of the climate change challenge.

Strengthen regulatory support for energy efficiency and renewable energy, where this is needed to facilitate deployment.

Support innovation in and deployment of low carbon technologies, including financing clean energy research and development.

Develop plans to phase out subsidies for fossil fuels.

Ensure that national adaptation strategies are structured to deliver investment.

Consider the effect of unintended constraints from financial regulations on investments in low carbon technologies and in climate resilience.


ABOUT UNEP FI – UNEP FI is a global partnership between UNEP and the financial sector. Over 200 institutions, including banks, insurers and fund managers, work with UNEP to understand the impacts of environmental and social considerations on financial performance. Through its Climate Change Advisory Group (CCAG), UNEP FI aims to understand the roles, potentials and needs of the finance sector in addressing climate change, and to advance the integration of climate change factors – both risks and opportunities – into financial decision-making. Visit www.unepfi.org.

ABOUT IIGCC – The Institutional Investors Group on Climate Change (IIGCC) is a forum for collaboration on climate change for investors. IIGCC’s network includes over 90 members, with some of the largest pension funds and asset managers in Europe, representing €7.5trillion in assets. IIGCC’s mission is to provide investors a common voice to encourage public policies, investment practices and corporate behaviour which address long-term risks and opportunities associated with climate change. Visit www.iigcc.org.

ABOUT INCR – The Investor Network on Climate Risk (INCR) is a North Americafocused network of institutional investors dedicated to addressing the financial risks and investment opportunities posed by climate change and other sustainability challenges. INCR currently has more than 100 members representing over $13 trillion in assets. INCR is a project of Ceres, a nonprofit advocate for sustainability leadership that mobilises investors, companies and public interest groups to accelerate and expand the adoption of sustainable business practices and solutions to build a healthy global economy. Visit www.ceres.org.

ABOUT IGCC – IGCC is a collaboration of 52 Australian and New Zealand institutional investors and advisors, managing approximately $1 trillion and focussing on the impact that climate change has on the financial value of investments. The IGCC aims to encourage government policies and investment practices that address the risks and opportunities of climate change, for the ultimate benefit of superannuants and unit holders. Visit www.igcc.org.au.

ABOUT AIGCC – The Asia Investor Group on Climate Change (AIGCC) is an initiative set up by the Association for Sustainable and Responsible Investment in Asia (ASrIA) to create awareness among Asia’s asset owners and financial institutions about the risks and opportunities associated with climate change and low carbon investing. AIGCC provides capacity for investors to share best practice and to collaborate on investment activity, credit analysis, risk management, engagement and policy. With a strong international profile and significant network, including pension, sovereign wealth funds insurance companies and fund managers, AIGCC represents the Asian voice in the evolving global discussions on climate change and the transition to a greener economy. Visit http://aigcc.asria.org/.

ABOUT PRI – The United Nations-supported Principles for Responsible Investment (PRI) Initiative is an international network of investors working together to put the six Principles for Responsible Investment into practice. Its goal is to understand the implications of Environmental, Social and Governance issues (ESG) for investors and support signatories to incorporate these issues into their investment decision making and ownership practices. In implementing the Principles, signatories contribute to the development of a more sustainable global financial system. Visit www.unpri.org.


ACKNOWLEDGMENTS
The sponsoring organisations thank CDP for its support of the statement. CDP is an international, not-for-profit organisation providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information (www.cdp.net).

THIS STATEMENT WAS LAUNCHED IN SEPTEMBER 2014.


SIGNATORIES

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