For years, the EU Emissions Trading System (EU ETS), the EU’s flagship policy to tackle global warming, was considered a flop. Brussels had distributed too many free emission allowances, which kept the price per ton of emissions low. But since 2018 permit prices have soared upward: and the result is forcing coal out of the energy market. Paul Hockenos reports.
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Restoring Africa’s damaged ecosystems is central to a just transition
Africa’s contribution to the global share of the carbon pollution that is destabilising Earth’s climate is relatively small. A just transition for the continent needs, therefore, to lean towards adapting to an unstable climate, ahead of aggressive mitigation efforts. A case study from South Africa shows how a Green New Deal-approach could help restore damaged ecosystems, buffer communities against climate shocks, and boost job opportunities in a country with high unemployment. Leonie Joubert reports.
Global Decarbonization after Covid-19: Strategic Options for Kazakhstan
In addition to other profound impacts, the corona virus has offered global energy markets an unprecedented natural experiment. Collapsing demand for conventional energy fuels and inelastic supply responses have depressed oil prices that are now being incorporated into forward energy planning. This adverse investment accelerator effect is now expected to bring forward the so-called “peak oil” milestone, significantly shortening the profitable lifecycle of known oil reserves.[1] Thus a global health crisis has given us only a foretaste of what we can expect over a longer time horizon, as climate risk continues a slower but more inexorable ascent. Simply put, the rising social cost of carbon will exert the same effect on conventional energy demand, compounded by the emergence of ever more affordable renewable substitutes. Furthermore, the international push for a ‘green recovery‘ in the aftermath of the pandemic is perceived to hasten the end of the oil era. Oyuna Baldakova and David Roland-Holst report
Carbon pricing in Latin America: far from being an effective instrument
To face social and environmental problems generated by fossil energies, market-based solutions have emerged to tackle these challenges on a broader scale. These proposals are often also framed as a “green” approach to economic growth. They include e.g. regulatory disincentives for emitting CO2 through a form of carbon pricing or more specifically, emissions trading systems (ETS) and carbon taxes. Although their rationale sounds adequate, their design and implementation are flawed from different points of views and subsequently result in a minimal decrease of CO2 emissions. The following analysis will focus on the main causes of this (political) deficiency with a focus on Latin America. Maximiliano Proaño has the details.
Fracked by his words: Biden walks a fine line on fossil gas
Climate change and the energy transition have become driving themes of the U.S. presidential race. Stable genius Trump still doubts the science. The POTUS proudly boasts that by unleashing fracking, he’s made America great again –turning it into the world’s largest oil and gas producer. His challenger, former vice president Joe Biden, has made the greening of America’s economy central to his Covid-19 economic recovery plan. Biden intends to lead an “energy revolution” aimed at achieving 100% clean electricity by 2035 while cutting U.S. emissions to net zero no later than 2050. Center to the fight is the future of fracking. Biden’s been forced to walk a tight rope between progressive Bernie Sanders supporters who want to ban it, powerful party insiders who still profit from it, and moderate swing voters economically dependent on it. As usual, Trump is exploiting these divisions as he desperately clings to power. Lead blogger L. Michael Buchsbaum takes us through.
The Hydra has many heads: ExxonMobil perversely profits from climate change
Months after global prices collapsed, oil and gas behemoth Exxon Mobil is facing unprecedented losses. While publicly struggling to adjust to new realities, behind the scenes Exxon is coopting messaging around climate change to steer lucrative tax subsidies towards expanding dubious carbon capture and sequestration (CCS) projects that will only help them produce more oil and gas. Worse, as Covid-ravaged Americans cued their cars into miles long food lines, Trump ensured relief funds went not to them, but to Exxon instead. In the same way that Big Oil didn’t become ubiquitous gently, they will not go gently into their good nights either. L. Michael Buchsbaum reviews how one of the largest global carbon polluters is using Covid-19 and climate change to enrich itself.
China: The Emperor’s New Clothes are “Carbon-Neutral”
On September 22 China’s President Xi has delivered the country’s new pledge to reach peak carbon emissions earlier than 2030 and carbon neutrality by 2060 to the UN General Assembly. If pursued, this pledge marks a fundamental shift in China’s global climate ambitions and will have profound long-term impact on the global economy and energy markets. How sustainable will this impact be for the globe? Well, it all depends. Maria Pastukhova has the details.
Back but Different: Covid-19 Has Transformed the Global Climate Movement
As inspiring as it is to see Fridays for Future on the streets again, its enforced downtime during the pandemic has wrought changes in the climate movement, in Germany and beyond. Can it bounce back to have the global presence it had in 2019? And if so, how does it intend to make its voice count in the new context? Paul Hockenos has the story.
Ukraine: The European Green Deal and the drive against corruption
Municipalities and civil society have to be involved in the process of defining NECP targets
These days, the cancellation of ceremonies and handshakes between high-level officials is usually explained with the COVID-19 pandemic. However, what does it tell us when Vice President of the European Commission Josep Borrell, in his recent visit to Ukraine, meets with anti-corruption activists before getting together with officials? Are we witnessing the onset of a new kind of morally dignified political hygiene? Oleg Savitsky has the details.
Corona Crisis Presents Window to Decarbonize Global Trade
Global trade has been a notorious difficult sector to sign up for decarbonization. The crux of the problem is that its business is crossborder, and thus skirts the emissions reduction plans of individual national states. Much of it thus gets a free ride. Paul Hockenos reports