Democrats abandoning Obama on global warming

Only 50% of Democratic voters in the U.S. agree with President Obama’s belief that humans are responsible for global warming, according to a new poll from Pew Research Center released today. This figure is down from the 58% average among Democrats in the last three years of the Bush Administration, and represents the first time that a majority of Democrats have not endorsed the man-made theory of global warming.

Independent voters in the U.S., meanwhile, have stopped blaming humans for global warming in even greater numbers. Only 33% now blame us. Last year, independents believed humans were to blame at the same 50% level that Democrats are now at. Republicans are also abandoning the “blame human” stance, dropping from 27% last year to 18% this year.

Among all Americans, only 36% blame humans, the lowest figure yet. Last year, 47% blamed humans.

For the full Pew poll, see here

LawrenceSolomon@nextcity.com
Lawrence Solomon is executive director of Energy Probe and
Urban Renaissance Institute and author of
The
Deniers: The world-renowned scientists who stood up against global warming
hysteria, political persecution, and fraud
.
 

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Fewer Americans See Solid Evidence of Global Warming

The Pew Research Center

October 22, 2009

Survey Also Shows Modest Support for “Cap and Trade” Policy

There has been a sharp decline over the past year in the percentage of Americans who say there is solid evidence that global temperatures are rising. And fewer also see global warming as a very serious problem – 35% say that today, down from 44% in April 2008.

The latest national survey by the Pew Research Center for the People & the Press, conducted Sept. 30-Oct. 4 among 1,500 adults reached on cell phones and landlines, finds that 57% think there is solid evidence that the average temperature on earth has been getting warmer over the past few decades. In April 2008, 71% said there was solid evidence of rising global temperatures.

Over the same period, there has been a comparable decline in the proportion of Americans who say global temperatures are rising as a result of human activity, such as burning fossil fuels. Just 36% say that currently, down from 47% last year.

The decline in the belief in solid evidence of global warming has come across the political spectrum, but has been particularly pronounced among independents. Just 53% of independents now see solid evidence of global warming, compared with 75% who did so in April 2008. Republicans, who already were highly skeptical of the evidence of global warming, have become even more so: just 35% of Republicans now see solid evidence of rising global temperatures, down from 49% in 2008 and 62% in 2007. Fewer Democrats also express this view – 75% today compared with 83% last year.

Despite the growing public skepticism about global warming, the survey finds more support than opposition for a policy to set limits on carbon emissions. Half of Americans favor setting limits on carbon emissions and making companies pay for their emissions, even if this may lead to higher energy prices; 39% oppose imposing limits on carbon emissions under these circumstances.

This issue has not registered widely with the public. Just 14% say they have heard a lot about the so-called “cap and trade” policy that would set carbon dioxide emissions limits; another 30% say they have heard a little about the policy, while a majority (55%) has heard nothing at all.

The small minority that has heard a lot about the issue opposes carbon emissions limits by two-to-one (64% to 32%). More Republicans (20%) and independents (17%) than Democrats (8%) have heard a lot about cap and trade. Among the much larger group that has heard little or nothing about the issue, most support it (58% little, 50% nothing).

With less than two months before the United Nations Climate Change Conference in Copenhagen, a majority (56%) of Americans think the United States should join other countries in setting standards to address global climate change while 32% say that the United States should set its own standards.

Shifts on Global Warming

Opinions about global warming changed little between 2006 and 2008. In August 2006 and January 2007, 77% said there was solid evidence that the earth’s temperatures were increasing; that figure fell modestly to 71% in April of last year.

Among those who saw solid evidence of global warming, most said it was largely caused by human activity, such as burning fossil fuels; in all three of those surveys, 47% of the public expressed this view. Far smaller percentages – including just 18% in 2008 – said it was mostly caused because of natural environmental patterns.

Currently, 57% say there is solid evidence of rising global temperatures, while 33% say there is no solid evidence. Fewer than four-in-ten (36%) now say global warming is mostly caused by human activity such as burning fossil fuels, while 16% say it is occurring mostly because of natural environmental patterns.


A majority (53%) of independents say there is solid evidence of warming, including 33% who say it is mostly caused by human activity. But this is far lower than in April 2008 when 75% said global warming was happen

ing and 50% said it was due to human activity.

The proportion of Republicans saying there is solid evidence of global warming declined from 62% in 2007 to 49% in 2008. The balance of opinion among Republicans has shifted, with a majority (57%) now saying there is no hard evidence of global warming. The drop among moderate and liberal Republicans has been particularly steep; 41% now say there is solid evidence of global warming, compared with 69% last year. The decline among conservative Republicans has been more modest (from 43% to 32%).

There has been less change in opinions among Democrats. Three-quarters of Democrats (75%) say there is solid evidence the earth is warming, including 50% who say that it is mostly because of human activity. In April 2008, 83% of Democrats said the earth is warming and 58% attributed it to human actions. More liberal Democrats than conservative and moderate Democrats say the earth is warming (83% vs. 72%), and far more liberal Democrats say that global warming is caused by human activity (69% vs. 43%).
There also are strong regional differences in opinions about global warming; fewer people living in the Mountain West (44%) and the Midwest (48%) say there is solid evidence of warming than in other regions. Similarly, there have been sharp declines since April 2008 in the proportion who say the earth is warming in the Mountain West (75% to 44%) and the Great Lakes region (69% to 49%). Both regions have also seen large drops in the percentage who say that warming is caused by human activity. (For a breakdown of states and regions, see About the Survey, pg. 10.)

Fewer See Warming as Very Serious Problem

A majority (65%) of the public continues to view global warming as a very (35%) or somewhat (30%) serious problem. But in April 2008, 73% expressed this view, including 44% who thought it was a very serious problem. About a third (32%) says global warming is not too serious (15%) or not a problem at all (17%). Last year, 24% said it was little or no problem. From 2006 to 2008, these numbers had been quite stable.

Partisan differences also are evident on evaluations of the seriousness of global warming. About half (49%) of Democrats say global warming is a very serious problem, down from 57% in April 2008. Far fewer conservative and moderate Democrats say global warming is a serious problem than did so last year, widening the gap between them and liberal Democrats. Currently, 39% of conservative and moderate Democrats say it is a very serious problem compared with 70% of liberal Democrats. A third of independents now say global warming is a very serious problem, a decline of 13 points from last year.

Only 14% of Republicans say that global warming is a very serious problem, down from 22% in April 2008. Just 20% of moderate and liberal Republicans now say that global warming is a very serious problem, down from 35% last year. Only 10% of conservative Republicans now say global warming is a very serious problem.


People living in the Midwest (30%) and the Mountain West (26%) are the least likely to view global warming as a very serious problem. There have been modest declines across regions, but they are particularly steep in the West (52% April 2008 to 36% now)

Young people are now far more likely than older Americans to view global warming as a very serious problem. Across all age groups, except those younger than 30, the percent who think warming is a very serious problem has declined since April 2008.

As expected, views about the seriousness of global warming are also related to whether people think there is solid evidence the earth is warming and whether it is human caused. A third of those who do not think there is solid evidence of global warming say it is a very or somewhat serious problem while 65% say it is not too serious or not a problem at all.

By comparison 65% of those who say that the warming is mostly caused by natural patterns in the earth’s environment say global warming is at least a somewhat serious problem. Nearly all (97%) who think the earth is warming mostly because of human activity say it is a problem. These numbers are largely unchanged from April 2008.

In January 2009, global warming ranked at the bottom of the public’s list of policy priorities for the president and Congress this year. Only 30% of the public said it should be a top priority, down from 35% a year ago. More than twice as many Democrats (45%) as Republicans (16%) rank global warming as a top priority, along with 25% independents. Global warming is the lowest-rated priority for both independents and Republicans and ranks sixteenth for Democrats among 20 issues. (Economy, Jobs Trump All Other Policy Priorities in 2009 Jan. 22).

Cap and Trade Barely Registers

As the health care debate has dominated the public’s attention, awareness about cap and trade legislation is quite low. A majority (55%) of the public has heard nothing at all about the cap and trade policy being considered by the president and Congress that would set limits on carbon dioxide emissions. Only 14% have heard a lot and 30% a little about this policy.

More Republicans (20%) and independents (17%) than Democrats (8%) have heard a lot about cap and trade although more Democrats have heard a little. Conservative Republicans are hearing the most; more than a quarter have heard a lot (28%) about the policy.

More people who say there is no solid evidence of global warming have heard a lot about cap and trade than those who think temperatures are rising (24% vs. 10%). But more of those who say that warming is caused mostly by human activity have heard a little about the proposed policy than those who say there is no evidence of warming (36% vs. 27%).

The most recent survey of the public’s knowledge by the Pew Research Center, released Oct. 14, found that just 23% of the public could correctly identify that the cap and trade legislation being discussed in Congress deals with energy and the environment; 48% were unsure and 29% said incorrectly that it deals with health care, banking reform or unemployment. More Republicans (27%) and independents (29%) correctly identify cap and trade as dealing with energy and the environment than Democrats (15%). (See Well Known: Public Option, Sonia Sotomayor; Little Known: Cap and Trade, Max Baucus).

Carbon Emissions Limits Favored

Half of the public favors setting limits on carbon dioxide emissions and making companies pay for their emissions, even if it may mean higher energy prices. About four-in-ten (39%) oppose this and 11% are unsure or do not offer an opinion.

Conservative Republicans are the only political group in which a majority (60%) opposes setting limits on carbon dioxide emissions. Most moderate and liberal Republicans (51%) favor this policy, as do an identical percentage of independents and a majority of Democrats (58%).

There also are wide regional differences in opinions about cap and trade. More people living near the Pacific coast (62%) and the Northeast (56%) favor limiting carbon emissions, even if it may mean higher energy prices than those living in the South (46%), Midwest (44%) and Mountain West (42%). More college graduates favor this policy than those with a high school education or less (59% vs. 43%), but there are very few differences by age.

Opinion about cap and trade is related to views about global warming. About three-fourths (74%) of those who think the earth is warming and it is mostly caused by human activity favor cap and trade legislation. By comparison, 41% of those who say warming is due to natural patterns in the earth’s environment favor limiting carbon emissions. But even 31% of those who say there is no solid evidence of rising temperatures favor cap and trade.

Public Supports Global Initiatives

A majority (56%) of Americans thinks the United States should join other countries in setting standards to address global climate change while 32% say the U.S. should set its own standards; 5% say neither and 6% are unsure. These numbers are similar to those in 2001 and 1997 when the public was asked about setting standards to improve the global environment.

More Democrats (66%) than independents (53%) or Republicans (47%) say the U.S. should join other countries in setting standards to address global climate change. Three-quarters of those who say the earth is warming mostly because of human activity think the U.S. should join with other countries in setting standards to address global climate change. By comparison, 51% of those who say warming is due to natural patterns in the earth’s environment and 42% who say the earth is not warming think the U.S. should join other countries in setting standards to address climate change.

About the Survey

Results for this survey are based on telephone interviews conducted under the direction of Abt/SRBI Inc. among a nationwide sample of 1,500 adults, 18 years of age or older, from September 30-October 4, 2009 (1125 respondents were interviewed on a landline telephone, and 375 were interviewed on a cell phone, including 141 who had no landline telephone). Both the landline and cell phone samples were provided by Survey Sampling International. Interviews were conducted in English.

The combined landline and cell phone sample are weighted using an iterative technique that matches gender, age, education, race/ethnicity, region, and population density to parameters from the March 2008 Census Bureau’s Current Population Survey. The sample is also weighted to match current patterns of telephone status and relative usage of landline and cell phones (for those with both), based on extrapolations from the 2008 National Health Interview Survey. The weighting procedure also accounts for the fact that respondents with both landline and cell phones have a greater probability of being included in the combined sample and adjusts for household size within the landline sample.

The following table shows the error attributable to sampling that would be expected at the 95% level of confidence for different groups in the survey:

In addition to sampling error, one should bear in mind that question wording and practical difficulties in conducting surveys can introduce error or bias into the findings of opinion polls.

For the regional analysis used in this report, states were grouped into smaller subregions or divisions as follows:

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Aldyen Donnelly: How to make economies based on renewable energy work

The data appearing under "key findings" heading for the RWI study, “Economic impacts from the promotion of renewable energies: The German Experience,” study look generally correct to me, but I do not completely agree with the study’s conclusions.  After looking at Germany, the authors have pretty much written off renewable energy mandates altogether. 

I think it is worth it to look at all of Germany, Denmark, Spain, Texas, Connecticut, Massachusetts and California. All 6 jurisdictions have had renewable energy mandates for a decade of more—Spain since 1985 and Connecticut since 1991. I think any reasonably analysts will find the German, Danish and Californian experiences have been pure disasters, while the Spanish, Texas, Connecticut and Massachusetts experiences are, in my view, success stories.

What I find most interesting is that at first glance, Germany and Spain had very similar renewable energy policy regulations from 1995 through 2006. They both implemented renewable electricity mandates and feed-in tariffs. But by the end of 2006, Spain achieved a more significant shift to renewables (on a per capita basis, the largest shift in Europe) at retail electricity prices for residential consumers that are roughly half Germany’s. And, also on a per capita basis, Spanish clean energy technology and services exports exceed Germany’s.

Spain hit a bit of a wall in renewable supply progress in 2006,as did Denmark, and made the mistake of adopting new German-style feed-in tariffs in 2007. The Spanish fell for the hype suggesting that the German feed-in tariff was so successful. However, the substitution of the German-style feed-in tariff in Spain has had disastrous outcomes. In May 2008 (before the global recession hit), Spain retroactively reversed their decision to adopt German-style feed-in tariffs. 

But the 1.5 years since the German-style policy was implemented—and then the market disruption of the policy reversal—followed by the global recession threw the Spanish energy market into a tailspin from which it has not yet recovered.

But what you really want to examine is the pre-2007 Spanish policies and regulations, because they were very, very good.

The Lessons from the German, US State and Spanish Experiences

The bottom line is that we must have a legally-binding Renewable Energy Standard ("RES")—a regulation, not just a BC Hydro policy. Renewable Energy Credits ("RECs") can be banked and traded under an RES. Under the mandate, the obligated party must be the electricity retailer, and the retailer must achieve binding annual % renewable supply targets relative to their total sales (not generation), including sales of imported power. When we account for power imports, for example, BC Hydro’s total GHGs were over 9 million TCO2e in 2007, not just the 800,000 TCO2e discharged from Hydro’s own operations.

After we put an RES into law, we may or may not want to entertain feed-in tariffs. (Spain has both an RES and feed-in tariffs.) But the experiences of other jurisdictions clearly indicate that  implementing feed-in tariffs without the context of a legally binding RES usually results in high prices, job losses and failure to meet renewable energy supply expectations. 

Each region has to determine, once they legislate an RES, whether or not they should also implement feed-in tariffs, but it is a mistake to implement feed-in tariffs without having first promulgated an RES with REC trading. Connecticut’s, Massachusetts’s and Texas’s RESs could not be more different, but all three have been very successful without feed-in tariffs. 

The key to those states’ success is the design of the bankable, tradable Renewable Energy Credit ("REC") market rules that are part of the RES design. Both Massachusetts and Texas ruled, some years ago, that SO2, NOx and CO2 attributes can be stripped from surplus RECs and those pollution credit attributes could be applied towards compliance with long-standing local NOx and SO2 limits. This creation of a back-up market for surplus RECs has been critical to the smooth execution of those states’ renewable energy agenda.

Having said that, Texas is now considering implementation of feed-in tariffs. I am okay with that, but think that they would be better off to first try extending the banking period for RECs.

When it comes to feed-in tariff design, you want the original Spanish design, not the German design.  I attach a little study that compares the two so you can see the difference. This study was written by a feed-in tariff advocate and it fails to identify the role that Spain’s very well-designed RES (and Germany’s absence of RES until recently) played in the differences between the nations’ relative performance. And the author does not appear to believe that the large difference between German and Spanish prices is relevant. But she accurately outlines the differences between the feed-in tariffs.

That the Spanish feed-in tariff design is superior will appear counterintuitive to you, a renewable power producer representative. Remember, when you are reading about the tariff, that the Spanish tariff exists in the context of a strong, long-established (since 1985) Renewable Energy Standard. It is the combination of RES and this feed-in tariff that works—a fact that is not entirely respected by the feed-in tariff proponent author of the study.

Another element that is common to the Spanish, Connecticut and Massachusetts success stories that does not appear in Germany or California is that the state maintains a strong role in transmission system design and financing in the former and not in the latter. In the cases I deem "success stories", the transmission system operator participates in an ongoing process of mapping renewable resources and district heating opportunities. 

Official transmission system maps were created showing existing capacity and proposed capacity identified by priority (A, B or C) where the priority is based on the best current assessment of new capacity to liberate renewable resources. This transparent transmission mapping/planning process encourages but does not oblige renewable energy project developers to align their development plans with the transmission capacity expansion plan. This planning process increases the likelihood that least cost renewable options will be developed first.

By comparison, the German feed-in tariff system compels electricity retailers to respond to renewable power supply proposals with highest priority going to the proposals that demand the most expensive new transmission investments. And the German system is far from transparent, largely because all transmission is privately owned and operated and not fully regulated.

Unfortunately, Ontario’s feed-in tariff regime mirrors Germany’s and not Spain’s. Ontario will regret failing to start off by promulgating a legally-binding RES with REC banking and trading. Nova Scotia, by comparison, appears to be getting policies and regulations down in the correct order.

District Heating

All European experiences show us that we need to commit to district/community heating systems ("DH") as well as new transmission planning processes to achieve our GHG reduction goals at least cost. Complimentary DH systems are critical to the cost-effective operation of low impact renewable power supply. In this context, it is important that we start to think of DH as hot water (as opposed to steam) transmission supply systems.

Europeans have found that they do not have to totally abandon aged power and industrial combustion units. Older combustion units have proved to be cost-effective generators of hot water for direct use and to heat space. Plants that discharged 1.2 TCO2e/MWh burning coal to generate electricity might discharge as little as 0.45 to 0.75 TCO2e/MWh-equivalent burning 70% coal and 30% wood pellets to generate hot water for the DH network (where 10,000 lbs of steam is enough heat to displace 1 MWh of electricity or natural gas demand to heat space and/or water). 

DH systems are displacing in-building natural gas and electricity demand at retail rates under CAD$0.10/kWh, which makes tolerating high electricity rates somewhat more tolerable for families and small business. More importantly, regional commitments to DH create new revenue opportunities for industry while lowering industrial water treatment costs (hot water goes from plants to homes, cool water is recycled back to the industrial sources from homes).

In Canada, when we say "District Heat" most of us think only about generating and transmitting steam. Steam-based DH is great, but we need to start thinking about transmitting hot water over relatively short distances (55 km and less) to achieve least cost DH space heating market penetration over 50% in most Canadian cities.

Water-based (as opposed to steam) DH systems are like large networks of little dams.  Having DH in place enables us to maximize returns on home-based solar and PV and our wind power resources in a way that is not possible in the absence of DH or proximate large hydro capacity.

GHGs and Comparisons of National Performance

National GHG emissions are a function of population, per capita energy, building product and food demand, and the carbon intensity of the energy, building product and food demand. If you were doing objective research, I suggest, you might first start by comparing national per capita energy consumption rates and trends. Then if the data revealed certain nations that appeared to be cutting per capita energy demand rates faster than others, you might ask: "what great demand side management or conservation policies have they implemented?" And if you found nations that appeared to be cutting per capita GHGs for any given level of energy demand, you might ask: "what great carbon content reduction policies have they implemented?"

Only after completing these two analyses might you ask: "among those nations that appear to have demand and carbon content in hand, who has done the best job of retaining/growing employment?"

A very preliminary scan of the available data (very, very simply summarized in the table below) suggests that it might be worth our time to ask whether there is any policy link to the recent environmental and economic performances of Ireland, Spain, Belgium and Finland. All of these nations realized statistically significant industrial (mining, manufacturing, construction, utilities) employment growth since 1996 while cutting GHG emissions.

Denmark and Sweden might be second tier nations of interest. They have experienced real industrial job losses since 1996, but they realized more than 2 percentage points worth of per capita GHG reductions for each 1 point of job loss.

But any first scan of the data tells us, without further research, that::

  •     The last thing we want to do is replicate the German, Japanese, Austrian, UK, or US employment trend experiences. Germany has had the 2nd highest rate of industrial job loss in the OECD since 1996 (the German economy was stagnant with near-zero GDP growth for 6 years from 1999 through 2006). German per capita GHGs have not fallen as fast as industrial FTEs.
  •      In Canada we should be interested in a number of specific energy and environmental policies that have been implemented in Finland, Belgium, Spain, Massachusetts, Connecticut and Texas
  •      Californian renewable energy policies have actually been disastrous, to date.  In 2007, renewable power supply in California was LOWER, as a % of total state power demand than it was in 1990.
  •      All we care about in the Danish, Swedish and Austrian stories is the implications of their district heating (largely hot water-based, not so much steam-based) histories.
  •      Most nations that have implemented high energy tax/price policies have loaded most of the energy cost increase on non-commercial consumers to ward of industrial job losses.

In fact, pre-global recession, Canada realized more than 5 percentage points worth of industrial employment for each 1 point of per capita GHG growth. Only Ireland, Belgium, Finland and the Netherlands could possibly be described as having done better than Canada in GHG intensity of job creation.

Further, in 2006 the German Department of Trade and Industry officially reported that 100% of all of the 1.25 million "new jobs" created in Germany between 1995 and 2006 were "economically insignificant".  In German statistics, an "economically insignificant" job is one that relies entirely on government subsidies and is deemed to have no prospect of continuing if/when government subsidies are withdrawn. Under German tax law, employers do not have to remit payroll taxes on jobs that are rated "economically insignificant". And to accept the assertion that German policy created 1.25 million "new jobs" between 1995 and 2006 we have to conclude that the traditional economy also lost 1.7 million jobs over the same period (because net job losses were reported overall).

Please note, when you are looking at employment statistics, that you need to track both the job count and the number of hours per year the average employee is paid. The table below shows you that there are large differences in  "average hours of paid work" trends among OECD nations. The average German and Norwegian full time job paid for 1,433 and 1,408 hours of work, respectively, in 2006, while the average Canadian and US jobs represented 1,738 and 1,737 hours of paid work, respectively.


On Energy Demand

But when you compare per income-weighted capita energy consumption to climate-weighted (heating and cooling degree day) population density, and trends in these factors, you will discover that there is no statistically significant difference  in energy demand among OECD nations that is not entirely explained by the differences in average household income and population density. So research that actually looks at data can legitimately suggest that any OECD nation has actually implemented superior modern policies in respect to conservation and/or demand-side management.

That look at data does tell us, however, that energy demand increases with income no matter what culture we are talking about, and we must focus on the creation of nodes of population density to achieve our conservation goals (the European nations established their dense nodes more than 300 years ago.)

In fact, from a straight numbers perspective, BC appears to have one of the most successful demand-side management/conservation programmes in the western world.  I am of the view that Power Smart is a superior utility-administered DSM program (I am not so sure about Resource Smart). But BC’s great numbers have more to do with the development and densification of Vancouver’s downtown area over the last two decades than anything else.

On Carbon Intensity of Energy Demand

Once you scour the shifts in GHG intensity of energy demand in Europe, it appears that the keys to GHG intensity reduction are:

  •     District heating and co-firing wood pellets with coal and/or gasifying wood waste with natural gas to generate at least 50% of the hot water supplied to the DH system.
  •     Mapping transmission capacity before committing to develop renewable supply—this applies both for renewable electricity and district heating (in which case we must inventory the heat supply options and map the steam/hot water transmission systems before plunging into heat supply project development).
  •     Nuclear.
  •     (on the transportation side) shift the single passenger vehicle fleet from gasoline to diesel, preferably biodiesel blended, fuel.

The Medium-Term Big hit?

Modify Canadian petroleum product refineries to max diesel/distillate output, not gasoline output. Capture surplus heat and CO2 from petroleum refineries and natural gas processing plants to feed into algae-based biodiesel refineries that should be co-located with the diesel refineries. Run the algae-based biodiesel through the petroleum refinery hydro-cracker to make it fuel that is reliable in cold weather. Algae-based biodiesel demand displaces petroleum-based fuel demand, but all Canadian refiners are generating revenues on both sides of this equation. Waste CO2 sunk into algae-based biodiesel is still released to the atmosphere, but tailpipe CO2 emissions from blended fuel end-use substantially decline, especially if the new blended biodiesel is being substituted for gasoline in the single passenger fleet. Feed surplus hot water from the algae-biodiesel refinery into a district heating system that heats local homes and buildings.  Recycle cold water back from the DH-connected buildings to partially address water demand from the refineries. DH cuts local electricity and natural gas demand for space and water heating.  Max out biomass, wind. solar and PV power generation to supply electricity and heat to the industrial, commercial and residential complex, with can be achieved most cost-effectively if the DH system is in place.

Key Policies?

1.  Legally-binding Renewable Energy Standards, where all distributors of electricity, natural gas and petroleum products shall comply with obligations to acquire and surrender Renewable Energy Credits, where 1 Pj of fossil fuel sales equates to 277.778 MWh-equivalent, for purposes of determining common standards for the energy types (level of government: preferably federal, but can be provincial)
2.  Legally-binging Renewable Energy Project certification, registration and REC issuance procedure, where building efficiency ("megawatt-hours") and biofuels (1PJ = 277.78 MWH-equivalent of 0-emission energy) are included as REC-earning projects (preferably federally-administered)
3.  1-year depreciation for capital investments that lead to compliance with the RES or otherwise might lead to the desired future, where CCA credits are not transferable but bankable for 7 to 9 years. This means CCA credits are potentially valuable to not-profit-making entities, but drives those entities towards profitability. (only the federal government can do this)
4.  100% exicse and sales tax exemption for any fuels employed to co-generate electricity, steam and/or hot water and feed steam and/or hot water into a district heating network (both levels of government should do this)
5.  Given a federal RES and federal renewable project certification (REC issuance) and registration procedure, provincial guidance re:REC use and trading, feed-in tariffs, etc. (provinces only).

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The Case for Doing Nothing on Global Warming

Lawrence Solomon

October 21, 2009

A Presentation to the Centre for National Security of the Conference Board of Canada Winnipeg, Oct 21 and Oct 22, 2009

I am grateful to be here this morning to discuss threats to public safety and national security.  Threats often come from unexpected sources. This may be the case with global warming.

You will be hearing at this conference that there is little doubt that human activity is responsible for profound and negative changes to our climate. Distinguished speakers will warn of enormous fresh water decreases, of disappearing glaciers, of the potential extinction of 70% of all species, of an ecosystem stressed to the breaking point.

You will hear of droughts and starvation and sea level rises that will very likely flood millions of people living in coastal areas from their homes each year, and that Canada will need to be prepared for the chaos to follow, chaos that could include mass migrations of refugees, social unrest, pandemics, war and terrorism and riots born of social injustice.

I’m here to tell you that there are no such likelihoods. That there is no consensus on climate change. That the science that the doomsayers describe cannot credibly be seen as having the weight of scientific opinion behind it. Often, the science has no credibility whatsoever.

Here is one example, from a doomsayer claim that will be made to you tomorrow. You will hear that malaria and other vector borne diseases are likely to spread as the planet warms.  This claim dates back to 1995, when it was a theme in one of the major reports put out by the UN’s Intergovernmental Panel on Climate Change, the body that has organized much of the world’s research on global warming. The IPCC reported that global warming could lead to 80 million additional cases of malaria worldwide – 80 million each year. Without this UN body — the IPCC — there would have been no such estimate, and no such fear of the public health consequences of global warming. In fact, without the IPCC, there would be no global warming scare at all.

Was that 80 million figure the result of a broad consensus in the field, as those who represent the IPCC claim? Did the world’s top scientists endorse that 80 million figure, as the press continually reported at the time?

Let me tell you about Paul Reiter and the Pasteur Institute in Paris. The Pasteur Institute is as credible an organization as you can get in this field, and not just because it was founded by Louis Pasteur himself. This institute’s excellence over more than a century led its scientists to receive eight Nobel Prizes.

Now let me tell you about Professor Paul Reiter, who heads the Pasteur Institute’s Insects and Infectious Disease Unit.

Reiter is also as credible as you can get in this field. Before joining the Pasteur Institute, Reiter directed the entomology section at the Dengue Branch of the Centers for Disease Control, which as you know is a preeminent U.S. government agency. Reiter is also known for his work as an officer of the Harvard School of Public Health, his membership on the World Health Organization’s Expert Advisory Committee on Vector Biology and Control, and, among administrative positions, his role as lead author of the Health Section of the U.S. National Assessment of the Potential Consequences of Climate Variability and Change.

What does Paul Reiter think of the IPCC’s work in his field of malaria and vector borne diseases? He described the scientists who worked on it as having “glaring ignorance.” These scientists claimed that malarial mosquitoes cannot ordinarily survive temperatures below 16C to 18C, not realizing that many tropical species do and that many temperate species survive temperatures of – 25C. Likewise, these scientists didn’t know at what altitudes mosquitoes can be found.

The UN’s report was so ignorant, in fact, that Reiter says there is not one major scientist in the field, anywhere in the world, who accepts the findings in this report.

Who were these scientists, who had produced this report for the UN body, who made news around the world that global warming could kill 80 million people a year through the spread of malaria and other vector-borne diseases?

For starters, none of the lead authors had ever written a single research paper on the subject. Two of the authors had spent their entire careers as environmental activists. Another had as his chief interest the effectiveness of motorcycle crash helmets.

This was the caliber of scientist who produced the most influential public policy document ever written on malaria and vector borne diseases, a document that came up with this completely bogus figure of 80 million deaths a year from vector borne diseases without understanding the first thing about them, a document that still has currency today for one reason only – because it was produced by the United Nations Intergovernmental Panel on Climate Change.

Did the UN Panel try to make amends for having misled the world so egregiously on this subject? As you can imagine, it came in for a lot of criticism – remember, not one credible scientist in the field, in the world, agreed with the UN’s position. Because credible scientists were so alarmed that the mistake would be repeated, they put forward Paul Reiter’s name to be a lead scientist in the IPCC’s next report. The US State Department even recommended Reiter.

To no avail. The IPCC did not accept Reiter as lead author of its next report. Instead, the IPCC chose two other candidates, neither of whom had ever published a peer-reviewed article dealing with mosquito-borne disease.

Now, you might think that the case of Paul Reiter was an aberration, that in the other areas of important research concerning global warming, the people at the IPCC could be counted on to act with scruples and scientific integrity.

Well, think again. Reiter’s case, unfortunately, was no aberration. Many, many scientists associated with the IPCC are no doubt scrupulous. But too often that is not the case.

Let me describe what happened to Christopher Landsea, a top scientist who worked on hurricanes, an area of the highest concern for those who must deal in emergency preparedness.

Landsea wasn’t just any top scientist. He was the IPCC’s own top scientist. Landsea was the one who had earlier written the IPCC’s chapter on hurricanes on two major reports, six years apart. What he found both times was that there is no connection between hurricanes and global warming. In 2004, he was working on the next major IPCC report, his third. And his updated research in 2004 was showing the same thing – that there is no connection between hurricanes and global warming.

So you can imagine his surprise when he discovered that his boss at the IPCC was about to hold a press conference announcing a connection between hurricanes and global warming.

As you’ll recall, the 2004 hurricane season was fierce. Many in the public and press were speculating that global warming was the cause. And those in power at the IPCC didn’t want to disappoint them. So they decided to hold a press conference to confirm their suspicions.

When Landsea found out about the press conference, he initially thought that some horrible misunderstanding had occurred. But there was no misunderstanding. His boss wanted to hold the press conference, regardless of what the science might say. Landsea’s pleas to have the press conference called off failed. The press conference went ahead.

And it was a success. Huge headlines around the world, confirming that global warming was responsible for hurricanes. Based on NO science.

Landsea resigned after that press conference, but not directly because of the press conference. After the press conference, he asked the IPCC for assurances that the IPCC would never again distort the science as it had done with the press conference. The IPCC refused to give him that assurance. That’s when he resigned.

In every single area that the IPCC points to catastrophe – you name it, the disappearing Arctic ice cap or the Antarctic melting or the glaciers melting or the oceans rising – in every single area you will find no shortage of reputable scientists who dispute IPCC’s catastrophic scenarios.

If the IPCC scenarios are in such dispute, you might wonder why the IPCC has such credibility, with so many.

Let me tell you why. It comes down to one number that the press reports over and over – the number of 2500. That’s the number of scientists associated with the IPCC, the number that the press reports has endorsed the IPCC’s conclusions.

If you do a Google search on news articles that claim that the science is settled on climate change, you’ll see that the reporters almost always rely on this number.

“2500 scientists can’t be wrong,” they always say, explicitly or implicitly. If they didn’t have that number, they would have no basis for the claim that they repeat over and over again – the claim that there’s a consensus on climate change.

2500 is an impressive number of scientists. I wondered who, exactly, were these 2500 scientists associated with the UN. To find out, I contacted the Secretariat of the United Nations Intergovernmental Panel on Climate Change, and asked for their names. I intended to survey them and find out exactly what they thought.

The answer that came back from the secretariat was negative. I learned that the names were not public, so I couldn’t have them. And I learned that the 2500 scientists were reviewers, not endorsers.

Those scientists hadn’t endorsed anything. They were merely people who had reviewed some small part of the inputs that went into the bureaucratic maw. They did not review the final report or endorse it.

Their reviews weren’t even all favorable. I know that from many sources, including from among some of the scientists that I profiled — several of the deniers in my book are among those 2500. And those deniers, and others, generally consider the UN’s work a travesty.

So there is no endorsement by 2500 top UN scientists. The press has been taken. And so the public has been taken.

The extent to which the public has been taken may surprise you. Not only is there no consensus, the scientists who are skeptics — the deniers — have extraordinary credentials. They are the Who’s Who of Science.

They include Antonino Zichichi, the president of the World Federation of Scientists and the discoverer of nuclear anti-matter. He is Italy’s best known scientist.

They include Claude Allegre, who is France’s best known scientist. And they include one of Germany’s best known scientists and Britain’s and America’s, Freeman Dyson, the physicist, the inventor of the TRIGA, the nuclear reactor used in hospitals and university labs around the world to create isotopes.

They include Syun Akasofu of the International Arctic Research Center, the discoverer of the causes of the storms of the aurora borealis.

And they include Edward Wegman, who has an impressive background in climate science as well as being one of the top statisticians in the world. He was, for example, a former Chair of the Committee on Applied and Theoretical Statistics for the National Academy of Sciences.

In some ways, statistics is the most important discipline in the global warming debate because, in the end, all the catastrophic scenarios that we hear about are nothing more than output from computer models that have been fed what-if scenarios.

Well, Wegman was called in by a US Congressional committee to assess the statistics used in the IPCC’s Hockey Stick Graph.

You may not all have heard of the Hockey Stick Graph but you’ve heard of the claims made because of it. This graph claimed to show that Earth’s temperatures have been fairly constant over the last 1000 years — that’s the long handle of the hockey stick — and then in the last 100 years the temperatures shot up — that’s the blade of the hockey stick.

This graph is the single biggest reason that the public became persuaded that the Earth was heating up in a dangerous way. Because of that graph, we heard that 1998 was the hottest year of the hottest decade of the hottest century of the last 1000 years.

Were the statistical methods used in that hockey stick graph valid? To find out, the US Congressional Committee held hearings and called in Wegman. What he discovered dumbfounded him, and not just because the graph was bogus.

He was dumbfounded because the scientists who produced that Hockey Stick Graph had no serious grounding in statistics, even though the study depended entirely on an advanced understanding of statistics. Not only did they not understand statistics, they didn’t consult anyone with an advanced understanding. And the peer reviewers did not have an advanced understanding.

With no one knowledgeable in the use of statistics, it was no wonder that their results were invalid. The scientists who produced that graph used a model that would almost always produce a hockey stick shape. You could put almost any data into their model and get a hockey stick shape. You could throw baseball stats into that model and it would tell you that the Earth was burning up.

All scenarios of catastrophe are based on computer models and these models are not up to the job. The models can’t even model the past, let alone the future. The climate is simply too complex, with too many variables, to project it into the future with any degree of confidence.

Man has always faced emergencies and we need to be prepared for emergencies in the future. But we should base our preparations on real-world conditions, not the fantasies of climate modelers at computer keyboards.

In my view, the greatest threats to public safety and national security come not from man-made climate change but from man-made climate models. We don’t even need to project far into the future to see the nature of some of these threats – we already have a taste of them.

You want global warming-related riots? We’ve seen them in recent years in several Third World countries, where a doubling and tripling of grain prices led to food riots. Last year the poor in Egypt rioted after another round of price increases in bread. Food riots also occurred in Yemen and Pakistan and Indonesia. The previous year we saw the tortilla protest, where tens of thousands marched through the streets of Mexico City to protest increases of 400% in the price of tortillas, which is a staple for the poor and the main source of their calories.

These protests stemmed from policies designed to stop global warming, from crash programs converting food crops to fuel crops. With the West’s governments desperate to take action, any action, to be seen to be doing something on global warming, the world’s agriculture has been turned to the service of filling the gas tanks of the trendy. It is done in the name of sustainable development but this development has been anything but sustainable.

These food riots stemmed from a crash program to get off fossil fuels and onto biofuels. Other crash programs to get off fossil fuels have likewise caused upset. We are pushing hydro dams in the Third World on global warming rationales. Hydro dams take out river valleys that are typically fertile and populated. Each such dam robs people of their homes and their livelihoods and forcibly creates rootless migrants of what were once stable and self-sufficient farmers.

We are starting to see protests in the West, too, over attempts to deal with CO2. These are being called NUMBY protests, Not Under My Back Yard.

Governments in Canada, the U.S. and Europe plan to build carbon capture and storage facilities to take the carbon out of smokestacks and store it underground. This is hugely expensive and energy intensive but the cost isn’t the source of the protests. These facilities, which will be pumping billions of tons of CO2 underground, are predicted to become one of the major sources of induced earthquakes in the future. These facilities also create a risk of suffocation in the event of a major industrial accident because carbon dioxide is heavier than air. The fear is that people living in low lying areas would lose their oxygen if a cloud of CO2 descended on them. This is what happened to communities near Lake Nyos in the Cameroons in 1986, after a natural release of CO2.  1700 villagers were asphyxiated, along with 3500 livestock.

These carbon capture plants don’t make for welcome neighbours, hence the protests. Communities are organizing against these facilities wherever they’re proposed. In Ohio, after a long fight the government just called off a carbon capture and storage facility. In Germany, a $110-million carbon capture and storage facility that was actually built has never operated because of local opposition.

The opposition to these facilities isn’t all coming from the grassroots level. The American Water Works Association, a trade group representing 4,700 water utilities that produce 80% of America’s drinking water, opposes this technology because CO2 threatens to contaminate aquifers. As it starkly told Congress last year, “many communities don’t have alternative sources of affordable drinking water.”

Food shortages, riots and other civil unrest, loss of river valleys, loss of farmlands, loss of communities and livelihoods. To date, attempts to mitigate global warming have caused enormous human suffering and ecological harm, and threaten to cause much more. With the globe not having warmed in the last 11 years – once again, to the surprise of the computer modelers – the safest thing we can do on global warming until we know more may be to do nothing; the most dangerous thing would be to continue to act boldly and in ignorance.

Thank you.

Posted in Costs, Benefits and Risks | 1 Comment

Aldyen Donnelly: Canadian exports will suffer at the hands of US cap and trade bills

I am not sure where Janet Peace, Vice President of Markets and Business Strategy at the Pew Center on Global Climate Change, gets her estimate that only 10% to 20% of Canadian exports are vulnerable to US trans-border charges under US climate change legislation.

Here is a spreadsheet that shows you Canadian exports to the US and whole world—in current US$ value terms—for 2006 through 2008. In the first spreadsheet I have identified 16 general product categories that are vulnerable to US GHG tariffs. My reference is the Waxman-Markey bill except where the Kerry-Boxer bill is less threatening to Canadian exports—meaning the vulnerable export estimates reflected in the attached are likely conservative. The spreadsheets that follow the first show you the product group breakdown, and which specific commodities are vulnerable to which form of proposed US direct or indirect GHG tariff.

So far, I have only gone through the breakdowns for 3 of the 16 product categories that are generally vulnerable, and I find that if the least aggressive of the current US Congressional climate change cap and trade proposals had been law in 2008, the tariff-vulnerable commodities in those 3 product categories alone accounted for 23% of total Canadian world-wide exports (on an export value basis). 

I am guessing that when I complete the analysis of all 15 generally vulnerable product categories, I will find that somewhere between 30% and 40% of Canadian exports (worldwide) are vulnerable under US cap and trade rules alone.

Then there are the emerging Japanese, South Korean and European cap and trade /tariff proposals. If we posit that Japan and South Korea will adopt US-style cap and trade/tariff rules—as those nations have previously committed to do, after/once the final US rule becomes law—then my guess is that we are going to find that over 60% of Canada’s global exports will be vulnerable to US-style direct and cap and trade, system-based indirect GHG tariffs

In this analysis, I characterize:

  •     a government-set,trans-border charge as a "direct" tariff, and
  •     a binding obligation for US importers to surrender US GHG allowances covering GHGs arising from the production, transport and/or US end use of the imported products—when the US importers do not receive any free US allowance allocation—as an "indirect" tariff.

Precedents suggest that the US-prescribed GHG allowance liability will be deemed a tax or tariff under world trade and NAFTA rules. Precedents also suggest that the WTO and NAFTA will up hold the US’s right to impose that liability on US importers as long as the tariff on imports is equivalent to the GHG charge on US producers of the same products. 

In 3 very separate ways, the US GHG cap and trade proposals fail to treat imports fairly.  However, if Canada signs on to a general agreement that stipulates there will be (1) international trade in GHG allowances and (2) parties can allocate their domestic allowances as they see fit, as long as the overall domestic allowance supply complies with general limits outlined in the agreement. 

The US is proposing/will propose that every nation will submit a baseline inventory and then cap each nation’s overall right to generate domestic GHG allowances at xx% of total baseline emissions, where xx% will decline over time. Any final US cap and trade law will cover at least 80% of US GHG sources with allowance/quota liabilities, before we take into account exemptions.

The US cap and trade rule achieves this coverage by making producers and importers of carbon-based products liable for US consumer end-use GHGs—meaning the cap and trade rule covers all transportation, buildings and other consumption GHGs. The US will unilaterally stipulate—whether or not this is internationally agreed—that  any trading partner can elect to cover less of their GHG inventory with their own GHG allowance allocation/auctions. But the US will also stipulate—as outlined in Waxman-Markey—that the US compliance regime will not recognize/accept or will discount  foreign GHG allowances that originate in a developed nation that:

  •     does not adopt a series of firm, absolute national GHG targets, starting in 2012, that are "comparable" to the final targets that the US adopts—where "comparable" is deemed to be the same in percent-reduction -from-the-same-base-year terms, and where GHGs or emission attributes associated with the production of electricity is assigned to the national inventory of the nation in which the electricity is consumed, not the nation in which the electricity is produced, or
  •     cannot verify baseline year (2005 or 2006, likely) GHGs with data collected pursuant to a facility-level emission (all emissions, not just GHGs) reporting regulation that is deemed "comparable" to US facility level reporting rules (Canada fails to meet this test), or
  •     covers any sector/industry/sources that are covered by the US cap and trade system under a domestic Offset System. In other words, if Canadian regulations issue Offset Credits to zero-emission power generators, or to reward entities for investments in building efficiency, the US will not accept any Canadian GHG allowances as compliance units in the US market. These are only two examples of a large number of projects that Environment Canada currently proposes to cover with Canada’s Offset System that fall afoul of the proposed US law.

It is also important to note that all of the US, EU, Japan and South Korea advocate for a national GHG budget-setting process that also defines sector-level GHG quota allocation limits in percent-reduction-from base year terms. Even if the US agrees that Canada’s national GHG limits (sovereign GHG quota allocations) are comparable to US limits, and that Canada could achieve our national reduction targets without matching US sectoral allowance supply limits (as a % of sectoral base year GHGs), the final US law will authorize the administrator of the program to assign tariffs to Canadian commodity imports that originate in any sector that has a more generous GHG quota allocation in Canada than it has in the US. In the attached analysis, I do not account for this potential source of new US tariffs because, obviously, I cannot yet compare Canadian and US sectoral GHG allowances/quota allocations.

Canada’s best defence against the US trade protectionist GHG allowance allocation and trading rules is to NOT implement US-style cap and trade (with tradable allowances/quota) in Canada.

Canada should implement a series of product standards, including federal renewable energy and emission performance standards, that oblige distributors of regulated carbon-based products to report and reduce supply chain GHGs over time. The Canadian standards should permit any combination of regulated product distributors to comply jointly, and also allow them to bank credits in any year that they fail to use the full carbon entitlement implied by the product standards.

It is essential that when Canada develops our product standards, we define performance in GHG/unit of regulated product sales terms, not in %-reduction from base year GHG terms. That is because in most regulated product classes, Canadian producers are already low-GHG intensity suppliers. 

So, for example, assume we bind to a national and sectoral limits defined as a "20% reduction from 2005 levels by 2020". That means that the US aluminum industry has to cut sector average GHGs from roughly 12 TCO2e per Tonne of aluminum output to 10 TCO2e/T Al—including GHGs associated with the smelters’ consumption of electricity. 

But it also means that the US can hold Canadian aluminum producers to a standard of 5 TCO2e/T Al (and apply tariffs to our aluminum exports if we fail to cut our sectoral average GHG discharge rate from the current rate of roughly 6 TCO2e/ T Al). Canada currently exports over 80% of our domestic aluminum output to the US, and we export well over 90% of our output worldwide. Obviously it will be less costly for US producers to up grade their older smelters to cut GHGs to 10 TCO2e/T Al than for Canadian smelters to cut GHGs from 6 to 5 TCO2e/T Al.

So the US (and other nations to whom we export aluminum and which are high GHG/T Al producers in their own right) should attract significant new investment in US smelters—at the expense of Canadian exporters’ US market share—even though Canadian aluminum output is already much less GHG intensive than US output will be AFTER the US achieves full compliance with the stated performance target.

Canada can break down the US protectionist play, but only with a preemptive regulatory agenda. Canadian GHG performance standard should stipulate, for example, that any entity that distributes aluminum in Canada shall report global supply chain GHGs (this is doable if we adopt most—but not necessarily all—of the GHG reporting standard that is already law in the US) and demonstrate, that the GHG intensity of their Canadian sales (on a sales porftolio average basis) is, say,  9 TCO2e/T Al in 2012, declining to, say, 7 TCO2e/T Al by 2020. The US will argue that this standard is not "US comparable", because it imposes no GHG reduction obligation on most Canadian smelters.

However, Canada could win WTO and NAFTA challenges if/when the US introduces tariffs on Canadian aluminum exports, because we will be able to demonstrate that the GHG intensity of US output is much higher than the GHG intensity of Canada output, before, during and after the 2012 – 2020 budget period.

The Canadian product standard should incorporate credit trading and banking under the emission performance standard, but Canada should not issue credits to domestic aluminum producers on the basis of the difference between the regulated 7 TCO2e/T Al GHG standard and actual emissions of 6 TCO2e/T Al for plants whose emission levels are 6 TCO2e/T Al before the product standard is implemented. US law will impose on Canada the obligation to erect a domestic GHG permit system (and WTO precedents—see the reformulated gasoline case—suggest we can’t get out of this). 

Canadian GHG permits should cap facility-level GHGs in two ways: (1) absolutely, at, say, 2000-2008 average levels multiplied by, say, 1.1, and (2) GHGs/T Al output at 2005-2008 average actual rates. No Canadian smelter should be permitted to exceed the absolute facility level GHG limit outlined in its permit, no matter how many GHG credits the operator might have in the bank. But any time an operator reports actual GHGs/T Al lower than the permitted intensity level, that operator would earn bankable, tradable GHG credits equal to the difference between the actual and permitted intensity rate multiplied by its annual output.

Note, that this procedure puts two distinctly different market signals in play. Aluminum distributors are still free to source their supply from anywhere in the world, including very GHG-intensive smelters. But the more they source from very GHG-intensive smelters, the more they also have to source from extra-low GHG intensity suppliers. 

Distributors will immediately start to introduce a wholesale price differential, paying more for less GHG intensive feedstock and less for more GHG-intensive feedstock and intermediate products. In reaction to the product standard the market (as opposed to government) puts a price on carbon. This emission performance standard ("EPS") covers domestic production and imports equally, without any need for any tariff, because it covers the GHG or carbon intensity of "sales", not output.

But while the aluminum distributors are the obligated parties under the emission performance standard ("EPS") regulation, the permitting and crediting system covers only domestic producers of aluminum. Bankable Canadian GHG credits (marketable to Canadian distributors of regulated carbon products) are issued only to Canadian operators of GHG permitted facilities who cut their operating GHG intensities. The GHG permits contain both absolute GHG limits (as the environmental community requires) AND intensity-based GHG limits (the mechanism we need to use to drive emission reductions).

The GHG permit/crediting regime rewards entities that invest in GHG reductions in continuing Canadian operations, but there is no gain in the crediting process for operators who elect to shut down or cut back Canadian production to reduce GHGs.

We should anticipate that the US will react to this Canadian scheme as "protectionist", demanding that Canada credit US aluminum producers who supply Canada on the same basis we credit Canadian aluminum producers. WTO rules will allow Canada to respond by issuing Canadian GHG credits only to US aluminum producers who cut GHGs/T Al below the Canadian sector average GHG/T Al rate. We do not have to issue Canadian GHG credits to US suppliers whose GHG/T Al rate is higher than the current Canadian average.  (This is, in fact, how the US treats reformulated gasoline imports from Canada, which treatment the WTO upheld.)

The US has a long history of defining "US comparable" as meaning that the US trading partner has to literally implement US standards. And the WTO has a long history of precedents of ruling against the US when the US does this. The WTO defines "comparable" to mean comparable environmental outcomes, not comparable legislation. 

WTO tribunals will ask: do global GHGs go up or down if/when US output is substituted for Canadian imports under the US scheme? The answer is they go up.  The WTO will, therefore, rule against the US tariffs.

Perhaps more importantly, by implementing a US comparable permitting system, building crediting into permitting and promulgating a federal Renewable Energy Standard and EPSs for the nine critical commodities that dominate our GHG inventory—as soon as possible and before the US passes final law—Canada turns the entire table in the Canada-US "trade protectionism" dialogue.

Finally, China, India and other developing nations should be much more comfortable binding to a  set of common international Renewable Energy and EPS-style product standards as long as the product standards:

  •      stipulate numerical GHG/unit of sales performance standards, not a %-reduction-from a base level GHG/unit rate definition of "performance and
  •      distributors of regulated products are permitted to comply on a portfolio sales average basis (as opposed to being required to meet the GHG standard for every batch sold.

While it complicates the short-term political landscape somewhat to introduce these alternative market measures at this time, in fact they are much easier and much less expensive to administer and comply with than US-proposed allowance allocations and trading schemes.

It is also important to note that the emission reduction drivers in all US climate change bills that have passed 2nd reading are product standards (the US federal Renewable Electricity Standard, the Electricity Efficiency Standard, the Renewable Fuel Standard, the Low Carbon Fuel Standard, the CAFE standard, new energy efficiency standards for appliances, buildings and industrial combustion units, etc.) In moving first on product standards, Canadian legislators will actually be acting in concert with the material parts of proposed US laws.

After the product standards are in place (with credit trading and banking, as in the existing US laws and proposals), Canadian negotiators can reasonably ask: and why do we need to lay quota-based supply management (allowance allocation and trading rules) on top of these already highly efficient market measures? The answer is: there is no need for quota allocation and trading other than to serve governments desire to use quota allocation to effect barriers to trade and transfer wealth from already more efficient nations to less efficient nations.

The quickest and most collegial way for Canadian negotiators to bring this reality to light would be to gazette two or three Canadian versions of existing and proposed US product standards before December 2009.

The principal reason I started analyzing the Canadian export (and import) data was that I feel that I need to be familiar with this data in order to develop a sense of what reasonable straw-dog GHG/unit of sales standards actually look like, given our current global supply  and export sales mixes.

Posted in Aldyen Donnelly | Leave a comment

The free luncher: Exelon

(Oct. 17, 2009) Fourteen principled companies abandoned the U.S. Chamber of Commerce this week in protest over climate change. Let’s investigate their principles. Continue reading

Posted in The Deniers | Leave a comment

The free luncher: Exelon

Lawrence Solomon
Financial Post
October 17, 2009

Fourteen principled companies abandoned the U.S. Chamber of Commerce this week in protest over climate change. Let’s investigate their principles.

The New York Times coverage of the event, focusing on Exelon, one of America’s largest energy companies, frames the issues well. “Climate Bill Splits Exelon and U.S. Chamber,” its headline read. It then quoted Exelon’s long-time CEO, John W. Rowe, who explained that Exelon objected to the chamber’s “stridency against carbon legislation.” Environmentalists cheered the corporate defections, which confirmed their view that climate change reforms made good economic as well as good environmental sense.

“The carbon-based free lunch is over,” stated Rowe. “Breakthroughs on climate change and improving our society’s energy efficiency are within reach.”

John Rowe knows a lot about free lunches. He also is no Johnny-come-lately in coming to the table. Long before most environmental groups discovered the global warming issue, Rowe was warning of the dangers of climate change. In early 1992 — before the UN’s Maurice Strong and a U.S. senator named Al Gore launched the global warming issue at the Rio Earth Summit — Rowe was testifying in Congress about the need for carbon taxes to protect the planet.

Needless to say, carbon taxes were also needed to protect the nuclear industry, which he represented. At the time, Rowe was CEO of New England Electric System, part owner in the Yankee Rowe Nuclear plant that had to be prematurely decommissioned because the cost of making it safe was deemed uneconomic. Rowe had come to New England Electric System from a stint as CEO of Central Main Power, famed for a ruinous investment in the cancelled Seabrook nuclear power plant. Now as CEO of Exelon, he oversees the largest fleet of nuclear reactors in the U.S., those at ill-fated Three Mile Island among them. Every single reactor in Exelon’s fleet needed government backing to be built — neither Exelon nor any other company in the private sector has ever been willing to accept the full financial risk of nuclear power.

Exelon plans to build more nuclear plants — but only if taxpayers will overwhelmingly assume the expense. Thanks to subsidies established by the Bush administration in the hopes of kick-starting a nuclear renaissance, the federal government promises to pick up much of the capital costs and much of the operating costs of a future round of nuclear plants. But that isn’t enough to make new nuclear plants competitive. For nuclear to succeed, competing technologies that don’t require subsidies — and especially coal-fired plants, which Exelon lacks — must be brought down by regulation.

This is the forte of Rowe, a lawyer by training. No one has a more stellar record in the realm of regulatory rule-making, no one has more ingeniously struck deals with environmentalists and government regulators alike, no one more keenly appreciates how the law can be used to cripple a competitor, no one has more tirelessly lobbied for climate change legislation, the biggest club ever devised against the fossil fuel industry.

Hence Rowe’s distaste for anything that stands in the way of regulations that eviscerate his competition. The U.S. Chamber of Commerce, representing three million businesses, most of which won’t benefit from higher energy costs, is standing in his way.

What exactly has the Chamber of Commerce done to earn so much vitriol from environmentalists and corporate defectors alike (the former now refer to the latter as “green corporations”)? Its most egregious act was to ask the Environmental Protection Agency to hold public hearings on proposed EPA regulations associated with global warming, to determine the best way to achieve health goals without harming the economy. The EPA had asked for comment on its proposed regulations, but had planned to make its decisions behind closed doors.

Normally environmental organizations champion the transparency of public hearings; in this case they preferred private deliberations, particularly when a chamber official analogized its proposed hearing to the Scopes monkey trial of the 1920s, which decided, over the objection of creationists, that evolution could be taught in the schools.

The Chamber of Commerce’s other major crime, in the view of its critics, is to recognize the existence of a public debate on climate change through its annual selection of 10 Books That Drive the Debate on different public policy issues. Last year, my book, The Deniers, was one of the 10 books featured. To further public understanding, the Chamber of Commerce then arranged a public debate between me and the senior scientist at the Pew Center on Global Climate Change, perhaps America’s leading NGO in the field of climate change catastrophe.

Behaviour like this, in the view of Exelon’s CEO, amounts to “stridency against carbon legislation.” I see no stridency from the chamber’s side, other than in promoting a transparent process and public debate to protect its members against legislation that hasn’t been fully aired and tested.

In contrast, I do see stridency in Exelon which, for private gain, is trying to cow the Chamber of Commerce for doing its job in protecting three million members from needless cost.

With the defection of Exelon and the rest of the “principled 14,” the membership of the Chamber of Commerce will be down to 2,999,986. But it will have retained its principles. As for Exelon, it, too, is doing its job of enriching its shareholders. That enrichment, largely at public expense, is the only principle that I can detect at Exelon.

Read the previous article in the Climate Profiteers series.

Other Climate Profiteers articles: 

Climate insurance

Hot climate premiums

DuPont’s new game

Fill up with subsidies

Profitin’ in the wind

Carbon baron Gore

Read the sources for this column.

Posted in Climate Change, Energy Probe News, The Deniers | Leave a comment

Climate change dominoes fall

(Oct. 16, 2009) Australians are the latest citizenry to turn against climate change catastrophism. For the first time, according to a Lowy poll released this week, a majority of the population turned thumbs down to the proposition that “global warming is a serious and pressing problem. Continue reading

Posted in The Deniers | Leave a comment

Climate change dominoes fall

Lawrence Solomon
Financial Post
October 16, 2009

Australians are the latest citizenry to turn against climate change catastrophism. For the first time, according to a Lowy poll released this week, a majority of the population turned thumbs down to the proposition that “global warming is a serious and pressing problem. We should begin taking steps now even if this involves significant costs.” This rejection applied to younger segments of the population as well as old, especially disappointing to Australian decision makers, given their efforts to indoctrinate youths through the educational system.

Last year, 60% of the populace bought into global warming fears and in 2006, the figure was 68%.

Neither did Aussies view tackling global warming as particularly important. When compared to other foreign policy issues, such as illegal immigration, protecting jobs, combating terrorism, strengthening the United Nations, or protecting Australians living abroad, climate change fared miserably. In fact, of the 10 foreign policy issues the poll cited, only “promoting democracy in other countries” was deemed less of a priority.

The Australian results come the same week that the United Kingdom’s Department of Energy and Climate Change released a survey showing most Britons do not fear harm from climate change.  Until last week, the government had kept up a brave face, refusing to acknowledge that its relentless efforts over decades to convince the public of the need for action on climate change had failed.

With Copenhagen fast approaching, the government has decided to pull out all the stops with an unprecedented prime time TV ad campaign to turn public opinion around. “The survey results show that people don’t realize that climate change is already under way and could have severe consequences,” Joan Ruddock, the Energy and Climate Change Minister explained in justifying the need for her aggressive campaign. The £6-million ad campaign showing scenes of devastation through animation — flooding, drowning animals and humans, a sign that reads “The World’s End” — fittingly premiered on the night-time soap opera, Coronation Street, with an ad entitled “Bedtime stories.”

Editor’s note: This article is revised version of a story that first appeared in Lawrence Solomon’s Energy Probe blog.

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Aldyen Donnelly: Tim Flannery has it all wrong when it comes to combating climate change

Tim Flannery, a famous Australian environmentalist was recently interviewed by a number of Canadian media outlets, including the CBC and CPAC. I found his appearance most bizarre. 

His home country of Australia is one of roughly a dozen nations worldwide that have (1) higher per capita GHGs than Canada and (2) have exhibited a higher rate of GHG growth since 1990 than Canada. I found it bizarre to see his disapproval of Canada aired on CBC, yesterday, given the performance of his home nation. 

Including GHGs from deforestation, Aussie’s annual emissions increased 82% between 1990 and 2007, compared to 46.7% for Canada. Per capita GHGs totaled 39.80 tons of CO2 emissions per person in Australia, compared to 24.06 for Canada.

 

In August, the Australian Senate rejected a cap and trade bill, but an amended, less aggressive version of the bill will be represented to the Senate for a new vote and will likely pass 1st and 2nd reading in November. But even the August version of the Aussie cap and trade bill fails to reduce per capita Aussie emissions down to current Canadian per capita emission levels by 2020.

I think climate change is a real risk and actively advocate for GHG regulations. But I also oppose "cap and trade"—which is just a fancy name for quota-based supply management. As in our other supply-managed markets—dairy, turkey, chicken, municipal taxis, etc.—the only thing that happens when we introduce a quota-type market management tool is that big corporations with deep pockets take all. A quota supply inevitable becomes concentrated in the hands of a small number of cash rich market participants, innovation rates slow down and economic returns to persons and entities that actually make things shrink, as the rents that used to accrue to production are eaten up by quota lease costs.

What Flannery failed to acknowledge is that the problem with Kyoto/Copenhagen and his message is that they have sacrificed the goal for the means. They are not focused on practical measures to cut GHG emissions. They are focused on building an inefficient quota-based global market control mechanism that will not result in GHG reductions. While most of the public do not understand this, they intuitively get that the facile GHG management proposals do not make sense.

"Put a price on carbon", "trade carbon" and "tax carbon" are not functional GHG mitigation plans. They are, at best, slogans.

 

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