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What Exporting U.S. Natural Gas Means for the Climate

This post originally appeared on The National Journal’s Energy Experts blog.

The U.S. Department of Energy made a big announcement late last week, green lighting the country’s second liquefied natural gas (LNG) export project. Many argue that natural gas exports will bring economic and geopolitical benefits for the United States–with Japanese and French companies coming on board as key partners in the proposed export station.

Indeed, natural gas can contribute to a lower-emissions trajectory–but only if it’s done right. With effective policies and standards in place, natural gas can help displace coal while complementing lower-carbon, renewable energy sources. But without these protections, U.S. LNG exports will likely lead to an increase in domestic greenhouse gas (GHG) emissions and, as discussed below, may have a negative effect on global climate change.

The question becomes whether government agencies and businesses will take the necessary steps to limit the emissions risks associated with natural gas, including through LNG exports.

How can Indonesia—the world’s fourth-most populous country and an emerging economic powerhouse—reduce deforestation and promote sustainable development across its vast, rapidly changing landscape?

That was a question recently posed by Nirarta “Koni” Samadhi, Deputy for the Indonesian President’s Delivery Unit on Development Monitoring and Oversight and Chair of the REDD+ Task Force Working Group on Forest Monitoring. At an informal meeting of forest and development experts at WRI’s offices in Washington, D.C., Koni explored possible answers, while reporting on the Indonesian government’s efforts to map and monitor forests and improve land use policies across the country.

Koni shared some of his insights with us in a video interview. Check it out below.

The U.S. Environmental Protection Agency (EPA) recently released its annual greenhouse gas (GHG) inventory report. Using new data and information, the EPA lowered its estimate of fugitive methane emissions from natural gas development by 33 percent, from 10.3 million metric tons (MMT) in 2010 to 6.9 MMT in 2011. While such a reduction, if confirmed by measurement data, would undeniably be a welcome development, it doesn’t mean that the problem is solved.

There are still many reasons why reducing fugitive methane is important. Even better, WRI’s recent analysis finds that we have the technologies and policy frameworks to do so cost effectively.

Here are five big reasons we should care about fugitive methane emissions:

1) Emissions Are Still Too High.

Methane is a potent greenhouse gas and a key driver of global warming. Methane is 25 times stronger than carbon dioxide over a 100-year time period and 72 times stronger over a 20-year period. In fact, 6.9 MMt of methane is equivalent in impact to 172 MMt of CO2 over a 100-year time horizon. That’s greater than all the direct and indirect GHG emissions from iron and steel, cement, and aluminum manufacturing combined. Reducing methane emissions is an essential step toward reducing U.S. greenhouse gas emissions and slowing the rate of global warming.

How can we make climate change adaptation measures more effective? I recently traveled to Dhaka, Bangladesh to discuss ways to address that very question.

I took part in the 7th annual Community-Based Adaptation Conference (CBA7), hosted by the International Institute for Environment and Development (IIED) and the Bangladesh Center for International Studies. The conference provides a forum for organizations working on climate change adaptation to come together, learn from each other, and identify shared interests and needs. The organizations involved mainly work at the grassroots level with poor and vulnerable people in the developing world, but the conference also attracts a growing number of government representatives.

One of the conference’s main themes was that stakeholders at the local and national levels must work together to foster locally grounded, community-based adaptation efforts. I elaborated on this theme in a video interview with IIED. Check it out below.

A slight breath of fresh air entered the UNFCCC climate negotiations this week in Bonn, Germany. Held in the old German parliament—which was designed to demonstrate transparency and light—the meeting took on a more open feel than the past several COPs and intersessionals.

Instead of arguing over the agenda, negotiators got down to work, discussing ways to ramp up countries’ emissions-reduction commitments now and move toward a 2015 international climate action agreement. Reaching these two goals is imperative. It was encouraging to hear delegates make progress across three key issues involved in achieving them:

1) “Spectrum of Commitments”

This idea—put forward by the United States—is that every country should determine its own national “contribution” to curbing global climate change and present it to the international community. A “spectrum” of various commitments would thus emerge, which could be included in some sort of formal agreement.

I recently had a frustrating experience. It all started during a casual conversation with one of my mother’s friends. After hearing a bit about my role as CFO of the World Resources Institute, my mother’s friend informed me that she regularly contributes to charities. In fact, she stated proudly, she only donates to organizations with “low overhead”– that is, to groups that spend the lion’s share of their funding on program expenses and only a small amount on fundraising and administrative costs. I couldn’t help but shake my head–not only because I disagreed with her, but because it’s a sentiment we hear all too often in the non-profit world.

Activist and fundraiser Dan Pallotta articulated this problem well in his March TED Talk, “The way we think about charity is dead wrong.” Pallotta explained that there are separate rulebooks for for-profit and non-profit companies in the United States. For-profits are judged on their growth and the quality of their products—which have the cost of necessary infrastructure or overhead baked into the cost of each product. Non-profits are evaluated on how little they invest in infrastructure rather than the quality of their work.

At WRI–and at all non-profits, for that matter–scrimping on essential infrastructure is short-sighted. This practice negatively impacts our work, our growth, and ultimately, our ability to change the world.

A new report from CERES draws a connection between water risk and hydraulic fracturing in the United States. The report adds an important dimension to the conversation about how energy use and water stress will play out in the years ahead.

The report, Hydraulic Fracturing & Water Stress: Growing Competitive Pressures for Water, brings together Aqueduct’s high-resolution water stress maps with FracFocus.org data on the location and water use of U.S. shale oil and gas wells. The complete map (see below) shows where potentially water-intense hydraulic fracturing is happening in water-stressed areas.

The results of the study are eye-opening: Almost half of the more than 25,000 oil and gas wells mapped by Ceres are in water basins with either high or extremely high water stress.

Stacy Kotorac, a project coordinator/research assistant with the Greenhouse Gas Protocol, also contributed to this blog post.

Low-carbon city development has become a central part of the Malaysian government’s strategy to meet its greenhouse gas (GHG) commitments. The country, currently ranked second in terms of emissions per capita in Southeast Asia, has committed to reduce the emissions intensity of its gross domestic product (GDP) by 40 percent from 2005 levels by 2020.

Many Malaysian cities have created ambitious, low-carbon visions in order to meet national targets. However, many cities don’t yet have a credible GHG inventory or a comprehensive blueprint to help them systematically implement and monitor low-carbon actions. Without such a framework, it is nearly impossible to establish baseline measurements, set goals, or measure progress.

That’s why the GHG Protocol is currently working with partners to develop a standard methodology, the Global Protocol for Community Scale Emissions (GPC), as well as an accompanying toolkit that cities will be able to utilize to plan for their low-carbon development. Last year, we released the GPC Pilot Version 1.0. Over the next six months, about 30 cities will pilot test it.

It’s been almost four months since the last UNFCCC negotiations in Doha, Qatar (COP 18). Countries decided in Doha to finalize the second commitment period of the Kyoto Protocol, wrap up a series of decisions on the Bali Action Plan, and outline a plan to establish an international climate agreement by 2015. Countries will gather this week in Bonn, Germany, for the first formal conversations since the Doha meeting.

This week’s intersessional is a low key, but important session. Negotiators will discuss two critical issues: How to substantially step-up the level of ambition by countries, companies, cities, and civil society; and how to ensure a strong international climate agreement by 2015. Progress on these two issues could bring the world one step closer to strong, international action to curb climate change.

Increasing Ambition

The final decision by all countries at COP 17 in Durban recognized that current GHG-reduction pledges are not adequate to keep global average temperature below 2 degrees C (the limit science says is necessary to prevent climate change’s most disastrous impacts). In Bonn, experts will put forth new ideas on how to ratchet up ambition in the short-term. Country representatives will also highlight best practices and success stories, in particular, the role that land use could play for enhanced mitigation and adaptation policies.

Within our lifetimes, the world could be free of widespread, extreme poverty, replaced instead with shared prosperity and environmental and fiscal balance. That was the vision World Bank President Jim Yong Kim outlined at his first Spring Meetings in Washington, D.C. last week.

In a period of economic uncertainty, social exclusion, and climate and environmental crises, these goals hold immense promise. At the same time, for an institution already grappling with its redefined role in the coming decades, the Bank’s current capacity to support this vision will be tested.

The Common Vision for the World Bank Group that was approved by the World Bank’s Development Committee on April 20th includes two goals the Bank will work towards:

  • alleviating extreme poverty by dropping the percentage of people living on less than U.S.$ 1.25 a day to 3 percent by 2030, and

  • promoting shared prosperity by fostering income growth of the bottom 40 percent of the population in every country

These two core goals are supplemented by the Bank’s understanding that they cannot be achieved without credible action to ensure environmental sustainability, especially on climate change.

This blog post was co-authored with Soffia Alarcon-Diaz, an intern with WRI’s Climate and Energy program.

Measuring and reporting greenhouse gas emissions (GHGs) across different sectors is no easy feat. But creating a national inventory of GHGs is one important step for countries to take toward managing them. Starting in 2014, many developing countries will begin providing more frequent updates to their national inventories under guidelines from the COP 17 Durban Platform. How can they best meet international reporting requirements and, more importantly, use the development of their national inventory systems to support domestic low-carbon growth?

In a new set of case studies (see the text box) we have documented experiences from Brazil, Colombia, India, Mexico, and South Africa—countries that have already made notable efforts to develop robust national inventory systems. Each study explores critical aspects of these countries’ inventory processes and provides lessons that could benefit other countries looking to further develop their own systems.

3 Attributes of Successful National Greenhouse Gas Inventories

Although each national inventory system is unique, the case studies reveal several common attributes of successful inventory improvement. Here are three: