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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.

This post was co-authored with Jenna Blumenthal, an intern with WRI’s Climate and Energy program.

As U.S. government officials take stock of last week’s Ministerial Meeting on Mobilizing Climate Finance and prepare for upcoming UNFCCC talks in Bonn, WRI’s Open Climate Network (OCN), along with Climate Advisers and the Overseas Development Institute, are taking a look back at U.S. efforts on climate finance. (See our new fact sheet).

Back in 2009, developed countries pledged to provide $30 billion in climate finance by the end of 2012 in order to help developing countries implement low-carbon, climate-resilient development initiatives. This funding period—which took place from 2010 to 2012—is known as the “fast-start finance” period.

Our analysis reveals two sides to the U.S. contribution of roughly $7.5 billion in fast-start finance: On one hand, it represents a significant effort to increase international climate finance relative to previous years, in spite of the global financial crisis. On the other, it is not clear that the entirety of the contribution aligns with internationally agreed principles, which stipulate that the finance be “new and additional” and “balanced” between adaptation and mitigation. In any case, the United States, along with other developed countries, is now faced with the challenge of scaling up climate finance to developing countries to reach a collective $100 billion per year by 2020.

This post originally appeared on ChinaFAQS.org.

The United States and China are the world’s two largest economies. They are also the two largest producers and consumers of coal, and the largest emitters of carbon dioxide. In recent years, however, their paths on coal have started to diverge.

Over the last few years, coal consumption has dropped dramatically in the United States, mainly due to low natural gas prices. In response to weak domestic demand, the U.S. coal industry has been rushing to find its way out to the international market. Last year, U.S. coal exports hit a historical high of 114 million metric tons.

However, it is worth noting that the shift away from coal in the U.S. may not be permanent. As my colleague, Kristin Meek, pointed out in an earlier blog post, coal use in the U.S. power sector was on the rise again towards the end of 2012, likely driven by the new uptick in natural gas prices.

On the other side of the globe, China’s appetite for coal continues to grow. In response, Chinese power companies are looking to tap the international coal market for sources that are more reliable and cost competitive. Among those markets is the United States. In 2012, China imported 290 million metric tons of coal. China was the third largest destination for U.S. coal exports, behind the Netherlands and the U.K.

Worldwide, one out of every five people lacks access to modern electricity. Affordability, quality of service, and social and environmental impacts pose great challenges in providing people with the power they need for lighting, cooking, and other activities. Good governance involving open and inclusive practices is essential to overcoming these pressing obstacles.

This is part two of a four-part blog series, “Improving Electricity Governance,” which explores the key components involved in effective electricity governance. The series draws on the experiences of WRI’s Electricity Governance Initiative, documented in a new report, “Shining a Light on Electricity Governance.” Read more posts in this series.

Three years after a political uprising overthrew the president of Kyrgyzstan, challenges still exist in the country’s energy sector. Before the revolution, the central Asian country suffered rolling blackouts, poor service, and skyrocketing prices, ultimately leading to nationwide revolts and the ouster of President Kurmanbek Bakiyev. Again this past winter, half of the people in the nation’s capital experienced a major blackout, leaving them without access to electricity during the coldest months of the year. The city still faces 900 outages per week.

High energy demand, outdated transmission equipment, and power theft all put increasing stress on energy supplies, but issues of corruption and basic transparency exacerbate the crisis. Civil society groups are turning their attention to these issues to help improve Kyrgyzstan’s energy situation.

These groups are working with a government initiative to open up the decision-making processes in a sector that has traditionally hidden behind closed doors. Their efforts to increase transparency are essential to creating meaningful reform in the Kyrgyz energy sector.

The Race Against Climate Change

This post originally appeared on the National Journal’s Energy Experts blog. It is a response to the question: “What’s holding back energy and climate policy?”

We are in a race for sure, but it is not a race among various national issues. It’s a race to slow the pace of our rapidly changing climate. The planet is warming faster than previously thought, and we cannot afford to wait for national politics to align to make progress in slowing the dangerous rate of warming.

Recent events, like the tragedy at Sandy Hook elementary school, propelled gun control front and center. Last year’s elections shifted the national conversation on immigration. Climate change, too, should demand the attention of our national leaders.

The evidence of climate change is clear and growing. In 2012, there were 356 all-time temperature highs tied or broken in the United States. As of March, the world had experienced 337th consecutive months (28 years) with a global temperature above the 20th century average. Global sea levels are rising and artic sea ice continues to shrink faster than many scientists had predicted.

There are indications that Americans are deepening their understanding about climate change, especially when it comes to its impacts. People are beginning to connect the dots around extreme weather events, rising seas, droughts and wildfires, which have been coming in increasing frequency and intensity in recent years. The National Oceanic and Atmospheric Administration calculated that weather-related damages in the United States were $60 billion in 2011 alone.

This piece was co-authored with Tara Shine, head of research and development at the Mary Robinson Foundation-Climate Justice.

We recently travelled to Santiago, Chile, a sprawling city of six million people just beyond the Andes. Our purpose was to attend the first sub-regional workshop of the Climate Justice Dialogue, a new initiative led by the World Resources Institute (WRI) and the Mary Robinson Foundation—Climate Justice (MRFCJ). But before we even made it inside the conference center, we were confronted by a poignant, real-life example of climate justice.

Upon arrival in Santiago, a taxi took us to a charming and quirky family-owned hotel. As we were welcomed at the concierge desk, we were surprised to find Chile’s Second National Communication among the tourist books and magazines.

National communications are reports submitted by countries to the United Nations Framework Convention on Climate Change (UNFCCC). They provide scientific information about national climate mitigation and adaptation measures, as well as project proposals that help increase a country’s resilience to the impacts of climate change. They’re important documents for climate negotiators and policymakers because they hold countries accountable for their commitments under the UNFCCC. They are not, however, something you would expect to find as recommended tourist literature.

We asked the hotel owner why he displayed this document so prominently . He responded with a wise smile, “Because it is important.” He then explained how climate change is already affecting Chile’s tourism industry: The retreat of Andean glaciers affects the availability of freshwater for irrigation and domestic use, mountain recreation, and for the animals and plants that depend on glacier-melt for survival. It also makes the glaciers—as well as the related fauna and flora—less accessible to tourists, affecting his revenue. He also expressed his concern over the inadequate response to climate change from the international community, the national government, and a Chilean middle class that’s engaging in unsustainable consumption patterns. He concluded that climate change is part of Chile’s current and future reality, and therefore should matter to anyone who cares about his country—including tourists.

This post also appears on TheCityFix.com.

Indian cities are urbanizing at an unprecedented scale and pace. Over the next few decades, India’s urban population is expected to increase significantly, from 377 million in 2011 to 590 million by 2030.

The problem is that the country’s existing urban transport infrastructure is already over-capacity. This fact–coupled with the alarmingly high rate of traffic fatalities, increasing air pollution and greenhouse gas emissions, congestion, and urban sprawl–has created a sense of urgency to improve the quality of life in our cities now for the benefit of future generations.

Against this backdrop, WRI’s Center for Sustainable Transport in India (EMBARQ India), in collaboration with the Brihanmumbai Electrical Supply and Transport Undertaking (BEST), held its first annual CONNECTKaro conference last week. The theme was two-fold: first, to “CONNECT” sustainable urban transport to urban development, and second, “Karo,” a Hindi word meaning to “do it”–to make it happen. Scaling sustainable transport and integrating it with land-use development is essential so that Indian cities remain dynamic engines of economic growth, whilst providing a high quality of life for residents.

The conference was a major success, attended by more than 220 people representing public transport authorities, government planning agencies, civil society organizations, private corporations, media, and academia. Additionally, more than 2,100 people watched the conference sessions via live webcast.

Through a dozen sessions spanning two days, conference participants discussed in detail how to scale and replicate a variety of sustainable urban transport and development solutions in Indian cities. Five key messages emerged from their deliberations:

Since the very first Earth Day more than four decades ago, the environmental movement has tackled a wide range of problems, including air pollution, contaminated water, deforestation, biodiversity loss, and more. But this Earth Day, I propose that there are two fundamental issues the movement must address over the coming decade if it is ever to defuse the tension between development and the environment. In fact, these two issues underlie many, if not most, of the world’s environmental challenges.

I’m referring here to the human quest for food and the human quest for fuel.

Unsustainable Food Production

Food production has significant―but often underestimated―impacts on the environment. Take climate, for instance: About one-quarter of the world’s annual greenhouse gas emissions are agriculture-related. In particular, nearly 13 percent of global emissions comes from livestock, fertilizer use, and farm-related energy consumption, while another 11 percent results from the clearing of forests and other ecosystems, primarily for agriculture.

This post originally appeared on the Climate Development and Knowledge Network’s (CDKN) website.

Having recently left the bustling streets and warm hospitality of Addis Ababa, Ethiopia, I’m taking a moment to reflect on all that I have learned at CDKN’s workshop on “Climate Finance in East Africa.” Representatives of government departments and research institutes from Ethiopia, Kenya, Rwanda, Tanzania, and Uganda–as well as members of the donor community and international think-tanks–reflected on their experiences and the challenges faced in mobilizing and effectively deploying climate change finance.

I was inspired by the sense of optimism and confidence among participants as they discussed the ways in which their countries are tackling the climate change challenge. And I was struck by the effort and considerable progress that these East African countries have already made, despite limited resources and numerous obstacles.

Climate Action in East Africa

For example, last month Kenya launched a holistic national climate change action plan, following a comprehensive planning process that brought together all key government ministries, subnational governments, civil society, the private sector, and development partners.

The World Bank’s annual spring meetings take place this week in Washington, D.C. One big topic on the agenda is how to update the World Bank’s “safeguard” policies. Created in the early 1990s, these policies ensure that the Bank considers the social and environmental effects of proposed projects. For example, the safeguards require those borrowing money to assess the project’s environmental impacts and to compensate households who are negatively affected.

The full suite of safeguards is now under review for the first time. Among other things, the Bank hopes to make its safeguard policies reflect changes in the global economic and political landscape that have occurred in recent decades.

World Bank Safeguards vs. National Safeguards

One question on the table is how the World Bank safeguards should interact with national systems already in place in recipient countries. Since the creation of the Bank’s safeguards, many countries have strengthened their own rules and institutions to ensure that large-scale projects are implemented in a manner that protects people and the environment. These include, for instance, laws requiring environmental impact assessments, or government agencies to oversee land use changes. Relying on these domestic systems can potentially improve protection of people and the environment. National laws, for example, allow governments and citizens to work within their own familiar structures, and they’re sometimes more appropriate for local circumstances than Bank policies.

This post was co-authored with Jamshyd Godrej, chairman of Godrej & Boyce Mfg. Co. Ltd and a WRI Board Member. It originally appeared in The Economic Times.

Ministers are gathering in New Delhi today to address an urgent challenge: how to unlock the full potential of clean energy to drive economic growth, expand energy access, and protect the climate. The 4th Clean Energy Ministerial — which brings together energy ministers and other delegates from more than 20 leading economies — is a critical opportunity to inject new life into the global clean energy transition.

While we’ve seen progress on renewable energy, the sector still faces barriers to increase financial support and create strong national policies that will enable it to flourish. First, some good news: The renewable energy market has blossomed in recent years. In just the last decade, global clean energy investment has increased five-fold, from $50 billion a year to more than $250 billion. And more than 100 countries have renewable energy targets in place.

India has set itself on a remarkable journey by ushering in renewable energy growth. The National Action Plan on Climate Change, launched in 2008, aims to have 15 percent of India’s electricity consumption from renewable energy by 2020. Currently, the country produces slightly more than 12 percent of its energy from renewables, putting it on track for that goal. India has been using various policy levers to advance renewable energy, including tax and generation-based incentives, capital subsidies, and feed-in tariffs. The Renewable Portfolio Obligations is also providing support for renewable energy developers. Even so, the country is not yet achieving its full potential — which is critical for the 400 million people who lack access to basic electricity.