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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.

The 1992 Earth Summit was a bright moment for the environmental movement. For the first time, presidents and prime ministers—more than 100 in all—were “coming together to save the earth,” as a headline on the cover of Time magazine put it. What’s more, the U.N.-led conference in Rio de Janeiro yielded some genuine results. Among them were major global treaties on the climate and biodiversity. Rich and poor countries alike also made a broad new commitment to sustainable development— as spelled out in the Rio Declaration and an accompanying “action plan.”

Was it too much to hope that humanity had turned a corner?

Unfortunately, the answer to that question appears to be yes. Despite some progress, the world is still waiting for the global response that the original Earth Summit seemed to promise— a promise that will now be revisited, as thousands of representatives of government, civil society, and business return for the Rio+20 conference.

What's Happening at Rio+20: June 14th

The Rio+20 informal sessions kicked off this week, and WRI’s experts are on the ground for all the action. Each day, we’ll bring you highlights of upcoming WRI events. Check out the details below on what we’ve got going on during the informal sessions tomorrow. And be sure to visit the full list of all WRI events at Rio+20.

This post was originally published in Portuguese on EMBARQBrasil.org.

As world leaders gather to address global sustainability at Rio+20, the summit’s host city, Rio de Janeiro, just undertook its own green initiative—it launched its first Bus Rapid Transit (BRT) corridor.

The lives of millions of cariocas, Rio de Janeiro residents, have already started to change with the opening of the Transoeste, the city’s first BRT corridor. The public transit system, developed with assistance from EMBARQ – WRI’s Center for Sustainable Transportation, expects to help hundreds of thousands of Rio residents, providing them with safer transport, shorter commutes, and less pollution.

With the first meeting of the Green Climate Fund (GCF) fast approaching, two regional groups – Asia-Pacific and Latin America and the Caribbean – have yet to nominate their Board members. Negotiated over the last two years, the GCF is expected to deliver large-scale finance to developing countries to address climate change. Without completing the nominations, though, the Board cannot begin the important task of making the “main global fund for climate change finance” operational.

Earlier this year, WRI and Climate Analytics facilitated a meeting in New York City of representatives from prospective Board member countries and others involved in the Fund’s design (see summary note). Participants exchanged ideas and perspectives on the Board’s program of work for 2012 and priorities for its first meeting. In addition to the basic administrative arrangements – like selecting a host country and establishing a secretariat – the Board needs to do the following in 2012:

Companies around the world are increasingly measuring and managing their greenhouse gas (GHG) emissions in response to drivers like consumer preference, purchaser demands, and sustainability goals. As a growing number of Asian companies look to manage their emissions, they’ll require training and resources available in their own languages and cultural contexts. To that end, the Greenhouse Gas Protocol recently held a week-long training session in Delhi, India to further build Asian companies’ capacities to measure and curb emissions.

Training participants included government representatives, business and industry council leaders, and NGOs from India, Indonesia, Malaysia, Nepal, the Philippines, Thailand, and Vietnam. The workshop focused on providing those in the region with tools to teach companies how to develop GHG inventories based on the GHG Protocol Corporate Standard and establish programs to measure and report their emissions. The Program Design Course provided a forum for participants to share experiences and future plans, and identified the steps involved in designing a blueprint to establish their own programs. The course drew on case studies from existing corporate GHG reporting programs like the Brazil GHG Protocol Program, the Mexico Greenhouse Gas Program, the Israel Voluntary Greenhouse Gas Registry, and the former U.S. EPA Climate Leaders Program, all of which are based on the GHG Protocol.

With its high reliance on manufacturing, mining, and agriculture, South Africa’s economy runs on fresh water. Recent projections estimate a startling 17 percent gap between water demand and supply in the country by 2030. Even more concerning, the areas most affected, the Gauteng and Vaal River regions, are also the most economically significant: According to the Department of Water Affairs and Forestry, these two areas produce more than 50 percent of South Africa’s wealth and supply more than 80 percent of the country’s electricity requirements (more than 50 percent of all the electricity generated in Africa).

As the global summit in Rio approaches, negotiations are still in flux, but some ideas that could advance the global sustainability agenda are gaining momentum.

One such idea is the Sustainable Development Goals (SDGs), which are emerging as a potentially significant outcome with global policy implications for the post-2015 development agenda. With the Millennium Development Goals (MDGs) set to expire in 2015, the idea is for governments to launch a process in Rio to develop broader SDGs that would complement or succeed them.

The MDGs have had a laudable impact on reducing the proportion of the world’s people living in extreme poverty. But they have also been criticized– fairly – for failing to address some key drivers of poverty. These include environmental issues—such as climate change and resource scarcity—that disproportionately impact the poor and most vulnerable, as well as the inequitable distribution of wealth, income, and opportunity.

This is a two-part series on expanding access to clean energy in developing countries. Check out the first installment.

Accessing reliable energy is one of the greatest obstacles the developing world faces. Globally, about 1.3 billion people go without electricity, while 2.7 billion lack modern energy services. Providing these populations with energy is difficult—ensuring that generation occurs in environmentally sustainable and cost-effective ways makes the task significantly more challenging.

Expanding clean energy access has been a big part of the conversations during this week’s Asian Clean Energy Forum, organized by the Asian Development Bank and USAID in partnership with WRI. The talks mirror discussions that clean energy project developers and financiers had at a March 2012 workshop that was organized by WRI and the DOEN Foundation. Knowledge from this group and demonstration of their business models showcase the key elements to in implementing successful clean energy projects.

What is the best way to protect vulnerable rural communities from the damaging impacts of climate change? Insurance could be an answer, but it raises a number of difficult questions.

To illustrate, the New York Times recently ran a story, “Report Says a Crop Subsidy Cap Could Save Millions.” The piece discusses a new U.S. Government Accountability Office (GAO) report that investigated the costs and distributive effects of the federal insurance program that protects farmers against crop failure and low market prices. This is a costly program for the federal government – farmers pay only 38 percent of the premiums, and the rest is covered by federal subsidies. Payouts are skewed toward the largest farms, which may receive very large payments because there is no subsidy cap. The cost to U.S. taxpayers in 2011 was $7.3 billion.

This is a two-part series on expanding access to clean energy in developing countries. Tune in tomorrow for the second installment, which will highlight specific ways institutions can implement successful clean energy projects.

This week, key leaders from the policy, industry, government, NGO, banking, and civil society sectors are gathering in the Philippines for the 7th annual Asian Clean Energy Forum (ACEF). The event, organized by the Asian Development Bank and USAID, aims to foster discussions about how to scale up clean energy initiatives and curb climate change in Asian nations.

One the forum’s key themes is access to clean energy. In March 2012, the World Resources Institute and the DOEN Foundation also organized a workshop focused on innovative practices in providing access to clean energy in developing countries (check out the new video about this forward-thinking event). The workshop brought together an inspiring group of practitioners, project developers, and financiers who are all successfully implementing clean energy access projects in communities across the world. These practitioners are bringing efficient cook stoves to Africa, solar home systems to India, and small-scale hydro to Indonesia – reaching poor rural communities who are in great need of clean energy solutions.