coal

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.

New Data Reveals Rising Coal Use

New data from the U.S. Energy Information Administration (EIA) reveals a troubling trend: Coal-fired power generation—and its associated greenhouse gas emissions—were on the rise as 2012 came to an end.

According to the data, which was released yesterday, natural gas prices have risen significantly since April of 2012, prompting a rise in coal-fired electric generation (see figure below). This increase marks a dramatic change from the trends we’ve seen in the United States over the past several years. U.S. energy-related carbon dioxide (CO2) emissions from the power sector had been falling, mostly due to more electricity being generated by renewables, slowed economic growth, and a greater use of low-cost natural gas, which produces roughly half the CO2 emissions of coal during combustion.

The new uptick in gas prices and coal use suggests that we cannot simply rely on current market forces to meet America’s emissions-reduction goals. In fact, EIA projects that CO2 emissions from the power sector will slowly rise over the long term. To keep emissions on a downward trajectory, the Administration must use its authority to prompt greater, immediate reductions by putting in place emissions standards for both new and existing power plants.

The latest International Energy Agency’s (IEA) Medium-Term Coal Market Report 2012 re-confirms the dangerous path the world is on–a path of increasing dependence on coal, which carries serious environmental risks for people and the planet. According to the report, the world will burn 1.2 billion metric tons more coal per year by 2017 compared to today, surpassing oil as the world’s top energy source.

Coal already contributes 40 percent of global greenhouse gas emissions–the IEA projects this figure to grow to 50 percent over the next 25 years. Greenhouse gas emissions–which again reached record levels this year–are driving global climate change, the impacts of which we’re already seeing through more extreme weather events, droughts, and rising sea levels.

To alter course and avoid the worst impacts of climate change, we need a new approach that’s grounded by stable long-term policies, investments, and innovation that leads to a global transition to clean energy. While it may seem that the road to greater coal production is inevitable, the reality is that we can avoid this pathway–if we start now.

This week, the Natural Resources Defense Council (NRDC) released a new proposal detailing how they would like the U.S. Environmental Protection Agency (EPA) to reduce greenhouse gas (GHG) emissions from existing power plants. Their analysis predicts that their proposal would reduce power sector GHG emissions 26 percent below 2005 levels in 2020, or 17 percent below 2011 levels.

Standards for existing plants are essential if the United States is to make meaningful strides toward a low-carbon economy. NRDC’s proposal provides a valuable contribution to the ongoing discussion about how best to design these standards.

U.S. Emissions Are on an Unsustainable Path

Even though the United States has made progress on reducing emissions – most notably through the Obama administration’s new standards for passenger vehicles – we need more action if the country is to prevent climate change’s worst impacts. While U.S. energy emissions have fallen nearly 9 percent below 2005 levels, these trends are not expected to continue without ambitious new climate and energy policies. This is the clear takeaway from both the U.S. Energy Information Administration’s Annual Energy Outlook 2012 and a recent analysis by Dallas Burtraw and Matthew Woerman at Resources for the Future.

This post originally appeared on Bloomberg.com.

The reality of a world with more extreme weather events, rising seas, and longer droughts is becoming clearer by the day. Even more troubling is that we are on course for still greater changes to our planet in the years ahead.

That’s the key takeaway from a major new report by the World Bank, which examines the impact of a 4 degrees Celsius warmer world. At the same time, new analysis from WRI finds that there are nearly 1,200 proposed coal plants worldwide. If these plants come online, our chances of staying within 2 degrees of warming—the level recommended to prevent the worst consequences of climate change—would be nil.

4 Degrees of Warming Could Reshape Our World

The World Bank is not prone to hyperbole. Its warning that we could be heading to 4 degrees of rising global temperatures should be taken extremely seriously by leaders around the world. The World Bank’s assessment reaffirms what many of us already understand: scientific evidence of human-caused global warming is unequivocal. Given that it took little more than 4 degrees of cooling to create the last Ice Age, it would be hard to overstate how 4 degrees of warming could reshape our world by the end of this century.

Coal-fired power plants are a major source of greenhouse gas emissions—one that could be increasing significantly globally, according to new analysis from the World Resources Institute.

Several months ago, WRI began compiling and analyzing information about proposed new coal-fired plants in order to assess potential future risks to the global climate. We released our findings today in the Global Coal Risk Assessment working paper. Our research shows that 1,199 new coal-fired plants with a total installed capacity of 1,401,268 megawatts (MW) are being proposed globally. If all of these projects are built, it would add new coal power capacity that is almost four times the current capacity of all coal-fired plants in the United States.

View the locations of proposed coal-fired power plants by country in our interactive map below.

This post was co-authored by Dominique Labaki, an intern with WRI’s External Relations department.

Last Friday, experts from the ChinaFAQs Network and top media representatives participated on a press call on climate and energy policy under China’s incoming president, Xi Jinping, and other new leaders. The participants focused on the drivers underlying China’s energy and climate policies and actions. Key issues included whether the country can sustain its renewable energy growth, confront rising coal demand, and follow through on its climate change targets in the 12th five-year plan. All of these issues are emerging as the country faces its first major economic slowdown in more than a decade. This blog post highlights experts’ discussion during the press call.

New Leadership and the 12th Five-Year Plan

Kenneth Lieberthal, Senior Fellow in Foreign Policy and Global Economy and Development at Brookings, opened the discussion. As he explained, nearly 70 percent of China’s top leadership positions are expected to change in November, but the make-up of the Standing Committee of the Politburo remains uncertain. In Lieberthal’s view, China’s new leaders will first focus on domestic challenges, primarily around re-balancing the economy.

What Is the Future of King Coal in China?

This post originally appeared on WRI’s ChinaFAQs site.

When it comes to coal consumption, no other nation comes close to China. The country reigns as the world’s largest coal user, burning almost half of the global total each year. About 70 percent of China’s total energy consumption and nearly 80 percent of its electricity production come from coal, and its recent shift from being a historical net coal exporter to the world’s largest net coal importer took only three years.

China’s great thirst for coal is undeniably troubling from a sustainable development standpoint. However, the situation may be changing. I recently joined three other experts to speak at a Congressional briefing entitled, “Why China Is Acting on Clean Energy: Successes, Challenges, and Implications for U.S. Policy.” While my fellow speakers spoke about the progress of clean energy development in China, I sought to explain how the growing constraints on coal development are acting as one factor pushing China to move more aggressively towards clean energy.

Listen to the recording of WRI’s press call on “China’s Leadership Transition and Implications for Energy and Climate.

On June 25, the U.S. Energy Information Administration (EIA) released the 2012 Annual Energy Outlook (2012 AEO) – the same day the public comment period closed on the Environmental Protection Agency’s (EPA) proposed New Source Performance Standards (NSPS) for new power plants. The NSPS proposal marks EPA’s first step toward controlling carbon pollution from stationary sources, and the agency received a record-breaking more than two million comments supporting the rule. EPA will take the comments it receives into consideration before finalizing the rule later this year. (Get more information on the proposed rule, including WRI’s official comment).

This post was written by Nicholas Bianco, Senior Associate, WRI, and Rolf Nordstrom, Executive Director, Great Plains Institute

We are launching a new online tool, the Power Almanac of the American Midwest, that will assist government officials, industry leaders, energy analysts and others in making informed energy decisions in the region. The Almanac integrates key energy and environmental data from some 50 disparate sources, tailored to the Midwest region, in a graphic and easy-to-use way.

The Almanac is built around a dynamic interface that allows users to explore the power sector through interactive Google maps, graphs, and charts. You can use it to learn more about an individual coal mine or power plant, or to compare wind and solar resources in the Midwest to the rest of the United States. You will also find a range of other useful background, including up-to-date information on relevant state and federal energy policies.