Tag Archives: carbon
World Bank Looks at Global Carbon Pricing Systems
Posted June 3, 2013 It’s ironic considering all the attention on the struggles of the EU Emissions Trading System, but today over 40 national and 20 sub-national government jurisdictions have either implemented or are considering carbon pricing mechanisms. Global emissions trading schemes map via World Bank This wide-ranging assessment comes from no less an authority than the World Bank, which announced their findings this week in a new report “ Mapping Carbon Pricing Initiatives: Developments and Prospects. ” The Bank’s findings once again underling the growing momentum toward an interconnected global carbon market working to fight climate change and spur the transition to a global clean energy economy. Lessons Learned From EU Struggles Despite international failure to establish an international climate deal through the United Nations, the Bank sees individual carbon pricing initiatives developing faster than ever before – and learning lessons from the EU ETS . These markets are taking shape at the same time international prices on carbon are at historic lows and the prospect of coordinated international emissions reduction measures uncertain. “Even as the first generation of the carbon market stutters…it is progress at the country level that gives hope,” said Rachel Kyte , World Bank vice president for sustainable development. “Carbon pricing is emerging and carbon markets have a future.” Multiple systems feature novel system designs like pricing stabilization mechanisms to make them flexible and adjustable to changing economic situations that may have been unforeseen when they were created. The current glut of allowances and low prices in the EU ETS has been attributed to system inflexibility to handle reduced allocation demand after the economic recession. EU ETS allowance price chart 2008-2013 via World Bank Carbon Pricing Covering 20% Total Global Emissions These emerging schemes could make a massive impact on global emissions. As of 2013, the countries with functioning systems or carbon pricing mechanisms scheduled to start within the next few years collectively emit 10 gigatons of CO2 per year – equal to about 20% of global emissions, or the combined annual emissions of the US and EU. The Bank report highlights cap and trade systems in the EU, California, Kazakhstan , New Zealand, Quebec, the Regional Greenhouse Gas Initiative , and regional markets in Japan, as well as South Korea’s developing system . In addition, carbon taxes are cited in Australia , British Columbia, Denmark, Finland, Ireland, Norway, South Africa , Sweden, Switzerland, and the United Kingdom. Even more promising, the Bank’s report does not fully consider China’s fledgling system , which has begun pilot programs in major cities and will roll out nationally in 2020. “If China, Brazil, Chile, and the other emerging economies eyeing these mechanisms are included, carbon pricing initiatives could…cover almost half of total global emissions,” said Niklas Hohne of report co-author Ecofys. Severe Beijing air pollution image via Shutterstock Linkages And Expanded Targets Boost Value The Bank report also recognizes the value of international system linkages in stabilizing individual systems long-term. Linkages between the EU and Australia and California and Quebec , and potentially the EU and China , will create efficiencies and benefits for each system. However, the Bank cautions linkages need to be carefully timed to allow new systems to become established before connecting to other schemes. Bank analysts also note the growing trend of existing or scheduled systems expanding coverage of domestic emissions, with Australia and Korea now targeting 60% coverage, California eyeing 85% coverage , and New Zealand targeting 100% coverage within a few years. “There may not be a one-size-fits-all,” said Alexandre Kossoy , World Bank senior financial specialist. “But it is clear the foundation of the first generation of market-based instruments is informing what will constitute the future landscape of carbon pricing.” Does Hope Spring Eternal? Ultimately, it all comes down to climate, the ability to fund our transition to a sustainable future, and our inability to come to international agreement on climate policy. World Bank President Jim Yong Kim recently said climate change presents “serious consequences to the economic outlook” of international economies, and the Bank’s report acknowledges current emissions put us on the pathway to a devastating 3.5-4 degree Celsius temperature rise by 2100. If enough carbon pricing systems are online or planned by the next United Nations climate meetings, the power of international carbon markets as an economic and environmental stimulus may be too hard to ignore. Continue reading
World’s Carbon Markets: EDF, IETA Launch Online Resource On Emissions Trading Programs
By NAT KEOHANE | BIO | Published: JUNE 3, 2013 While Washington is stuck in gridlock, other jurisdictions around the world are moving forward on climate policy. Market-based approaches to cutting carbon are in place in jurisdictions accounting for nearly 10% of the world’s population. Above: areas shaded blue have emissions trading programs that are already operating; areas in green have programs that are launching or being considered. Market-based approaches to cutting carbon are already in place in jurisdictions accounting for nearly 10% of the world’s population and more than a third of its GDP. Many more jurisdictions are either moving ahead with market-based measures, or actively considering them. As interest grows around the world, policymakers are increasingly seeking information about the range of existing and proposed initiatives. In response, EDF has partnered with the International Emissions Trading Association (IETA) , a trade association that represents businesses involved in carbon trading and climate finance, to launch The World’s Carbon Markets: A case study guide to emissions trading . The online resource provides detailed information about key design elements and unique features of 18 emissions trading programs that are operating or launching around the world. EDF has also put together a quick reference chart that makes comparing the 18 programs even faster and easier. Growing interest in emissions trading Market-based policies are a proven way to limit carbon pollution and channel capital and innovation into clean energy, helping to avert the catastrophic consequences of climate change. While emissions trading programs around the world, like the ones we have looked at in detail, vary in their features, they all share the key insight that well-designed markets can be a powerful tool in achieving environmental and economic progress. The countries, states, provinces and cities highlighted in this report, which are moving ahead with strong action on climate change, constitute a vital and dynamic world of “bottom-up” actions that complement multilateral efforts such as the ongoing United Nations climate negotiations. Jurisdictions considering market-based approaches can use this new resource to learn from their growing number of peers already headed in that direction. We expect the site will also be of value for policy makers, academics, analysts, journalists, and colleagues in the NGO community and beyond. If you find the information in The World’s Carbon Markets case studies helpful, please share edf.org/worldscarbonmarkets with your networks. Continue reading
Gas From Woody Biomass Promising Way To Reduce Emissions
Two processes that turn woody biomass into transportation fuels have the potential to exceed current Environmental Protection Agency requirements for renewable fuels, according to research published in the Forest Products Journal and currently featured on its publications page. The Environmental Protection Agency’s standard for emissions from wood-based transportation fuels requires a 60 percent reduction in greenhouse gas emissions compared to using fossil fuels. The standards don’t just concern greenhouse gases generated when biofuel is burned to run vehicles or provide energy: What’s required is life-cycle analysis, a tally of emissions all along the growing, collecting, producing and shipping chain. The special Forest Products Journal issue does just that for energy produced in various ways from woody biomass. For instance, two processes for making ethanol reviewed in the issue – one a gasification process using trees thinned from forests and the other a fermentation process using plantation-grown willows – reduces greenhouse gas emissions by 70 percent or better compared with gasoline. In contrast, producing and using corn ethanol reduces greenhouse gas emissions 24 percent compared to gasoline, according Argonne National Laboratory research published in 2011. For the publication, researchers from the 17 research institutions that make up the Consortium for Research on Renewable Industrial Materials determined the life-cycle emissions of 15 processes where woody biomass was turned into liquid fuel, burned directly to create heat, steam or electricity, or processed into pellets for burning. The common advantage of these processes over fossil fuels is that trees growing in replanted forests reabsorb the carbon dioxide emitted when woody biomass burns as fuel in cars or other uses, said Elaine Oneil, a University of Washington research scientist in ecological and forest sciences and director of the consortium. While fossil fuels cause a one-way flow of carbon dioxide to the atmosphere when they burn, forests that are harvested for wood products or fuels and regrown represent a two-way flow, into and back out of the atmosphere. The processes reviewed have the added advantage of using woody debris not only as a component of fuels but to produce energy needed for manufacturing the biofuel. The fermentation process to produce ethanol, for example, ends up with leftover organic matter that can be burned to produce electricity. Only one-third of the electricity generated by the leftovers is needed to make the ethanol, so two-thirds can go to the power grid for other uses, offsetting the need to burn fossil fuels to produce electricity. This is among the reasons that ethanol from plantation-grown feedstock using the fermentation process approaches being carbon neutral, that is, during its life cycle as much carbon is removed as is added to the atmosphere, according to Rick Gustafson, UW professor of environmental and forest sciences and a co-author in the special issue. The researchers looking at the fermentation process also took into account such things as water consumption. They found that the process – which among other things needs water to support the enzymes – uses about 70 percent more water per unit of energy produced than gasoline. A biofuel industry using woody material will be a lot less water intense than today’s pulp and paper industry – still, water use should be taken into account when moving from pilot biofuel production to full-scale commercialization, Gustafson said. “The value of life-cycle analysis is that it gives you information such as the amount of energy you get in relation to how much you put in, how emissions are affected and the impacts to resources such as land and water,” Oneil said. In the U.S. last year, some 15 facilities produced about 20,000 gallons of fuels using cellulosic biomass such as wood waste and sugarcane bagasse, according to a U.S. Energy Information Administration website. The administration estimates this output could grow to more than 5 million gallons in 2013, as operations ramp up at several plants. In the special issue, the biofuels analyzed came only from forest residues, forest thinnings, wood bits left after manufacturing such things as hardwood flooring or fast-growing plantation trees like willow. That’s because, from a greenhouse emissions perspective, it makes no sense to produce biofuels using trees that can be made into long-lived building materials and furniture, said Bruce Lippke, UW professor emeritus of environmental and forest sciences, who oversaw the contents of the special issue. “Substituting wood for non-wood building materials such as steel and concrete, can displace far more carbon emissions than using such wood for biofuels,” Lippke said. “It’s another example of how life-cycle analysis helps us judge how to use resources wisely.” The modeling and simulations used for life-cycle analysis in the special Forest Products Journal issue can be used to evaluate other woody materials and biofuel processes in use now or in the future, with the models being refined as more data is collected. The data also will be submitted to the U.S. Life Cycle Inventory Database of the U.S. Department of Energy’s National Renewable Energy Laboratory, which has data available for everyone to use on hundreds of products. Read more at http://scienceblog.com/63592/gas-from-woody-biomass-promising-way-to-reduce-emissions/#RumeUVbtlPtxkUoF.99 Continue reading
