Climate Smart

Following EU Lead to Regulate Methane Emissions

This week, ExxonMobil estimated that methane leakage from its oil and gas oil field activities should fall by 30 percent by 2025 –contributing to a total decline of 12 percent company wide -- as it brings its overall carbon intensity targets for methane and flaring emissions down 40 to 50 percent. That target is unacceptably modest, even compared to its peer oil companies. But ExxonMobil’s lack of climate ambition is symptomatic of a larger problem. The United States and Europe will need to align methane policies.

Sinking Future for Frontier Oil and Gas Exploration

Denmark’s announcement that it will phase out oil and gas production in its waters by 2050 and cancel all future licensing of acreage for oil and gas exploration may be symbolic given the country’s shrinking number of prospective areas but it is significant nonetheless. It is the largest oil and gas producer to set a firm end date for oil and gas development and builds on a trend of developed nations working towards ending oil exploration within their national borders including New Zealand, France, and Belize. The Danish decision will add pressure to other countries like Norway to rethink their oil and gas policies in the wake of commitments to climate change action. Several oil producing countries have failed to generate strong interest in auctions for exploration licenses recently amid flagging oil prices, including notably Brazil whose offering of exploration acreage failed to attract bids from the international oil majors in late 2019.

South-South Coal: If Recipient Countries Go Green, so Would the BRI

China’s recent pledge to achieve ‘net-zero’ emissions by 2060 garnered much international attention. Europe and Japan are already committing to net zero targets that phase out most coal usage by 2030, and a re-entry of the United States into the Paris Agreement will mean greater pressure on China to exit from coal. China’s top academic experts are suggesting the country’s coal use needs to fall to 5 percent or less by 2050, unless coupled with carbon capture and storage. While China’s pledge covers emissions within its own territory, it continues to accumulate a major footprint overseas with its financing of coal-fired power plants. China’s external financing of coal is likely to face greater scrutiny as well with a growing number of countries and international institutions pledging to stop the funding of coal projects.

G-20 Stimulus 101 - Focusing on Buildings to Build Back Better

When leaders of the G20 met this weekend, they appeared to focus heavily on the major challenge to the global economy: a second wave of the global pandemic and the possibility of breakthrough vaccine. But always in the wings of any global economic discussion is the longer-term challenge of tackling the climate crisis. As G-20 countries consider additional economic stimulus to tackle both crises, our research shows that energy efficiency of buildings (BEE) is a comprehensive solution that can both create new, green jobs while providing a major step towards decarbonizing economies. Both the United States and China have targeted BEE in past stimulus spending. With the G-20 countries pledging to enhance their commitments under the Paris Agreement, including BEE would offer countries multiple benefits.

U.S. Election Results: Now What for Climate?

The website “Restoring American Leadership” which chronicles the transition plans of U.S. President Elect Joe Biden includes a vision specifically on climate change. It calls on the United States to go further than just rejoining the Paris Climate Agreement to build “a more resilient, sustainable economy – one that will put the United States on an irreversible path to achieve net-zero emission, economy-wide, by no later than 2050.” The plan references multiple ways to accomplish net zero goals including promoting climate smart agriculture, building greener and more resilient public transportation infrastructure, and decarbonizing the power sector as well as creating additional union jobs via a major program upgrading existing buildings.

The transition planning, as described, misses the opportunity to put U.S. actions into a global perspective. We offer some suggestions for the new administration, based on the Climate Policy Lab’s research, on how to marry national domestic climate policy with international challenges and opportunities.

Why China needs a carbon cap to achieve net zero by 2060

China’s leaders are meeting this week to set the country’s long-term goals. An important element of the process will be the country’s next Five-Year Plan (FYP), which provides a roadmap and window into China’s vision for itself and its economy. This year’s FYP is particularly significant for the world because it will explain how the Chinese government plans to reach its newly announced target of zero net carbon emissions by 2060. Previous plans have emphasized the need for China to promote technology innovation self-sufficiency including in the important area of energy as well as to set targets for non-fossil energy, energy efficiency, coal caps, and carbon intensity. New energy technology, including electric and automated cars, renewable energy, and batteries, featured widely in China 2025, the country’s widely disseminated industrial plan. China’s 12th FYP targeted new energy vehicles as one of seven strategic industries, allocating billions of dollars to their development and promotion.

Footing the Bill for Renewable Energy Expansion: Lessons from Germany and China

As China prepares to peak its carbon emission before 2030 and achieve carbon neutrality before 2060 as recently announced by President Xi Jinping and Germany readies its participation in Europe’s plans to become climate neutral by 2050 via $572 billion in stimulus funds, the question of how best to foot the bill to promote new ambitious government targets for renewable energy will be back front and center.

Planning for “Blowing in the Wind”

In 2022, the view from the windows of the hourly flights between Washington DC and Boston will change as wind machines appear off the northeast coast. The excitement around offshore wind intensified this week as the oil major, BP purchased a 50% share in two proposed windfarms off New York and Massachusetts from Norway’s Equinor, a giant energy company turned wind developer, in a $1.1 billion deal. This sale demonstrates the significance of the offshore wind sector (OSW) as energy giants like Equinor and BP recognize the future importance of large-scale renewables.

The Important Outcomes of Mission Innovation: First Evidence

It’s been over ten years since the 2009 financial crisis economic stimulus packages targeted clean energy companies and today’s headlines highlight the payoff. Clean energy companies outperformed the S&P 500 in 2019 and looks poised to payout even more to investors in 2020. Tesla received a $465 million federal loan during the U.S. 2009 stimulus to design electric vehicles and begin manufacturing and its market capitalization surpassed that of ExxonMobil earlier this year. Tesla is not the exception to the rule. A comprehensive study of the US Department of Energy’s SBIR grant program found that the awards led to positive impacts on patenting and revenue innovative companies.

Evidence-based insights from climate policy analysis

Follow us on social media

Contact CPL