Capping or taxing fossil fuels at import or production

Andrea and friends in red and blue light

Responding to a Nature article mentioned here before, George Monbiot has raised the issue of limiting fossil fuel extraction as a way to gauge the seriousness of governments in fighting climate change. It’s an idea with some virtues, both on climate change and energy security grounds.

Targeting emissions means keeping track of a mind-boggling array of activities: from cement manufacture to vehicle use to landfill gasses. By contrast, targeting fossil fuels would mean dealing with a modest number of firms. Instead of applying a carbon tax or cap-and-trade system to emissions, the alternative would be to use those instruments for fossil fuel imports and production. Doing so would require only that the output from gas fields, oil fields, and coal mines be recorded, along with imports of fuels. In the tax scenario, each fuel would require payments proportional to the greenhouse gasses it will produce when burned. In a cap-and-trade scheme, a set amount of carbon would be permitted to be extracted from the ground or imported, with firms competing for the permits in auctions. This would have the same prioritization effect as a carbon tax on emissions: firms that absolutely needed particular fuels would be willing to bid for permits, while those with alternatives would start to employ them.

Ideally, the scheme would also incorporate land-use change. Those wanting to convert land rich in biomass into something else would need to pay a tax or buy credits equivalent to the gasses being released. Conversely, firms planting forests on land previously poor in biomass could be given grants (under a tax scheme) or permits (under a cap-and-trade scheme).

It might also make political sense to differentiate between imports and domestic production, with the former getting stricter treatment. That would somewhat lessen the opposition of domestic industry, while also accelerating the movement of the state imposing the policy towards energy independence. It would probably be less economically and environmentally effective, but it might be a mechanism for gaining domestic support, while still making it clear that the overall objective is to reduce fossil fuel use to zero. Such a policy could also be justified with reference to higher volatility in fossil fuel prices and availability from abroad, as well as the implicit subsidies to users of imported fossil fuels in the form of military aid and military operations in oil-producing regions. Of course, there is a good chance that it would violate the equal treatment provisions in agreements like NAFTA and the enabling legislation for the WTO.

In the event that carbon capture and storage proves to be a safe, economically viable, and effective technology, it could easily be incorporated into such a system. You would simply make payments or grant permits to firms doing the storing, contingent on them providing whatever maintenance the sites require.

By creating incentives for an unending push towards the non-use of fossil fuels, such policies would make it clear that our ultimate objective must be complete global carbon neutrality. Nothing else is compatible with long-term climatic stability.

[Update: 8 March 2010]. BuryCoal.com is a site dedicated to making the case for leaving coal, along with unconventional oil and gas, underground.

U.S. Submission on Copenhagen Agreed Outcome

Dog chain

In preparation for the upcoming UNFCCC meeting in Copenhagen, various parties to the agreement have made submissions, outlining their perspectives on the negotiations. The position of the United States (PDF) is now available.

I don’t personally have time to keep track of the details of all the various proposals. Furthermore, the alliances formed between negotiating parties may prove to be the most important element in determining the outcome of the meeting. Nonetheless, I thought it would be of interest.

Australia’s carbon price delayed

When Australian Prime Minister Kevin Rudd came to power, it was hailed as a victory against climate change, given the inaction of his predecessor and the contents of the Rudd platform. Disappointingly, a key element of that has how been put on hold for a year, supposedly because of the ongoing economic crisis. Australia’s emissions trading scheme (ETS) will now launch in 2011, rather than July 2010, as originally planned.

Personally, I think it is foolish to delay carbon pricing on account of the credit crunch. We want to be rebuilding national economies in a manner complimentary to climatic stability. Also, the less time we give ourselves to increase carbon prices to the necessary levels, the more painful the eventual adjustment will be. Given that prices were to be set at $7 per tonne for the first year, the policy would not have been an excessive burden on industry, even if the funds weren’t recycled back via tax cuts elsewhere or investments in low-carbon infrastructure. A moderate carbon price now thus serves the dual purpose of alignment economic redevelopment more with environmental goals, while stretching out the total timeline across which adjustments will be made.

Like Canada, Australia has some of the highest per-capita emissions in the world. That means they bear special historical responsibility for the climate change problem. It also means they should have more opportunities for low-cost reductions in emissions. Both ethical and economic logic suggest that this delay is a mistake.

The Global Climate Coalition and climate change denial

Kid with a fake nose and glasses

Some interesting evidence has emerged about the artificial ‘debate’ that has been created about the reality of human-induced climate change. Documents filed in a federal lawsuit reveal that the scientists working for the Global Climate Coalition – a fossil fuel industry front group that sought to prevent action on climate change – were themselves convinced of the reality of the problem. Back in 1995, they advised in an internal paper that: “The scientific basis for the Greenhouse Effect and the potential impact of human emissions of greenhouse gases such as CO2 on climate is well established and cannot be denied.”

This contrasts sharply with what the group said in public, and what they probably said to politicians while lobbying. It helps to demonstrate that the tactic here isn’t appropriate scientific skepticism, but simply a rearguard action to delay climate change mitigation policies. They have certainly succeeded in confusing some politicians with an ideological bent that predisposes them to rejecting climate policies. For instance, Republican Representative for Minesota Michele Bachmann has publicly expressed an absurd position on the science of climate change, while also calling for those who are opposed to climate legislation to be “armed and dangerous” and ready to “fight back hard” against legislation like the Waxman-Markey bill.

Emissions permits for new entrants

One proposed element for a cap-and-trade system is holding back some permits for ‘new entrants.’ Basically, this would mean preemptively grandfathering emissions from certain types of new facilities. Depending on how it was done, it seems like it could be either environmentally beneficial or harmful. If the overall cap for any year is set below the level of emissions last year, on a downward trajectory compatible with stabilizing concentrations at a safe level, reserving some credits for new entrants would force other firms to bid for fewer permits, raising prices and increasing the number of mitigation activities that are worth undertaking. Conversely, if this is used as an excuse to increase the cap, it might impede the transition to a low-carbon future.

There is also the issue of complexity. It seems likely that special treatment for new entrants will lead to weird Enron-style accounting trickery. The more complicated a carbon pricing scheme becomes, the easier it is to do hidden favours, and the harder it is to transparently assess what is going on.

More disclosure for Canadian mining

Pigeons eating

Due to a recent federal court ruling, a long-standing disclosure exemption for the mining industry has been repealed. Previously, mining firms were not obliged to determine and disclose the toxic compounds present in their waste rock and tailings ponds. Apparently, environmental groups have been seeking to get rid of the exemption for sixteen years. American firms have had to obey similar disclosure rules for a decade now.

Data going back to 2006 will be made available on Canada’s National Pollutant Release Inventory (NPRI).

Biofuels and nitrous oxide

In theory, biofuels are an appealing climate change solution. They derive the carbon inside them from atmospheric CO2 and their energy from the sun. They can be used in existing vehicles and generators, and store a lot of energy per unit of volume or weight. The raw materials can be grown in many places, without massive capital investment. Of course, recent history has given scientists and policymakers an increasingly clear understanding of the many problems with biofuels. A report (PDF) from Scientific Committee on Problems of the Environment (SCOPE) of the International Council for Science (ICSU) concludes that, so far, biofuel production has actually produced more emissions than using fossil fuels would have. Partly, this is on account of the nitrous oxide emissions associated with the use of artificial fertilizers in agriculture. Over a 100 year period, one tonne of nitrous oxide causes as much warming as 310 tonnes of carbon dioxide. Corn produces especially large amounts of nitrous oxide, because it has a shallow root system and only takes in nitrogen for a few months each year.

It is possible that better feedstocks, agricultural techniques, and biofuel production processes will eventually make these fuels ecologically viable. Not all transportation can be electrified, and there will probably always be industrial processes that require petroleum-like feedstocks. Nonetheless, it must be recognized that the world has been going about biofuel production in the wrong way. That is something that should be borne in mind particularly by the citizens of states that are lavishing government support on them, both in the form of subsidies and by mandating that they comprise a certain proportion of transportation fuels.

Counting greenhouse gas emissions

Wood frame in a garden

Greenhouse gas emissions figures, as dealt with in the realm of public policy, are often a step or two removed from reality.

For instance, reductions in emissions are often expressed in relation to a ‘business-as-usual’ scenario, by governments wanting to flatter the results of their mitigation efforts. That means, instead of saying that emissions are X% up from last year, you say that they are Y% down from where they would have been in the absence of government action. Since the latter number is based on two hypotheticals (what emissions would have been, and what reductions arose from policy), it is harder to criticize and, arguably, less meaningful.

Of course, the climate system doesn’t care about business-as-usual (BAU) projections. It simply responds to changes in the composition of the atmosphere, as well as the feedback effects those changes induce.

The second major disjoint is between the relentless focus of governments on emissions directly produced by humans, compared with all emissions that affect the climate. For example, drying out rainforests makes them less biologically productive, leading to more greenhouse gasses in the atmosphere. Similarly, when permafrost melts, it releases methane, which is a powerful greenhouse gas. It is understandable why governments don’t generally think about these secondary emissions, largely because of the international political difficulties that would arise if they did. Can Canada miss its greenhouse gas mitigation targets because of permafrost melting? Who is responsible for that melting, Canada or everyone who has ever emitted greenhouse gasses? People who have emitted them since we learned they are dangerous?

While the politics of the situation drive us to focus on emissions caused by voluntary human activities (including deforestation), we need to remain aware of the fact that the thermodynamic balance of the planet only cares about physics and chemistry – not borders and intentionality. When it comes to “avoiding dangerous anthropogenic interference in the climate system” we need to remember to focus on both our absolute level of emissions (not their relation to a BAU estimate) and to take into account the secondary effects our emissions have. Doing otherwise risks setting our emission reduction targets too low, and thus generating climate change damage at an intolerable level.

Canadian parliamentary voting records online

The voting records of Canadian MPs are being made available online. For instance, here is the voting record of Paul Dewar – NDP representative for Ottawa Centre. Things are still in an introductory state and the system hasn’t become as useful as it could potentially be. Nonetheless, it is a nice step forward towards a system in which constituents can easily and effectively monitor what their representatives are doing.

The US and the UN Human Rights Council

America’s decision to join the new United Nations Human Rights Council (up to now, largely populated with extremely repressive regimes), hopefully signals a willingness on the part of the new administration to try to steer that body off its present course, which seems largely focused on silencing the critics of Islam:

[T]he Cairo document carries the huge rider that the application of all human rights should be subordinated to sharia law. It also affirms the illegitimacy of “exercising any form of pressure” on Muslims to quit their faith “for another religion or for atheism”—in terms that seem to deny the individual’s freedom to change religion, and to justify the penalties for “apostasy” and blasphemy that many Muslim states impose.

It seems pretty critical for the international community to continue to recognize that human rights are vested in individuals, and that decrees that empower the suppression of individuals by organizations run fundamentally counter to them. A world in which people are not free to criticize the religions of one another – including by encouraging them to abandon all faiths – is not one in which the critical rights of individuals are being upheld.