Climate Compass Blog

Carbon trading in China: short-term experience, long-term wisdom

Last week, Hubei Province became the sixth jurisdiction in China to launch a pilot carbon emissions trading program, joining Shenzhen, Shanghai, Beijing, Tianjin, and Guangdong Province. In the coming months, two additional programs will be introduced in Chongqing and Qingdao. In total, the eight pilot programs will cover an estimated one billion metric tons of carbon dioxide (MTCO2), second only to the European Union’s Emissions Trading System. The pilot trading programs are part of the strategy laid out in China’s 12th Five-Year Plan (2011-2015) to reduce carbon intensity (CO2 emissions per unit of GDP) by 40-45 percent from 2005 levels by 2020.

As the world’s largest energy consumer and emitter of carbon dioxide, China’s efforts to rein in emissions are significant at both the global and national level. In addition to the carbon trading pilots, China recently announced measures to limit coal to 65 percent of primary domestic energy consumption by 2017, down from 69 percent in 2011, while also banning new coal generation in Beijing, Shanghai, and Guangzhou.

States look to “green banks” to leverage private investment in clean tech

Clean energy and energy efficiency can save wear and tear on the environment and climate, but sometimes it takes money to take action. And in a time of tight government budgets, where will that money come from?

A new and growing solution to this energy finance problem is called the “green bank” or “clean energy bank” -- government-created institutions that help facilitate private sector financing for clean technology projects. States have used a variety of tools and incentives over the years to promote technology deployment. Green banks put many of the tools used to encourage private investment in one place.

Connecticut was the first state to open a green bank in 2011, and the idea is catching. New York opened a green bank in February. California state Sen. Kevin De Leon has proposed creating a green bank in his state. And U.S. Rep. Chris Van Hollen (D-MD) plans to introduce legislation to establish a federal green bank.

Green or clean energy banks can leverage a small amount of public money to significantly increase private investment in clean technologies. This leads to accelerated deployment of solar power, energy efficiency upgrades, and other clean technologies without creating a large burden on public budgets.

Climate science is clear: Earth is warming

A recent op-ed in the Wall Street Journal dredges up debunked conclusions drawn from a cherry-picked set of temperature measurements to try to call into question the reality and potential severity of climate change.

In a nutshell, authors Richard McNider and John Christy argue that warming in the upper atmosphere since 1979 is less than models had predicted and, therefore, models can’t be trusted and climate change shouldn’t be a concern.

In fact, virtually all climate data and research show that the Earth is warming. And it will continue to do so if we keep pumping greenhouse gases into the atmosphere. And this warming will bring an increased risk of more frequent and intense heat waves, higher sea levels, and more severe droughts, wildfires, and downpours.

To get at the facts, we can draw on recent climate assessments, including the State of the Climate report compiled by National Oceanic and Atmospheric Administration (NOAA), the Intergovernmental Panel on Climate Change (IPCC) Working Group I report, and the National Research Council’s America’s Climate Choices, plus other recent research (Thorne et al., 2011, Santer et al., 2013).

Based on this research, here are three things to keep in mind:

This winter was cold for some, not for all

A lot of folks in the eastern half of the United States are breathing a sigh of relief that spring is just around the corner. Average temperatures this winter were among the Top 10 coldest in some parts of the Upper Midwest and South. More than 90 percent of the surface of the Great Lakes is frozen, the highest in 35 years.

But while East Coast and Midwest kids have been sledding and their parents have been shoveling, it has not been cold everywhere. In fact, many areas are unusually warm.

In Alaska, January temperatures were as high as they have been in 30 years. The Iditarod dogsled race was especially treacherous this month because of a lack of snow. Crews had to stockpile and dump snow on the ground at the finish line in Nome, where temperatures earlier this winter broke a record.

Globally, January was the fourth warmest on record – really – despite pockets of well-below-normal temperatures in parts of the United States. According to the National Oceanic and Atmospheric Administration (NOAA), most areas of the world experienced warmer-than-average monthly temperatures. For example:

  • China experienced its second warmest January on record.
  • France tied its warmest January.
  • Parts of Brazil and Australia saw record heat.
January temperatures were above normal for much of the globe.
January temperatures were above normal for much of the globe.

Why we shouldn’t throw out flood insurance reform

It’s not surprising that homeowners in flood-prone areas are asking their representatives in Congress to protect them from higher flood insurance bills.

Here’s the question. Who is going to protect them from higher floods?

Congress in 2012 did the right thing in fixing a broken flood insurance system that has fallen $24 billion in debt, largely because the price of flood insurance hasn’t for many years matched the risk of a flood. Now, both the House and Senate have passed bills that would undo many of these reforms.

Congress should find a way to address both the immediate and long-term concerns of their constituents, and the rest of the nation. We can’t ignore the plight of families facing hefty insurance increases, and we must ensure that the process of making flood insurance reflect flood risk is fair and transparent. But we also can’t ignore the increasing costs and risks associated with growing coastal development in an era of rising seas and heavier precipitation.

Among the problems with the National Flood Insurance Program (NFIP) that we outlined in a C2ES brief: