Climate Compass Blog
Nations came together Saturday and agreed to take a big bite out of future increases in global temperatures. Following nearly a decade of talks, a landmark agreement to phase down hyrofluorocarbons (HFCs) was reached at the conclusion of the 28th Meeting of the Parties of the Montreal Protocol in Rwanda.
The Kigali Amendment sets out a schedule of targets and timetables for all developed and developing countries to phase down their use of HFCs,a family of industrial chemicals used worldwide in air conditioners and refrigeration that are one of the most potent and rapidly expanding greenhouse gases.
The amendment links these control requirements with a renewed commitment by developed countries to provide financial support for developing countries through the Protocol’s Multilateral Fund. The agreement sets out key principles for how the fund will transition from supporting projects aimed at safeguarding the ozone layer to spurring action focused on climate protection.
Curbing HFCs is a relatively inexpensive way to achieve significant near-term reductions in climate pollution and is essential to achieving the Paris Agreement goal of limiting temperature increases to well below 2 degrees Celsius. More than 100 nations came together at the recent U.N. General Assembly to press for an ambitious reduction schedule.
In the final stages of negotiations in Kigali, it was clear that only a few countries stood in opposition. To break the logjam, the agreement provided the flexibility for reluctant developing countries (India, Pakistan, Iran, Iraq, and the Gulf States) to meet a phasedown schedule with a baseline and reduction steps delayed by four years. It also included a separate provision for an alternative baseline and compliance schedule for Russia, Belarus and several neighboring countries.
Phasing down HFCs offers a unique opportunity for a significant double win for the climate. HFCs themselves are a potent, fast-growing climate pollutant. Reducing HFCs can reduce global warming by as much as 0.5 degrees by the end of the century. Because they are widely used in rapidly expanding, high energy-consuming refrigeration and air conditioning sectors, the transition to alternatives also provides an opportunity to reduce climate change through enhanced energy efficiency.
The Kigali Amendment seeks to capture these benefits first through a fast start fund created by 19 philanthropic groups and individuals who have contributed $53 million to move from HFCs to more energy-efficient alternatives.
In addition, a decision reached in Kigali calls for the Multilateral Fund, in developing and supporting projects shifting to alternatives, to fund investments aimed at maintaining and enhancing energy efficiency.
The adoption of the HFC amendment is an important accomplishment, but much work lies ahead in making a successful transition to energy-efficient, low or zero global warming alternatives. For example, hydrocarbon refrigerants and foam blowing agents represent important alternatives, but because they are flammable, changes in national and industry standards and codes will be required to ensure that they can be used safely. The Parties agreed on a decision aimed at facilitating the necessary revisions to standards and codes and supporting enhanced training of air conditioning and refrigeration technicians in the safe use of these alternatives through the Multilateral Fund.
Hydrofluorooleinfs (HFOs) are also a family of chemical substitutes to replace HFCs. India and China raised concerns about whether patents held by transnational chemical companies on the production and use of HFOs would block their access to them. Over the coming years the availability of HFOs will need to be advanced through expanding commercial arrangements between companies, which could be facilitated by financial support from the Multilateral Fund.
The Kigali Amendment on HFCs caps an extraordinary couple of weeks for global climate protection. Enough countries have ratified the Paris Agreement that it has already met its conditions to formally enter into force. In addition, a path-breaking agreement was reached to limit emissions from international air travel.
After years of slow and difficult global efforts to address climate change, these recent developments demonstrate a new and stronger commitment to tackle the near and present danger of this critical threat to our global community.
International negotiators are gathering in Kigali, Rwanda, with the goal of phasing down one of the most potent and rapidly expanding greenhouse gases affecting the climate.
Momentum is building for taking action on hydrofluorocarbons (HFCs), a family of industrial chemicals used worldwide in air conditioners, refrigeration, foam products, and aerosols.
- On the sidelines of the recent U.N. General Assembly, more than 100 nations signed a declaration calling for an amendment to the Montreal Protocol to ambitiously deal with HFCs, with an early freeze date for developing countries and an early first reduction step for developed countries.
- To jump start the transition away from HFCs, 16 donor nations have offered $27 million in new and additional money for use by developing countries in limiting HFC use in 2017. Donor countries are also committing to support the longer-term phase-down costs under the Montreal Protocol’s Multilateral Fund.
- In an unprecedented move, a group of philanthropists (19 foundations and private individuals including Bill Gates and Tom Steyer) have offered an additional $53 million to developing countries to support efforts to move from HFCs to more energy-efficient alternatives.
- More than 500 companies and organizations issued a call to action in support of an ambitious agreement on an HFC phasedown at the 28th Meeting of the Parties to the Montreal Protocol October 10-14.
Action on HFCs is the single most significant step nations can take this year to advance the goal established in the Paris Agreement of limiting global temperature increases to well below 2 degrees Celsius. Estimates are that an ambitious HFC amendment would reduce global warming by as much as 0.5 degrees by the end of the century.
While momentum for an ambitious agreement this year is strong and building, it is by no means assured. Even with more than 100 nations on board, reaching an international consensus in Kigali will not be easy.
A large number of developed and developing countries have supported a developing country freeze in HFC use beginning around 2021, but India has supported a 2030 freeze date and Gulf Cooperation Council countries proposed a 2028 freeze.
Issues under discussion include the costs and availability of alternatives, the role and timing of patent protections, the rules governing support of projects under the Multilateral Fund, and the need for updated standards for the safe handling and use of more flammable refrigerant alternatives. While there is general support for incorporating enhanced energy efficiency into the transition away from HFCs, there are questions about the ways to achieve this objective.
Solutions are on the table for all of these issues. Given progress to date and the financial resources now available to developing countries to support an ambitious HFC amendment, agreement in Kigali is well within reach. The costs of acting to reduce HFCs are small compared to the very real and present costs of inaction to limit changes to our climate.
After years of intense negotiations, governments have agreed on a framework for limiting greenhouse gas emissions from international aviation.
It’s the first climate agreement encompassing an entire sector of the global economy. It’s also the first to employ a market-based climate strategy across a global sector, which will help reduce emissions cost-effectively and expand international carbon markets.
International airline travel is among the fastest growing sources of greenhouse gases. Aviation emissions are expected to triple by 2050 without additional action, making this agreement urgent.
Governments agreed earlier this year at the International Civil Aviation Organisation (ICAO) to phase in new standards for more efficient aircraft design. ICAO is also encouraging operational efficiencies, such as altering flight routes, and the development of lower-carbon fuels.
But these efforts alone won’t meet the goal set by airlines and governments: to freeze aviation emissions at 2020 levels.
That’s why the centerpiece of the ICAO agreement reached October 6 is a market-based measure that will allow airlines to offset any growth in their emissions beyond 2020 levels with reductions in other sectors.
A market-based approach gives businesses the flexibility to choose the most economically efficient way to reduce emissions, which ultimately saves money for consumers. Emissions reductions can be achieved at a lower cost outside the aviation sector, particularly given the projected growth in air traffic in coming decades.
Having an entire sector of the global economy using a market-based approach could spur governments to undertake market approaches in other sectors. The ICAO agreement also comes as nations work toward guidelines under Article 6 of the Paris Agreement to ensure the environmental integrity of offsets and avoid double counting.
Initially, participation in the ICAO program will be voluntary. The United States, Canada, Mexico, China, Singapore, and 44 European nations have committed to sign up from day one. Eventually the program will be extended to all countries, with the exception of least developed countries, landlocked developing countries, and those with only a minor share of global international aviation.
Each individual airline’s offsetting responsibility will be based at first on the overall sector’s emissions growth, to be fairer to fast-growing airlines, and then shift toward an individual airline’s emissions growth.
While the agreement provides an initial framework, details remain to be negotiated. For example, the agreement sets a deadline of 2018 to set Emissions Unit Criteria that will determine what types of offsets are eligible.
The ICAO agreement falls short of universal participation in its earliest stages, but still provides a sensible and practical framework that we can build on to reduce commercial aviation emissions and expand market-based approaches to climate change.
Top: Siemens 2.3 MW Offshore Wind Turbines, courtesy Siemens Press.
Bottom: The ADA-ES 1 MWe pilot unit, courtesy US Department of Energy.
This fall, America’s first offshore wind farm will come online off the coast of Rhode Island, launching a new industry with the potential to create clean energy jobs in manufacturing and in the marine trades, attract private investment to New England, and reduce carbon emissions.
New energy technologies often need both state and federal support to be deployed commercially. Rhode Island has been a leader in supporting offshore wind. In 2010, its legislature authorized a state utility to enter into an offtake agreement for offshore wind power. This year, Massachusetts did the same, and New York announced a new Offshore Wind blueprint.
Rhode Island also brought stakeholders together to create an Oceanic Special Area Management Plan outlining multiple uses for the marine environment. These efforts laid the groundwork for Deepwater Wind to develop the Block Island Wind Farm, a 30 MW, five-turbine project that can provide power for most of Block Island’s 1,051 residents.
Similar state policies could help deploy more carbon capture technology as well. A handful of states have clean energy standards that include carbon capture technology, including Illinois, Massachusetts, Michigan, Ohio and Utah. This year, Montana Gov. Steve Bullock highlighted carbon capture in his state’s Energy Future Blueprint. Other states could follow this model.
Both the Western Governors’ Association and the Southern States Energy Board have issued resolutions supporting carbon capture technology as did the National Association of Regulatory Utility Commissioners.
National policies and early financing support played a role in the success of offshore wind projects in Europe. A report by the Global Carbon Capture and Storage Institute noted that European nations included offshore wind in national energy policies and established feed-in tariffs to provide incentives for deployment.
Multilateral development banks like the European Investment Bank played a leadership role by lending to early offshore wind projects, paving the way for commercial banks to follow. Once these major factors were in place, then technology development, the establishment of standardized contract structures, and maintaining a certain level of deal flow helped drive efficiencies that brought down costs.
When it comes to financing carbon capture, use and storage (CCUS) in the U.S., we have some pieces of the puzzle in place. There is already a basic federal and state regulatory framework for underground storage of CO2, for example.
Still, financing policies are needed to enable investment in carbon capture projects. We should extend and expand commercial deployment incentives like tax credits and open up the use of master limited partnerships and private activity bonds to carbon capture, among other things.
A third lesson to draw from offshore wind is that to create new domestic industries, it helps to take a regional approach. Last year, the U.S. Department of Energy (DOE) announced funding for a multi-state effort for offshore wind in the Northeast to develop a regional supply chain.
DOE is taking a similar approach with CCUS and launched seven Regional Carbon Sequestration Partnerships to characterize CO2 storage potential in the U.S. and to conduct small and large-scale CO2 storage injection tests. Millions of tons of CO2 have already been stored for decades in West Texas as part of enhanced oil recovery operations. The regional partnerships characterized the potential for more CO2 storage in deep oil-, gas-, coal-, and saline-bearing formations as illustrated in the Carbon Storage Atlas. To date, the partnerships have safely and permanently injected more than 10 million metric tons of CO2 in these types of formations.
Investing seriously in carbon capture technology has economic benefits including for electrical workers, boilermakers, the building trades, and steelworkers. A new CO2 commodity industry could be created to reuse CO2 to make other products.
Carbon capture also has environmental benefits, helping us address emissions from industrial plants, which are the source of 21 percent of U.S. greenhouse gas emissions, and from coal and natural gas power plants, which currently supply two-thirds of U.S. electricity.
This fall, as we celebrate the beginning of the new offshore wind industry in the U.S., let’s keep thinking big about what is possible with carbon capture technology. With sufficient financial and policy support, we can create skilled jobs, attract private investment, and lower CO2 emissions.
|L to R: Tom Cochran, CEO and Executive Director, The U.S. Conference of Mayors; Daniel A Zarrilli, Senior Director, Climate Policy and Programs, Chief Resilience Officer, New York City Office of the Mayor; Josh Sawislak, Global Director of Resilience, AECOM; Mayor Chris Bollwage, Elizabeth, NJ, Mayor Javier Gonzales, Santa Fe, NM; Mayor Stephanie Rawlings-Blake, Baltimore, MD; Bob Perciasepe, President, C2ES.|
Mayors know what’s going on in their communities. Businesses know how to get a good return on investment. So it seems like a natural fit to have them work together on innovative ways to finance clean energy, strengthen resilience to climate impacts, and reduce greenhouse gas emissions.
Baltimore Mayor Stephanie Rawlings-Blake, past president of the conference, told the gathering that cities are where the work is getting done when it comes to addressing climate change. “Nations talk about energy efficiency and climate action, but mayors are doing it every day,” she said.
At the same time, she noted, mayors need tools to get the job done. “We have to do more with less resources. We’re all in this together.”
That’s where business comes into the picture.
Josh Sawislak, global director of resilience for AECOM, a global engineering, consulting and project management company, said businesses want to get involved in building resilience, and they can do more on the local level.
He noted, however, that there needs to be a sound business case for clean energy investments, and for small businesses, the return on investment needs to be immediate.
“Climate change is costing us money. Not investing in these things is costing us money. We’re not doing the math right,” he said.
Some cities are already taking an innovative approach to bridging the gap between the two interests.
Santa Fe, NM, Mayor Javier Gonzales, the alliance’s chairman, explained how his city’s new Verde Fund taps into community needs and business expertise to help low-income residents access clean energy. “More well-to-do people can navigate complicated systems to get rooftop solar on your house,” he said. “The Verde Fund helps disadvantaged residents do the same.”
When low-income residents can save money on their electricity bills by going solar, he said, they have more money to spend on food, clothing and other essentials. The jobs created by these projects benefit the community as well.
Elizabeth, NJ, Mayor Chris Bollwage, whose city’s vulnerability to climate impacts was exposed during Hurricane Sandy in 2012, said some visionary leadership is also needed to imagine today what will be needed tomorrow.
“When we built Elizabeth’s midtown parking garage, we put in five spaces for electric vehicle charging,” he said. “No one used them the first two years, but now three cars are charging there every day.”
In New York City, officials are being proactive in other ways, like working through the city’s OneNYC plan to reduce energy use in buildings, the source of 70 percent of the city’s emissions. Daniel Zarelli, Mayor Bill de Blasio's senior director of climate and sustainability policies and chief resilience officer, said the city’s goal is to reduce greenhouse gas emissions from buildings by 30 percent by 2025 and to retrofit one million buildings so they’re energy efficient.
All the panelists agreed that federal, state, and local policy must become aligned to move in the right direction. One way to do that is by citizens letting both their government and business leaders know that they value sustainability.