environmental defense update on climate policy mark macleod

ENVIRONMENTAL DEFENSE

Update on Climate Policy

Mark MacLeod


Climate change is receiving growing attention from media


No one seriously questions the science anymore.


Most Americans think global warming is probably Most Americans think global warming is probably happening . . .happening . . .

Question: Which statement comes closest to your view about global warming: it probably is happening, it probably is not happening, or I don’t know if is happening?

70%

58%

74%80%

11%18%

11%5%

19%24%

15% 15%

All Rep Ind Dem

Probably happeningProbably not happeningDK if happening

Ayres, McHenry & Associates, Inc. | National Survey of Registered Voters | July 9-13, 20065


. . . and that human activity is the cause. . . . and that human activity is the cause.

Question: If global warming is happening, do you think it is due more to the normal cycles in the Earth’s environment, or more to human activity such as burning fossil fuels?

25%

36%

22%16%

62%

50%

63%

74%

12% 10%14%

9%

All Rep Ind Dem

Normal cyclesHuman activityDon't know

Ayres, McHenry & Associates, Inc. | National Survey of Registered Voters | July 9-13, 20066


But Many Think the Impacts are Remote and in the Future

But they are not…


Business is Becoming More Active


10


Principles

–We know enough to act

–Global problem needs a global solution

– US needs to lead to achieve an equitable and effective international policy framework for action by all major emitting countries

–Technology is the key to a solution:

• A broad platform of technologies exist to reduce emissions, and cost effective deployment needs to be encouraged.

• R&D for further advances must have government support

–Program must be: environmentally effective, cost effective, fair and encourage early action.


What About Congress?

In June 2005, 53 Senators voted for a resolution for mandatory controls to slow, stop and reverse GHG emissions

6 Climate Change bills introduced so far in 110th Congress

One more tomorrow


GLOBAL WARMING BRIEFING14

?

How do we get there?


Climate Change Bills of the 110th Congress 1-30-07

Policy Design Element

Lieberman-McCain S. 280

Olver-Gilchrest H.R. 620

Sanders-Boxer S. 309

Bingaman Waxman Feinstein Electricity S. 317

Status Filed 1-11-07 Filed 1-24-07 Filed 1-15-07 Discussion Draft 2006 Version Filed 1-17-07

Title Climate Stewardship and Innovation Act

Climate Stewardship Act Global Warming Pollution Reduction Act

Climate and Economy Insurance Act

Safe Climate Act The Electric Utility Cap-and-Trade Act

Date 1st Limit 2012 2012 2020 2012 2010 2011

Levels (from 2004 net economy-wide aggregate emissions)

2020: -15% 2050: -65%

2020: -15% 2050: -75%

2020: -15% 2050: -83%

2020: +16% (covered sources) Intensity-based target, continues to rise

2020: -15% 2050: -83%

2020: -8% electricity 2050: -41% electricity 2020: +19% total GHG 2050: +62% total GHG

Sectors Electricity, industrial, transportation petroleum

Electricity, industrial, transportation petroleum

Electricity, motor vehicles, fuel

Fossil fuels: coal mines, refineries, natural gas processors, electricity, carbon-intensive manufacturing

Entities with highest emissions, most cost-effective options for reducing emissions

Electricity only

Mechanism Cap-and-trade Cap-and-trade Cap-and-trade permitted but not required, and performance standards

“Upstream” cap-and-trade

Cap-and-trade, and performance standards

Cap-and-trade

Cost Management (also see Offsets)

Allowance banking and borrowing, transition assistance to workers and communities

Allowance banking and borrowing, transition assistance to workers and communities

Transition assistance to workers, communities, companies

Allowances given to States for purposes including low income energy customers, displaced workers, etc

Allowance banking Banking and borrowing, adaptation assistance to workers, communities

Threats to Integrity

Technology-indexed stop price Paramount importance waiver

Safety Valve that allows excess emissions for $7 ton CO2

Agriculture Offsets

Limited to 30% which includes International

Limited to 15% which includes International

Establishes standards but no rules for use

Limited to 5% set-aside No specific permission No specific limitation except for up to 5% forest mgt

International Offsets

Limited to 30% which includes Agricultural

Limited to 15% which includes Agricultural

No specific provision May use CDM certified emission reduction

No specific permission Up to 25% for affected units, 50% if new

Additional Climate Change Credit Corporation, Expansive Technology Title to fund/support innovation

Climate Change Credit Corporation

Renewable energy standard – 20% by 2020, energy efficiency standard – approx 10% by 2020, motor vehicle standard, electric generator emissions performance standard, electricity low-carbon portfolio standard

Renewable energy standard – 20% by 2020, energy efficiency standard, motor vehicle standard – no less stringent than CA

New coal units have to buy allowances unless they are Advanced Clean Coal Technology


Items of Interest to Tribes

• Provisions to assist communities and workers with adaptation

• Opportunities for agriculture to be able to sell carbon sequestration credits

• Various incentives/funding for new technology, demonstration projects

• Congress is what Congress does…


International – Post Kyoto negotiations underway

• Negotiators’ goal: No gap in post-2012 carbon market

• All eyes on U.S., because if the world’s largest emitter won’t act, developing countries won’t act either

• Resolution in Congress for US to engage


Ideas for Tribes

1.Tribes as Economic Actors

2.Tribes as Stewards of the Land and Leaders in Oral History Traditions

3.Tribes as Political Actors


Tribes as Economic Actors

• create inventories of existing greenhouse emissions sources and registries to record greenhouse gas reductions

• get experience with agricultural sequestration projects – including wetlands and grasslands

• use contract requirements to minimize methane emissions from oil and gas development

• employ economic resources such as windpower on tribal lands


Tribes as Stewards of the Land and Leaders in Oral History

Traditions• creating baseline environmental

inventories to document impacts of climate change

• collecting in an accessible way (website, recordings, meetings with reporters) personal stories of changes in species experienced, weather patterns, food availability, etc.

• highlighting how climate change impacts can affect culture and heritage


Tribes as Political Actors

• create a Tribal Climate Protection Agreement similar to the Mayors’ Agreement

• engage with US political leaders

• provide input to and support for new international negotiations on global warming pollution


Thank You

environmental defense update on climate policy mark macleod

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