Wall Street Warns About Cost Of Doing Nothing On Climate Change

As President Obama heads to the Arctic to discuss climate change, just mere weeks after approving Shell Oil’s bid to drill for oil in the treacherous Chukchi Sea, a very different group is sounding the alarm over the dangers of a warming climate. That group, surprisingly, is Wall Street bankers.

Citibank has released a new report showing that taking action now against the growing threat of climate change would save an astonishing $1.8 trillion by the year 2040. Conversely, the report says that if no action is taken, the economy will lose as much as $44 trillion during that same time period.

The Global Coal Boom Is Going Bust: Report

A new report by CoalSwarm and the Sierra Club provides compelling evidence that the death knell for the global coal boom might very well have rung some time between 2010 and 2012.

Based on data CoalSwarm compiled of every coal plant proposed worldwide for the past five years as part of its Global Coal Plant Tracker initiative, the report finds that for every coal plant that came online, plans for two other plants were put on hold or scrapped altogether.

The failure-to-completion rate was even higher, as much as 4 to 1, in Europe, South Asia, Latin America, and Africa, according to the report, which also says that the long decline in coal-fired energy production in the United States and the European Union can be expected to speed up in the near future.

“From 2003 to 2014, the amount of coal-fired generating capacity retired in the US and the EU exceeded new capacity by 22 percent. With most new capacity plans halted and large amounts of capacity slated for retirement, reductions in coal capacity are expected to accelerate.”

State Solar Jobs Report Is Good News For The Economy And Environment

The Solar Foundation released its 2014 State Solar Jobs Census yesterday demonstrating that solar energy is still one of the fastest growing industries in the US, which is good news for our economy and the environment.

California ranks number one, with 54,700 jobs in solar installation, manufacturing, sales and distribution. Massachusetts came in second with 9,400 jobs. The booming solar industry — which now employs nearly 175,000 Americans nationwide — is not strictly a blue state phenomenon, however. Arizona came in a close third with 9,200 jobs.

The solar industry’s growth isn’t bound by geography, either.

“Big gains in employment are no longer limited to solar-friendly California and the sunny Southwest,” Rhone Resch, president and CEO of the Solar Energy Industries Association (SEIA), said in a statement. “Employment is also booming in East Coast states, including Massachusetts, New York, North Carolina and Maryland, while significantly growing in the southern states of Texas, Georgia and Florida.”

In other words, with solar making big gains in red states and blue states alike last year, the mainstreaming of renewable energy continues apace.

Reining In Global Warming Emissions Will Be Good For The Economy: Report

Not only will it lead to more costly and catastrophic events like wildfires, droughts, and floods, but delaying action on climate change will in and of itself consitute a missed opportunity to bolster the US economy, according to a new report.

Entitled “Seeing Is Believing: Creating A New Climate Economy In The United States,” the report notes that failing to rein in greenhouse gas emissions will result in a 20% reduction in per capita consumption worldwide over the long term, but stresses that addressing climate change will most certainly be good for the global economy.

Published by the World Resources Institute, the report looks at needed changes in five sectors of the US economy that, altogether, comprised 55% of greenhouse gas emissions in 2012: reducing the carbon intensity of electricity generation; improving efficiency in residential and commercial electricity consumption; building more fuel-efficient passenger vehicles; stopping methane leaks from natural gas systems; and lowering consumption of hydrofluorocarbons (HFCs), a potent greenhouse gas commonly used as a refrigerant.

By surveying peer-reviewed reports from academics, industry associations, think tanks, government labs, and others, the report concludes that: “The ability to reduce greenhouse gas emissions while benefitting the economy has already been demonstrated through numerous policies and programs implemented in the United States.”

Here are key findings from the report in each of those five areas:

Science Is Clear: Reducing Carbon Emissions Will Save Lives

While governments all over the globe continue to squabble about how to address greenhouse gas pollution – or, in some instances, whether or not to even address the issue – a new report delivers some much needed good news: Reducing greenhouse gas emissions will save lives.

The report, titled Health Co-Benefits of Carbon Standards for Existing Power Plants, breaks the regulatory debate being waged in the United States in its simplest form. Researchers from Harvard University, Boston University, and Syracuse University state in the report that the Environmental Protection Agency’s stricter standards for existing power plants will save an estimated 9 American lives per day.

As the report lays out, the EPA’s emission reduction standards – the first effort ever by the agency to reduce power plant emissions – would reduce the amount of emissions by 30% below 2005 standards by the year 2030. These power plants account for nearly 40% of the total carbon emissions for the United States.

The 30% drop in emissions will save an estimated 3,500 American lives every year. But that is just the tip of the iceberg, according to the report. An additional 1,000 hospital stays could also be avoided, along with reduced levels of sulfur dioxide, toxic mercury, and fine particulates in the air that we breathe.

Fracking Is Making California’s Drought Worse, Say Activists

California is in the middle of an epic water shortage, with nearly 80% of the state experiencing “extreme or exceptional” drought conditions. Check out this animated map to get a sense of how extensively the drought has impacted the Golden State.

Things have gotten so bad that California enlisted Lady Gaga to record a public service announcement (PSA)

Given the situation, anti-fracking activists say it’s time for Governor Jerry Brown to put a stop to water-intensive fracking, claiming that the controversial oil and gas production method is exacerbating the problem.

“We’re talking about a triple threat to our water from fracking,” says Adam Scow, the California Director for Food & Water Watch.

The first threat: The fracking process requires a lot of water, which then becomes unsuitable for any other use.

While it’s true that fracking in California doesn’t require as much water as it does in Texas and Pennsylvania, Scow contends that any amount lost to fracking is unacceptable: “In the middle of the worst drought in 50 years, they’re taking 140,000 to 150,000 gallons of water out of the water cycle per frack job. They’re destroying that amount of water on a daily basis.”

It’s also possible that fracking fluid could leach into underground aquifers, and of course the toxic wastewater left over from fracking has to be disposed of somehow — and therein lies the second threat to California’s water supply.

The California Department of Gas and Geothermal Resources (known as DOGGR) recently ordered 11 fracked wells shut down over fears that they were contaminating potential sources of potable water. As many as 100 other fracking sites are under review, as well.

An unlined pit of unknown neon green fluid leading to a fracking injection well. This pit is in the middle of almond fields and chicken coops. Photo by Brooke Anderson.

Lord Stern: We’ve Underestimated Economic Costs of Global Warming

Nicholas Stern

Nicholas Stern, one of the world’s most influential economists, has come out with a new report showing that the future costs of climate change have been incredibly underestimated.

The report, Endogenous growth, convexity of damages and climate risk, indicates it is even more important than previously thought that politicians quickly and aggressively stop unchecked climate change caused by man-made carbon dioxide emissions.

Stern, a professor at the Grantham Institute at the London School of Economics, and his co-author Simon Dietz found that the current economic models used to calculate the cost of climate change are vastly inadequate and need to be updated so that proper decisions can be made about risks associated with global warming.

They said that even the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) has cited the existing economic models and, as a result, has arrived at severely limited assumptions about the costs of global warming.

It is extremely important to understand the severe limitations of standard economic models, such as those cited in the IPCC report, which have made assumptions that simply do not reflect current knowledge about climate change and its potential impacts on the economy,” Stern, a former chief economist with the World Bank, said in a media release.

US Chamber Predicts Economic Apocalypse From New Carbon Rules Despite Opposite Reality

It has been less than a week since the EPA announced new rules for carbon emissions — rules that are being heralded as the most comprehensive effort to tackle climate change by any sitting U.S. president — but big business groups have been spreading misinformation about these new rules for weeks.

Leading the charge against the administration’s proposals is the U.S. Chamber of Commerce, the largest business interest group in the country, and arguably the most well-funded. 

Just days before the new rules that will limit the amount of carbon that existing power plants can release were made public, the Chamber released a report predicting that any form of carbon regulation would result in economic chaos for the United States.  And this all happened before the Chamber even know what the rules would actually say.

The Chamber’s report issued these dire warnings to Americans, summarized by Think Progress:

Their study determined that it would cost American industry $28.1 billion annually to comply with EPA’s new regulations, that as many as 224,000 jobs would be lost between now and 2030, that the economy would average $50.2 billion lower a year, that Americans would cumulatively pay $289 billion more for electricity over that period, and that they’d lose $586 billion in disposable income.

The U.S. Chamber is attempting to strike at the heart of American fears that it will cost them dearly.  Whether it is their job or their hard-earned money, the Chamber wants Americans to be afraid of losing everything they’ve worked so hard to achieve in life.

Back in the land of reality, the Chamber’s claims are easily debunked.  To start with, as we’ve previously discussed here on DeSmogBlog, safety regulations create jobs rather than destroy them.  Even energy industry CEOs have been willing to admit that this is true in recent years.  The EPA’s estimates show that the new standards will create tens of thousands of new jobs, and the administration’s commitment to invest more in renewable energy will add hundreds of thousands of jobs, thus resulting in a net gain of U.S. jobs.

All the Positive and Helpful Things in the IPCC Report No One Will Talk About

climate change, IPCC

If you’ve come across any of the recent headlines on the release of the latest Intergovernmental Panel on Climate Change (IPCC) report, you’re probably feeling pretty low. The doom and gloom levels were off the charts. And understandably so. Major nations across the globe – especially Canada – are dragging their heels when it comes to climate change action. Canada, sadly, doesn’t have any climate legislation.

But maybe that’s because Canada was waiting for a group of the world’s most knowledgeable scientists to come up with a report for policy makers — you know, something to outline useful guidelines to keep in mind when looking to get your country out of the climate doghouse.

Well, Canada, you’re in luck. Here are some of the IPCC report’s most useful guidelines for responding to the multiple and growing threats of climate change:

The View from Europe: America’s Shale Boom Looks More Like a Blip

The fracking boom has progressed at breakneck speed across the U.S., with roughly one in 20 Americans now living within a mile of a well drilled since 2000.

So, how much has the economy benefitted from this drilling surge?

Not much, according to a report presented to the European Union Parliament last month, which found “no evidence that shale gas is driving an overall manufacturing renaissance in the US.”

The shale boom’s economic contributions are very narrow, inflating local economies in places where drilling is intense but generating little impact on the country’s overall economic growth, the Institute for Sustainable Development and International Relations, a French think tank, concluded.

Although natural gas prices have fallen from their highs in 2008, benefitting consumers, those low levels are unlikely to be sustained and the U.S. is still expected to remain heavily reliant on importing crude oil, the researchers found.

Even using very optimistic assumptions, the report said, the industry’s cumulative long term effect on America’s Gross Domestic Product (GDP) will be less than one percent. “Despite very low and ultimately unsustainable short-term prices of natural gas, the unconventional oil and gas revolution has had a minimal impact on the US macro-economy,”

That’s not the amount that shale gas will add to the economy each year, the researchers said. Instead, the industry will make up no more than 0.84 percent of total GDP between 2012 and 2035 – the years when the shale boom is projected to be at its height. To put that in context, the personal care products industry – hair styling, cosmetics and the like – contributed 1.4 percent of GDP in 2010 – nearly double the impact that the EU report found the shale gas rush could have.


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