Friday, November 13, 2015

From Lima to Paris



                                                Comments due by Nov 20, 2015
 Needless to say, there’s been a big and promising shift in tone and some substance in global warming diplomacy of late — led by the paired pledges of China and the United States to intensify efforts to curtail heat-trapping carbon dioxide emissions. Other countries, including gas-rich Malaysia, have promised to act on climate.
No one should presume things will be easy in Lima, Peru, where negotiators are gathering through next week to shape a global climate agreement that could be finalized in Paris a year from now. There’s strong — and to a large extent justified — resistance to new carbon commitments in India, for example, where hundreds of millions of people lack access to any modern energy sources, let alone clean ones. And there will be intensifying demands for billions to flow from industrialized countries that spent decades building wealth burning fossil fuels to poor, vulnerable ones. Given continuing economic troubles in many developed countries, those demands will be hard to meet.
Still, there are plenty of signs that there’s room for a global accord to emerge, with every faction — from the poorest to the richest — finding a comfort zone thanks to the 24-year-old clause in the original climate treaty laying out nations’ “common but differentiated responsibilities” (here’s a great explainer from McGill’s Center for International Sustainable Development Law).
As long ago as 1991, there were calls to pursue “soft,” not internationally binding, steps toward a global climate treaty. Read these notes from a fascinating 1991 Harvard meeting on Negotiating a Global Climate Agreement to get the idea. (There are some excerpts below. I first wrote about that meeting in 2010.)
Talks are progressing now because this shift is in fact occurring.
John Upton has an informative piece on Climate Central that lays out the logic of non-binding success and also why some parties, particularly Europe, still resist:
As negotiators gather in Peru for a critical round of climate talks, U.S. delegates are straining to explain what they call a “counterintuitive” reality: For next year’s global climate agreement to be effective, commitments made under it must not be legally binding.
Such an outcome would disappoint many, including the European Union’s negotiating team, which says it will be pushing for binding commitments during the United Nations Framework Convention on Climate Change talks in Lima this week and next. America’s negotiators are pushing for voluntary commitments.
The success of the next climate agreement, which is due to be finalized during talks in Paris one year from now, may hinge on American negotiators winning in this latest spat in a long-simmering quarrel with their European counterparts.
It’s a pretty good bet that Europe will — excuse the term — soften, given the momentum built by the year-long process that produced the American announcement with China and particularly because failure in the heart of Europe is unimaginable.
The new emphasis on a soft approach is quite a contrast to the tone in the run-up to the tumultuous Copenhagen talks in 2009, when inflated “seal the deal” expectations — partially driven by the election of President Obama — led to the idea there could be new international, legally-binding gas limits like those tried in the 1997 Kyoto Protocol — which has proved a dead-end document.
Yvo de Boer, who held the chair in the climate talks through Copenhagen and now runs the Global Green Growth Institute, made the point this way in an interview with Bloomberg’s The Grid back in June:
Q: Is it still realistic for climate negotiators to want an “international, legally binding” treaty? Was it ever realistic if the U.S. always opposed one?
A: If a country enters into a legally-binding commitment and they back away from it, what do you do? Arrest the prime minister? “Nationally legally-binding” is much stronger. I think we’ve moved beyond Kyoto-style agreements. Hopefully in Paris we will see countries make ambitious pledges to limit or reduce emissions. [Read the rest.]
Debates will (and should) continue over how much of what’s being pledged is simply enshrining energy and pollution trends (both in the United States and countries like China) that are already being driven by other factors (cheap shale gas and growing energy efficiency here, smog concerns in China, etc.).
And much of what is being pledged, despite Yvo de Boer’s hope for legally-binding actions at the national level, is still much more like putty than steel, as Jack Goldsmith of Harvard Law School noted (in the context of United States law) on his Lawfare blog earlier this year. 
But momentum matters, as does the rising trust among parties as they split from a faction-against-faction approach (remember theGroup of 77 plus China bloc?) to finding common threads, one on one.
The summary of that 1991 meeting on climate agreements, written by Henry Lee, who’s still at Harvard, have some relevant sections, including this one:
Perhaps the real problem is not agreeing on a treaty, but building nations’ confidence in other nations’ capacity and willingness to cut emissions. We are skeptical about whether Brazil will do it, and they are skeptical about us. And as in the recent U.S.-Japan decisions over Structural Impediments to trade, if we both can do it, we will both be better off.
Overcoming this blockage will either take an adjustment of our notion of sovereignty where implementation is concerned, or a focus on unilateral action. U.S. unilateral action could set an example for the world, and help to structure the international process so as to increase confidence. If the U.S., for example, significantly increased transportation fuel prices, then this action would both increase our influence in pushing for good international deals, and exempt us from charges of obstruction when we refuse to sign a bad one.
There is a lot of latent cooperativeness, looking for a structure in which to express itself. This is what international legal measures, soft or hard, should do — give an enabling structure to this latent willingness to help.
Obama has moved far more on power plants and auto efficiency than fuel prices (which are headed down of course), which simply shows that expectations and options evolve over time. But his administration’s domestic power plant rules and simultaneous interaction with China reflect how this dynamic can work.
There’s much more at the Harvard Project on Climate Agreements, including this new paper: “A Pre-Lima Scorecard for Evaluating which Countries are Doing Their Fair Share in Pledged Carbon Cuts.”
Update, Dec. 6, 8:45 a.m. | Professor Lee at Harvard sent this illuminating note after I’d posted:
The real architects of the soft strategy were Abe Chayes [bio] and Tom Schelling [Nobelist in Economics] and it is fascinating that it has taken 23 years for the world to finally catch up. Although Chayes’s thumbprint is all over the Rio treaty of 1992.  Howard Raiffa convened a bi-weekly seminar at the Business School in which both Tom and Abe participated, and it was out of these discussions that the soft strategy emerged.
While I firmly believe it to be the only workable strategy that can result in meaningful progress, skeptics ask –will this strategy be enough to make a measurable difference in slowing the build up of greenhouse gas concentrations? Given the domestic hurdles facing Obama, the inability to raise significant funds for the Green Climate Fund and China’s long farewell to its growth in carbon emissions,  we may still be another decade away from seeing this issue turn around.  This is not to say that the Xi-Obama agreement or a successful Paris protocol will not be significant, but the question is –will it be enough.
I replied this way (email shorthand cleaned up):
The “Will it be enough?” question leads to “What is enough?” I’ve always liked John Holdren’s notion that there’s a sliding mix of “mitigation, adaptation and suffering.” No hard lines going forward. And the learn-and-adjust aspect of humanity’s complex response will keep tweaking the two knobs as necessary.
It will be far from perfect, or rational. But we’ll keep moving on. The human way.
Update, Dec. 6, 11:45 a.m. | Robert Stavins, another Harvard economist focused on climate policy, sent the following observation:
You mention something that is very important to keep in mind, but frequently ignored in press and other commentary on the ongoing international climate negotiations, namely: “No hard lines going forward.”
There is not some distinct bend in the marginal damage function or marginal cost function at 450 ppm [a carbon dioxide concentration of 450 parts per million]. In other words, it’s fair to say that stabilizing at 350 ppm means less damages, and stabilizing at 550 ppm means more damages (things get more complicated when bringing in marginal costs, and searching for the most dynamically efficient path forward), but there is really not something magical about 450 ppm.
The 450 ppm target is a political goal (which is important), but is not linked in some rigorous way with the science and economics. It has also become fundamentally infeasible, as the this year’s IPCC AR5 WG3 and SYR reports have illustrated quite clearly.
Unfortunately, pointing this out has become politically incorrect and controversial.
I was also remiss in not including a link to his excellent blog post explaining the significance of the Lima meeting and why recent steps are important. Here is a snippet:
There will be — indeed, already have been — pronouncements of failure of the Lima/Paris talks from some green groups, primarily because the talks will not lead to an immediate decrease in emissions and will not prevent atmospheric temperatures from rising by more than 2 degrees Celsius (3.6 degrees Fahrenheit), which has become an accepted, but essentially unachievable political goal. These well-intentioned advocates mistakenly focus on the short-term change in emissions among participating countries (for example, the much-heralded 5.2% cut by the Annex I countries in the Kyoto Protocol’s first commitment period), when it is the long-term change in global emissions that matters.

Friday, November 6, 2015

Are Corporations to be trusted on Environmental issues?


                                               Comments due by Nov. 13, 2015
The state of New York is investigating whether Exxon Mobil misled the public and investors about the risks of climate change, a move sought by environmentalists that could signal a broader reckoning with the conduct of big energy companies.
A spokesman for Exxon Mobil confirmed Thursday that the company had received a subpoena from the office of the attorney general of New York, Eric Schneiderman, related to the subject of climate change and was “assessing” its response.
The investigation focuses on whether Exxon Mobil intentionally clouded public debate about science and hid from investors the risks that climate change could pose to its business according to a person familiar with the matter.
Schneiderman has broad leeway to take on such a sweeping target under both consumer protection laws and New York’s Martin Act, a securities law that protects investors.
The inquiry seeks a variety of documents and records from the company, according to the person familiar with the probe, who spoke on condition of anonymity because the contents of the subpoena have not been made public.
“We unequivocally reject allegations that Exxon Mobil suppressed climate change research contained in media reports that are inaccurate distortions of Exxon Mobil’s nearly 40-year history of climate research that was conducted publicly in conjunction with the Department of Energy, academics and the UN Intergovernmental Panel on Climate Change,” Exxon Mobil spokesman Scott Silvestri said.
Schneiderman, the New York attorney general, is also conducting a similar investigation regarding Peabody Energy, a leading coal company. The person familiar with the matter suggested that other energy companies could also face scrutiny.
Environmental advocates hailed the probes as a major victory. For well over a decade, such organizations have been probing alleged links between Exxon, the world’s largest publicly traded energy company, and the raising of public doubt about climate change. They cited not only direct statements and advertisements by Exxon Mobil, but also its alleged past support for think tanks and advocacy organizations that express climate change skepticism.
“We have watched Exxon sow doubt on climate science and delay action on climate change for nearly a generation,” said Kert Davies, formerly with Greenpeace and now the Climate Investigations Center.
Similarly, in a 2006 letter to the company, the British Royal Society chargedthat a variety of statements in Exxon Mobil’s public documents at the time “are not consistent with the scientific literature that has been published on this issue.”
“The context here is that climate activists have long accused Exxon – along with various other large energy companies – of seeking to influence the climate policy debate to their benefit. The claim that Exxon ‘suppressed’ research is part and parcel of this broader issue. Naturally, the company takes a different view of this issue,” said Pavel Molchanov, an oil industry analyst with Raymond James, in a statement.
Recent news reports have increased calls for action, as the Los Angeles Times and the online publication Inside Climate News both published articles charging that Exxon researchers were concerned about climate change from fossil fuel emissions decades ago, and yet for long periods, the company publicly raised doubts about the science.
The charges have been so prominent that senator and Democratic presidential contender Bernie Sanders recently called for a Justice Department investigation into Exxon Mobil regarding “what it knew and what it told the public and shareholders about the cause of climate change.”
Naomi Oreskes, a professor of the history of science at Harvard University who has been a critic of the company, likened the investigation to past investigations of the tobacco industry in a statement Thursday.
“We are not physiologically addicted to oil, but we live inside a highly developed infrastructure that fosters fossil fuel dependency and discourages alternatives.  We could have begun to shift the incentives, and encourage alternatives, if we had implemented a carbon tax…at any point over the past 20 years,” Oreskes said. “There are many reasons we did not do that, but a significant one, in my view, is the role of Exxon Mobil and others in fomenting disinformation, undermining public support for such initiatives, and lobbying against  policies that would have begun to decrease our fossil fuel dependency.”
In the 1990s, Exxon Mobil took stances that expressed skepticism about climate change. For instance, in 1997 Exxon CEO Lee Raymond stated in Beijing, “Many people, politicians and the public alike, believe global warming is a rock-solid certainty. But it’s not,” according to a contemporary media report.
But matters have changed since then and the company’s current CEO, Rex Tillerson, has called for a carbon tax.
“Exxon Mobil recognizes that climate risks are real and responsible actions are warranted,” said its vice president of public and government affairs, Ken Cohen, on a press call regarding the subpoena. “We have a commitment to helping address this important societal challenge.”
Cohen said on the call that the company began in the late 2000s to inform “shareholders and investors” about climate change and how it could affect the company’s business “through regulatory filings.” In response to the series by Inside Climate News, Cohen said the company has been in “active dialogue” with the publication since the stories came out.
“Our company, beginning in the latter part of the 1970s and continuing to the present day, has been involved in serious scientific research, and we have been supporting since that time scientific understanding of the risk of climate change,” Cohen said.
“Over the last decade, whispering concerns have increased within oil and other fossil fuel companies about a wide range of possible legal vulnerabilities.  I think such concerns in fact have driven companies to take public positions acknowledging basic climate science in more recent years, and compelled them to even begin advocating seemingly progressive but politically unlikely policy approaches like carbon pricing,” says Paul Bledsoe, a former Clinton White House aide on climate change who is now an energy and climate consultant in Washington.
Schneiderman, a Democrat, has been attorney general since 2011 and like other prominent New York-based prosecutors has not shied away from tackling big targets. Over his tenure, he has taken on Apple’s foray into E-books, big mortgage banks, and fantasy sports sites. He even filed a $40 million civil lawsuit against Donald Trump, alleging that the mogul’s “Trump University” — which purported to teach real estate investment techniques — in fact offered very little education at a high cost to students. (NYT Nov 6, 2015)