5 August 2015, The Nation, Why Are Americans Switching to Renewable Energy? Because It’s Actually Cheaper. Fossil fuels have become an economic liability—for both consumers and energy companies. Deborah Lawrence had been watching a once-empty parking lot near Midland-Odessa, Texas, fill up with idled drilling rigs usually at work plumbing for oil in the nearby Permian Basin. In January she noticed 10 rigs, then 17 a few weeks later. As winter turned to spring, the number climbed to 35. That trend has continued across the country. By the end of July, the nationwide rig count had slipped 54 percent since the same time a year ago, indicating distress in the oil and gas industry. The most obvious culprit is the precipitous drop in crude prices. But the trouble goes deeper, as Lawrence knows—and she isn’t just a casual observer. Lawrence is a former Wall Street financial consultant who now runs the Energy Policy Forum, helping to identify and analyze trends in the industry. Read More here
Monthly Archives: August 2015
5 August 2015, Renew Economy, Unpacking Charles Koch’s misinformation on climate change. The Washington Post recently interviewed billionaire political activist and fossil fuel titan Charles Koch. He and his brother David have been doing a public relations tour in response to repeated criticisms of their political activities, including funding groups that reject climate science and oppose climate policy. Below is a brief examination of Charles Koch’s answers to two questions on climate policy and climate science. It’s clear to me that he would benefit immensely from a meeting with climate researchers. It would also be good for him to sit down with former Rep. Bob Inglis (R-S.C.) and other conservative leaders who are interested in developing climate policy alternatives to EPA regulations. Koch runs through a litany of debunked and suspect claims about the economic effects of the Clean Power Plan, which was just finalized yesterday. Read More here
5 August 2015, Renew Economy, Australia still subsidising fossil fuels at rate of $1,712 per person a year. In a week punctuated by heavy criticism of financial support for renewable energy in Australia, a report from the International Monetary Fund has reminded us that the age of entitlement for fossil fuels never really ended, with subsidies to the sector averaging at around $US1,000 a year for every citizen living in the G20 group of the world’s leading economies. New figures from the IMF have revealed that Australia still provides $US1,260 per head – or $A1,712 – in fossil fuel subsidies in 2015, while the US – the second-worst offender (in dollars), behind China – provides $US700 billion a year, equivalent to $2,180 for every American.
The report finds that the bulk of energy subsidies in most countries are due to undercharging for domestic environmental damage, including local air pollution – especially in countries with high coal use and high population exposure to emissions – and broader externalities from vehicle use like traffic congestion and accidents. “In many top subsidisers in percent of GDP and in per capita terms, these also reflect the setting of domestic energy prices below their supply cost.” The rest of the IMF estimates for 2015 come from payments, tax breaks and cut-price fuel. The IMF, which published a global estimate – $5.3 trillion a year – of fossil fuel subsidies in May, calculates that ending fossil fuel subsidies would slash global carbon emissions by 20 per cent. It has also estimated that this would lead to a 50 per cent cut in premature deaths caused by air pollution, while also being an economic “game-changer” for many countries, freeing up much needed funds. For advanced economies, like Australia, the IMF estimates eradicating fossil fuel subsidisation would gain enough revenue to halve corporate income tax or cover one quarter of public health spending. Read More here
5 August 2015, Carbon Pulse, Australia’s electricity emissions rise at quickest pace in a decade. Carbon emissions from Australia’s electricity generation sector over the past two months rose at the quickest pace since 2004, as coal replaced renewables and natural gas in the mix, a report said Wednesday. Annual carbon emissions from the National Electricity Market, which accounts for around a third of Australia’s total GHG emissions, increased 1.2% the past two months, according to Cedex, a monthly emissions update from consultants Pitt & Sherry. Coal’s share of emissions rose to 76.3% in the 12 months to July 2015, the report said, compared to 72.7% in the year to June 2014, after which the government dismantled the carbon price. The increase came as electricity demand continued to rise at a modest pace, while gas, wind and hydro generation all slowed, paving the way for more coal consumption. The decline in gas gathered pace as more of the lower-emitting fuel was being exported, according to the report. Meanwhile, the energy-intensive process of liquefying gas for export added to domestic coal use. “There is an element of irony in the fact that production of LNG, much of which will be used to generate lower emission electricity in the destination countries, is using large quantities of coal fired electricity in Australia,” said Hugh Saddler, principal consultant at Pitt & Sherry. “In doing so, it is already on track to increase Australia’s emissions by between 1.5 and 2.0 million tonnes CO2‐e per annum, a figure which is certain to get much bigger in the next two or so years.” Read More here