From ASEAN and G20 to APEC, as World Leaders Meet in Person Again, 3 Reasons to Root for Multilateralism

By Wang Huiyao | Founder of the Center for China and Globalization (CCG)

Over the past two weeks, Asia has played host to the most intense sequence of multilateral summits since the pandemic began, as national leaders gathered for meetings organized by ASEAN, the G20 and APEC. Although overshadowed by geopolitical tensions, the meetings marked a welcome return to in-person summit diplomacy, and the better-than-expected outcomes show hope yet for multilateralism.

The conclaves began in Phnom Penh with the annual summit of the Association of Southeast Asian Nations. At the first of such in-person events in almost three years, ASEAN leaders took the positive step of agreeing in principle to admit East Timor as the 11th member of the organization.

As leaders moved on to Bali for the Group of 20 summit, expectations were low after ministerial meetings in the run-up had failed to produce consensus. Earlier in the year, given fractures in the wake of Russia’s invasion of Ukraine, there was a question mark over whether the G20 could even go ahead or survive in its existing form.

In the end, the summit surpassed expectations by producing a joint declaration after intense negotiations, with leaders finding the compromises necessary to unite in declaring that “today’s era must not be of war” and pledging to uphold the multilateral system.

The summit also saw a positive face-to-face meeting between China’s President Xi Jinping and U.S. President Joe Biden, their first as leaders, signaling a willingness to halt the downward trajectory of China-U.S. relations.

In Bangkok, the 21 leaders of the Asia-Pacific Economic Cooperation forum also pledged to uphold and strengthen the rules-based multilateral trading system. Importantly, the group agreed on a multi-year work plan for an Asia-Pacific free trade area.

Reflecting on these three summits, three takeaways give reason for cautious optimism that multilateralism can yet be revived and play a major role in solving our challenges.

First, and perhaps most obviously, the return of in-person summit diplomacy is a welcome uplift for global cooperation. Virtual formats played a useful interim role at the height of the pandemic but were never a substitute for getting leaders in the same room. That is especially when it comes to interactions on the sidelines, often as important as the main event.

China’s return to diplomacy at the highest level was a further boost, both for the nation and the rest of the world.

In addition to Xi’s highly anticipated meeting with Biden, the Chinese leader met over a dozen other leaders at the G20 and APEC summits, including a warmer-than-expected first meeting with Japanese Prime Minister Fumio Kishida and his first meeting with an Australian prime minister since 2016.

Leaders got to meet their new counterparts for the first time or build on existing relationships, which can only help global cooperation.

The second takeaway is that as grave as our challenges are, the threat of escalating conflict and severe economic pressures on all nations seem to be focusing minds and increasing the willingness to engage and cooperate—out of necessity if nothing else.

The G20 summit was the second major one this year to surpass expectations after the 12th World Trade Organization Ministerial Conference in June surprised observers by agreeing on a plan to reform the organization and its dispute settlement mechanism. The G20 statement reiterated support for this WTO reform plan, which will be critical to get the free trade agenda back on track and provide a much-needed boost for the global economy.

Third, and perhaps most significantly for the long term, the recent summits marked an acceleration of the trend towards multi-polarization in international diplomacy, and in particular, the rising influence of non-aligned “middle powers” to shape multilateral outcomes.

The middle powers represented at ASEAN, the G20 and APEC have huge stakes in avoiding a bifurcation of the global economy that might result from a new cold war. They don’t want to be forced to pick sides and many show a growing willingness and ability to build bridges and restore positive momentum for multilateralism.

Indonesia is a prime example. The country’s strategic heft and non-aligned credibility make it well-placed to bridge different camps. President Joko Widodo made a big political bet on the success of the G20 and has won praise for the deft diplomacy that kept the organization alive and got it to a joint statement.

The Indian delegation reportedly also played a big role in achieving consensus on language in the statement, with the BRICS group (Brazil, Russia, India, China and South Africa)—as well as Indonesia—turning out to be crucial swing voters in securing the joint statement. One Indian official said it was “the first [G20] summit where developing nations shaped the outcome.”

There is scope for this trend to continue next year as middle powers continue to rise in stature, and India and Indonesia take over the presidency of the G20 and ASEAN, respectively. Brazil will host the G20 the year after.

Over in Sharm el-Sheikh at the COP27 UN climate summit, another middle power—the host Egypt—also won praise for helping to shepherd a historic financing deal for poor countries affected by climate change. But the ultimate failure to reach a commitment to phase down fossil fuels was a sobering reminder of the huge difficulties that remain in forging the global consensus needed to overcome our shared challenges.

Climate-Watching: A Collision of Economics and History: In Pennsylvania, the Debate over Climate Is a Bitter One

The state has both a long history of environmental action and a longstanding dependence on fossil fuels.

[from Inside Climate News, by David Shribman, July 17, 2022]

This is a state where natural gas production reached a record 7.1 trillion cubic feet in 2020, the most of any state outside Texas and more than the energy supplied by the state’s nuclear power plants. It’s a state that has 49 underground gas storage sites, more than any other in the nation.  Its coal production ranks behind only Wyoming and West Virginia, and only Wyoming and Texas export more total energy to other parts of the country.

This is also a state where voters will select a new governor and a new senator in November. No state has more vital elections this year; no state has a more complicated and more contentious political culture; and no state provides a better test case for environmental issues and for the future of the climate-change debate.

Welcome to Pennsylvania.

Don’t pack a sweater: the average temperature in the state has risen by 2.8 degrees Fahrenheit since the first Earth Day, in 1970, a bigger increase than the national average.

Don’t breathe deeply: the state’s two major cities, Philadelphia and Pittsburgh, are among the nation’s worst 25 metropolitan areas for annual particulate air pollution

And don’t fail to note the irony—of a state whose economy and lifestyle are unusually dependent on fossil fuels but whose history is unusually rich in the love of nature and the protection of the environment. It is this collision of economics and history that makes environmental issues so emotional, the debate so bitter, the outcome so vital.

Pennsylvania was the home of John J. Audubon, who cultivated in Americans a love of bird life; Rachel Carson, whose clarion call about the environment jolted the country and shook the Kennedy administration; John Chapman, known to school children nationwide as Johnny Appleseed; J. Horace McFarland, a photographer and conservationist celebrated as the Father of the National Park Service; Harold L. Ickes, the pathfinding Secretary of the Interior during the Franklin D. Roosevelt years who shored up perhaps the least effective and most corrupt arm of government while elevating the standards and practices of the National Park Service; and Jerome Rodale, the publisher whose books gave voice to the ethos of sustainable agriculture. And it was the adopted home of William Penn, the founder of the colony that would bear his name and the author of a conservation edict requiring that 20 percent of the land in the Province of Pennsylvania be preserved as wooded. It is no surprise that Pennsylvania was one of the first states to adopt an Environmental Bill of Rights.

But Pennsylvania also was the setting for environmental milestones of an entirely different type. In Donora, a 1948 smog episode killed 20 people and saddled some 40 percent of the town’s population with respiratory disease. A third of a century later, the partial meltdown of Unit 2 of the Three Mile Island nuclear plant in Dauphin County spewed radioactivity into the Harrisburg area. 

The state has had multiple mine disasters and the subsequent contamination of nearby fields and streams. As early as 1883, the explorer and adventure travel writer Willard Glazer wrote that Pittsburgh’s industry was “rendered possible by the coal which abounds in measureless quantity in the immediate neighborhood of the city”—and which contributed to the poisoning of many of the area’s waterways and the despoiling of the air. As late as 1940, 81 percent of the city’s dwellings burned coal. The emissions from the steel mills that helped the country win two world wars and build a robust mass-consumer economy only added to the environmental distress.

This duality is part of, defines all of, Pennsylvania’s natural and political history.  It is embedded in the origin story of Pennsylvania and reinforced in contemporary history. In the WPA Guide to Pennsylvania, the writers of the New Deal-era product of the Federal Writers Project spoke in 1940 of how the main plant of the Pittsburgh Plate Glass Company in Ford City, Pennsylvania, “extends for a mile along Third Avenue in a series of long squat units composed of red brick,” and how the state’s Red Hills were exceeded only in Belgium as “the finest farm section in the world.” Precisely three-quarters of a century ago, in his classic 1947 book, Inside U.S.A., the journalist John Gunther wrote, “To a degree the story of Pennsylvania is the story of iron, coal, and steel. Yet of its 26 million acres, almost half is forest!”

A state known for producing metals and fouling the air is also a state known for hunting grouse, pheasant, deer and bear. A state teeming with factory workers is a state loaded with farmers. A state with two major power centers, Philadelphia and Pittsburgh, is a state where elections often are decided in the agricultural “T” between the two. A state known for building belching steel plants is also a state where, this spring, the owners of Fallingwater, the Frank Lloyd Wright masterpiece, announced that they would install solar panels on the iconic house to offset the power used at the site on Bear Run in Fayette County. And when it comes to environmental issues, Pennsylvania is a state where manufacturing and banking interests have enormous influence in the stately Capitol in Harrisburg, and also a state full of climate activists determined to hold industry in check and battle climate change.

“It is particularly difficult in Pennsylvania to come to any agreement on environmental issues because coal and natural gas have countervailing pressure against attempts to deal with climate change,” said Joel A. Tarr, a Carnegie Mellon University historian who studies the effect of technology on the urban environment. “When you tell people that we have a problem with air quality here, their response is that it used to be much worse. This is a place where we won’t have a water-quality solution until we have a cholera epidemic and we won’t address climate change until we have a major catastrophe that brings it home to Pennsylvania.”

Not that there haven’t been efforts. “A generalized good always takes a back seat to a specific interest,” Gov. Tom Wolf, a Democrat, told me in an interview for this article. “We all benefit from a healthy environment, but there are specific interests that are specifically harmed if we do the right thing. Those specific interests have a lot of power in places like Harrisburg.”

The frequent result of these countervailing impulses and competing interests: paralysis on environmental matters, even as the latest United Nations report, published in April, warned that the world was on a path to a rate of global warming more than double the 2.7-degrees Fahrenheit set as the preferred global goal in 2015 in Paris.

U.N. Secretary General António Guterres warned that the result would be “unprecedented heatwaves, terrifying storms, widespread water shortages and the extinction of a million species of plants and animals,” adding, “This is not fiction or exaggeration. It is what science tells us will result from our current energy policies.”

 A City (and State) in Crisis

As man proceeds toward his announced goal of the conquest of nature, he has written a depressing record of destruction, directed not only against the earth he inhabits but against the life that shares it with him.

Rachel Carson, in Silent Spring

In many ways, Pittsburgh—once smoky, still gritty, now proud of its “eds-and-meds” economy, its edgy youth culture and yeasty locavore restaurant scene—stands as a symbol of Pennsylvania’s environmental and climate crisis.

In the past half century, the city’s average temperature has risen by 2.8 degrees, according to figures compiled by Climate Central—a jarring result for a city where the local political grandees like to emphasize how the area has moved beyond its heavy-manufacturing past. Even with the dramatic decline in the steel industry, Pittsburgh remains the 10th worst city in the country in terms of the presence of short-term particulate matter, and the Breathe Meter indicator that monitors the area’s air has found that 88.5 percent of metro areas in the country have cleaner air. Moreover, a study by Community Partners in Asthma Care found that the rate of asthma in Pittsburgh-area school children is nearly three times the national average.

For generations, no essay on the environment of Pennsylvania was complete without citing Charles Dickens’ characterization of mid-19th century Pittsburgh as “hell with the lid lifted,” or Lincoln Steffens’ complaint about the city’s “smoky gloom” and the “volcanic light upon the cloud of mist and smoke” that appeared with the periodic opening of the blast furnaces. When my wife and I bought a house in Pittsburgh two decades ago—when almost the entire steel industry had closed down in the area—we paid thousands of dollars to have a century’s worth of soot blasted from the brick facade.

All of that before the word “fracking” was introduced into the lexicon of the Pennsylvania debate.

“There is gas in the ground and people have been taking it out of the ground since before I was governor,” Wolf said in the interview. “If I could snap my fingers, we would go completely to wind and solar. I haven’t figured out how to do this. The job is to manage the transition to that energy future.”

Republicans in recent years have sought to deregulate the natural gas industry, expand drilling, ease stipulations for gas permits, open state parklands for energy extraction and open new opportunities for gas pipelines, having the state subsidize them.

“These things were not always Republican goals,” said David Hess, who was secretary of the Pennsylvania Department of Environmental Protection under Republican Governors Tom Ridge and Mark Schweiker. “Republicans once had environmental issues as a pretty high priority. Only recently have Republicans changed their approach. This issue is no longer bipartisan, and that applies especially to climate change. But the only way we can break the loop we are on is to do something different, and yet industry and their Republican allies want more and more. Putting all the stuff in the air from fossil fuels cannot be good, especially when we have clean alternatives.”

And yet the Keystone State has not been entirely a conscientious objector to environmental initiatives.

At a time when there was so much soot in the air that Pittsburgh kept its street lights on all day long and businessmen were forced to change their soiled shirts after returning from a walk to a lunch appointment, Mayor David Lawrence undertook a dramatic anti-smoke campaign in 1946 that greatly improved the air quality in the city. “I am convinced that our people want clean air,” the mayor said in his first inaugural address. “There is no other single thing which will so dramatically improve the appearance, the health, the pride, the spirit of the city.”

Lawrence was not alone. “The advocates of the Pittsburgh Renaissance conceived of decreased pollution as a means of assisting the transition of the city from a heavy-industry to a service economy by improving, modernizing, and reconstructing its central business district,” Stefano Laconi, who teaches the history of the Americas at the University of Florence, wrote in a 1999 essay in the journal Pennsylvania History. He argued that the initiative provided Lawrence “not only with the foundation of a public-private partnership but also with the basis of a bipartisan political coalition with local Republican moguls like Richard King Mellon.”

Years later, Republican Gov. Ridge, with Democratic support, began his administration with an initiative to clean up and redevelop brownfield sites. At the same time, the legislature won national attention by reorganizing the state’s approach to these issues, creating separate departments of Environmental Protection, which concentrates on protecting the air, water and land from pollution, and Conservation and Natural Resources, focused on state parks and state forests.

“At the beginning of my administration, I issued a challenge to Pennsylvania to become a national leader in finding new ways to protect our environment while promoting economic progress, to provide for the needs of the present without compromising the ability for future generations to meet needs of their own, and to think in terms of sustainability, with both the economy and our environment,” Ridge told me.  

The governor was fond of quoting the adage, “We do not inherit the earth from our ancestors; we borrow it from our children.” As governor, he said that,“I would often remind myself that the air we breathe and the water we drink should never be taken for granted.”

Much to be Done and an Election That Matters

The fact that a man is to vote forces him to think.

Jonathan Chapman, known as Johnny Appleseed

Ordinarily, the multi-interest collision of jobs and climate, energy and environment, might be top-shelf issues in a state that ranks second only to Texas in energy production and that had the largest increase in natural-gas production in the last decade. But that collision is a side show rather than the main event.

“All of these candidates need to speak up and tell us what they would do about the energy situation and the climate crisis that is growing more critical by the minute,” said Larry Schweiger, a former president of the National Wildlife Federation, PennFuture and the Western Pennsylvania Conservancy. “It is very frustrating to see candidates for governor and the Senate not making an effort to say how they would address these urgent issues. Both parties are guilty of  this, and it is a big omission and a big problem.”

Now Democratic Attorney General Josh Shapiro and Republican state Sen. Douglas Mastriano are facing off for governor and Democratic Lt. Gov. John Fetterman and Republican celebrity doctor Mehmet Oz are fighting for the U.S. Senate seat being relinquished by GOP Sen. Patrick Toomey

The four will face questions about their commitment to climate change with new urgency—and new stakes. And the pressure may well come from a newly critical group of voters: young people.

A Harris Poll survey conducted with 4-H found just fewer than half of teenagers believe political and global leaders are taking meaningful action to protect the environment. There is reason to believe that the top tier of teenagers, eligible to vote, and their older brothers and sisters will be motivated and perhaps mobilized by these issues.

“There’s no question that environmental issues are far more critical for younger voters,” said Steven Farnsworth, the political scientist who is director of University of Mary Washington’s Center for Leadership and Media Studies in Virginia. “This has been going on since the first Earth Day. It has to do with the fact that younger people are going to be on this planet longer than older people.”

The approach that these four nominees bring to these matters is important. “It’s not about issues, it’s about values,” said John Della Volpe, director of polling at Harvard Kennedy School of Government’s Institute of Politics and the author of the newly published How Gen Z is Channeling Their Fear and Passion to Save America. “And the degree to which candidates can connect climate change into values, and display that they are thinking about the future, they could affect the turnout of young people and how they do vote.”

There is much to be done. Pennsylvania ranks 19th among the states in the rate of growth for wind power, according to the PennEnvironment Research and Policy Center, and 23rd among the states in the rate of growth for solar power. The potential is great; if solar units were placed on the roofs of Pennsylvania’s big-box stores, for example, the result could be the annual production of more than 3,000 gigawatt-hours of clean electricity. There are bills in the legislature to require the state’s suppliers of electricity to generate nearly a third of their energy from renewable sources by 2030 and to put the state on a course to having 100 percent of its energy needs provided by wind and solar energy and other sources by the middle of the century.

Much of the emphasis will be on the state level, which is why the gubernatorial race between Shapiro, the Democratic attorney general, and GOP state Sen. Mastriano is so critical.

Shapiro speaks easily about clean energy, says he believes that more electric-vehicle infrastructure investments must be made, and pledges strict monitoring of the state’s utility companies. But he has broken with Gov. Wolf over whether the state should join the Regional Greenhouse Gas Initiative, known as RGGI, which puts a price and descending cap on carbon emissions. With an eye toward the power of the state’s building trades, he believes RGGI will be ineffective and will cause hardship among the state’s energy workers and companies.

As the state’s Democratic Senate candidate, Lt. Gov. Fetterman speaks of the climate issue as an “existential crisis” and argues that the jobs-versus-environment calculus represents a false choice. “We still need to make stuff in this country, you know?” A onetime advocate of a moratorium on new fracking sites, he now sees a rationale for a limited, perhaps temporary, expansion. “I have been steadfastly talking about how important it is that we retain the manufacturing jobs and the energy jobs in Pennsylvania that currently provide our energy security,” he said at a debate at Carnegie Mellon University, but added, “We also must acknowledge and recognize that we have to trend …. away from these.”

The Republican candidates in these two high-profile races take substantially different positions from their Democratic rivals. Oz, the Senate candidate, has abandoned his onetime advocacy of strict environmental regulation and calls for the “freedom to frack.” Mastriano, the Republican gubernatorial nominee, has argued that Wolf’s RGGI plan would “do far more harm than good” and this spring he submitted legislation to ban the federal government from regulating coal and gas extraction in Pennsylvania and to exempt the state’s industrial plants from the federal wastewater and air pollution rules. “We’re going to open up our energy sector like you’ve never seen,” Mastriano said at his victory celebration after he won the GOP primary.

A Monumental Figure

Unless we practice conservation, those who come after us will have to pay the price of misery, degradation, and failure for the progress and prosperity of our day.

Gifford Pinchot

If there is one symbol of the tensions, perspectives, history and impulses of Pennsylvania in environmental matters it is not the gentle Audubon, who nurtured a love of birds in the heart and mind of the nation, nor the hard-faced leaders of power plants and coal mines. It is not the passionate Carson nor the resolute lobbyists who besiege the legislative chambers in Harrisburg. All are part of the Keystone State culture, but none of them personifies the colliding interests in this vital and emotional area of political conflict.

Only one person does, and that is Gifford Pinchot.

Today, Pinchot is largely a forgotten figure, overshadowed as a conservationist by John Muir, eclipsed as a visionary by Theodore Roosevelt. Today, Gaylord Nelson, the late senator from Wisconsin and the founder of Earth Day, is regarded as the political magus of the conservation movement, a title once plausibly claimed by Pinchot. Today the world regards Wangari Maath, the Kenyan activist who founded the Green Belt Movement and won the 2004 Nobel Peace Prize, as the most celebrated troubadour and warrior for the environment.

All these titles once belonged to Pinchot, a monumental figure who was the 28th governor of the Commonwealth of Pennsylvania. He served two terms in the Capitol and lived in a family home named Grey Towers, just outside the tourist town of Milford, Pennsylvania. The home is now a National Historic Site and home to the Pinchot Institute for Conservation, dedicated to fashioning innovative responses to conservation and environmental challenges.

Pinchot, who died in 1946, went to his grave with a green-plated resume: First chief of the U.S. Forest Service. Chief of the U.S. Division of Forestry. Head of the Pennsylvania forestry division. At one time, the term “Pinchotism” was derided in Congress by business interests the way “Reaganomics” was criticized by early 1980s Democrats—until Pinchotism, like Reagonomics, was redeemed in the public eye.

And yet Pinchot does not wear an unblemished hero’s halo in history. Until recent damaging disclosures, that belonged to his chief rival, John Muir, his one-time ally and patron, though the shine on Muir was darkened in 2020, when Michael Brune, executive director of the Sierra Club that Muir helped found in 1892, cited him for having “made derogatory comments about Black people and Indigenous peoples that drew on deeply harmful racist stereotypes, though his views evolved later in his life.”

But in the long-ago conflict between Muir and Pinchot that spanned the period 1908 to 1913 and spilled over into later years is a story that captures the conflict at the heart of the environmental issue in the nation—and in Pinchot’s home state.

In the perspective of today, Pinchot had an ability, in the phrasing of his biographer, Char Miller, “to maintain what might seem like contradictory impulses—the desire to live simultaneously and within nature, to exult in its splendors while exploring its resources.” But in his titanic clash with Muir, Pinchot was cast as the bête noire of the movement he plausibly could claim to have helped create.

Muir was all about preservation and Pinchot was about wise or multiple uses of the land,” Douglas Brinkley, the Rice University historian who wrote about the PinchotMuir conflict in his 2010 The Wilderness Warrior, said in an interview. “The dispute was over what was conservation. Muir became a folk hero through the long shadow of the Sierra Club but Pinchot never had a legacy organization group.”

The venue of the clash was the Hetch Hetchy Valley in Yosemite National Park, but its implications extended nationwide and the forces at play continue to collide in Pennsylvania. Pinchot, a close advisor and friend to Theodore Roosevelt, was caught in the vise created by the moral passion of conservationists and the physical thirst of Californians. San Francisco wanted water, early environmentalists worshiped wilderness. There was no middle ground, though Pinchot was caught in the middle of the struggle.

It was, as the Library of Congress would characterize it a century later, “a division between those committed to preserving the wilderness and those more interested in efficient management of its use.” The two combatants had conflicting profiles: Pinchot was an insider, Muir was an outsider. Thus Muir claimed the moral high ground as the protector of the outdoors. The battle between the two men had its origins in Muir’s evolution to a view that, as Miller characterized it in his monumental 2001 Gifford Pinchot and the Making of Modern Environmentalism, “the practice of forestry and the preservation of wilderness were incompatible, a tentative conclusion that would harden into conviction in the first years of the new century.” The result was temporarily to place Pinchot, politically if not emotionally—and supremely awkwardly—in the same camp as his traditional opponents, business executives with a lust for land and lucre.

Pinchot saw this issue as a struggle between “the extreme desirability of preserving the Hetch Hetchy in its original beauty” against the legitimate water needs of San Francisco and other communities in the Bay area. Muir, in a letter to Pinchot, said the proposal to flood the valley to provide water for “the dear people” was “full of graft,” later characterizing it as a moral outrage and a mortal threat to wilderness values. It was a classic confrontation between a master of the political world and a mystic of the natural world.

The struggle wore on for years. Later Pinchot would tell a congressional hearing that “injury to Hetch Hetchy by substituting a lake for the present swampy shore of the valley…is altogether unimportant when compared with the benefits to be derived from its use from a reservoir.”

In the end, Hetch Hetchy was flooded and, though Pinchot remained prominent in conservation circles—he was advising Franklin Delano Roosevelt on these matters as they related to the future United Nations as late as the World War II years—his reputation was no longer unsullied.

The crosswinds of the Hetch Hetchy controversy—the issues it raised, the passions it ignited, the arguments it prompted—now blow as a gale through Pinchot’s home state. They are the prevailing winds of Pennsylvania.

A Step in the Right Direction

A true conservationist is a man who knows that the world is not given by his fathers, but borrowed from his children.

John J. Audubon

Coal once accounted for 60 percent of all electricity generated in Pennsylvania, a rate that has declined by more than half; today only a handful of large grid-connected coal-fired electric plants operate in the state. That represents a steep decline, though Homer City Generation said this spring that it would not follow through with tentative plans to deactivate its units in Indiana County. “This decreasing dependence on these sorts of plants shows we are going in the right direction in reducing climate-changing emissions from coal-fired plants,” said Hess, the former GOP environmental commissioner. “But it is mostly because of the competition between natural gas and coal. The problem is that we are now getting down to the point in the power sector that we can’t get additional big emission reductions. There aren’t more plants to close to give us those reductions. So we have to adopt other kinds of strategies.”

Pennsylvania has more than 86,000 miles of streams, more than any state in the lower 48. The miles of these waterways that can support brook trout are dwindling, in part because of climate change and in part because the invasion of the hemlock wooly adelgid insect has infected the shoreline hemlock trees that otherwise would provide shade for the streams.

This is only the latest incarnation of the centuries-long decline in the health of the state’s waterways. In the 18th century, the British army captain Harry Gordon pronounced the site of the confluence of Pittsburgh’s three rivers as “the most healthy, the most pleasant, the most commodious, the most fertile spot of Earth known to European people.” A century later, another British observer said that in Pittsburgh, “Man befouled the streams, bedraggled their banks, ripped up the cliffs, hacked down the trees, and dumped refuse in their stead.”

But the environmental crisis is not confined to western Pennsylvania. To take a random reading of air pollution in the state, Pennsylvania’s worst air quality on April 5 was in Mechanicsburg, outside Harrisburg, in the center of the state, followed by New Bloomfield, 23 miles away, according to IQ Air real-time figures. At the same time, Wilkes-Barre, with an average increased temperature of 3.3 degrees since 1970, substantially beats the average national rate of 2.6 degrees. So does State College, at an increase of 3 degrees.

Over the decades, the emphasis has changed from “conservation” to “stopping climate change,” with the threat of neighborhood contamination (the late 1970s), acid rain (the early 1980s), and the ozone hole (the mid 1980s) joined by global warming, a term introduced into the scientific and then the political lexicon when James Hansen, a NASA atmospheric expert warned a Congressional committee in 1988 that he and a set of climate modelers believed they could “confidently state that major greenhouse climate changes are a certainty.” He told the lawmakers that “the global warming predicted in the next 20 years will make the Earth warmer than it has been in the past 100,000 years.”

Opposition from an Unusual Coalition

To contemplate nature, magnificently garbed as it is in this country, is to restore peace to the mind, even if it does make one realize how small and petty and futile the human individual really is.

Harold Ickes

Many of the political tensions in Pennsylvania were visible in the debate that began last year—and became even more bitter this year—over RGGI. Gov. Wolf made becoming a part of the alliance of 10 New England and Middle Atlantic states—and, as a result reducing Pennsylvania’s greenhouse gas emissions by as many as 227 million tons by 2030—one of the top priorities of his final year in office.

The result was opposition by an unusual coalition of Republicans and labor unions, who argued that the governor’s plan would reduce jobs in the state.

“The ‘jobs-versus-environment’ framework is almost always part of these debates,” said Christopher Borick, a political scientist at Muhlenberg College in Allentown. “Environmental laws are for the public good—to protect the health and well being of individuals—so it is hard to argue against that. So what do you use as your argument? Jobs. It is sometimes a false choice, and often the environmentally sensitive approach can be a good economic choice. But politically, it is very powerful argument even if the reality isn’t the case.”

Last December, the Republican-controlled legislature passed a resolution that would halt the governor’s effort to join RGGI. The governor then exercised his veto, citing technicalities in the resolution and arguing that joining the group “is a vital step for Pennsylvania to reduce carbon emissions and achieve our climate goals.” When a stay issued by the Commonwealth Court expired in late April, the Wolf administration went ahead and published the regulation, and in less than a day the odd-couple coalition of coal unions and coal companies went to court to fight the order, which required operators of power plants fired by coal and natural gas to buy allowances for every ton of carbon dioxide they emitted.

“I want to give $150 million a year to a board headed by organized labor,” the governor, referring to a trust fund to aid individuals displaced by the transition to sustainable energy sources, told Inside Climate News as the controversy raged. “What don’t they like about this?”

In a separate interview, state Sen. Wayne Fontana, the chairman of the chamber’s Democratic Caucus and a member of the Game and Fisheries Committee, described the resistance mounted by Republicans in the legislature as “a wedge to use against the Democratic gubernatorial candidate in the fall.” He said the state has taken substantial steps to address environmental threats, arguing, “We have done a lot with lead in the water, we have beaten up air and water polluters.”

A Lack of Urgency

And so we live in a time when change comes rapidly—a time when much of that change is, at least for long periods, irrevocable. This is what makes our own task so urgent. It is not often that a generation is challenged, as we today are challenged. For what we fail to do—what we let go by default, can perhaps never be done.

Rachel Carson, accepting the Audubon Medal of the National Audubon Society in 1963

Now the challenge is global warming, which dwarfs the threat from 19th century industrial pollution and 20th century acid rain.

This past year did not have a silent spring when it came to the climate change issue. Indeed, the reports were more dire, the warnings more urgent, the lack of substantial attention more dangerous. The world, and Pennsylvania, face dramatic alternative outcomes from their actions or inaction. One choice might redound to cities underwater or lower energy consumption as a result of the creation of, in the characterization of the Intergovernmental Panel on Climate Change, of  “compact, walkable cities.” Another might be a continued reliance on private, gasoline-powered automobiles, trucks and buses or the “electrification of transport in combination with low-emission energy sources, and enhanced carbon uptake and storage using nature.”

The April report of the IPCC, the United Nations group that assesses science in relation to global warming, was sobering if not chilling. The bottom line: Net emissions are continuing to rise. “It’s now or never, if we want to limit global warming to 1.5°C [2.7°F] without immediate and deep emissions reductions across all sectors,” said Jim Skea, co-chair of the working group that produced the latest report, “it will be impossible.”

That will require what the IPCC working group co-chair Priyadarshi Shukla described as “the right policies, infrastructure and technology…to enable changes to our lifestyles and behavior.” And it will require a combination of policies and planning.

“We are opposed to long-term planning here in Pennsylvania,” said Professor Tarr of Carnegie Mellon University. “We react to crises, and we do so inadequately. People here generally have no sense of urgency about these kinds of issues.”

David Shribman served as editor of the Pittsburgh Post-Gazette for 16 years and won a Pulitzer Prize for his reporting on American political culture as Washington bureau chief of The Boston Globe. He now writes a nationally syndicated column, contributes a separate column to The Globe and Mail in Canada, and teaches American politics at both McGill University’s Max Bell School of Public Policy and Carnegie Mellon University.

Climate Policy: Loss and Damage from Climate Change

(from Social Watch and Global Policy Watch’s UN Monitor)

Loss and Damage from Climate Change: How Much Should Rich Countries Pay?

(Download UN Monitor #10 [archived PDF])

“The wealthy countries must begin providing public climate finance at the scale necessary to support not only adaptation but loss and damage as well, and they must do so in accordance with their responsibility and capacity to act.” This is the main message of a technical report titled “Can Climate Change-Fueled Loss and Damage Ever Be Fair?” launched on the eve of the UN Climate Change Conference (COP25) to be held in Madrid from 2 to 13 December.

The U.S. and the EU owe more than half the cost of repairing future damage says the report, authored by Civil Society Review, an independent group that produces figures on what a “fair share” among countries of the global effort to tackle climate change should look like.

“The poorer countries are bearing the overwhelming majority of the human and social costs of climate change. Consider only one tragic incident—the Cyclones Idai and Kenneth—which caused more than $3 billion in economic damages in Mozambique alone, roughly 20% of its GDP, with lasting implications, not to mention the loss of lives and livelihoods” argues the report. “Given ongoing and deepening climate impacts, to ensure justice and fairness, COP25 must as an urgent matter operationalize loss and damage financing via a facility designed to receive and disburse resources at scale to developing countries.”

The UN Framework Convention on Climate Change (UNFCCC) has defined loss and damage to include harms resulting from sudden-onset events (climate disasters, such as cyclones) as well as slow-onset processes (such as sea level rise). Loss and damage can occur in human systems (such as livelihoods) as well as natural systems (such as biodiversity).

Eight weeks after Hurricane Dorian—the most intense tropical cyclone to ever strike the Bahamas—Prime Minister of Barbados, Mia Amor Mottley, spoke at the United Nations Secretary General’s Climate Action Summit. She said: “For us, our best practice traditionally was to share the risk before disaster strikes, and just over a decade ago we established the Caribbean Catastrophic Risk Insurance Facility. But, the devastation of Hurricane Dorian marks a new chapter for us. Because, as the international community will find out, the CCRIF will not meet the needs of climate refugees or, indeed, will it be sufficient to meet the needs of rebuilding. No longer can we, therefore, consider this as an appropriate mechanism…There will be a growing crisis of affordability of insurance.”

An April 2019 report from ActionAid revealed the insurance and other market based mechanisms fail to meet human rights criteria for responding to loss and damage associated with climate change. The impact of extreme natural disasters is equivalent to an annual global USD$520 billion loss, and forces approximately 26 million people into poverty each year.

Michelle Bachelet, UN High Commissioner for Human Rights, recently warned that the climate crisis is the greatest ever threat to human rights. It threatens the rights to life, health, housing and a clean and safe environment. The UN Human Rights Council has recognized that climate change “poses an immediate and far reaching threat to people and communities around the world and has implications for the full enjoyment of human rights.” In the Paris Agreement, parties to the UN Framework Convention on Climate Change (UNFCCC) acknowledged that they should—when taking action to address climate change—respect, promote and consider their respective obligations with regard to human rights. This includes the right to health, the rights of indigenous peoples, local communities, migrants, children, persons with disabilities and people in vulnerable situations and the right to development, as well as gender equality, the empowerment of women and intergenerational equity. Tackling loss and damage will require a human-rights centered approach that promotes justice and equity.

Across and within countries, the highest per capita carbon emissions are attributable to the wealthiest people, this because individual emissions generally parallel disparities of income and wealth. While the world’s richest 10% cause 50% of emissions, they also claim 52% of the world’s wealth. The world’s poorest 50% contribute approximately 10% of global emissions and receive about 8% of global income. Wealth increases adaptive capacity. All this means that those most responsible for climate change are relatively insulated from its impacts.

Between 1850 and 2002, countries in the Global North emitted three times as many greenhouse gas (GHG) emissions as did the countries in the Global South, where approximately 85% of the global population resides. The average CO2 emissions (metric tons per capita) of citizens in countries most vulnerable to climate change impacts, for example, Mozambique (0.3), Malawi, (0.1), and Zimbabwe (0.9), pale in comparison to the average emissions of a person in the U.S. (15.5), Canada (15.3), Australia (15.8), or UK (6).

In the 1980s, oil companies like Exxon and Shell carried out internal assessments of the carbon dioxide released by fossil fuels, and forecast the planetary consequences of these emissions, including the inundation of entire low-lying countries, the disappearance of specific ecosystems or habitat destruction, destructive floods, the inundation of low-lying farmland, and widespread water stress.

Nevertheless, the same companies and countries have pursued high reliance on GHG emissions, often at the expense of communities where fossil fuels are found (where oil spills, pollution, land grabs, and displacement is widespread) and certainly at the expense of public understanding, even as climate change harms and risks increased. Chevron, Exxon, BP and Shell together are behind more than 10% of the world’s carbon emissions since 1966. They originated in the Global North and its governments continue to provide them with financial subsidies and tax breaks.

Responsibility for, and capacity to act on, mitigation, adaptation and loss and damage varies tremendously across nations and among classes. It must also be recognized that the Nationally Determined Contributions (climate action plans or NDCs) that have thus far been proposed by the world’s nations are not even close to being sufficient, putting us on track for approximately 4°C of warming. They are also altogether out of proportion to national capacity and responsibility, with the developing countries generally proposing to do their fair shares, and developed countries proposed far too little.

Unfortunately, as Kevin Anderson (Professor of Energy and Climate Change at the University of Manchester and a former Director of the Tyndall Centre for Climate Change Research) has said: “a 4°C future is incompatible with an organized global community, is likely to be beyond ‘adaptation,’ is devastating to the majority of ecosystems, and has a high probability of not being stable.”

Equity analysis

The report assess countries’ NDCs against the demands of a 1.5°C pathway using two ‘fair share’ benchmarks, as in the previous reports of the Civil Society Equity Review coalition. These ‘fair share’ benchmarks are grounded in the principle-based claims that countries should act in accordance with their responsibility for causing the climate problem and their capacity to help solve it. These principles are both well-established within the climate negotiations and built into both the UNFCCC and the Paris Agreement.

To be consistent with the UNFCCC’s equity principles—the wealthier countries must urgently and dramatically deepen their own emissions reduction efforts, contribute to mitigation, adaptation and addressing loss and damage initiatives in developing countries; and support additional sustainable actions outside their own borders that enable climate-compatible sustainable development in developing countries.

For example, consider the European Union, whose fair share of the global emission reduction effort in 2030 is roughly about 22% of the global total, or about 8 Gigatons of CO2 equivalent (GtCO2eq). Since its total emissions are less than 5 GtCO2eq, the EU would have to reduce its emissions by approximately 160% per cent below 1990 levels by 2030 if it were to meet its fair share entirely through domestic reductions. It is not physically possible to reduce emissions by more than 100% domestically. So, the only way in which the EU can meet its fair share is by funding mitigation, adaptation and loss and damage efforts in developing countries.

Today’s mitigation commitments are insufficient to prevent unmanageable climate change, and—coming on top of historic emissions—they are setting in motion devastating changes to our climate and natural environment. These impacts are already prevalent, even with our current global average surface temperature rise of about 1°C. Impacts include droughts, firestorms, shifting seasons, sea-level rise, salt-water intrusion, glacial retreat, the spread of vector borne diseases, and devastation from cyclones and other extreme weather events. Some of these impacts can be minimized through adaptation measures designed to increase resilience to inevitable impacts.

These measures include, for example, renewing mangroves to prevent erosion and reduce flooding caused by storms, regulating new construction so that buildings can withstand tomorrow’s severe weather, using scarce water resources efficiently, building flood defenses, and setting aside land corridors to help species migrate. It is also crucial with such solutions that forest dwelling and indigenous peoples be given enforceable land rights, for not only are such rights matters of basic justice, they are also pragmatic recognitions of the fact that indigenous peoples have successfully protected key ecosystems.

Tackling underlying social injustices and inequalities—including through technological and financial transfers, as well as though capacity building—would also contribute to increasing resilience. Other climate impacts, however, are unavoidable, unmanageable or unpredictable, leading to a huge degree of loss and damage. Experts estimate the financial damage also will reach at least USD$300-700 billion by 2030, but the loss of locally sustained livelihoods, relationships and connections to ancestral lands are incalculable.

Failure to reduce GHG emissions now—through energy efficiency, waste reduction, renewable energy generation, reduced consumption, sustainable agriculture and transport—will only deepen impacts in the future. Avoidable impacts require urgent adaptation measures. At the same time, unavoidable and unmanageable change impacts—such as loss of homes, livelihoods, crops, heat and water stress, displacement, and infrastructure damage—need adequate responses through well-resourced disaster response plans and social protection policies.

For loss and damage financing, developed countries have a considerable responsibility and capacity to pay for harms that are already occurring. Of course, many harms will be irreparable in financial terms. However, where monetary contributions can help restore the livelihoods or homes of individuals exposed to climate change impacts, they must be paid. Just as the EU’s fair share of the global mitigation effort is approximately 22% in 2030, it could be held accountable for that same share of the financial support for such incidents of loss and damage in that year.

The table below provides an illustrative quantification of this simple application of fair shares to loss and damage estimates, and how they change if we compute the contribution to global climate change from the start of the industrial revolution in 1850 or from 1950.

Table 1: Countries’ Share of Global Responsibility and Capacity in 2019, the time of Cyclones Idai and Kenneth, as illustrative application of a fair share approach to Loss and Damage funding requirements.

Country/Group of CountriesFair Share (%) 1950 Medium BenchmarkFair Share (%) 1850 High Benchmark
USA30.4%40.7%
European Union23.9%23.2%
Japan6.8%7.8%
Rest of OECD7.4%8.8%
China10.4%7.2%
India0.5%0.04%
Rest of the World20.6%12.3%
Total100%100%

The advantage of setting out responsibility and capacity to act in such numerical terms is to drive equitable and robust action today. Responsible and capable countries must—of course—ensure that those most able to pay towards loss and damage repairs are called upon to do so through domestic legislation that ensures correlated progressive responsibility. However, it should also motivate mitigation action to ensure that harms are not deepened in the future.

In the Equity analysis used here, capacity—a nation’s financial ability to contribute to solving the climate problem—can be captured by a quantitative benchmark defined in a more or less progressive way, making the definition of national capacity dependent on national income distribution. This means a country’s capacity is calculated in a manner that can explicitly account for the income of the wealthy more strongly than that of the poor, and can exclude the incomes of the poorest altogether. Similarly, responsibility—a nation’s contribution to the planetary GHG burden—can be based on cumulative GHG emissions since a range of historical start years, and can consider the emissions arising from luxury consumption more strongly than emissions from the fulfillment of basic needs, and can altogether exclude the survival emissions of the poorest. Of course, the ‘right’ level of progressivity, like the ‘right’ start year, are matters for deliberation and debate.1

The report acknowledges “the difficulties in estimating financial loss and damage and the limited data we currently have,” but it recommends nevertheless “a minimal goal of providing at least USD$300 billion per year by 2030 of financing for loss and damage through the UNFCCC’s Warsaw International Mechanism for Loss and Damage (WIM).” Given that this corresponds to a conservative estimate of damage costs, the report further recommends “the formalization of a global obligation to revise this figure upward as observed and forecast damages increase.”

The new finance facility should provide “public climate financing and new and innovative sources of financing, in addition to budget contributions from rich countries, that can truly generate additional resources (such as air and maritime levies, Climate Damages Tax on oil, gas and coal extraction, a Financial Transaction Tax) at a progressive scale to reach at least USD$300 billion by 2030.” This means aiming for at least USD$150 billion by 2025 and ratcheting up commitments on an annual basis. Ambition targets should be revised based on the level of quantified and quantifiable harms experienced.

Further, developing countries who face climate emergencies should benefit from immediate debt relief–in the form of an interest-free moratorium on debt payments. This would open up resources currently earmarked for debt repayments to immediate emergency relief and reconstruction.

Finally, a financial architecture needs to be set up that ensures funding reaches the marginalized communities in developing countries, and that such communities have decision making say over reconstruction plans. Funds should reach communities in an efficient and effective manner, taking into account existing institutions as appropriate.

Currently, the Paris Rulebook allows countries to count non-grant instruments as climate finance, including commercial loans, equity, guarantees and insurance. Under these rules, the United States could give a USD$50 million commercial loan to Malawi for a climate mitigation project. This loan would have to be repaid at market interest rates—a net profit for the U.S.—so its grant-equivalence is $0. But under the Paris Rulebook, the U.S. could report the loan’s face value ($50 million) as climate finance. This is not acceptable. COP25 must ensure that the WIM has robust outcomes and sufficient authority to deliver a fair and ambitious outcome for the poorest and most vulnerable in relation to loss & damage.

Note
  1. For more details, including how progressivity is calculated and a description of the standard data sets upon which those calculations are based, see the reference project page.  For an interactive experience and a finer set of controls, see the Climate Equity Reference Calculator. (return to text)

Download UN Monitor #10 [archived PDF]

Essay 106: World Watching: Project Syndicate—New Commentary

from Project Syndicate:

The EU’s EV Greenwash

by Hans-Werner Sinn

EU emissions regulations that went into force earlier this year are clearly designed to push diesel and other internal-combustion-engine automobiles out of the European market to make way for electric vehicles. But are EVs really as climate-friendly and effective as their promoters claim?

MUNICHGermany’s automobile industry is its most important industrial sector. But it is in crisis, and not only because it is suffering the effects of a recession brought on by Volkswagen’s own cheating on emissions standards, which sent consumers elsewhere. The sector is also facing the existential threat of exceedingly strict European Union emissions requirements, which are only seemingly grounded in environmental policy.

The EU clearly overstepped the mark with the carbon dioxide regulation [PDF] that went into effect on April 17, 2019. From 2030 onward, European carmakers must have achieved average vehicle emissions of just 59 grams of CO2 per kilometer, which corresponds to fuel consumption of 2.2 liters of diesel equivalent per 100 kilometers (107 miles per gallon). This simply will not be possible.

As late as 2006, average emissions for new passenger vehicles registered in the EU were around 161 g/km. As cars became smaller and lighter, that figure fell to 118 g/km in 2016. But this average crept back up, owing to an increase in the market share of gasoline engines, which emit more CO2 than diesel engines do. By 2018, the average emissions of newly registered cars had once again climbed to slightly above 120 g/km, which is twice what will be permitted in the long term.

Even the most gifted engineers will not be able to build internal combustion engines (ICEs) that meet the EU’s prescribed standards (unless they force their customers into soapbox cars). But, apparently, that is precisely the point. The EU wants to reduce fleet emissions by forcing a shift to electric vehicles. After all, in its legally binding formula for calculating fleet emissions, it simply assumes that EVs do not emit any CO2 whatsoever.

The implication is that if an auto company’s production is split evenly between EVs and ICE vehicles that conform to the present average, the 59 g/km target will be just within reach. If a company cannot produce EVs and remains at the current average emissions level, it will have to pay a fine of around €6,000 ($6,600) per car, or otherwise merge with a competitor that can build EVs.

But the EU’s formula is nothing but a huge scam. EVs also emit substantial amounts of CO2, the only difference being that the exhaust is released at a remove—that is, at the power plant. As long as coal– or gas-fired power plants are needed to ensure energy supply during the “dark doldrums” when the wind is not blowing and the sun is not shining, EVs, like ICE vehicles, run partly on hydrocarbons. And even when they are charged with solar– or wind-generated energy, enormous amounts of fossil fuels are used to produce EV batteries in China and elsewhere, offsetting the supposed emissions reduction. As such, the EU’s intervention is not much better than a cut-off device for an emissions control system.

Earlier this year, the physicist Christoph Buchal and I published a research paper [PDF, in German] showing that, in the context of Germany’s energy mix, an EV emits a bit more CO2 than a modern diesel car, even though its battery offers drivers barely more than half the range of a tank of diesel. And shortly thereafter, data published [PDF, in German] by Volkswagen confirmed that its e-Rabbit vehicle emits slightly more CO2 [PDF, in German] than its Rabbit Diesel within the German energy mix. (When based on the overall European energy mix, which includes a huge share of nuclear energy from France, the e-Rabbit fares slightly better than the Rabbit Diesel.)

Adding further evidence, the Austrian think tank Joanneum Research has just published a large-scale study [PDF, in German] commissioned by the Austrian automobile association, ÖAMTC, and its German counterpart, ADAC, that also confirms those findings. According to this study, a mid-sized electric passenger car in Germany must drive 219,000 kilometers before it starts outperforming the corresponding diesel car in terms of CO2 emissions. The problem, of course, is that passenger cars in Europe last for only 180,000 kilometers, on average. Worse, according to Joanneum, EV batteries don’t last long enough to achieve that distance in the first place. Unfortunately, drivers’ anxiety about the cars’ range prompts them to recharge their batteries too often, at every opportunity, and at a high speed, which is bad for durability.

As for EU lawmakers, there are now only two explanations for what is going on: either they didn’t know what they were doing, or they deliberately took Europeans for a ride. Both scenarios suggest that the EU should reverse its interventionist industrial policy, and instead rely on market-based instruments such as a comprehensive emissions trading system.

With Germany’s energy mix, the EU’s regulation on fleet fuel consumption will not do anything to protect the climate. It will, however, destroy jobs, sap growth, and increase the public’s distrust in the EU’s increasingly opaque bureaucracy.

Essay 85: U.S. Energy-Related Carbon Dioxide Emissions, 2018 release

The U.S. Energy Information Administration (EIA) has released its analysis of 2018 energy-related carbon dioxide emissions. According to the report, U.S. carbon dioxide (CO2) emissions from the consumption of fossil fuels were 5,269 million metric tons (MMmt) in 2018, an increase of 2.7% (139 MMmt) from the 2017 level. Despite this increase, energy-related CO2 emissions have declined in 6 of the past 10 years. This analysis is based on data contained in the October 2019 Monthly Energy Review.

See the full report [archived PDF].

Essay 83: Press Release: World Energy Outlook 2019 Highlights Deep Disparities in the Global Energy System

Rapid and widespread changes across all parts of the energy system are needed to put the world on a path to a secure and sustainable energy future

Deep disparities define today’s energy world. The dissonance between well-supplied oil markets and growing geopolitical tensions and uncertainties. The gap between the ever-higher amounts of greenhouse gas emissions being produced and the insufficiency of stated policies to curb those emissions in line with international climate targets. The gap between the promise of energy for all and the lack of electricity access for 850 million people around the world.

The World Energy Outlook 2019, the International Energy Agency’s flagship publication, explores these widening fractures in detail. It explains the impact of today’s decisions on tomorrow’s energy systems, and describes a pathway that enables the world to meet climate, energy access and air quality goals while maintaining a strong focus on the reliability and affordability of energy for a growing global population.

As ever, decisions made by governments remain critical for the future of the energy system. This is evident in the divergences between WEO scenarios that map out different routes the world could follow over the coming decades, depending on the policies, investments, technologies and other choices that decision makers pursue today. Together, these scenarios seek to address a fundamental issue – how to get from where we are now to where we want to go.

The path the world is on right now is shown by the Current Policies Scenario, which provides a baseline picture of how global energy systems would evolve if governments make no changes to their existing policies. In this scenario, energy demand rises by 1.3% a year to 2040, resulting in strains across all aspects of energy markets and a continued strong upward march in energy-related emissions.

The Stated Policies Scenario, formerly known as the New Policies Scenario, incorporates today’s policy intentions and targets in addition to existing measures. The aim is to hold up a mirror to today’s plans and illustrate their consequences. The future outlined in this scenario is still well off track from the aim of a secure and sustainable energy future. It describes a world in 2040 where hundreds of millions of people still go without access to electricity, where pollution-related premature deaths remain around today’s elevated levels, and where CO2 emissions would lock in severe impacts from climate change.

The Sustainable Development Scenario indicates what needs to be done differently to fully achieve climate and other energy goals that policy makers around the world have set themselves. Achieving this scenario – a path fully aligned with the Paris Agreement aim of holding the rise in global temperatures to well below 2°C and pursuing efforts to limit it to 1.5°C – requires rapid and widespread changes across all parts of the energy system. Sharp emission cuts are achieved thanks to multiple fuels and technologies providing efficient and cost-effective energy services for all.

“What comes through with crystal clarity in this year’s World Energy Outlook is there is no single or simple solution to transforming global energy systems,” said Dr. Fatih Birol, the IEA’s Executive Director. “Many technologies and fuels have a part to play across all sectors of the economy. For this to happen, we need strong leadership from policy makers, as governments hold the clearest responsibility to act and have the greatest scope to shape the future.”

In the Stated Policies Scenario, energy demand increases by 1% per year to 2040. Low-carbon sources, led by solar PV, supply more than half of this growth, and natural gas accounts for another third. Oil demand flattens out in the 2030s, and coal use edges lower. Some parts of the energy sector, led by electricity, undergo rapid transformations. Some countries, notably those with “net zero” aspirations, go far in reshaping all aspects of their supply and consumption.

However, the momentum behind clean energy is insufficient to offset the effects of an expanding global economy and growing population. The rise in emissions slows but does not peak before 2040.

Shale output from the United States is set to stay higher for longer than previously projected, reshaping global markets, trade flows and security. In the Stated Policies Scenario, annual U.S. production growth slows from the breakneck pace seen in recent years, but the United States still accounts for 85% of the increase in global oil production to 2030, and for 30% of the increase in gas. By 2025, total U.S. shale output (oil and gas) overtakes total oil and gas production from Russia.

“The shale revolution highlights that rapid change in the energy system is possible when an initial push to develop new technologies is complemented by strong market incentives and large-scale investment,” said Dr. Birol. “The effects have been striking, with U.S. shale now acting as a strong counterweight to efforts to manage oil markets.”

The higher U.S. output pushes down the share of OPEC members and Russia in total oil production, which drops to 47% in 2030, from 55% in the mid-2000s. But whichever pathway the energy system follows, the world is set to rely heavily on oil supply from the Middle East for years to come.

Alongside the immense task of putting emissions on a sustainable trajectory, energy security remains paramount for governments around the globe. Traditional risks have not gone away, and new hazards such as cybersecurity and extreme weather require constant vigilance. Meanwhile, the continued transformation of the electricity sector requires policy makers to move fast to keep pace with technological change and the rising need for the flexible operation of power systems.

“The world urgently needs to put a laser-like focus on bringing down global emissions. This calls for a grand coalition encompassing governments, investors, companies and everyone else who is committed to tackling climate change,” said Dr. Birol. “Our Sustainable Development Scenario is tailor-made to help guide the members of such a coalition in their efforts to address the massive climate challenge that faces us all.”

A sharp pick-up in energy efficiency improvements is the element that does the most to bring the world towards the Sustainable Development Scenario. Right now, efficiency improvements are slowing: the 1.2% rate in 2018 is around half the average seen since 2010 and remains far below the 3% rate that would be needed.

Electricity is one of the few energy sources that sees rising consumption over the next two decades in the Sustainable Development Scenario. Electricity’s share of final consumption overtakes that of oil, today’s leader, by 2040. Wind and solar PV provide almost all the increase in electricity generation.

Putting electricity systems on a sustainable path will require more than just adding more renewables. The world also needs to focus on the emissions that are “locked in” to existing systems. Over the past 20 years, Asia has accounted for 90% of all coal-fired capacity built worldwide, and these plants potentially have long operational lifetimes ahead of them. This year’s WEO considers three options to bring down emissions from the existing global coal fleet: to retrofit plants with carbon capture, utilisation and storage or biomass co-firing equipment; to repurpose them to focus on providing system adequacy and flexibility; or to retire them earlier.

Access the 2019 World Energy Outlook report.

About the IEA: The International Energy Agency, the global energy authority, was founded in 1974 to help its member countries co-ordinate a collective response to major oil supply disruptions. Its mission has evolved and rests today on three main pillars: working to ensure global energy security; expanding energy cooperation and dialogue around the world; and promoting an environmentally sustainable energy future.

International Energy Agency Press Office
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