Tag: Donald Trump

Bloomberg New Energy Finance’s outlook shows renewables will be cheaper almost everywhere in just a few years.

Solar power, once so costly it only made economic sense in spaceships, is becoming cheap enough that it will push coal and even natural-gas plants out of business faster than previously forecast.

That’s the conclusion of a Bloomberg New Energy Finance outlook for how fuel and electricity markets will evolve by 2040. The research group estimated solar already rivals the cost of new coal power plants in Germany and the U.S. and by 2021 will do so in quick-growing markets such as China and India.

The scenario suggests green energy is taking root more quickly than most experts anticipate. It would mean that global carbon dioxide pollution from fossil fuels may decline after 2026, a contrast with the International Energy Agency’s central forecast, which sees emissions rising steadily for decades to come.

“Costs of new energy technologies are falling in a way that it’s more a matter of when than if,” said Seb Henbest, a researcher at BNEF in London and lead author of the report.

The report also found that through 2040:

  • China and India represent the biggest markets for new power generation, drawing $4 trillion, or about 39 percent all investment in the industry.
  • The cost of offshore wind farms, until recently the most expensive mainstream renewable technology, will slide 71 percent, making turbines based at sea another competitive form of generation.
  • At least $239 billion will be invested in lithium-ion batteries, making energy storage devices a practical way to keep homes and power grids supplied efficiently and spreading the use of electric cars.
  • Natural gas will reap $804 billion, bringing 16 percent more generation capacity and making the fuel central to balancing a grid that’s increasingly dependent on power flowing from intermittent sources, like wind and solar.

BNEF’s conclusions about renewables and their impact on fossil fuels are most dramatic. Electricity from photovoltaic panels costs almost a quarter of what it did in 2009 and is likely to fall another 66 percent by 2040. Onshore wind, which has dropped 30 percent in price in the past eight years, will fall another 47 percent by the end of BNEF’s forecast horizon.

That means even in places like China and India, which are rapidly installing coal plants, solar will start providing cheaper electricity as soon as the early 2020s.

“These tipping points are all happening earlier and we just can’t deny that this technology is getting cheaper than we previously thought,” said Henbest.

Coal will be the biggest victim, with 369 gigawatts of projects standing to be cancelled, according to BNEF. That’s about the entire generation capacity of Germany and Brazil combined.

Capacity of coal will plunge even in the U.S., where President Donald Trump is seeking to stimulate fossil fuels. BNEF expects the nation’s coal-power capacity in 2040 will be about half of what it is now after older plants come offline and are replaced by cheaper and less-polluting sources such as gas and renewables.

In Europe, capacity will fall by 87 percent as environmental laws boost the cost of burning fossil fuels. BNEF expects the world’s hunger for coal to abate starting around 2026 as governments work to reduce emissions in step with promises under the Paris Agreement on climate change.

“Beyond the term of a president, Donald Trump can’t change the structure of the global energy sector single-handedly,” said Henbest.

All told, the growth of zero-emission energy technologies means the industry will tackle pollution faster than generally accepted. While that will slow the pace of global warming, another $5.3 trillion of investment would be needed to bring enough generation capacity to keep temperature increases by the end of the century to a manageable 2 degrees Celsius (3.6 degrees Fahrenheit), the report said.

The data suggest wind and solar are quickly becoming major sources of electricity, brushing aside perceptions that they’re too expensive to rival traditional fuels.

By 2040, wind and solar will make up almost half of the world’s installed generation capacity, up from just 12 percent now, and account for 34 percent of all the power generated, compared with 5 percent at the moment, BNEF concluded.

Supporters gather to listen to speakers after marching in support of science, Saturday, April 22, 2017, in Pullman, Wash. People around the globe have turned out in huge numbers to celebrate Earth Day and support scientific research and funding. Rallies in more than 600 cities put scientists alongside advocates of politics-free scientific pursuits.

 

Play from the local scientific community have given the nod to the recent science marches, staged globally for Earth Day 2017.

The April 22 marches, they say, have helped to draw attention to valuing research, particularly in the struggle to build resilience to climate change.

For Dr Orville Grey, who has responsibility for adaptation in the Climate Change Division of the Ministry of Economic Growth and Job Creation, they also demonstrate the shift in the modus operandi of scientists who now increasingly engage with policymakers and other stakeholders on their work.

“We have seen a time when scientists only spoke to scientists. There is now dialogue between scientists and policymakers, including politicians. We look at the scientific reports coming out and one of the things you recognise is that the volumes coming out now include a summary for policymakers,” said the man whose PhD is in environmental biology with a focus on climate change.

“There is a need to bridge the gap between the scientists and policymakers, including politicians, to ensure there is greater awareness and understanding and that the policies that are being presented are based on the best available science and as such that decisions are informed,” added the University of the West Indies and Northern Caribbean University part-time lecturer.

Professor Michael Taylor, head of the Mona Climate Studies Group Mona, said simply: “They were a good thing to bring attention to science and its importance in development.”

Meteorologist and long-time climate change negotiator for Jamaica Clifford Mahlung said the marches would perhaps have been especially instructive for the United States.

“The whole notion of climate change is based on scientific evidence. There were large turnouts in the US and I think that is where the message should be sent,” he told The Gleaner.

The Guardian, in an Earth Day-published report on the marches, reveals that they had seen the participation of “climate researchers, oceanographers, bird watchers and other supporters of science” from around the world whose intent was “to bolster scientists’ increasingly precarious status with politicians”.

SCIENCE CRITICAL

On that list of politicians is US President Donald Trump, whose Earth Day message nonetheless declared support for science.

“Rigorous science is critical to my Administration’s efforts to achieve the twin goals of economic growth and environmental protection,” he said in the statement published on the White House website.

“My Administration is committed to advancing scientific research that leads to a better understanding of our environment and of environmental risks. As we do so, we should remember that rigorous science depends not on ideology, but on a spirit of honest inquiry and robust debate,” he added.

The president’s statement comes in the wake of his executive order, signed in March, which rolls back a number of policies that had been put in place by former president Barack Obama to counter climate change. They reportedly include the Clean Power Plan and the repeal of guidance for factoring climate change into National Environmental Policy Act reviews.

Gleaner

 

HEAD OF the Intergovernmental Panel on Climate Change (IPCC) Hoesung Lee has urged attention and focus on the science and not politics in decision-making about climate change.

“One common question (at the Marrakech climate talks held recently in Morocco) was whether political developments in some countries could hinder the global community in providing a science-based response to climate change. My view, the scientists’ view, is that values and political beliefs may vary, but science is the common ground where these conflicting views can find a common understanding,” he said.

Lee was speaking in Jamaica recently where the IPCC the international body that assesses the science related to climate change held its most recent outreach event for the region and which formed a part of Climate Change Awareness Week celebrations on the island.

His comments come even as the world waits to see what the new United States (US) President and climate sceptic, Donald Trump, will do.

The US, up to now, has been one of the more significant contributors to the work of the IPCC, for example, and has done much to bolster global adaptation and mitigation efforts.

 

Urgent Action

According to Lee, the science has so far revealed the need for urgent action on climate change.

“Responding to climate change is not an either/or choice for a country, it’s part of its development strategy. You all know that,” he said, while referencing the IPCC’s Fifth Assessment Report (AR5).

The synthesis report of the AR5 points, among other things, to ongoing and exacerbated warming of the planet due to human actions.

“Emissions of carbon dioxide from fossil fuel combustion and industrial processes contributed about 78 per cent of the total GHG emissions increase from 1970 to 2010, with a similar percentage contribution for the increase during the period 2000 to 2010,” reads a section of the report.

“Globally, economic and population growth continued to be the most important drivers of increases in carbon dioxide emissions from fossil fuel combustion,” it added.

 

Population Growth

“The contribution of population growth between 2000 and 2010 remained roughly identical to the previous three decades while the contribution of economic growth has risen sharply,” the document said further.

In the wake of those findings, the IPCC and its team of scientists from across the globe, is to contribute more to the existing body of knowledge on the subject.

Among other things, they are to prepare a special report on the impacts of warming of 1.5 degrees Celsius and related emissions pathways.

“Earlier this year, we brought experts together to scope out that report, and we signed off the outline the table of contents and structure in October. We are now recruiting authors to write the report, which will be delivered in 2018,” Lee said.

All this, while seeking to make their work more accessible.

“We are looking at how to work with our new authors to encourage them to produce their summaries for policymakers in clear, accessible language for non-specialists, and with academies to help them develop educational materials based on our reports,” Lee said to an audience of not only NGOs and policymakers, but also students.

Gleaner

MARRAKECH, Morocco:

Jamaica is choosing, at least for now, not to worry over whether climate finance flows from the United States (US) will dry up under the presidency of Donald Trump.

This is despite news that the president-elect – a climate-change sceptic – may be looking to opt out of the historic Paris Agreement.

The US ratified the agreement on September 3 under President Barack Obama, who, after submitting the documents to the United Nations, is reported to have said: “Some day we may see this as the moment when we decided to save our planet.”

Fast-forward just two months and the victory of the Republican Trump over the Democrats’ Hillary Clinton to succeed Obama has triggered anxiety among participants here at the international climate talks.

Holness Not Worried

Jamaican Prime Minister Andrew Holness, who was in Marrakech last week, does not share in the worry.

“I think the public should be aware that the US is a party to this agreement; it is an international agreement. So, too, are other major powers in the world, including China and India, and that is significant,” he noted.

“The signing of the Paris Agreement is a significant movement in the world – towards making some definitive attempts to address the issue of climate change. I believe it is still early days yet for us to cast any conclusions. I am still confident and very optimistic that the movement which has started will not be turned back,” Holness added.

At the same time, the PM hinted at the intention to do whatever possible to ensure the success of the agreement.

“There is always room for negotiations, for change, for improvement, and for Jamaica, it is in our interest to ensure that this movement continues because we are susceptible [to climate threats]. We are seeing the effects of increased tropical storms, of sea-level rise, of droughts, unpredictable weather events, which are impacting on our infrastructure – damage to our roads, our gullies, our drains,” said the PM, who was attending the COP for the first time.

“[There is also] the emergence in recent times of various health threats which are transmitted because of changes in the weather which allow the breeding of various vectors, particularly mosquitoes. So we have a vested interest in ensuring there is a global movement that will protect our environment,” Holness added.

Jamaica is not alone in choosing not to worry over the future of US climate financing.

“We work with the US government and the US institutions, US researchers, and we look forward to continuing the work with the new administration,” Jonathan Lyn, head of communications and media relations at the Intergovernmental Panel on Climate Change (IPCC), told The Gleaner.

The IPCC is the international body for assessing climate science. Set up in 1988 by the World Meteorological Organisation and the United Nations Environment Programme, it provides policymakers with regular assessments of the scientific basis of climate change, its impacts and future risks, and options for adaptation and mitigation.

Wait And See

“There is a new administration. We are waiting to see what the policies will be. The US has been a very active participant in the IPCC, and not just in terms of financial contributions but contributing experts,” said Lyn, who will be in Jamaica later this month for an IPCC-led regional workshop.

“We have seen how the world is using our scientific findings to work together on tackling climate change, and there has been real momentum on that in the last few months. We expect that global effort to continue and we expect to continue to contribute to that with good, robust science,” he added.

The US has contributed some US$2 million annually to the work of the IPCC over the last five years. Since the international climate talks in Copenhagen in 2009, it has “ramped up its climate finance for developing countries fourfold”, according to the Overview of the Global Climate Change Initiative: US Climate Finance 2010-2015report available on the State Department’s website.

“Between 2010 and 2015, the United States allocated $15.6 billion in climate finance across adaptation, clean energy, and sustainable landscapes activities. Additionally, in 2014 the United States pledged $3 billion to the Green Climate Fund, the largest pledge by any country,” it added.

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China couldn’t have invented global warming as a hoax to harm U.S. competitiveness because it was Donald Trump’s Republican predecessors who started climate negotiations in the 1980s, China’s Vice Foreign Minister Liu Zhenmin said.

U.S. Presidents Ronald Reagan and George H.W. Bush supported the Intergovernmental Panel on Climate Change in initiating global warming talks even before China knew that negotiations to cut pollution were starting, Liu told reporters at United Nations talks on Wednesday in Marrakech, Morocco.

Ministers and government officials from almost 200 countries gathered in Marrakech this week are awaiting a decision by President-elect Trump on whether he’ll pull the U.S. out of the Paris Agreement to tackle climate change. The tycoon tweeted in 2012that the concept of global warming “was created by and for the Chinese in order to make U.S. manufacturing non-competitive.” China’s envoy rejected that view.

“If you look at the history of climate change negotiations, actually it was initiated by the IPCC with the support of the Republicans during the Reagan and senior Bush administration during the late 1980s,” Liu told reporters during an hour-long briefing.

Reagan’s Legacy

While Reagan died in 2004, George Schulz, who served as his secretary of state, has become one of the most prominent Republicans voicing concern about climate change and urging action.

“The potential results are catastrophic,” said Schulz, 95, in an interview with Bloomberg in 2014. “So let’s take out an insurance policy.”

Increased U.S. efforts to curb emissions through investing in new cleaner technologies and manufacturing could actually boost U.S. competitiveness, Liu countered. “That’s why I hope the Republican’s administration will continue to support this process.”

A fortnight of discussions in Marrakech were thrust into the spotlight last week by Trump’s victory. The negotiating texts being drafted by delegates and officials in north African country were suddenly overshadowed by a uncertain political future cast by Trump’s shadow over the two-decade-old process.

Outgoing U.S. Secretary of State John Kerry, who helped secure the Paris Agreement last year, said the majority of U.S. citizens back action on climate change and tried to assuage concern.

“No one has a right to make decisions for billions of people based solely on ideology,” he said. “Climate change shouldn’t be a partisan issue. It isn’t a partisan issue for our military. It isn’t a partisan issue for our intelligence community.”

China’s President Xi Jinping underlined the importance of cooperation between the two largest economies when he spoke to Trump on Monday, said Liu, who added China will continue its fight against climate change “whatever the circumstances.”

He added that richer nations should take more responsibility than poor countries for financing the fight against climate change, in line with the UN’s Framework Convention on Climate Change. “Of course we’re still expecting developed countries including the United States will continue to take the lead on mitigating climate change,” he said.

Bloomberg

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The earth has warmed barely a single degree Celsius, and yet virtually no place on the planet is unaffected by climate change. That’s the conclusion of both a new study published in the journal Science and a popular-science book out this week, The Unnatural World, by David Biello, the science curator at TED and a Scientific Americancontributing editor.

“This new age is not just climate change,” Biello writes, “it is everything change: the sky, the sea, the land, the rocks, life itself.”

The Science article reviews dozens of field studies and assembles them into a mosaic of ubiquitous change, from the genes of organisms to entire regions. More than 80 percent of the 94 biological and ecological systems surveyed show signs of the changing climate. Led by Brett Scheffers of the University of Florida, a team of 17 scientists trawled academic journals and enumerated observed changes across terrestrial, marine, and freshwater environments. The study’s seven pages are a dense catalog of pervasive, dynamic weirdness that paint a picture of changing ecosystems.

No particular item should strike fear in the hearts of readers but, taken together, the data portray a living world that’s trying to cope. Some highlights: Pink salmon are migrating about two weeks earlier in the summer than they did 40 years ago, spawning in ever-warmer waters and causing the fish’s genome to change. Southern flying squirrels, native to the eastern U.S., are becoming northern flying squirrels, now native to the Pacific Northwest, Canada, and Alaska. Colors—which help determine an animal’s sensitivity to light and consequently its ability to thrive in unfamiliar conditions—are shifting in butterflies, dragonflies, and birds. Some places have new diseases, and old diseases have arrived in new places.

The changes, large and small, illuminate the overarching global and regional changes that scientists have warned about, and now documented, for decades. The chemical and physical stability of many ecosystems, and therefore biodiversity, are under assault. The consequences for human society are both foreseen and unforeseen. “Losing genetic resources in nature may undermine future development of novel crop varieties and compromise key strategies that humans use to adapt to climate change,” the Science authors write.

They also suggest where to start: “It is now up to national governments to make good on the promises they made in Paris” to cut emissions and keep ecosystems safe. President-elect Donald Trump has vowed to leave the historic climate accord, backed by almost 200 countries.

Change is so pervasive that geologists, keepers of the earth’s chronology, are considering the dramatic gesture of creating a new epoch, called the Anthropocene, to mark humanity’s influence.

The Anthropocene is the frame through which Biello peers in The Unnatural World. Read together, the book and the Science article demonstrate the astounding scale of human influence on the natural systems that sustain our planet.

“One of the longest-lived impacts of this new people’s epoch, longer lasting even than all the CO₂ piling up in the atmosphere,” Biello said about the Science paper, “will be our impact on evolution. The question now is: Will the Anthropocene be a blip in the rock record, like an asteroid impact, or can people learn to ameliorate our impacts and lengthen the span of this new epoch?”

Bloomberg

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On Nov. 4, Walmart announced an aggressive plan to increase its investments in renewable energy, pledging to power half its operations from wind, solar, and other renewables by 2025 and to cut the carbon footprint of its operations by 18 percent over the same period. Ten days later, Microsoft made its largest wind-power purchase agreement ever, with a deal to buy 237 megawatts of electricity from turbines in Kansas and Wyoming to run data centers in Cheyenne.

In between those announcements, Donald Trump was elected president, in part by calling climate change a hoax and vowing to gut most of Obama’s clean-energy policies and revive coal mining. If the actions of Walmart and Microsoft are any indication, a Trump administration will do little to dissuade companies from continuing to invest in renewables. “I think fears of a negative impact of Trump on renewable energy are really overblown,” says Thomas Emmons, a partner at Pegasus Capital Advisors, a private asset management firm focused on sustainable and alternative investments.

One reason is timing. The biggest economic incentives for clean energy are federal tax credits for solar and wind projects. Both were set to expire at the end of last year, prompting a surge in investments as companies raced to get in under the deadline. In December, Congress unexpectedly extended both credits (for solar until 2021 and for wind until 2019) as part of a deal to lift the 40-year-old ban on U.S. oil exports. It’s not clear that Trump will try to persuade Congress to repeal the extensions. Wind power is especially popular across the Midwest, a Republican stronghold; in many cases it’s become cheaper than other sources of grid power.

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Sixty percent of Fortune 100 companies have renewable-electricity or climate change policies, and 81 companies globally have committed to get 100 percent of their energy from renewable sources, according to Bloomberg New Energy Finance. Companies tend to invest in renewable energy in one of three ways: sourcing clean power from wind and solar projects through long-term agreements; purchasing a stake in green power projects; or using renewable-energy credits to offset the dirtier power they consume.

Since 2008, U.S. companies have signed agreements to purchase more than $10 billion worth of wind and solar power— about 10Gw, enough to run almost 2 million U.S. households for a year. BNEF expects that pace to increase over the next decade, with at least 50 U.S. companies signing long-term agreements to buy an additional 22Gw of clean energy. “A Trump presidency does not lower our expectations for the growth of the corporate renewable-energy market,” says Nathan Serota, a clean-energy analyst at BNEF. “If anything, a less ambitious stance on renewables at the federal level could encourage corporations to pick up the slack even further.” With the government providing less support, more businesses may decide the best way to ensure clean-power projects get built is to sign long-term purchase agreements. That way, renewable developers have a guaranteed customer, ensuring they can finance new projects.

These agreements are emerging as the preferred way to invest in clean energy. Locking in electricity prices for up to 15 years, the deals let companies hedge exposure to volatile natural gas and coal prices, which have historically determined wholesale power prices in the U.S. As wind and solar get cheaper, companies are able to lock in renewable power for less than the average wholesale power price, says Swami Venkataraman, senior vice president at Moody’s Investors Service.

“Companies are investing in sustainability, not because they’re making a political statement, but because they have a fiduciary duty to protect shareholders and make money,” says Mindy Lubber, president of Ceres, a nonprofit sustainability advocate. Even if Trump rolls back Obama’s commitment to the Paris climate accord and his signature clean-energy initiative, the Clean Power Plan (CPP), which directs states to lower carbon emissions from power plants, it’s unlikely to influence investment decisions. “Renewable developers weren’t building a business model premised on the CPP,” Serota says.

On Nov. 16, 300 U.S. businesses, including General Mills, EBay, and Intel, called on Trump to support the Paris accord. “The sustainable investing trend has global momentum and big players such as Goldman Sachs and Bill Gates,” said Amy Myers Jaffe, executive director for energy and sustainability at the University of California at Davis, in an e-mail. “Corporate America has lots of millennial customers, and they want to buy from companies with sustainable supply chains and a commitment to renewable energy. I don’t see that changing.”

Bloomberg

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What will Donald Trump actually do?

It’s a question many Americans are asking themselves now that the U.S. has wrapped up one of its least policy-specific elections ever. The president-elect has offered only the loosest of legislative prescriptions, including whatever plans he may have for the energy industry.

The mystery hangs over turbine manufacturers like Vestas Wind Systems, which fell 12 percent since the election, and coal companies such as Peabody Energy Corp., which soared 73 percent. In his only major energy speech, Trump, 70, said he would rescind “job-destroying” environmental regulations within 100 days of taking office and revive U.S. coal. It’s terrible news for efforts to slow the pace of climate change, but the impact on the renewable energy revolution may be limited. Here’s what it could mean for America’s clean-energy darling, Tesla Motors Inc.:

1. Solar and wind subsidies are probably safe

Tesla is, first and foremost, an electric car company. But on Nov. 17 shareholders will vote on final approval of CEO Elon Musk’s $2.2 billion deal to buy SolarCity Corp. The acquisition would make Tesla the biggest U.S. rooftop solar installer and the first major manufacturer to integrate solar panels with battery backup to extend power into the night.

The swift spread of rooftop solar in the U.S. has been made possible by two government policies. First, most utilities are required to credit homeowners for the excess power they send back to the grid. Those requirements are state-level and shouldn’t be affected by Trump. Second is the 30 percent federal tax credit to offset the cost of installations. The credits were first signed into law under Republican President George W. Bush in 2005 and extended by a Republican Congress late last year. Given their broad support, the subsidies are unlikely to be repealed.

2. Even without incentives, renewables will get cheaper

Solar panel prices have dropped, on average, more than 15 percent a year since 2013. On a utility scale, solar power is already cheaper than coal-fired grid electricity across most of the U.S., after subsidies. Even if the incentives were suddenly removed next year—an improbable and economically destructive scenario—the industry would eventually recover as prices continue to fall.

Incentives are designed to make superior new technologies initially affordable, but once those technologies take off, economies of scale take over.

Source: Bloomberg New Energy Finance

A loss of the federal tax credit could slow the rollout of Tesla’s unusual new rooftop solar shingles. Traditional rooftop panels, however, are almost ready to stand on their own. The payback period currently ranges from about 5 to 10 years, after subsidies and state rebates. If Tesla can achieve the cost savings it hopes for with the merger, it won’t be long before that’s the payback timeline without subsidies.

3. Gasoline fuel-efficiency targets could be dismantled

One of President Barack Obama’s most significant climate achievements was to push through ambitious fuel-economy regulations for U.S. vehicles. The Environmental Protection Agency is scheduled next year to re-asses rules intended to double the average efficiency of cars and trucks to almost 55 miles per gallon by 2025. Those goals could be delayed or dismantled under Trump, accelerating America’s shift to trucks and SUVs. Stocks of Detroit carmakers have predictably surged, while Tesla shares fell 4.9 percent in the two days after the election.

This is obviously bad news for human health and the environment, but it’s impact on Tesla won’t be catastrophic. The price of batteries is dropping rapidly, and by the early 2020s electric cars should be cheaper and better performing than their gasoline-powered equivalents across the board. Lowering efficiency standards will make gasoline cars a bit cheaper to manufacture, but it will also make them more costly to drive over the life of the vehicle.

4. Electric vehicle incentives will expire on their own

The U.S. push for electric cars was set in motion by a $7,500 federal tax break. The Trump administration could eliminate the subsidy, but the impact would be short-lived for electric pioneers including Nissan Motor Co., General Motors Co., and Tesla. That’s because the electric-vehicle subsidies were already designed to phase out after each automaker reaches its 200,000th domestic EV sale. Tesla may be first to cross that finish line, probably in the first half of 2018.

The incentives were intended to overcome steep startup costs and slow initial demand for new electric vehicles. Removing the tax break now would effectively pull the ladder up behind Tesla and make it more expensive for other automakers to transition to battery power, a result that wouldn’t be in anyone’s best interest.

5. States wield the power of their own incentives

Some of the biggest incentives in renewable energy are offered by states, not the federal government. Each state has authority over its own solar and wind rebates, credits for power sold back to the grid, renewable-mix requirements for utilities, and electric-car subsidies. These policies cross ideological borders into deeply Republican states. For example, Louisiana residents can get an additional tax credit of almost $10,000 for buying a long-range electric car. In Colorado, it’s an extra $5,000.

Under Trump, the role of cities and states in regulating pollution and expanding clean energy will increase. So will the disparity between states that prioritize the issue and those that don’t. But again, don’t expect the energy revolution to follow rigid red-state, blue-state definitions. The states producing the most wind power in the U.S. include Texas, Kansas, and Oklahoma. For solar, Arizona, North Carolina, and Nevada are among the top ten. Of those, Hillary Clinton won only Nevada.

6. Keystone’s resurrection won’t make gasoline cheaper

This election was great news for oil companies. Reviving the Keystone XL pipeline, which was rejected under Obama, is on Trump’s list of priorities for his first 100 days. He is also likely to support the beleaguered Dakota Access Pipeline. The company building it, Energy Transfer Partners LP, says business is “only going to get better” under Trump.

These pipelines are hugely symbolic for climate activists who say we can’t keep building infrastructure for oil we can’t afford to burn. But the impact of the pipelines themselves is open to debate. They increase profitability for oil companies, but as oil trades on a global market, the impact on U.S. gasoline prices and by extension demand for electric cars is negligible.

7. Trade barriers with Mexico would hurt Tesla’s rivals

Trump wants to scrap or renegotiate the North American Free Trade Agreement (NAFTA). That could be a dicey proposition for the car industry. Since 2010, nine automakers, including Ford Motor Co., GM and Fiat Chrysler have announced more than $24 billion in Mexican investments. They rely on Mexican plants to produce millions of vehicles and a high volume of parts.

By contrast, Tesla’s manufacturing and assembly are done almost entirely in California and Nevada. Tesla also plans to begin solar-panel production next year at SolarCity’s massive plant in Buffalo, N.Y. Tariffs on solar panels made outside the U.S. would make Tesla’s American-made products more competitive.

In the end, the confluence of all of these forces, but especially the precipitous decline of coal and increasing affordability of renewable sources of energy, is probably too strong to be reversed by the incoming Republican administration. That’s good news for Tesla, and a lot of other companies working to clean up the energy supply.

Bloomberg

Crude oil and water pour from a well head at an oil field near Baku, Azerbaijan, on Wednesday, Feb. 4, 2009.  Since gaining its independence with the 1991 collapse of the Soviet Union, Azerbaijan has become an important energy exporter and transport hub for Caspian Sea oil and gas. Photographer: Jeyhun Abdulla/Bloomberg News

Last week, I wrote that OPEC needs friends and a miracle to re-balance the oil market. Could President Trump be that unwitting buddy, providing the miracle by tearing up the nuclear agreement with Iran and removing almost a million barrels a day of supply at a stroke?

Trump’s number one priority is to dismantle the “disastrous” deal — although his to-do list might have changed since saying that back in March. As luck would have it, that daily million barrels is about the same size as the cut OPEC needs to make, as I calculated last week.

OPEC’s Deepening Cuts
The cuts OPEC needs to make to reach its output target are just getting bigger and bigger
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NOTE: Assumes no further increases from Libya, Nigeria, Iran or Iraq. Cuts based on OPEC secondary source production estimates

Can he do it? Yes, despite assertions to the contrary from Iran’s President Rouhani and a slew of analysts. Here’s how:

The Joint Comprehensive Plan of Action, as the deal is snappily titled, wasn’t ratified by Congress, but brought into force by President Obama via executive order. Trump could rescind that. The fall-out would be messy, but it could be done (in theory).

There’s another way too, enshrined within the agreement itself. The dispute resolution mechanism allows any signatory to refer a perceived breach of the deal’s terms to the joint commission created to oversee the accord. If the complaining party isn’t satisfied with the outcome and believes the breach constitutes “significant non-compliance”, it can refer it to the U.N. Security Council. The Security Council would then vote — and here’s the killer blow — – not on whether to re-impose sanctions, but on whether to “continue the sanctions lifting.”

That might not sound like a big difference, but it’s critical. By framing the vote this way, the U.S. could, in theory, veto the resolution. All the U.N. sanctions on Iran would then be re-imposed. Simples.

That just leaves EU sanctions, which prohibited — among other things — the importing of Iranian oil into EU countries. We might expect some sort of European backlash against unwinding the deal, but it might not be very effective.

The tortuous process of re-establishing Iran’s oil trade with Europe shows that only too clearly. Although there were willing buyers and a very willing seller, the difficulty came in finding insurers who would underwrite the transactions, or shippers to carry the crude. All the big re-insurers had at least some U.S. involvement and they were extremely hesitant to pick up the business — even with the apparent backing of the Obama administration. They would drop the business like a scalding hot potato if the new president killed the deal. End of Iranian oil flows to Europe.

Iran’s Oil Export Surge
Iran’s crude oil exports have risen by more than 1 million barrels a day since sanctions were eased
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Source: Bloomberg tanker tracking
NOTE: Other includes Japan, South Korea, Turkey, Taiwan and Syria

Elsewhere, important Asian buyers were threatened in the past with the loss of access to the U.S. banking system to persuade them to cut their purchases of Iranian. This tactic would probably work again.

Of course, Iran would treat the move as grounds to abandon its own commitments. Coming shortly before Iran’s presidential election in May, it would be a huge boost to Tehran’s hardliners. You’d expect life to become more difficult for the Americans in Iraq, where it’s engaged alongside Iranian-backed militias in ousting Islamic State from its last stronghold in the country — another Trump priority.

But at least the crude price would recover, which would be great for U.S. oil, if not so good for motorists. I guess the new president will have to choose who to please.

Bloomberg

A man walks along a construction site on Constant Spring Road, St Andrew on Friday, October 7. The roadway in the vicinity of the Marketplace commercial complex is being repaired following its collapse from rains associated with Hurricane Matthew.

After a period of uncertainty, it has been confirmed that the Paris Agreement on Climate Change will enter into force on November 4.

This is good news for the Caribbean, one of the parts of the world most at risk from sea level change and severe climatic events.

By global treaty standards, formal agreement has been achieved remarkably quickly, especially as the solutions that the treaty proposes remain politically controversial in many of the nations that agreed last December to the final text.

Normally, ratification takes years to achieve. However, faced with evidence that the planet continues to warm and the possibility that Donald Trump could become the next US president and may pick apart the hard-won agreement, the world’s largest carbon emitters – China, the United States, Brazil, the European Union, and India, but not so far Japan or Russia – have agreed to ratify, thereby reaching the agreed target of 56.87 per cent of all global emissions, for the treaty to come into force.

In many respects, this is a victory for the Caribbean, for CARICOM in particular, and the African, Caribbean and Pacific Group of States (ACP) and other small-island developing states, which in Paris last December made clear that a positive outcome was existential.

In outline, the 31-page agreement proposes that a balance between greenhouse gas emissions and the sinks for ameliorating them is achieved in the second half of this century.

It emphasises the need to hold the increase in the global average temperature well below 2 degrees Celsius (36 degrees Fahrenheit) above pre-industrial levels; proposes “pursuing efforts to limit the temperature increase to 1.5 degrees Celsius (35 degrees Fahrenheit)”; and recommends that a peak in global greenhouse gas emissions be achieved as soon as possible. It allows for an asymmetrical approach, enabling all developing countries – including large industrialising carbon emitters like China, India and Brazil – to have more time to adapt.

In a section that addresses loss and damage, the agreement establishes funding at the minimum annual rate of US$100 billion up to 2030 to enable support for mitigation and adaptation in developing nations. However, it does not set a timescale for reaching greenhouse gas emission neutrality.

Unlike the earlier Kyoto Protocol of 2005, which required major carbon emitters to agree to binding emissions reductions, but failed when the US decided not to ratify because of exclusion of nations like China, the Paris agreement requires all countries to devise their own climate action plans and then improve on them at regular intervals.

What comes next is likely to be difficult, requiring all of the diplomatic and political skills that the Caribbean and other small-island developing states have.

ACCESS TO RESOURCES

While Hurricane Matthew and the damage that it wreaked in Haiti, The Bahamas, and Cuba was a salutary global reminder of the risk that low-lying states with limited resources face, CARICOM, as its Secretary General, Irwin LaRocque, noted earlier this year, now faces the challenge of being able to access the resources the agreement promises.

An important recent development in this respect has been the establishment by the Commonwealth Secretariat, with Australian finance, of a new facility intended to assist governments obtain available funding.

The idea is that a Commonwealth Climate Finance Access Hub will locate national climate-finance advisers in countries for two-year periods to help access climate change support. Among the first countries likely to receive such support are Antigua, Barbados, Dominica, Guyana, Jamaica, and St Kitts, as well as other small island states in the Indian Ocean and the Pacific.

Other funding options are also being considered. Recently, Jamaica’s Prime Minister Andrew Holness indicated that Jamaica is to work with its international development partners to pursue debt for climate-change swaps. Such an approach, he says, has the potential to provide fiscal relief while helping to unlock climate financing to fund adaptation and mitigation initiatives.

What is clear is that when it comes to funding, the treaty agreement as is so far little more than an aspirational framework.

For this reason, at the forthcoming climate change conference in Marrakesh in November, CARICOM will need – together with its Alliance of Small-Island States – the global grouping which brings together small island and low-lying coastal countries that share similar development concerns – to hold the world to account for what has been agreed.

This will not just be a test of the Caribbean’s staying power and the willingness of regional governments to fund and support a continuing focus. It will also require the Caribbean to remind the countries that it supported during the negotiations, and which expressed concern about the implications of climate change for the region, of their commitments.

Put more bluntly, it is now the time for China and Brazil, as much as the US and Europe, to ensure that the support for adaptation that the region needs, now materialises.

In this, both CARICOM and the CARICOM Climate Change Centre will continue to have a critical role in coordinating the regional effort. But it will also be up to individual governments to maintain the political momentum, demonstrate a unity of purpose, and be determined to address the Caribbean’s implementation deficit.

CLOSE TO THE SEA

Climate change is an issue on which the Caribbean has had every reason to have its voice heard and be taken very seriously. Fifty per cent of its population and the majority of the region’s productive enterprise and infrastructure lie within 1.2 miles of the sea. Its low-lying nature, its fragile ecosystems, and extreme weather events demonstrate that it is a prime candidate to benefit from what has been agreed.

While countries in the region are often accused of allowing mendacity to drive their foreign policy, here is an example where the Caribbean deserves a transfer of resources if it quite literally is not to disappear beneath the sea.

Climate change also has a strategic importance. It enables the Caribbean to demonstrate an approach that owes more to the future than to the past; it is an issue on which it has a better chance to exert leverage; and one that can deliver national and regional development objectives. It is an issue on which the region occupies the moral high ground and has popular international support.

Gleaner