2008

The Week in D. C.

by William Yeatman on October 27, 2008

The House and Senate are planning to come back for a lame duck session the week of November 16th. What House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.) decide to bring to the floor depends largely on how the elections turn out. There is a rumor that they may attempt quietly to insert a provision to overturn a recent federal court ruling on the Clean Air Act in order to make it easier to regulate carbon dioxide emissions. The U. S. Court of Appeals for the District of Columbia in July overturned the EPA’s Clean Air Interstate Rule.  One of the things the court ruled was not permissible under the Clean Air Act was the use of a cap-and-trade program to reduce air pollutants. 

On the same day the court ruling was made, the EPA released an Advance Notice of Proposed Rulemaking (or ANPR) for regulating carbon dioxide emissions under the Clean Air Act. One of the key elements of their plans is to use cap-and-trade.  But the court ruling prohibits the EPA from using cap-and-trade, unless of course the Congress changes the Clean Air Act. Hence talk of a little amendment slipped into one of the big omnibus bills that the Congress may pass during the lame duck session.

The public comment period for the ANPR ends on November 28th. People interested in commenting can find a wealth of information at several web sites.  The U. S. Chamber of Commerce has a comprehensive one. There is another at the Heritage Foundation.The EPA has a site with all the official documents and a page for filing comments. My colleague, Marlo Lewis, is one of the leading experts on the issue.  His recent testimony before the Senate Environment and Public Works Committee can be found here.  

It will be up to the next President to decide whether to use the Clean Air Act to regulate carbon dioxide emissions. As Marlo discussed in last week’s Digest, a key adviser for Senator Barack Obama’s (D-Ill.) campaign recently said that an Obama Administration would use the Act to require emissions reductions. Senator John McCain’s (R-Az.) campaign advisers said that McCain has not decided whether to do so.  Both candidates favor enactment of cap-and-trade legislation to reduce emissions by rationing use of coal, oil, and natural gas. 

Because the cost will be arriving in electric bills. The amount is noticeably absent from a report released by the Governor's Action Team on Energy and Climate Change formed by Charlie Crist. It details a series of policies required to reduce greenhouse-gas emissions but never mentions paying for it.

Europe would have to rethink its energy policy if Russia, Iran and Qatar go ahead with an OPEC-style cartel on natural gas, the European Commission warned Wednesday.

Russia, Iran and Qatar held talks in Tehran yesterday about forming a cartel for natural gas that would resemble the OPEC cartel for oil. But the structure of the natural gas business makes it unlikely that a gas OPEC would get off the ground anytime soon.

For all the support that the presidential candidates are expressing for renewable energy, alternative energies like wind and solar are facing big new challenges because of the credit freeze and the plunge in oil and natural gas prices.


European climate diplomacy shifted dramatically yesterday when EU member states for the first time demanded that developing nations join the fight against climate change.

For 15 years, European countries insisted that any international climate treaty abide by the doctrine of “common but differentiated responsibilities,” or the principle that developing countries should be exempt from economically painful emissions reductions, because developed nations are largely responsible for the historical buildup of greenhouse gases in the atmosphere.

The United States has refused to accept the doctrine of “common but differentiated responsibilities. In 1998, by a vote of 95 to 0, the Senate voted in favor of the Byrd-Hagel resolution, which resolved that the U.S. should not sign any international agreement to set mandatory limits on greenhouse gas emissions that did not also set emissions limits on developing countries. The Senate acted on the belief that it made no sense to harm the U.S. economy, and perhaps even drive domestic industry abroad to strategic competitors, given that the developing world’s future emissions would drive up atmospheric concentrations of greenhouse gases past the “threshold” that scientists say would cause irreversible climate change, even if developed countries somehow managed to reduce emissions 100%.

The Bush administration has conducted its climate diplomacy largely in accordance with the logic of the Byrd-Hagel resolution, much to the chagrin of European nations, who have maintained that developed nations need to set an example before the developing nations should proceed.

That is, until now. Yesterday, the EU Environmental Council (a body of environmental ministers from EU member states) released a statement that developing countries "would have to reduce their emissions by 15 to 30% below business as usual" by 2020 in order for the EU to sign up to a global emissions reductions regime in Copenhagen in December 2009.”

Oil prices fell below $70 a barrel Wednesday as investors shrugged off a looming OPEC production cut after company forecasts suggested the U.S. may be headed for a severe economic slowdown that would crimp demand for crude.

Europe’s Climate Revolt

by William Yeatman on October 21, 2008

in Blog

To prevent a financial crisis from turning into an economic calamity, the European Union has pulled the emergency brake on green policies. At last week’s EU summit in Brussels, seven eastern and central European countries, together with Italy, threatened to veto the Union’s climate pact. The rebel governments claimed that the originally agreed goal of cutting the EU’s CO2 emissions by 20% by 2020 was too expensive; economic turmoil and rising unemployment meant that implementing the CO2 goal was no longer affordable.

The European Union’s climate plan is on the brink of collapse after Italian and Polish heads of state used their veto power to win the right to weaken the EU’s global warming policy.

When European leaders met this week for the quarterly European Council meetings, the EU’s pledge to reduce its greenhouse gas emissions 20% below 1990 levels by 2020 was on the agenda. By using their veto threat, Italy and the six east European members deleted all reference to the EU Commission’s climate strategy from the Council statement, and they also won the right to modify the strategy to make it “cost effective.”

Poland opposes the climate plan because it is dependent on coal for 95% of its electricity. Two weeks ago, the EU Parliament endorsed a plan from the EU Commission to reduce greenhouse emissions with a tough cap-and-trade scheme that would price coal out of the energy market, due to its high carbon content. Without coal, Polish officials are worried that they would have to turn to Russian natural gas. For the Poles, however, energy dependence on Russia, their former master, is unacceptable.

Greece, Hungary, Slovakia, Romania and Bulgaria are also coal dependent countries in eastern Europe, and they share Poland’s fear of energy dependence on Russia. That’s why these states agreed to join together to oppose the EU’s climate plan at the European Council.

Instead of energy security, Italian Prime Minister Silvio Berlusconi cited international competition as the reason that Italy opposed the climate plan. "I have announced my intention to exercise my veto," he said. “We do not think that now is the time to be playing the role of Don Quixote, when the big producers of CO2, such as the United States or China, are totally against adherence to our targets.”

France and Germany, two of the EU’s most powerful members, continue to disagree over whether the financial crisis should influence the EU’s climate plan. Three weeks ago in Berlin, German foreign minister Frank-Walter Steinmeier told a conference that “the crisis changes priorities…One cannot rule out that interest in protecting the climate will change because of such a crisis.”

However, French President Nicolas Sarkozy this week told the press that “The deadline on climate change is so important that we cannot use the financial and economic crisis as a pretext for dropping it.”

In early September, I began noticing a string of news stories about scientists rejecting the orthodoxy on global warming. Actually, it was more like a string of guest columns and long letters to the editor since it is hard for skeptical scientists to get published in the cabal of climate journals now controlled by the Great Sanhedrin of the environmental movement.