Climate Change

A Global Push to Save the Planet

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Climate scientists have pretty much stopped arguing about whether humans are warming the planet. A United Nations panel confirmed that rapid industrialization has put the globe on a path to exceed the goal of limiting the temperature gain to 2 degrees Celsius (3.6 degrees Fahrenheit), and that the world is ill-prepared to face the impacts of climate change. Yet the only international treaty to control greenhouse gases has been rendered almost useless by a lack of targets for the biggest emitters. The latest findings add urgency to UN talks for a new global agreement. Poor countries argue that they need cheap fuel to power development and small island nations clamor that their existence is threatened by melting glaciers and rising seas.

The Situation

The push to limit fossil-fuel pollution in all nations took a small step forward in December as envoys from more than 190 countries agreed to key parts of an agreement at a meeting in Peru. The Kyoto Protocol, signed in 1997, governs just 15 percent of global greenhouse-gas emissions because the U.S. never ratified the deal and it didn’t include China and India, now the biggest and third-biggest polluters. While new commitments will likely not be legally binding in the same way as Kyoto, there’s now an embryonic framework in place for a pact to be signed at a summit in Paris in 2015 and implemented starting in 2020. The U.S. pledged new cuts in November and China agreed for the first time to set a goal for when its carbon emissions will peak. The U.S., European Union and Mexico led countries making formal submissions of emission-reduction plans to the UN, though China and India have yet to do so. Meanwhile, companies and homeowners are  installing solar panels, using more energy-efficient lighting and measuring and reducing their emissions. These proactive investments – plus rising consumer awareness and political pressure — provide momentum for a global deal. The U.S. decision to regulate power plant emissions marks a signal of intent to act, and activists are also watching whether the U.S. will approve the Keystone XL pipeline . China’s build-out of its planned coal-fired power stations and progress toward ambitious renewable energy goals will show how it aims to balance economic growth and the environment.

Source: World Resources Institute, Bloomberg New Energy Finance
Source: World Resources Institute, Bloomberg New Energy Finance

The Background

The UN talks have been fractious over the years, with walkouts, behind-closed-doors meetings of a favored few and all-night sessions culminating in bad-tempered plenary meetings. The last such push for a global deal in Copenhagen in 2009 ended without any new legally binding targets. Even without these goals, many governments have started to impose costs on polluters that reflect the broader harm to society, either by levying taxes on carbon emissions or by adopting cap-and-trade systems for carbon permits like the ones now used in various forms in Europe, California and China. Those efforts were set back by the global recession that crimped industrial output and the boom in shale gas that drove energy prices lower. Research from the UN and private business groups indicates that global warming is likely to take a growing toll on the economy, food production, fresh water supplies and human health.

The Argument

The arguments that crippled the Kyoto Protocol have hardly changed. There’s a vociferous army of global-warming skeptics who lobby politicians and blog on the topic. UN scientists in November published a summary of their biggest climate change assessment to date, warning of irreversible damage if the globe doesn’t stem emissions from burning fossil fuels. They weren’t helped by errors in their last big review of the science in 2007. Developing countries insist that their priority is to take people out of poverty as quickly as possible, and tapping cheap fossil energy is often the quickest way to do so. They say it’s up to the developed world to act first and help fund efforts in poorer nations. Industrialized countries are wary of losing jobs to lower-cost markets. Policy makers must decide how quickly to scale back fossil fuels and push into intermittent renewable technologies such as wind and solar. Those are often more expensive, though prices are falling. There’s also plenty of ambiguity over the form and enforceability of any new global pact, setting the stage for more disagreements as the deadline approaches.

The Reference Shelf

  • Graphics and data on climate change from Bloomberg New Energy Finance.
  • Website of United Nations Framework Convention on Climate Change, the UN body facilitating the treaty talks.
  • United Nations Intergovernmental Panel on Climate Change reports.
  • Website of the U.S. Global Change Research Program, which published the latest National Climate Assessment in May 2014.
  • Bloomberg Markets article on the efforts of Tom Steyer, a billionaire hedge fund manager, to make an economic case to address the risks of climate change.
  • Text of the Kyoto Protocol.
  • Website of the Extreme Ice Survey, which documents melting glaciers with time-lapse photography.
Source: UN IPCC; white blocks indicate insufficient data
Source: UN IPCC; white blocks indicate insufficient data

First Published Nov. 11, 2013

To contact the writer of this QuickTake:

Alex Morales in London at amorales2@bloomberg.net

To contact the editor responsible for this QuickTake:

Leah Harrison Singer at lharrison@bloomberg.net