Using Blockchain to Avoid Double Counting While Empowering Everyone to be Part of the Solution

Today’s side event at COP24 for Blockchain Technology for Enhanced Climate Action emphasized the importance of distributed ledger technology (DLT) to accelerate mitigation solutions for climate change and empower non-country parties to work together. The event featured the Climate Chain Coalition Screen Shot 2018-12-11 at 1.12.56 AMfounded just one year ago but already bringing together 140 organizations with a mission to mobilize climate finance and enhance monitoring, reporting and verification of climate goals.

Blockchain technology is a form of Distributed Ledger Technology (DLT). (For a good explanation of this technology see this World Bank Group 2017 report.)Screen Shot 2018-12-11 at 1.22.55 AM It functions as a decentralized database that can securely store data and digital assets, like environmental credits or certificates. Transparency is increased because the data recorded on the blockchain is a permanent ledger that cannot be modified. Trust between parties is increased because the data is not stored in a centralized location but rather through peer-to-peer transactions. Transaction costs are reduced enabling much smaller transactions that are accessible to more individuals.

A new report issued this week by the Climate Ledger Initiative (a collaboration of several think tanks aiming to accelerate climate action) Navigating Blockchain and Climate Action identified three main areas where blockchain has the most potential to accelerate climate action: 1) next generation registries and tracking systems; 2) digitizing measuring, reporting and verification; and 3) creating decentralized access to clean energy and finance.

The UNFCC has identified blockchain technology as a disruptive technology that has the potential to solve the solution to the main challenge of “how do you attribute the climate contribution while avoiding double counting.” Under the Paris Agreement (PA), a country steps up by submitting their commitment to mitigation measures as their Nationally Determined Contributions (NDCs). Theoretically, the development and continued revision of these NDCs will govern the Parties and their climate commitments under the Paris Agreement. But the Paris Agreement also encourages developed countries to finance projects in developing countries. Screen Shot 2018-12-10 at 5.41.57 PMWho gets the credit toward the NDC – the country financing the project or the country implementing the project? How do we ensure that one country (or entity) doesn’t take credit at one stage of a project and another take credit at a different stage? The security and transparency of blockchain may be the solution. (However, keep a healthy dose of skepticism, said CEO of Goldstandard, Marion Verles, because many times technology solutions are being proposed that don’t actually solve the real world problem.)

Climate change is the seminal issue of our generation and requires all hands on deck. As Massamba Thioye of the UNFCCC said today, “We need to mobilize ALL stakeholders, suppliers, financiers, consumers, citizens, policy makers so that they make the right investment.” The challenge being faced is how do we all work on the solution and create market incentives. Ms. Verles identified the importance of DLT technology in the supply chain to help corporations get the critical data they need to make decisions on the impact that a good has on the planet (carbon impact, water impact, etc).

See GLOCHA - the Global Citizen Empowerment System

See GLOCHA – the Global Citizen Empowerment System for Full Poster

This information can move to the end consumer. If you knew, and could compare, the carbon impact of items you were purchasing, would you pay a little more to make a cleaner purchase? The bottom line is that blockchain has the potential to add a value stream to products that represents the intentional choices of individuals, companies, and countries to work toward a cleaner, safer planet.

(Note bitcoin uses blockchain technology in a very energy intensive manner that is not healthy for our planet – see fellow VLS student Ben Canellys blog here.)

 


RE100 Businesses Pave the Way for Transitioning to Renewable Energy

images Ambition, pace, scale—these are the themes in shifting to an economy recognizing climate change. Companies pioneering this economic shift incorporated climate change as an significant factor in conducting business.

One of the leading organizations spearheading this movement is RE100. RE100 is a collaborative movement uniting over 150 well recognized companies across the world to commit to using 100% renewable energy. What is even more impressive is that these companies have acted on their own in addressing climate change, ahead of government direction. Remarkably, these corporations were able to shift to 100% renewable electricity, which garnered a competitive advantage enabling them to financially outpace their competitors.

A study by RE100 and Capgemini compared RE100 companies to non-RE100 companies by sector. It concluded that RE100 companies earn an average profit of 7.7% more than their competitors. Admittedly, the report’s analysis in no way suggests that switching to 100% renewable electricity is the sole cause of the profit difference. However, it is compelling that all RE100 companies have consistently outperformed the competition in their respective industries. Thus, it would suggest a strong correlation between switching to renewable electricity and above-average financial performance.

The switch to renewable electricity is done using multiple mechanisms simultaneously. Companies utilize a combination of energy power purchase agreements (PPA) and self-generated renewable electricity technology. Moreover, RE100 companies have developed new management structures, such as silo model, centralized model, and global model, to coordinate renewable electricity sourcing and efficient use infrastructure. The benefits of transitioning are significant.

For example, General Motors harnessed renewable energy sources from landfill gas, solar arrays, and wind farms. This combination has lowered operation costs by $80 million. The cost savings result largely from improved, cost-effective renewable technologies and government incentives. Landfill gas allows companies to lock into long-term prices that are cheaper and more stable than fluctuating natural gas prices. GM strategically built their own solar arrays and benefited from government feed-in-tariff programs. Finally, GM built wind projects in Mexico and Texas that generate over 34 MW, enough to power five manufacturing facilities.

Anheuser-Busch, another RE100 company, has procured PPAs for onshore wind projects to offset its dependence on traditional energy sources. Anheuser-Busch is in line to become the largest purchaser of renewable electricity and one of the forerunners in advertising renewable energy. The beer manufacturer uses its brand influence in its renewable electricity symbol campaign, where every pack of Budweiser will carry the symbol to celebrate its commitment to brew with 100% renewable energy.

The trend toward renewable energy is now gaining traction, and signals a tipping point to mass renewable. Since RE100’s inception, companies partnered through renewable energy purchase agreements have created 100% renewable energy demand of more than 184.6 TWh—enough energy to power Poland. Moreover, RE100 company surveys yielded that renewable energy costs have reduced significantly where it has been cost competitive against fossil fuels. Therefore the RE100 momentum would suggest that this trend is welcomed with open arms and significantly contributing to how other companies shape their tactics to address climate change.


Continuing to Decouple

Photograph by Carlos Barria - REUTERS

Photograph by Carlos Barria – REUTERS

For the third year in a row, the International Energy Agency (IEA) reported that carbon dioxide (CO2) emissions from the energy sector remained level while the global economy grew. This continues to buck the economic thinking that economic growth, typically measured with gross domestic product (GDP), cannot be decoupled from environmental degradation. The current trend of decoupling GDP from CO2 emissions is largely due to the global growth of renewable energy use. Solar energy was the fastest growing source of renewables in 2016, while hydropower supplied the largest portion of global electricity demand growth of all the renewables. 

A recent report from PBL Netherlands Environmental Assessment Agency released September 28, 2017 found that of the five largest emitters, which account for 68% of global CO2 emissions, only India showed a significant rising trend of greenhouse gas emissions. China, the U.S., the E.U., Russia, and Japan all had flat or decreased greenhouse gas emissions in 2016. However, in a departure from the IEA report from March 2017, this report found that global emissions of non-CO2 greenhouse gas emissions rose in 2016. Of these non-CO2 greenhouse gasses, methane emissions represented the largest portion—19% of global emissions. The primary sources of methane include fossil fuel production, cattle, and rice—a staple crop in the developing world.

Photograph: AFP/Getty Images

Photograph: AFP/Getty Images

Meanwhile, another recent study released in September 2017 in Science revealed that a thinning of tropical forest density has led to a net carbon loss across every continent. This indicates that forests are no longer behaving as sinks because they have been degraded through logging, fire, and drought, among other factors. Forests provide a vast natural resource for developing countries yet increasing the sink capabilities of forests through afforestation, reforestation, and decreased forest degradation are among mitigation goals of these countries. This study highlights both the importance and the challenge of those goals. The international target of limiting warming to no more than 2˚C is unattainable without vast carbon sinks like these forests.

The decoupling of emissions from economic growth globally is cause for celebration. However, as seen with India, this trend is still tentative as developing countries work to increase economic growth, which could include increased agricultural production, forests use, and energy use. To continue decreasing global emissions, more work is required to assist the developing world with sustainable development. Increased methane emissions from the agricultural sector and increased CO2 emissions from loss of forest mass are among several challenges facing the developing world as they seek to grow. There are viable solutions to many of these problems. Yet these solutions require significant assistance and resources from the international community.

The developing world requires assistance in electrification and energy diversification in the way of hydropower and other renewables so the decoupling trend can continue. These countries also require capacity building to bolster forestry sector projects; the transfer of technology and best practices to assist with the growth of sustainable agriculture; and of course, continued mitigation efforts from developed countries.


A solar high

renew2017MRSAccording to a new report from the International Energy Agency (IEA), solar power was the fastest-growing source of new energy in 2016, beating out all other energy sources, including coal. New solar capacity increased by 50% globally in 2016, with China accounting for almost half of this expansion. Despite current uncertainty about renewable energy policy in the United States, the US is still the second-largest growth market for renewables. By 2022, India is expected to more than double its current renewable electricity capacity.  The IEA predicts that these three countries alone will account for two-thirds of global renewable energy growth by 2022.  According to Fatih Birol, IEA’s executive director, this rapid growth in 2016 indicates a “new era” for solar energy, which is driven by continuous reductions in the technology’s cost and market dynamics in China resulting from policy changes.

Looking beyond solar energy, renewables overall accounted for two-thirds of all new energy capacity in 2016. IEA sees renewables growing “by about 1,000 GW (gigawatts) by 2022, which equals about half of the current global capacity in coal power, which took 80 years to build.” According to Birol, “while coal remains the largest source of electricity generation in 2022, renewables close in on its lead.”


Bridging the Gap between NDC Commitments and NDC Implementation

During this morning’s Joint High Level Segment, U.S. Special Envoy for Climate Change Jonathan Cooper Pershing delivered the U.S. National Statement. Addressing the combined meeting of the COP22/CMP12/CMA1, Pershing said, “With the policies already in place, the United States is well-positioned to meet its Paris Agreement targets” and that through current market trends, “the transition to clean energy is inevitable.” These are reassuring words to those wondering if the U.S. can bridge the gap between its Paris Agreement Nationally Determined Commitments (NDCs) and its policies.

Lord Nicholas Stern at COP 22 in Marrakech, Morocco

Lord Nicholas Stern at COP 22 in Marrakech, Morocco

Lord Nicholas Stern echoed these sentiments today at a COP 22 Grantham Research Institute on Climate Change and the Environment event presenting the institute’s latest COP study. Lord Stern, Grantham Institute Chair and member of the U.K.’s House of Lords, emphasized the importance of federal structure, stating, “The best way for Parties to implement NDCs is to create supporting policies regionally and locally through cities, states, and provinces.” Pledges are only as good as their implementation. Governments will need to continue to translate words into action through understanding, informed by research, science and policy.  Policy is the bridge. Parties now need the courage to cross it.


Land Use and Methane

As the COP negotiations increasingly look to agriculture, forestry, and other land uses as tools to mitigate and adapt to a changing climate, methanogenesis – the biological production of methane by single-celled organisms – must be taken into account. This methane production is very similar to fermentation, the process used to produce alcohol. In fermentation, when yeast is denied access to oxygen, the yeast produces alcohol as a waste product. Humans do this too when exercising, producing lactic acid (this is why your muscles burn when you are out of breath). In methanogenesis, when a certain type of bacteria is denied access to oxygen, the bacteria will produce methane as a waste product.

 

This is a serious concern to land use managers. Rice production is one of the largest human sources of methane because of the low-oxygen content of the water in submerged rice paddies. To make matters worse, as the climate warms the bacteria in rice paddies produce higher levels of methane.

Another land use concern is the construction of hydroelectric dams. Hydroelectric dams are often viewed as a viable renewable energy alternative to fossil fuels, but because of the low-oxygen content of the water of the reservoir, organic material that gets caught at the dam decomposes to produce methane. Some even argue that hydroelectric dams are a net cause, not a solution to, climate change.

Deputy Head of The University of Queensland's Australian Centre for Ecogenomics Professor Gene Tyson

Deputy Head of The University of Queensland’s Australian Centre for Ecogenomics Professor Gene Tyson

On top of all this, a recent study discovered a new methane-producing group of organisms that live in wetlands, lake and river estuary sediments, mud volcanoes, and deep-sea vents. This discovery revealed that humans still have much to learn about the carbon cycle. And this is not to mention all of the other sources of methane, both human (e.g. energy and waste production, livestock) and natural (e.g. wetlands, oceans, termites).

 

Fortunately, there are ways to manage these concerns. Rice paddies can be drained mid-season to kill off the methane-producers, and alternative fertilizers have been shown to reduce methane emissions. Hydroelectric dams can be managed to reduce organic matter in reservoirs, both by harvesting trees and other plant matter before the reservoir is flooded and by capturing organic matter farther upstream before it reaches the reservoir. Finally, researchers have also discovered methane-consuming bacteria that could play an important role in the reduction of methane emissions. Land use managers must consider these methane-control techniques as we move to address climate change.

 


The end of gas-fired cars?

oslo downtownNorwegian Liberal Party MP Ola Elverstuen announced today that Norway’s four leading political parties have agreed on a ban of gasoline-powered cars by 2025. “After 2025 new private cars, buses and light commercial vehicles will be zero-emission vehicles. By 2030, new heavier vans, 75 percent of new long-distance buses, 50 percent of new trucks will be zero emission vehicles.”

Norway already has a good leg up on this transition.  Approximately 24% of its cars are electric. Oslo has debated banning cars completely (including e-vehicles) in downtown, while building 35 miles of bike lanes by 2019 to complement its public transport array of buses and trams.  The national government has provided incentives for purchasing e-vehicles for several years, including tax exemptions, extra parking, and bus-lane use.  Nudging consumers in this climate neutral direction is made easier by Norway’s copious hydroelectric power (96% of its electricity production energy mix, according to IEA). Consequently, the Tesla or Nissan Leaf has been the country’s top selling vehicle.

Nonetheless, today’s announcement has made car manufacturers see green – kroner, that is. Tesla CEO Elon Musk praised it, calling Norway an “amazingly awesome country.”


UK hits new carbon low

uk-energy-infrastrucutre-closures_499x255The United Kingdom’s carbon emissions have fallen to their lowest level since the 1920s. Coal consumption in 2015 fell 22% from 2014, and led to a 4% decrease in GHG emissions. Renewable energy produced 25% of the UK’s electricity in 2015. This trend is expected to continue in 2016, as four coal plants closed in March. The Cameron government has pledged to shutter all of the UK’s coal plants by 2025.  For more detailed analysis, read the Carbon Brief.


Global renewable investment surges in 2015

global trends in RE investmentFrom UNEP and Bloomberg New Energy Finance’s new report, called Global Trends in Renewable Energy Investment 2016: global investment in renewable energy was more than twice that in coal and gas in 2015. Renewable energy investment totaled a record $286 billion last year, with more than half of it ($156 billion) in the highest GHG-emitting developing countries  – China, India, and Brazil. China’s investment alone was 36% of the global total, having increased 17% over 2014. “All this happened in a year in which prices of fossil fuel commodities — oil, coal and gas — plummeted, causing distress to many companies involved in the hydrocarbon sector,” the report’s authors noted.

But the report also points out the empty part of today’s energy sector glass. “The outlook for power sector emissions remains alarming — despite the agreement at COP21 in Paris, and despite the growth of renewables detailed in this report.”   While renewables make up more than half of all new electricity installments, they currently only generate a little over 10% of the world’s total electricity currently on line.

For more details on policy changes needed to play catch up, read here.


If you build it, they will come

Clean LineU.S. Department of Energy Secretary Ernest Moniz just announced the approval of a large-scale transmission project that will bring wind power from Texas and Oklahoma to the southeastern states. Called the Plains & Eastern Clean Line, the $2.5 billion transmission line is the largest of several clean energy infrastructure projects being developed under DOE partnerships. Moniz says that “moving remote and plentiful power to areas where electricity is high in demand is essential for building the grid of the future,” and highlights the tangible benefits of creating jobs, reducing emissions, and increasing grid reliability. The P&E Clean Line is expected to start construction on the 600-kilovolt, direct current line in 2017 and bring it into service in 2020.

The DOE’s action to greenlight the greening of US electricity comes over the opposition of several states. The DOE is helping private developers get these projects running using, for the first time, its power to partner with transmission companies found in the Energy Policy Act of 2005.  Arkansas regulators had refused to site the new P&E Clean Line five years ago because the project developer didn’t operate in the state and so wasn’t considered a utility under state law. (Missouri regulators have acted similarly on another clean line, the Grain Belt Express.) The Department’s decision will likely be challenged, questioning its authority under the 2005 law to take land for the line. Landowners argue that federal eminent domain is unconstitutional because the project isn’t needed.


Decoupling GHGs from GDP: Year 2

IEA 2015The International Energy Agency (IEA) released new data today showing that global GHG missions related to energy held steady again for the second year in a row while the global economy grew. Renewable energy was key to stabilizing emissions levels, with more than 90% of new energy generation coming from renewables – the highest level in more than 40 years.

From IEA director Fatih Birol’s perspective, “Coming just a few months after the landmark COP21 agreement in Paris, this is yet another boost to the global fight against climate change.  This means the decoupling of global emissions and economic growth is now confirmed.”

For more specific analysis, including the roles that the U.S. and China played in this result, read the press release and accompanying data set here.


U.S. INDC Pledge Just Wishful Thinking Without CPP?

US INDC Emissions Targets Last year, when the U.S. made its INDC pledge to reduce net GHG emissions 26-28% below 2005 by 2025, it was built on Obama’s 2013 Climate Action Plan with the proposed Clean Power Plan (CPP) among its key elements. At the time, a range of climate policy observers, including Climate Action Tracker, U.S. Chamber of Commerce, Climate Advisors, and the World Resources Institute, noted that additional policies would be needed to meet this pledge.EPA CPP Infographic

New information and developments compel another look at the gap:

  1. Congress extended the 30% Investment Tax Credit (ITC) for solar and $0.23/kWh Production Tax Credit (PTC) for wind.
  2. The U.S. Energy Information Administration (EIA) released its 2015 Annual Energy Outlook (AEO), and the U.S. submitted its second UNFCCC Biennial Report.US 2016 Biennial Rpt cover image
  3. As we blogged in February, the Supreme Court issued a stay on the CPP’s implementation.SCOTUS bldg

The Rhodium Group released a report in January – Taking Stock: Progress Toward Meeting U.S. Climate Goals – that accounts for the first two when analyzing if and how the U.S. can achieve its pledge. Its analysis considers various uncertainties (different paths for future economic growth, potential shifts in transportation demand, and different rates at which the cost of renewable energy and battery storage technology will decline) and integrates these with a set of climate and energy policies, including:

  • The Clean Power Plan
  • Pending methane (CH4) emissions standards for new oil and gas sources
  • Pending heavy-duty vehicle (HDV) efficiency standards revisions
  • Pending hydroflourocarbon (HFC) phasedown efforts under the Montreal Protocol

The report also considered the sizeable uncertainty in sequestration pathways for LULUCF, as identified in the U.S.’s second Biennial Report. (The use of the “net” approach in GHG accounting indicates the inclusion of land use, land use changes, and forestry (LULUCF) as carbon sinks to offset emissions.)trust-forest-comp2

The Rhodium Group concluded that emissions reductions of 10%-23% would be expected by 2025, when incorporating the Biennial Report’s wide range of uncertainty on LULUCF sequestration potential, the full range of uncertainties for economic and technology outcomes, and uncertainties in CH4, HFCs, and HDVs reductions. To move beyond the most optimistic prediction will require building GWPDiagramon existing policy frameworks, targeting industrial CO2 emissions, creating additional CH4 reduction pathways, and “enhancing the forest sink,” all within the next 5-10 years.

But, what do things look like without the CPP? While we can’t understand all the permutations, two CPP analyses (both assuming optimal implementation) help us get a glimpse. EPA, in its August 2015 Regulatory Impacts Analysis, estimates that the CPP would provide a 9-10% reduction in power sector CO2 emissions below the 2005 level by 2025 as compared to its base case (Table 3-6). Another Rhodium Group report, co-authored with the Center for Strategic and International Studies, Assessing the Final Clean Power Plan, projects a 17-18% reduction compared to its base case. A number of factors (e.g., different modeling frameworks and historical data) made EPA’s base case significantly more optimistic. Still, both calculated total power sector change from 2005 of 28-29% by 2025. Notably, these figures were derived before the recent passage of the solar and wind tax credits.clean_powerExtrapolating using this range of figures, EIA historical date, and the Biennial Report for other sector reductions, the CPP would likely have a roughly 4-11% impact on overall net emissions in 2025. (There are many nuances in doing such a calculation; but, as calibration, the Rhodium Group’s Taking Stock report projects a combined 15% reduction with the CPP and the ITC/PTC.)

At a 4%-11% benefit, the CPP would provide somewhere between 15% and 40% of the reductions needed to meet the INDC pledge. Without it, the U.S.’s intention likely moves beyond optimism to just wishful thinking.


Cleaning up India’s energy mix

dehli pollution2015 marked the first time that the average Indian was exposed to more air pollution from fine particulate matter than the average Chinese, reports Greenpeace. In response, India has introduced new taxes aimed at cutting pollution and reducing emissions.  The country’s finance minister announced this week a tax of up to 4% on new passenger vehicles.  It’s estimated that almost 40% of Dehli’s air pollution comes from vehicle emissions alone.

India is also taking aim at cleaning up its energy mix, both for local pollution abatement gains and for global GHG mitigation.  When announcing the car tax, the finance ministry also announced a doubling of its tax on coal, which comprises 70% percent of India’s energy mix. With an eye toward low carbon energy sources, the government plans to allocate $430 million for nuclear power development.

It also continues to emphasize solar energy development. The BRICS development bank, along with the World Bank and the Asian Development india solar missionBank, recently announced that they will each provide $500 million in financing for rooftop solar in India. These loans will be used to provide a 30% subsidy to public institutions that set up rooftop solar power systems. India aims to have 100 GW of solar power capacity operational by April 2022, with 40% of it coming from rooftop solar. Currently rooftop solar contributes only 10% of the total 5 GW solar power capacity.  To spur development, the Indian Cabinet recently approved a rooftop solar subsidy of $770 million by 2022 for public institutions, to complement the international development bank loan pledges.

 


The State of the U.S. States on Renewable Energy

RPS-cover_Page_1-232x300A new study on state renewable portfolio standards (RPS) concludes that in 2013 these state energy laws yielded $7.4 billion in benefits while costing only $1 billion. Conducted by researchers from the U.S. Department of Energy’s Lawrence Berkeley National Laboratory (Berkeley Lab) and National Renewable Energy Laboratory (NREL), the study specifically estimates that $2.2 billion in benefits came from reduced greenhouse gas emissions and $5.2 billion came from reductions in other air pollution (primarily from avoided premature mortality).  RPS policies require electricity providers to generate a set portion of their load from eligible forms of renewable electricity. They currently exist in 29 U.S. states plus Washington, D.C., and have been a driver for renewable electricity generation in the United States over the past decade.

Oregon is poised to join the RPS ranks. While this would not seem like news – the 30th state to join – what stands out is that Oregon’s utilities support the bill that sets a 50% renewables target by 2040 and ends all coal-fired power generation by 2030.  Over the past 10 years, electric utilities have not led the pack in RPS laws gaining steam.

 

 

 


Are US COP21 pledges in trouble? UPDATE

IMG_24022/19/16 UPDATE:  Since my post on Monday, Todd Stern, U.S. Special Envoy on Climate Change, has weighed in.  Speaking from Brussels, where he was meeting with the EU’s Climate and Energy Commissioner, Stern was quoted as saying “it is entirely premature, really premature to assume the Clean Power Plan will be struck down but, even if it were, come what may, we are sticking to our plan to sign, to join. We’re going to go ahead and sign the agreement this year.”  He pointed out how different the situation President Obama faces when signing the US on to the Paris Agreement than President Clinton’s support of the Kyoto Protocol that was then abandoned by his successor, President George W. Bush. “Paris was seen as such a landmark, hard-fought, hard-won deal that, for the U.S. to turn round and say we will withdraw, that would inevitably give the country a kind of diplomatic black eye that I think a president of any party would be very loath to do.”  He added:  “We think we are going to prevail in the court but we are going to go ahead and sign the agreement this year. Period. And we are not in any way going to back away from our 2025 targets.”
* * *

obama at COP21This has been the question of the week in the US environmental community (and to some degree, in the international community as well).

The US Supreme Court granted a stay on Tuesday to the plaintiffs challenging EPA’s authority to devise the Clean Power Plan (CPP) under its Clean Air Act rulemaking authority.  In Paris and at home, the CPP has been described as the cornerstone of US pledges under the Paris Agreement.

While a stay is only a procedural decision that stops implementation of a challenged law during litigation, the fact that five out of nine SCOTUS justices granted it caused a collective gasp last Tuesday night in the enviro law community.  Why?

First, and foremost, no one was expecting it.  The plaintiffs’ motion for a stay had already been denied by the D.C. Circuit (which will hear the case on the merits in June).  This ruling was accepted by both sides of the lawsuit as well grounded in precedent.  In fact, many saw the appeal to the Supreme Court as a “hail Mary” pass.  (No Cam Newton jokes here.)  Second, the stay indicates that at least five justices think that the plaintiffs could be harmed by complying with a rule that, when it inevitably arrives at the Supreme Court after the D.C. Circuit’s decision, may be held invalid.

Reading the blogs and Tweets of the last six days, it’s safe to say that the jury is out on what this SCOTUS decision means for the CPP and for the Paris pledges. One slice of expert opinion talks everyone off the ledge by reminding us that it’s just a short-term procedural victory, not a decision on the merits.  David Doniger of the Natural Resources Defense Counsel (NRDC) embodies this effort in this interview.

On the impact of the stay at home, there’s a difference of opinion.  The Washington Post reported that “about 48 hours after the court’s decision, major utility companies are reacting to the move with a collective shrug.”  The largest trade association of electricity providers, Edison Electric Institute, was quoted saying that “electric utilities are investing in clean energy and pursuing energy efficiency” regardless of legal challenges to the CPP — even companies, like AEP, who are listed among the plaintiffs.  Pointing to Congress’s recent renewal of clean-energy tax credits and increasing private sector investments in clean-energy projects, EPA Administrator Gina McCarthy adds that “the CPP is underpinning a [market] transition that is already happening and will continue to happen.” States like New York and California immediately called press briefings to state their continued implementation of the CPP.  A variety of state official responses, similar in tone, have been collected by the Georgetown Climate Center.  Yet Justin Pidot of the University of Colorado School of Law reads the stay as a sign that the coal industry is “too big for EPA to regulate absent an express congressional directive.”

On the international impact of the stay, observers express concern at the high level of international relations more than in the nitty gritty detail of achieving the Paris pledges.  Michael Gerrard of Columbia’s Center for Climate Change Law emphasizes that while the CPP is important to the US plan for mitigating GHG emissions, it’s not the only game in town.  Gerrard points to several facts in his blog post on Wednesday that the mainstream media hasn’t clearly picked up.  First, the CPP doesn’t fully kick in until well into the longer-range US INDC pledges.  Citing the US’s Biennial Report (a required communication under the UNFCCC) that was filed just last month, Gerrard points out that the CPP’s actual emissions reductions do not begin until 2022, and thus don’t affect the 2020 pledge of reducing 17% below 2005 levels.   In terms of the 2025 pledge of 26% to 28% reduction, Gerrard sees that the US was also relying on fuel economy and energy efficiency standards, phasing out hydrofluorocarbons (HFCs) under the Montreal Protocol on Substances that Deplete the Ozone Layer, reducing methane emissions, and for the ultimate reach, counting forests and other vegetated land masses as GHG sinks.

In contrast, Michael Wara of Stanford Law School believes the US’s international reputation for making good on the Paris Agreement pledges — already weakened by our unreliable behavior on the Kyoto Protocol — took a hit from the stay, especially given our bilateral negotiations with China and India and the role that the CPP-based reductions played in them.   (He also sees “significant ramifications” for the U.S. electric power sector given that continued uncertainty in regulating carbon hurts long-term electric utility investments, which could result in higher prices for consumers and competitive disadvantages in trade. (This post from the law firm of Stoel Reeves provides more details on this point.))

Now, with Justice Scalia’s death two days ago and the ensuing debate about who will appoint his replacement, the role of the Court in US domestic climate change law and its international commitments is even more acute.