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PICS CLIMATE NEWS SCAN

10 April 2013

The PICS Climate News Scan is a weekly summary of the major climate-change related science, technology, and policy advances of direct relevance to the BC provincial and the Canadian federal governments and more generally to businesses and civil society. The News Scan focuses on cutting edge climate issues and solutions gathered by the fellows and faculty of ISIS, a research centre at the UBC Sauder School of Business, in partnership with the Pacific Institute for Climate Solutions (PICS). Access to some referenced articles may require a journal subscription or purchase of the article, and appropriate links are provided for this purpose. To provide content feedback and/or suggestions, please email picsscan@uvic.ca.

Authors: Chanda Brietzke, Justin Bull, Liz Ferris, James Noble, Sarah Thomas
Editors: Neil Thomson (ISIS), James Tansey (ISIS), Robyn Meyer (PICS), Tom Pedersen (PICS)

Research Theme I: The low carbon emissions economy

IMF calls for global reform of energy subsidies

March 27, 2013.  In a new report, the International Monetary Fund (IMF) calls for eliminating energy subsidies worldwide because they increase inequality, boost greenhouse gas (GHG) emissions and limit investment in clean energy technologies. Energy subsidies are estimated to cost governments $1.9 trillion, the equivalent of 2.5 percent of global gross domestic product. While many nations use energy subsidies to benefit consumers by keeping prices artificially low, the biggest benefits tend to be realized by higher-income households, as they are the biggest consumers of energy. The assessment reviewed energy policies in 176 countries, showing that three-quarters of all pre-tax subsidies go to the petroleum and electricity industries with natural gas and coal accounting for almost all of the rest. The largest offenders are the United States, China and Russia – together their subsidies reach nearly $900 billion. The broad-reaching report represents the first time the IMF has put a price on the global fiscal cost of energy subsidies.

Joining fellow G-20 nations in 2009, Canada committed to phasing out inefficient fossil fuel subsidies. However, the Canadian government still provides support to the fossil fuel sector through the direct expenditure of public funds totaling almost $1.4 billion. A recent report by the Auditor General identified a number of positive steps that the government has taken to meet its G20 commitment, such as reducing direct federal spending. However, the report also identified numerous tax breaks and incentives that support the fossil fuel sector. In British Columbia (BC), the debate revolves around the substantial direct subsidies received by mining, oil and gas corporations, and the demands they put on BC’s hydroelectricity system. These industrial customers pay a lower rate for electricity than residential customers, while also promoting fossil fuel generation as the preferred choice for future supply. BC has taken strong measures to reduce GHG emissions and promote clean energy technologies; however, the current subsidy system threatens to undermine the economic gains already achieved through the Climate Action Plan.

Research Theme II: Sustainable communities

Untapped potential for energy savings in multifamily dwellings

March 27, 2013.  United States (US) energy conservation organizations released a report last week stating that multifamily housing is a $3.4B US energy efficiency opportunity. The multifamily rental sector has historically been difficult to reach and target through energy efficiency programs due to the challenge of appropriately categorizing the buildings as commercial, residential or a combination of the two. With renters often paying the utility bills and building owners being the logical parties to do major capital upgrades to the buildings, split incentives also pose a problem. Other barriers to participation are a lack of clarity around the benefits of energy efficiency, as well as difficulty in determining what incentives various parties are eligible for. Nonetheless, direct energy savings, lower maintenance and building equipment capital costs, and reduced tenant turnover were cited as key benefits. The report outlines a series of strategies that utility companies can use to more effectively engage with this sector.

A similar report produced in 2010 identified many of the same energy efficiency concerns in discussions with owners and occupants of multifamily dwellings in Canada. At the time of that report, more than 45% of private dwellings in BC were multifamily units. Despite that substantial figure, the report notes that “owners and occupants of multi‐family dwellings were among the least likely to participate in government sponsored energy conservation efforts”. Also, apartment buildings weren’t eligible for the original EnerGuide for Houses government program. When the program became the ecoEnergy home retrofit program it did allow multifamily units, but as with LiveSmart BC programs, eligibility remains unclear and specific benefits to apartment owners, for instance, are not well articulated. The city of Vancouver is currently running a pilot project providing incentives and tax breaks for energy retrofits on hi-rise condos.

Research Theme III: Resilient ecosystems

Localized pollution from coal in southeastern BC

March 21, 2013.  A new study indicates that coal mines are polluting the Elk River, which runs through southeastern BC and into the Waterton-Glacier International Peace Park in the US. Researchers found elevated levels of nitrogen compounds, sulphate, and selenium at sites downstream from coal mines near the river. All of these contaminants affect ecosystem health, but selenium, which is found in waste products from the mines, has the most worrisome consequences. This element is toxic to fish, animals and humans if found in more than trace amounts. Selenium levels in sites downstream of the coal mine were seven to ten times greater than sites upstream or on the nearby Flathead River, where coal mining does not presently occur. These levels fluctuate, but were often well above both the BC and US EPA water quality guidelines. These findings resulted in action by the BC Environment Minister, Terry Lake, who said that applications for new mines in the watershed would not be considered without a plan to mitigate selenium pollution. Teck Coal Ltd., the company that owns the mines, has pledged to invest $600-million over the next five years to remedy the problem.

Water pollution from coal is not restricted to the regions where it is mined. The Sierra Club and four other environmental groups in Washington have warned coal mining and transport companies that they plan to sue them for violating the Clean Water Act. The groups allege that uncovered coal trains on their way to BC ports are leaving coal and other byproducts in the waterways along their routes. Plans for increased port capacity both north and south of the US border are contentious, and would increase the number of trains and pollution in the region. However, there is a more encompassing anxiety regarding coal exports from either region: coal has by far the largest potential for carbon emissions and warming than any other fossil fuel resource.

Research Theme IV: Social mobilization

Misunderstandings further complicate the issue of climate change

March 28th, 2013. An article published in Science by researchers from MIT and Concordia University shows that confusion over committed global warming and irreversibility is hampering understanding of how decreasing CO2 emissions affects global temperatures. This misinterpretation of climate change research creates a tendency for the public to misunderstand the irreversibility of global warming, and how much climate change is already inevitable, due to historical GHG emissions in the atmosphere. For example, in a 2010 National Research Council report prepared by the authors, it was found that current changes to the climate, to date, are irreversible, when viewed from within a 1000-year timescale. However, the findings of this study have been incorrectly used by policymakers to justify delaying action, arguing that climate change is inevitable, regardless of what we currently do. In response, the study’s authors argue that “the irreversibility of past changes does not mean that future warming is unavoidable”.

Despite such misinterpretation of research findings, policy makers in British Columbia seem to clearly understand the implications of climate change in this province. In the 2008 BC Climate Action Plan the government indicates climate change is already impacting British Columbia, citing examples such as increasingly frequent and severe water shortages, increased stress on forests and fisheries, and the pine beetle epidemic, which was caused, in part, by warmer winters. The report goes on to acknowledge that without strong action on climate change, the province can expect to see rising sea levels, decreased snowpack, heat waves, drought and extreme precipitation leading to increased flood risk. The findings of the National Research Council report cited above indicate that, even if BC meets its climate action targets, the province may not be able to reverse the impacts it is already experiencing. However, strong mitigation efforts will help slow and reduce future climate impacts and will set an example for other jurisdictions.

Research Theme V: Carbon management in BC forests

Studies highlight importance of soil in forest carbon lifecycle

April 1, 2013.  Two academic articles this week have highlighted the importance of below-ground carbon in the lifecycle of forests. The first comes from the University of Michigan, where scientists studied changes in soil carbon that occurred when non-forested areas – such as mines and agricultural lands – are planted with trees. They found that planting trees on inactive mines can double the soil carbon present after 20 years, with further doubling every decade. For cultivated farm fields, the changes in soil carbon were less dramatic but still significant, with carbon levels in the soil increasing by 15% after 100 years. In Sweden, scientists studied soil carbon levels in boreal forests. They were surprised when they found that the most recently sequestered carbon was not present in the needles or branches or debris on the forest floor, but deep in the soil. This is the result of mycorrhizal fungi that live in symbiosis with trees, digesting sugars and converting them to carbon. Between 40 and 70% of soil carbon was accounted for by fungi in the areas examined.

Understanding the role soil plays in storing carbon is important for BC`s forests. It helps modelers develop better measurements of the carbon footprint of the province and its industries. It also helps land managers make informed decisions about carbon levels now and in the future. The mining and gas industries, for example, can better account for the carbon benefits of planting trees on dormant sites. Carbon credits are made more robust by understanding soil carbon. Farmers converting their land can receive full credit for the conversion. And forest carbon credits can include not just the above-ground carbon, but also that below-ground. Both studies highlight an important truth: forest carbon is not simply about the carbon stored in wood: rather, the focus needs to be on the lifecycle implications of planting and conserving healthy forests.

Also in the news

Watchdog to probe alleged ‘muzzling’ of scientists

US to require lower-sulfur gasoline

Stanford survey: Americans back preparation for extreme weather and sea-level rise

Canada pulls out of UN drought convention

Republican voters: Take steps to address climate change!

EU capped carbon emissions fell 1.4 percent in 2012