Categories
Australia Carbon Pricing Economics of mitigation

February 15, 2013 – the carbon bubble, will it burst?

Ten years ago, on this day, February 15, 2013, a journo for the Melbourne Age writes a piece about the then-all-the-rage topic of “unburnable carbon”

Energy analysts and activists warn that most of the world’s fossil fuels must remain in the ground, and that it can’t be business as usual for the industry.

Green, M. 2013. Bursting the carbon bubble. The Age,15 February, p.16.

The amount of carbon dioxide in the air was roughly 397ppm. As of 2023 it is 419ppm, but check here for daily measures. 

The context was

This “unburnable carbon”/”carbon bubble rhetoric was all the rage 10 years ago. It looked like the UNFCCC process was going to be a slow route back to feeling that the system could deliver. Copenhagen had been a failure, Paris was two and a half years off and it was still not clear that it would provide anything. So all those people who need to believe that there are levers and buttons in the policy sphere that we can push turn their attention to the idea that investors rather than statesmen could solve the problems; they just needed to be given stark advice that investing in stranded assets was a bad idea. 

How do you strand an asset? Well, ultimately, you need to have markets and regulations that make some investments,a bad idea and other investments a better one. How would you do that on carbon? Well, you would need a strong legally binding international agreement (which you can’t get), and therefore, we’re all toast. 

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What I think we can learn from this

Using one “part” of the financial system – whether it is the re-insurers, the insurers, the institutional investors as the leverage point, the secret push-this-button-to-change-the-system is a long-standing and soothing idea for a certain kind of climate-motivated person. Some of them are super-smart. This does not mean they are right.

Unburnable carbon as a meme allowed people to hold conferences, put out press releases, videos, get interviewed on Newsnight and podcasts and generally feel that things were still salvageable. Am I too cynical? My therapist says so.(1)

What happened next

You hear less about unburnable carbon these days, now that Paris and Net Zero are flooding the zone.

What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong?  Do comment on this post.

  1. As someone who read this before publication said – “I understand the dynamics of hoping there is a secret lever to pull, but in dismissing that at the same time as providing a psychological sort of explanation for why people keep coming back to this, you might be throwing the baby out with the bath water. There may not be a simple lever we can pull, but even if a mass movement formed which highly organized, highly effective and coordinated, competent, resourceful and dedicated, in the way you would like to see, it would still end up having to deal with the power of capital and would be highly involved in trying to pull these various “levers”

References and See Also

IPIECA on the concepts…

https://seors.unfccc.int/applications/seors/attachments/get_attachment?code=6IPYS06R1TK33GFX33NA3I1IDOJ9OHB5

July 2022 “Unburnable Carbon Ten Years On.”

Categories
Energy

January 28, 2013 – Doomed “Green Deal” home insulation scheme launched in the UK

Ten years ago, on this day, January 28, 2013, it all went wrong…

“Energy efficiency policy in the UK is at a watershed. On January 28th 2013, the Green Deal formally began operation. The Green Deal is a market-based, demandled financial mechanism providing up-front loans for energy efficiency measures, which are repaid using the energy savings. A new Energy Company Obligation will run alongside the Green Deal to support vulnerable customers, poorer communities and higher cost insulation measures. A commercial sector Green Deal is also planned”

Sounds great. Um…

“So what went wrong? The Green Deal was an example of a ‘Pay-as-you-save’ type scheme, where loans are taken out to pay for the energy efficiency measures, and repaid over time from the financial savings created by these measures. It seems like a no-cost solution and an obvious winner. But not the British government’s version of it.  One of the reasons for this failure was pointed out right at the start by critics, but ignored by government officials responsible for designing the scheme. This was that the 7-10% APR interest rate on the loan to householders was too high – in fact several percentage points higher than ordinary loans available on the high street. It was simply not affordable.

It also made many measures unaffordable within its own context – the ‘Golden Rule’. This rule was embedded into the legislation and stipulated that the savings generated by energy efficiency measures must lie within the cost of the measures. The Green Deal was initiated in 2013 under the 2011 Energy Act. It came with no target or grants. It combined accredited energy advice and installation with finance to be repaid in a period up to 25 years. Finance was attached to the property, and recouped through extra charges on the electricity bill (even if the savings were made on a different fuel, say gas).

The result? 300,259 total Green Deal assessments resulted in only 1,815 ‘live’ plans – a conversion rate of just 0.6%”

Thorpe, D. (2016) Why the UK Green Deal failed and why it needs a replacement. Energy Post, April 18. https://energypost.eu/uk-green-deal-failed-needs-replacement/

The amount of carbon dioxide in the air was roughly 396ppm. As of 2023 it is 419.

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The context was that there was a Coalition government in the UK, and the Liberal Democrats were trying to get the elephants that are Departments of State to tapdance.

What I think we can learn from this

This stuff is difficult. Wicked. Superwicked, superwicked on acid and steroids. And we’re all gonna die.  We are toast, but we are not going to be toasty, at least not in winter…

What happened next

Another, smaller, scheme went tits up in 2021.  And millions were screwed by energy price spikes in 2022, 23 , 24 and so on until the apocalypse…

What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong?  Do comment on this post.

References

Thorpe, D. (2016) Why the UK Green Deal failed and why it needs a replacement. Energy Post, April 18. https://energypost.eu/uk-green-deal-failed-needs-replacement/

Categories
Swtizerland

January 25, 2013 – Lord Stern admits #climate “worse than I thought”

Ten years ago, on this day, January 25, 2013, one of the white men who has been born with a “safe pair of hands” had the good grace to admit that he’d misunderestimated the speed and breadth of climate impacts. Nick Stern, former World Bank economist, had been tapped on the shoulder by then-Treasurer Gordon Brown in 2005, and had produced a report (“the Stern Review” on the Economics of Climate Change). Interviewed by two Guardian journos at Davos 6 years after its release, he said 

 “Looking back, I underestimated the risks. The planet and the atmosphere seem to be absorbing less carbon than we expected, and emissions are rising pretty strongly. Some of the effects are coming through more quickly than we thought then.”  (Had I known this), “I think I would have been a bit more blunt. I would have been much more strong about the risks of a four- or five-degree rise.”

http://www.theguardian.com/environment/2013/jan/27/nicholas-stern-climate-change-davos

The amount of carbon dioxide in the air was roughly 395.8ppm. As of 2023 it is 419.

The context was that the international climate negotiations were beginning to crank up for the next “big” meeting (Paris 2015) and folks at Davos (where the rulers of the world and their consiglieres, lackeys and hangers-on go to be seen) were making the right noises.

What I think we can learn from this

The people with the safe pairs of hands? Always ask yourself – safe for WHO? Safe for WHAT?

What happened next

Davos kept going (everyone should read Thomas Mann’s The Magic Mountain, imo. It’s set in Davos, but with a different cast of characters, different sensibility.). The Paris Agreement happened.  And everyone was saved.

What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong?  Do comment on this post.

References

Stewart, H. and Elliott, L. (2013) Nicholas Stern: ‘I got it wrong on climate change – it’s far, far worse’. The Guardian, 27 January.

Categories
Australia

January 8, 2013 –  Australian Prime Minister connects bush fires and #climate change

Ten years ago, on this day, January 8, 2013, soon-to-be-ex Australian Prime Minister Julia Gillard pointed out the obvious…

“the Australian Bureau of Meteorology released an interim special climate statement on the extreme January heat Australia is currently experiencing. Record temperatures both day-time maximum and night-time minimums continue to be broken. The extraordinary heatwave has also been the scene for catastrophic fires, especially in Tasmania. The Prime Minister Julia Gillard saw the devastation in Dunalley and among her many interviews and press conferences made a brief statement connecting the intensity of bushfires with climate change.”

http://takvera.blogspot.co.uk/2013/01/records-tumble-in-heatwave-as-julia.html

The amount of carbon dioxide in the air was roughly 396ppm. As of 2023 it is 419.

The context was that Gillard had been politically slaughtered by the “carbon tax” battle of 2011, thanks to the Murdoch press, the effectiveness of Tony ‘wrecking ball’ Abbott (soon to be exposed as a terrible Prime Minister) and the white-anting of the pro-Kevin Rudd forces in her own party.  

Gillard was far from perfect (as we shall see later in this series) but she definitely got a raw deal.  And her comments, and the connections she made, they should have helped wake more people up. But, well, here we are…

What I think we can learn from this

There comes a point where even if you’re right, thanks to what has gone before, you’re not gonna be listened to.  So your choices sort of become shut up and resign yourself to the fact that your experience/wisdom is going to be ignored and the same mistakes will be made, with nobody listening, or find a new audience/new ways of expressing, and perhaps a proxy with less baggage (this wasn’t an option for Gillard, obvs). 

What happened next

Gillard was toppled by the guy she had toppled (Kevin Rudd). Tony Abbott became the next Prime Minister and was clearly the worst Prime Minister ever. At least for a few years. There’s always a way to stop scraping the barrel, move it to one side and keep on digging….

What do you think? Does this pass the ‘so what?’ threshold? Have I got facts wrong? Interpretation wrong?  Do comment on this post.

See also

http://www.theguardian.com/environment/damian-carrington-blog/2013/jan/08/australia-bush-fires-heatwave-temperature-scale

Categories
Activism Australia Guest post

Ten years on from the ANZ spoof – Jonathan Moylan reflects

Australian activist Jonathan Moylan recalls the non-violent climate action that could have sent him to jail

Ten years ago today, at the age of 22, I hit send on a media release before brewing a pot of coffee. I didn’t realise it at the time, but that spoof release, which was intended to paint a picture of a better world, ended up causing ripple effects that reverberated around the world.

At stake was the Leard State Forest, the largest intact area of native vegetation in the heavily-cleared Liverpool Plains, the centre of a critical biodiversity corridor that was part of the Nandewar-Brigalow bioregion, providing connectivity for species between the Kaputar ranges to the north and the Pilliga to the south. Habitat for koalas, regent honeyeaters and an incredible array of bats and microbats, the forest was being targeted by three large open-cut mines that would rip the forest apart.

I hadn’t heard of the Leard Forest or the neighbouring community of Maules Creek until the previous year, but for years the community had been working together to protect their region from open-cut mining. They were not opposed to mining per se, and would have tolerated an underground mine, but were worried about losing road access to Maules Creek during floods due to the planned closure of Leard Forest Road, as well as the threat of ten metres of aquifer draw-down, property devaluation, noise and dust.

Yet despite their reasonable proposals, thousands of dollars spent on independent consultant reports and some political support across the spectrum, the mine was approved by the NSW Government in late 2012 – all that remained was a determination from the federal government.

At the time, Whitehaven’s Maules Creek project was the largest new coal mine being considered in NSW and would increase coal tonnages through the world’s largest coal port in my hometown of Newcastle by ten percent. Yet despite the contention around the mine and its enormous contribution to climate change, the mine also secured a $1.2 billion loan facility from ANZ bank.

While it was rare at the time, in the ten years following 2013 we’ve seen a growing number of banks worldwide rule out finance for new coal projects following pressure from communities, shareholders and regulators given heightened awareness that climate change poses acute, chronic and systemic risks to the financial sector and the economy as a whole. Cracking down on companies making misleading claims about their climate credentials is now a priority for ASIC, the corporate regulator.

That would have been unimaginable in 2013, when the press release I sent out on ANZ’s letterhead – which was quickly revealed to be a hoax – announced that ANZ was withdrawing its loan to Whitehaven on ethical grounds. I only realised how serious things would get after a call from a journalist at the Washington Post who told me that Whitehaven’s share price had dropped by 9% – before recovering some twenty minutes later. Soon what start as a small protest camp in the forest with a handful of people became a two-year-long effort bringing thousands of people from all walks of life – doctors, lawyers, a former mining engineer and even former Wallabies flanker turned senator David Pocock – to take action in an effort to prevent the damage the mine would bring. More extraordinary was the incredible alliance of Gomeroi traditional owners, farmers and environmental groups who found common cause in a way that has probably permanently transformed the social fabric of the region.

Cracking down on companies making misleading claims about their climate credentials is now a priority for ASIC, the corporate regulator. That would have been unimaginable in 2013,

As I quickly learnt, any misleading statement that could impact on the sharemarket carried severe consequences. Officers from the securities regulator ASIC flew up to camp to seize my phone and computer and ordered me to appear for compulsory questioning – with no right to silence. Four months later I was charged with an offence that carried a maximum penalty of 10 years jail or $750 000 in fines. They were entitled to do this – although nobody had previously been charged under that false and misleading provision of the Corporations Act – it was a strict liability offence, which meant that the fact that I didn’t expect or intend an impact on the share price or wasn’t a participant in the sharemarket was irrelevant to the charge.

Suddenly I found myself in the middle of an incredibly high-pitched and polarising debate that played out in the media and in parliament for weeks. In some minds, I had deliberately set out to cause damage to the market. The bigger issue of the irreversible harm that would be caused to the world’s life support systems – on which we all depend – was at risk of being lost. For many others though, the notion of jailing a young man for drawing attention to a destructive new coal project galvanised support.

For its part, Whitehaven is no stranger to being on the wrong side of the law, having been penalised for illegal mining, illegal dumping, water theft, failure to declare political donations and illegal land-clearing. Yet the penalties meted out in those cases have never come close to meeting their gravity.

The broad-based campaign did more than delay the mine for several years. Public opinion has finally started to turn amidst a realisation that global coal demand has already peaked and renewables will win the race – the only question is when. The community continues to hold out against proposed coal expansions and coal seam gas threats in North-West NSW.

Throughout the ensuing court case, I was told by lawyers that the most likely outcome was a prison sentence of around a year. I was willing to accept the consequences, even though it was virtually unheard of for anybody to face prison time for a protest action in NSW. Ultimately I was sanctioned with a suspended sentence.

Throughout the ensuing court case, I was told by lawyers that the most likely outcome was a prison sentence of around a year

What’s harder to accept is the notion that with everything we know about the consequences of mining and burning fossil fuels, some companies are still entertaining significant new coal, oil or gas expansions. Yet as a United Nations panel determined last November, any bank that continues to claim it is committed to net zero emissions while lending to companies pursuing fossil fuel expansions is misleading the public.

A lot of water has passed under the bridge in ten years. But there is still much more to do.

All Our Yesterdays exists to inform people about the long histories of climate change – the science, the politics, the technology, the protest movements. It hopes to spark discussions among citizens’ groups about what we need to do differently to make the radical rapid changes required,…If you are someone, or know someone who should be writing a guest post/giving an interview, please say so in the comments below…

Categories
Greenpeace Russia

September 18, 2013 – Greenpeace try to occupy the “Arctic Sunrise.”

On this day, 18 September 2013 a Greenpeace protest ended badly, with the crew of its ship the Arctic Sunrise attempting to scale the Prirazlomnaya drilling platform, as part of a protest against Arctic oil production. (see here)

The following day they were captured,in international waters, by Russians

On this day the PPM was 393. Now it is 420ish- but see here for the latest.

Why this matters. 

We should remember that there have been efforts to at least slow the acceleration of our dash for death.

What happened next?

The crew were released three months later, the ship three months after that.