Climate and energy economics
Energy consultant Wood Mackenzie Ltd. estimate the carbon price must rise to $160 per ton by 2030 to meet the requirements of holding emission levels down to keep warming to the IPCC estimated level of 1.5 degrees celsius.
UK Treasury, having said that meeting net zero will cost £50bn annually in 2050 now thinks £70bn per annum is more realistic. The lower figure was from government’s official advisors on climate change, the Committee on Climate Change (CCC) led by the corrupt Lord Deben.
Sterling Burnett finds that while all US wind/solar installations are subsidised, more than half of the states have additional mandatory renewable requirements. These include every state among the top 10 with the most expensive electricity. Eight of the 10 states with the lowest prices have no additional renewable requirements. The two that do are Washington with considerable hydro and Texas with a highly competitive supply.
A University of Colorado study determined that the main cause of closure of 348 US coal plants was not cheap gas but the 2015 Cross State Air Pollution Rule, which requires states to reduce soot and smog pollution, and Sierra Club’s Beyond Coal campaign, backed by over US$174 million from Bloomberg Philanthropies. The authors support these interventions.
Beware about your savings! The world’s largest investor, Black Rock, with $US9 trillion in funds management, is intensifying its rejection criteria of stocks in businesses that involve high carbon emissions.
Swiss Re, the world’s largest reinsurer, announced new climate targets, including plans for the reinsurer to completely phase-out thermal coal from its treaty business by 2030 (OECD) and 2040 (rest of the world).
Bowing somewhat to pressures, Citibank says it won’t take on any new clients with plans to expand coal-fired generation after the end of 2021, but does not extend this to halt financing for existing clients with coal power expansion plans.
It’s not cheap being green. Deutsche Post is to spend 7 billion euros over the next 9 years “making an important contribution to our planet and society”.
The Democrat's proposed Clean Future Act calls for the elimination of gas-fired electric power generation within 14 years. David Wojik condenses the fifty year history of electric power in America as:
First they came for the nukes in the 70’s. Coal and gas smiled, saying we can do the job, so we built 350,000 MW of coal-fired baseload and gas-fired peakers.
Then they came for coal in the 90’s. Gas smiled, saying we can do the job, so we built 220,000 MW of gas-fired baseload.
Now they have come for gas. Wind and solar are smiling; their trade associations love this law.
But there is a big difference this time. WIND AND SOLAR CAN’T DO THE JOB.