A report from Manchester University researchers shows that rich countries have the least to lose from decarbonization, and if they ended fossil fuel production before other countries did, the prospects for controlling global warming would improve. Meanwhile, China has released details of its plans leading up to 2025 to significantly increase its energy capacity by as much as 800 GW.
Rich Countries’ Income Will Drop Least if Oil, Gas Halted
A report by climate change researchers at Manchester University explains that decarbonization will cause much smaller declines in the economies of rich countries than it would cause in poor ones, and the former would experience fewer adverse impacts.
The report by the Tyndall Centre for Climate Change Research shows that for countries like the U.K., U.S., and Norway, any decision to stop oil and gas production would have limited impact on their GDP per capita, which would remain among the highest in the world at more than $50,000 per capita per annum.
Such countries are the ones that should go first in eliminating oil and gas production to ensure global temperatures don’t exceed 2 degrees Celsius at the most. The researchers suggest these high-income countries, whose economies would experience minimal disruption, should cease fossil fuel production within the next 12 years.
They said poorer countries that depend on oil and gas as a major source of revenue, such as Gabon, Libya, and South Sudan, would have a much harder time if they decarbonized early, since their economies would suffer major disruptions and setbacks if they do.
These poorer countries should therefore be allowed to extend their oil and gas production until 2050, the researchers said. They also noted that these countries also contribute the least amount to global emissions. Too-rapid decarbonization by such poor nations would threaten their political stability, the report added.
Other reasonably well-off countries whose economies could be expected to withstand decarbonization, including China and Brazil, would need to end their oil and gas production by 2043 to ensure global warming doesn’t exceed the target set by the Paris Agreement, the Tyndall Centre report said.
The report suggested that still other countries between the two extremes of financial viability, including Kuwait and Saudi Arabia, could be allowed to continue producing until 2039. This category includes 14 countries whose GDP per capita would be just under $30,000 without oil and gas production.
In response to the report, one expert said that rich countries have no plans whatsoever to cease production of fossil fuels, and in fact are planning to significantly boost production between now and 2030.
The report emphasized there is a 50/50 chance the world can avoid global warming above 1.5 degrees Celsius if the wealthiest nations reduced their oil and gas production by approximately 75% by 2030 and ended all production by 2034, and the poorest nations cut production by 14% by 2030 and end production by 2050.
Federal Agency Defers Climate Change Rules for Pipelines
The Federal Energy Regulatory Commission (FERC) has rolled back plans to impose rules requiring that applications for new gas pipelines be examined for potential impacts on the climate and environmental justice concerns.
FERC said that after considering feedback it was withdrawing the rules and considers them merely a draft until it can make a final decision on them, after hearing further comments from gas companies and other industry personnel.
The commission denied it was succumbing to political pressure by withdrawing the rules.
The new rules had come under intense criticism from Republicans and some Democrats who said they made no sense and would hinder gas projects at a time when the country needed them most to ensure its energy security.
The FERC has recently approved three new gas projects, two of which are in the U.S. Gulf Coast. Continued U.S. gas production is also a concern because the country has committed itself to helping Europe make up for the shortfall in its gas imports from Russia. Europe uses gas for heating homes, electricity, and industrial activity, but nearly all of it is imported and the largest share of imports comes from Russia.
The commission explained that concerns about the legality of its permits for gas pipeline projects was a major reason behind the decision to implement rules for considering climate change impacts. It noted that courts had ruled against some of those permits.
Europe Struggles to Find Substitutes for Russian Oil, Gas
While European countries have agreed to jointly purchase gas supplies to help keep prices down, they’ve been unable to come to an agreement on whether to scrap imports of oil and gas from Russia completely.
Europe is facing an energy crisis as the war in Ukraine has pushed fuel prices even higher and many households struggle to pay for fuel to meet their energy needs. Russia supplies about 40% of Europe’s gas and the EU wants to reduce its dependence on Russia for gas by cutting those imports by roughly 60% before the end of this year.
However, not all European countries agree with proposals to ban importation of Russian gas supplies outright, with some countries, including Germany and Austria, showing less enthusiasm for this option.
Russia’s demand that payment for its gas be made in rubles, in a bid to prop up its currency, is also causing some unease.
Meanwhile, some countries urged governmental intervention to control the price of fuels so as to protect vulnerable households. This suggestion was rejected by others because it would mean supporting fossil fuels with public finances.
A proposal to impose a cap on fuel prices and offer tax rebates, as short-term measures to support households, was also being considered. Spain and Portugal have already been granted permission by the European Commission to temporarily cap electricity prices, because their countries are not totally integrated with the power grid serving the rest of Europe.
The United States has offered to help ease the crisis by increasing exports of liquefied natural gas to Europe.
The agreement between the U.S. and EU involves the establishment of an energy platform to facilitate the increased supply of LNG over the next seven months, as well as construction of facilities including pipelines and import terminals for the LNG. Provisions to reduce greenhouse gas emissions from the imports are also detailed in the agreement.
China Outlines Plans for Increased Energy Capacity
China’s government plans to increase its resources of energy from both renewable and fossil sources between now and 2025.
In outlining its five-year plan for the country, the government revealed that it intends to boost its annual gas output to 230 billion cubic meters between 2021 and 2025, while also increasing installed nuclear energy capacity to about 70 million kilowatts during the period.
The increase in nuclear energy will be supported by the building of nuclear power plants on the country’s coastline. The country plans to produce around 40% of its energy from sources other than fossil fuels by 2025.
Included in the plan for non-fossil energy sources is green hydrogen production, with plans to produce as much as 200,000 tons of green hydrogen annually. Most of China’s 33 million tons of annual hydrogen production is made from fossil fuels, while only 27,000 tons are green hydrogen. More than 100 green hydrogen projects are being developed in China at this time.
The total increase in energy production capacity for the 2021-2025 period is expected to amount to 800 GW. At the same time, China plans to increase energy efficiency through the achievement of an almost 14% reduction in energy per one unit of GDP. It also wants to see a reduction in CO2 emissions for every unit of GDP for the same period.
The plan’s overall aim is to boost the country’s energy security while achieving progress in containing emissions that contribute to global warming.
Jamaicans to Receive Electricity Subsidy
The Jamaica government announced plans to extend relief to Jamaican electricity consumers, by granting a 20% subsidy for electricity bills they generate between April and July.
Officials stated that the subsidy is being granted in light of the ongoing geopolitical situation leading to rising prices for oil and gas. The subsidy will apply to bills for electricity use of up to 200 kWh/month.
Jamaicans were also urged to make use of the prepaid energy service to help them better control their use, as well as using an app designed to help them track energy consumption.
Heavy Rainfall Causes Explosion, Fatalities at Hydropower Plant
A water pipeline to a 275 KW hydropower plant in Assam, India, ruptured after coming under pressure from heavy rains. The explosion led to the deaths of three of the plant’s employees, who were swept away by the force of the exploding water.
The deceased worked for the North Eastern Electric Power Corporation and included management staff. The plant had been closed for maintenance and the three were killed while trying to close one of its reservoir gates.
Brought to you by energysavings.com
All images licensed from Adobe Stock.
Featured image: