Sunday, October 29, 2006

Energy Policy: Al Gore at New York University

Two events in the summer of 2006 fueled the interest towards the creation of this blog. The first was Israel bombing and destroying South Lebanon’s infrastructure. They blew up roads, bridges, homes, hospitals and schools, leaving thousands homeless, as they were unable to weed out their enemy Hezbollah. What I saw was another military advancement by the West in the Middle East. The confrontation looked like the makings of World War III as the U.S. and its allies choose blunt military force once again to deal with the ‘Islamist threat’. Thank goodness Israel withdrew their troops. Unfortunately when they left the Israeli’s had advanced their goal of pushing back ‘20 years of development’ of Lebanese society.

While the Republican Party was busy making war, Al Gore wrote a book called “An Inconvenient Truth” which was turned into a documentary. The film is organized around his slide presentation about global warming. After watching the film I couldn’t believe this issue wasn’t getting more play in our media. There is an urgency surrounding the issue and a moral imperative to act in curbing corporate domination of the commons. Back in August Bush was still grabbing positive headlines for his defense of the Bush Doctrine as it was being used by Israel in Lebanon and his ‘stay the course in Iraq’ speeches at stumping grounds through out the United States.

Now that Global Warming issues are getting more traction in our national discussion and the Republican Party is on the defense for its leadership, the time is ripe for Democrats to send a strong message to guide us into this new era of globalization. It is time to propose policy on how to address the crisis of Global Warming. It is important to provide incentive to the corporate culture while transforming our economy to be more efficient and sustainable. A new era of global leadership must be ushered in as old global domination policies need to be cast out.

Gore’s presentation is compelling. As my friend Robert said recently after we went to see Gore speak at the Rose Garden in Portland, Oregon, “I can’t believe there isn’t something on the front pages everyday about Global Warming. People are more worried about what they are paying in taxes. Huge ice sheets are falling into the ocean, let’s focus on this!”

Last month, at New York University, Vice President Gore articulated his policy that would change the tide against the growing problem of global warming, plus he includes within this agenda a way to decrease payroll taxes. I have created an edited version below which includes bold highlights to skim the overall structure of his proposal. A link to the entire address is at the end of the post.


Al Gore Gives Policy Address at NYU on Solving the Climate Crisis
September 18, 2006

“A few days ago, scientists announced alarming new evidence of the rapid melting of the perennial ice of the north polar cap, continuing a trend of the past several years that now confronts us with the prospect that human activities, if unchecked in the next decade, could destroy one of the earth’s principle mechanisms for cooling itself. Scientific American introduces the lead article in its special issue this month with the following sentence: “The debate on global warming is over.”

Many scientists are now warning that we are moving closer to several “tipping points” that could - within as little as 10 years - make it impossible for us to avoid irretrievable damage to the planet’s habitability for human civilization. In this regard, just a few weeks ago, another group of scientists reported on the unexpectedly rapid increases in the release of carbon and methane emissions from frozen tundra in Siberia, now beginning to thaw because of human caused increases in global temperature. The scientists tell us that the tundra in danger of thawing contains an amount of additional global warming pollution that is equal to the total amount that is already in the earth’s atmosphere. Similarly, earlier this year, yet another team of scientists reported that the previous twelve months saw 32 glacial earthquakes on Greenland between 4.6 and 5.1 on the Richter scale - a disturbing sign that a massive destabilization may now be underway deep within the second largest accumulation of ice on the planet, enough ice to raise sea level 20 feet worldwide if it broke up and slipped into the sea. Each passing day brings yet more evidence that we are now facing a planetary emergency - a climate crisis that demands immediate action to sharply reduce carbon dioxide emissions worldwide in order to turn down the earth’s thermostat and avert catastrophe.

The serious debate over the climate crisis has now moved on to the question of how we can craft emergency solutions in order to avoid this catastrophic damage.

This debate over solutions has been slow to start in earnest not only because some of our leaders still find it more convenient to deny the reality of the crisis, but also because the hard truth for the rest of us is that the maximum that seems politically feasible still falls far short of the minimum that would be effective in solving the crisis.

My purpose is not to present a comprehensive and detailed blueprint - for that is a task for our democracy as a whole - but rather to try to shine some light on a pathway through this terra incognita that lies between where we are and where we need to go. Because, if we acknowledge candidly that what we need to do is beyond the limits of our current political capacities, that really is just another way of saying that we have to urgently expand the limits of what is politically possible.

Two weeks ago, Democrats and Republicans joined together in our largest state, California, to pass legally binding sharp reductions in CO2 emissions. 295 American cities have now independently “ratified” and embraced CO2 reductions called for in the Kyoto Treaty. 85 conservative evangelical ministers publicly broke with the Bush-Cheney administration to call for bold action to solve the climate crisis. Business leaders in both political parties have taken significant steps to position their companies as leaders in this struggle and have adopted a policy that not only reduces CO2 but makes their companies zero carbon companies. Many of them have discovered a way to increase profits and productivity by eliminating their contributions to global warming pollution.

We have to insist on a higher level of honesty in America’s political dialogue.

Our children have a right to hold us to a higher standard when their future - indeed the future of all human civilization - is hanging in the balance. They deserve better than the spectacle of censorship of the best scientific evidence about the truth of our situation and harassment of honest scientists who are trying to warn us about the looming catastrophe.

We in the United States of America have a particularly important responsibility, after all, because the world still regards us - in spite of our recent moral lapses - as the natural leader of the community of nations. Simply put, in order for the world to respond urgently to the climate crisis, the United States must lead the way. No other nation can.

So, what would a responsible approach to the climate crisis look like if we had one in America?

1. We should start by immediately freezing CO2 emissions and then beginning sharp reductions. Merely engaging in high-minded debates about theoretical future reductions while continuing to steadily increase emissions represents a self-delusional and reckless approach. In some ways, that approach is worse than doing nothing at all, because it lulls the gullible into thinking that something is actually being done when in fact it is not.

2. A responsible approach to solving this crisis would also involve joining the rest of the global economy in playing by the rules of the world treaty that reduces global warming pollution by authorizing the trading of emissions within a global cap. At present, the global system for carbon emissions trading is embodied in the Kyoto Treaty. We should plan to accelerate its adoption and phase it in more quickly than is presently planned.

3. A responsible approach to solutions would avoid the mistake of trying to find a single magic “silver bullet” and recognize that the answer will involve what Bill McKibben has called “silver-buckshot” - numerous important solutions, all of which are hard, but no one of which is by itself the full answer for our problem.

One of the most productive approaches to the “multiple solutions” needed is a road-map designed by two Princeton professors, Rob Socolow and Steven Pacala, which breaks down the overall problem into more manageable parts. Socolow and Pacala have identified 15 or 20 building blocks (or “wedges”) that can be used to solve our problem effectively - even if we only use 7 or 8 of them. I am among the many who have found this approach useful as a way to structure a discussion of the choices before us.

There are already some solutions that seem to stand out as particularly promising:

A—Dramatic improvements in the efficiency with which we generate, transport and use energy will almost certainly prove to be the single biggest source of sharp reductions in global warming pollution. Many of the technologies on which we depend are actually so old that they are inherently far less efficient than newer technologies that we haven’t started using.

A i—One of the best examples is the internal combustion engine. When scientists calculate the energy content in BTUs of each gallon of gasoline used in a typical car, and then measure the amounts wasted in the car’s routine operation, they find that an incredible 90% of that energy is completely wasted.

A ii—Many older factories use obsolete processes that generate prodigious amounts of waste heat that actually has tremendous economic value. By redesigning their processes and capturing all of that waste, they can eliminate huge amounts of global warming pollution while saving billions of dollars at the same time.

When we introduce the right incentives for eliminating pollution and becoming more efficient, many businesses will begin to make greater use of computers and advanced monitoring systems to identify even more opportunities for savings.

B—We should develop a distributed electricity and liquid fuels distribution network that is less dependent on large coal-fired generating plants and vulnerable oil ports and refineries.

Small windmills and photovoltaic solar cells distributed widely throughout the electricity grid would sharply reduce CO2 emissions and at the same time increase our energy security. Likewise, widely dispersed ethanol and biodiesel production facilities would shift our transportation fuel stocks to renewable forms of energy while making us less dependent on and vulnerable to disruptions in the supply of expensive crude oil from the Persian Gulf, Venezuela and Nigeria, all of which are extremely unreliable sources upon which to base our future economic vitality. It would also make us less vulnerable to the impact of a category 5 hurricane hitting coastal refineries or to a terrorist attack on ports or key parts of our current energy infrastructure.

Just as a robust information economy was triggered by the introduction of the Internet, a dynamic new renewable energy economy can be stimulated by the development of an “electranet,” or smart grid, that allows individual homeowners and business-owners anywhere in America to use their own renewable sources of energy to sell electricity into the grid when they have a surplus and purchase it from the grid when they don’t. The same electranet could give homeowners and business-owners accurate and powerful tools with which to precisely measure how much energy they are using where and when, and identify opportunities for eliminating unnecessary costs and wasteful usage patterns.

C—We could further increase the value and efficiency of a distributed energy network by retooling our failing auto giants - GM and Ford - to require and assist them in switching to the manufacture of flex-fuel, plug-in, hybrid vehicles. The owners of such vehicles would have the ability to use electricity as a principle source of power and to supplement it by switching from gasoline to ethanol or biodiesel. This flexibility would give them incredible power in the marketplace for energy to push the entire system to much higher levels of efficiency and in the process sharply reduce global warming pollution.

It is, in other words, time for a national oil change. That is apparent to anyone who has looked at our national dipstick.

D—We should take bold steps to stop deforestation and extend the harvest cycle on timber to optimize the carbon sequestration that is most powerful and most efficient with older trees. On a worldwide basis, 2 and 1/2 trillion tons of the 10 trillion tons of CO2 emitted each year come from burning forests. So, better management of forests is one of the single most important strategies for solving the climate crisis.

E—Renewable energy
E1—Biomass
-whether in the form of trees, switchgrass, or other sources-is one of the most important forms of renewable energy. And renewable sources make up one of the most promising building blocks for reducing carbon pollution.

E2­—Wind energy is already fully competitive as a mainstream source of electricity and will continue to grow in prominence and profitability.

E3—Solar photovoltaic energy is-according to researchers-much closer than it has ever been to a cost competitive breakthrough, as new nanotechnologies are being applied to dramatically enhance the efficiency with which solar cells produce electricity from sunlight-and as clever new designs for concentrating solar energy are used with new approaches such as Stirling engines that can bring costs sharply down.

F—Buildings-both commercial and residential-represent a larger source of global warming pollution than cars and trucks. But new architecture and design techniques are creating dramatic new opportunities for huge savings in energy use and global warming pollution. As an example of their potential, the American Institute of Architecture and the National Conference of Mayors have endorsed the “2030 Challenge,” asking the global architecture and building community to immediately transform building design to require that all new buildings and developments be designed to use one half the fossil fuel energy they would typically consume for each building type, and that all new buildings be carbon neutral by 2030, using zero fossil fuels to operate.

The rapid urbanization of the world’s population is leading to the prospective development of more new urban buildings in the next 35 years than have been constructed in all previous human history. This startling trend represents a tremendous opportunity for sharp reductions in global warming pollution through the use of intelligent architecture and design and stringent standards.

Here in the US the extra cost of efficiency improvements such as thicker insulation and more efficient window coatings have traditionally been shunned by builders and homebuyers alike because they add to the initial purchase price-even though these investments typically pay for themselves by reducing heating and cooling costs and then produce additional savings each month for the lifetime of the building. It should be possible to remove the purchase price barrier for such improvements through the use of innovative mortgage finance instruments that eliminate any additional increase in the purchase price by capturing the future income from the expected savings. We should create a Carbon Neutral Mortgage Association to market these new financial instruments and stimulate their use in the private sector by utilities, banks and homebuilders. This new “Connie Mae” (CNMA) could be a valuable instrument for reducing the pollution from new buildings.

G—Arguments against Nuclear proliferation. Many believe that a responsible approach to sharply reducing global warming pollution would involve a significant increase in the use of nuclear power plants as a substitute for coal-fired generators. While I am not opposed to nuclear power and expect to see some modest increased use of nuclear reactors, I doubt that they will play a significant role in most countries as a new source of electricity.

The main reason for my skepticism about nuclear power playing a much larger role in the world’s energy future is not the problem of waste disposal or the danger of reactor operator error, or the vulnerability to terrorist attack. Let’s assume for the moment that all three of these problems can be solved. That still leaves two serious issues that are more difficult constraints. The first is economics; the current generation of reactors is expensive, take a long time to build, and only come in one size - extra large. In a time of great uncertainty over energy prices, utilities must count on great uncertainty in electricity demand - and that uncertainty causes them to strongly prefer smaller incremental additions to their generating capacity that are each less expensive and quicker to build than are large 1000 megawatt light water reactors. Newer, more scalable and affordable reactor designs may eventually become available, but not soon.

Secondly, if the world as a whole chose nuclear power as the option of choice to replace coal-fired generating plants, we would face a dramatic increase in the likelihood of nuclear weapons proliferation. During my 8 years in the White House, every nuclear weapons proliferation issue we dealt with was connected to a nuclear reactor program. Today, the dangerous weapons programs in both Iran and North Korea are linked to their civilian reactor programs. Moreover, proposals to separate the ownership of reactors from the ownership of the fuel supply process have met with stiff resistance from developing countries who want reactors. As a result of all these problems, I believe that nuclear reactors will only play a limited role.

H—Coal plus Carbon Capture and Sequestration (CCS)
The most important set of problems by that must be solved in charting solutions for the climate crisis have to do with coal, one of the dirtiest sources of energy that produces far more CO2 for each unit of energy output than oil or gas. Yet, coal is found in abundance in the United States, China, and many other places . Because the pollution from the burning of coal is currently excluded from the market calculations of what it costs, coal is presently the cheapest source of abundant energy. And its relative role is growing rapidly day by day.

Fortunately, there may be a way to capture the CO2 produced as coal as burned and sequester it safely to prevent it from adding to the climate crisis. It is not easy. This technique, known as carbon capture and sequestration (CCS) is expensive and most users of coal have resisted the investments necessary to use it. However, when the cost of not using it is calculated, it becomes obvious that CCS will play a significant and growing role as one of the major building blocks of a solution to the climate crisis.

Interestingly, the most advanced and environmentally responsible project for capturing and sequestering CO2 is in one of the most forbidding locations for energy production anywhere in the world - in the Norwegian portions of the North Sea. Norway, as it turns out, has hefty CO2 taxes; and, even though there are many exceptions and exemptions, oil production is not one of them. As a result, the oil producers have found it quite economical and profitable to develop and use advanced CCS technologies in order to avoid the tax they would otherwise pay for the CO2 they would otherwise emit. The use of similar techniques could be required for coal-fired generating plants, and can be used in combination with advanced approaches like integrated gasification combined cycle (IGCC). Even with the most advanced techniques, however, the economics of carbon capture and sequestration will depend upon the availability of and proximity to safe deep storage reservoirs. Nevertheless, it is time to recognize that the phrase “clean coal technology” is devoid of meaning unless it means “zero carbon emissions” technology.

I—CO2 tax and the elimination of all payroll taxes
Even without brand new technologies, we already have everything we need to get started on a solution to this crisis. In a market economy like ours, however, every one of the solutions that I have discussed will be more effective and much easier to implement if we place a price on the CO2 pollution that is recognized in the marketplace. We need to summon the courage to use the right tools for this job.

For the last fourteen years, I have advocated the elimination of all payroll taxes - including those for social security and unemployment compensation - and the replacement of that revenue in the form of pollution taxes - principally on CO2. The overall level of taxation would remain exactly the same. It would be, in other words, a revenue neutral tax swap. But, instead of discouraging businesses from hiring more employees, it would discourage business from producing more pollution.

Global warming pollution, indeed all pollution, is now described by economists as an “externality.” This absurd label means, in essence: we don’t to keep track of this stuff so let’s pretend it doesn’t exist.

And sure enough, when it’s not recognized in the marketplace, it does make it much easier for government, business, and all the rest of us to pretend that it doesn’t exist. But what we’re pretending doesn’t exist is the stuff that is destroying the habitability of the planet. We put 70 million tons of it into the atmosphere every 24 hours and the amount is increasing day by day. Penalizing pollution instead of penalizing employment will work to reduce that pollution.

When we place a more accurate value on the consequences of the choices we make, our choices get better. At present, when business has to pay more taxes in order to hire more people, it is discouraged from hiring more people. If we change that and discourage them from creating more pollution they will reduce their pollution. Our market economy can help us solve this problem if we send it the right signals and tell ourselves the truth about the economic impact of pollution.

This is not a political issue. This is a moral issue. It affects the survival of human civilization. It is not a question of left vs. right; it is a question of right vs. wrong. Put simply, it is wrong to destroy the habitability of our planet and ruin the prospects of every generation that follows ours. What is motivating millions of Americans to think differently about solutions to the climate crisis is the growing realization that this challenge is bringing us unprecedented opportunity. I have spoken before about the way the Chinese express the concept of crisis. They use two symbols, the first of which - by itself - means danger. The second, in isolation, means opportunity. Put them together, and you get “crisis.” Our single word conveys the danger but doesn’t always communicate the presence of opportunity in every crisis. In this case, the opportunity presented by the climate crisis is not only the opportunity for new and better jobs, new technologies, new opportunities for profit, and a higher quality of life. It gives us an opportunity to experience something that few generations ever have the privilege of knowing: a common moral purpose compelling enough to lift us above our limitations and motivate us to set aside some of the bickering to which we as human beings are naturally vulnerable.

http://www.nyu.edu/community/gore.html

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