Month: May 2017

Paris Agreement: Carbon Tax Elders Offer More Bad Advice

Paris Agreement: Carbon Tax Elders Offer More Bad Advice

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Guest essay by Marlo Lewis Jr. of the Competitive Enterprise Institute

They’re back! The same GOP elders who have been pushing what American Enterprise Institute economist Ben Zycher charitably calls “The Deeply Flawed Case for a Carbon Tax” are now urging President Trump to stay in the Paris Agreement.

Yesterday in the New York Times, former Reagan Secretary of State George P. Shultz and his Climate Leadership Council colleague Ted Halstead, who heads the organization, argue that staying in the pact will “spur new investment, strengthen American competitiveness, create jobs, ensure American access to global markets and help reduce future business risks associated with the changing climate” whereas exiting will “yield the opposite.”

Shultz and Halstead ignore the chief perils of remaining in the Paris Agreement:

  1. The Agreement is the legal framework for a permanent global campaign of political pressure and diplomatic blowback to “name and shame” leaders, like Trump, who dare to champion the American people’s freedom to develop the country’s vast energy resources.
  2. Remaining in the Agreement ensures that U.S. leaders will continually have to negotiate domestic energy policy with foreign governments, multilateral bureaucrats, and anti-growth advocacy groups—elites who do not put America’s interests first.
  3. If Trump is free to treat President Obama’s emission-reduction pledge—the U.S. “nationally determined contribution” (NDC)—as a retractable wish list rather than the official commitment it plainly is, the next progressive president will similarly be free to rescind Trump’s NDC and pick up where Obama left off. No revision of the U.S. NDC can secure the future of U.S. energy producers as well as exiting a pact designed to bankrupt them.
  4. Failing to repudiate a treaty adopted unilaterally, with the stroke of a presidential pen, without benefit of the Senate’s advice and consent, will set a dangerous precedent undermining one of the Constitution’s important checks and balances.

Shultz and Halstead write that, “Our companies are best served by a stable and predictable international framework that commits all nations to climate-change mitigation.” No so. Our companies are best served by an international framework that allows them to capitalize on comparative advantages. One of U.S. industry’s key advantages, so vital to the manufacturing renaissance on which Trump campaigned, is an abundance of affordable energy.

As Stephen Eule of the U.S. Chamber’s Institute for 21st Century Energy explains:

It is well understood that America’s abundance of affordable, reliable energy provides businesses a critical operating advantage in today’s intensely competitive global economy. IEA [International Energy Agency] data show a huge comparative energy advantage in natural gas, electricity, and coal prices for U.S. industry compared to its OECD competitors, with prices for these energy sources in the United States often two to four times less.

European Union environment minister Margot Wallström once said that the “Kyoto [Protocol] is about the economy, about leveling the playing field for big business around the world.” That goes in spades for the Paris Agreement. The only way to impose  high European energy prices on U.S. firms is to pressure U.S. leaders to adopt European energy policies.

Humorless scolds never consider that candidate Trump might have been twisting their tails when he tweeted that “The concept of global warming was invented by and for the Chinese in order to make U.S. manufacturing non-competitive.” Eule notes that the marginal cost of carbon dioxide emission reductions under China’s mostly business-as-usual NDC is $0 per ton whereas the marginal cost under the U.S. NDC is $85 per ton. What I find in Trump’s funny tweet is a serious point: Global warming is the rationale for the Paris Agreement, which would handicap U.S. manufacturers much more than it would China’s.

Shultz and Halsteed warn there will be “repercussions” and damage to America’s “reputation and credibility” if “America fails to honor a global agreement that it helped forge.” However, the exact same can be said if America fails to implement the NDC on the basis of which the Obama administration negotiated the Agreement, and which he subsequently submitted as the official U.S. commitment. The Paris Agreement expressly provides two options for withdrawing, but provides no option to “adjust” an NDC to make it less stringent. By what logic is the former less kosher than the latter?

Shultz and Hallstead would have us believe that Article 4.11, which states that a party “may” adjust its NDC “with a view to enhancing the level of ambition” also implies the party may adjust the NDC to do just the reverse. Huh?

That theory can’t be right, because it conflicts with the plain meaning of words like promise, pledge, and commitment. Try applying it to more mundane circumstances. Dad promises to pick up the kids after school. He fails to do so and they wait for hours in the freezing rain. Mom demands to know why he broke his promise. Dad retorts: “I did not break my promise, because I am now retracting it!”

Shultz and Halstead note that “Global statecraft relies on trust, reputation and credibility, which can be all too easily squandered.” No quarrel there. But that’s actually a reason to withdraw. President Obama had no business putting the trust, reputation, and credibility of the United States on the line without first vetting the Paris Agreement with the U.S. Senate. Submitting the Agreement to the Senate for its review would have spared everyone the present controversy, because the pact had no chance of being approved.

Article II, Section 2, clause 2 of the Constitution states:

He [the President] shall have Power, by and with the Advice and Consent of the Senate, to make Treaties, provided two thirds of the Senators present concur. . . .

The advice and consent process is a quality control filter. Especially as combined with the supermajority ratification requirement, Senate review ensures that no treaty will be adopted without broad-based political support. That discourages the executive from promising others more than the political composition of the country and statutory authorities actually allow him, or his successors, to deliver. The treaty process minimizes the risk that national interest concerns will impel one executive to upend international commitments made by his predecessor.

Shultz and Hallstead should be encouraging Trump to repudiate the dangerous precedent Obama set, not validate it. After all, how much confidence can other countries put in U.S. leaders if the latter cannot be trusted to follow their own Constitution’s rules of international engagement?

Shultz and Hallstead claim “the only risk Mr. Trump faces from altering or weakening domestic climate policy under Paris is in the court of public opinion, not in federal courts.” The court of public opinion, however, is what ultimately determines the direction of public policy. As long as we stay in, the Agreement will give “progressives” at home and abroad a high-profile global platform for lobbying U.S. policymakers and influencing public opinion.

It is naïve to suppose that legitimizing such an arrangement could not severely narrow the energy policy choices available to future administrations, Congresses, and voters. It is also naïve to assume the U.S. government can remain in a pact built on the narrative that governments must take urgent action to avert planetary disaster without inviting courts to step in when policymakers fail to deliver.

Shultz and Hallstead warn that “pulling out of the agreement could subject the United States to retaliatory trade measures, enabling other countries to leapfrog American industry.” But they just told us the only penalty for tearing up Obama’s NDC is bad PR. If pulling out exposes us to retaliatory carbon tariffs, why wouldn’t replacing Obama’s emission reduction pledge with a drill-baby-drill-style enthusiasm for new oil and gas exploration?

None of Shultz and Hallstead’s arguments for staying in make much sense. Until we get to the penultimate paragraph. Then we learn what they’re really after—a carbon tax:

If the president wants to strengthen America’s competitive position, he should combine a price on carbon with border tariffs or rebates based on carbon content. United States exports to countries without comparable carbon pricing systems would receive rebates, while imports from such countries would face tariffs on the carbon content of their products.

Far from viewing the Paris Agreement as a voluntary pact with no penalties for non-compliance, Shultz and Hallstead actually expect the Agreement to be enforced through a global regime of “border tariffs or rebates based on carbon content.” They want the United States to lead the world into a new era of retaliatory trade measures. History, however, suggests protectionism is harmful to world peace and prosperity. Also, how do they know U.S. firms would always or usually prevail in trade disputes, rewarded with rebates rather than penalized with tariffs?

Zycher points out how difficult it would be for the border tariff/rebate assessors to equilibrate carbon taxes with “regulations, or subsidies for such alternative energy sources as wind and solar power, or other policies that are purported to reduce [greenhouse gas] emissions.” Even more difficult is factoring in “the international supply chain phenomenon: Goods imported from a given nation are likely to embody components and other inputs from other nations—perhaps many other nations—in vastly differing proportions, and those nations’ policies on GHG emissions almost certainly will vary considerably.”

Sorting it all out—especially in anything approaching real time—would likely require “a new bureaucracy, or perhaps an expanded one at the Internal Revenue Service,” making highly technical decisions with “important implications” for  profits, shareholder value, and market share. Hardly a plan to make America great again.

Trump should be wary of taking advice about the Paris Agreement from carbon tax advocates, because their political judgment is terrible. The battle for hearts and minds in American politics is to no small extent a contest between a party that is pro-tax and anti-energy and a party that is anti-tax and pro-energy. That clear product differentiation is a political asset of enormous value to the GOP. Indeed, that sharp contrast was an important factor enabling Trump to defeat Hillary Clinton in the 2016 elections and the GOP to retain majorities in the House and Senate.

So now a group of GOP elders argues that Trump, despite promising to cut taxes and remove political impediments to domestic energy production, should impose a new tax on energy. Similarly, they argue that Trump, despite promising to “cancel” America’s participation in the Paris Agreement, should stay in. And all so that America can finally get the carbon tax the elders think is a brilliant idea.

Had Trump campaigned for the Paris Agreement and a carbon tax in 2016, would he still have defeated Hillary Clinton? Indeed, had he campaigned as Shultz and Hallstead now urge him to govern, would he even have won the GOP nomination?

Those are questions Trump and his advisors should consider carefully if he does not want to become a mere blip on the road to a carbon-constrained future rather the president who changed the direction of U.S. energy policy and made America great again.

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May 11, 2017 at 06:00AM

As the World Cuts Back on Coal, a Growing Appetite in Africa

As the World Cuts Back on Coal, a Growing Appetite in Africa

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By Paul Homewood

 

 

Two contrasting news items today:

 

image

New coal plants in Africa are largely being paid for by China and developed countries that are turning away from the technology at home. Here’s why.

 

Picture of a coal mine in Zimbabwe

A coal mine in Zimbabwe is one of the signs of activity for the fossil fuel in a developing Africa.

Lamu, Kenya

Few places in the world exude a sense of timelessness as Lamu, an island off of Kenya’s northern coast home to the oldest and best preserved Swahili settlement in East Africa. Lamu’s old town, a UNESCO World Heritage site and an epicenter of Indian Ocean trade for centuries, is a maze of narrow winding streets that cut through neighborhoods of limestone and coral houses, past elaborately carved mahogany doors and several dozen mosques and churches. Only a handful of motor vehicles are allowed on the island; transportation is mainly the domain of donkeys or men pushing wooden carts thorough the tropical swelter.

Yet Lamu Island’s 24,000 residents are faced with what many here call an existential crisis. Some 15 miles north of town, on a sparsely populated seaside area of the mainland formerly used for growing maize, cashews, and sesame, a Kenyan company known as Amu Power is preparing to erect a $2 billion coal power plant, the first of its kind in East Africa.

Financed with Chinese, South African, and Kenyan capital, and built by the state-owned Power Construction Corporation of China, the plant is intended to add 1,050 megawatts of capacity to Kenya’s national grid and power operations of an adjacent 32 berth deep-water port. Both are part of an ambitious government plan to transform Kenya into a newly industrializing, middle-income country by 2030.

The project is controversial in part due to the risks it poses to Lamu’s delicate marine environment, which many fear will harm its two most vital industries: fishing and tourism. Yet it is also emblematic of Africa’s growing appetite for coal, the most polluting form of power generation, which until now has existed in significant quantities only in the continent’s most industrialized country, South Africa.

According to data compiled by CoalSwarm, an industry watchdog, more than 100 coal-generating units with a combined capacity of 42.5 gigawatts are in various stages of planning or development in 11 African countries outside of South Africa—more than eight times the region’s existing coal capacity. Nearly all are fueled by foreign investment, and roughly half are being financed by the world’s largest coal emitter: China.

The International Energy Agency projects the region’s electricity demand to triple by 2040, with roughly half of new capacity coming from renewables. Yet coal-fired plants, which generate 41 percent of the world’s electricity today, remain attractive because coal is relatively cheap and their operation isn’t subject to the whims of nature—unlike solar, wind, or hydro.

In Kenya, for example, the country’s 800 megawatts of hydropower, one third of its total capacity, has become increasingly unreliable due to recurrent drought and is virtually inoperable at present, according to Richard Muiru, an advisor to Kenya’s Ministry of Energy and Petroleum. Although the country has extensive wind and geothermal resources, which it has started to exploit, these projects aren’t coming online fast enough, Muiru says, to keep up with Kenya’s projected demand.

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To put the numbers into perspective, the figure quoted for new build, 42.5GW, is effectively double the coal plant capacity that we had in the UK in 2011, before it started to be run down.

Africa’s embrace of coal is in part the result of its acute shortage of power. Although the continent’s economy has doubled in size since 2000, more than two thirds of residents south of the Sahara still live without electricity and most states lack the grid capacity to drive the expansion of job-creating industries.

Being from National Geographic, the article warbles on about how renewables are really the answer to Africa’s problems.

But the Kenyan Government, and those of other African nations, clearly realise that this is nonsense, and that only the sort of cheap, reliable power, which coal brings, is capable of lifting their economies out of the dark age.

 

 

Meanwhile, as GWPF report, Europe’s biggest solar company has just gone bust:

 

image

Germany’s SolarWorld, once Europe’s biggest solar power equipment group, said on Wednesday it would file for insolvency, overwhelmed by Chinese rivals who had long been a thorn in the side of founder and CEO Frank Asbeck, once known as “the Sun King”.

source: Bloomberg Markets, 11 May 2017

 

SolarWorld was one of the few German solar power companies to survive a major crisis at the turn of the decade, caused by a glut in production of panels that led prices to fall and peers to collapse, including Q-Cells, Solon and Conergy.

SolarWorld was forced to restructure and avoided insolvency thanks to a debt-for-equity swap and the support of Qatar, which took a 29 percent stake in the group four years ago through Qatar Solar S.P.C.

A renewed wave of cheap Chinese exports, caused by reduced ambitions in China to expand solar power generation, was too much to bear for the group, which made its last net profit in 2014.

“Due to the ongoing price erosion and the development of the business, the company no longer has a positive going concern prognosis, is therefore over-indebted and thus obliged to file for insolvency proceedings,” SolarWorld said in a statement on Wednesday.

Frankfurt-listed shares in the group last traded down 77 percent at 0.81 euros.

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Advocates of solar power claim that the cost of the technology has been plummeting in recent years. But much of this has been brought about by dumping of solar panels by China, something that is ultimately unsustainable.

Observant readers may notice the China connection in the two stories! As Trump has pointed out, China is only interested in how it can benefit economically from Western obsession with climate change.

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May 11, 2017 at 05:09AM

Matt Ridley: Wind power makes 0% of world energy

Matt Ridley: Wind power makes 0% of world energy

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It’s all in how you spin it. Supra-zoogle-watts of new wind power capacity was added last year. Wind and solar grew faster than fossil fuels. There are now 341,000 wind turbines around the world! Thus do Meaningless Big-Numbers flow.

Instead  Matt Ridley gets down to the small numbers that tell us what is going on: Wind Turbines are neither clean nor green.

The Spectator:  Here’s a quiz; no conferring. To the nearest whole number, what percentage of the world’s energy consumption was supplied by wind power in 2014, the last year for which there are reliable figures? Was it 20 per cent, 10 per cent or 5 per cent? None of the above: it was 0 per cent. That is to say, to the nearest whole number, there is still no wind power on Earth.

Key Renewable Trends IEA 2016

The only renewables superstars are those you never hear about — wood and hydro:

Their trick is to hide behind the statement that close to 14 per cent of the world’s energy is renewable, with the implication that this is wind and solar. In fact the vast majority — three quarters — is biomass (mainly […]

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May 11, 2017 at 04:50AM

Dr. Fred Singer on ‘Global Warming Surprises’

Dr. Fred Singer on ‘Global Warming Surprises’

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Temp data in dispute can reverse conclusions about human influence on climate.

Guest essay by Dr. Fred Singer

Exploring some of the intricacies of GW [Global Warming] science can lead to surprising results that have major consequences. In a recent invited talk at the Heartland Institute’s ICCC-12 [Twelfth International Conference on Climate Change], I investigated three important topics:

1. Inconsistencies in the surface temperature record.

2. Their explanation as artifacts arising from the misuse of data.

3. Thereby explaining the failure of IPCC to find credible evidence for anthropogenic global warming (AGW).

A misleading graph

In the iconic picture of the global surface temperature of the 20th century [fig 1, top] one can discern two warming intervals — in the initial decades (1910-42) and in the final decades, 1977 to 2000.

Fig 1 20th century temps; top—global; bottom– US

Although these two trends look similar, they are really  quite different:  the initial warming is genuine, but the later warming is not. What a surprise!  I wouldn’t exactly call it ‘fake,’ but it just does not exist; I try to demonstrate this difference as an artifact of the data-gathering process, by comparing with several independent data sets covering similar time intervals.

The later warming is contradicted by every available dataset, as follows:

**the surface record for the ‘lower 48’ [US] shows a much lower trend; [see fig 1, bottom]; presumably there is better control over the placement of weather-stations and their thermometers;

**the trend of global sea surface temp [SST] is much less; with 1995 temp values nearly equal to those of 1942 [acc to Gouretski and Kennedy, as published in Geophysical Research Letters in 2012];

** likewise, the trend of night-time marine air-temperatures [NMAT], measured with thermometers on ship decks, according to data from J Kennedy, Hadley Centre, UK

** atmospheric temperature trends are uniformly much lower and close to zero (during 1979-1997), whether measured with balloon-borne radiosondes or with microwave sounding units [MSU] aboard weather satellites [see fig 8 in ref 2].

**compatible data on solar activity that show nothing unusual happening. [Interestingly, the solar data had been assembled for a quite different purpose – namely, to disprove the connection between cosmic rays and climate change [see here fig 14 of ref 2], assuming that the late-century warming was real. In the absence of such warming, as I argue here, this attempted critique of the cosmic-ray –climate connection collapses.]

**proxy data also show near-zero trends, whether from tree rings or ice cores, as noted about 20 years ago [see fig 16 in ref 1 and figs 2 and 3 of ref 2; plus those that may have been withheld by Michael Mann]. [If you look carefully at Mann’s original 1998 paper in Nature or subsequent copies, you will note that his proxy temps cease suddenly in 1979 and are replaced by temps from thermometers from CRU-EAU, the Climate Research Unit of East Anglia University. This substitution not only supplies the ‘blade’ of Mann’s ‘hockey-stick’ but enables the claim of IPCC-AR3 [2001] that the 20th century was the warmest in the past 1000 years, surpassing even the high temps of the Medieval Warm Period. In Climategate e-mails this substitution was referred to as “Mike’s Nature trick. I can’t help wondering if Mann’ s original post-1979 proxy data showed warming at all; perhaps that has some bearing on why Mann has withheld these data; it could have killed the blade and spoiled the IPCC claim.]

On the other hand, the early warming [1910-40] is supported by many proxy data – including temps derived from tree rings, ice cores, etc; unfortunately, we could not find any temperature data of the upper troposphere. However, I bet they would have shown an amplified warming trend – a hot spot.

 

A Digression on Hotspot [HSp] and Hockeystick [HSt]

[Sorry about using these two technical terms.]

Hotspot’ refers to an enhanced temp trend in the tropical upper troposphere [UT]; it is produced by convection of latent energy through water vapor [WV] and is the dominant agent for heating the UT. In IPCC-AR2 [1996], BD Santer mistakenly identified the HSp as the fingerprint for GH [greenhouse] warming, which has led to much confusion in the technical literature, fostering the mistaken claim that the HSp owes its existence to tropospheric CO2. But according to textbooks, it is merely an amplification of any temp trend at the surface through the ‘moist’ atmospheric lapse rate. It surely existed during 1910-42 but we lack data to prove it. Virtual absence of the HSp during 1979-97 [see fig 8 of ref 2 ] implies a near-zero surface trend in that interval. This observation also disproves the AGW hypothesis of IPCC-AR2 [1996] that led to the Kyoto Protocol.

Mann’s construction of his hockeystick graph [often referred to as ‘Mike’s Nature trick’] was explained earlier [see above].

This recital of data should suffice to convince alarmists and climate skeptics alike that the late 20th-century global warming does not exist.  We should note, however, that both IPCC-AR4 [2007] and AR5 [2013] rely on such (non-existing) warming in trying to prove that its cause is anthropogenic.
Explaining the climate-trend artifact

Now we tackle, using newly available data, what may have caused the fictitious temperature trend in the latter decades of the 20th century:
We first look at Ocean data: as seen from fig 2, there was a great shift in the way Sea Surface Temperatures [SSTs] were measured

Fig 2 Sources of SST data: Note the drastic changes between 1980 and 2000 as global buoys increasingly replaced bucket sampling of SST – with also important geographic changes.

Data from floating buoys increased from zero to 60% between 1980 and 2000.  But such buoys are heated directly by the sun, as indicated in the cartoon of fig 3, showing a floating buoy in the solar-heated top layer and unheated engine inlet water in lower ocean layers; this combination leads to a spurious rise in SST when the data are mixed together.

Fig 3 Cartoon showing floating buoy in solar-heated layer and inlet for engine cooling water

In merging them, we must note that buoy data are global, while bucket and inlet temps are perforce confined to [mostly commercial] shipping routes. Nor do we know the ocean depths that buckets sample; inlet depths depend on ship type and degree of loading. Disentangling this mess requires data details that are not available. About all we can demonstrate is a distinct diurnal variation in the buoy temps.

The land data have problems of their own. During the same decades, quite independently, there was a severe reduction in ‘superfluous’ (mostly) rural stations [fig 12 in ref 2] — unless they were located at airports. As seen from fig 4, the number of stations decreased drastically in the 1990’s

Fig 4 Weather stations at airports [Source: NOAA data]

[fig12 of ref 2], but the number at airports declined less sharply, leading to a major rise in the fraction of reporting stations at airports [according to basic NOAA data]

This led to a huge increase, from 35% to 80%, in the fraction of airport weather stations — producing a spurious temperature increase from all the construction of runways and buildings — hard to calculate in detail.  About all we can claim is a general increase in air traffic, about 5% per year worldwide [see fig 19 in ref 1].

We have however MSU data for the lower atmosphere over both ocean and land; they show little difference; so we can assume that both land data and ocean data contribute about equally to the fictitious surface trend reported for 1977 to 1997.

The absence of such a warming trend removes all of IPCC’s evidence for AGW. Both IPCC-AR4 [2007] and IPCC-AR5 [2013] rely on the 1979-1997 warming trend to demonstrate anthropogenic global warming [see chapters on ‘Attribution’ in their respective final reports].

Obviously, if there is no warming trend, these demonstrations fail – and so do IPCC’s proofs for AGW.

******************************************************

Ref 1: Singer,S.F. Hot Talk, Cold Science. Independent Institute, Oakland, CA, 1997 and 1999.

Ref 2: Singer,S.F. Nature, Not Human Activity, Rules the Climate. Heartland Inst, Chicago, 2008 http://ift.tt/2qYn33C


S. Fred Singer is professor emeritus at the University of Virginia and a founding director of the Science & Environmental Policy Project; in 2014, after 25 years, he stepped down as president of SEPP.  His specialty is atmospheric and space physics.  An expert in remote sensing and satellites, he served as the founding director of the US Weather Satellite Service and, more recently, as vice chair of the US National Advisory Committee on Oceans & Atmosphere.  He is an elected Fellow of several scientific societies and a Senior Fellow of the Heartland Institute and the Independent Institute.  He co-authored the NY Times best-seller Unstoppable Global Warming: Every 1500 years.  In 2007, he founded and has chaired the NIPCC (Nongovernmental International Panel on Climate Change), which has released several scientific reports [See NIPCCreport.org].  For recent writings see http://ift.tt/MlpZPt and also Google Scholar.

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May 11, 2017 at 04:38AM