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Fossil Fuels Expert Roundtable: How Much Fossil Fuel Has to Stay in the Ground, and Where?

Invitation Only Research Event

17 March 2015 - 4:30pm to 6:00pm

Chatham House, London

Event participants

Christophe McGlade, Research Associate, UCL Institute for Sustainable Resources
Chair: Shane Tomlinson, Senior Research Fellow, Energy, Environment and Resources, Chatham House

 

It has long been argued that if we are to limit the effects of climate change, some fossil fuel reserves must stay in the ground. But how much of each fuel; and which locations must remain untapped? A new study, recently published in Nature finds that a third of oil reserves, half of gas reserves and over 80 per cent of current coal reserves globally should remain in the ground and not be used before 2050 if global warming is to stay below the 2°C threshold. The speaker will discuss the methods used to generate these estimates, the key findings of the paper, and the implications that they may have in this milestone year for addressing climate change. 

Attendance at this event is by invitation only.

Owen Grafham

Manager, Energy, Environment and Resources Programme
+44 (0)20 7957 5708




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Why wealthy countries must not drop nuclear energy: coal power, climate change and the fate of the global poor

12 March 2015 , Volume 91, Number 2

Reinhard Wolf




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Africa's Responses to Climate Change: Policies to Manage Threat and Create Opportunity

Research Event

23 September 2015 - 12:00pm to 1:30pm

Chatham House, London

Event participants

Dr Fatima Denton, Director, Special Initiatives Division, UN Economic Commission for Africa
Dr Chukwumerije Okereke, Associate Professor, University of Reading
Douglas Brew, Director External Affairs, Communications and Sustainable Living for Africa, Unilever
Chair: Bob Dewar, Associate Fellow, Africa Programme, Chatham House

African countries will be amongst the worst affected by climate change. High levels of poverty and underdevelopment combined with insufficient infrastructure exacerbate the already severe impact of global warming on resources, development and human security. In order to adapt to and mitigate the effects of climate change, Africa’s leaders need to implement more robust environmental policies, increase local human capacity and encourage renewable energy entrepreneurship. Within international fora, they must better coordinate their position as some of the smallest contributors to global warming.

Ahead of the upcoming UN conference on climate change in Paris, this discussion will examine the prospects for African countries to present a stronger collective voice within the international efforts against climate change, as well as the role that the international community and public and private partners can play in supporting local capacity and lower carbon economic growth.




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Trudeau Election Marks New Start for Canada

22 October 2015

Cleo Paskal

Associate Fellow, Energy, Environment and Resources Programme and Asia-Pacific Programme
Canada's partners are about to see a sea change in policy from the new Liberal government on a range of issues, especially relating to energy and the environment.

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Canadian Liberal Party leader Justin Trudeau arrives to give a press conference in Ottawa on 20 October 2015. Photo by Getty Images.

The Liberal Party likes to think of itself as ‘Canada’s natural governing party’. Though they have been out of power for 10 years, and newly elected prime minister Justin Trudeau is relatively inexperienced, the party has deep and old networks across the country. The backroom is full of experienced old hands, including former prime ministers who have known Trudeau since he was a toddler. With a number of bold shifts promised in Canadian foreign policy, and a willingness to be fiscally expansive (Trudeau has said he is willing to run deficits for three years to implement their policies), the change is likely to be dramatic, fast and unrelenting.

International engagement

The Liberals’ proposed new Canada has a hint of nostalgia for a time when Canadians thought of themselves as a force for good in the world. There is likely to be a large-scale reengagement with the international community, especially the United Nations, not only on climate policy, but also peacekeeping and disaster response. Canada’s French-speaking experts make it well placed to engage in crisis-hit French-speaking countries while carrying somewhat less colonial baggage. Meanwhile, the Liberals have promised to withdraw Canadian forces from the combat mission against ISIS in Iraq, pledging instead to reorient their focus towards aid.

Science-based policies

Trudeau has the backing of a very deep bench of experienced parliamentarians, some of whom have been waiting a long time to get back in the governing game. They include Stéphane Dion, the former environment minister who gained respect for his chairing of the 2005 UN climate change conference in Montreal, and Marc Garneau, former astronaut and president of the Canadian Space Agency. This will be a government that understands and values (and has promised to restore funding for) scientific research.

This means more investment in climate resilience, renewables and other forward planning policies, but also a reexamination of some of Canada’s long-standing strengths, including Canada’s fisheries. Under the previous government, over half-a-dozen critical fisheries research libraries were shut down, in some cases with large-scale loss of data. A more science-based fisheries policy, combined with the promised funding to the Royal Canadian Navy, may result in a reinvigorated and coordinated Canadian fisheries policy. This would become particularly important in a time of global food constraints.

‘Nation-to-nation’

Trudeau’s stated goal of establishing ‘nation-to-nation’ relations with Canada’s indigenous peoples has potentially global implications.

Through treaties, Canada’s First Nations can stake a claim to about a third of Canada’s landmass, including resource rich areas. They own or control access to land that contains oil, gas, uranium, gold, diamonds and much more. China, for one, realized the potential power of First Nations as far back as 2008, when Beijing invited over two dozen indigenous leaders to China to talk business. During that trip, Peguis Chief Glenn Hudson explained that the trip was ‘an important step for us in moving forward. Our future is not only in Canada, but partnering with other countries.’

Trudeau’s ‘nation-to-nation’ statement acknowledges the strengthening role of First Nations in Canada’s resource policy. Indigenous communities have been among the most adversely affected by oil sands development and, in other parts of Canada, have successfully blocked resources extraction or transit. For example, in May, the Lax Kw'alaams Band refused to allow a proposed multi-million dollar Petronas LNG project to be developed on their land over concerns it would affect their economically and culturally important salmon runs.

Real First Nations engagement with resource management has the potential substantially change Canada’s energy, environment and resources profile. First Nations in eastern Canada have already blocked hydro development that could power much of the northeastern United States and, in a time of pipeline expansion, First Nations might become instrumental in deciding if more pipelines will run north-to-south, towards the border with the United States, or east-to-west, towards the Pacific and the markets in Asia.

Energy sector

At the same time, while Trudeau said he was against the Northern Gateway pipeline, in large part because of how it would affect the people of the Pacific coast, he backed Keystone XL. However, he is unlikely to push for it in the face of a veto by President Obama. Also, low fossil fuel prices contributed to the election in May of a left-leaning provincial government in the badly hit oil heartland of Alberta. If prices stay low, that could very well combine with Liberal campaign promises to put a coordinated national price on carbon and to phase out fossil fuel subsidies, additionally reshaping Canada’s energy landscape..

Agriculture and the Trans-Pacific Partnership

The Liberals also have a stated goal of investing in a more innovative and safe agricultural sector, while defending the interests of Canadian farmers. This dovetails with their promise to openly examine and discuss the Trans-Pacific Partnership (TPP) before ratification. Canadian dairy farmers in particular were concerned about some of the TPP provisions but, without access to the details of the text, it was difficult to estimate how the sector would be affected.

One proposed agricultural policy that may have widespread economic implications is the legalization, regulation and taxation of marijuana. As some states in the United States have found, this has the potential to be economically beneficial and, for Canada, a possible major boon to cross-border tourism.

In a myriad of small ways, and a few big ones, the new Liberal government plans to change Canada’s international role and domestic landscape. This is one to watch.

To comment on this article, please contact Chatham House Feedback 




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Implications of climate change for the UN Security Council: mapping the range of potential policy responses

6 November 2015 , Volume 91, Number 6

 

 

Shirley V. Scott




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A Good Deal? Assessing the Paris Climate Agreement

Invitation Only Research Event

16 December 2015 - 5:00pm to 6:30pm

Chatham House, London

Event participants

Shane Tomlinson, Senior Research Fellow, Energy, Environment and Resources Department, Chatham House

Following the conclusion of the Paris climate negotiations, this expert roundtable will examine the critical elements of the final agreement and what this means for the future of energy and climate policy in key countries.

The discussion will examine what the agreement means for keeping global average temperatures below two degrees Celsius and assess whether ambition will be ratcheted over time. It will also look at the primary implications of the outcome for key regions and countries such as the EU, United States, China and India. Finally, the session will also consider the next steps in terms of implementing the agreement. 

Attendance at this event is by invitation only. 

Owen Grafham

Manager, Energy, Environment and Resources Programme
+44 (0)20 7957 5708




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Europe’s Energy Union: Foreign Policy Implications for Energy Security, Climate and Competitiveness

31 March 2016

By addressing structural divisions between member states, the Energy Union could have a beneficial effect on the EU’s capacity to conduct a unified and effective foreign policy, write Thomas Raines and Shane Tomlinson.

Thomas Raines

Director, Europe Programme

Shane Tomlinson

Former Senior Research Fellow, Energy, Environment and Resources, Chatham House

2016-03-31-europe-energy-union.jpg

True colour satellite image of Europe at night. Photo via Getty Images.

Summary

  • Plans for an EU-wide Energy Union are taking shape, following the European Commission’s adoption in February 2015 of a ‘Framework Strategy for a Resilient Energy Union with a Forward-Looking Climate Change Policy’. The strategy underlines the EU’s ambition to attain ‘secure, sustainable, competitive, affordable energy for every European’.
  • The initiative seeks to transform energy markets and energy/climate policy across the EU. Its goals include cross-border coordination and integration in energy security, supply, market operations, regulation, energy efficiency, low-carbon development, and research and innovation.
  • There is an important foreign policy aspect to the Energy Union, given the imperative of managing security and supply risks in Europe’s neighbourhood and further afield. By addressing structural divisions between member states, the Energy Union could have a marked beneficial effect on the EU’s capacity to conduct a unified and effective foreign policy.
  • Development of the Energy Union presents abundant challenges, however. Policy and legislative changes will need to be coordinated across 28 countries. Variations in EU member states’ attitudes to security and energy policy may lead to differences in, or clashes between, priorities. The wider context is also complicated. Interrelated challenges rooted in broader policy issues include the partial transition to low-carbon energy, and concerns over competitiveness relative to other major economies.
  • The current EU approach to energy security and infrastructure focuses on natural gas. This ‘gas first’ approach risks crowding out other responses to the energy security challenge. It could result in the creation of ‘stranded assets’, if the future gas demand on which investments are predicated does not match projections. A narrow focus on new gas infrastructure could also impede development of other dimensions of the Energy Union.
  • The markets for coal, oil, gas and renewables are changing significantly. The shale oil and gas ‘revolution’ in the United States has altered the economics of hydrocarbon fuels, and the plunge in oil prices since mid-2014 is causing energy businesses in the EU to reassess investment plans.
  • The EU is rapidly expanding the use of renewable energy. Dramatically falling prices for renewables will challenge traditional energy utility business models. How the Energy Union enables market access for new business models will be key to determining future energy trajectories.




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Post-Paris: Taking Forward the Global Climate Change Deal

21 April 2016

Inevitably, the compromises of the Paris Agreement make it both a huge achievement and an imperfect solution to the problem of global climate change.

Rob Bailey

Former Research Director, Energy, Environment and Resources
Shane Tomlinson
Former Senior Research Fellow, Energy, Environment and Resources

2016-04-21-post-paris.jpg

The slogan '1.5 Degrees' is projected on the Eiffel Tower as part of the World Climate Change Conference 2015 (COP21) on 11 December 2015 in Paris, France. Photo by Getty Images.

Summary

  • The Paris Agreement, reached at COP21, was a triumph of diplomacy. The deal can be characterized as: flexible, combining a ‘hard’ legal shell and a ‘soft’ enforcement mechanism; inclusive, as it was adopted by all 196 parties to the UNFCCC and is therefore the first truly global climate deal; messy, as the bottom-up process of creating nationally determined contributions means the system is unstandardized; non-additive, as the contributions do not currently deliver the agreement’s stated long-term goal of keeping the rise in global average temperature to ‘well below 2˚C’; and dynamic, as the deal establishes a ratchet mechanism that requires more ambitious contributions every five years.
  • The next five years are critical for keeping the below 2˚C goal within reach. A ‘facilitative dialogue’ starting in 2018 will give states the opportunity to revisit their contributions in advance of the agreement entering into force in 2020. International forums, such as the G7 and G20, can play a crucial role in kickstarting these efforts.
  • The ‘coalitions of the willing’ and clubs that were launched under the Lima-Paris Action Agenda provide an innovative space for state and non-state actors to unlock transformational change. However, it is important that these groups set specific and measurable targets to ensure effective delivery of objectives.
  • The post-Paris regime implies a significant role for civil society organizations. However, in many countries the ‘safe operating space’ both for these organizations and for the media is shrinking. Expanding the capacity of civil society and the media in areas such as communications, litigation, project implementation and technical expertise will be important if they are to support the regime effectively.




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UK Unplugged? The Impacts of Brexit on Energy and Climate Policy

26 May 2016

In the field of energy and climate change policy, remaining in the EU offers the best balance of policy options for Britain’s national interests.

Antony Froggatt

Senior Research Fellow, Energy, Environment and Resources Programme

Thomas Raines

Director, Europe Programme

Shane Tomlinson

Senior Associate, E3G; Former Senior Research Fellow, Chatham House

2016-05-26-uk-unplugged-brexit-energy.jpg

A line of electricity pylons stretches beyond fields of rapeseed near Hutton Rudby, North Yorkshire, on 27 April 2015. Photo: Getty Images.

Summary

  • Over the last 30 years the EU has played a central role in addressing the competitiveness, security and climate dimensions of energy policy among its member states. The UK has been critical in driving forward integration of the European energy market, and has been a strong advocate of liberalized energy markets and some climate change mitigation policies.
  • If, at the June 2016 referendum, the UK does vote to leave the EU, energy and climate policy will be part of the overall package of issues to be negotiated, as it is unlikely that each sector will be treated separately. The model of relations for energy and climate may well be determined by political and public sentiment on higher-profile issues such as freedom of movement, rather than by what is best for the UK in these policy areas.
  • The UK is increasingly reliant on imports, including from and through continental Europe, and its energy market is deeply integrated with that of its European neighbours. As a growing share of the UK’s electricity is exchanged with EU partners, it would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks. A degree of continued adherence to EU market, environmental and governance rules would be inevitable.
  • This paper reviews the risks and trade-offs associated with five possible options for a post-exit relationship. Of these, the Norway or the Energy Community models would be the least disruptive, enabling continuity in energy market access, regulatory frameworks and investment; however, both would come at the cost of accepting the vast majority of legislation while relinquishing any say in its creation. The UK would thus have less, rather than more, sovereignty over energy policy.
  • The Switzerland, the Canada and the WTO models offer the possibility of greater sovereignty in a number of areas, such as buildings and infrastructure standards as well as state aid. None the less, each would entail higher risks, with greater uncertainty over market access, investment and electricity prices. These models would reduce or even eliminate the UK’s contribution to the EU budget, but would also limit or cut off access to EU funding mechanisms.
  • All five Brexit models would undermine the UK’s influence in international energy and climate diplomacy. The UK would no longer play any direct role in shaping the climate and energy policies of its EU neighbours, at a time when the EU’s proposed Energy Union initiatives offer the prospect of a more integrated and effective European energy sector. A decision to leave the EU would make it easier for a future UK government to change direction on climate policy, since only a change in domestic legislation would be required.
  • ‘Brexit’ could affect the balance of energy policy among the remaining member states. In its absence, the centre of gravity for EU energy policy might shift away from market mechanisms and result in weaker collective action on greenhouse gas reduction targets.
  • In the field of energy and climate change policy, remaining in the EU offers the best balance of policy options for Britain’s national interests: the UK would continue to benefit from the integrated energy market, while maintaining influence over its direction and minimizing uncertainty for crucial investment.




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The UK's Decision to Leave the EU: What Next for UK Energy and Climate?

Invitation Only Research Event

12 July 2016 - 3:00pm to 6:30pm

Chatham House, London

In May 2016, Chatham House published a research paper that assessed the options for the UK’s climate and energy policy in the event of a British vote to leave the EU. It determined that:

  • The UK’s energy market is deeply integrated with that of its European neighbours and that it would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks. A degree of continued adherence to EU market regulations, energy efficiency standards of appliances, environmental and governance rules would be inevitable. 
  • The EU’s collective negotiation on international climate issues has given the UK greater political weight than any member state has alone.
  • The EU’s coordinated approach in engaging with major fossil fuel producers such as Russia and countries in the Middle East has helped support price stability and security of supply, including through infrastructure investment to make existing pipeline systems more efficient and improve storage and capacity.   

In light of the decision to leave, Chatham House is hosting a roundtable to reassess the options for a future UK-EU energy and climate change partnership. The meeting will bring together those experienced on UK and EU policy in both climate change and energy and explore the short and medium-term climate and energy policy considerations. 

Attendance at this event is by invitation only.

Owen Grafham

Manager, Energy, Environment and Resources Programme
+44 (0)20 7957 5708




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Accelerating Innovation for a Circular Economy

Invitation Only Research Event

12 July 2016 - 9:30am to 5:30pm

Chatham House, London

Over the next two decades, a combination of ‘circular economy’ approaches and distributed manufacturing methods such as 3D printing raise the prospect of fundamental changes to the nature of production, the reconfiguration of supply chains and changes to patterns of resource consumption – with profound implications for sustainability. This roundtable will bring together expert participants from companies, government, civil society and academia to discuss the state of innovation in the ‘circular economy,’ with a particular focus on the approaches and activities of entrepreneurs and investors, what is needed to scale up and accelerate innovation, how to track and measure progress, and how to ensure that innovation in the ‘circular economy’ makes a significant contribution to the meeting of short and medium term climate and sustainability goals.

Attendance at this event is by invitation only. 

Johanna Lehne

Research Associate, Energy, Environment and Resources
+44 (0)20 7314 3629




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Security and Climate Change: Are we Living in 'The Age of Consequences'?

Research Event

1 December 2016 - 7:00pm to 9:00pm

Chatham House, London

Event participants

Brigadier General Stephen A. Cheney, CEO, American Security Project; Member, Foreign Affairs Policy Board, US Department of State
Major General Munir Muniruzzaman, President and CEO, Bangladesh Institute of Peace and Security Studies; Former Military Advisor to the President of Bangladesh 
Rear Admiral Neil Morisetti, Director of Strategy, UK Department of Science, Technology, Engineering and Public Policy; University College London; Former UK Government Climate and Energy Security Envoy
Dr Patricia Lewis, Research Director, International Security, Chatham House
Chair: Rt Hon Sir Oliver Letwin MP, Former UK Cabinet Office Minister

The US Department of Defense regards climate change as an ‘accelerant of instability and conflict’. A former head of the US Pacific Command described it as the most significant long-term security threat in his region. US federal agencies have recently been mandated to fully consider the impacts of climate change in the development of national security policy. This step-change in the US approach reflects the Pentagon’s conclusion that climate impacts are a ‘threat multiplier’ for security concerns – not just for the future – but which pose ‘an immediate risk to national security’.

A new documentary from the US, The Age of Consequences, explores the links between climate change and security, including in current events in Syria, Egypt, the Sahel and Bangladesh. Our high-level panel will reflect on key sections from the documentary, which will be screened during the event, and explore whether security strategists, militaries and policy-makers in nations other than the US are fully cognisant of the risks posed by a changing climate, and whether they are ready to anticipate and respond to its potentially destabilizing effects.

The panel discussion will be followed by a Q&A.

THIS EVENT IS NOW FULL AND REGISTRATION HAS CLOSED.




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The Climate vs. Donald Trump

19 November 2016

Rob Bailey

Former Research Director, Energy, Environment and Resources
All countries stand to lose if the US backslides on climate change, most of all the US.

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Outside the COP22 Climate Change Conference in Marrakech. Photo by Getty Images.

On 7 November, as governments reconvened in Marrakech for the first major round of climate talks since the momentous Paris summit, they had the wind in their sails. The sense of momentum that had built in the run-up to Paris had continued, with recent global deals to phase out HFCs (potent greenhouse gases used in refrigeration and air conditioning) and tackle emissions from aviation. However, by the morning of 9 November the mood changed to one of unease and trepidation, as news of Donald Trump’s US election victory sunk in. Only days after entering into force, the Paris Agreement was faced with the possibility of the world’s second largest emitter, and a key dealmaker and architect of the regime, withdrawing.

Although details of Trump’s positions on climate and energy policy are scarce, his statements on the campaign trail appear to signal a marked departure from the Obama administration’s approach. The president-elect has said he would ‘cancel’ the Paris Agreement and ‘rescind’ the Climate Action Plan which underpins US action to reduce emissions. On the basis of these statements, it is hard to view the election result as anything other than a major setback for the climate. The new international climate regime now faces a very early and very big test.

Paris’s first test

The response from governments has been swift. Statement after statement emphasized a clear and consistent message: countries remain committed to the Paris Agreement and to delivering their emissions reductions. While there is hope that the US will remain a part, the message was that the process will continue regardless. Importantly, there have as yet been no indications that recusant parties to the agreement might use a US withdrawal as cover to do the same.

This display of unity is arguably Marrakech’s defining success. Progress in talks to flesh out the so-called ‘rulebook’ for how the Paris Agreement will operate come 2020 was modest in some areas and disappointing in others; on finance, the perennial tensions between developed and developing countries were as clear as ever. But when the time came to uphold the nascent regime in the face of a threat, powerful international norms on climate action meant there were no divisions.

Two important questions

The prospect of US disengagement from the international regime, whether de jure or de facto, raises two important questions: one for the US and another for the rest of the world.

For the international community, the question is one of leadership. In the run-up to Paris, the US and China together set expectations for a global agreement, signalling their intent through a series of joint announcements that set the bar for ambition and carried other countries with them. Progressive countries hoped this partnership would re-emerge in 2018, when talks begin on closing the gap between national emission reduction plans and what is needed to achieve the Paris goal of containing warming ‘well below’ 2°C. A wholesale step change in ambition is required if the 2°C goal is to remain within reach, requiring intense climate diplomacy of the kind witnessed before Paris. Will China be prepared to unilaterally set the pace and raise ambition first? Will a new partner come forward, or new coalition emerge, to fill the vacuum left by the US and work alongside China to provide leadership?

The US faces a question of national interest. With the rest of the world apparently united on climate change, what costs might the US incur were it to withdraw from the global regime? To fly in the face of strong international norms on climate action would certainly erode American soft power and concede global status to China, which continues to signal its ambition to decarbonize. And with the US expected to take a more protectionist approach to trade, it is possible that other countries, frustrated at US free-riding on the emissions reductions of others, might impose tariffs on American imports to adjust for the lower emissions costs of US exporters. Nor will American prosperity be served by the US economy remaining shackled to fossil fuels while the rest of the world’s economy transitions away from them. All countries stand to lose if the US backslides on climate change, most of all the US.

To comment on this article, please contact Chatham House Feedback




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The Impacts of the Demand for Woody Biomass for Power and Heat on Climate and Forests

23 February 2017

Although most renewable energy policy frameworks treat biomass as carbon-neutral at the point of combustion, biomass emits more carbon per unit of energy than most fossil fuels. 

Duncan Brack

Associate Fellow, Energy, Environment and Resources Programme

2017-02-15-woody-biomass-climate-forests-brack.jpg

Fuel composed of wood chips to be used for the UEM (Usine d’Electricité de Metz) biomass plant in Metz, eastern France. Photo: Getty Images.

Summary

  • The use of wood for electricity generation and heat in modern (non-traditional) technologies has grown rapidly in recent years, and has the potential to continue to do so.
  • The EU has been, and remains, the main global source of demand, as a result of its targets for renewable energy. This demand is largely met by its own forest resources and supplemented by imports from the US, Canada and Russia.
  • Countries outside the EU, including the US, China, Japan and South Korea, have the potential to increase the use of biomass (including agricultural residues as well as wood), but so far this has not taken place at scale, partly because of the falling costs of competing renewables such as solar PV and wind. However, the role of biomass as a system balancer, and its supposed ability, in combination with carbon capture and storage technology, to generate negative emissions, seem likely to keep it in contention in the future.
  • Although most renewable energy policy frameworks treat biomass as though it is carbon-neutral at the point of combustion, in reality this cannot be assumed, as biomass emits more carbon per unit of energy than most fossil fuels. Only residues that would otherwise have been burnt as waste or would have been left in the forest and decayed rapidly can be considered to be carbon-neutral over the short to medium term.
  • One reason for the perception of biomass as carbon-neutral is the fact that, under IPCC greenhouse gas accounting rules, its associated emissions are recorded in the land use rather than the energy sector. However, the different ways in which land use emissions are accounted for means that a proportion of the emissions from biomass may never be accounted for.
  • In principle, sustainability criteria can ensure that only biomass with the lowest impact on the climate are used; the current criteria in use in some EU member states and under development in the EU, however, do not achieve this as they do not account for changes in forest carbon stock.

Also see Woody Biomass for Power and Heat: Impacts on the Global Climate, which assesses the impact of the use of biomass for energy on greenhouse gas emissions, how these are accounted for under international climate accounting rules, and analyses the sustainability criteria currently in use and under development to minimise negative impacts.




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Wood Is Not a Carbon-Neutral Energy Source

1 March 2017

Duncan Brack

Associate Fellow, Energy, Environment and Resources Programme
Treating it as such – and supporting it with subsidies, as the UK and many other EU member states do – is a flawed path to climate action.

2017-02-15-woody-biomass-climate-forests-brack.jpg

Fuel composed of wood chips to be used for the UEM (Usine d’Electricité de Metz) biomass plant in Metz, eastern France. Photo: Getty Images.

Chatham House’s recent paper, Woody Biomass for Power and Heat: Impacts on the Global Climate, highlights how the use of wood for electricity generation and heat in modern (non-traditional) technologies has grown rapidly in recent years, and has the potential to continue to do so. EU member states’ national targets for renewable energy generation agreed in 2009 have helped ensure that the EU is now the world’s largest producer and consumer of wood for energy. And although other member states use wood more extensively for heat, the UK is the EU’s largest user for electricity generation, mostly sourced from the US and Canada.

Wood for energy often has a positive image: a natural product of growing forests. The biomass energy industry, which has grown rapidly on the back of government subsidies, likes to contrast it with dirty coal or oil. They point to the government’s sustainability criteria, which notionally guarantee a reduction of at least 60 per cent in greenhouse gas emissions compared to the fossil fuels the biomass replaces.

The problem with this happy picture, however, is that in fact biomass, when burnt, emits more carbon per unit of energy than most fossil fuels. The exact amount varies with the type of biomass and the type and age of the power plant, but figures from the Drax power station, Europe’s largest consumer of wood pellets, show that in 2013 it emitted about 13 per cent more carbon dioxide per unit of energy generated from biomass than from coal.

How is this consistent with meeting the government’s requirement for a 60 per cent reduction in emissions? Only by completely ignoring the carbon emitted when the wood is burnt; the sustainability criteria measure only supply-chain emissions from harvesting, processing and transporting the wood. (Direct land-use change – for example, clearance of the forest for agriculture or urban development – also falls outside the criteria, but biomass for energy generally originates from existing forests.)

This treatment of combustion emissions as zero – and thus, the awarding to wood the same kind of financial and regulatory support as other renewables such as solar PV and wind – is justified on the basis that the carbon contained in woody biomass is part of the natural forest cycle. The carbon released during combustion was absorbed by forest growth in the past and will be reabsorbed by forest growth in the future; in contrast, fossil fuels originate outside this cycle and their combustion adds carbon to the atmosphere.

But this argument rests on a basic fallacy. Carbon is carbon, wherever it comes from, and if you burn wood for energy, you increase carbon dioxide concentrations in the atmosphere (by more than if you had used fossil fuels), and thereby contribute to climate change. The fact that the carbon emitted was absorbed by growing trees in the past is simply irrelevant. After all, when it’s harvested you don’t have to burn it; you could use it for construction or furniture or window frames or a host of other uses, fixing the carbon in wood products rather than emitting it to the atmosphere.

Climate impacts

It is true that continued forest growth will absorb carbon in the future, but the process is a long one, taking decades or even centuries if whole trees are harvested and burnt. Replacing large mature trees, with plentiful leaf cover absorbing large volumes of carbon dioxide, with small young ones mean that the rate of carbon uptake will be far lower for years. On top of that, the impact of harvesting itself releases soil carbon into the atmosphere, further accelerating climate change.

The impact on the climate of using sawmill or forest residues for energy rather than whole trees is undoubtedly lower, since these tend to be wastes from other industries which harvest trees for their own purposes, and do not imply any additional harvesting. Sawmill wastes which, if left to themselves, would rot and release their stored carbon into the atmosphere in a matter of months or years, are in many ways the ideal feedstock; it makes sense to use them for energy rather than leave them to decay. However, mill residues are already intensively used and there seems little room for expansion; a survey in the US in 2011 found that over 99 per cent of mill residues were already used, mainly for energy and wood products such as particleboard.

Forest residues are the parts of harvested trees that are left in the forest after log products have been removed, including stumps, tops and small branches, and pieces too short or defective to be used; these can amount to as much as 40–60 per cent of the total tree volume. Their impact on the climate if used for energy varies significantly. While the smallest pieces tend to rot and release their stored carbon into the atmosphere quite quickly, if left in the forest, they are generally not suitable for use for energy, as they contain too much dirt and ash to be burnt cleanly. Larger pieces are more suitable but take much longer to decay; burning them for energy instead of leaving them in the forest thereby increases carbon concentrations in the atmosphere for years or decades. And on top of that, a portion of the carbon and other substances contained in the residues is transferred to the soil as they decay; their removal from the forest for energy may reduce both soil carbon and the levels of the nutrients trees need to grow, again with negative impacts on the climate.

The biomass industry generally likes to claim that it uses mainly mill and forest residues, though on closer inspection the categories they report often contain whole trees, perhaps classified as ‘unmerchantable’ or similar. (This is not helped by the fact the categories used by Ofgem, for example, to whom UK biomass users have to report, are confusing and potentially overlapping.) Several independent studies, however, have concluded that the use of mill and forest residues is in reality substantially lower; pellet plants in the US – the UK’s main source of supply – in fact source about 75 per cent whole trees.

Setting aside these arguments about feedstock, however, can it be safely assumed that future forest growth allows us to treat biomass as carbon-neutral? If the trees would have grown anyway, even in the absence of the biomass energy industry, it cannot be assumed that their future absorption of carbon cancels out the carbon emitted when wood is burnt. If the rate of carbon absorption in forests remains the same whether or not some of the harvested wood is burnt, then clearly, the best outcome for the climate in the short and probably medium term is not to burn it, but to use it for wood products or leave it to decay slowly in the forest. This is not an academic argument: the current global rate of emissions of greenhouse gases is incompatible with the aims of the Paris Agreement and may risk triggering irreversible tipping points in the Earth’s climate system. We need to reduce carbon emissions now, not in several decades’ or centuries’ time.

The biomass industry likes to point to the expansion of US forests in recent decades to show that forests overall have been absorbing more carbon even while increasing volumes are burnt for energy – sometimes implying that this forest growth has been encouraged by the demand for energy. But in fact US forest expansion started in the 1950s, decades before European subsidies stimulated the expansion of the modern biomass industry. And there is little evidence of recent overall forest growth in the US southeast, the location of almost all the pellet plants supplying European demand. In any case, the point is not whether US (or European) forests are expanding, but whether they would have grown at a different rate if part of their wood had not been burnt for energy. If they would have grown at the same rate, or faster, in the absence of biomass energy use then it cannot be assumed that using wood for biomass is good for forests, or the climate.

Redirecting public money

There is no question that renewable energy policy and forest policy both have a critical role to play in the mitigation of climate change. But governments have limited resources to deploy in their support, which is why the Chatham House paper questions whether it is really a good use of public money to subsidise activities which release stored forest carbon into the atmosphere, thereby increasing carbon emissions and accelerating climate change.

I argue instead that support should be limited to those feedstocks which genuinely reduce carbon emissions over the short term – i.e. mill residues and post-consumer wood waste. This would not only have a positive direct impact on the climate but would also release more resources for genuine zero-carbon technologies, such as solar, wind or tidal – and perhaps also for programmes encouraging afforestation and the more extensive use of wood in buildings and products. Use it, don’t burn it.

To comment on this article, please contact Chatham House Feedback




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