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Climate change and time traps …and
what to do




Disclaimer: not necessarily the
views of the government
Time trap 1: environmental inertia
IPCC emissions scenarios                   Modelled warming




                   Source: Hadley Centre
and by the way…


                  "Not only have we not
                  made progress, we
                  are actively moving in
                  the wrong direction,“

                  UNEP executive
                  director Achim Steiner
Time trap 2: infrastructure transition
Transition…?




                                                                     Gas
                                                                            Fossil
                                                                            fuels
                                                                      Oil



                                                                     Coal




Source: IAASA Global Energy Assessment 2012 – World Primary Energy
Transition…

                                             World Coal Consumption
                         4,500

                         4,000

                         3,500

                         3,000

                         2,500
                  MTOE




                         2,000
                                                         Asia & Pacific
                         1,500

                         1,000

                          500                            Everywhere else

                            0
                             1981        1986     1991    1996    2001     2006   2011


BP Statistical Review of World Energy 2012
Transition… the last 30 years
                                 World Primary Energy Share by Fuel
                100%                                                                                   Renewables
                                                                               Nuclear
                 90%                                                Hydro

                 80%
                                                                     Gas
                 70%

                 60%

                 50%
                                                                    Oil
                 40%

                 30%

                 20%

                 10%                                               Coal

                   0%
                      1981           1986           1991           1996           2001   2006   2011
BP Statistical Review of World Energy 2012 – note includes ‘commercial energy’ only
… transition?
                                               World total car registrations (m)
                        800
              Million




                        700

                        600

                        500

                        400

                        300

                        200

                        100

                         0
                          1950         1960             1970              1980   1990   2000   2010


Source: US Department of Energy, Transportation Energy Data Book 2012 edition
Car use - driving infrastructure demand?
                                      Vehicles per '000 people United States
    1000

      900

      800

      700

      600
                                                                                                W. Europe
                                                                                                2010
      500

      400

      300

      200
                                         Brazil 2010
      100
                 India 2010       China 2010
         0
          1900       1910        1920       1930       1940        1950       1960       1970        1980       1990   2000   2010
                                                                                With country data for 2010 superimposed
Source: US Department of Energy, Transportation Energy Data Book 2012 edition. Specific country data for 2010
Time trap 3: innovation
Toyota hybrid sales
            800
Thousands




            700


            600


            500


            400


            300


            200


            100


             0
              1997   1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010
Toyota total sales - hybrid and non-hybrid
           10.0
Millions




            9.0

            8.0

            7.0

            6.0

            5.0

            4.0

            3.0

            2.0

            1.0

            0.0
              1997   1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010
Time trap 4: changing human behaviour
Smoking prevalence
               All > age 16 (Britain)
50
45
40
35
30
25
20
15
10
 5
 0
 1975   1980   1985   1990   1995   2000   2005   2010
Time trap 5: expectations and credibility
Carbon price expectations

       Shadow cost of carbon £/tCO2           EU ETS carbon price
 300


 250


 200


 150


 100


  50


   0
   2000    2010   2020   2030   2040   2050




                  Carbon price floor
What do you believe?                   What would you bet?
• UK will have 15% energy
  consumption from renewables by
  2020?

• UK will meet 4th carbon budget
  (1.95 bnTCO2 in 2023-27?)

• UK will reduce emissions by 80% by
  2050 (cf 1990)?

• A post-Kyoto deal will be done by
  2015 and enter force 2020?

• UK Carbon Price Floor will be
  £70/tCO2 in 2030?

• Global temperatures increases will
  be kept below 2 degrees?
Time trap 6: future expectations
Estimating future emissions

                                       GDP?



                                                    Economic
                         Trade?
                                                    structure?




           Geography?               Emissions?                Energy mix?




                        Land use?                 Infrastructure?



                                    Population?
GDP per capita ($US)




                          CO2 emissions per capita (tonnes)
Gapminder
GDP per capita ($US)




                       CO2 emissions per capita (tonnes)
EU-15 Kyoto burden sharing
                                Target relative to base year
                                                                       27%         Portugal
                                                                     25%           Greece
                                                         15%                       Spain
                                                    13%                            Ireland
                                              4%                                   Sweden
                                          0%                                       France
                                          0%                                       Finland
                                 -6%                                               Netherlands
                                 -6.5%                                             Italy
                               -7.5%                                               Belgium
                               -8%                                                 EU-15
                      -12.5%                                                       United Kingdom
                      -13%                                                         Austria
               -21%                                                                Germany
               -21%                                                                Denmark
       -28%                                                                        Luxembourg
-30%          -20%     -10%              0%        10%         20%           30%
GDP per capita ($US)




                       CO2 emissions per capita (tonnes)
100
              Most important issues facing Britain
      Q What would you say is the most important issue facing Britain today?     Pollution / environment
      Q What do you see as other important issues facing Britain today?
90    (Unprompted - combined answers)


80      Exxon
        Valdez
70


60


50
                  Ozone                                                                          Peak concern
40                 hole                                                                           on climate
                                                                           UK climate               change
30                                                                         programme
                                                                            (or GM?)
20


10


 0
100
      Most important issues facing Britain
90


80


70            Unemployment

60                              Economy

50


40


30


20


10


 0
Part 2: What to do about it?
What to do 1: just stop it!
Stop it! The 2oC commitment…
    CO2 scenarios for approximately 37% chance of not exceeding 2°C.




                                               Developing countries
                                              peak in 2020 and fall at
                                                8% per year after
                                              Developed countries
                                             peak in 2010 and fall at
                                               10% per year after




  Anderson K , Bows A Phil. Trans. R. Soc. A 2011;369:20-44
What to do 2: form clubs
20 countries/blocs - 80% emissions




 Source: Garnaut Climate Change Review
Concentration in innovation investment

                           Gross expenditure on public & private R&D , 2007
      100%                         Percentage share of global total

          80


          60


          40


          20


           0
                        Japan China       France        Korea                       Brazil
                                                                     Canada
               United                           United          India
                                      Germany   Kingdom                    Russia
               States




Source: David Victor, Global Warming Gridlock - citing UNESCO data
What to do 3: switch to policies & measures
What to do 4: pricing not quantities
                              Create a carbon price 2010= 1.0
 16.0

 14.0
           •   Globally co-ordinated carbon tax
           •   Nationally collected
 12.0      •   Possible consumption basis
           •   Border taxes for non-participants
 10.0
           •   Predictably rising
  8.0      •   Very long term
           •   No shocks
  6.0

  4.0

  2.0

  0.0
    1990       2000   2010   2020   2030   2040    2050   2060   2070   2080   2090   2100
What to do 5: focus on specific problems
•   Nuclear fuel cycle management
•   LNG infrastructure for China
•   Forest and sink protection
•   Global sectoral agreements – automotive, aviation, steel
•   Carbon pricing with border tax adjustments
•   Grid infrastructure for desert solar concentrators
•   Product and building energy efficiency standards
•   Water trading and river basin management

• Etc etc…
What to do 6: focus on ‘no regrets’
What to do 7: innovation strategy
                                                                                      Energy storage density



                                                            Hydrogen                                                                                 Gasoline
Energy density by weight (watt hours / kg)




                                             10,000                                                                      Ethanol
                                                                           CNG                                                                          Bio-diesel
                                                                                                                                      Liquid fuels                   Diesel


                                                                      Gaseous fuels

                                              1,000
                                                                              Hydrogen
                                                                              absorbing
                                                                                alloy
                                                          Batteries
                                               100          Lithium-ion
                                                            Nickel metal
                                                10         Lead
                                                      0       1,000        2,000   3,000        4,000       5,000      6,000       7,000    8,000       9,000    10,000

                                                                                           Energy density by volume (watt hours / litre)




                                               Source: Toyota
What to do 8: emphasise adaptation
Misallocation: low carbon vs adaptation?




    Source: Policy Exchange, Delivering 21st Infrastructure for Britain, 2009
What to do 9: the geoengineering hedge
What to do 10: future proofing
Six time traps
1. Environmental response
2. Infrastructure
3. Innovation
4. Human behaviour
                             Thank you
5. Credible signals
6. Economic expectations
                            @clive_bates
What to do? Ten thoughts…
1. Stop it!
2. Clubs
3. Policies & measures
4. Global carbon price
5. Problem focus
6. No-regrets
7. Innovation
8. Adaptation
9. Geoengineering hedge
10. Future proofing

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Time and climate change - London Climate Forum 2012

  • 1. Climate change and time traps …and what to do Disclaimer: not necessarily the views of the government
  • 2. Time trap 1: environmental inertia
  • 3. IPCC emissions scenarios Modelled warming Source: Hadley Centre
  • 4. and by the way… "Not only have we not made progress, we are actively moving in the wrong direction,“ UNEP executive director Achim Steiner
  • 5. Time trap 2: infrastructure transition
  • 6.
  • 7. Transition…? Gas Fossil fuels Oil Coal Source: IAASA Global Energy Assessment 2012 – World Primary Energy
  • 8. Transition… World Coal Consumption 4,500 4,000 3,500 3,000 2,500 MTOE 2,000 Asia & Pacific 1,500 1,000 500 Everywhere else 0 1981 1986 1991 1996 2001 2006 2011 BP Statistical Review of World Energy 2012
  • 9. Transition… the last 30 years World Primary Energy Share by Fuel 100% Renewables Nuclear 90% Hydro 80% Gas 70% 60% 50% Oil 40% 30% 20% 10% Coal 0% 1981 1986 1991 1996 2001 2006 2011 BP Statistical Review of World Energy 2012 – note includes ‘commercial energy’ only
  • 10. … transition? World total car registrations (m) 800 Million 700 600 500 400 300 200 100 0 1950 1960 1970 1980 1990 2000 2010 Source: US Department of Energy, Transportation Energy Data Book 2012 edition
  • 11. Car use - driving infrastructure demand? Vehicles per '000 people United States 1000 900 800 700 600 W. Europe 2010 500 400 300 200 Brazil 2010 100 India 2010 China 2010 0 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 With country data for 2010 superimposed Source: US Department of Energy, Transportation Energy Data Book 2012 edition. Specific country data for 2010
  • 12. Time trap 3: innovation
  • 13. Toyota hybrid sales 800 Thousands 700 600 500 400 300 200 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
  • 14. Toyota total sales - hybrid and non-hybrid 10.0 Millions 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
  • 15. Time trap 4: changing human behaviour
  • 16. Smoking prevalence All > age 16 (Britain) 50 45 40 35 30 25 20 15 10 5 0 1975 1980 1985 1990 1995 2000 2005 2010
  • 17. Time trap 5: expectations and credibility
  • 18. Carbon price expectations Shadow cost of carbon £/tCO2 EU ETS carbon price 300 250 200 150 100 50 0 2000 2010 2020 2030 2040 2050 Carbon price floor
  • 19. What do you believe? What would you bet? • UK will have 15% energy consumption from renewables by 2020? • UK will meet 4th carbon budget (1.95 bnTCO2 in 2023-27?) • UK will reduce emissions by 80% by 2050 (cf 1990)? • A post-Kyoto deal will be done by 2015 and enter force 2020? • UK Carbon Price Floor will be £70/tCO2 in 2030? • Global temperatures increases will be kept below 2 degrees?
  • 20. Time trap 6: future expectations
  • 21. Estimating future emissions GDP? Economic Trade? structure? Geography? Emissions? Energy mix? Land use? Infrastructure? Population?
  • 22. GDP per capita ($US) CO2 emissions per capita (tonnes) Gapminder
  • 23. GDP per capita ($US) CO2 emissions per capita (tonnes)
  • 24. EU-15 Kyoto burden sharing Target relative to base year 27% Portugal 25% Greece 15% Spain 13% Ireland 4% Sweden 0% France 0% Finland -6% Netherlands -6.5% Italy -7.5% Belgium -8% EU-15 -12.5% United Kingdom -13% Austria -21% Germany -21% Denmark -28% Luxembourg -30% -20% -10% 0% 10% 20% 30%
  • 25. GDP per capita ($US) CO2 emissions per capita (tonnes)
  • 26.
  • 27.
  • 28. 100 Most important issues facing Britain Q What would you say is the most important issue facing Britain today? Pollution / environment Q What do you see as other important issues facing Britain today? 90 (Unprompted - combined answers) 80 Exxon Valdez 70 60 50 Ozone Peak concern 40 hole on climate UK climate change 30 programme (or GM?) 20 10 0
  • 29. 100 Most important issues facing Britain 90 80 70 Unemployment 60 Economy 50 40 30 20 10 0
  • 30. Part 2: What to do about it?
  • 31. What to do 1: just stop it!
  • 32. Stop it! The 2oC commitment… CO2 scenarios for approximately 37% chance of not exceeding 2°C. Developing countries peak in 2020 and fall at 8% per year after Developed countries peak in 2010 and fall at 10% per year after Anderson K , Bows A Phil. Trans. R. Soc. A 2011;369:20-44
  • 33. What to do 2: form clubs
  • 34. 20 countries/blocs - 80% emissions Source: Garnaut Climate Change Review
  • 35. Concentration in innovation investment Gross expenditure on public & private R&D , 2007 100% Percentage share of global total 80 60 40 20 0 Japan China France Korea Brazil Canada United United India Germany Kingdom Russia States Source: David Victor, Global Warming Gridlock - citing UNESCO data
  • 36. What to do 3: switch to policies & measures
  • 37. What to do 4: pricing not quantities Create a carbon price 2010= 1.0 16.0 14.0 • Globally co-ordinated carbon tax • Nationally collected 12.0 • Possible consumption basis • Border taxes for non-participants 10.0 • Predictably rising 8.0 • Very long term • No shocks 6.0 4.0 2.0 0.0 1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
  • 38. What to do 5: focus on specific problems • Nuclear fuel cycle management • LNG infrastructure for China • Forest and sink protection • Global sectoral agreements – automotive, aviation, steel • Carbon pricing with border tax adjustments • Grid infrastructure for desert solar concentrators • Product and building energy efficiency standards • Water trading and river basin management • Etc etc…
  • 39. What to do 6: focus on ‘no regrets’
  • 40. What to do 7: innovation strategy Energy storage density Hydrogen Gasoline Energy density by weight (watt hours / kg) 10,000 Ethanol CNG Bio-diesel Liquid fuels Diesel Gaseous fuels 1,000 Hydrogen absorbing alloy Batteries 100 Lithium-ion Nickel metal 10 Lead 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Energy density by volume (watt hours / litre) Source: Toyota
  • 41. What to do 8: emphasise adaptation
  • 42. Misallocation: low carbon vs adaptation? Source: Policy Exchange, Delivering 21st Infrastructure for Britain, 2009
  • 43. What to do 9: the geoengineering hedge
  • 44. What to do 10: future proofing
  • 45. Six time traps 1. Environmental response 2. Infrastructure 3. Innovation 4. Human behaviour Thank you 5. Credible signals 6. Economic expectations @clive_bates What to do? Ten thoughts… 1. Stop it! 2. Clubs 3. Policies & measures 4. Global carbon price 5. Problem focus 6. No-regrets 7. Innovation 8. Adaptation 9. Geoengineering hedge 10. Future proofing

Editor's Notes

  1. Note actual growth in emissions~ 2.7% p.a. last 100yrs~ 3.5% p.a. 2000-2007
  2. The world’s fleet of passenger vehicles is now an estimated 622 million, up from 500 million in 2000 and just53 million in 195070 million vehicles per year but just 500,000 (<1%) are hybrids and3.8% of UK primary energy from renewables (2011) – aim to increase it to 15% by 2020200,000 houses completed – 27,000,000 houses (<1%)
  3. W. Europe 587India 17.7China 58.7Brazil 160
  4. Source: US EIA http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=rbrte&f=d
  5. Carbon price floorThe floor will start at around £16 per tonne of carbon dioxide (tCO2) and follow a linear path to target £30/tCO2 in 2020 (both in 2009 prices). The carbon price support rates in 2013-14 will be equivalent to £4.94/tCO2. Indicative rates for 2014-15 and 2015-16 are £7.28/tCO2 and £9.86/tCO2 respectively. Budget 2012 will confirm the carbon price support rates for 2014-15, and set out indicative rates for the subsequent two years. Over the long term (2013-2030) a price floor targeting £30/tCO2 provides £1.9 billion of net present value benefits. It also achieves the right balance between encouraging investment without undermining the competitiveness of UK industry. The £30/tCO2 price floor in 2020 rising to £70/tCO2 in 2030 will drive £30-£40 billion of new investment in low-carbon electricity generation.
  6. Q What would you say is the most important issue facing Britain today?Q What do you see as other important issues facing Britain today?(Unprompted - combined answers)
  7. Q What would you say is the most important issue facing Britain today?Q What do you see as other important issues facing Britain today?(Unprompted - combined answers)