Two nations that account for more than one-third of all greenhouse gas emissions reached a climate deal. The United States will accelerate the pace of its net greenhouse gas emissions reductions from 17 percent below 2005 levels by 2020 to 26-28 percent by 2025. China will increase the non-fossil fuel share of all its energy to approximately 20 percent--roughly a fifth of its energy supply--by 2030.
"This is a major milestone," said President Obama. "This is an ambitious goal, but this is an achievable goal. We have a special responsibility to lead the world effort to combat global climate change."
The deal was reached after several rounds of talks between the two nations. At a joint press conference where the deal was announced, Obama indicated that he hoped the deal would "encourage all major economies to be ambitious and all developed and developing countries to work across divides" so that an agreement could be reached on climate change targets in Paris next year.
Chinese President Xi Jinping had similar comments.
"We agreed to make sure international climate change negotiations will reach agreement as scheduled at the Paris conference in 2015 and agreed to deepen practical cooperation on clean energy, environmental protection and other areas," he said. The deal calls for China to deploy an additional 800-1,000 gigawatts of nuclear, wind, solar and other zero-emission energy sources--a capacity greater than that of all the coal-fired power plants in China and nearly equal to total electricity generation in the United States. Among other initiatives on which the two countries agreed: Expand joint clean energy research and development, advance major carbon capture and storage demonstrations, enhance cooperation on hydrofluorocarbons, creating a federal framework for cities in both countries to share experiences and best practices for low-carbon economic growth and adaptation to climate change impacts, and boosting trade in "green" goods, including energy efficiency technology and resilient infrastructure.
China is still largely poor, but its economy and energy use is still growing rapidly. At the same time, China is combating severe air pollution.
"Just the fact that they agreed to cap their emissions in the future is a significant development," said Brian Murray, director of the Environmental Economics Program at Duke University's Nicholas Institute for Environmental Policy Solutions. "As important as these two countries are, they can't get the job done working alone. But without them, the world can't get the job done."
Will China's pledge keep the climate from warming 2 degrees Celsius above pre-industrial levels--a scientific benchmark for averting dangerous climate impacts? A number of scientists say it falls short of what is needed to hit that target.
Congressional Republicans are skeptical of the deal. "As I read the agreement, it requires the Chinese to do nothing at all for 16 years, while these carbon emission regulations are creating havoc in my state and other states across the country," said Mitch McConnell, who is in line to become the new Senate majority leader in January.
Grid Reliability In Question
New analysis by the North American Electric Reliability Corporation (NERC) discusses the potential impacts of the U.S. Environmental Protection Agency's (EPA) Clean Power Plan on grid reliability (subscription). Specifically, NERC points to rapid transition as a factor in damaging capacity margins, increasing the difficulty of maintaining power quality and leaving the grid vulnerable to extreme weather.
The EPA said the report on the impact of the Clean Power Plan, which would reduce carbon emissions from existing fossil fuel-fired power plants, offered no new analysis and overlooks new capacity that will be built by 2020.
"The world is going to change regardless of this new proposed rule, and we know new capacity is going to build and NERC just ignores that completely," a staff member in the EPA's Office of Air and Radiation told Greenwire (subscription). "There are a lot of assertions and claims in the report that aren't really substantiated by any particular analytics they mention, or supported by a deeper look into the issues."
A U.S. Department of Energy study, due out in 2015, will examine the rule's impact on utilities, according to The Hill.
OPEC Reduces Forecast Amid Low Oil Prices
In its annual World Oil Outlook, the Organization of the Petroleum Exporting Countries (OPEC), which supplies a third of the world's crude oil, cut demand forecasts to 28.2 million barrels per day in 2017--a 14-year low. The 2014 report estimates approximately 600,000 barrels a day less than the 2013 report and 800,000 below the amount required this year.
The report further states that there will be a "small decline in real values" over this decade, together with a "constant nominal price" of $110 a barrel between now and 2020.
Booming U.S. oil production has put domestic output on the same level as that of energy giants Russia and Saudi Arabia, but oil prices are on the decline. UT San Diego News says the overall economy may still win, noting that "we still consume far more petroleum--in the form of gasoline and thousands of related products--than we pump from the ground. This means import costs are falling, too."
Despite the decline in oil prices--to some $77 a barrel--companies like BP and Total are continuing to invest in major projects.
"We are not changing our investment decisions because of this [current price]," said Bob Dudley, BP chief executive.
The Climate Post offers a rundown of the week in climate and energy news. It is produced each Thursday by Duke University's Nicholas Institute for Environmental Policy Solutions.