Energy and consulting firm Wood Mackenzie, supported by data and analysis from WRI’s Aqueduct Water Risk Atlas, surveyed water risks among the world’s top energy-producing regions. They found that three energy sectors face particularly high water risks: shale gas in the United States, coal production and coal-fired power in China, and crude oil in the Middle East.
Blog Posts: coal
U.S. public financing for overseas coal-fired power is likely coming to an end.
That’s the clear signal from the U.S. Department of Treasury’s announcement earlier this week. At institutions like the World Bank, where the United States is the largest shareholder, this decision holds real significance.
Record-setting levels of smog this week shut down Harbin, a city of 11 million people in northeast China. Officials blamed increased coal consumption during the first days of winter heating, underscoring the urgency of the China State Council’s recently announced initiative to address persistent smog in major cities.
But while the Air Pollution Control Action Plan has ambitious goals—cutting air particulates and coal consumption—it may create unintended problems for the country’s water supply.
It is common knowledge that China burns a large amount of coal, with the fuel accounting for nearly 70% of China’s primary energy consumption in recent years. What is less commonly known is that China is also working on ways to reduce the impact of its coal use, including aggressively pursuing research and demonstration of carbon capture, utilization and storage (CCUS) technology.
Last month, China’s State Council announced a new action plan to combat air pollution, which included a prohibition of new coal-fired power plants in the three most important metropolitan areas around Beijing, Shanghai, and Guangzhou (known as the “key-three city clusters”). But while the plan sounds like progress, will it actually slow down China’s new coal construction? A bit of analysis suggests that it may take more action to really curb China’s appetite for coal.
Future U.S. power suppliers will need to limit their carbon pollution, thanks to new standards announced today by the U.S. Environmental Protection Agency (EPA). The proposed emissions standards for new power plants are an important measure in implementing the President’s Climate Action Plan (announced in June) to reduce U.S. greenhouse gas emissions and mitigate global warming.
EPA’s announcement comes against the backdrop of our deepening understanding of the science of climate change. It also arrives as we witness multiple extreme weather events that present a vivid picture of what we are likely to experience in a changing world. This summer, we saw record rainfalls on the southeast coast, massive wildfires in California and Idaho, and most recently, deadly flooding in Colorado. These extreme events--to say nothing of their massive economic cost--remind us of why the United States has an obligation to cut its emissions.
As we’ve previously written, the President’s plan recommits the United States to meeting its international commitment of reducing its GHG emissions by 17 percent below 2005 levels by 2020. With these new standards--along with additional recent steps toward increasing energy efficiency and reducing emissions of potent greenhouse gases like hydrofluorocarbons and methane--the Administration is making progress in all of the sectors WRI identified in our report earlier this year.
To maintain its economic growth and provide for its massive population, China must reconcile two powerful, converging trends: energy demand and resource scarcity. One prime example of this tension is the country’s coal use and water supply.
When President Barack Obama announced the country’s first national climate strategy, many people wondered what it would mean across the nation. Yet, the strategy may carry even more significant implications overseas.
The plan restricts U.S. government funding for most international coal projects. This policy could significantly affect energy producers and public and private investors around the globe.
While reactions to President Obama’s newly announced climate plan have focused on domestic action, the plan actually has potentially significant repercussions for the rest of the world. These repercussions will come in part through his commitment to limit U.S. investments in new coal-fired power plants overseas. If fully implemented, the plan will help ensure that the U.S. government channels its international investments away from fossil fuels and toward clean energy. The move sends a powerful signal—and hopefully, will inspire similar action by other global lenders.
This post originally appeared on ChinaFAQS.org.
The United States and China are the world’s two largest economies. They are also the two largest producers and consumers of coal, and the largest emitters of carbon dioxide. In recent years, however, their paths on coal have started to diverge.
Over the last few years, coal consumption has dropped dramatically in the United States, mainly due to low natural gas prices. In response to weak domestic demand, the U.S. coal industry has been rushing to find its way out to the international market. Last year, U.S. coal exports hit a historical high of 114 million metric tons.
However, it is worth noting that the shift away from coal in the U.S. may not be permanent. As my colleague, Kristin Meek, pointed out in an earlier blog post, coal use in the U.S. power sector was on the rise again towards the end of 2012, likely driven by the new uptick in natural gas prices.
On the other side of the globe, China’s appetite for coal continues to grow. In response, Chinese power companies are looking to tap the international coal market for sources that are more reliable and cost competitive. Among those markets is the United States. In 2012, China imported 290 million metric tons of coal. China was the third largest destination for U.S. coal exports, behind the Netherlands and the U.K.