Barack Obama pointed out methods to fight climate change

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17 January 2017

Prestigious scientific journal Science has published an article written by the 44-th president of the United States of America, Barack Obama, in which he proposed methods to fight climate change for America with no harm to economy. Barack Obama for the journal Science:

Beyond the macroeconomic case, businesses are coming to the conclusion that reducing emissions is not just good for the environment—it can also boost bottom lines, cut costs for consumers, and deliver returns for shareholders.

Perhaps the most compelling example is energy efficiency. Government has played a role in encouraging this kind of investment and innovation: My Administration has put in place (i) fuel economy standards that are net beneficial and are projected to cut more than 8 billion tons of carbon pollution over the lifetime of new vehicles sold between 2012 and 2029 (10) and (ii) 44 appliance standards and new building codes that are projected to cut 2.4 billion tons of carbon pollution and save $550 billion for consumers by 2030 (11).

But ultimately, these investments are being made by firms that decide to cut their energy waste in order to save money and invest in other areas of their businesses. For example, Alcoa has set a goal of reducing its GHG intensity 30% by 2020 from its 2005 baseline, and General Motors is working to reduce its energy intensity from facilities by 20% from its 2011 baseline over the same timeframe (12). Investments like these are contributing to what we are seeing take place across the economy: Total energy consumption in 2015 was 2.5% lower than it was in 2008, whereas the economy was 10% larger (2).

This kind of corporate decision-making can save money, but it also has the potential to create jobs that pay well. A U.S. Department of Energy report released this week found that ~2.2 million Americans are currently employed in the design, installation, and manufacture of energy-efficiency products and services. This compares with the roughly 1.1 million Americans who are employed in the production of fossil fuels and their use for electric power generation (13). Policies that continue to encourage businesses to save money by cutting energy waste could pay a major employment dividend and are based on stronger economic logic than continuing the nearly $5 billion per year in federal fossil-fuel subsidies, a market distortion that should be corrected on its own or in the context of corporate tax reform (14).

The American electric-power sector—the largest source of GHG emissions in our economy—is being transformed, in large part, because of market dynamics. In 2008, natural gas made up ~21% of U.S. electricity generation. Today, it makes up ~33%, an increase due almost entirely to the shift from higher-emitting coal to lower-emitting natural gas, brought about primarily by the increased availability of low-cost gas due to new production techniques (2, 15). Because the cost of new electricity generation using natural gas is projected to remain low relative to coal, it is unlikely that utilities will change course and choose to build coal-fired power plants, which would be more expensive than natural gas plants, regardless of any near-term changes in federal policy. Although methane emissions from natural gas production are a serious concern, firms have an economic incentive over the long term to put in place waste-reducing measures consistent with standards my Administration has put in place, and states will continue making important progress toward addressing this issue, irrespective of near-term federal policy.

Renewable electricity costs also fell dramatically between 2008 and 2015: the cost of electricity fell 41% for wind, 54% for rooftop solar photovoltaic (PV) installations, and 64% for utility-scale PV (16). According to Bloomberg New Energy Finance, 2015 was a record year for clean-energy investment, with those energy sources attracting twice as much global capital as fossil fuels (17).

Public policy—ranging from Recovery Act investments to recent tax credit extensions—has played a crucial role, but technology advances and market forces will continue to drive renewable deployment. The levelized cost of electricity from new renewables like wind and solar in some parts of the United States is already lower than that for new coal generation, without counting subsidies for renewables (2).

That is why American businesses are making the move toward renewable energy sources. Google, for example, announced last month that, in 2017, it plans to power 100% of its operations using renewable energy—in large part through large-scale, long-term contracts to buy renewable energy directly (18). Walmart, the nation’s largest retailer, has set a goal of getting 100% of its energy from renewables in the coming years (19). And economy-wide, solar and wind firms now employ more than 360,000 Americans, compared with around 160,000 Americans who work in coal electric generation and support (13).

Beyond market forces, state-level policy will continue to drive clean-energy momentum. States representing 40% of the U.S. population are continuing to move ahead with clean-energy plans, and even outside of those states, clean energy is expanding. For example, wind power alone made up 12% of Texas’s electricity production in 2015 and, at certain points in 2015, that number was >40%, and wind provided 32% of Iowa’s total electricity generation in 2015, up from 8% in 2008 (a higher fraction than in any other state) (15, 20).

Outside the United States, countries and their businesses are moving forward, seeking to reap benefits for their countries by being at the front of the clean-energy race. This has not always been the case. A short time ago, many believed that only a small number of advanced economies should be responsible for reducing GHG emissions and contributing to the fight against climate change. But nations agreed in Paris that all countries should put forward increasingly ambitious climate policies and be subject to consistent transparency and accountability requirements. This was a fundamental shift in the diplomatic landscape, which has already yielded substantial dividends. The Paris Agreement entered into force in less than a year, and, at the follow-up meeting this fall in Marrakesh, countries agreed that, with more than 110 countries representing more than 75% of global emissions having already joined the Paris Agreement, climate action “momentum is irreversible” (21).

Although substantive action over decades will be required to realize the vision of Paris, analysis of countries’ individual contributions suggests that meeting medium-term respective targets and increasing their ambition in the years ahead—coupled with scaled-up investment in clean-energy technologies—could increase the international community’s probability of limiting warming to 2°C by as much as 50% (22).

Were the United States to step away from Paris, it would lose its seat at the table to hold other countries to their commitments, demand transparency, and encourage ambition. This does not mean the next Administration needs to follow identical domestic policies to my Administration’s. There are multiple paths and mechanisms by which this country can achieve—efficiently and economically—the targets we embraced in the Paris Agreement. The Paris Agreement itself is based on a nationally determined structure whereby each country sets and updates its own commitments. Regardless of U.S. domestic policies, it would undermine our economic interests to walk away from the opportunity to hold countries representing two-thirds of global emissions—including China, India, Mexico, European Union members, and others—accountable.

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