World Regional Geography Unit I: Introduction to World Regional Geography Lesson 4: Solutions to Global Warming Debate

Some Review…

Greenhouse Gases Image Source: Increasing concentration of atmospheric CO2, the most important greenhouse gas Human activity (fossil fuel burning) contributes to the increase

Predicted Effects of Global Warming Image Source: Temperature changes Extreme weather Changes in precipitation patterns Glacier retreat, decrease in snow cover Ocean acidification Sea level rise Food supply challenges

Greenhouse Gases Image Source: Production of GHGs by country, 2005

Greenhouse Gases Image Source: Production of GHGs per capita, 2005

Global Warming: Solutions Image Source: Cap-and-trade mechanisms Carbon tax Develop technology to: – Sustain current level of economic growth with fewer emisssions – Sequester carbon produced by human activities – Allow geoengineering – Deal with the adverse effects of global warming

CO2 Emissions Image Source: The rising level of CO2 in the atmosphere seems to be the main cause of rising temperatures For thousands of years, the level of CO2 was under 300 parts per million by volume (ppmv) Then in the 19 th century is started increasing As of 2010, it is at 392 ppmv, rising at an annual rate of 2 ppmv

CO2 Emissions by Sector, 2008 Image Source: IEA, 2010

Projected Temperature Rise Image Source: Stern Review, 2006

Projected Adverse Effects Image Source: Stern Review, 2006

Policies Currently in Place Image Source: The Kyoto Protocol (1997) – Target of 8% reduction in carbon emissions from the 1990 levels by 2012 – Consequently: the EU creates the Emissions Trading Scheme (ETS): carbon permits are given to emitting industries – Major problem of Kyoto: many big countries do not participate (USA, China, Brazil, India, etc.) – Copenhagen conference in 2009 fails to deliver any decisive results

Cap-and-Trade: How it works Image Source: A government sets a limit (cap) on the amount of emissions that can be produced The limit is allocated (or sold) to the companies that produce the emissions in form of “permits”; in effect, a permit represents an allowance to pollute the air with a given amount of carbon Companies that need to emit more than the allocated amount need to purchase permits form other companies = trade A market for emission permits emerges

Cap-and-Trade: Pros and Cons Image Source: ProsCons Cap-and-Trade approach lets the market to decide where to cut the emissions – it is therefore considered to be the most efficient Difficult to set emission reduction targets: should it be 3% a year or 8% a year? Which rate would be more economically profitable? Cap-and-trade approach easily adopts to economic changes like inflation – the price adjusts to the wider economy (in case of carbon tax, regulatory action would be needed to adjust the level of tax) Unilateral action dangerous for the economy of a country that first introduces the cap-and-trade scheme: additional costs for the businesses in that country Cap-and-Trade approach (the type where permits are given away for free) does not rise any revenue for the government

Carbon Tax: How it works Image Source: A government puts a tax on the amount of carbon produced (usually a tone) Sectors that have to pay the tax are chosen; individual citizens are usually not required to pay the tax (this is politically unrealistic) To make carbon taxation simpler and fairer, sources of emissions, rather than emissions themselves are often taxed: e.g. oil, coal, etc. – this way, the tax is equitably carried over to the final consumer

Carbon Tax: Pros and Cons Image Source: ProsCons Carbon tax raises revenues that can be used to fight global warming Difficult to put a price on carbon (i.e. should it be 0,50 € per tone or 50 € per tone?) Carbon tax is transparent and easy to understand for everyone Unilateral action dangerous for the economy of a country that first introduces the tax Carbon tax is easier to administerCommon rate for all countries = unfair to developing countries A carbon tax with common rate for all industries is the most efficient method Different rate for different countries = reduces effectiveness in a global economy

No Restrictive Policies: Pros and Cons Image Source: ProsCons Does not negatively impact the economy in the short term Little or no short-term reduction in emissions may be dangerous May provide positive incentives for development of green technologies (but does not specify how to pay for it) Does not provide negative incentives for green technology development This approach is more fair towards developing countries – it lets them industrialize without restrictions

Non-Climate Advantages of Action Image Source: Energy security Job creation Economic growth

Image Source: Homework due on October 10 Prepare for in-class debate on “Global policy to fight Global Warming” Students form three groups that will argue for different approaches to CO2 emissions reduction – Group A: Cap-and-trade mechanisms – Group B: Carbon tax – Group C: No restrictive policies, invest in research that will produce technology capable of dealing with carbon emissions such as carbon sequestration Each group is required to get acquainted with the advantages and disadvantages of each of the three approaches Each group will present the advantages of its own approach, and try to “sell it” to the rest of the class