 Average annual growth rate : 10%  From 1990 to 2009, moved from net exporter of oil to world’s second largest net importer  World’s largest producer and consumer of coal – 46% world’s coal consumption

 US 16 trillion  China 12 trillion and gaining  Population  US: 316 million  China 1.4 billion

COAL  US 2012 – o.9 billion short tons (declining)  China 2012 – 4.0 billion short tons (rising) OIL  US 2013 – 18.9 million bpd  China 2013 – 10.7 million bpd

CHINA 2012  Hydro –  22% capacity  Other renewables  6.2% capacity US 2013  Hydro  6.6% energy  7.4% capacity (summer 2012)  Other renewables  6.2% energy  7.2% capacity (summer 2012)

 Authoritarian –concentrates authority in few executive agencies manned by capable and uncorrupt elites seeking to improve environmental outcomes  Democratic--spreads authority over several levels and agencies of government, including representative legislatures, and that encourages direct public participation from a wide cross-section of society

 “Citizen participation is limited to learning and obeying state policies.” p. 291 “A Renewable Energy Law was completed in 2004 after fewer than nine months of drafting and then passed into law with no amendments by an unelected national legislature in 2005” p. 290

 National Development and Reform Commission (NDRC) -primary policymaking and regulatory authority in the energy sector,  National Energy Administration (NEA) (formed 2008) key energy regulator for the country  approves new energy projects  sets domestic wholesale energy prices  implements central government's energy policies,  National Energy Commission (formed 2010) – coordinate energy policy among the various agencies under the State Council

 China National Petroleum Corporation (CNPC) - leading upstream player in China  publicly-listed arm PetroChina,  together account for roughly 60 % domestic oil and 80% natural gas output  China Petroleum and Chemical Corporation (Sinopec)  downstream activities (refining and distribution)  China National Offshore Oil Corporation (CNOOC): offshore oil exploration and production

 Reduce emission intensity of GDP 40-45% by 2020 (over 2005 levels)  At Durban, China agreed to negotiate a legally binding treaty (including the possibility of an absolute emission cap) by 2020

 Can produce a rapid response to problem  But if fragmentation remains, can undermine implementation due to illegitimacy  Federalism issues  Low social concern makes authoritarianism more necessary and more difficult

 US energy system  Institutions  Policy

 Federalism: gives extensive powers to 50 states  Separation of powers  Congress ▪ 2 equal chambers ▪ House – 435 seat elected every 2 years ▪ Senate – 2 seats per state elected every 6 years  President – elected separately every 4 years  Courts

 House: 50% +1  Senate: effective majority is 60%  Treaties: 2/3 rd of Senate requires  President needs to sign laws passed by Congress  If president vetos, 2/3 rd of both houses can overturn

Congress and president same party: working majority is 60% Congress and president different party: working majority is 67% Note contrast to Canada, China

 House and Senate Democratic  House Republican, Senate Democratic  Current Senate: 55 D – 45 R  Current House: 201 D – 231 R

 1973 oil shock prompted  Creation of Department of Energy 1977  Strategic Petroleum Reserve  Corporate Average Fuel Economy Standards  Every president developed a plan but little coherence

2013 Inaugural: We will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations. The path towards sustainable energy sources will be long and sometimes difficult. But America cannot resist this transition, we must lead it. We cannot cede to other nations the technology that will power new jobs and new industries, we must claim its promise. That’s how we will maintain our economic vitality and our national treasure -- our forests and waterways, our crop lands and snow-capped peaks. That is how we will preserve our planet, commanded to our care by God. That’s what will lend meaning to the creed our fathers once declared.

 2001 – US cars and trucks averaged 24.7 m.p.g.  m.p.g.  New regs: up to 55 m.p.g. by 2025  Feb 2014: announces intention for new heavy duty vehicle standardsannounces Sustainable Energy Policy34

 Try Congress first – cap and trade  Use administration action if that fails  Core focus on auto standards  Emerging focus on coal ▪ Strong standards on new plants ▪ New coal plants essentially off the table ▪ New commitment to regulate existing plans, but timing uncertain

 2009 – House passes Waxman-Markey  17% reduction by 2020  Riddled with concession  2010 Senate  Coalition building required giving everything away  Coalition of senators fell apart when initiative got framed as “gas tax”  “on climate change, Obama grew timid and gave up, leaving the dysfunctional Senate to figure out the issue on its own”  Personal impact

 As of early 2014, 38 states have RPS or Alternative Energy Portfolio Standards; another six have voluntary standards (source)source  California most aggressive – 33% by 2020

 California leadership  1990 levels by 2020 (30% reduction)  80% below 1990 levels by 2050  Cap and trade program now in place

 Global leaders in power, energy, emissions  2/5 of global GHG emission  Different stages on carbon path  Chinese growth core driving force  emission intensity: >factor of 2 difference  Starkly different political systems  If they cooperated, enormous change possible  Prospects for meaningful cooperation?