



Because the IPCC is perceived to move markets, as least the sliver of the market associated with climate change, and thus management of actual or perceived conflicts of interest are more than a matter of speculation, but very tangible."We believe that any market impacts over climate science may be nearing its floor, with the results of the three independent reviews confirming the integrity of the climate science," the report said.
For the rest of this year, HSBC identified four factors that should catalyze a revival in public concern and market confidence.
A review on the U.N.'s Intergovernmental Panel on Climate Change (IPCC) will be finalized at the end of August and governments will meet in October to take any remedial measures.
"We believe that practical steps to strengthen the IPCC's procedures would represent a positive outcome from this saga. The IPCC also has the opportunity to regain momentum with its special report on renewables later in the year," Robins said.
They say three independent reviews into climate science - the key one being the Inter Academy Council review of the IPCC reports, due by August, will assuage doubts about climate science — adding that the IPCC’s general meeting in October and its reports, due out some time in H2, on renewable energy and managing the risks of extreme events will also provide opportunities for a confidence boost.No kidding? Smart money says you'd better line up your investments in the HSBC CCI while the getting is good!
Legislation and regulation aimed at controlling greenhouse gas emissions are predicated on the belief that science definitively shows that man’s greenhouse gas emissions are causing the EartI reject the premise of the briefing. Legislation and regulation aimed at controlling greenhouse gas emissionsh’s temperature to rise, with serious deleterious effects. What if the cause-and-effect relationships between GHGs and temperature are greatly overstated? What if the data used to measure temperature change and its effects are of poor quality? What if we don’t adequately understand important climatic systems (such as clouds or oceans) to simulate them accurately in the computer models used to predict climatic change? What if the stated positions of key scientific societies are under assault by the member rank and file? What if the state of empirical knowledge points to only a small human effect on climate?
The answers to these questions directly impact the legislative and regulatory debates underway in the Congress and the Obama Administration.
After months of heroic negotiations, Senators John Kerry, Lindsey Graham and Joseph Lieberman had forged a bipartisan climate/energy/jobs bill that, while far from perfect, would have, for the first time, put a long-term fixed price on carbon — precisely the kind of price signal U.S. industry and consumers need to start really shifting the economy to clean-power innovations. . .It is not clear what that "price on carbon" is in the legislation or how widely it would be applied, but for the purposes of discussion, let's just say that it starts at $15 per metric ton of carbon dioxide and is applied economy-wide.
Without that price signal, you will never get sustained consumer demand for, or sustained private investment in, clean-power technologies. All you will get are hobbies. . .
I’d love to see the president come out, guns blazing with this message: “Yes, if we pass this energy legislation, a small price on carbon will likely show up on your gasoline or electricity bill. I’m not going to lie. But it is an investment that will pay off in so many ways. It will spur innovation in energy efficiency that will actually lower the total amount you pay for driving, heating or cooling. It will reduce carbon pollution in the air we breathe and make us healthier as a country. It will reduce the money we are sending to nations that crush democracy and promote intolerance. It will strengthen the dollar. It will make us more energy secure, environmentally secure and strategically secure. . . "
For the most part, the message from these economists is a sort of climate version of St. Augustine’s famous prayer, “Give me chastity and continence, but not just now.” Thus Nordhaus’s DICE model says that the price of carbon emissions should eventually rise to more than $200 a ton, effectively more than quadrupling the cost of coal, but that most of that increase should come late this century, with a much more modest initial fee of around $30 a ton. Nordhaus calls this recommendation for a policy that builds gradually over a long period the “climate-policy ramp.”To put this in perspective, the "central case" of the Stern Review indicates a carbon price of $310 per ton (p. 6 in Dasgupta PDF)-- this is the "big bang" view. It is at a level more than 3 times the ceiling that has been discussed in recent legislation ($310/tonne C = $85/tonne CO2 ~ 3 times $27/tonne CO2, thanks JJ). It is not in the cards. Krugman doesn't explicitly discuss the carbon price implied by Stern.On the other side are some more recent entrants to the field, who work with similar models but come to different conclusions. Most famously, Nicholas Stern, an economist at the London School of Economics, argued in 2006 for quick, aggressive action to limit emissions, which would most likely imply much higher carbon prices. This alternative position doesn’t appear to have a standard name, so let me call it the “climate-policy big bang.”. . .
Personally, I lean toward the big-bang view.
How can governments tackle climate change while maintaining reasonable growth, even in the short term? How can they turn on the green innovation machine? We find that 1. both public intervention and private initiative are indispensable: governments must initially redirect market forces towards cleaner energy before market forces can take over; 2. climate change policy should combine a carbon price with high initial clean-innovation R&D subsidies: the carbon price would need to be much higher if used alone; 3. policymakers must act now: delaying clean innovation policies results inThomas Friedman seems to get this when he finishes up his hypothetical "guns blazing" speech by the president:
much higher costs; 4. developed countries must act as technological leaders in implementing new environmental policies and should smooth access to new clean technologies for less-developed countries.
". . . It will make us more energy secure, environmentally secure and strategically secure. Sure, our opponents will scream ‘carbon tax!’ Well, what do you think you’re paying now to OPEC? The only difference between me and my opponents is that I want to keep any revenue we generate here to build American schools, American highways, American high-speed rail, American research labs and American economic strength. It’s just a little tick I have: I like to see our spending build our country. They don’t care. They are perfectly happy to see all the money you spend to fill your tank or heat your home go overseas, so we end up funding both sides in the war on terrorism — our military and their extremists."The ironic thing about Friedman's impassioned speech is how little money in US climate legislation has been targeted towards energy innovation. While the Senate bill hasn't been released, I would be surprised if it had more than a small amount of investment in innovation in parallel with putting a price on carbon. (How much investment is needed to transform the energy economy? Think about US investments in innovation in health or the mititary, perhaps $30-$100 billion annually for decades.)
. . . starting this weekend, the German government will attempt to rekindle international efforts to save the Earth's climate as it hosts a conference at the Petersberg Hotel near Bonn. But, at the same time, German Chancellor Angela Merkel has now decided to change the course of her climate policy.What is to emerge is not made clear in the article, but there are some interesting suggestions about what might:As recently as last December she said: "If we don't succeed in limiting global warming to 2 degrees, then the costs of the resulting damages will be many times higher than what we now, with a change in our lifestyle, can achieve."
Now it's a different story: Merkel will no longer endeavor to contractually implement the 2-degree target -- in other words, to reach a legally binding agreement with specific reductions in greenhouse gas emissions. She doesn't want to be snubbed again because she has realized that important countries won't lend their support the next time around either. This was confirmed two weeks ago at the nuclear summit in Washington by Chinese President Hu Jintao and Indian Prime Minister Manmohan Singh.
The Limits of Germany's Influence
Germany now has to acknowledge the limits of its influence. The country's climate policy was an attempt to play a leadership role on the grand stage. But the others didn't follow suit. On paper they praise the objective, but they are not prepared to do more than make vague promises. The only way forward, it seems, is by taking side roads. But even there the Chinese and the Indians won't simply trot along behind the Germans.
On the domestic front, this threatens to bring down the great symbol of Germany's efforts to remodel society in line with a climate-friendly lifestyle and mode of production. If Merkel is no longer fighting on the international stage to achieve the 2-degree target, how does she intend to convince her fellow Germans that they have to change anything? A domestic temperature target would be absurd.
After having dreamt of achieving the great objective, now it's time for realpolitik. Merkel and Röttgen had to admit that countries like China and India will not submit to a mandatory target that others have contrived. They are continuing to pursue their climate policies, but are focusing strictly on domestic issues -- and neither is willing to relinquish any of their sovereignty. Germany is adapting to this and now plans to launch concrete climate protection projects with individual partner countries. Röttgen speaks of a new approach: "In Bonn we want to create a new level that will allow us not only to point towards CO2 targets from above, but also to launch projects from below that produce measurable successes." This includes forest protection and more concrete cooperation in the transfer of environmentally friendly technologies. . .A technology-centered approach focused on "win-win-win" rather than sacrifice makes good sense, but it will probably take a while to take hold in Germany, and the EU more generally. But it will, eventually.
Röttgen is already trying to move forward by emphasizing additional arguments beyond the 2-degree target -- primarily based on economic reasoning. "We can live well and cheaply now at our children's expense over the next 20 years or invest in long-term opportunities," he says. German environmental technologies are an export hit, "one of the leading sources of prosperity that we have," and crude oil and other natural resources are becoming increasingly scarce, he adds. But he still hasn't made any significant headway in convincing the ministers in his coalition government -- which is comprised of Merkel's conservative Christian Democrats and the business-friendly Free Democratic Party -- that climate protection is not a hopeless issue plagued by sacrifice, but rather a "win-win-win opportunity" for industry, the environment and future generations. Here, too, he is fighting an uphill battle.
. . . arguments about climate change are invested with powerful ideological instincts and interests. Solutions to climate change vary from market-based mechanisms and technology-driven innovation to justice-focused initiatives and low-consumption localism as a form of lifestyle, each carrying ideological commitments.Mike's thoughtful views came to mind as I read Joe Romm's predictable reaction to Judy Curry's efforts to focus attention on the integrity of climate science and to engage in a respectful discussion of related issues (links added):It is despairingly naive to reduce such intense (and legitimate) arguments to the polarities of ‘belief’ or ‘scepticism’ about science.
Belief in what, exactly? Is it the belief that humans are contributing significantly to climate change? Yes, science can speak authoritatively on this question. Or a belief that the possible consequences of future change warrant an emergency policy programme? Scientific evidence here offers only one strand of the necessary reasoning. Or a belief that such an emergency policy programme must be secured through an international, legally binding targets-and-timetables approach, such as Kyoto? On this, science has very little to say.
On the other hand, what exactly is it that the so-called sceptics are charged with? Scepticism that environmental scientists, businesses and central government are in collusion to fabricate evidence? This is barely plausible. Or scepticism that claims about the future that are based on scientific knowledge are sometimes overstretched and underplay uncertainties? The latter is a warning that all would do well to heed.
The problem here is the tendency to reduce all these complexities into a simple litmus test of whether or not someone believes orthodox scientific claims about the causes and consequences of climate change. This is dividing the world into goodies and baddies, believers and deniers. Climate change demands of us something much more sophisticated than this.
She has joined the WUWT and McIntyre tribe.Curry is unfazed, and keeps her sense of humor:
Now that I have apparently been unambiguously tossed out the “warmist blogger” tribe by Joe Romm who is the arbiter of political correctness with regards to global warming alarmism, what is a poor tribeless person like me to do?But she also realizes that tribalism is here to stay, but she does not like its consequences:
Like Hulme, Curry rejects such naive and simplistic ways to view the climate debate. Yet if the most ardent of antagonists in the climate debate, on either side, believe that we all have to be members of tribes, please note my request to be in the non-tribe tribe with Hulme and Curry ;-)So I guess all my discussion about tribalism and the harm it can do didn’t sink in. My whole point is that we need to have a respectful and reasoned dialogue with a broad range of people. And I have to say that it is easier for me, a “moderate warmist,” to have a respectful and reasoned dialogue at climateaudit than it is at climateprogress. A sad state of affairs, and one that damages the credibility of the warmists.
The definition of tribalism that i have been using is this:
Tribalism is defined here as a strong identity that separates one’s group from members of another group, characterized by strong in-group loyalty and regarding other groups differing from the tribe’s defining characteristics as inferior.
Tribalism is antithetical to science, it is far worse than groupthink.