Energy

With 28th Conference of the Parties (COP 28) of the United Nations Framework Convention on Climate Change well underway, Jonathan Banks, the global director of the Methane Pollution Prevention Program at the Clean Air Task Force (CATF), is the guest in a special mid-COP episode of “Environmental Insights: Discussions on Policy and Practice from the Harvard Environmental Economics Program.” The podcast is produced by the Harvard Environmental Economics Program.

In late 2017, Mexico made headlines as Italian company Enel bid what was then a world-record low price for renewable energy in the country’s third such energy auction. This development was possible due to the historical and sweeping energy reforms passed with broad support in Mexico in 2013. Then-President Enrique Peña Nieto had succeeded where previous Mexican presidents had failed, reversing decades of resource nationalism and overhauling the energy sector through constitutional reforms that gave the private sector a larger role and advantaged renewable energy in Mexico’s economy. The 2017 auction seemed to indicate Mexico’s bright future not only as a conventional oil producer, but also as a clean energy power.

Joel Clement characterizes the growing greenhouse-gas emissions from the commercial shipping industry as well as the efforts of the United Nations body, the International Maritime Organization, to reduce these emissions as unacceptable.

Former White House advisor Jason Bordoff, professor and founding director of the Center on Global Energy Policy at Columbia University School of International and Public Affairs (SIPA), says the incoming Biden-Harris Administration will have the opportunity to both lift the nation out of recession and combat global climate change by crafting a thoughtful economic stimulus plan containing a significant green energy investment component.

Stephan Walt writes that Trump's foreign-policy instincts might be more sound—but he has forfeited the chance to lead.

The geopolitical and geo-economic forces wrought by the coronavirus pandemic, as examined previously in this series, are likely to slow the transition to a more sustainable global energy mix. Fortunately, the pandemic has also resulted in governments gaining vastly greater influence over whether this shift stalls or accelerates.

For most people, there was nothing to celebrate when the International Monetary Fund downgraded its outlook for global economic growth in June, anticipating a contraction of 4.9% for 2020. Yet for others, such as the small but persistent group of economists and others known as the “degrowth movement,” the Covid-induced economic slowdown has a silver lining.

The search for silver linings to the coronavirus pandemic has come up woefully short. But one hopeful — and much talked of — prospect is that the disruption will accelerate the global shift to a more sustainable energy future.

The authors argue that more determined efforts to globalize renewable energy transmission can confer significantly higher economic and environmental benefits from renewables on billions of people. This can be done by exploiting spatial differences between electricity loads and net renewable generation across time zones (temporal arbitrage) and latitude (seasonal arbitrage). Using very long distance, ultra-high voltage (UHV) transmission infrastructure, temporal and spatial arbitrage can move low-cost clean electricity from areas with excess capacity to high demand zones in other countries and even continents.

Today’s economic crisis leaves us with an unsettling and perplexing regret. Why weren’t financial portfolios already adjusted for risks that stem from health events such as pandemics? After all, financial portfolios are adjusted for liquidity risks, market risks, credit risks, and even operational and political risks.