Could congressionally mandated incentives lead to deployment of large-scale CO2 capture, facilities for enhanced oil recovery CO2 markets and geologic CO2 storage?

In passing the Bipartisan Budget Act of 2018, Congress reformed and strengthened a section of the tax code, 45Q, which provides tax credits of up to $35/ton CO2 for the capture and utilization of CO2 in qualifying applications such as enhanced oil recovery (EOR) and up to $50/ton CO2 for CO2 that is captured and permanently stored in a geologic repository. Earlier versions of the tax credit with lower credit values generated limited interest. This change to the tax code could potentially alter U.S. energy systems. This paper examines the effect of the increased 45Q credits on CO2 capture, utilization and storage (CCUS) deployment in the United States and on petroleum and power production. A range of potential outcomes is explored using five modeling tools. The paper goes on to explore the potential impact of possible modifications of the current tax credit including extension of its availability in time, the period over which 45Q tax credits can be utilized for any given asset and increases in the value of the credit as well as interactions with technology availability and carbon taxation. The paper concludes that 45Q tax credits could stimulate additional CCUS beyond that which is already underway.

The future evolution of global natural gas trade.

Understanding the long-term evolution of natural gas is critical in the context of long-term energy system transitions. Here, we explicitly represent traded pipeline and liquefied natural gas (LNG) infrastructure in the Global Change Analysis Model (GCAM). We find LNG to make up a dominant share of gas trade, as it can be flexibly shipped across regions. New global investments in LNG and pipeline export infrastructure respectively range from 230 to 840 and 70-620 million tons per annum (MTPA) by 2050 across scenarios; the lower end of this range is achieved through transitioning to low-carbon energy systems along with limited trade. Our results also highlight diverging implications for regions based on their gas trade profiles. For example, Russia, which produces gas largely for pipeline exports may experience greater production losses due to liquefaction and shipping improvements and geopolitical shifts than regions oriented more toward domestic and LNG markets, such as USA and Middle East.

High-ambition climate action in all sectors can achieve a 65% greenhouse gas emissions reduction in the United States by 2035.

Under the next cycle of target setting under the Paris Agreement, countries will be updating and submitting new nationally determined contributions (NDCs) over the coming year. To this end, there is a growing need for the United States to assess potential pathways toward a new, maximally ambitious 2035 NDC. In this study, we use an integrated assessment model with state-level detail to model existing policies from both federal and non-federal actors, including the Inflation Reduction Act, Bipartisan Infrastructure Law, and key state policies, across all sectors and gases. Additionally, we develop a high-ambition scenario, which includes new and enhanced policies from these actors. We find that existing policies can reduce net greenhouse gas (GHG) emissions by 44% (with a range of 37% to 52%) by 2035, relative to 2005 levels. The high-ambition scenario can deliver net GHG reductions up to 65% (with a range of 59% to 71%) by 2035 under accelerated implementation of federal regulations and investments, as well as state policies such as renewable portfolio standards, EV sales targets, and zero-emission appliance standards. This level of reductions would provide a basis for continued progress toward the country's 2050 net-zero emissions goal.

Taking stock of nationally determined contributions: Continued ratcheting of ambition is critical to limit global warming to 1.5°C.

As countries take stock of progress made in accomplishing their climate goals ahead of COP28 this year, it is increasingly apparent that countries must ratchet ambition in policy areas such as non-CO2 gases and carbon dioxide removal, while halting deforestation to lead the globe on a path consistent with the goals of the Paris Agreement.

Role of non-CO2 greenhouse gas emissions in limiting global warming.

Current climate pledges are insufficient to achieve the aspirational goal of limiting global warming to 1.5°C. Here we discuss the critical role that non-CO2 greenhouse gas emissions might play in global climate change stabilization, and challenges and opportunities to pivot research and policy focus towards accelerated reductions of non-CO2 gases.

Ratcheting of climate pledges needed to limit peak global warming.

The new and updated emission reduction pledges submitted by countries ahead of COP26 represent a meaningful strengthening of global ambition compared to the 2015 Paris pledges1,2. Yet, limiting global warming below 1.5°C this century will require countries to ratchet ambition for 2030 and beyond2-6. We explore a suite of emissions pathways in which countries ratchet and achieve ambition through a combination of increasing near-term ambition through 2030, accelerating post-2030 decarbonization, and advancing the dates for national net-zero pledges. We show that ratcheting near-term ambition through 2030 will be crucial to limiting peak temperature changes. Delaying ratcheting ambition to beyond 2030 could still deliver end-of-century temperature change of less than 1.5°C, but that would result in higher temperature overshoot over many decades with the potential for adverse consequences. Ratcheting near-term ambition would also deliver benefits from enhanced non-CO2 mitigation and facilitate faster transitions to net-zero emissions systems in major economies.

Impacts of long-term temperature change and variability on electricity investments.

Long-term temperature change and variability are expected to have significant impacts on future electric capacity and investments. This study improves upon past studies by accounting for hourly and monthly dynamics of electricity use, long-term socioeconomic drivers, and interactions of the electric sector with rest of the economy for a comprehensive analysis of temperature change impacts on cooling and heating services and their corresponding impact on electric capacity and investments. Using the United States as an example, here we show that under a scenario consistent with a socioeconomic pathway 2 (SSP2) and representative concentration pathway 8.5 (RCP 8.5), mean temperature changes drive increases in annual electricity demands by 0.5-8% across states in 2100. But more importantly, peak temperature changes drive increases in capital investments by 3-22%. Moreover, temperature-induced capital investments are highly sensitive to both long-term socioeconomic assumptions and spatial heterogeneity of fuel prices and capital stock characteristics, which underscores the importance of a comprehensive approach to inform long-term electric sector planning.

Agricultural impacts of sustainable water use in the United States.

Governance measures such as restrictions on groundwater pumping and adjustments to sectoral water pricing have been suggested as response strategies to curtail recent increases in groundwater pumping and enhance sustainable water use. However, little is known about the impacts of such sustainability strategies. We investigate the implications of such measures, with the United States (U.S.) as an example. Using the Global Change Analysis Model (GCAM) with state-level details in the U.S., we find that the combination of these two governance measures can drastically alter agricultural production in the U.S. The Southwest stands to lose upwards of 25% of their total agricultural production, much of which is compensated for by production increases in river basins on the east coast of the U.S. The implementation of future sustainable water governance measures will require additional investments that allow farmers to maximize production while minimizing water withdrawals to avoid potentially detrimental revenue losses.

Power sector investment implications of climate impacts on renewable resources in Latin America and the Caribbean.

Climate change mitigation will require substantial investments in renewables. In addition, climate change will affect future renewable supply and hence, power sector investment requirements. We study the implications of climate impacts on renewables for power sector investments under deep decarbonization using a global integrated assessment model. We focus on Latin American and Caribbean, an under-studied region but of great interest due to its strong role in international climate mitigation and vulnerability to climate change. We find that accounting for climate impacts on renewables results in significant additional investments ($12-114 billion by 2100 across Latin American countries) for a region with weak financial infrastructure. We also demonstrate that accounting for climate impacts only on hydropower-a primary focus of previous studies-significantly underestimates cumulative investments, particularly in scenarios with high intermittent renewable deployment. Our study underscores the importance of comprehensive analyses of climate impacts on renewables for improved energy planning.

Assessing China's efforts to pursue the 1.5°C warming limit.

Given the increasing interest in keeping global warming below 1.5°C, a key question is what this would mean for China's emission pathway, energy restructuring, and decarbonization. By conducting a multimodel study, we find that the 1.5°C-consistent goal would require China to reduce its carbon emissions and energy consumption by more than 90 and 39%, respectively, compared with the "no policy" case. Negative emission technologies play an important role in achieving near-zero emissions, with captured carbon accounting on average for 20% of the total reductions in 2050. Our multimodel comparisons reveal large differences in necessary emission reductions across sectors, whereas what is consistent is that the power sector is required to achieve full decarbonization by 2050. The cross-model averages indicate that China's accumulated policy costs may amount to 2.8 to 5.7% of its gross domestic product by 2050, given the 1.5°C warming limit.

Can updated climate pledges limit warming well below 2°C?

Increased ambition and implementation are essential.

Global roll-out of comprehensive policy measures may aid in bridging emissions gap.

Closing the emissions gap between Nationally Determined Contributions (NDCs) and the global emissions levels needed to achieve the Paris Agreement's climate goals will require a comprehensive package of policy measures. National and sectoral policies can help fill the gap, but success stories in one country cannot be automatically replicated in other countries. They need to be adapted to the local context. Here, we develop a new Bridge scenario based on nationally relevant, short-term measures informed by interactions with country experts. These good practice policies are rolled out globally between now and 2030 and combined with carbon pricing thereafter. We implement this scenario with an ensemble of global integrated assessment models. We show that the Bridge scenario closes two-thirds of the emissions gap between NDC and 2 °C scenarios by 2030 and enables a pathway in line with the 2 °C goal when combined with the necessary long-term changes, i.e. more comprehensive pricing measures after 2030. The Bridge scenario leads to a scale-up of renewable energy (reaching 52%-88% of global electricity supply by 2050), electrification of end-uses, efficiency improvements in energy demand sectors, and enhanced afforestation and reforestation. Our analysis suggests that early action via good-practice policies is less costly than a delay in global climate cooperation.

Taking stock of national climate policies to evaluate implementation of the Paris Agreement.

Many countries have implemented national climate policies to accomplish pledged Nationally Determined Contributions and to contribute to the temperature objectives of the Paris Agreement on climate change. In 2023, the global stocktake will assess the combined effort of countries. Here, based on a public policy database and a multi-model scenario analysis, we show that implementation of current policies leaves a median emission gap of 22.4 to 28.2 GtCO2eq by 2030 with the optimal pathways to implement the well below 2 °C and 1.5 °C Paris goals. If Nationally Determined Contributions would be fully implemented, this gap would be reduced by a third. Interestingly, the countries evaluated were found to not achieve their pledged contributions with implemented policies (implementation gap), or to have an ambition gap with optimal pathways towards well below 2 °C. This shows that all countries would need to accelerate the implementation of policies for renewable technologies, while efficiency improvements are especially important in emerging countries and fossil-fuel-dependent countries.

Quantifying operational lifetimes for coal power plants under the Paris goals.

A rapid transition away from unabated coal use is essential to fulfilling the Paris climate goals. However, many countries are actively building and operating coal power plants. Here we use plant-level data to specify alternative trajectories for coal technologies in an integrated assessment model. We then quantify cost-effective retirement pathways for global and country-level coal fleets to limit long-term temperature change. We present our results using a decision-relevant metric: the operational lifetime limit. Even if no new plants are built, the lifetimes of existing units are reduced to approximately 35 years in a well-below 2 °C scenario or 20 years in a 1.5 °C scenario. The risk of continued coal expansion, including the near-term growth permitted in some Nationally Determined Contributions (NDCs), is large. The lifetime limits for both 2 °C and 1.5 °C are reduced by 5 years if plants under construction come online and 10 years if all proposed projects are built.

Environmental co-benefits and adverse side-effects of alternative power sector decarbonization strategies.

A rapid and deep decarbonization of power supply worldwide is required to limit global warming to well below 2 °C. Beyond greenhouse gas emissions, the power sector is also responsible for numerous other environmental impacts. Here we combine scenarios from integrated assessment models with a forward-looking life-cycle assessment to explore how alternative technology choices in power sector decarbonization pathways compare in terms of non-climate environmental impacts at the system level. While all decarbonization pathways yield major environmental co-benefits, we find that the scale of co-benefits as well as profiles of adverse side-effects depend strongly on technology choice. Mitigation scenarios focusing on wind and solar power are more effective in reducing human health impacts compared to those with low renewable energy, while inducing a more pronounced shift away from fossil and toward mineral resource depletion. Conversely, non-climate ecosystem damages are highly uncertain but tend to increase, chiefly due to land requirements for bioenergy.