WASHINGTON — President-elect Donald J. Trump’s choice of a fossil-fuel advocate and climate-change denier to head the Environmental Protection Agency
comes at a moment when the American energy market has already shifted
away from the most polluting fossil fuels, driven more by investors and
economics than by federal regulations.
Those
market forces could make Mr. Trump’s promise to create at least half a
million energy jobs a year in the nation’s coal mines and oil shale fields all but impossible.
But
if Mr. Trump’s promised jobs are unlikely to materialize, the impact on
the planet from his policies would be significant. Without additional
government policies, energy and environmental experts say, the shift
from coal, oil and natural gas
will not be rapid or substantial enough to stave off the worst impacts
of a warming atmosphere, including rising sea levels, more powerful
storms, more devastating droughts and food and water shortages.
“The
good news is that on its own, the U.S. economy has become less carbon
intensive, and that trend will continue overall,” said Robert N.
Stavins, the director of the environmental economics program at Harvard
University. The bad news, he said, is that markets alone will not lower
emissions enough to offset the worst impacts of global warming.
President
Obama’s Clean Power Plan was already criticized for not doing enough.
Even if the plan was implemented, it would not reach the targets set
under last year’s Paris climate change accord, which committed nearly
every country to take action to curb global warming. The targets “will
be unachievable,” Mr. Stavins said.
Mr. Trump formally tapped Scott Pruitt, the Oklahoma attorney general, to head his E.P.A. on Thursday, with an announcement on Facebook that emphasized job creation and energy production over environmental protection.
“Mr.
Pruitt will be deeply involved in the implementation of President-elect
Trump’s energy plan, which will move America toward energy
independence, create millions of new jobs and protect clean air and
water,” the statement said. “Mr. Pruitt will ensure that we conserve our
natural habitats, reserves and resources, while unleashing an energy
revolution that will bring vast new wealth to our country.”
That
rebalancing of priorities, the president-elect said, will create “at
least a half million jobs each year” and “$30 billion in higher wages.”
The
irony of Mr. Pruitt’s zeal to target President Obama’s climate change
and environmental rules, which focus on reducing carbon pollution from
coal-fired power plants, is that many of the nation’s largest electric
utilities — the entities that would be regulated under the plan — have
already begun plans to shutter coal plants and build new wind and solar
farms.
Even the chief executives of coal companies agree that Mr. Pruitt can only do so much to restore the industry.
Mr.
Pruitt “is going to do what needs to be done at the E.P.A. — to cut the
numbers of bureaucrats there who have done nothing but write
regulations daily, and send them back to the radical environmentalists
who wrote them,” said Robert E. Murray, the chief executive of the
Ohio-based Murray Energy Corporation.
However, he added, “Coal can’t come back to where it was.”
The plummeting cost of wind and solar energy,
helped along by federal tax incentives, has led to a boom in the use of
such “no-carbon” power sources. And the nation’s largest electric
utilities, many of which have joined Mr. Pruitt in his lawsuit against
the climate regulations, have at the same time realigned their long-term
investment strategies.
Nicholas
Akins, chief executive officer of American Electric Power, an
Ohio-based electric utility that generates power in 11 states, said in
an interview shortly after Election Day that his company is making
investments in energy generation aimed at 20, 30 and 40 years from now.
Whether or not Mr. Trump dismantles the Clean Power Plan, he said he
assumes that in the long run, carbon pollution will eventually be
regulated.
“Clean
Power Plan or not, there will be something in the future on carbon
control. So there’s no question that the industry is moving forward with
cleaner energy,” he said. “We will not be building large coal
facilities. We’re not stopping what we’re doing based on the new
administration. We need to make long-term capital decisions. I don’t
think the course will change.”
But
company-driven shifts alone will still not be enough to create the
steep drop-off in carbon pollution that scientists say is necessary. The
use of wind power grew by more than 100 percent between 2010 and the
end of 2015, while the use of large-scale solar grew by more than 20
times in that same period, according to the Energy Information
Administration. But renewable sources, excluding hydroelectric
power, still only represent a small fraction of the American energy
economy, providing just a little more than 7 percent of the country’s
electricity.
Carbon
dioxide emissions peaked in 2007 at six billion metric tons, declining
slightly to 5.4 billion metric tons by 2014. But they would need to
decline to about 4.8 billion metric tons annually by 2025 and 1.2
billion metric tons annually by 2050 if the United States is to meet its
pledges under the Paris accord.
“To
get there would require reducing emissions about 5 percent per year
over the next decade. In order to reduce that fast, we would need to be
avoiding new fossil fuel infrastructure and actively shutting down old
fossil fuel infrastructure before the end of its natural life,” said
Andrew Jones, the director of Climate Interactive, a research firm.
“That’s not possible without aggressive federal policy.”
At
the same time, analysts are skeptical that Mr. Trump’s efforts to roll
back the climate change rules would bring back the tens of thousands of
mining jobs that have been lost in the market shift away from coal, let
alone create large numbers of new jobs. Electric utilities like American
Electric Power turned away from investing in coal largely because of
the glut of cheap natural gas, thanks to hydraulic fracturing, or
fracking.
“The
market defines the opportunities for coal,” said Kevin Book, an analyst
with ClearView Energy Partners, a nonpartisan research firm. “Electric
utilities that have shut down coal plants are not going to reopen them.
Mines that have been mothballed because they are not economic are not
going to be taken out of mothballs.”
He
said coal could at least remain a part of America’s energy mix if Mr.
Pruitt made headway in removing cumbersome regulations — and if he could
successfully strip away subsidies for renewables. Last year, the
federal government paid out $2.2 billion in tax incentives to the
industry and $1 billion to the solar industry. The wind incentive is set
to start declining in value next year until it ends in 2020, while the
investment credit for solar is to phase out between 2019 and 2022.
“We’re
paying taxes to manufacture windmills. You give me billions of dollars,
and I’ll create jobs,” Mr. Murray, the coal company executive, said.
But
despite the opposition of the coal industry and incoming administration
to climate change policy, the tax incentives, which have been enacted
by Congress in both Democratic and Republican majorities for over a
decade, are unlikely to disappear. Among their greatest beneficiaries
are the windswept, sun-soaked districts in Republican strongholds like
Kansas, Texas and Arizona, and Rust Belt districts that manufacture wind turbines and solar panels.
“I
don’t see those renewable tax incentives going away anytime soon,” Mr.
Book said. “Voters in many of these Trump districts are benefiting from
them.”
No comments:
Write comments