Global Warming: What You Need to Know

Policies and Proposals

Federal Global Warming Emissions Reduction Policies

Overwhelming scientific evidence of the adverse effects of climate change should compel the U.S. to establish mandatory federal policies to reduce greenhouse gas (GHG) emissions steadily and quickly. Congress can achieve these goals by setting a national cap on global warming pollution from all sectors, and by instituting policies that include requirements for more efficient use of electricity and a national minimum requirement for renewable energy use by utilities. Congress took a significant step forward with the passage of the 2007 energy bill that increased the combined fuel economy standard for cars and trucks – a standard that promises to cut nearly 200 million metric tons of global warming pollution by 2020. These policies will send strong market signals to spur industry and consumer use of existing low emission – “clean” – technologies and products. In addition, the government should invest immediately in developing, testing, and deploying the next generation of emission-reducing technologies, including methods for capturing and storing carbon dioxide from coal-fired power plants.

Federal Global Warming Pollution Cap

• The Intergovernmental Panel on Climate Change has concluded that in order to limit global warming to 2.8-3.2ºC above pre-industrial levels, or an atmospheric GHG concentration of 550 parts per million (considered a “medium” climate stabilization scenario), industrialized nations like the United States would need to cut their emissions by 10-30% relative to 1990 levels by 2020 and up to 90% by 2050. Congress should enact national legislation that requires U.S. emissions limits that are informed by this consensus-based science and recognize the U.S.' significant contribution to current pollution levels.

• To do so, it is essential that the United States moves away from today's ineffective voluntary emissions reductions approach – allowing U.S. GHGs to rise by more than 16% since 1990 – to a mandatory cap set by Congress on the overall amount of domestic GHG emissions allowed to be released into the atmosphere. Companies would meet the cap by reducing their emissions or through buying permits from a market of emissions allowances. This approach, called a "cap-and-trade" system, provides businesses and industry with flexibility, while putting a price on carbon that provides an economic incentive for clean technology innovation and deployment. The cap-and-trade system would also necessitate an accurate, comprehensive, and mandatory system of emissions reporting and registry to track and verify reductions. (See also the Pew Environment Group's fact sheet entitled, “The Basics of a Cap-and-Trade Program.”)

Automobile Fuel Economy Requirements

In December 2007, Congress passed the Energy Independence and Security Act, which included a provision to raise fleet-wide auto fuel efficiency standards for all passenger vehicles to 35 miles per gallon by 2020. This increase in fuel economy will reduce global warming pollution by 192 million metric tons in 2020.

Energy Efficiency Measures

320 million tons of carbon dioxide pollution could be saved annually in 2020 by the energy efficiency measures described below.

• Energy efficiency programs can benefit participants in a cap-and-trade system by helping them meet the cap at a lower cost. A study by the Northeast Regional Greenhouse Gas Initiative showed that doubling the current level of spending for energy efficiency programs in the northeast would keep carbon emissions in the region flat through 2024, while reducing energy bills for customers by an average of $109 annually by 2021. The same study showed energy efficiency initiatives would also stimulate private sector job growth in the region by 0.8% in 2021.

• An Energy Efficiency Resource Standard (EERS) could require utilities to save energy by generating and transmitting electricity more efficiently. Utilities or government agencies could also provide incentives to consumers to use electricity more efficiently as part of this program.

Renewable Energy Standard

434 million tons of carbon dioxide pollution could be saved annually in 2020 by the federal renewable energy standard described below.

• Twenty six states and the District of Columbia have set renewable energy standards (RES) to increase the use of renewable sources – like solar, wind, and geothermal power – to generate electricity. In 2006, almost 10% of U.S. electricity came from renewable energy (2.4%) and hydroelectricity (7.1%) combined. A federal RES would require that utilities nationwide increase the percentage of electricity generated from renewable sources.
• A federal RES would also give a boost to the renewable energy industry and stimulate job growth while saving consumers money. The Union of Concerned Scientists estimates that a 20% renewable energy requirement by 2020 would generate 355,000 new jobs and save consumers $49.1 billion on their electricity and natural gas bills.

Investments in New Technology

While the policies to reduce emissions outlined above all involve technologies that are available today, Congress should also invest in the next generation of clean technologies.

• Technology innovation is essential to lowering the costs of reducing emissions. A recent report by the Pacific Northwest National Laboratory concluded, “A technology strategy is… an essential complement to national and international policies aimed at limiting greenhouse gas emissions and enhancing adaptation to climate change.”
• Carbon capture and sequestration (CCS), in which carbon dioxide from coal-fired power plants or other polluting industries is captured and injected underground for long-term storage, is just one of several promising low-carbon technologies that government could encourage. The Massachusetts Institute of Technology recently released a landmark analysis outlining the importance of CCS for reducing pollution in the future and the steps needed to assess, test, and demonstrate the effectiveness and safety of CCS for wide-scale use. The study emphasizes the need for several full-scale CCS tests under various geologic conditions to develop the knowledge and regulations to ensure that it can be done safely and reliably. In addition, federal standards must be set for selecting potential storage sites to make sure that the carbon is safely and permanently stored. (See also the Pew Environment Group's fact sheet entitled “Carbon Sequestration: The Key to Coal's Future?”)

A cap-and-trade system, along with complementary policies for increased fuel economy, more efficient energy use, and a national renewable energy standard, will provide the right incentives for industry to adopt the clean technologies available today. Federal investment in new technologies will ensure the next generation of clean technologies is available as soon as possible to further reduce emissions at the lowest cost.

Next: The Basics of a Cap-and-Trade Program