POLS2094 Week 10: Energy and the environment

Transboundary

Most problems transcend borders so transboundary solutions are necessary.

International environment agreement

Examples: UN Framework Convention on CC, Kyoto protocol, Paris agreement, Convention on International Trade in Endangered Species, Montreal protocol

Main functions: Standards and coordination, Information and monitoring, Reduce transaction costs, Maintains reputation

Int'l climate negotiations and growing regime complexity -> Increasingly multilevel governance (regional, national, subnational) + Expanded scope from GHG emissions to biodiversity, ocean, water health. +Climate finance mechanisms + Increasing non-state actor engagement.

Ozone layer depletion

Protective layer in atmosphere that shields earth from UV radiation.

Emissions rapidly depleted the ozone layer and pathbreaking international cooperation resulted.

Negative externalities

Unintended costs on third parties due to the (over) production or consumption of a good.

An impediment to collective action.

Distributional conflict

Arises from disputes over how resources are allocated, often leading to clashes between states, private sectors, and communities.

North/South distributional conflicts including responsibility for historical emissions.

Climate finance shortfalls

Tech transfers

Climate migration

Human rights considerations.

Montreal Protocol (1987)

A landmark international treaty designed to protect the Earth's ozone layer by phasing out the production and consumption of ozone-depleting substances (ODS) like chlorofluorocarbons (CFCs).

Tragedy of the commons

Impediment to collective action.

A situation where individuals acting in their own self-interest deplete a shared resource, ultimately harming everyone involved.

Deforestation

Destruction of forests.

Duh.

Mostly attributable to agricultural expansion.

Free riding

Smaller countries waiting for major powers to act.

In general, when entities enjoy benefits without paying the associated costs.

Collective action problem.

Energy sector

A broad industry encompassing the production, transmission, and distribution of energy resources, including fossil fuels, renewables, and other forms of energy.

Land degradation

A process where land loses its natural health and productivity due to various factors, both natural and human-induced

Biodiversity

The variety of plant and animal life in the world or in a particular habitat, a high level of which is usually considered to be important and desirable.

(Nature) negative financial flows

The five industries channeling most of the negative financial flows - construction, electric utilities, real estate, oil and gas, and food and tobacco - represent 16% of total investment flows but 43% of nature-negative flows. Government spending on environmentally harmful subsidies to agriculture, fossil fuels, fisheries and forestry is estimated at US$1.7 trillion in 2022.

Energy security

Focuses on ensuring a reliable, affordable, and secure energy supply, particularly for electricity, gas, and liquid fuel.

Turnover cycle

For fossil fuels consuming capital like cars and power plants are slow.

Causes slow transitions for the energy transition.

Regulatory arbitrage

Between states with implemented policies and those that have not.

Causes slow transitions for the energy transition.

Resource nationalism

The tendency of people and governments to assert control over natural resources located on their territory.

An international dimension of fossil fuel politics.

Market concentration

A measure of how many companies dominate an industry.

Issues:

- Previously common to have a monopoly for the provision of utility services.

- Carbon credit efforts have been accused of greenwashing.

Carbon tax

Neoliberal (and top down) climate policy approach - it is a market mechanism.

A fee levied on the carbon content of fossil fuels, or more broadly, on greenhouse gas emissions.

Carbon tariff

Taxes on imports based on the amount of carbon used in making/shipping the products that are seen to be shrinking their global responsibility to tackle climate change.

It's a market mechanism.

Supply chain vulnerability

Weaknesses within a network of suppliers, processes, and infrastructure that can be exploited, hindering operations and potentially leading to disruptions.

Carbon market

A system where entities (like businesses or governments) can buy and sell credits representing emissions reductions, essentially putting a price on pollution.

Goal is to reduce the total credits available over time.

Non-degradation

A clause in IEA's that says: don't lower standards to attract trade/investment.

Example: Nord Stream Pipelines

The Nord Stream pipelines, comprising Nord Stream 1 (NS1) and Nord Stream 2 (NS2), are offshore natural gas pipelines that run from Russia to Germany under the Baltic Sea. NS1 began operations in 2011, while NS2 was completed in 2021 but never received an operating permit.

A major point of political contention, especially between the United States and Europe. The US opposed the pipeline, fearing it would increase Europe's dependence on Russian gas and strengthen Russia's influence in Europe, while some European nations, particularly Germany, strongly supported it. The pipeline was also a source of conflict within the EU itself, with some member states opposing it on security and political grounds.