Environmental finance is a field within finance that employs market-based environmental policy instruments to improve the ecological impact of investment strategies. The primary objective of environmental finance is to regress the negative impacts of climate change through pricing and trading schemes. The field of environmental finance was established in response to the poor management of economic crises by government bodies globally. Environmental finance aims to reallocate a businesses resources to improve the sustainability of investments whilst also retaining profit margins.
A fossil fuel is a hydrocarbon-containing material such as coal, oil, and natural gas, formed naturally in the Earth's crust from the remains of dead plants and animals that is extracted and burned as a fuel. Fossil fuels may be burned to provide heat for use directly, to power engines, or to generate electricity. Some fossil fuels are refined into derivatives such as kerosene, gasoline and propane before burning. The origin of fossil fuels is the anaerobic decomposition of buried dead organisms, containing organic molecules created by photosynthesis. The conversion from these materials to high-carbon fossil fuels typically require a geological process of millions of years.
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama. The company is the second largest utility company in the U.S. in terms of customer base, as of 2021. Through its subsidiaries it serves 9 million gas and electric utility customers in 6 states. Southern Company's regulated regional electric utilities serve a 120,000-square-mile (310,000 km2) territory with 27,000 miles (43,000 km) of distribution lines.
A fossil fuel power station is a thermal power station which burns a fossil fuel, such as coal or natural gas, to produce electricity. Fossil fuel power stations have machinery to convert the heat energy of combustion into mechanical energy, which then operates an electrical generator. The prime mover may be a steam turbine, a gas turbine or, in small plants, a reciprocating gas engine. All plants use the energy extracted from the expansion of a hot gas, either steam or combustion gases. Although different energy conversion methods exist, all thermal power station conversion methods have their efficiency limited by the Carnot efficiency and therefore produce waste heat.
Climate change mitigation is action to limit climate change by reducing emissions of greenhouse gases or removing those gases from the atmosphere. The recent rise in global average temperature is mostly caused by emissions from fossil fuels burning. Mitigation can reduce emissions by transitioning to sustainable energy sources, conserving energy, and increasing efficiency. In addition, carbon dioxide can be removed from the atmosphere by enlarging forests, restoring wetlands and using other natural and technical processes, which are grouped together under the term of carbon sequestration.
The politics of climate change results from different perspectives on how to respond to climate change. Global warming is driven largely by the emissions of greenhouse gases due to human economic activity, especially the burning of fossil fuels, certain industries like cement and steel production, and land use for agriculture and forestry. Since the Industrial Revolution, fossil fuels have provided the main source of energy for economic and technological development. The centrality of fossil fuels and other carbon-intensive industries has resulted in much resistance to climate friendly policy, despite widespread scientific consensus that such policy is necessary.
A low-carbon economy (LCE) or decarbonised economy is an economy based on energy sources that produce low levels of greenhouse gas (GHG) emissions. GHG emissions due to human activity are the dominant cause of observed climate change since the mid-20th century. Continued emission of greenhouse gases will cause long-lasting changes around the world, increasing the likelihood of severe, pervasive, and irreversible effects for people and ecosystems. Shifting to a low-carbon economy on a global scale could bring substantial benefits both for developed and developing countries. Many countries around the world are designing and implementing low-emission development strategies (LEDS). These strategies seek to achieve social, economic, and environmental development goals while reducing long-term greenhouse gas emissions and increasing resilience to the effects of climate change.
The United States produced 5.2 billion metric tons of carbon dioxide equivalent greenhouse gas (GHG) emissions in 2020, the second largest in the world after greenhouse gas emissions by China and among the countries with the highest greenhouse gas emissions per person. In 2019 China is estimated to have emitted 27% of world GHG, followed by the United States with 11%, then India with 6.6%. In total the United States has emitted a quarter of world GHG, more than any other country. Annual emissions are over 15 tons per person and, amongst the top eight emitters, is the highest country by greenhouse gas emissions per person. However, the IEA estimates that the richest decile in the US emits over 55 tonnes of CO2 per capita each year. Because coal-fired power stations are gradually shutting down, in the 2010s emissions from electricity generation fell to second place behind transportation which is now the largest single source. In 2020, 27% of the GHG emissions of the United States were from transportation, 25% from electricity, 24% from industry, 13% from commercial and residential buildings and 11% from agriculture. In 2021, the electric power sector was the second largest source of U.S. greenhouse gas emissions, accounting for 25% of the U.S. total. These greenhouse gas emissions are contributing to climate change in the United States, as well as worldwide.
Fossil fuel phase-out is the gradual reduction of the use and production of fossil fuels to zero, to reduce deaths and illness from air pollution, limit climate change, and to strengthen energy independence. It is part of the ongoing renewable energy transition.
Climate change has led to the United States warming by 2.6 °F since 1970. The climate of the United States is shifting in ways that are widespread and varied between regions. From 2010 to 2019, the United States experienced its hottest decade on record. Extreme weather events, invasive species, floods and droughts are increasing. Climate change's impacts on tropical cyclones and sea level rise also affects regions of the country.
New Energy for America was a plan led by Barack Obama and Joe Biden beginning in 2008 to invest in renewable energy sources, reduce reliance on foreign oil, address global warming issues, and create jobs for Americans. The main objective for the New Energy for America plan was to implement clean energy sources in the United States in order to switch from nonrenewable resources to renewable resources. The plan led by the Obama Administration aimed to implement short-term solutions to provide immediate relief from pain at the pump, and mid- to- long term solutions to provide a New Energy for America plan. The goals of the clean energy plan hoped to: invest in renewable technologies that will boost domestic manufacturing and increase homegrown energy, invest in training for workers of the clean technologies, strengthen the middle class, and help the economy.
Greenhouse gas emissions by Australia totalled 533 million tonnes CO2-equivalent based on greenhouse gas national inventory report data for 2019; representing per capita CO2e emissions of 21 tons, three times the global average. Coal was responsible for 30% of emissions. The national Greenhouse Gas Inventory estimates for the year to March 2021 were 494.2 million tonnes, which is 27.8 million tonnes, or 5.3%, lower than the previous year. It is 20.8% lower than in 2005. According to the government, the result reflects the decrease in transport emissions due to COVID-19 pandemic restrictions, reduced fugitive emissions, and reductions in emissions from electricity; however, there were increased greenhouse gas emissions from the land and agriculture sectors.
The American Clean Energy and Security Act of 2009 (ACES) was an energy bill in the 111th United States Congress that would have established a variant of an emissions trading plan similar to the European Union Emission Trading Scheme. The bill was approved by the House of Representatives on June 26, 2009, by a vote of 219–212. With no prospect of overcoming a threatened Republican filibuster, the bill was never brought to the floor of the Senate for discussion or a vote. The House passage of the bill was the "first time either house of Congress had approved a bill meant to curb the heat-trapping gases scientists have linked to climate change."
A low-carbon fuel standard (LCFS) is an emissions trading rule designed to reduce the average carbon intensity of transportation fuels in a given jurisdiction, as compared to conventional petroleum fuels, such as gasoline and diesel. The most common methods for reducing transportation carbon emissions are supplying electricity to electric vehicles, supplying hydrogen fuel to fuel cell vehicles and blending biofuels, such as ethanol, biodiesel, renewable diesel, and renewable natural gas into fossil fuels. The main purpose of a low-carbon fuel standard is to decrease carbon dioxide emissions associated with vehicles powered by various types of internal combustion engines while also considering the entire life cycle, in order to reduce the carbon footprint of transportation.
The climate change policy of the United States has major impacts on global climate change and global climate change mitigation. This is because the United States is the second largest emitter of greenhouse gasses in the world after China, and is among the countries with the highest greenhouse gas emissions per person in the world. In total, the United States has emitted over 400 billion metric tons of greenhouse gasses, more than any country in the world.
American Electric Power Company v. Connecticut, 564 U.S. 410 (2011), was a United States Supreme Court case in which the Court, in an 8–0 decision, held that corporations cannot be sued for greenhouse gas emissions (GHGs) under federal common law, primarily because the Clean Air Act (CAA) delegates the management of carbon dioxide and other GHG emissions to the Environmental Protection Agency (EPA). Brought to court in July 2004 in the Southern District of New York, this was the first global warming case based on a public nuisance claim.
The, United States Environmental Protection Agency (EPA) began regulating greenhouse gases (GHGs) under the Clean Air Act from mobile and stationary sources of air pollution for the first time on January 2, 2011. Standards for mobile sources have been established pursuant to Section 202 of the CAA, and GHGs from stationary sources are currently controlled under the authority of Part C of Title I of the Act. The basis for regulations was upheld in the United States Court of Appeals for the District of Columbia in June 2012.
Mobile source air pollution includes any air pollution emitted by motor vehicles, airplanes, locomotives, and other engines and equipment that can be moved from one location to another. Many of these pollutants contribute to environmental degradation and have negative effects on human health. To prevent unnecessary damage to human health and the environment, environmental regulatory agencies such as the U.S. Environmental Protection Agency have established policies to minimize air pollution from mobile sources. Similar agencies exist at the state level. Due to the large number of mobile sources of air pollution, and their ability to move from one location to another, mobile sources are regulated differently from stationary sources, such as power plants. Instead of monitoring individual emitters, such as an individual vehicle, mobile sources are often regulated more broadly through design and fuel standards. Examples of this include corporate average fuel economy standards and laws that ban leaded gasoline in the United States. The increase in the number of motor vehicles driven in the U.S. has made efforts to limit mobile source pollution challenging. As a result, there have been a number of different regulatory instruments implemented to reach the desired emissions goals.
Citizens' Climate Lobby (CCL) is an international grassroots environmental group that trains and supports volunteers to build relationships with their elected representatives in order to influence climate policy. The CCL is a registered 501(c)(4) with approximately $680,000 in revenue in the United States in 2018. Operating since 2007, the goal of CCL is to build political support across party lines to put a price on carbon, specifically a revenue-neutral carbon fee and dividend (CF&D) at the national level. CCL is supported by notable climate scientists James Hansen, Katharine Hayhoe, and Daniel Kammen. CCL's advisory board also includes former Secretary of State George P. Shultz, former US Representative Bob Inglis, actor Don Cheadle, and RESULTS founder Sam Daley-Harris.
The Clean Power Plan was an Obama administration policy aimed at combating anthropogenic climate change that was first proposed by the Environmental Protection Agency (EPA) in June 2014. The final version of the plan was unveiled by President Obama on August 3, 2015. Each state was assigned an individual goal for reducing carbon emissions, which could be accomplished how they saw fit, but with the possibility of the EPA stepping in if the state refused to submit a plan. If every state met its target, the plan was projected to reduce carbon emissions from electricity generation 32% by 2030, relative to 2005 levels, as well as achieving various health benefits due to reduced air pollution.
