Colleagues – what an amazing week this has been here in Washington! There is certainly a lot of hard work ahead of us both in the US and around the world to ensure that the recent announcements and commitments from the new administration are followed through on and deepened to deliver the climate action and environmental, economic, and racial justice that is so desperately needed; but it is such a relief not to be dealing with a US administration that is actively working against all those goals.
As I said last week, the E3G Washington team, which I recently joined as a senior associate, is curating news and intelligence aimed at keeping transatlantic stakeholders up to speed as the Biden-Harris administration moves quickly to implement its priorities on climate change, clean energy, and other issues, and as the US constructively re-engages with the EU and the UK on climate and energy policy, after four long years of division.
Below is the second issue of the ‘Transatlantic Climate Diplomacy Digest’ (TCD2), which is organized around the crucial climate outcomes we think the US, Europe and UK should work toward in 2021:
* Building back better with a global green recovery;
* Raising collective climate ambition for a successful COP26;
* Accelerating the transition from fossil fuels to a clean economy;
* Aligning financial flows for a net-zero economy; and
* Aligning trade policy for a net-zero economy.
There are also updates on the incredible team the Biden-Harris administration is putting in place at the White House and across the federal agencies, and a few select pieces on broader geopolitical dynamics affecting the transatlantic relationship.
Daniela Schulman, an amazing policy researcher on the E3G Washington team, is the curator of the digest; email her at daniela.schulman@e3g.org<mailto:daniela.schulman@e3g.org> if you want to sign up for future issues of the TCD2, or to send her information on relevant developments that we should consider for inclusion in future weekly issues of the Digest.
Best, Alden
Alden Meyer
Principal, Performance Partners
Senior Associate, E3G – Third Generation Environmentalism
15 Montgomery Avenue
Takoma Park, MD 20912
(301) 270-0558<tel:(301)%20270-0558> (office)
(202) 378-8619<tel:(202)%20378-8619> (cell)
Alden@ppartners.com<mailto:Alden@ppartners.com>
Twitter: @aldenmeyer
Skype: alden.meyer
LinkedIn: https://www.linkedin.com/in/alden-meyer-91a64b5/
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Transatlantic Climate Diplomacy Digest 1.29.2021
Greetings,
In this week’s edition, both sides of the pond are singing in unison to the tune of climate action and energy transition as top foreign policy and security priorities. The European Foreign Affairs Council emphasized the external dimension of the European Green New Deal on Monday (FAC<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=4d6dfae8be&e=a373dfba38>). Two days later, Biden announced his April 22nd Climate Summit and a forthcoming updated NDC with “swagger” (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=4885d84525&e=a373dfba38>), and promised to work bilaterally and multilaterally to build resilience and put the world on a sustainable climate pathway (White House<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=7a8d11d72d&e=a373dfba38>). The Pentagon will also begin to include climate risk in its military simulations, elevating the crisis as a national security threat (Reuters<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=0295ae4be0&e=a373dfba38>). This week’s news reflects NRE—New Relationship Energy—we expect more nuanced analysis after the honeymoon, so be sure to check next week’s digest.
TCD2 is a compilation of news and intelligence aimed at keeping transatlantic stakeholders up to speed as the Biden-Harris administration takes its place and sets its priorities. It is a snapshot organized around the crucial climate outcomes we think the US, with the EU and the UK, should work toward in 2021: building back better, a push for Paris ambition, clean energy transition, climate finance, and trade policy for a net-zero future.
For inspiration: “Earthrise,” a poem by Nobel Laureate Amanda Gorman (Our Daily Planet<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=cd9e7f3e60&e=a373dfba38>)
Building back better with a global green recovery
* European Foreign Affairs Ministers have agreed to emphasize the external dimension of the European Green New Deal (FAC<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=7abdaa0ca5&e=a373dfba38>). An op-ed by European Commission VP Josep Borrell and EIB President Werner Hoyer says Europe must become a global climate power (Project Syndicate<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=a468be267a&e=a373dfba38>).
* Biden announced a suite of climate-themed executive actions on Wednesday with a new sort of “swagger” (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=a4bcd1ca1e&e=a373dfba38>), acting like climate policy is now a political winner. The oil industry is “aghast,” faced with a blitz of fiercer and quicker climate policy than expected (Bloomberg<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=6f46caa1e5&e=a373dfba38>). Powerful and surprising forces are arrayed against Biden’s ambitious actions (New York Times<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=e33503ccb8&e=a373dfba38>). The executive order promised to work bilaterally and multilaterally to build resilience and put the world on a sustainable climate pathway (White House<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=18e4f19fcf&e=a373dfba38>). Among other policy updates, the executive order includes:
* Accelerating clean energy and transmission projects and creating new jobs (New York Times<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=5cdc861a4e&e=a373dfba38>).
* A commitment to protecting at least 30 percent of U.S. lands and oceans by 2030.
* Establishing a Civilian Climate Corps Initiative—a heartwarming and inspired FDR-esque idea.
* Centering environmental justice across federal agencies and creating a White House Environmental Justice Interagency Council and a White House Environmental Justice Advisory Council (Washington Post<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=a2e285b82b&e=a373dfba38>). Activists see this as a critical campaign promise kept (Inside Climate News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=6a711b46ce&e=a373dfba38>).
* Using science to guide robust policy-making, and protecting scientific integrity…not something we take for granted.
* Centering climate change in U.S. foreign policy and national security considerations. This includes the 17 U.S. intelligence agencies coming together to assess climate risks.
* The EU’s FAC and US administration’s Executive Order issuing in the same week represents a clear shift. These actions show Europe and the US are on the same page, treating climate as a top-tier foreign policy priority. This piece offers another perspective, warning readers to temper expectations about the ability of the US to align with Europe on climate change (Euractiv<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=21ca4cc320&e=a373dfba38>).
* Senate Majority Leader Chuck Schumer (D) said President Biden should consider declaring climate change a national emergency. This would give the president more powers to divert funding toward green policy without going through Congress (Our Daily Planet<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=856e0d35af&e=a373dfba38>). With an evenly split Senate and narrow Democratic majority in the House, plus opposition from within the party from Joe Manchin and the like, passing legislation with broad scope will be extremely difficult.
* The Boston Brigade, talking about jobs in their accent
* The $1.9 trillion stimulus COVID “rescue” package must work its way through Congress before a climate-focused infrastructure package. If need be, Democrats aren’t afraid of using reconciliation twice (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=675e67b42b&e=a373dfba38>).
Raising collective climate ambition for a successful COP26
* Biden moved yesterday to send the Kigali Amendment to the Montreal Protocol to the Senate for ratification. Obama helped negotiate the international agreement to phase down hydrofluorocarbons (HFCs) in 2016—now it goes to Congress for a vote (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=3a05b69846&e=a373dfba38>).
* Biden is off to a good start, but the US must do more, faster, writes the (LA Times<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=95fcdab010&e=a373dfba38>) editorial board in reaction to Biden’s executive order.
* In his Wednesday climate action executive order, Biden announced a Climate Summit on April 22nd, and hinted that an updated 2030 NDC might be announced by or before that date (Bloomberg<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=49fc4e59cd&e=a373dfba38>). The Summit will be a chance for the US to showcase its domestic progress and drive climate ambition on the path to and beyond COP26 Glasgow. The short NDC turnaround has decision-makers and advocates planning hard to ensure a robust consultation process.
* In her Boston brogue, US National Climate Advisor Gina McCarthy says “I’m the dude” to identify actions between now and 2030 the US can take to deliver on its renewed Paris commitment (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=f50700edbf&e=a373dfba38>). She forcefully declared decarbonizing the economies is a job creator, not killer; a message reiterated by US Labor Secretary Marty Walsh – also from Boston. The same message, albeit in a different accent, comes from UK PM Boris Johnson who, according to FT, has had a conversion and now sees climate as way of reindustrializing and levelling-up in the UK (Financial Times<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=3f36688b25&e=a373dfba38>).
* Will Beijing be willing to meaningfully participate in a US Climate Summit? (South China Morning Post<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=b8754c8e28&e=a373dfba38>)
* The UNFCCC launched Race to Zero Campaign to rally leadership and support from real economy actors (454 cities, 23 regions, 1,397 businesses, 74 of the biggest investors, and 569 universities) who are committed to net zero carbon emissions by 2050 at the latest. These actors cover nearly 25% of global CO2 emissions and over 50% GDP (UNFCCC<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=b1d92f7687&e=a373dfba38>).
Accelerating the transition from fossil to clean economy
* Meet Sonia Aggarwal, Senior Advisor for Climate Policy and Innovation at the White House. She’s the one who will map a pathway to US clean electricity by 2035 (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=c21f30a93c&e=a373dfba38>). The key message: it’s doable. Existing technologies can get us 90% of the way there, according to a Berkeley study Aggarwal worked on (Berkeley<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=f521f3a8ec&e=a373dfba38>).
* Scan the top five takeaways from Energy Secretary Granholm’s confirmation hearings on LNG, Nuclear, Minerals, Cybersecurity and Grid, and EVs (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=0134f52df4&e=a373dfba38>). Here’s what to know about Granholm’s DOE and Biden’s executive orders (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=3eb6702917&e=a373dfba38>).
* The scope of Biden’s executive orders on Wednesday was extensive, and included halting new oil and natural gas leases on public lands or offshore waters “to the extent possible,” and pushing for the elimination of fossil fuel subsidies (White House<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=3c631c4784&e=a373dfba38>). While this may signal a reckoning with fossil fuels, the pause of federal oil and gas leases may not reduce production—most companies can continue their current level of drilling for years (Inside Climate News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=00e7fb9623&e=a373dfba38>).
* Biden’s plan to green the economy by 2035 will require cooperating with China, which controls a vast share of mineral resources and materials for solar panels and wind turbines (POLITICO<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=57b1d7f4fe&e=a373dfba38>).
* The US executive order on climate action includes the creation of an interagency working group on just transition, chaired by Gina McCarthy and Brian Deese, to seek economic answers for coal country (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=8b62679565&e=a373dfba38>).
* The IEA announced a global commission on just transition, led by Denmark. “While clean energy transitions are gaining significant momentum, it is essential to their success that they be inclusive and centred around people,” said Executive Director Faith Birol (Danish Ministry of Climate, Energy and Utilities<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=00e585c57b&e=a373dfba38>).
* Mission Possible, a partnership of over 400 companies in heavy industry and transport, have agreed to accelerate decarbonization and hit net-zero by 2050. The partnership was announced at Davos and organized by the We Mean Business Coalition, the Energy Transitions Commission, Rocky Mountain Institute, and World Economic Forum (RMI<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=df64b752a8&e=a373dfba38>).
* The EU bank chief says “Gas is over” (Euractiv<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=bea64aeb18&e=a373dfba38>). Is it? On one hand, this week Prime Minister Trudeau discussed the Keystone XL permit cancellation with President Biden, saying he wouldn’t fight the matter and respected Biden’s decision. On the other hand, a legal challenge to the UK’s approval of Europe’s biggest gas plant failed in the court of appeal (The Guardian<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=7dac51afd8&e=a373dfba38>).
* Mark your calendars for a Senate Energy Committee next week on climate baselines (Senate Energy Committee<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=01771bb7cd&e=a373dfba38>).
Aligning financial flows for a net-zero economy
* Another January, another letter from Larry Fink (New York Times<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=cd315d0e52&e=a373dfba38>). He warns that climate risk equals financial risk. Is it earth-shattering or green-scamming?
* Another data point that fossil fuels are on the decline: S&P put Chevron, Exxon and others on downgrade watch this week (Business Insider<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=65b6e11f06&e=a373dfba38>), and New York City Mayor de Blasio announced a $4 billion pension fund divestment (NYC Comptroller<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=76f29e1d82&e=a373dfba38>).
* Treasury Secretary Janet Yellen sent an email reminding her staff that economics isn’t just something you find in a textbook or a collection of theories. It’s a way to make people’s lives better. “We can—and should—use it to address inequality, racism, and climate change,” said Yellen (Treasury<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=b3d67e36ba&e=a373dfba38>).
* The Fed announced the creation of a new Supervision Climate Committee, chaired by senior-level official Kevin Stiroh, to deepen understanding of climate risks to the financial system. The head of sustainable finance at ClimateWorks called the Fed committee an “enormously big deal” (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=b013402a7a&e=a373dfba38>). At the same time, climate change did not earn a mention in a story on five things to watch at the Fed’s first meeting of 2021 (Financial Times<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=1f3e00f72c&e=a373dfba38>).
* At Monday’s Global Adaptation Summit, IMF Managing Director Kristalina Georgieva embraced the transition to a new climate economy and suggested action in four key areas (IMF<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=df464804a4&e=a373dfba38>). John Kerry said the US will “significantly increase” adaptation funding for vulnerable communities, including through concessional finance. Kerry also said the US intended to “make good” on its climate finance pledge—with hope he was referring to the full $2 billion owed by the US to the GCF (Climate Home News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=af92026139&e=a373dfba38>).
* World leaders promised to protect vulnerable countries at Monday’s summit, but growing COVID-19 debt crisis threatens to undermine climate finance (POLITICO<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=31f10c326c&e=a373dfba38>).
* A bit of inflation in 2021? Fed Chair Jerome Powell doesn’t care. “Frankly, we’d welcome higher inflation” if it means fewer jobs permanently lost. The fed will keep monetary conditions loose to let the economy heal (Coindesk<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=313b3f4da6&e=a373dfba38>).
* Readers, help us out! We’ve got an intelligence gap and want to hear from you. What would US audiences want to know about EU climate finance updates from this week? Send tips and stories to Dani at daniela.schulman@e3g.org<mailto:daniela.schulman@e3g.org>.
Aligning trade policy for a net-zero economy
* Special climate envoy John Kerry described his approach to US-China cooperation on climate change as a “critical standalone issue” that would “never be traded” for backing down on Beijing’s trade and human rights abuses (Axios<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=5facaaba0f&e=a373dfba38>). Is compartmentalizing climate the best approach?
* In an effort to move away from its reliance on Asian imports (i.e. China), the EU has approved €2.9 billion in subsidies from 12 member countries to develop the electric battery industry across Europe (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=5e35e6b840&e=a373dfba38>).
* Germany’s Greens wrote a policy paper inviting the Biden-Harris administration to adopt a carbon tax on imports along with the EU and thereby join a “transatlantic alliance for climate neutrality” (Bloomberg<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=1a2ea3463e&e=a373dfba38>).
* Climate change has not been a major feature in US trade agreements, but that may change under Biden. 100 lawyers have already sent a letter to the White House urging Paris commitment additions to the US-Mexico-Canada trade deal (Washington Post<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=45a4374de7&e=a373dfba38>).
* Biden signed an executive order early this week “Ensuring the Future Is Made in All of America by All of America’s Workers” that directs regulators to tighten the definition of American-made products and step up purchases of domestic goods (White House<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=9be48c5a95&e=a373dfba38>). This means dramatic change, including for the auto industry. Not a single federal vehicle currently meets Biden’s “American” criteria (Axios<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=656cfec9d0&e=a373dfba38>).
Personnel Updates
* Environmental Protection Agency (EPA): Avi Garbow, Senior Counselor to the Administrator. Avi served as general counsel from 2013 to 2017 and helped handle some of EPA’s most bruising court fights, including the battle over the Clean Power Plan (E&E News<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=074a155dd8&e=a373dfba38>).
* Federal Energy Regulatory Commission (FERC): Commissioner Richard Glick was named Chair. He has said publicly he would prioritize electric transmission reform, reassessing capacity markets, and lowering barriers to clean energy resources in regulated markets (Utility Dive<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=6f387c534f&e=a373dfba38>).
* Federal Reserve: Kevin Stiroh, who previously led bank supervision at the New York Fed, will lead the new Supervision Climate Committee to study what climate change could mean for banks and financial markets (Reuters<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=621221caf8&e=a373dfba38>).
Transatlantic relationship and geopolitical dynamics
* Two-thirds of people accept climate change is a global emergency, giving politicians across the world a clear mandate to take major action, a UN poll of 1.2 million people in 50 countries reveals (BBC<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=b86b686bf2&e=a373dfba38>).
* Looking for a longer transatlantic read this weekend? Faced with creeping authoritarianism, liberals need to craft a new agenda to strengthen the liberal world order and tackle the climate crisis, writes Timothy Garton Ash (Prospect Magazine<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=fd519cee80&e=a373dfba38>). It’s worth the time.
* CHINA FOCUS
* In 2020, for the first time, renewables accounted for over half of China’s Belt and Road energy investments—but coal share also grew to 27% (Financial Times<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=820b3a8175&e=a373dfba38>).
* Davos Xi Jinping’s speech at Davos was full of liberal internationalist rhetoric (WSJ<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=f56dd9c9e0&e=a373dfba38>), but it also included a message for the Biden administration to abandon “ideological prejudice,” i.e. for the US to stop “bullying” others by forcing its democratic system on others (Newsweek<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=0a0e6470d1&e=a373dfba38>).
* China strengthens as the world suffers—can it be stopped, or is Beijing launching a final assault on a weakened West? Here is a German take (SPIEGEL<https://e3g.us7.list-manage.com/track/click?u=7c4fa4aeed571d4192151de05&id=a4a89202eb&e=a373dfba38>).
Today’s digest was curated and edited by Daniela Schulman at E3G Washington. Please feel free to reply to this email with additional updates and articles of interest that may be added to the digest.
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