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Emissions and Energy Impacts of the Inflation Reduction Act

If goals set under the Paris Agreement are met, the world may hold warming well below 2 degrees C (1); however, parties are not on track to deliver these commitments (2), increasing focus on policy implementation to close the gap between ambition and action. Recently, the US government passed its most prominent piece of climate legislation to date - the Inflation Reduction Act of 2022 (IRA) - designed to invest in a wide range of programs that, among other provisions, incentivize clean energy and carbon management, encourage electrification and efficiency measures, reduce methane emissions, promote domestic supply chains, and address environmental justice concerns (3). IRA's scope and complexity make modeling important to understand impacts on emissions and energy systems. We leverage results from nine independent, state-of-the-art models to examine potential implications of key IRA provisions, showing economy-wide emissions reductions between 43 and 48% below 2005 levels by 2035.

electricity↗

Climate and air quality impacts due to mitigation of non-methane near-term climate forcers

It is important to understand how future environmental policies will impact both climate change and air pollution. Although targeting near-term climate forcers (NTCFs), defined here as aerosols, tropospheric ozone, and precursor gases, should improve air quality, NTCF reductions will also impact climate. Prior assessments of the impact of NTCF mitigation on air quality and climate have been limited. This is related to the idealized nature of some prior studies, simplified treatment of aerosols and chemically reactive gases, as well as a lack of a sufficiently large number of models to quantify model diversity and robust responses. Here, we quantify the 2015–2055 climate and air quality effects of non-methane NTCFs using nine state-of-the-art chemistry–climate model simulations conducted for the Aerosol and Chemistry Model Intercomparison Project (AerChemMIP). Simulations are driven by two future scenarios featuring similar increases in greenhouse gases (GHGs) but with “weak” (SSP3-7.0) versus “strong” (SSP3-7.0-lowNTCF) levels of air quality control measures. As SSP3-7.0 lacks climate policy and has the highest levels of NTCFs, our results (e.g., surface warming) represent an upper bound. Unsurprisingly, we find significant improvements in air quality under NTCF mitigation (strong versus weak air quality controls). Surface fine particulate matter (PM2.5) and ozone (O3) decrease by −2.2±0.32 µg m−3 and −4.6±0.88 ppb, respectively (changes quoted here are for the entire 2015–2055 time period; uncertainty represents the 95 % confidence interval), over global land surfaces, with larger reductions in some regions including south and southeast Asia. Non-methane NTCF mitigation, however, leads to additional climate change due to the removal of aerosol which causes a net warming effect, including global mean surface temperature and precipitation increases of 0.25±0.12 K and 0.03±0.012 mm d−1, respectively. Similarly, increases in extreme weather indices, including the hottest and wettest days, also occur. Regionally, the largest warming and wetting occurs over Asia, including central and north Asia (0.66±0.20 K and 0.03±0.02 mm d−1), south Asia (0.47±0.16 K and 0.17±0.09 mm d−1), and east Asia (0.46±0.20 K and 0.15±0.06 mm d−1). Relatively large warming and wetting of the Arctic also occur at 0.59±0.36 K and 0.04±0.02 mm d−1, respectively. Similar surface warming occurs in model simulations with aerosol-only mitigation, implying weak cooling due to ozone reductions. Our findings suggest that future policies that aggressively target non-methane NTCF reductions will improve air quality but will lead to additional surface warming, particularly in Asia and the Arctic. Policies that address other NTCFs including methane, as well as carbon dioxide emissions, must also be adopted to meet climate mitigation goals.

Climate↗

The Future of Fuels: Meeting Global Decarbonization Goals

Petroleum has served as the source of the vast majority of our transportation fuel for well over a century. During the past few decades, biofuels—primarily ethanol, biodiesel, renewable diesel/jet, and renewable natural gas—have steadily increased in volume though still represent a small portion of the total fuel mix. While initially driven by energy security considerations, recent policies promoting increased biofuel use have been motivated by greenhouse gas reductions. Within the past couple years, significant interest has emerged in “e-fuels”—fuels produced from a carbon source (e.g., CO2) and electricity. If sourced from renewable electrons, e-fuels have the potential to provide significant GHG reductions, though questions of scale and economics remain. This talk will discuss recent research into advanced fuels properties and production routs, as well as issues and challenges that fuels must overcome to power ICEs in the mid 21st century.

47 OTHER INSTRUMENTATION↗

Modeling the Impact of Flexible CHP on the Future Electric Grid In California

Combined heat and power (CHP) systems provide electricity and process heat at more than 4,400 industrial and commercial facilities across the United States. Typically fueled with natural gas, a CHP system combines a prime mover (such as a reciprocating engine) with a generator and heat recovery equipment, allowing operation at very high efficiencies (65–85%). Traditionally, CHP systems have been configured to serve local electrical and thermal loads at the sites where they are deployed. Units are sized to ensure a high capacity factor for the equipment, and the electricity generated tends to be used on site. CHP units in the United States already generate over 12% of the nation’s electricity. However, CHP’s potential benefits could be much greater if power generated could be used beyond the site, because the analysis was performed under the assumption that sites could use all the thermal output. Analysis of a few key sectors confirmed that this assumption is valid (for more information, see Appendix E). Those benefits could include improved grid reliability and resilience, as well as lower-cost options for providing energy and other grid services. The potential benefits also align well with grid modernization objectives, as shown in Combined heat and power (CHP) systems provide electricity and process heat at more than 4,400 industrial and commercial facilities across the United States., and greater electrification of loads, driven by carbon reduction priorities.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Carbon Storage Monitoring, Verification, and Accounting (MVA)

Fact sheet about carbon storage monitoring, verification, and accounting (MVA). Includes background on MVA, the Energy & Environmental Research Center, and Plains CO 2 Reduction (PCOR) Partnership Initiative plans for MVA strategy development.

01 COAL, LIGNITE, AND PEAT↗

Algae to HEFA : Economics and potential deployment in the United States

Abstract To reach the goals set by the US Department of Energy's Sustainable Aviation Fuel (SAF) Grand Challenge, currently available feedstocks may be insufficient. Giving priority to developing, prototyping and reducing the cost of algal feedstock before investing and lining up locations is important. As the production of algal feedstocks advances, a simplified conversion approach using more mature technologies can help reduce the investment risk for algae‐based fuels. Reducing process complexity to the steps described here [namely, conversion of lipids to HEFA (hydroprocessed esters and fatty acids) fuels and relegating the remainder of the biomass to anaerobic digestion or food/feed production] enables the near‐term production of algal SAF but presents challenging economics depending on achievable cultivation costs and compositional quality. However, these economics can be improved by present‐day policy incentives. With these incentives, the modeled algae‐to‐HEFA pathway could reach a minimum fuel selling price as low as $4.7 per gasoline gallon equivalent depending on the carbon intensity reduction that can be achieved compared with petroleum. Uncertainty about algal feedstock production maturity in the current state of technology and the future will play a large role in determining the economic feasibility of building algae‐to‐HEFA facilities. For example, if immaturity increases the feedstock price by even 10%, SAF production in 2050 is about 58% of the production which could have been achieved with mature feedstock. Additionally, growth in this conversion pathway can be notably boosted through the inclusion of subsidies, and also through higher‐value coproducts or higher lipid yields beyond the scope of the process considered here.

09 BIOMASS FUELS↗

Designing an innovation system to support profitable electro- and bio-catalytic carbon upgrade

Carbon capture, utilisation, and storage (CCUS) can mitigate an estimated 14–20% of CO 2 emissions by 2050. Here, we evaluate an integrated electrocatalysis and biocatalysis CCUS pathway, using externally-supplied renewable electricity to convert over 12 MtCO 2 to poly(3-hydroxybutyrate) via methanol and formate intermediates. A techno-economic and policy-innovation analysis provides insight into global CCUS innovation. Results suggest that innovation should focus on improving methanol faradaic efficiency, formate biocatalysis efficiency, electrocatalysis current density, and catalyst performance. Methanol and formate composition influences performance, but higher formate content can improve economics by US$3.8B over a 30 year lifetime. Profitable scenarios hinge on reducing methanol separation costs – through innovation or reduced energy usage – along with cheap renewable electricity and/or carbon pricing. Our evaluation of the global innovation status signifies that coordinated strategies are required to realise emissions cuts from CCUS. Innovation can be spurred by targeted investments and policies that promote emissions reductions.

37 INORGANIC, ORGANIC, PHYSICAL, AND ANALYTICAL CH↗

Analysis of Benefits Associated With Projects and Technologies Supported by the Clean Transportation Program: 2023 Executive Summary [Slides]

In 2007, California Assembly Bills (AB) 118 and 109 created the Clean Transportation Program (CTP), which authorized the California Energy Commission (CEC) to fund projects concerning alternative fuels and advanced transportation technologies to help attain the state's climate change policies. AB 109 also required CEC to prepare a report summarizing the benefits resulting from the program. Since then, CEC has collaborated with National Renewable Energy Laboratory to prepare and publish biannual reports summarizing CTP's benefits related to petroleum displacement, greenhouse gas (GHG) reductions, air pollution, and more. This report updates the input data, calculation methodologies, and resulting outputs from CEC's 2021 report.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Methane Hydrates in Alaska

This paper was prepared for the National Petroleum Council's Study on Natural Gas GHG Emissions. Natural gas is the largest primary energy produced in the United States and its use is growing. Yet getting this gas to homes and businesses creates greenhouse gas emissions. That’s why reducing emissions from America’s natural gas is an urgent priority that requires collaborative solutions. The National Petroleum Council brought together a diverse group of stakeholders with the expertise to analyze this complex issue and identify ways to reduce natural gas GHG emissions for all future supply and demand scenarios. The result: actionable consensus on ensuring a lower-emission natural gas system. The study’s research charts a course forward to meaningfully reduce emissions from the natural gas system, contributing significantly to the United States’ ability to achieve its climate goals. The report concludes that through the implementation of existing policies, voluntary commitments, technologies, and market mechanisms, a 63% reduction in methane emissions can be achieved by 2030. The report went further to identify an additional pathway that methane emissions decrease by 70% and carbon dioxide emissions reduce by 33% through 2050.

03 NATURAL GAS↗

Large Trees Dominate Carbon Storage in Forests East of the Cascade Crest in the United States Pacific Northwest

Large-diameter trees store disproportionally massive amounts of carbon and are a major driver of carbon cycle dynamics in forests worldwide. In the temperate forests of the western United States, proposed changes to Forest Plans would significantly weaken protections for a large portion of trees greater than 53 cm (21 inches) in diameter (herein referred to as “large-diameter trees”) across 11.5 million acres (~4.7 million ha) of National Forest lands. This study is among the first to report how carbon storage in large trees and forest ecosystems would be affected by a proposed policy. We examined the proportion of large-diameter trees on National Forest lands east of the Cascade Mountains crest in Oregon and Washington, their contribution to overall aboveground carbon (AGC) storage, and the potential reduction in carbon stocks resulting from widespread harvest. We analyzed forest inventory data collected on 3,335 plots and found that large trees play a major role in the accumulated carbon stock of these forests. Tree AGC (kg) increases sharply with tree diameter at breast height (DBH; cm) among five dominant tree species. Large trees accounted for 2.0 to 3.7% of all stems (DBH ≥ 1” or 2.54 cm) among five tree species; but held 33 to 46% of the total AGC stored by each species. Pooled across the five dominant species, large trees accounted for 3% of the 636,520 trees occurring on the inventory plots but stored 42% of the total AGC. A recently proposed large-scale vegetation management project that involved widespread harvest of large trees, mostly grand fir, would have removed ~44% of the AGC stored in these large-diameter trees, and released a large amount of carbon dioxide to the atmosphere. Given the urgency of keeping additional carbon out of the atmosphere and continuing carbon accumulation from the atmosphere to protect the climate system, it would be prudent to continue protecting ecosystems with large trees for their carbon stores, and also for their co-benefits of habitat for biodiversity, resilience to drought and fire, and microclimate buffering under future climate extremes.

21-inch rule↗

The need for carbon-emissions-driven climate projections in CMIP7

Abstract. Previous phases of the Coupled Model Intercomparison Project (CMIP) have primarily focused on simulations driven by atmospheric concentrations of greenhouse gases (GHGs), for both idealized model experiments and climate projections of different emissions scenarios. We argue that although this approach was practical to allow parallel development of Earth system model simulations and detailed socioeconomic futures, carbon cycle uncertainty as represented by diverse, process-resolving Earth system models (ESMs) is not manifested in the scenario outcomes, thus omitting a dominant source of uncertainty in meeting the Paris Agreement. Mitigation policy is defined in terms of human activity (including emissions), with strategies varying in their timing of net-zero emissions, the balance of mitigation effort between short-lived and long-lived climate forcers, their reliance on land use strategy, and the extent and timing of carbon removals. To explore the response to these drivers, ESMs need to explicitly represent complete cycles of major GHGs, including natural processes and anthropogenic influences. Carbon removal and sequestration strategies, which rely on proposed human management of natural systems, are currently calculated in integrated assessment models (IAMs) during scenario development with only the net carbon emissions passed to the ESM. However, proper accounting of the coupled system impacts of and feedback on such interventions requires explicit process representation in ESMs to build self-consistent physical representations of their potential effectiveness and risks under climate change. We propose that CMIP7 efforts prioritize simulations driven by CO2 emissions from fossil fuel use and projected deployment of carbon dioxide removal technologies, as well as land use and management, using the process resolution allowed by state-of-the-art ESMs to resolve carbon–climate feedbacks. Post-CMIP7 ambitions should aim to incorporate modeling of non-CO2 GHGs (in particular, sources and sinks of methane and nitrous oxide) and process-based representation of carbon removal options. These developments will allow three primary benefits: (1) resources to be allocated to policy-relevant climate projections and better real-time information related to the detectability and verification of emissions reductions and their relationship to expected near-term climate impacts, (2) scenario modeling of the range of possible future climate states including Earth system processes and feedbacks that are increasingly well-represented in ESMs, and (3) optimal utilization of the strengths of ESMs in the wider context of climate modeling infrastructure (which includes simple climate models, machine learning approaches and kilometer-scale climate models).

54 ENVIRONMENTAL SCIENCES↗

Getting to Zero—and Beyond: California’s aspiration to become the first carbon-negative state appears to be achievable and affordable.

As a response to mounting concerns about the consequences of unabated climate change, California established in 2018 an aspirational goal of achieving a completely carbon-neutral economy by 2045, and becoming carbon negative after that. The state has long championed climate-friendly policies such as using energy more efficiently, generating power from renewable sources, and putting cleaner cars on the road, among other emissions-reduction strategies. Unfortunately, California’s own evaluations indicate that even when these are successful—after intensive electrification of the economy and a drastic shift away from fossil fuels—there will remain substantial greenhouse gas emissions. The residuals come from widespread small sources that are hard to control, and from larger sources that cannot be controlled in time.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Integrated Carbon Capture and Storage in Hydrogen Production: A Combined Techno-Economic and Life Cycle Assessment

This paper presents a coupled techno-economic and life cycle assessment of “blue” hydrogen to be produced at a hydrogen facility through steam methane reforming (SMR) equipped with carbon capture and storage (CCS). Blue hydrogen was modeled in ChemCAD, while an integrated asset model represented the carbon capture and storage chain. An unabated carbon dioxide (CO 2 ) configuration release 11.99 kgCO 2 -eq/ kgH 2 . Capturing ≥95% of the CO 2 stream lowers the carbon footprint to 6.59 kgCO 2 -eq/kgH2 but raises the levelized cost of hydrogen (LCOH) from $\$$1.82/kgH 2 (no CO 2 capture) to $\$$3.22/kgH 2 ; the U.S. 45Q tax credit reduces it to $\$$2.59/kgH 2 . Incorporating CCS reduces the levelized net present value from $\$$0.87/kgH 2 to $\$$0.74/kgH 2 , owing to additional capture, transport, and storage costs. Supplying SMR with low-carbon electricity, especially nuclear, wind, or hydro, delivers the lowest carbon footprint relative to geothermal or grid mixes. Sensitivity analysis identifies that hydrogen sales price, internal rate of return, and CCS cost as the strongest economic levers, while electricity demand dominates residual lifecycle emissions. The results underscore a clear trade-off; substantial CO 2 reductions are achievable, but only with higher production costs, making supportive policy instruments, access to clean power, and robust hydrogen markets essential for large-scale deployment of blue hydrogen.

carbon capture↗

Carbon neutrality in Malaysia and Kuala Lumpur: Insights from stakeholder-driven integrated assessment modeling

Several cities in Malaysia have established plans to reduce their CO2 emissions, in addition to Malaysia submitting a Nationally Determined Contribution to reduce its carbon intensity (against GDP) by 45% in 2030 compared to 2005. Meeting these emissions reduction goals will require a joint effort between governments, industries, and corporations at different scales and across sectors. In collaboration with national and sub-national stakeholders, we developed and used a global integrated assessment model to explore emissions mitigation pathways in Malaysia and Kuala Lumpur. Guided by current climate action plans, we created a suite of scenarios to reflect uncertainties in policy ambition, level of adoption, and implementation for reaching carbon neutrality. Through iterative engagement with all parties, we refined the scenarios and focus of the analysis to best meet the stakeholders’ needs. We found that Malaysia can reduce its carbon intensity and reach carbon neutrality by 2050, and that action in Kuala Lumpur can play a significant role. Decarbonization of the power sector paired with extensive electrification, energy efficiency improvements in buildings, transportation, and industry, and the use of advanced technologies such as hydrogen and carbon capture and storage will be major drivers to mitigate emissions, with carbon dioxide removal strategies being key to eliminate residual emissions. This study highlights the participatory process in which stakeholders contributed to the development of the model and guided the analysis, as well as insights into Malaysia’s decarbonization potential and the role of multilevel governance.

cities↗

We Must Stop Fossil Fuel Emissions to Protect Permafrost Ecosystems

Climate change is an existential threat to the vast global permafrost domain. The diverse human cultures, ecological communities, and biogeochemical cycles of this tenth of the planet depend on the persistence of frozen conditions. The complexity, immensity, and remoteness of permafrost ecosystems make it difficult to grasp how quickly things are changing and what can be done about it. Here, we summarize terrestrial and marine changes in the permafrost domain with an eye toward global policy. While many questions remain, we know that continued fossil fuel burning is incompatible with the continued existence of the permafrost domain as we know it. If we fail to protect permafrost ecosystems, the consequences for human rights, biosphere integrity, and global climate will be severe. The policy implications are clear: the faster we reduce human emissions and draw down atmospheric CO 2 , the more of the permafrost domain we can save. Emissions reduction targets must be strengthened and accompanied by support for local peoples to protect intact ecological communities and natural carbon sinks within the permafrost domain. Some proposed geoengineering interventions such as solar shading, surface albedo modification, and vegetation manipulations are unproven and may exacerbate environmental injustice without providing lasting protection. Conversely, astounding advances in renewable energy have reopened viable pathways to halve human greenhouse gas emissions by 2030 and effectively stop them well before 2050. We call on leaders, corporations, researchers, and citizens everywhere to acknowledge the global importance of the permafrost domain and work towards climate restoration and empowerment of Indigenous and immigrant communities in these regions.

54 ENVIRONMENTAL SCIENCES↗

Pronounced and unavoidable impacts of low-end global warming on northern high-latitude land ecosystems

Arctic ecosystems are particularly vulnerable to climate change because of Arctic amplification. Here, we assessed the climatic impacts of low-end, 1.5 °C, and 2.0 °C global temperature increases above pre-industrial levels, on the warming of terrestrial ecosystems in northern high latitudes (NHL, above 60 °N including pan-Arctic tundra and boreal forests) under the framework of the Inter-Sectoral Impact Model Intercomparison Project phase 2b protocol. We analyzed the simulated changes of net primary productivity, vegetation biomass, and soil carbon stocks of eight ecosystem models that were forced by the projections of four global climate models and two atmospheric greenhouse gas pathways (RCP2.6 and RCP6.0). Our results showed that considerable impacts on ecosystem carbon budgets, particularly primary productivity and vegetation biomass, are very likely to occur in the NHL areas. The models agreed on increases in primary productivity and biomass accumulation, despite considerable inter-model and inter-scenario differences in the magnitudes of the responses. The inter-model variability highlighted the inadequacies of the present models, which fail to consider important components such as permafrost and wildfire. The simulated impacts were attributable primarily to the rapid temperature increases in the NHL and the greater sensitivity of northern vegetation to warming, which contrasted with the less pronounced responses of soil carbon stocks. The simulated increases of vegetation biomass by 30–60 Pg C in this century have implications for climate policy such as the Paris Agreement. Comparison between the results at two warming levels showed the effectiveness of emission reductions in ameliorating the impacts and revealed unavoidable impacts for which adaptation options are urgently needed in the NHL ecosystems.

54 ENVIRONMENTAL SCIENCES↗