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Meet the Lobbies: Electricity and Gas

By Kate Willson and Andrew Green | December 09, 2009 | | Print Print this

Copenhagen — The electric industry is a hodgepodge of interests — high-carbon coal, lower-carbon natural gas, and near-zero-carbon nuclear. Each has a lot to gain and a lot to loose depending on the outcome of the Copenhagen climate talks. And the winner will depend largely on the agreed-upon targets for reducing emissions. Carbon-heavy power generators would like far-off targets. Carbon-light companies stand to gain from near-term goals.

John Scowcroft represents a variety of interests for Eurelectric, the European association of electric power companies. One of Europe’s most prominent lobbyists on climate change, Scowcroft came here to Copenhagen to wander the halls, to “loiter,” as he put it in a recent article about industry influence on the UN process. He comes across country delegates in the conference center and does what he can to repeat the Eurelectric position: the industry needs long-range targets and an immediate and clear framework to spur investment.

Like many industries, electric power interests will host a side event next week, showcasing their assessment of how the world could become “carbon-neutral” by 2050. It’s a typical stance of carbon-heavy industries today; no longer do they fight to deny that climate is changing or that the world needs to change how it uses energy. “We have to be carbon-neutral by 2050,” says Scowcroft. “We’re looking for a framework to lead us there.”

For carbon-intensive power companies, the ideal outcome for a UN framework would feature major carbon reduction targets by the year 2050 or thereabout — allowing them to outfit their plants with technology to sequester carbon and store it underground. If faced with nearer term targets, Scowcroft adds, many companies would have to turn to natural gas — a technology investment that wouldn’t payoff in the long run.

“Natural gas would be the easiest, quickest low carbon option,” he says. “But over the long term, it still emits a fair amount of carbon. We need to make major technical investments — I’m talking about carbon capture and storage.” And that won’t be widely available until at least 2025 — assuming the industry receives plenty of political and financial help, he says.

Enter the Natural Gas Lobby. The cleanest-burning of fossil fuels, natural gas has much to gain from a UN climate treaty with aggressive short-term goals for cutting carbon emissions. Those seeking closer targets argue that the carbon capture and storage — a controversial technology — may not be widely available for at least 30 years. Natural gas — which emits about half the carbon of burning coal — is available now.

Erik Gonder represents the International Gas Union, with natural gas industry members in 71 countries. Gonder recognizes that the more strict the short-term targets, the more potential benefit to the gas industry. He’s set up an exhibit at the Copenhagen talks and is hoping to attract policymakers to the IGU’s side event later this week. The industry message? Gas is essential to a sustainable energy future – a cleaner-burning fuel that can help the world transition from coal to carbon-free power.

“That is why we would like to market natural gas more strongly than we do today,” Gonder says. The IGU — which represents 95 percent of the world’s gas market — enlists its members to lobby their governments. And the efforts have been successful, Gondor boasts. “Through our high-level members, we’re able to get into the corridors of power.” Gonder says the IGU is already preparing for post-Copenhagen talks and plans to carry the industry’s message that gas can help carry the world into a less carbon-dependent future.

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“ The developed world has not lived up to the expectations of populations across the globe. … We must break down the barriers between North and South, between developed and developing countries, and establish collaborative arrangements whereby we can work together.”

Rajendra K. Pachauri, chairman of the Intergovernmental Panel on Climate Change Rajendra K. Pachauri, chairman of the Intergovernmental Panel on Climate Change

“ BusinessEurope makes a lot of contributions to the EU policy debate and is quite often given the floor in the UNFCCC context.”

Daniel Cloquet, director of industrial affairs for BusinessEurope Daniel Cloquet, director of industrial affairs for BusinessEurope

“ The only way to get to these low levels is for the whole world to act together with common targets and a common carbon price. We're not going to have a common approach. We're not going to have everyone with the same target and the same price on carbon.”

Brian Flannery, science program manager, Exxon Mobil Brian Flannery, science program manager, Exxon Mobil

“ Our effort has been on each of these missions, wherever required, we also take business and industry along with us.”

Shyam Saran, India’s special envoy on climate change Shyam Saran, India’s special envoy on climate change

“ We can get something done if it's based on what we all need. We can't get something done if it's based on what we all ideally want.”

Todd Stern, U.S. lead climate negotiator Todd Stern, U.S. lead climate negotiator

“ In the beginning the access is pretty open. … You make three important points over a drink at a reception. It’s the UN fabric. In the beginning you have maybe 200 contacts and at the end only 20. At that point long-term relationships are important.”

Jos Delbeke, European Commission Office of the Directorate-General for the Environment Jos Delbeke, European Commission Office of the Directorate-General for the Environment

“ You’re turning around a huge ocean liner that’s been going in one direction for the whole industrial revolution. It is difficult and requires time. It requires creativity. It requires adaptability. It requires flexibility.”

Stuart Eizenstat, former U.S. ambassador to the EU and President Clinton’s chief negotiator on the Kyoto protocol Stuart Eizenstat, former U.S. ambassador to the EU and President Clinton’s chief negotiator on the Kyoto protocol

“ I don’t want to spend time with senators. I’d rather spend time with staff, because I need to be in the details. People like to say ‘The devil is in the details,’ but my momma taught me God is in the details.”

James Rogers, chief executive of Duke Energy James Rogers, chief executive of Duke Energy

“ The science is clear and conclusive, and the impacts can no longer be ignored.”

President Barack Obama, United States President Barack Obama, United States

“ This is the second independence of Brazil (on the recent discovery of vast oil reserves).”

President Luiz Inacio Lula de Silva, Brazil President Luiz Inacio Lula de Silva, Brazil

“ Many of those industries say they support zero deforestation. They all are favorable to zero deforestation, but only if it doesn’t affect their own land.”

Carlos Minc, Brazil’s environment minister Carlos Minc, Brazil’s environment minister

“ Promising too much, too soon when it comes to alternatives risks rendering the entire effort politically and economically unsustainable. And the world can't afford that.”

Lamar McKay, chairman and president of BP America Lamar McKay, chairman and president of BP America

“ They can’t hinder regulations; that ship has left the dock. Now they try to prepare for this new transition. They say, ‘If we do that, we’ll have a chair at the table and can influence regulation.’ ”

Irja Vormedal, research fellow, University of Oslo Irja Vormedal, research fellow, University of Oslo

“ The usual industry you will find in the BINGO groups are the oil and gas industry, chemical industry — anybody who doesn't want to have their emissions reduced has been coming to this process to try to disrupt it ever since the beginning.”

Rémi Gruet, regulatory affairs advisor, European Wind Energy Association Rémi Gruet, regulatory affairs advisor, European Wind Energy Association

“ The only way you really get leverage is if you can convince a delegation at home that it’s in their interest to have their instructions say this or that.”

Nick Campbell, lobbyist for Arkema Chemicals and climate change chair of the International Chamber of Commerce Nick Campbell, lobbyist for Arkema Chemicals and climate change chair of the International Chamber of Commerce

“ The last thing we want is a target for 2020 that we can’t meet. … We have to reduce our emissions; it’s just a question of speed.”

John Scowcroft, head of environment, Eurelectric John Scowcroft, head of environment, Eurelectric

“ The implication that lobbying somehow is sinister, I don’t buy it. We play an important role in that in terms of information gathering and information sharing.”

Kevin Fay, lobbyist and coolants representative Kevin Fay, lobbyist and coolants representative

“ There’s going to be two more years of detailed nuts and bolts to work out… It's in those details that business will become very active to make sure the rules are written in such a way that favors what they’re going to try to do.”

Doug Russell, former delegate from Canada; now private business consultant Doug Russell, former delegate from Canada; now private business consultant

“ We need to get all the energy and clean it up as fast as we can, as efficiently as we can, while we keep the jobs, because we need the jobs to keep the quality of life improving.”

Red Cavaney, ConocoPhillips Red Cavaney, ConocoPhillips

“ You need a cap on emissions, and you need to signal that that cap is coming so that folks have time to react.”

Michael Allegretti, The Climate Group, an association of corporations and governments Michael Allegretti, The Climate Group, an association of corporations and governments

“ The discussion leading into Copenhagen has been ‘Oh, we need leadership, we need leadership.’ Leadership off a cliff is not leadership.”

John Felmy, economist, the American Petroleum Institute John Felmy, economist, the American Petroleum Institute

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