ABSTRACT
As the COVID‐19 virus spread over the world, governments restricted mobility to slow transmission. Public health measures had different intensities across European countries but all had significant impact on people's daily lives and economic activities, causing a drop of CO2 emissions of about 10% for the whole year 2020. Here, we analyze changes in natural gas use in the industry and gas distribution to the built environment during the first half of year 2020 with daily gas flows data from pipeline and storage facilities in Europe. We find that reductions of industrial gas use reflect decreases in industrial production across most countries. Surprisingly, natural gas use in the built environment also decreased despite most people being confined at home and cold spells in March 2020. Those reductions that we attribute to the impacts of COVID‐19 remain of comparable magnitude to previous variations induced by cold or warm climate anomalies in the cold season. We conclude that climate variations played a larger role than COVID‐19 induced stay‐home orders in natural gas consumption across Europe.
ABSTRACT
The remaining carbon budget for limiting global warming to 1.5 degrees Celsius will probably be exhausted within this decade1,2. Carbon debt3 generated thereafter will need to be compensated by net-negative emissions4. However, economic policy instruments to guarantee potentially very costly net carbon dioxide removal (CDR) have not yet been devised. Here we propose intertemporal instruments to provide the basis for widely applied carbon taxes and emission trading systems to finance a net-negative carbon economy5. We investigate an idealized market approach to incentivize the repayment of previously accrued carbon debt by establishing the responsibility of emitters for the net removal of carbon dioxide through 'carbon removal obligations' (CROs). Inherent risks, such as the risk of default by carbon debtors, are addressed by pricing atmospheric CO2 storage through interest on carbon debt. In contrast to the prevailing literature on emission pathways, we find that interest payments for CROs induce substantially more-ambitious near-term decarbonization that is complemented by earlier and less-aggressive deployment of CDR. We conclude that CROs will need to become an integral part of the global climate policy mix if we are to ensure the viability of ambitious climate targets and an equitable distribution of mitigation efforts across generations.
ABSTRACT
Solar PV has seen a spectacular market development in recent years and has become a cost competitive source of electricity in many parts of the world. Yet, prospective observations show that the coronavirus pandemic could impact renewable energy projects, especially in the distributed market. Tracking and attributing the economic footprint of COVID-19 lockdowns in the photovoltaic sector poses a significant research challenge. Based on millions of financial transaction records and 44 thousand photovoltaic installation records, we tracked the spatio-temporal sale network of the distributed photovoltaic market and explored the extent of market slowdown. We found that a two-month lockdown duration can be assessed as a high-risk threshold value. When the lockdown duration exceeds the threshold value, the monthly value-added loss reaches 67.7%, and emission reduction capacity is cut by 64.2% over the whole year. We show that risks of a slowdown in PV deployment due to COVID-19 lockdowns can be mitigated by comprehensive incentive strategies for the distributed PV market amid market uncertainties.