Monday, August 30, 2021

Unproven technologies, unknown risks: Top SA climate scientists sceptical humanity can ‘geoengineer’ its way out of climate crisis


On a globe already pockmarked by extreme weather events, a mere .4°C away from the thresholds of “dangerous climate change”, nations as well as non-state actors are increasingly looking to technology to pivot humanity from self-imposed disaster on to the path toward salvation.

Scientists say, however, that while possible, there are immense political, economic, ecological, ethical and other societal considerations to be aware of when tinkering with global climate.

Much like South Africa, where multi-year droughts and heat waves are expected to be the most significant climate-change-related challenge, the United Arab Emirates (UAE) is also threatened by extreme temperatures and reduced rainfall. Its National Center of Meteorology has been testing “rain-enhancement” technology to “seed” clouds and tackle the impacts of climate change head-on.

High above the dunes and cityscapes of the UAE, in the skies above Abu Dhabi and Al Ain, drones have been flying among the clouds, releasing electrical charges aiming to merge water droplets, form precipitation and ultimately trigger rainfall according to Gulf Today.



In the absence of complete abeyance of human-caused greenhouse gas emissions, technological alternatives are being proposed to either halt or reverse the heating of the planet. When these technologies and techniques reach a global scale, they comprise what is referred to as “climate geoengineering” (GE). The University of Oxford defines geoengineering as “the deliberate large-scale intervention in the Earth’s natural systems to counteract climate change”.

Professor Bruce Hewitson, South Africa national research chair on climate change and director of the Climate System Analysis Group (CSAG), told Daily Maverick he has reservations about geoengineering.

“I’m deeply sceptical of geoengineering, not because it’s not feasible, but because it has very dangerous potential consequences. I think it is very valid to do research on it so we understand geoengineering options better. So doing research to look at its limits and viabilities is very valid, but I am deeply sceptical that it will ever be a viable option.”

He used SRM as an example saying: “Solar radiation management is managing the amount of sun that is reaching the surface and there are different ways of doing that, but if you do that in one location, if you do something that reduces the sunlight let’s say over the Western Cape, then that has an impact on how the atmosphere responds and that is going to have a change on the climate outside of the Western Cape.” 

His scepticism, Hewitson explained, was because of the unknown nature of the potential impacts of geoengineering and the interconnectedness of the climate system. 

“We’re in a coupled climate system, so whatever you do in one location has a consequence elsewhere. These other consequences are very difficult to map out at this point and we don’t fully understand them, and the problem is that in every region of the world the society is calibrated to the climate it receives. Now if you change the climate, you’re going to disturb the structure of society, you’re going to impact that society whichever way you change the climate,” he said.

“So geoengineering has some very high potential to cause negative impacts, negative consequences while its primary objective of trying to reduce the energy in the atmosphere, trying to reflect sunlight or whatever way you try to approach it — the primary objective is technically feasible. There are a lot of technical scalable options available to us, but the potential consequences of taking those actions are very, very dangerous.”

 Broadly defined, proposed geoengineering techniques fall into one of two categories:

The first is solar radiation management (SRM). The Royal Society, in a report, explains that SRM “refers to proposals to cool the Earth by reflecting a small percentage of inbound sunlight into space, in order to reduce global warming”.

A prominent SRM technique proposal is stratospheric aerosol injection (SAI). SAI is a proposed geoengineering technique that seeks to “engineer global climate through the deliberate injection of aerosols into the stratosphere”. According to a report, the intent is to cool the planet by reflecting sunlight into space.

The oceans have also piqued the interest of climatologists and researchers in the geoengineering space, with marine cloud brightening (MCB) proposed as another SRM technique. MCB is a proposal to whiten the clouds above the oceans to reflect more sunlight into space.

A Royal Meteorological Society paper explains that MCB might involve “using automated ships to spray droplets of seawater into the marine boundary layer where they evaporate to form an elevated concentration of sea-salt aerosols which nucleate higher concentrations of cloud droplets in marine clouds, thereby increasing their reflectivity”.

Unproven technologies

(Source: ScienceDirect)

Dr Pedro Monteiro, head of Ocean Systems and Climate at the Council for Scientific and Industrial Research, told Daily Maverick that, in a way, SRM is “the most problematic of all the interventions” because of the principle it works on. 

Consistent with the views expressed by Hewitson, he explained that solar radiation management cannot be used as a local intervention. It’s hard to reduce the sunlight in just one spot.

“The main problem with it is that the impacts that SRM have regionally are very uncertain and it is quite possible that in some areas there could be positive outcomes, ie, cooling. It could also just as much be possible that there could be very negative effects in areas, and the models are at this stage not able to provide us with the confidence level that would make the intervention viable. So the point is really the uncertainty around the global versus regional impacts of SRM.” 

The other main problems are that the technologies don’t yet exist at scale and that if they were stopped, the benefits of their use would swiftly disappear, Monteiro said. 

“So, on three levels: the unproven technologies, the unknown risks and the lack of a governance system that would ensure multidecadal continuity [make] SRM something that is pretty much off the table as an intervention.”

The second category of geoengineering techniques is the much-vaunted carbon dioxide removal (CDR). The Intergovernmental Panel on Climate Change (IPCC) defines CDR simply as “the process of removing CO2 from the atmosphere”.

The IPCC report explains that there are two main types of carbon dioxide removal, namely: “enhancing existing natural processes that remove carbon from the atmosphere (eg, by increasing its uptake by trees, soil, or other ‘carbon sinks’) or using chemical processes to, for example, capture CO2 directly from the ambient air and store it elsewhere (eg, underground)”.

Monteiro said that “CDR is in essence… reversing the emissions of CO2 over the past century”.

Monteiro, an author in the recent “code red for humanity” IPCC report, said that, “We now understand enough about the carbon climate system to be able to say confidently that the only way we will stay under the 1.5-degree temperature objective is through the implementation of CDR at the scale that has an impact on the global CO2 concentration in the atmosphere.

“So that makes it sort of a prime approach. In other words, to get us into a safe climate space, CDR is sort of the broad box that we have that is probably workable. However, the problem is that there are no proven CDR techniques that scale up to the level that is required at this stage,” he said.

“I want to really emphasise that there are two stages for getting to 1.5°C and keeping us there. The first stage is what’s called net zero and to get to net zero we need to stop CO2 emissions. In order to stay at 1.5°C we need to go into negative emissions in the second half of the century and this is where CDR comes in.

“CDR are central to implementing negative emissions in the second half of the century and beyond. So from a global and a South African perspective, the big challenge is that there are no proven techniques at this stage that scale up to the required global impact.”

In an article in Nature, the authors argue that “current mitigation efforts and existing future commitments are inadequate to accomplish the Paris Agreement temperature goals”. The “Long Term Global Goal” of the Paris Agreement on Climate Change is to restrict global warming to values well below 2°C above pre-industrial levels because above these levels aspects of climate change become increasingly dangerous in terms of impact.


The authors in Nature continue that “although research indicates that several techniques may eventually have the physical potential to contribute to limiting climate change, all are in early stages of development, involve substantial uncertainties and risks, and raise ethical and governance dilemmas. Based on present knowledge, climate geoengineering techniques cannot be relied on to significantly contribute to meeting the Paris Agreement temperature goals.”

Hewitson told Daily Maverick that geoengineering is only being discussed “because society is not willing to engage with our fossil fuel dependency”.

“If we could change our fossil fuel dependency and our emissions, these geoengineering options would be far less needed to be thought about and discussed. It’s like trying to treat someone for cancer who has been smoking but they refuse to stop smoking. It’s illogical. You can do it. You can treat someone who has cancer from smoking but really they should stop smoking. Geoengineering is trying to treat somebody who is perpetuating the cause of the problem.”

The real geoengineering solution, he said, is for society to change how we use and generate our energy systems and to reduce greenhouse gas emissions. OBP/DM


This article first appeared on Daily Maverick and is republished here under a Creative Commons license.

ANOTHER REPUBLICAN PROVINCE

Several Sask. ICUs full, unable to admit patients

Saskatoon, Prince Albert and North Battleford ICUs are on 'bypass'

Staff on the ICU Unit at the Peter Lougheed Centre in Calgary on April 17, 2020. (Leah Hennel/AHS)

As of Monday morning, intensive care units in some Saskatchewan cities are full.

Saskatoon, Prince Albert, and North Battleford ICUs are on "bypass," which could be because of increasing COVID-19 cases, according to Saskatchewan Health Authority Critical Care Lead Dr. Jeffrey Betcher. 

In an interview with CBC Saskatoon Morning host Leisha Grebinski, Betcher said that means ICUs in those locations are full, and that any patient who needs an ICU in the north or Saskatoon will be referred south to Regina. 

"There are things like staffing issues as well, and we have to be able to provide the care that patients need safely," Betcher said. 

"We can't just take the patient because they need it. We have to make sure that we can meet the needs that they have as well."

Betcher said he's bracing himself for a similar situation to April 2021, when there was a record number of patients in intensive care.  

"I'm hoping it's not going to happen, but as schools open and a lot of the restrictions were lifted earlier this summer, the anticipation and prediction is that this could well happen again. And we just need to prepare mentally for it as well," he said. 

There are currently 25 people in ICUs across the province. (Evan Mitsui/CBC)

Beyond the issues this could cause for patients needing ICU admission, Betcher is also concerned about the impact on the medical community. 

"We don't just work and sleep, we need downtime to recharge. And a lot of that is not able to happen like it normally does," he said. 

As of Aug. 29, there were 33 people in hospital with COVID-19 in the Saskatoon region, with 15 in intensive care. In Regina, there are 12 people in hospital, five in ICU. 

Urgent action needed

Several members of the Sask. medical community have taken to Twitter in recent days to discuss what's going on in the hospitals they work in, expressing frustration and exhaustion. 

Doctors and nurses are painting a grim picture of crowded ICUs, and younger and younger people suffering from COVID-19. 

In an interview with Morning Edition host Stephanie Langenegger, infectious disease physician Dr. Alexander Wong said that the bypass is causing a strain on the system and that urgent action is needed.

"We're a small province. The impact of one or two big centres is going to be felt very very quickly across the entire province," said Wong. 

Wong said that what Saskatoon ICUs are experiencing right now is similar to what Regina experienced in March and April. It was so bad, according to Wong, that he referred to it as a war zone situation. 

"The challenge now with this fourth wave is we just don't have staff. I think we're pulling all kinds of people out of retirement from other areas and so forth to staff these critical care beds," he said. 

"And unfortunately, what that means is we may get into a situation when things are too overrun, where we're going to have to make triage decisions and where people who otherwise may have had the ability to get ICU-level care and critical care support — we might have to let those people go.

"We absolutely do not want to get there, which is why we need to take action now."

Dr. Alexander Wong, infectious diseases specialist, says vaccines aren't enough to get the province through a fourth wave. (CBC News)

Wong also said that vaccines won't be enough to get through the fourth wave, and that other measures such as mask mandates should once again be implemented. 

SHA Critical Care Lead Dr. Jeffrey Betcher said that no matter the situation, however, if someone is in need of medical attention, they should seek care. 

"If you're in a car accident, if you have a heart attack, or if you have any of those sorts of emergencies, you will not be neglected," Betcher said.  

"You will be looked after and you will be looked after as well as you were before." 

A strike at Nabisco is testing the power of unions in the pandemic

REUTERS/DADO RUVIC/ILLUSTRATION

Nabisco workers are striking.

By Michelle Cheng
Reporter
Published August 30, 2021

Since Aug. 10, about 1,000 union workers across five states who make Ritz crackers and Oreo cookies for Nabisco have been on strike over contract disagreements.


As America’s appetite for snack foods has grown during the pandemic, Mondelez International, Nabisco’s parent company, wants some employees to work longer shifts to make more high-demand items. Union workers oppose the new schedules, saying their hours are already long and the change would take away time spent with their families.

Over the last 18 months, waves of workers have gone on strike, from Instacart workers turning off their apps to Amazon fulfillment workers walking off. Last month, a 19-day strike with Frito-Lay workers in Topeka, Kansas, resulted in a negotiated wage increase and a day off every week, ending forced overtime and 84-hour work weeks.

Labor unions have increased power

The heightened employee activism in part stems from the pandemic, where workers have had to work in more unsafe conditions or with less favorable schedules. Now, with a tight labor market, where employers have been offering bonuses and higher wages to attract workers, labor unions may have the power to ask for more.

“Workers have more power to demand more rights, and unions have more power to demand more from employers like Nabisco,” says Patricia Campos-Medina, the executive director at The Worker Institute at Cornell University. “So, in a tight labor market, when society is more acutely aware of the value of essential workers, unions and workers have the power to demand more.”

At its Nabisco factories, Mondelez wants to implement “alternative work schedules” on select high-demand production lines where employees work 12 hours shifts for three to four days. Workers assigned to these lines would have a three-day weekend every other week. Since the start of the pandemic, Nabisco workers say they have been putting in at least 13 hour shifts—and some have had enough.

“They just care about putting out cookies and production, they don’t care about anything else,” says Jesus Jimenez, a packing worker in Portland, Oregon, who has been working for the company for 10 years, and is president of Bakery, Confectionery, Tobacco Workers & Grain Millers International Union local 364. In the second quarter, Mondelez reported a revenue increase of 12% from the same period last year.

“We remain committed to bargaining in good faith to reach new contracts for our employees,” said Laurie Guzzinati, a Mondelez spokesperson.

Some members who are picketing already have part-time or full-time jobs that pay well, says Jimenez. He says he receives emails and texts for jobs that pay at least $20 an hour, with benefits and bonuses, and are close to his house. “There’s way too many jobs right now…we might lose good members that are going to be hard to replace,” says Jimenez. “The experience that you have that counts a lot—the experience we have working those machines, working the department, mixing and baking, even packing.”
How did Covid-19 change union bargaining?

The current environment also means workers who don’t like their jobs can find better ones—without a union. “While the pandemic has made unions much more directly relevant to workers…I don’t know how long that effect is going to last,” says Julia Pollak, a labor economist at ZipRecruiter.

For unions, the stakes could not be higher, with the pandemic having a direct effect on jobs. Union enrollment has been on a decline for decades: Just 10.8% of US employees are in unions and only 6.3% of private sector workers are unionized, according to US Bureau of Labor Statistics. “It’s more difficult to get new hires to join the union,” says Pollak. There’s been scrutiny around the costs of unionization dues and political involvement, for instance, she says.

Responding to concerns of workers during the pandemic, unions have taken on new responsibilities by advocating for more PPE or pushing for more Covid-19 safety standards. As companies try to find ways to cut costs by extending work shifts, unions have also taken on the role of advocating for mental health resources.

As seen with recent failures like the Amazon union vote and attempts to unionize gig workers in New York, unions have struggled to expand, says Pollak. “You just see huge ambivalence among workers about unions and their role,” she says. That said, there has been recent momentum for white-collar unions among tech companies like Kickstarter and Google, museums, and at media companies.

The recent infrastructure bill, which would create jobs in areas like construction and public services, could also bolster union membership, according to labor experts.

 

EPA is falsifying risk assessments for dangerous chemicals, say whistleblowers

Agency scientists say management silences and harasses them to appease chemical industry

‘Managers seem to think their job is to get as many new chemicals on the market as fast as possible,’ Kyla Bennett said. Photograph: Andrew Kelly/Reuters

Whistleblowers say the US Environmental Protection Agency has been falsifying dangerous new chemicals’ risk assessments in an effort to make the compounds appear safe and quickly approve them for commercial use.

Over the past five years, the EPA has not rejected any new chemicals submitted by industry despite agency scientists flagging dozens of compounds for high toxicity. Four EPA whistleblowers and industry watchdogs say a revolving door between the agency and chemical companies is to blame, and that the program’s management has been “captured by industry”. The charges are supported by emails, documents and additional records that were provided to the Guardian.

“The depth of it is pretty horrifying,” said Kyla Bennett, New England director of Public Employees for Environmental Responsibility (PEER), a non-profit whose attorneys are representing the four scientists. “I don’t sleep at night knowing what I know from the whistleblowers.”

Their July allegations, which were sent to lawmakers and federal oversight bodies, sparked an investigation by the EPA’s inspector general into the office of chemical safety and pollution prevention, and the House of Representatives this month requested information from the new EPA administrator, Michael Regan. The whistleblowers say similar problems existed during the Obama administration, accelerated under Trump, and have persisted under Biden.

Congress enacted legislation in 2016 designed to tighten oversight of the toxic chemical approval process. Instead, career EPA managers have worked to sabotage the process by altering risk assessments, waging harassment campaigns against employees, internally accelerating the approval process and retaliating against staff who raise concerns, according to the four agency scientists.

The charges also reveal how management has systematically undermined scientists while working to quickly rubber-stamp dangerous chemicals as safe for use by industry and in consumer products. The managers in question are employees rather than political appointees, making the situation more difficult to address because they don’t turn over with a new administration, Bennett said.

The alterations to risk assessments mostly involved the deletion of health hazards without the authors’ knowledge after assessments were submitted. Documents show that in one file managers deleted all references to a chemical’s carcinogenicity. In other cases, managers asked scientists with less expertise on a subject to sign off on changes without informing the assessment’s author.

The chemical industry has regularly objected to EPA scientists’ conclusions about the dangers of new chemicals, and whistleblowers say it was clear that companies were pressuring management to make changes. In one case, a manager allegedly yelled that a company “went apeshit” over a risk assessment that flagged a chemical’s carcinogenicity, and demanded that the scientist delete that portion, a request that was refused. The scientist was soon transferred out of the division.

Documents show that cases in which scientists and industry were at odds were labeled “hair on fire”, and taken over by a manager who would expedite the approval process and overrule EPA chemists. A management schedule showed managers on daily “HOF duty”, highlighting how frequently industry and scientists disagreed.

In one case, management requested a “button”, or software function, to bypass scientific review in “hair on fire” cases, a November 2020 recording of a conversation between an information technology consultant and managers revealed.

Management also appeared to sabotage the review process by barring staff from talking with other agency experts about a new chemical, which scientists say is critical to developing a complete risk assessment. Whistleblowers said management punished employees who didn’t complete the assessments within 90 days, which scientists say is too short a timeframe.

“Managers seem to think their job is to get as many new chemicals on the market as fast as possible,” Bennett said.

Those who pushed back against management were often berated, threatened and insulted, one former scientist who declined to use their name for fear of retaliation told the Guardian. In one instance, a manager allegedly threw a memo at a chemist. Emails show that management asked a scientist to make bogus harassment charges against another chemist who wouldn’t make changes to a risk assessment that managers had demanded.

Managers’ motivation appeared to be financial, Bennett said. They regularly bounce between the EPA and industry, and the access to the EPA helps them land lucrative private sector jobs. “They’re selling their soul,” Bennett said. “It’s money, it’s greed, but it doesn’t make sense. Don’t these people have any children or grandchildren? Don’t they care?”

The EPA did not respond to requests for comment.

In an interview with the Guardian, a whistleblower with a PhD in toxicology detailed confrontations with management. In one instance, the whistleblower found that a single dose of a chemical could cause malformation in a rodent’s brain. Workers would be handling the chemical five days a year, so the risk assessment draft included a warning about the danger of exposure to a single dose.

That would have caused restrictions to be placed on the chemical’s use, but a manager claimed that the malformation would happen only after repeated exposures, and objected to the inclusion of the warning because workers wouldn’t be handling the chemical on consecutive days. Management instead wanted to change the assessment to say that the chemical presented a low risk, the whistleblower said, which was too vague and put workers in danger.

“It’s frustrating because the majority of people who I work with, including myself, came to the EPA to carry out the agency’s mission of protecting human health and the environment, and to have this kind of pushback in the agency – it makes no sense,” the whistleblower said.

In another instance, managers wouldn’t let the whistleblower use an analog chemical because they were concerned the analog was too toxic. Analogs are existing chemicals that are structurally similar to new chemicals and used to assess a new chemical’s potential health risks. Using an underprotective, less toxic analog could underestimate the new chemical’s health threat. The whistleblower said a manager berated them in front of co-workers for using the more toxic analog, telling them that they weren’t qualified for their position.

“The managers basically said that the company was going to think that we were bad at our jobs and [management wasn’t] going to defend us,” the whistleblower added.

The assault on the division’s scientific process has left its scientists demoralized. A 2020 survey of EPA employees found the chemical division had the most negative view of management and the highest overall dissatisfaction rate in the agency.

Whistleblowing in this situation was “a matter of common good” and EPA employees were facing an ethical obligation to speak out, said Joan Harrington, director of social sector ethics at Santa Clara University.

“The reason we have whistleblower statutes is to reveal this kind of thing, so assuming the allegations are correct … they are sort of ethically obligated to come forward and reveal this information, because the harm that could come by not fairly evaluating these chemicals is extraordinary,” Harrington said.

The EPA inspector general appeared to be conducting a serious evaluation, Bennett said, and it will eventually make corrective recommendations to the EPA, though she added that the agency has a history of ignoring them. The inspector general could forward the case to Congress for action if the EPA doesn’t act.

The House committee on energy and commerce letter to Regan, the EPA director, called the whistleblowers’ allegations “troubling”.

“We … firmly believe EPA’s scientific staff must be able to perform their work of protecting human health and the environment free from inappropriate interference and retaliation,” the letter reads. It questions whether EPA leadership grasps the situation’s gravity and whether any chemicals that have been approved will be reassessed. The committee could potentially open a full investigation and hearing.

In response to concerns raised by PEER, EPA chemical program leadership claimed that it eliminated management’s rule that barred employees from speaking to one another, though Bennett said it was unknown whether the rule has been changed in practice. She added that PEER was “not confident but hopeful” that EPA leadership will take more meaningful action and remove the managers.

“We’re banking on the Biden administration doing the right thing by holding people accountable. We’re not 100% confident that that’s going to happen, but we’re trying,” Bennett said.


US regulators target oil and gas mergers as fuel prices surge

The decision also comes as oil prices have become a political liability for US President Joe Biden, heightened by fresh concerns that Hurricane Ida could further push up prices at the pump.

United States Federal Trade Commission Chair Lina Khan is directing staff to identify new legal theories to challenge retail fuel station mergers and investigate possible collusion by national chains to push up prices, she said in an August 25 letter to the White House obtained by Bloomberg News
 [File: Graeme Jennings/Washington Examiner/Bloomberg]

By Justin Sink
Bloomberg
30 Aug 2021

The Federal Trade Commission is examining ways to crack down on mergers and acquisitions in the oil and gas industry and investigate whether gas station franchise networks are driving up gas prices as part of a Biden Administration effort to combat higher prices at the pump.

FTC Chair Lina Khan is directing staff to identify new legal theories to challenge retail fuel station mergers and investigate possible collusion by national chains to push up prices, she said in an Aug. 25 letter to White House economic adviser Brian Deese obtained by Bloomberg.

The FTC also plans to impose “prior approval” requirements to deter oil and gas mergers, including in retail gas markets, that could be illegal.

“Over the last few decades, retail fuel station chains have repeatedly proposed illegal mergers, suggesting that the agency’s approach has not deterred firms from proposing anticompetitive transactions in the first place,” Khan said.

The FTC is planning to ratchet up investigations into abuses in the retail fuel station franchise market, she added.

“We will need to determine whether the power imbalance favoring large national chains allows them to force their franchisees to sell gasoline at higher prices, benefitting the chain at the expense of the franchisee’s convenience store operations,” Khan said.

Khan said the decision to toughen requirements was prompted by “significant consolidation” in the industry during recent years. But the decision also comes as oil prices have become a political liability for President Joe Biden, heightened by fresh concerns that Hurricane Ida could further push up prices at the pump.

The Gulf is home to 16% of U.S. crude production, 2% of its natural gas output, and 48% of the nation’s refining capacity. Gasoline futures were up sharply Monday morning after the Category 4 storm made landfall in Louisiana.



Hurricane Ida pummels energy suppliers
The storm tore through US offshore oil and gas fields and the production losses will push up retail gasoline prices.
30 Aug 2021

 

Which Countries Are Still Selling Coal To China?

Back in April, in the midst of a contentious trade spat and unofficial coal embargo between China and Australia, Oilprice speculated that the winner of the battle may not be either of the nations involved, but the United States. As China refused Australian coal imports, other coal-producing nations were all too happy to step up and fill the demand. Now, as the dust settles, it’s clear that the winner was not only the United States but some other less likely contenders, including India, Indonesia, Mongolia and Russia. 

While China has been talking a big game about decarbonizing, the nation still consumes gargantuan volumes of coal day to day, with coal accounting for more than half of the country’s energy mix. President Xi Jinping surprised the world with his unexpectedly lofty climate pledges in late 2020, when he promised that China would reach peak oil consumption by just 2030 and then achieve all-out carbon neutrality by 2060. At the same time that Beijing was making these pledges out of one side of its mouth, however, China was also ramping up coal production both domestically and overseas, imperiling global climate goals while also presenting itself as a leader in the decarbonization initiative.

Such is the magnitude of China’s coal addiction that when China ramped up its trade spat with Australia by instituting an informal boycott of Australian coal, entire Chinese cities went darkThe unofficial embargo was just the latest in a far lengthier saga of intensifying political tensions between China and Australia in the last two years. “Relations between the two nations soured last year after Australia supported an international inquiry into China’s handling of the coronavirus pandemic,” CNBC reported toward the end of 2020. Coal was not the only Australian good being boycotted, but the outsized effects of the coal ban “revealed the lengths to which China is willing to go for a bit of geopolitical strong-arming,” as Oilprice reported in April of this year. 

Related: Oil Stages Strong Recovery

The blackouts didn’t last long, however, as coal producers around the world stepped up to fill the gaps left in the vast demand of the world’s largest coal importer, as well as to buy up the price-reduced Australian coal. In April, at the height of the saga, when Australian coal-bearing ships were stranded in Chinese waters, India purchased a record amount of Australian thermal coal. South Korea, Japan, and Taiwan also bought increased amounts of the cheap Australian thermal coal, which was suddenly far more affordable than its South African counterpart of a similar grade. These disruptions are continuing to ripple through global supply chains. “Global trade flows will be self-adjusting with Australian coal flowing to Indian and European markets and South African and Colombian sources coming into China,” Winston Han, chief analyst from China Coal Transportation and Distribution Association, was recently quoted by Reuters.

Thermal coal importers were not the only beneficiaries of the spat between China and Australia. “The ban has also benefited coal exporters in Indonesia, Mongolia and Russia as China’s buyers switched suppliers, according to the latest Chinese customs data,” Reuters reported, noting that Indonesian coal miners inked a $1.5 billion supply deal with China in November 2020. The United States, Canada, and Russia, have also reaped the benefits of China's increased appetite for high-quality metallurgical coal outside of Australia. China has had to pay a premium for this kind of coal used in the steelmaking process, as U.S. coal is more expensive and incurs higher shipping costs. 

This scramble for coal market share is taking place at a time when experts are imploring world leaders and industry executives to leave coal in the ground. Just this month, U.N. Secretary General António Guterres introduced the latest Intergovernmental Panel on Climate Change report as a “code red for humanity” that must sound as a “death knell for coal.” But while we have reached the point of no return for global warming, the coal trade and consumption in China shows that coal will not be stamped out overnight. 

By Haley Zaremba for Oilprice.com