An important part of the 2015 Paris Climate Agreement is reducing the use of coal to produce electricity. Coal is the dirtiest fuel in common use and not burning it is a way to greatly reduce emissions. Ten years later, coal consumption around the world has decreased dramatically.
The most convenient alternative to coal is natural gas, which is still a fossil fuel, but one that releases less carbon than coal. As a result, around the world many countries have increasingly switched from coal to natural gas.
While the switch is a step in the right direction, it is also one that comes with an unintended consequence. Economists at Stanford University have found that natural gas exports by countries have the effect of discouraging investments in renewable energy. Over the long term, the result is increases in carbon emissions. The Stanford researchers refer to this situation as ‘the gas trap’.
As a result of the gas trap, even countries that are very concerned about climate change and want to take action by abandoning the use of coal may end up reducing their investments in renewables and, ultimately, producing more emissions.
This problem comes about because replacing fossil fuels with renewables requires large investments and can take years before the renewables can fully compete with coal. Natural gas, as a “transition fuel” gives countries time to develop renewable solutions. But natural gas producers keep providing large amounts of their product at attractive prices so that customers buy more and more of it rather than investing in renewables. The gas trap isn’t permanent or inevitable, but it is currently a problem.
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How the rush to quit coal is fueling a new ‘gas trap’
Photo, posted February 7, 2017, courtesy of Christian Collins via Flickr.
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