Climate Policies’ Particular Susceptibility to ISDS Challenges
<snip>
Two principal reasons. First, several classes of climate policies place restrictions on corporations and how much they can pollute. Second, much of climate policy is currently being built (e.g. Intended Nationally Determined Contributions) and would, therefore, introduce a deviation for companies from business as usual. Both of these dynamics would likely trigger companies to seek redress in ISDS to settle disputes.
Trade Deals Expand Liquid Natural Gas and Methane Emissions
The TPP and the TTIP trade deals would enable an expansion of trade in liquefied natural gas (LNG) resulting in:
Higher methane emissions,
Higher natural gas prices in the U.S., and
Reduced incentives for low carbon energy development in countries covered by the TPP and the TTIP, including in the U.S.
The life cycle emissions of LNG are 20 percent more energy intensive than those of gaseous natural gas. If LNG is exported from the U.S. under the auspices of a trade deal, according to a 1992 amendment to the Natural Gas Act:
“Any LNG imports or exports to America’s free trade partners is automatically considered to be in the public interest, and the DOE would forfeit its authority to conduct an impact assessment to determine if the exports were a net harm or boon to the American citizenry.”
Over 40 companies have filed applications for LNG export licenses with the Department of Energy (DOE), which would have to automatically approve all LNG exports to TPP countries under the TPP deal. Result? Expect natural gas fracking to expand rapidly and markets to shift back to cheaper, higher emitting coal as prices rise (a Dow Chemical report predicts that a high-export scenario could feasibly cause natural gas prices in the U.S. to triple by 2030).
The increased export of LNG would require new infrastructure, including a network of new wells, terminals, liquefaction plants, pipelines, a fleet of special ships, and regasification compressors that risk locking countries into high emission energy sources. The TPP and TTIP could also suppress investments in renewables and transition to low carbon fuel sources by diverting funding to developing LNG markets and infrastructure.
<snip>
http://climatenexus.org/learn/solutions-policy/us-trade-deals-and-climate-policy-impacts
= new reply since forum marked as read
