Today’s G8 Statement on Climate Change and the Environment commits member countries to a “goal of achieving at least 50% reduction of global emissions by 2050,” and embraces the need to “ensure an effective and ambitious global post-2012 climate regime,” but does not provide details on the types of “meaningful mitigation actions” that countries might adopt.

In recognition of the need for near-term political action on climate change, G8 members agree in the Statement to implement “economy-wide mid-term goals” on greenhouse gas emissions reductions. While recognizing the U.S. goal of stopping the growth of greenhouse gas emissions by 2025, the Statement is ambiguous on specific reduction commitments, and was criticized by some environmental groups as a “failure of responsibility.”

The Statement received additional criticism from the “G5″ nations for including strong language requiring emission reduction commitments from “all major economies” under a future global climate treaty. The requirement for a “global response…consistent with the principle of common but differentiated responsibilities” is considered to be a U.S.-driven push to increase pressure on countries like China and India in the post-Bali climate negotiations. Additional discussions on these topics are likely to take place during tomorrow’s Major Economies Meeting.

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Following Australia’s recent ratification of the Kyoto Protocol, the Federal Government intends to unveil its emissions trading scheme (ETS) by the end of this year, for commencement in 2010.  The key publications released to guide the development of the scheme, include the 2006 National Emissions Trading Taskforce’s report, the 2007 Prime Minister’s Task Group proposals, and the newly released Garnaut Review.

Professor Garnaut, an Australian National University economist asked by the Rudd Government last year to research the likely economic effects of an ETS, released his draft report on July 4, with the final report scheduled for release on September 30.  Garnaut’s report outlines the following key issues:

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Congress returns from the July 4th holiday this week and will begin the process of wrapping up business for the upcoming August recess and Presidential campaign season. While the Climate Security Act met its demise in June, there is still plenty of deliberating on energy in the Committees on both sides of the Capitol.

The highest profile hearing will likely take place in the Energy and Air Quality subcommittee of the Energy and Commerce Committee on Thursday at 10 AM where a hearing on the Carbon Capture and Storage Early Deployment Act will be held {webcast}. The witness list has not been released at this time.

Chairman Boucher recently introduced H.R. 6258, a bill which would accelerate the development and early deployment of carbon capture and storage systems to utilities. Some environmental groups have expressed their opposition to the bill, but the legislation has gained an important mix of Republican (including ranking member Barton) and Democratic co-sponsors. With Chairman Boucher still promising to produce a bill this year, it is likely that H.R. 6258 will serve as a marker for how coal state Democrats can find agreement with a hard cap on carbon.

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In what should be received as good news within the solar industry, the Bureau of Land Management (BLM) yesterday decided to continue accepting applications for large scale solar projects on public lands. The announcement reversed a May 2008 decision to freeze new application reviews pending the completion of a Programmatic Environmental Impact Statement on the impact of solar plant development.

Solar thermal power is “the fastest-growing, utility-scale renewable energy alternative after wind,” according to Business Week, and is increasingly attaining status as a legitimate market player and political talking point. The long-term success of solar energy initiatives, however, depends to a considerable extent on the provision of a variety of federal, state, and local tax credits and incentives that reduce the initial costs of capital outlay, provide research and development compensation, ensure economic viability, and otherwise nurture the nascent industry.

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In an op-ed published in today’s Moscow Times, Akin Gump Senior International Advisor Toby Gati analyzes emerging policy signals indicating an increased interest in renewable energy and energy efficiency projects in Russia.

Mrs. Gati is the former special assistant to President Bill Clinton for Russia and the Eurasian States and Assistant Secretary of State for Intelligence and Research.

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The air pollution permit for a new 1200 megawatt coal-fired power plant in Early County, Georgia, was revoked yesterday by a state court judge.  Environmental groups challenged Longleaf Energy Associates’ (Longleaf) permit approval, arguing (among other things) that Longleaf did not properly account for CO2 emissions or incorporate the required pollution control technologies in the plant design.

Superior Court Judge Thelma Wyatt Cummings Moore ruled that the permit must “identify, evaluate, or apply available technologies that would control CO2 emissions” at the plant.  Citing the 2007 Supreme Court decision in Massachusetts v. EPA, Judge Moore wrote that “there is no question that CO2 is ’subject to regulation under the [Clean Air] Act’” (CAA).

Any air pollutant that is subject to regulation must be mitigated with “Best Available Control Technology” (BACT).  Judge Moore rejected Longleaf’s argument that CO2 is not subject to regulation because there are no controls or limits on CO2 emissions under the CAA - or any other federal law.  “Since CO2 is ‘otherwise subject to regulation under the Act,’ a . . . permit cannot issue for Longleaf without CO2 emission limitations based on a BACT analysis.”

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