Coal-free cities: the health and economic case for a clean energy revolution - September 2021
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Table of contents C40 is a network of nearly 100 mayors of the Glossary & Acronyms 4 world’s leading cities who are working to deliver Executive summary 6 the urgent action needed right now to confront the climate crisis and create a future where Key findings 8 everyone, everywhere can thrive. Mayors of C40 cities are committed to using a science-based Introduction | The greatest threat, the biggest and people-focused approach to help the world opportunity 10 limit global heating to 1.5°C and build healthy, equitable and resilient communities. Through About this research 12 a Global Green New Deal, mayors are working The Centre for Research on Energy and Methodology Summary 12 alongside a broad coalition of representatives Clean Air (CREA) are a new independent from labour, business, the youth climate research organisation focused on revealing the movement and civil society to go further and Chapter 1 | Current national plans and the “ambition gap” 14 trends, causes, and health impacts, as well as the faster than ever before. The current Chair of solutions to air pollution. C40 is Mayor of Los Angeles Eric Garcetti; and Chapter 2 | What’s at stake for C40 cities 20 three-term Mayor of New York City Michael R. The high price of air pollution 22 Bloomberg serves as President of the Board. C40’s work is made possible by our three Creating jobs while cleaning the grid 28 strategic funders: Bloomberg Philanthropies, Lower investment costs, cleaner electricity 30 Children’s Investment Fund Foundation (CIFF), and Realdania. Vivid Economics is a strategic economics Chapter 3. How cities can accelerate the transition To learn more about the work of C40 and our consultancy spanning public policy and support from coal to clean energy 32 cities, please visit our website, or follow us on for commercial decision making with a broad, Rapidly phase out coal 34 Twitter, Instagram, Facebook and LinkedIn. international focus. Shift demand from coal to clean energy 38 Reduce demand 40 Accelerate renewable generation 40 Ensure an equitable and just transition 42 Key takeways 44 Endnotes 46 Authors & Acknowlegements 48 Wellcome supports science to solve the urgent The Center for Global Sustainability health challenges facing everyone. They support (CGS) at the University of Maryland utilizes a discovery research into life, health and wellbeing, collaborative, interdisciplinary approach to deliver and they are taking on three worldwide health research, education, and engagement for policy challenges: mental health, global heating and impact. CGS was created in response to the global infectious diseases. need for integrated analytics and engagement to support higher ambition in achieving climate, development, and sustainability goals. THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Glossary Acronyms 1.5°C scenario The 1.5°C scenario is based on greenhouse gas emissions reductions from coal- CO2 carbon dioxide generated electricity in line with the Paris Agreement and assumes that cities COVID-19 coronavirus disease 2019 in OECD countries transition to 100% renewable electricity by 2030 and cities in non-OECD countries by 2050. GDP gross domestic product Air pollution Air pollution refers in this report to PM2.5, NO2 and SO2 as these are the GHG greenhouse gas pollutants included in the study. GW gigawatt Cardiovascular disease A cardiovascular disease is a disease relating to the heart and circulatory system, IEA International Energy Agency including stroke and problems with arteries or veins in other parts of the body. IPCC Intergovernmental Panel on Climate Change Current plans scenario Current plans scenario is based on coal-fired power plants within the Global LCOE levelised cost of electricity Energy Monitor’s Coal Plant Tracker. The analysis includes: operating plants; plants in the pipeline - including pre-construction plants (announced, MW megawatt pre-permit and permitted) and plants in construction; and plants already MWh megawatt-hour scheduled for retirement. NDC Nationally Determined Contribution Coal capacity Coal capacity refers to the amount of electricity operating coal power plants can produce when running at full power. OECD Organisation for Economic Co-operation and Development PV photovoltaic Direct jobs Direct jobs are those which are a direct output from investment on the intervention, for example labour required to deliver an intervention. USD United States dollar Indirect jobs Indirect jobs are those which are supported across the supply chain. Mortality rate Mortality rate refers to the deaths in the population. Nitrogen oxides (NOX) NOX are poisonous gases that stem from combustion processes, such as electricity generation. Particulate matter (PM) PM is the mixture of solid particles and liquid droplets in the air. PM2.5 PM2.5 is the mass concentration for every cubic metre (m3) of air particles with a diameter of less than 2.5 micrometres (μm). Often called “fine particulate matter”, these air particles can penetrate deep into the lungs. Respiratory disease Respiratory disease is an illness relating to the lungs. Sulphur dioxide (SO2) SO2 is a toxic gas and major air pollutant derived from burning sulphur- containing fossil fuels. 4 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Executive summary There is no place for coal in a climate- The findings, which describe impacts on The scale of the ambition gap is huge. Urban action on coal can provide an safe world. Phasing out coal is the single 61 C40 cities across 27 countries between Our research shows that to stay in line with essential contribution to achieving 1.5°C. biggest step we can take to keep global 2020 and 2030, are based on detailed city- a 1.5°C scenario coal capacity in and around A rapid phase out of coal from C40 city’s heating below the 1.5oC threshold. Coal is by-city modelling and present a clear urban C40 cities needs to decrease by 61% between electricity could prevent around 1.3 GtCO2e the largest source of electricity in the world case for the rapid phase-out of coal and 2020 and 2030. However, current coal plans of GHG emissions. If C40 cities collaborate – and the largest source of greenhouse gas transition to clean energy. within 500 km of C40 cities will actually with other stakeholders to phase-out all emissions, accounting for more than 30% of increase coal capacity by 4% over this period. coal-generated electricity across their energy-related CO2. Coal is deadly for cities. Based on surrounding energy region, the avoided currently announced national coal policies, It doesn’t have to be this way. Clean emissions increase to a cumulative total of Cities are at the centre of the global 264,900 people could die prematurely due energy alternatives already exist and there 24 GtCO2e, equivalent to 6% of the world’s energy transition. They account for to air pollution caused by coal-fired power is no excuse for new coal capacity. All urban total remaining carbon budget. two-thirds of global energy use – meaning plants. With a rapid transition to clean residents deserve to live in cities that are they both influence and are influenced by energy, many of these lives could be saved. free from coal. Given the urgent nature of Cities are already leading the energy the shift from coal to clean energy, and the climate crisis, rapidly phasing out coal is transition by actively phasing out coal, the impact of this on climate, health and Coal affects all aspects of residents’ critical to keeping global temperature rise to shifting demand to clean energy and prosperity. health, contributing to 121,100 preterm below 1.5°C. Critically, it also presents a huge accelerating renewable energy generation. births, 93,600 new asthma cases among opportunity for cities to save on energy Cities are also playing a pivotal role in calling This report presents new evidence for children and 247,900 asthma emergency costs, create jobs and promote healthy and for and supporting wider stakeholders – the urban case for a rapid coal phase- visits. As many as 353,400 years of life will sustainable futures. including national governments and other out. C40’s analysis provides compelling be affected by diabetes, stroke and chronic urban energy users – to transition from coal evidence of the adverse impact of coal-fired respiratory diseases due to air pollution Phasing out coal will deliver a green, just to clean energy. electricity on GHG emissions, air pollution from coal plants. and prosperous future. A rapid phase-out and health, jobs and the cost of energy. of coal in favour of renewable, zero-carbon If the world is to stand a chance of technologies could create 6.4 million jobs preventing catastrophic runaway global The economic costs of this health heating, we need a massive expansion burden are significant. Premature deaths – which is 1.1 million more jobs than would of clean, zero-carbon energy, and not to from coal power could cost C40 cities be created under current plans. Many cities look to other polluting fossil fuels like USD 877 billion. Between 2020 and 2030, are already realising this opportunity – and natural gas. Cities have a huge amount 124 million sick days could result from making sure no-one is left behind as they to lose, or gain, depending on whether a clean energy transition is rapidly realised exposure to air pollution from coal plants, do. This means engaging and upskilling the or not. including 9.2 million days in 2019 alone. communities that will be affected by the The economic impact of these absences is transition and ensuring that green jobs are estimated at USD 10 billion. accessible. 6 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Key findings findings 1 Cities are at the centre of the global energy transition. 4 It doesn’t have to be this way. Renewable energy is already cheaper than operating coal 2/3 38% 68% in half of the countries modelled and costs continue to decrease of global coal capacity of global energy use is in of the electricity grid is located 500 km around cities powered by coal By the early 2030's renewables will be cheaper than coal in all C40 cities countries 2 There is no place for coal in a climate safe world. 5 Cities can produce cheaper electricity, while creating many good, green jobs and improving air quality. Coal is responsible for The ambition gap: current Between 2020 and 2030, 0.3ºC national plans will increase coal capacity by this represents: 1.1 million more jobs 24Gt of the 1°C global heating we’ve already +4% could be created with a transition to renewable energy compared with experienced ...when it needs CO2 = 6% current coal plans to reduce by for plants of the world’s 5.3 million -61% 500 km around remaining carbon 6.4 million to comply with a C40 budget to 1.5ºC scenario cities 2030 3 Coal air pollution affects all aspects of residents’ health. Cities are already leading the energy transition. Cities can take action to phase out coal, stop new Between 2020 and 2030, current coal plans could lead to: projects, invest in renewables and engage with the just transition. 264,900 121,100 Discover how cities can engage in their energy premature deaths preterm births transition in this report 93,600 new asthma cases among children 353,400 Air pollution is unfair. While years of life with cities as a whole are impacted disabilities by air pollution from nearby coal plants, some neighbour- hoods are disproportionately 247,900 affected. The economic costs asthma of this health burden impacts emergency the whole economy. visits 8 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Introduction: The greatest threat, the biggest opportunity Coal is the world’s largest source of anthropogenic power plants, 68% is located within 500 km of at Currently 10 Currently, 10nations nationsaccount for contain 86%ofofthe 86% theworld’s world’s total 1/3 of the world’s CO2 emissions and is responsible for more than least one C40 city, representing a significant source total coal capacity. CO2 energy-related capacity 0.3°C of the 1°C global warming we’ve already of urban air pollution. emissions come experienced.1 It is also a significant source of toxic Germany Poland from coal power air pollutants – particularly sulphur dioxide (SO2), The transition from coal to clean energy is critical plants. Indonesia nitrogen oxides (NOX) and particulate matter to achieving the goals of the Paris Agreement, and South (PM2.5), all of which have serious and deadly effects offers enormous benefits. Decarbonising electricity Africa Turkey 1/3 of on people’s health. used by cities will lead to huge reductions in urban GHG emissions and air pollution, while United States Japan Russia CO2 e The IPCC’s Sixth Assessment Report on climate also creating good green jobs and providing 232 GW 49 GW 43 GW emiss science is unequivocal: we are not on track to meet increasingly cheaper and more secure energy. from Coal our commitment under the Paris Agreement, with It is imperative, however, that we ensure that Other power plants fossil plants global heating set to greatly exceed 1.5°C above the benefits of the energy transition are fairly fuels pre‑industrial levels before 2040. Global coal-fired distributed, adopting the principles of a green power generation contributes more than 30% of and just transition. Similarly, we must recognise Other India Other coal global energy-related CO2 emissions,1 making it the differentiated responsibility for delivering the China use 1,046 GW 233 GW 280 GW greatest single threat to a climate-safe future.2 transition. This is particularly relevant for coal given its historic and current role in industrial and Cities are at the centre of the transition from coal economic development. Source: Source: The Bloomberg Coal data based(2021). Countdown on the Bloomberg IEA countdown Fuel and technologies (2021). (2018). Source: data based on the International Energy Agen to clean energy, accounting for approximately two-thirds of global primary energy use.3 They are already leading the way by actively phasing out coal, shifting demand to clean energy and Cities are at the centre of the global Why developed countries should lead the transition from coal accelerating renewable energy generation. C40 energy transition. mayors have committed to the goals of the Paris Agreement through their 1.5°C-compliant Climate The economic growth and increasing levels of is 20 years – little over halfway to the global Action Plans. Decarbonising electricity supply – 68% of global 2/3 of global prosperity to which coal use has contributed average retirement age of 35 years in operation.5 and in particular rapidly phasing out coal – is a coal capacity energy use is in over the past 200 years4 has largely benefited This means that it will be less challenging for located 500 km developed nations. At the same time these OECD countries to complete a coal phase-out by critical aspect of this commitment; emissions from cities coal-generated electricity account for 11% of C40 around nations have contributed disproportionately to 2030 that minimises stranded assets. global emissions and therefore bear a greater cities’ total greenhouse gas (GHG) emissions. A C40 cities. responsibility than developing nations to rapidly Significant near-term GHG emission cuts by phase out coal. wealthier OECD countries will provide non- People in cities are dying prematurely and OECD countries with more time to replace their suffering lifelong health conditions as a result of air Moreover, OECD countries also generally have electricity systems and help workers within the pollution from coal-fired power plants. Air pollution older coal plants, with many that already are at coal industry to transition to other sectors, while from coal power plants can travel hundreds of or near their expected retirement age. While the getting the world on track to limit global heating kilometres. Of the current global coal fleet, which average age of plants in non-OECD countries to 1.5°C. includes both existing and planned coal-fired A Based on 30% GHG emissions from electricity (source data: C40 GPC Inventories), and an average of 38.5% of electricity coming from coal (source IEA (2018) www.iea.org/reports/coal-2018) 10 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
About this research Air pollution modelling: Using reported annual emissions data from coal power plants for Cities know that coal-fired power plants are major NOX, SO2 and PM2.5 and a complete atmospheric polluters but, for the first time, this research model (specifically the CALPUFF atmospheric quantifies the impact of this pollution on the model, which takes into account meteorological health of urban populations and the economic conditions, topography and atmospheric chemical consequences of this. It also analyses the reactions), we modelled the concentration of employment and cost impacts of coal compared air pollutants from coal-fired power plants in with clean energy. all C40 cities located within 500 km of these plants (identified using Global Energy Monitor’s The findings in this report provide compelling Global Coal Plant Tracker and additional national evidence of the adverse impact of coal on urban resources). We selected an area of 500 km because GHG emissions, air pollution and health, jobs and emissions from coal plants travel long distances, the cost of energy. For cities the case is clear: we are across jurisdictional borders, and because calling for more ambitious national commitments electricity used within a given city can be produced to rapidly phase out coal through the immediate up to several hundred kilometres from the city. cessation of new coal capacity and swift retirement of existing capacity. The results of this modelling showed that 61 C40 cities were substantially impacted by air pollution from coal-fired power plants. These cities are the focus of this research. Methodology summary Health modelling: We analysed the impact Our modelling is based on two future scenarios. of this air pollution on public health and the The first, a “1.5°C scenario”, is based on GHG economic burden of these health impacts using emissions reductions in line with the Paris concentration response functions. Agreement. The second, a “current coal plans” scenario, includes coal-fired power plants currently Jobs modelling: We modelled the direct jobs operating, and takes into account new plants in resulting from the development of the electricity the pipeline and scheduled retirements up to 2050 generation sector and indirect jobs that are – in other words it represents the current path we generated across domestic supply chains to are on and the future we can expect unless action compare the employment potential of current coal is taken. plans with those of a transition to 100% renewable energy in line with 1.5°C. Developing the scenarios: The current coal plans scenario is based on coal-fired power plants Cost modelling: We analysed the cost impacts within the Global Energy Monitor’s Global Coal Plant of coal compared with clean energy. Using a Tracker. The analysis includes: operating plants; levelised cost of electricity approach, we modelled plants in the pipeline - including pre-construction how the average net present cost of electricity plants (announced, pre-permit and permitted) and generation for different power technologies will plants in construction; and plants already scheduled change over time. We projected the future cost of for retirement. For the 1.5°C scenario we set a near- different technologies using recent current costs term goal for C40 cities in OECD countries to retire and then applying learning rates, carbon prices and 100% of their existing coal fleet by 2030, while those storage costs. in non-OECD countries follow a less steep phase- out trajectory with significant retirements during Time frames: Our analysis looks primarily at the 2030s, only a few ultralow emissions plants impacts between 2020 and 2030. The baseline is Credits: Kelly Lacy on Pexel by 2040 and a complete phase-out by 2050. The taken from 2019 as 2020 was not a representative 1.5°C scenario is based on a combination of IRENA year due to COVID-19. and IEA data to create a scenario that accelerates the transition to renewable energy and minimises natural gas and biomass, given associated GHG See full methodology for details. emissions and air pollution. 12 THE HEALTH AND ECONOMIC CALLING CASEFOR FORCOAL A CLEAN PHASE-OUT ENERGY IN REVOLUTION C40 CITIES
1. Chapter 1. Current national plans and the “ambition gap” Credits: Bence Balla Schottner on Unsplash 14 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
50 RETIREMENT GROWT Chapter 1. 0 Global coal power growth and retirements over the past twenty years (GW) Current national plans and the 50 Figure Global 100 2:coal Global coalgrowth power power and growth and retirements retirements over the (GW), 2000–2020 past twenty years (GW) 0 1 2 3 4 5 7 6 7 8 9 0 1 2 3 4 5 6 8 9 0 200 201 200 200 201 201 200 201 200 201 200 201 200 201 200 201 202 200 201 200 201 “ambition gap” 100 GROWTH 50 GROWTH 50 0 RETIREMENT 80 countries use coal-generated electricity, with just 10 of these accounting for more 0 than 86%capacity National of all operating status by plantcoal capacity in 2021.GW globally).6 To date, 13 national (GW) (2,067 RETIREMENT governments have committed to phasing out coal by 2030,7 which affects 14 C40 50 cities.B However, our modelling reveals that in most countries there is a significant 0 1 001 2002 3003 40 0 4 5005 60 0 6 70 0 7 80 0 8 90 0 9 0 010 1 011 2 012 3 013 4 014 5 015 6 016 7 017 8 018 9 019 0020 ds 00 0 50 gap between current coal plans and what’s needed to avoid catastrophic global 201 2 201 2 201 2 201 2 201 2 201 2 201 2 201 2 2002 201 2 201 2 an 2002 2002 202 2 2002 2002 2002 2002 2002 2002 2002 es heating (a 1.5°C scenario). ica rea esh erl tat es a bia Afr alia eth Ko y pin tan nd dS sia esi m lad an d o ece y a lom tna ina aila an th th rke lan lay on xic ilip eN ael ite str kis ssi rm ng ia Even more concerning, global coal power capacity within 500 km (and resultant increases in air ly Sou Sou Jap Gre Ind Ind Vie Ch Ma Me Un Au Ru Co Po Pa Ph Isr Ita Ge Ba Th Tu Th is still being increased, with planned expansions in pollution and GHG emissions) are in China, India, 1,000 capacity – that is, coal-fired power plants that are Bangladesh, Indonesia and Vietnam.C in the pipeline, either under active construction or Figure 3: Capacity of coal plants and plants in the pipeline vs retired plants OPERATING & PIPERLINE plantscapacity National and scheduled plant by for status (GW) retirement in 2021. (GW), 2021 by country in pre-construction stages – exceeding planned It is worth noting that although China’s coal National capacity by plant status (GW) in 2021. 100 retirements (Figure 2). expansion is the greatest globally (and its overall coal capacity is increasing), it is the second leading s ds nlda n Taken together, global coal projects under active country in retiring plants, with 115 GW retired and a es a ea h tteast cfar i c s es rhl ae r construction and the pre-development stage further 12 GW to be retired by 2030.9 C hC dleasdhe s rKeoar as i a i ab i a lia y ny npei n 10 an d Sdt aS as i a m A amount to 481 GW of capacity, which exceeds t heet i i an d oi c o ie ce yk e y r a l iraa as i a an a l obm na tKho t ai snt a n tAhf T h T nld an s iy osn l i ip m eN el eidt e erm Our analysis identifies 19 C40 cities (31% of C40 l ag i ad i a i nhai n the entire combined 2019 capacity of the United pa l aayl a s turs t erceee d p l ya l y de x iecx tineat l oom an k iask u tohu s sui s a erla a ihl aa u tohu e hNe an r kuer l aonl i l ihpi on i tn rm ng cities analysed) that will see a net reduction I n dI n I n dI n States (233 GW) and the European Union (143 GW) Isr Is M aM M eM U nU A uA R uR C oC PaP P oP I t aI t B aB G eG G r eG So S V i eV P hP Th T Tu T So S J a pJ 0 8 Our analysis of currently announced (or no change) in coal powered capacity by 2030. 1,000 by 28%. 1,000 expansion and retirement plans finds that, These cities are mainly located in the US and the & PIPERLINE RETIREMENT EU, the two major regions where a steady phase- & PIPERLINE between now and 2030, 42 cities will see coal power capacity within 500 km increase (69% of C40 out of coal-generated electricity is occurring. 100 10 100 cities analysed). The C40 cities that will experience the most significant increases in coal capacity OPERATING RETIREMENT OPERATING 10 10 100 Figure 1: Status of coal power plants, global average 2021. 0 0 65% 6% 9% 12% 7% In operation 2,067 GW Retired 396 GW RETIREMENT 10 Under active construction 184 GW Scheduled for retirement by 2030 224 GW 10 Pre-construction (announced, pre-permit or permitted) 297 GW 100 Source: data from the Global Energy Monitor July 2021 update. Excluded Argentina, Jordan, Ivory Coast and Singapore which 100 had low or no domestic coal capacity Source: data from the Global Energy Monitor July 2021 update. Excluded Argentina, Jordan, Ivory Coast and Singapore which had low or no domestic coal capacity B Amsterdam, Rotterdam, Lisbon, Paris, Rome, Milan, Venice, Athens, Toronto, Montreal, Vancouver, Auckland, Copenhagen, 65% 65% 6% 6% 9% 9% 12% 7% 12% 7% and Tel Aviv. Source: In data from the Global operation Energy GW Monitor July 2021 update. Excluded 2,067GW Argentina, Retired GW 396GW Jordan, Ivory Coast and Singapore which C In the case of Athens, within 500 km there are a number of planned power plants in Western Turkey. In operation 2,067 Retired 396 had low or no domestic coal capacity Under construction184 activeconstruction Underactive GW 184GW Scheduled forretirement Scheduledfor retirementby 2030 224 by2030 GW 224GW Pre-construction(announced, Pre-construction pre-permit (announced,pre-permit or or 16 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION permitted)297 permitted) GW 297GW
1 Cities are at the centre of the global energy transition. 4 It doesn’t have to be Renewa 2/3 38% 68% in half decreas Figure 4: Comparing projected CO2 emissions (Mt CO2 per year) from coal power Overall, however, the modelling clearly of shows When considering the GHG ambition gap over the global coal capacity of the electricity grid is of global energy use is in the scale under a current coal plans scenario and a 1.5°C scenario in the 10 biggest coal-users of the ambition powered by coal gap. A 1.5°C located scenario500 km around period 2020-2050, the avoided emissions from the cities By the Projected countries, coal power CO2 emissions (Mt CO2 per year): the ambition 1990–2050. C40 cities requires that coal capacity in and around C40 cities 61 cities phasing out coal from their electricity use countri gap between country plans and a 1.5oC-compliant scenario decrease by 61% between 2020 and 2030. However, is around 6.4 GtCO2e. Including the entire energy current coal plans within 500 km of C40 cities will region the difference between a current coal actually increase coal capacity by 4% between 2020 plans scenario and a 1.5°C scenario increases to a 2 There is no place for coal in a climate safe world. and 2030. Citiesiscan cumulative total of 120 GtCO25e. If nothing doneproduce c C40 cities, 1,389 GW Current plans (announced to shift current coal plans, then the many good, green jo coal plants 8K Coal is responsible for The ambitiongap: Theambition gap: current Between 2020 and 2030, openings and retirements) current coal plans will this represents: within these 61 cities and their energy regions 7K +4% Current plans 0.3ºC 1.5ºC compliant scenarioof the 1°C global national plans will increase increase coal coal capacity by capacity by will consume 30% of the entire world’s 1.1remaining million more jo 6K 24Gt Ambition gap heating we’ve already +4% 24Gt carbon budget for 2050. could be created with a renewable energy comp 5K CO2 experienced ...when it needs CO2 = 6% Even in countries that are expected current to coal plans see a net to reduce by for plants reduction of the world’s in coal capacity, the pace of change is not 4K The ambition gap: CO2 China, 1,046 GW +17% -61% 500 km around remaining in line with a 1.5°C trajectory. We need to accelerate carbon the retirement of existing coal fleets, stop the to comply with a C40 budget to 3K emissions that could be avoided 4K 1.5ºC scenario cities 2030construction of new coal plants and expand clean, -61% with a Key findings 2K -32% zero-carbon energy. Swift and ambitious urban 1.5ºC compliant scenario action on coal over the next 10 years can provide an 2K 1K essential contribution to keep the world on track 3 Coal air pollution It is affects all aspects clear that coal-fired powerof residents’ generation is health. Cities are already leading the ene for 1.5°C. By influencing their wider energy regions Cities can take action to phase ou 1990 2010 2030 2050 1990 2010 2030 Between 2020 and 2050 2030, with incompatible climatecoal current In total,could goals.plans the to: can have an out-sized projects, lead cities impact, increasing the invest in renewables and 1 Cities are at the centre of the global energy GHG ambition transition. gap between a current coal plans 4 avoidedIt doesn’t have emissions 10-fold towhile – just all beimproving this way. transition. scenario and a 1.5°C scenario is enormous. If the India, 233 GW United States, 232 GW Japan, 49 GW 264,900 121,100 61 C40 cities in thispretermstudy phased-out coal from public health and generating millions of good, Discover how Renewable citiesiscan energy engage already c +20% births green energy jobs. 68% premature deaths transition in this report 38% in half of the countries modelle 1,500 2/3 300 -1% their electricity use in line with a 1.5°C scenario this 1K would of avoid global around 93,600 1.3 coal capacityGtCO2e between 2020 and decrease -22% 1,000 of the electricity grid is of -32% global energy 200 use is in 2030,located compared 500tokm new asthma aroundcoal plans scenario. a current 500 cities powered by coal cases Urban action on coal can By the early 2030's provide a renewables 500 100 C40 cities If these 61 cities work with other stakeholders to among countries major contribution to achieving 1.5°C, -100% -100% phase out all coal-generated childrenelectricity across each of their respective 500 km energy regions, the total preventing around 1.3 GtCO2e from cities’ 1990 2010 2030 2050 1990 2010 2030 2050 1990 2010 2030 2050 own electricity demand, and through avoided emissions increases to 24 GtCO2e. These 353,400 24 GtCO Air e pollution is unfair. While this influencing a wider phase-out of 2 There is no place for coal in years a climate safe of life with world. 2 cities of emissions as a whole are savings impacted represent 6% of the 5 Cities canelectricity coal-generated produceofcheaper 24 GtCO2,electricit Russia, 43 GW South Africa, 42 GW Germany, 41 GW world’s total remaining carbon budget for limiting disabilities by air pollution from nearby many good, green jobstotal equivalent to 6% of the world’s and improvin 250 Coal is responsible for The ambition gap: current global heating Between coal to plants, 1.5°Cand 2020 some (400 GtCO2e). 2030, neighbour- remaining carbon budget 0.3ºC 200 -6% 200 200 national plans will increase this hoods represents: are disproportionately 150 -29% 150 coal capacity -26% 247,900 by affected. The economic costs 1.1 million more jobs 24Gt of the 1°C global +4% 100 asthma of this health burden impacts could be created with a transition to 100 heating100 we’ve already emergency the whole economy. renewable energy compared with 6% -77% experienced visits CO2 = 50 50 -88% -100%...when current coal plans it needs 1990 2010 2030 2050 1990 2010 2030 2050 1990 2010 to reduce 2030 2050by for plants of the world’s 5.3 million -61% 500 km around remaining carbon 6.4 million Indonesia, 36 GW South Korea, 35 GW Poland, 30 GW to comply with a C40 budget to +127% 250 1.5ºC scenario cities 2030 +7% 150 300 200 -10% 150 100 200 +27% 100 100 3 air pollution affects all aspects of residents’ health. Coal 50 Cities are already leading the energy transition. 50 Cities can take action to phase out coal, stop new -100% Between 2020 and 2030,-100% current coal plans could lead to: projects, invest in renewables and engage with the 1990 2010 2030 2050 1990 2010 2030 2050 1990 2010 2030 2050 just transition. 264,900 121,100 Discover how cities can engage in their energy premature deaths preterm births transition in this report Source: C40 modelling, based on the Global Energy Monitor plant tracker (January 2021). 93,600 18 new asthma THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION cases among
Chapter 2. What’s at stake for C40 cities Credits: Andre Moura on Pexel 20 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Current power plants expansion could lead to major health Chapter 2. impacts over the next decade (2020-2030): What’s at stake for C40 cities Figure 6: Health impact of coal-power plants in 61 C40 cities, 2020-2030. 264,900 121,100 353,400 years of premature deaths preterm life with disabilities births The high price of air pollution 93,600 247,900 new asthma asthma cases among emergency Coal-fired power plants pollute city air For example, in Australia – which has a per capita children visits GDP of USD 52,51810 – permitted emission levels Air pollutants from coal-fired power plants can for NO2 and PM2.5 are more than five times higher travel long distances, crossing political and than in the EU (GDP per capita: USD 33,92711) and Coal air pollution is a Air pollution affects It impacts people’s lives, geographical boundaries. Using reported annual eight times higher than the hourly regulation large contributor to babies and children’s and puts pressure on emissions data from coal power plants and rate in China12 (GDP per capita: USD 10,50013). premature mortality development healthcare systems an atmospheric model, we have modelled the This is because emission regulations in Australia concentration of air pollutants in 61 C40 cities only apply to new coal power plants and the vast Source: C40 modelling. For further information on the data, see the methodology that comes from coal-fired power plants located majority of existing plants are more than 30 years within 500km to understand the full extent of coal’s old. Similarly, South Africa’s comparatively high impact on city health. pollution has much to do with Eskom, the country’s Air pollution causes ill-health and early Our research shows that between 2020 and 2030, main utility provider, delaying its compliance with death air pollution from neighbouring coal power plants The C40 cities that are exposed to the most could cause more than 93,600 new asthma cases minimum emission standards and installation of polluting plants are located in South Africa, Exposure to air pollutants is linked to a wide range among children and 247,900 asthma emergency pollution control technologies. Australia, India, Thailand, Vietnam, Turkey and of adverse health outcomes. Air pollution affects visits in C40 cities (with 7,500 new asthma cases Indonesia. Importantly, the amount of air pollution Our modelling also shows variation in all people but can be especially harmful to a city’s and 18,500 emergency visits in 2019 alone). generated by coal-fuelled power plants depends concentrations of air pollutants within cities, most vulnerable populations, such as children, more on political choices and jurisdictional highlighting the inequity and injustice of air pregnant women, older people and those with Air pollution exposure also significantly increases regulations, controls and enforcement than on pollution. Of the 61 C40 cities modelled, 29 have pre-existing medical conditions.16 the risk of preterm birth and low birthweight, factors like the level of a country’s economic one or more coal power units located within which increases the risk of infant death, lifelong development. Our modelling shows that if the current planned health damage, diabetes and cardiovascular the city boundaries. This proximity means that expansion of coal power were to be realised, diseases. Our research finds that between 2020 some neighbourhoods are more exposed than 264,900 residents could die prematurely between and 2030, coal-fired power plants surrounding others to pollutants, which has significant equity 2020 and 2030. Air pollution from operating C40 cities could cause as many as 121,100 preterm implications. In the case of Chicago, for example, Figure 5: Average emissions rates for coal plants caused more than 19,100 premature births. In 2019 alone, 9,600 preterm births in C40 the Will County Generating Station and the coal power plants per country deaths in 2019 alone. The C40 cities expected to cities can be attributed to coal power plants. Ingredion Incorporated Argo Plant affect the city’s (tonnes Emission of average rates NO2/MW),from 2019. coal plants (tonnes of NO₂ / MW) west, southwest and south neighbourhoods far experience the biggest health burden today are located in South Africa, India, Indonesia, China, In addition, air pollution exposure increases the more than the rest of the city (see the online videos the US and Vietnam. The negative health impacts risk of diseases such as diabetes, stroke and below). This variation in neighbourhood exposure can be attributed both to their high exposure to chronic respiratory illnesses, as well as increasing exacerbates existing social inequalities in the city, as 24.8 14.5 the West and South-side neighbourhoods contain pollution from coal-fired power plants, as well as complications for patients with those pre-existing their relatively high population densities. conditions and those facing existing inequalities. 12.4 9.4 8.9 a greater share of lower-income households than In total, 353,400 years of life could be affected by the city at large.14 These findings add weight to a Air pollution exposure can contribute to the diabetes, stroke and chronic respiratory diseases growing body of evidence on the disproportionate development of asthma and trigger asthma due to air pollution from coal plants in C40 cities impact of air pollution exposure on marginalised South Africa Australia Vietnam India Indonesia attacks – a chronic condition that affects health between 2020 and 2030. communities.15 and well-being over a person’s lifetime. For 4.0 3.23.2 3.1 2.6 0.6 children, increased asthma attacks and sickness To visualise the effect of air pollution A rapid phase-out of coal, days affect educational performance and can force from coal power plants in your city, and transition to clean energy, could primary caregivers to take time off work. explore our city videos here. prevent these health impacts, saving Japan United South Germany China lives and improving health. States Korea Source: C40 modelling based on the Global Energy Monitor Plant tracker and annual self-reported emissions from plants (2019). 22 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Figure 7: Premature Premature deaths deaths due 2019 due to coal: to airexisting pollution from plants coal in against C40announced 2030 cities: current plans2019 Figure 8: Deaths in C40 cities attributable to coal power pollution, 2020–2030 burden against and (retirements current plans for 2030 expansion) Figure 8 highlights how an early retirement, in line with a 1.5°C scenario (orange), could prevent the 2019 coal plants Announced coal plants in 2030 majority of premature deaths from current plans (black). The faster the phase-out is, the smaller the health burden will be for cities. 500 1,000 1,500 2,000 2,500 3,000 3,500 Kolkata C40 cities Johannesburg 30K Current plans (announced Jakarta openings and retirements) Tshwane 1.5ºC compliant scenario Ekurhuleni 20K Premature deaths that Beijing Premature could be avoided deaths that Shanghai could be Chicago avoided Mumbai Abidjan Amman 10K Hanoi 3 60 Qingdao 2 40 Kuala Lumpur 1 20 Wuhan Tokyo 2020 2030 2050 2020 2030 2050 2020 2030 2040 2050 Istanbul Source: authors own modelling, based on the Global Energy Monitor plant tracker (January 2021). Nanjing Amsterdam Athens Austin Bangkok Beijing 150 80 Chennai 400 20 1000 100 60 Delhi NCT 300 40 200 Ho uston 10 50 500 200 20 100 150 Washington DC 100 New York City 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 50 Moscow Dhaka Bengaluru Berlin Bogota Boston Chengdu 500 6 Bangkok 150 30 400 400 4 Dalian 300 300 100 20 200 Chengdu 200 2 50 10 100 100 Sydney 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 Bengaluru 2020 2030 2050 Philadelphia Chennai Chicago Ciudad de Mexico Dalian Delhi NCT Hangzhou 500 Warsaw 400 60 300 600 1000 Berlin 300 40 200 400 200 Guangzhou 500 20 100 200 100 Karachi 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 Seoul Ho ng Kong Dhaka Ekurhuleni Fuzhou Guadalajara Guangzhou Tel Aviv 1200 1200 150 10 Shenzhen 900 150 800 100 Zhenjiang 600 100 5 400 50 Ho Chi Minh City 300 8 50 Athens 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 Aus tin Amman Hangzhou Hanoi Heidelberg Ho Chi Minh City Hong Kong Singapore 250 2K 150 600 200 9 Fuzhou 1.5K 150 6 400 100 Melbo urne 1K 100 3 200 50 Ciudad de Mexico 50 0.5K Yok ohama 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 - Source: C40 modelling. For further information on the data, see the methodology. Only the cities with a burden over 50 premature deaths per year are displayed. Source: C40 modelling. For further information on the data, see the methodology 24 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Figure 8 (end) The health burden of coal pollution has huge economic costs Houston Istanbul Jakarta Johannesburg Karachi 300 600 4K The impact of air pollution on urban health has • 124 million sick days, including 9.2 million 3K 2K 600 economic consequences through associated days in 2019 alone. Employees may be required 200 400 2K 400 healthcare costs, and the economic losses from to stay at home during pollution spikes due 100 200 1K 1K 200 disability and premature death. Air pollution also to personal illness or because of their role 4 impacts urban economies through a reduction as primary caregiver to a family member, 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 in labour productivity and an increase in work increasing absenteeism. absence. Kolkata Kuala Lumpur Medellin Melbourne Miami • USD 10.5 billion from lost work, as a result 3K 600 3 60 12 We estimated these economic impacts from the of forced absence, which can greatly affect 2 8 health impacts of coal-fired power plants on the 61 individuals’ ability to earn a salary and support 400 40 2K analysed C40 cities between 2020 and 2030: their families, especially among informal 4 1K 200 1 20 workers and the self-employed. Even among • USD 651 million from childhood asthma, the formally employed, social insurance 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 schemes often fail to compensate for lost 2020 2030 2050 taking into account direct and indirect costs, including medical costs and loss of income to wages. Moscow Mumbai Nanjing New Orleans New York City 400 4 the child’s caregiver. 300 300 900 300 3 • USD 877 billion from premature deaths. 200 600 200 2 200 • USD 17.6 billion from years lived with disease. 100 300 100 Diabetes, chronic respiratory diseases and 100 1 stroke significantly lower the quality of life and 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 economic productivity of people affected, and cause substantial healthcare costs. Philadelphia Qingdao Quezon City Rome Rotterdam 200 • USD 8.6 billion from early births, taking into 400 90 10 15 account healthcare costs and economic losses 150 60 10 associated with an increase in preterm births. 100 2050 200 5 30 5 50 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 Seoul Shanghai Shenzhen Singapore Sydney 200 600 200 200 “Clean coal” technologies are not enough 150 100 150 150 400 100 200 50 100 100 Proponents of continued coal use maintain that However, the modelling shows that these plants 50 50 50 the most efficient of today’s “ultra-supercritical” contributions to GHG emissions and air pollution 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 coal units, or units equipped with air pollutant – and resulting health impacts – remain high emissions control devices, may be considered due to the significant capacity installed. These Tel Aviv Tokyo Tshwane Venice Warsaw 150 1.5K 6 200 “clean” technology.17 technologies are not compatible with a healthy, 400 1K 150 1.5°C climate-safe future; all coal must be phased 300 4 100 100 China has led the development of “ultralow out urgently. 200 2050 50 100 0.5K 2 50 emission” plants with strict pollution-control technologies that have significantly reduced 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 SO2, NOX and particulate matter emissions, as Wahsington DC Wuhan Yokohama Zhengjiang well as energy efficiency requirements that 300 400 promote slightly lower CO2 emissions. 300 40 100 200 200 2050 20 50 100 100 2020 2030 2050 2020 2030 2050 2020 2030 2050 2020 2030 2050 2050 26 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Suggestion: include all cities instead of a selection Suggestion: include all cities instead of a selection Suggestion: include all cities instead of a Creating jobs while cleaning the grid Figure 9: Cumulative total jobs under current coal plans vs a 1.5oC-compliant scenario, 2020–2030 Southwest Asia +17% more jobs in 1.5oC Energy choices impact jobs – both directly as • The cities that see the greatestCurrent proportional coal plans Southwest Asia Current coal plans +17% more jobs in 1.5oC scenario scenario 1.5ºC compliant scenario Current coal plans a result of the development of the electricity increase in job opportunities from1.5ºCan energy scenario compliant 1.5ºC compliant scenario Bengaluru generation sector and indirectly through domestic transition are C40’s South African cities Bengaluru Bengal supply chains. We have modelled the employment (Ekurhuleni, Johannesburg and Tshwane), Chennai Chennai Africa +63% more jobs in 1.5oC scenario Chen impacts of a rapid phase out of coal, comparing with 70% and 84% more Africa jobs, +63% more ranging jobs in 1.5oC scenario from Delhi Africa +63% more jobs in 1.5oC scenario Delhi D current coal plans with a transition to 100% 23,000 (Ekurhuleni) and 78,000 (Johannesburg) Abidjan Dhaka Abidjan Abidjan renewable energy in line with 1.5°C. cumulative jobs between 2020 and 2030. Other Dhaka Dh Ekurhuleni Karachi Ekurhuleni C40 cities in Asia, such as Jakarta, Bangkok and Karachi Ekurhuleni Kara Johannesburg Kolkata Kuala Lumpur, are estimated to see 206,000, Our modelling suggests that a transition Johannesburg Kolkata Johannesburg Kolk to 100% renewable energy in line with 177,000 and 48,000 cumulative jobs, equal to Tshwane Mumbai Tshwane Mumbai Tshwane a 42%, 29% and 76% increase compared to a Mum 1.5°C could create as many as 6.4 million 0 20 40 60 80 100 0 20 40 60 80 100 0 50 100 150 200 250 300 0 50 100 150 200 250 300 jobs between 2020 and 2030 This is 1.1 current plants scenario, respectively. 0 20 40 60 80 100 million more than the 5.3 million jobs that China +17% more jobs in 1.5oC scenario Europe +18% more jobs in 1.5oC scenario • China Several European C40 +17% more jobs in 1.5oC scenario cities also see a Europe +18% more jobs in 1.5oC scenario China +17% more jobs in 1.5oC scenario would be created under current plans. Beijing significant number Beijing of jobs under a 1.5°C Athens Athens Beijing Chengdu Athe scenario. In Moscow, Istanbul and Warsaw, it Berlin Chengdu Chengdu Berlin A transition to renewable is estimated that there will be 216,000, 88,000, Dalian Be Dalian He ide lberg Dalian energy could create and 34,000 green energy jobs, equal to an He ide lberg Fuzhou He ide lb Fuzhou Rome 1.1 million more jobs than increase of 10%, 21% and 38%, respectively, Rome Fuzhou Guangzhou Ro current coal plans compared to current plans. Guangzhou Rotterdam Guangzhou Hangzhou Rotterdam Rotterd Hangzhou Hangzhou Venice • In Tokyo, Yokohama and Seoul, job creation Hong Kong Hong Kong Venice Ven Hong Kong Warsaw 5.3 million under a 1.5°C scenario are 20%, 10% and 32% Nanjing Warsaw Nanjing Wars greater than under a current plans scenario, Nanjing Qingdao Amman 6.4 million respectively. Qingdao Amman Qingdao Amm Shanghai Amsterdam Shanghai Amsterdam Amsterd Shanghai While the transition to a renewable energy Shenzhen Istanbul All 61 C40 cities included in the analysis see an Shenzhen Istanbul Shenzhen Istan provides more jobs, it is important to recognise Wuhan Moscow increase in job creation under a 1.5°C scenario, Wuhan Moscow Wuhan Mosc that a significant overhaul of the energy sector Zhenjiang Tel Aviv including several C40 cities located in major coal- Zhenjiang poses challenges in terms of stranded assets, Tel Aviv 0 100 200 300 400 500 Zhenjiang Tel A consuming countries. 0 100 200 300 400 500 0 50 100 150 200 250 workers and communities. This change must be 0 50 100 150 200 250 0 100 200 300 400 500 • C40 cities in China could see job creation 10% managed through working with industry groups, East Asia, Southeast Asia and Latin (+3%) & North America (+15%) East Asia, Southeast Asia and Latin & North America Eastjobs Asia, in 1.5Southeast Asia and and 20% higher under a 1.5°C scenario, with labour organisations and communities to ensure a Oceania (+3%) +35% more jobs (+15%) in 1.5oC scenario more o C scenario Oceania +35% more jobs in 1.5oC scenario more jobs in 1.5 C scenario o Oceania +35% more jobs in 1.5oC scenario the total number of cumulative jobs ranging just transition to renewable electricity. Bangkok Bogota Bangkok Bogota Bangkok Bogo from between 53,000 (Zhenjiang) and 420,000 Hanoi Ciudad de Ciudad de Mexico Ciudad (Shanghai). Hanoi Mexico Hanoi Mexi HCMC Guadalajara HCMC Guadalajara Guadalaj HCMC • Similarly, across C40’s Indian cities, there are Jakarta Medellin Medellin Jakarta Jakarta Mede expected to be between 18% and 27% more Kuala Austin Kuala Austin Lumpur Kuala Aus jobs, with the cumulative total number of jobs Lumpur Boston Lumpur Melbourne Boston between 124,000 (Bengaluru) and 249,000 Melbourne Melbourne Chicago Bost (Mumbai). Chicago Quezon City Chica Quezon City Houston Quezon City Houston Seoul Houst • In the U.S, C40 cities can expect to see Seoul Miami Miami Seoul Singapore Mia between 10% and 27% more jobs under the Singapore New Orleans Singapore New Orleans New Orlea energy transition. The highest number of Sydney New York Sydney New York City Sydney New Yo cumulative jobs is created by transitioning City Tokyo C Philadelphia Tokyo New York City's electricity supply to Philadelphia Tokyo Philadelp Yokohama Washington renewables, at 93,000. Yokohama Washington Yokohama Washingt 0 100 200 300 400 500 0 20 40 60 80 100 0 100 200 300 400 500 0 20 40 60 80 100 0 100 200 300 400 500 Source: C40 modelling. For further information on the data, see the methodology 28 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Lower energy costs, cleaner electricity The cost of renewable energy technologies has based on the significant wider economic benefits Countries Figure with the sources 11: The cheapest cheapest source of in of electricity electricity: renewable 34 countries energy vs (2019 vs 2030) rapidly decreased over the past decade, and our from climate, health and employment gains that coal in 2019. modelling suggests they are set to become even outweigh the small additional cost. Moreover, we more competitive as economies of scale continue have taken a cautious approach to both carbon 2019 this trend and coal becomes more expensive pricing and investment in storage, assuming (Figure 10). only a marginal increase in carbon price and no additional investment in storage. If carbon pricing Of the 34 countries modelled, new renewable and investment in storage increase this would electricity is already cheaper than new coal significantly affect the cost of both renewables and electricity in 27D and cheaper than operating coal coal, further strengthening the investment case. capacity in 17. By the early 2030's renewables will be cheaper than new and operating coal in all It is worth emphasising that a rapid phase out countries (Figure 10). of coal has immediate air quality and health benefits, and the upfront investment in clean energy creates near-term jobs, both of which are By the early 2030’s renewables will be particularly important in the context of a green and cheaper than coal in all countries just recovery from the COVID-19 pandemic. An energy transition to clean energy requires considerable investment between now and By investing in a clean energy transition, 2050, especially in cities that rely heavily on coal- national governments and cities can Wind (9 countries) Solar (18 countries) generated electricity. However, the amount is realise significant climate, health and job Coal (7 countries) similar to that required under current coal plans benefits. – our analysis shows the investment for a 1.5°C Source: C40 modelling supported by Vivid Economics and Bloomberg New Energy Foundation. scenario between now and 2050 is only 4% greater. This research makes the case for such investment Countries with the cheapest source of electricity: renewable energy vs coal in 2030. Figure 10: Global trends in the levelised cost of electricity (USD per MWh), 2015–2050 2030 Evolution of the LCOE over time (USD per MWh), global average 160 Coal (new plants) 140 Coal (operating plants) 120 Wind 100 Wind + storage 80 Solar Solar + storage 60 40 20 - Wind (4 countries) 2015 2020 2030 2040 2050 Solar (30 countries) Coal (0 countries) Source: C40 modelling supported by Vivid Economics and Bloomberg New Energy Foundation. Source: C40 modelling. For further information on the data, see the methodology. Maps include comparison of LCOEs of Source: C40 modelling. For further information on the data, see the methodology renewables without storage against new coal LCOEs. 30 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Chapter 3. How cities can accelerate the transition from coal to clean energy Credits: Justin Lim on Unsplash 32 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
Chapter 3. of nearby Richmond has ordered the city’s port ◆ Los Angeles is represented on the governing to end all coal exports by 2023, the majority of board of the regional South Coast Air Quality How cities can accelerate which come from coal mines in Utah and are Management District, through which the city is shipped to Japan. able to influence decision making on regional air quality policy that is designed to meet the the transition from coal to ◆ Portland, Oregon, has introduced its Fossil US National Ambient Air Quality Standards. Fuel Infrastructure Policy, under which the city council actively opposes any new infrastructure ◆ Washington DC is a member of the Ozone clean energy used primarily for transporting or storing of fossil fuels. Transport Commission, which addresses regional ozone issues in the Northeast of the US. The central role of cities. By leading the fight against climate change and tackling their own GHG emissions, cities deliver bold actions to decarbonise energy supply Regulate and price emissions and and accelerate the global energy transition. The degree to which cities can directly pollution Take shareholder action control how electricity is generated and used varies, and is determined by things such as municipal financing and regulatory context.21 However, cities can influence In the absence of an outright ban on new coal By influencing company policies and practices, the acceleration of the global energy transition in a number of different ways, using plants, a combination of policies can reduce shareholder action can help to steer economies direct and indirect action – from procurement and investment decisions to setting emissions and pollution. in a greener direction. For city governments, this targets, convening coalitions and championing a collective urban voice for change. can include divesting pension funds held at city In this chapter we explore these actions, offering real-world examples from C40 ◆ New York City: A proposed amendment to level and shifting to sustainable investments, and cities that are leading the charge. New York City’s building code aims to limit introducing criteria to ensure they only select asset GHG emissions from new and renovated managers that have strong climate credentials buildings to 50 kilograms of CO2 per million and engagement programmes (including voting British thermal units (Btu) by incentivising Rapidly phase out coal on climate-related shareholder resolutions). cleaner energy supply that complies with the At the time of writing, 14 cities have committed to To phase out coal in line with a 1.5°C scenario regulation standards. divesting their pension fund from fossil fuels. Following Los Angeles’ decision, the remaining cities must take bold action, using all the tools co-owners decided to retire the uneconomical City governments can pioneer emissions trading ◆ London: Although the Mayor of London does at their disposal to directly retire operating coal- coal plant in 2019 and purchase cheaper systems in their entirety or trial different aspects not have control over the London Pension fired power plants and to cancel new plants in the electricity that was generated by other energy of wider emissions trading systems, such as higher Fund Authority (LPFA), they do provide pipeline, or to make them more difficult, expensive sources. Los Angeles has also announced that pricing levels. guidance to the LPFA and can influence the or time-consuming to bring online. In most cases, it will close three gas-fired coastal power plants cities will need to work closely with others to under the ownership of the Department of composition of its board. This role has enabled ◆ China: Before launching its country-wide achieve the rate of decline required, but they can Water and Power, by the end of the 2030. the Mayor’s Office to table discussions on how power-sector emissions trading system in July also help to build the political case for transition to reduce climate change risks to investments 2021,18 China trialled versions of it in several by highlighting the health, jobs and economic and to appoint new trustees with climate provinces and major cities. Three C40 cities – costs of coal and advocating for a just and inclusive knowledge. The LPFA now has a climate Block and ban coal Beijing, Shanghai and Shenzhen – took part transition. change policy, which sets out aims to engage in these trials, helping lead the way for the companies in the low-carbon transition and, Where cities don’t own assets they can challenge national system.19 where engagement proves futile, to divest. them through action to block or ban coal-fired ◆ Tokyo: has operated a Cap and Trade System At the time of writing, LPFA has sold out of Close city-owned fossil fuel power plants and associated infrastructure. several companies, including ExxonMobil, Coal infrastructure for buildings since 2010, which mandates India, BP and Shell. ◆ US city governments, in collaboration CO2 reductions from large commercial and Where cities have ownership of coal infrastructure with a broad coalition of actors including industrial buildings in order to support the shift ◆ Berlin became the first “divestment capital” in they can take measures to shut it down directly. Native American tribes, ranchers and away from coal-generated electricity. the world, divesting assets, including pension environmentalists, have successfully blocked assets, from companies that produce, refine ◆ Los Angeles is closing coal, and other fossil- proposals for a number of new coal export Where urban air pollution levels exceed national standards, cities can participate in regional and and sell fossil fuels. As part of this process fuelled power plants, that it owns, or co-owns. terminals as a way to block the expansion of the national air quality planning to address large sources Berlin created a fossil-fuel free, sustainable In 2016, Los Angeles announced that it would US coal supply chain. of emissions (such as coal-fired power plants) that equity index that enables all German federal end its co-ownership in the Navajo Generating states and municipalities to use and benefit Station, the largest coal plant in the western ◆ Oakland: In California, the City of Oakland has lie outside the city’s boundary. In the US, cities often engage in regional air quality policy processes to from the same investment vehicle. United States and the third-largest individual voted to ban the storage and handling of coal source of GHG emissions in the entire country. within the city’s jurisdiction and the city council address sources that affect the city’s air. 34 THE HEALTH AND ECONOMIC CASE FOR A CLEAN ENERGY REVOLUTION
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