Regulating Energy Sector Supply-Side Dynamics Through International Cooperation
“Well, maybe the destruction of the entire planet isn’t supposed to be fun. Maybe it’s supposed to be terrifying and unsettling.”
Don’t Look Up by Adam McKay is not only an excellent and enjoyable film, it also brings to light a regrettable fact: the world’s governments’ failure to tackle climate change. During the 26th United Nations Conference of the Parties (COP26) that recently took place, although some national commitments were introduced, the Climate Summit did not lead to meaningful climate actions being taken. The implementation of a better and more tailored climate plan will require stronger international cooperation. In order to maximize the impact of such plans, the international community should address not only energy demand patterns, but also supply-side concerns.
The New Vehicle Rebate Program, the Chauffez Vert Program, the Novoclimat Program, and the Rénoclimat Program, are all examples of how Quebec supports the consumers’ transition to clean-energy alternatives. It should be a government priority to further reduce greenhouse gas emissions, and keeping fossil fuels underground is a key factor in achieving this outcome. Among the innovative policies that the international community should consider is enacting a Fossil Fuels Non-Proliferation Treaty (“Fossil Fuels NPT”). A Fossil Fuels NPT would give the international community the ability to completely change the supply-side dynamic through non-proliferation, disarmament, and peaceful use. As a first step, non-proliferation entails preventing the exploitation of new fossil fuel reserves and thus keeping fossil fuels underground. In a second step, disarmament would be the management and acceleration of the decline of fossil fuel infrastructures, while simultaneously promoting cleaner infrastructures. Third and lastly, the peaceful use of fossil fuels includes giving enormous fossil fuel subsidies to developing countries to fund their transition to a low-carbon economy.
Taking on this challenge is no easy feat. Protests sparked by the announcement of fossil fuel subsidy removal forced Ecuador to reinstate these subsidies in 2019. Earlier this month, an announcement by the government of Kazakhstan of the end of price controls for liquified petroleum gas prompted deadly protests. These events demonstrate the resistance to just limiting fossil fuel subsidies, so implementing such an ambitious plan will not be without resistance. Nonetheless, given the estimated combined externalities of $24.664 trillion for the energy and transport sectors, international cooperation is imperative to achieve net zero.
International cooperation of such stature is not something new. Relevant examples include the Biological Weapons Convention which prohibits the development and stocking of biological weapons; the Asilomar Convention which provides guidelines for the safe use of recombinant DNA; and the Oviedo Convention, which seeks the protection of human rights in the field of biology and medicine. In light of such critical issues, the international community has shown its power when its resources are combined. Climate change is as serious as these issues, so the international community can come together to draft a non-proliferation treaty protecting fossil fuels from being burned.
The international community fell short many times in recent years to tackle climate change even though data was present. Governments should aim to find as many levers as possible to sustain the transition to clean energy — that is, both the supply and demand-side aspects of the energy sector along with financing opportunities to ensure an equitable and effective transition. With the recent carbon tax in Canada, the government should now focus on the role of fossil fuels suppliers in tackling climate change. There is no easy solution to this problem, and in order to tackle climate change with a framework such as a Fossil Fuels Non-Proliferation Treaty, the international community must unite. This new year will mark a new Earth Overshoot Day, a day when human demands for ecological resources exceed Earth’s capacity to produce in a year, reiterating the urgent need for action. What remains to be seen is whether governments will pay attention to this pressing dilemma.
Edited by Nadira Anzum
Featured Image taken by William Daunais
