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1. The Offsetting Mechanism in Guangdong Province’s ETS: Lessons Learned and the Way Forward

Author:
Yang Shu
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
As one of the first low-carbon pioneering provinces in China, Guangdong launched its carbon market in 2013. An important design feature of the Guangdong Province emissions trading system (ETS) has been the use of offset credits. This brief, in both Chinese and English, explores the Guangdong ETS’s offset mechanism and its possible future evolution. The brief builds on discussions in an online research workshop on Guangdong Province’s ETS, conducted June 16 – 17, 2021 by the Harvard Project on Climate Agreements and the Research Center for Climate Change, Guangdong University of Technology, directed by Professor Zeng Xuelan. Information on the workshop, including the agenda, participant list, and most presentations, is here. The Harvard Project’s initiative on Guangdong Province’s ETS is supported by Energy Foundation China.
Topic:
Climate Change, Environment, and Carbon Emissions
Political Geography:
Asia-Pacific

2. Increasing the Emissions-Reduction Efficiency of Carbon Trading Schemes in China Under the “30.60” Target: Reflection on the Carbon Markets of Guangdong Province, China

Author:
Chen Shaoqing
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Key Points: • Guangdong currently has two pilot carbon-emissions-trading markets (in Shenzhen — and in Guangzhou, for the remainder of Guangdong Province). The Guangdong—Hong Kong—Macao Greater Bay Area (GBA) carbon market will be established in the near future. Therefore, Guangdong Province has regional advantages in innovation in the low-carbon field. • In September 2020, China announced its intention to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. To meet its responsibilities under the “30.60” target, GBA needs to choose a less costly and more efficient way to reduce emissions, build resilience to climate impacts, and promote green economic recovery from the COVID-19 pandemic. • In terms of accounting methods, life-cycle accounting from production and consumption perspectives should be the methodological basis for cities, parks, and enterprises to participate in carbon trading. • Trading activity in China’s carbon markets needs to be increased. In the future, carbon markets can gradually be opened to small and medium-sized enterprises and individuals, and cross-border trade can also be included in carbon trading mechanisms, with proper risk management. • At present, carbon quotas in local pilots and the national market are allocated freely. In the future, a reasonable mix of auctioned allocation and free allocation can be considered to establish a transparent, fair, and dynamic carbon-quota-allocation mechanism. • After starting with the electricity industry, the national carbon market will continue to include other key high-carbon industries; China should seek balanced development between local pilots and the national carbon market to improve the efficiency of emission reduction.
Topic:
Climate Change, Environment, Carbon Emissions, and Air Pollution
Political Geography:
Asia-Pacific

3. Technological Innovation and the Future of Energy Value Chains

Author:
Nicola De Blasio
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The transition from energy systems dominated by fossil fuels1 to ones based on renewable electricity and carbon-free molecules will significantly impact existing value chains2 and forge new pathways and transformation steps from production to consumption. This transition will bring not only substantial cost challenges but also promises to dramatically alter stakeholders’ interactions along value chains. Technological innovation is driving dynamics not seen in the energy sector since the Industrial Revolution, and it will be key to accelerating the transition to a low-carbon economy while sustaining growth and achieving prosperity for all. But as new technologies develop to meet growing energy needs, understanding how these technologies will impact existing energy value chains is crucial for navigating the energy transition successfully. To elucidate these dynamics, we must first identify the key technologies3 driving disruptive change and then understand how their deployment at scale might impact existing value chains or cause new ones to emerge.
Topic:
Environment, Natural Resources, Innovation, Renewable Energy, Value Chains, Hydrogen, and Energy
Political Geography:
Global Focus

4. Toward a Better Immigration System: Fixing Immigration Governance at the U.S. Department of Homeland Security

Author:
Doris Meissner and Ruth Ellen Wasem
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Whether it is record-breaking numbers of unaccompanied child and family migrants crossing the southwest border or unprecedented backlogs in immigration and naturalization petitions, immigration governance is buckling from breakdowns in performance across key Department of Homeland Security (DHS) immigration components and partner agencies. Rethinking immigration governance at DHS and across the executive branch is essential. Although many of the issues plaguing the immigration system are due to Congress’s failure to update immigration laws to reflect national needs, the management of DHS’ immigration components is the responsibility of the executive branch. DHS’ current chain of command and coordination capabilities are not strong enough to counteract the centrifugal forces of better-resourced, singular operations (e.g. border security and immigration detention). The DHS components and the agencies they collaborate with in other federal departments lack the assuredness and agility to effectively recalibrate and adjust to new circumstances. The challenge for the DHS immigration components is to fuse broader immigration policy and performance outcomes with enduring border and national security imperatives. This paper examines questions of structure—as compared with leadership and policy—and proposes changes that would enable more effective and humane implementation of the nation’s immigration laws. It identifies four key organizational areas of concern—mission, institutional structures, funding priorities, and institutional culture—essential to the vitality and governance of the U.S. immigration system. We argue that immigration is a system that spans both intra-DHS and interagency organizational entities and processes, and that it must operate as a system to successfully carry out its duties. Managing immigration as a system calls for coordinated operational capabilities, decision-making structures, and resource allocations. The paper provides recommendations that can be accomplished within the current authority of the secretary of homeland security and the executive branch. In addition, it closes with select proposals for a longer-term change agenda that would require legislation.
Topic:
Immigration, Governance, Homeland Security, and Borders
Political Geography:
North America and United States of America

5. North Korean Cryptocurrency Operations: An Alternative Revenue Stream

Author:
Heeu Millie Kim, June Lee, and Rachel Paik
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
As cryptocurrency has risen to prominence within the past decade, its widespread use has like- wise created great potential for exploitation by malicious actors. With a cyber arsenal capable of reaching cryptocurrency platforms and users, North Korea has increasingly targeted virtual assets as a source of revenue for its regime. In its 2021 final report, the United Nations Panel of Experts estimated that North Korea stole approximately $316.4 million in virtual assets between January 2019 and November 2020. The decentralized nature of the cryptocurrency market is well-suited for a heavily-sanctioned and financially-isolated state like North Korea, especially given tighter trade restrictions and border closures during the COVID-19 pandemic. The ease of obscuring ownership of virtual assets and the lack of regulatory oversight make cryptocurrency all the more attractive for North Korea. Although North Korean cyber operations have been widely publicized, the purpose of this report is to focus on three ways North Korea obtains cryptocurrencies, specifically cryptomining, cryptojacking, and fraudulent initial coin offerings (ICOs). Given observed trends and changes in the cryptocurrency environment—namely, the rise of decentralized finance (DeFi) and over-the-counter brokers—this paper finds that North Korea’s crypto operations are consistent with its national objectives and likely to continue. Second, North Korea’s cryptocurrency operations offer an attractive and transferable model for other financially-isolated states and non-state actors. Finally, governments should work with law enforcement agencies, multilateral institutions, and non-traditional actors to mitigate the national security threat from North Korea’s cryptocurrency activities.
Topic:
Science and Technology, Finance, Cryptocurrencies, and Virtual Assets
Political Geography:
Asia and North Korea

6. Toward an Integrated North American Emergency Response System

Author:
Juliette N. Kayyem
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Disasters and emergencies have never respected borders, and current climate and development trends are only generating greater challenges for emergency management across North America. Natural disasters are evolving: wildfires are growing in frequency and intensity, advancing across borders, destroying forests, homes, and croplands; hurricanes increase in strength and travel trajectory, reaching farther north and leaving greater destruction in their wake; lengthy droughts persist, which fuel greater fire danger and present an urgent water problem for municipalities and agriculture; and environmental migration is a growing reality. Simultaneously, population growth increases demand for housing, services, food, mobility, and more. Additionally, the next pandemic and human-made disasters, whether terrorist in origin or stemming from the cross-border movement of dangerous substances, must remain a planning and response priority. The rapidly intensifying effects of climate change, the increased globalization and potential spread of infectious disease outbreaks, and the rise in both the threat and impact of disruption to technology or infrastructure pose an expanded risk across North America. As the risk profile evolves, so does the need for improved coordination among the United States, Mexico, and Canada. Although the need for collaboration is clear, the distinct federal systems that operate in each country and their politics complicate intergovernmental collaboration, as do the different roles that national, regional, and private corporations can and should play across all of these separate jurisdictions. Each lever of power, governmental or private sector, provides a unique set of capabilities, yet none can address these urgent issues alone. To meet these challenges, North America must progress beyond the historic approach to cross- border emergency management, which has consisted primarily of sharing information, to a more systemic and operational cooperation. Establishing a North American approach is a key component to more comprehensive and effective emergency management structured to meet current and emerging threats. This paper briefly examines the history of emergency response coordination among the United States, Mexico, and Canada, highlighting some of the major bilateral, regional and non-governmental agreements. It analyzes the challenges in emergency response and the resulting shortfalls of existing agreements, as well as considering lessons from COVID-19 pandemic. These historic and current deficiencies support the creation of a more robust tri-lateral agreement to deal with the pressing nature of evolving emergency response threats in the future. The paper concludes with recommendations on how to adapt the current emergency response systems to function as a North American Emergency Response Compact.
Topic:
Climate Change, Natural Disasters, Homeland Security, and Crisis Management
Political Geography:
North America

7. Dismantling Migrant Smuggling Networks in the Americas

Author:
Guadalupe Correa-Cabrera
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Migration trends in the Americas recently have undergone a significant transformation. During the past few years, an increasing number of migrants and asylum seekers from different parts of the hemisphere—and other regions of the world, including Eastern Europe, Southeast Asia and the African continent—have been undertaking a very long and arduous journey to the United States. Migrant mobility has been facilitated by sophisticated smuggling networks (that operate often in tandem with other criminal organizations) and corrupt officials. The journey to the United States of economic migrants and asylum seekers from developing countries or countries at war is invariably perilous. At the same time, current migration trends and organized mass irregular migrations pose substantial homeland security risks. This paper proposes the dismantling of migrant smuggling networks through intelligence and targeted actions as important elements both of border security and enforcement and humanitarian migration management. In addition to these policies, the U.S. government should collaborate closely with other governments to cooperatively redesign asylum systems.
Topic:
Migration, Homeland Security, Human Trafficking, and Asylum
Political Geography:
North America

8. Carbon Capture, Utilization, and Storage: Technologies and Costs in the U.S. Context

Author:
Jonathan M. Moch, William Xue, and John P. Holdren
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The Biden administration has set a goal of reaching net zero economy-wide greenhouse gas emissions by 2050.1 Carbon capture, utilization, and storage (CCUS)—a suite of current and emerging technologies that remove carbon dioxide emissions (CO2) from energy or industrial processes and then either sequester the carbon underground or use it for production of a variety of fuels or products2—is very likely to be a key technology on most of the plausible paths for reaching this goal. Among various applications of the technology, CCUS in combination with natural gas powerplants can be used to provide firm baseload electricity or could serve as backup for intermittent renewable power in place of multi-day electricity storage.3 Additionally, CCUS could be used to decarbonize hard-to-electrify industrial processes4 and to provide synthetic fuels for decarbonizing nonelectric energy uses.5 The key barrier to CCUS filling these various roles and living up to its technical potential is high costs relative to current incentives: despite current U.S. government support through tax policy, CCUS is not economically competitive today in most of its applications. Unless and until it becomes so or is required by law, it will not achieve widespread deployment.
Topic:
Environment, Science and Technology, Natural Resources, Coal, Carbon Emissions, and Energy
Political Geography:
North America and United States of America

9. China’s Rise and U.S. Defense Implications

Author:
Marco Lyons and Natalia Angel
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
What are the international implications of China’s rise? What developments may be expected, and what should U.S. national defense leaders do about the likely effects of these developments? China is a rising power but even if that cannot be said to translate into a security threat to the United States directly, there is little reason to believe that Beijing will not take action to get out from under what it perceives as unfriendly U.S.-led global diplomatic, economic, and security orders. In very broad terms, U.S. defense policy makers will need to address the change from military capabilities for enforcing a liberal international order, to capabilities for both advancing and protecting friendly regional or even sub-regional orders. China’s potential power is sizable and increasing based on a large population and growing national wealth and this potential power makes its neighbors fear that it will become the regional hegemon. Since other states in the region cannot predict if or when Beijing will make a bid for hegemony, relations are beset with uncertainty. Weaker neighbors, like Vietnam and Laos in Southeast Asia, can be expected to accommodate Beijing more while trying to benefit from Chinese economic growth when and where possible.1 The U.S. security allies can be expected to cooperate more with each other while calling for more visible displays of U.S. commitment (including more military force presence).2 India will become more important to U.S. strategy as a link between Australia and Thailand, and the Middle East and Central Asia, and the Pacific and Indian Oceans.
Topic:
Security, Defense Policy, and International Security
Political Geography:
China and United States of America

10. The Challenges of Decarbonizing the U.S. Electric Grid by 2035

Author:
Jonathan M. Moch and Henry Lee
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
The Biden administration has established a national goal of 100% carbon-free electricity by 2035 and reaching net-zero economy-wide greenhouse gas emissions by 2050.1 To realize these goals, the United States must not only transition the production of power, but also build thousands of miles of upgraded or new transmission. The U.S. electric grid consists of 600,000 miles of transmission lines connected to over 1 million megawatts of electricity generation capacity.2 Over 70% of these lines are more than 25 years old, well into their approximately 50-year lifetime.3 Furthermore, to meet President Biden’s 2050 goal, experts claim that over a million miles of new transmission will have to be built over a three-decade time span.4 Most plausible pathways to net-zero emissions call for the electrification of multiple services, such as heating and transportation.5 The resulting increase in electricity demand will require major upgrades to the grid, with some studies suggesting a 60% increase in peak demand by 2050.6 In the United States, the greatest potential wind energy resources are in the Midwest and along the two coasts,7 while the greatest solar energy resources are in the Southwest and in Florida.8 New transmission lines will be needed to carry the electricity from the areas where the renewable resources are most plentiful to distant load centers.
Topic:
Energy Policy, Environment, Natural Resources, Electricity, Decarbonization, and Energy
Political Geography:
North America and United States of America