Russia's 2020 GHG emissions target: Emission trends and implementation

This article provides an overview of the recent modelling results on Russia's GHG emission trends, and reviews the success of mitigation policies in order to establish whether Russia's domestic target seems feasible. Various Russian GHG emission scenarios indicate that Russia's domestic target – emissions 25% below the 1990 level by 2020 – is not far from the business-as-usual emissions trajectory. In particular, two factors could deliver the required emissions reductions: the currently declining gross domestic product (GDP) growth and ongoing domestic mitigation policies. The former is more likely to secure the target level of emissions, because GDP growth has been contracting significantly in comparison to earlier forecasts of 3–5% annual growth, and this trend is expected to continue. The latter option – success with domestic mitigation measures – seems less likely, given the various meta-barriers to policy implementation, and the marginality of mitigation policies, problems with law-making processes, bureaucratic tradition, and informality of legislative and implementation systems.

Policy relevance

This article provides an assessment of the stringency of Russia's domestically set emissions limitation target by 2020 and the chances of Russia, the fourth largest GHG emitter in the world, achieving it. We base our assessment on a number of recent key sources that analyse Russia's GHG emission paths by applying socio-economic models, which have only been available in the Russian language prior to this publication. This knowledge is applicable for use by other negotiation parties to compare Russia's efforts to mitigate climate change to their own, and thus makes a contribution to facilitating a more equal burden-sharing of climate commitments under the future climate change agreement.     

Impacts of Climate Change on the Global Forest Sector

The path and magnitude of future anthropogenic emissions of carbon dioxide will likely influence changes in climate that may impact the global forest sector. These responses in the global forest sector may have implications for international efforts to stabilize the atmospheric concentration of carbon dioxide. This study takes a step toward including the role of global forest sector in integrated assessments of the global carbon cycle by linking global models of climate dynamics, ecosystem processes and forest economics to assess the potential responses of the global forest sector to different levels of greenhouse gas emissions. We utilize three climate scenarios and two economic scenarios to represent a range of greenhouse gas emissions and economic behavior. At the end of the analysis period (2040), the potential responses in regional forest growing stock simulated by the global ecosystem model range from decreases and increases for the low emissions climate scenario to increases in all regions for the high emissions climate scenario. The changes in vegetation are used to adjust timber supply in the softwood and hardwood sectors of the economic model. In general, the global changes in welfare are positive, but small across all scenarios. At the regional level, the changes in welfare can be large and either negative or positive. Markets and trade in forest products play important roles in whether a region realizes any gains associated with climate change. In general, regions with the lowest wood fiber production cost are able to expand harvests. Trade in forest products leads to lower prices elsewhere. The low-cost regions expand market shares and force higher-cost regions to decrease their harvests. Trade produces different economic gains and losses across the globe even though, globally, economic welfare increases. The results of this study indicate that assumptions within alternative climate scenarios and about trade in forest products are important factors that strongly influence the effects of climate change on the global forest sector.     

Estimating the CDM market under the Marrakech Accords

Abstract

The agreement on implementation of the Kyoto Protocol achieved at COP7 in Marrakech has important implications for investment in greenhouse gas emission reduction projects in developing countries through the Clean Development Mechanism (CDM). The required actual emission reductions for participating Annex B countries overall will be relatively small, as the United States do not intend to ratify the protocol and significant amounts of carbon sequestered in domestic sinks can be credited. In addition, the potential supply of surplus emission permits (hot air) from Russia and other economies in transition may be as high as total demand in the first commitment period. Thus, even under restraint of hot air sellers, CDM demand will be limited, and a low demand, low price carbon market scenario appears likely.

The magnitude of the CDM will be influenced by a host of factors both on the demand and the supply-side. We analyse these using a quantitative model of the global carbon market, based on marginal abatement cost curves. Implementation and transaction costs, as well as baseline and additionality rules affect the CDM's share in the carbon market. Demand for the CDM is sensitive to changes in business-as-usual emissions growth in participating Annex B countries, and also to crediting for additional sinks. Permit supply from Russia and other economies in transition is possibly the most crucial factor in the carbon market.     

Economic consequences of the US withdrawal from the Kyoto/Bonn Protocol

Abstract

The US decision not to ratify the Kyoto Protocol and the recent outcomes of the Bonn and Marrakech Conferences of the Parties have important implications for both the effectiveness and the efficiency of future climate policies. Among these implications, those related with technical change and with the functioning of the international market for carbon emissions are particularly relevant, because these variables have the largest impact on the overall abatement cost to be borne by Annex B countries in the short and in the long run. This paper analyses the consequences of the US decision to withdraw from the Kyoto/Bonn Protocol both on technological innovation and on the price of emission permits (and, as a consequence, on abatement costs). In particular, the analysis highlights mechanisms and feedbacks related to technological innovation, technological spillovers and R&D which could be relevant and which modify some policy relevant conclusions. First, we identify two feedback effects which explain why our results lead to a less significant fall in the price of permits than in most empirical analyses recently circulated. We show that the US defection from the Kyoto Protocol, by inducing a decline in the demand and price of emission permits, lowers the incentives to undertake energy-saving R&D. As a consequence, emissions increase and feed back on the demand and supply of permits, thus implying a lower decline in the price of permits than previously estimated. At the same time, as a result of the reduced R&D investments and the augmented emissions, climate change damages intensify and require an increase in investments that are again coupled with a growth of emissions. By thus again increasing the demand for permits and reducing their supply, this effect enhances the previous mechanism. Notwithstanding the lower decline in the price of permits, the paper still identifies a smaller price than would occur with a US participation. Therefore, we emphasise in a second step the crucial role of Russia in climate negotiations due to a large increase in Russia's bargaining power.     

Brazil beyond 2020: from deforestation to the energy challenge

The main assumptions and findings are presented on a comparative analysis of three GHG long-term emissions scenarios for Brazil. Since 1990, land-use change has been the most important source of GHG emissions in the country. The voluntary goals to limit Brazilian GHG emissions pledged a reduction in between 36.1% and 38.9% of GHG emissions projected to 2020, to be 6–10% lower than in 2005. Brazil is in a good position to meet the voluntary mitigation goals pledged to the United Nations Framework Convention on Climate Change (UNFCCC) up to 2020: recent efforts to reduce deforestation have been successful and avoided deforestation will form the bulk of the emissions reduction commitment. In 2020, if governmental mitigation goals are met, then GHG emissions from the energy system would become the largest in the country. After 2020, if no additional mitigation actions are implemented, GHG emissions will increase again in the period 2020–2030, due to population and economic growth driving energy demand, supply and GHG emissions. However, Brazil is in a strong position to take a lead in low-carbon economic and social development due to its huge endowment of renewable energy resources allowing for additional mitigation actions to be adopted after 2020.

Policy relevance

The period beyond 2020 is now relevant in climate policy due to the Durban Platform agreeing a ‘protocol, legal instrument or agreed outcome with legal force’ that will have effect from 2020. After 2020, Brazil will be in a situation more similar to other industrialized countries, faced with a new challenge of economic development with low GHG energy-related emissions, requiring the adoption of mitigation policies and measures targeted at the energy system. Unlike the mitigation actions in the land-use change sector, where most of the funding will come from the national budgets due to sovereignty concerns, the huge financial resources needed to develop low-carbon transport and energy infrastructure could benefit from soft loans channelled to the country through nationally appropriate mitigation actions (NAMAs).     

Domestic actions contributing to the mitigation of GHG emissions from power generation in Brazil

Abstract

Continued growth and the privatisation of Brazil's electricity system, which is largely based upon hydropower, is projected to lead to big expansion mainly of natural gas but also coal power stations with a resulting huge growth in greenhouse gases (GHG) emissions unless steps are taken to avoid this. The Brazilian National Program of Power Conservation and Efficient Use of Electrical Energy in terms of avoided GHG emissions (PROCEL), originally created in 1985, is a multi-stakeholder program coordinated by Eletrobrás aimed to reduce the waste of electrical power on both supply and demand side. Initially crippled by lack of funds, a new finance structure introduced in 1994 has greatly increased PROCEL's impact. Here we develop scenarios that suggest that continued expansion of PROCEL's programme, including resources that might be drawn through clean development mechanism (CDM) projects, to meet projected PROCEL targets over the next two decades could avoid approximately one-third of the GHG emissions from the Brazilian power sector. This contribution demonstrates the significant global environmental benefits of PROCEL in addition to national benefits of this innovative programme.     

中国交通行业实施环境经济政策的协同控制效应研究

目前,交通行业已成为中国局地大气污染物和温室气体的重要排放来源之一,而且随着交通运输规模的不断扩大,与工业和生活排放相比,交通排放贡献占比呈相对增加趋势。文中构建了“CGE-CIMS联合模型”,对中国交通行业实施环境经济政策的局地大气污染物和CO₂协同控制效应进行量化评估。结果显示,与BAU情景相比,环境税、碳税、成品油消费税以及政策组合情景均促进了交通行业的电力消费替代汽油、柴油等石油制品,即使考虑政策实施后电力消费增加导致的间接排放,各情景下综合大气污染物协同减排量（ICER）仍为正值,即各项环境经济政策均具有较好的协同控制局地大气污染物和CO₂的效果。本文最后提出了包括聚焦高排放交通工具,以补贴低碳交通方式配合绿色税制改革,以及电力行业低碳发展等交通行业实施环境经济政策的配套措施建议。     

Role of the Tibetan plateau glaciers in the Asian summer monsoon

The expected growth in the demand for passenger and freight services exacerbates the challenges of reducing transport GHG emissions, especially as commercial low-carbon alternatives to petroleum fuels are limited for shipping, air and long-distance road travel. Biofuels can offer a pathway to significantly reduce emissions from these sectors, as they can easily substitute for conventional liquid fuels in internal combustion engines. In this paper, we assess the potential of bioenergy to reduce transport GHG emissions through an analysis leveraging various integrated assessment models and scenarios, as part of the 33rd Energy Modeling Forum study (EMF-33). We find that bioenergy can contribute a significant, albeit not dominant, proportion of energy supply to the future transport sector: in scenarios aiming to keep the temperature increase below 2 °C by the end of the twenty-first century, models project that in 2100 bioenergy can provide on average 42 EJ/yr (ranging from 5 to 85 EJ/yr) for transport (compared to 3.7 EJ in 2018), mainly through lignocellulosic fuels. This makes up 9–62% of final transport energy use. Only a small amount of bioenergy is projected to be used in transport through electricity and hydrogen pathways, with a larger role for biofuels in road passenger transport than in freight. The association of carbon capture and storage (CCS) with bioenergy technologies (BECCS) is a key determinant in the role of biofuels in transport, because of the competition for biomass feedstock to provide other final energy carriers along with carbon removal. Among models that consider CCS in the biofuel conversion process the average market share of biofuels is 21% in 2100 (ranging from 2 to 44%), compared to 10% (0–30%) for models that do not. Cumulative direct emissions from the transport sector account for half of the emission budget (from 306 to 776 out of 1,000 GtCO₂). However, the carbon intensity of transport decreases as much as other energy sectors in 2100 when accounting for process emissions, including carbon removal from BECCS. Lignocellulosic fuels become more attractive for transport decarbonization if BECCS is not feasible for any energy sectors. Since global transport service demand increases and biomass supply is limited, its allocation to and within the transport sector is uncertain and sensitive to assumptions about political as well as technological and socioeconomic factors.

     

Estimating the CDM market under the Marrakech Accords

The agreement on implementation of the Kyoto Protocol achieved at COP7 in Marrakech has important implications for investment in greenhouse gas emission reduction projects in developing countries through the Clean Development Mechanism (CDM). The required actual emission reductions for participating Annex B countries overall will be relatively small, as the United States do not intend to ratify the protocol and significant amounts of carbon sequestered in domestic sinks can be credited. In addition, the potential supply of surplus emission permits (hot air) from Russia and other economies in transition may be as high as total demand in the first commitment period. Thus, even under restraint of hot air sellers, CDM demand will be limited, and a low demand, low price carbon market scenario appears likely.The magnitude of the CDM will be influenced by a host of factors both on the demand and the supply-side. We analyse these using a quantitative model of the global carbon market, based on marginal abatement cost curves. Implementation and transaction costs, as well as baseline and additionality rules affect the CDM’s share in the carbon market. Demand for the CDM is sensitive to changes in business-as-usual emissions growth in participating Annex B countries, and also to crediting for additional sinks. Permit supply from Russia and other economies in transition is possibly the most crucial factor in the carbon market.     

碳中和愿景下的污水处理厂温室气体排放情景模拟研究

污水处理厂运行过程中大量释放甲烷（CH₄）和氧化亚氮（N₂O),是重要的人为温室气体排放源。基于2005—2015年统计资料和IPCC核算方法,估算了2005—2015年中国生活污水处理厂CH₄和N₂O排放,分析了其排放特征和影响因素;依据碳中和愿景设定3种减排情景（低减排、中减排和高减排),并预估了2020—2050年排放趋势和时空变化。结果表明：2005—2015年间污水处理厂温室气体排放量呈稳定增长趋势,CH₄从1135.37万t CO₂e上升至1501.45万t CO₂e,N₂O从2651.08万t CO₂e上升为2787.05万t CO₂e,年均增速分别为2.8%和0.5%。3种减排情景下,2020—2050年CH₄和N₂O排放量时间上呈先增后减趋势,低减排情景下CH₄和N₂O排放量分别于2036年和2025年达到峰值,分别为2431万和2819万t CO₂e;中减排情景和高减排情景下CH₄峰值点分别出现在2027和2025年,而N₂O排放峰值均出现在2025年。2050年中减排和高减排情景下CH₄排放量相较于低减排情景减排率约为47%和94%;2050年低减排、中减排和高减排情景下N₂O排放量相较于2015年分别减排了12%、53%和95%。CH₄和N₂O排放量在空间上差异显著,华东地区排放量高,西北地区排放量低,东南区域所在省份排放量整体高于西北区域省份。影响因素中的经济发展程度与温室气体排放量密切相关。     

Demand vs supply-side approaches to mitigation: What final energy demand assumptions are made to meet 1.5 and 2 °C targets?

Today’s climate policies will shape the future trajectory of emissions. Consumption is the main driver behind recent increases in global greenhouse gas emissions, outpacing savings through improved technologies, and therefore its representation in the evidence base will impact on the success of policy interventions. The IPCC’s Special Report on Global Warming of 1.5 °C (SR1.5) summarises global evidence on pathways for meeting below-2 °C targets, underpinned by a suite of scenarios from integrated assessment models (IAMs). We explore how final energy demand is framed within these, with the aim to making demand-related assumptions more transparent, and evaluating their significance, feasibility, and use or underutilisation as a mitigation lever. We investigate how the integrated assessment models compensate for higher and lower levels of final energy demand across scenarios, and how this varies when mitigating for 2 °C and 1.5 °C temperature targets through an analysis of (1) final energy demand projections, (2) energy-economy relationships and (3) differences between energy system decarbonisation and carbon dioxide removal in the highest and lowest energy demand pathways. We look across the full suite of mitigation pathways and assess the consequences of achieving different global carbon budgets. We find that energy demand in 2100 in the highest energy demand scenarios is approximately three to four times higher than the lowest demand pathways, but we do not find strong evidence that 1.5 °C-consistent pathways cluster on the lower end of demand levels, particularly when they allow for overshoot. The majority of demand reductions happen pre-2040, which assumes absolute decoupling from economic growth in the near-term; thereafter final energy demand levels generally grow to 2100. Lower energy demand pathways moderately result in lower renewable energy supply and lower energy system investment, but do not necessarily reduce reliance on carbon dioxide removal. In this sense, there is more scope for IAMs to implement energy demand reduction as a longer-term mitigation lever and to reduce reliance on negative emissions technologies. We demonstrate the need for integrated assessments to play closer attention to how final energy demand interacts with, relates to, and can potentially offset supply-side characteristics, alongside a more diverse evidence base.     

Regulating CO2 in electricity markets: sources or consumers?

The regulation of greenhouse gas emissions from the electricity sector within a cap-and-trade system poses significant policy questions on where to locate the point of compliance. Electricity markets often cross national or other regulatory boundaries, so that electricity generated within the boundary may comply with expectations but imported electricity may not. The question addressed in this article is where to locate the point of compliance in the electricity sector—where in the supply chain linking fuel suppliers to generators to the transmission system to retail load-serving entities should the obligation for measurement and compliance be placed? This problem is examined in the specific context of California's legislative requirements and particular energy markets, with the implications of the different policy options explored. The conclusion offered is that one particular approach to regulating the electricity sector—the ‘first-seller approach’—would be best for California. The alternative ‘load-based approach’ has had a head start in the policy process but would undermine an economy-wide market-based emissions trading programme.     

Post-Kyoto energy strategy of the Russian Federation,outlooks and prerequisites of the Kyoto mechanisms implementation in the country

Abstract

Energy sector emissions from Russia have declined by about 33% from 1990 levels. We estimate that some 60–70% of the reduction is due to economic decline, and about 8–12% of it is due to reforms in the energy sector; the remainder being due to the wider use of natural gas and structural changes in the economy. Vigorous institutional and technological measures to promote energy efficiency could lead to savings of over 100 million t.c.e. per year by 2010, and keep CO₂ emissions fairly close to current levels over the decade. In our view, international emissions trading should not lead to global emissions growth, but should facilitate the best energy saving and efficiency. Consequently, we propose that the available assigned amount should be divided into two components. That part arising from ‘type 1’ reductions, produced by special projects and measures relating to GHG reduction taken since 1990, should be freely traded; whereas the remaining ‘type 2’ surplus, without a clear link to real emission reduction activity, should only be traded if the revenues are recycled into special projects resulting in emissions reduction equal to or more than the amount of emissions sold.     

基于CGE模型的电力低碳转型速度调控策略研究——以粤港澳大湾区为例

为探讨粤港澳大湾区实现碳中和及电力低碳转型过程的供应安全,构建粤港澳大湾区动态CGE模型,设计51种情景模拟各类型发电量的年均变化幅度,以全社会福利最大化为评价指标,研究煤电退役到保底容量、煤电完全退役和气电达峰容量的最优时间节点和发展速度。结果表明：2020年煤电发电量以年均降低66亿kW∙h幅度退役到2032年保底容量,再以年均降低40亿kW∙h幅度在2045年实现完全退役;气电发电量从2020年起以年均增长61亿kW∙h的幅度在2038年达到峰值,然后以年均51亿kW∙h幅度退役到2050年保底容量1323亿kW∙h;进一步依据2020—2050年本地总发电量增速不变得到非化石电力增长速度,此种煤电、气电和非化石电力发展速度组合的经济性最优。相比基准情景,优选出的电力转型组合情景可累积促进化石能源消费量降低1.1亿tce,碳排放降低2.8亿t CO₂,电力部门增加值增长238亿元,其他部门增加值增长172亿元。     

中国交通部门污染物与温室气体协同控制模拟研究

开展交通领域大气污染物与温室气体协同减排研究对于实现能源、环境和气候变化综合管理具有重要意义。文中以我国交通部门污染物与温室气体协同治理为切入点,开展道路、铁路、水运、航空和管道运输等各子部门未来需求预测,并运用长期能源可替代规划系统模型（LEAP),通过构建基准情景、污染减排情景、绿色低碳情景和强化低碳情景,模拟分析我国交通领域能源需求、污染物及碳排放趋势。结果表明,强化低碳情景下,我国交通部门能源消费将在2037年达峰,CO₂排放将在2035年达峰;绿色低碳情景下,CO₂排放将在2040年达峰;淘汰老旧汽车、“公转铁”“公转水”等政策性措施将有效减少NOx、PM2.5等污染物排放,发展氢燃料、生物航油等技术性措施将进一步减少污染物排放;要实现交通领域绿色低碳发展,需分别对客运、货运交通从节能降碳与协同减排两方面实施相关措施,综合施策是完成能源消费与碳排放达峰目标的重要保证。     

对IPCC第五次评估报告部门减排路径和措施评估结果的解读

分析、解读了IPCC第五次评估报告对能源供应,工业,交通,建筑,农业、林业和其他土地利用（AFOLU）等部门温室气体和CO2减排途径和措施评估的主要结论。2000年以来,除了AFOLU,其他部门的温室气体排放量一直在增长。在增加的排放量中能源系统、工业、交通运输和建筑部门分别贡献了47%、30%、11%和3%。未来,这些部门仍将是全球温室气体的主要排放源和减排的重点领域。通过推进技术进步,持续提高能源效率,进一步优化能源结构,提高碳排放效率,提高原材料使用效率,强化废物管理,提高产品使用效率,减少对产品及相应服务的需求以及广泛利用碳捕获与封存和CO2去除技术,到2050年与基准情景相比,这些部门的CO2排放量可减少15%～80%。所有这些减排措施对我国主要部门减排CO2均具有借鉴意义。     

Integrated assessment of biomass supply and demand in climate change mitigation scenarios

Biomass is often seen as a key component of future energy systems as it can be used for heat and electricity production, as a transport fuel, and a feedstock for chemicals. Furthermore, it can be used in combination with carbon capture and storage to provide so-called “negative emissions”. At the same time, however, its production will require land, possibly impacting food security, land-based carbon stocks, and other environmental services. Thus, the strategies adopted in the supply, conversion, and use of biomass have a significant impact on its effectiveness as a climate change mitigation measure. We use the IMAGE 3.0 integrated assessment model to project three different global, long term scenarios spanning different socioeconomic futures with varying rates of population growth, economic growth, and technological change, and investigate the role of biomass in meeting strict climate targets. Using these scenarios we highlight different possibilities for biomass supply and demand, and provide insights on the requirements and challenges for the effective use of this resource as a climate change mitigation measure. The results show that in scenarios meeting the 1.5 °C target, biomass could exceed 20% of final energy consumption, or 115–180 EJ_Prim/yr in 2050. Such a supply of bioenergy can only be achieved without extreme levels land use change if agricultural yields improve significantly and effective land zoning is implemented. Furthermore, the results highlight that strict mitigation targets are contingent on the availability of advanced technologies such as lignocellulosic fuels and carbon capture and storage.     

Carbon prices and greenhouse gases abatement from agriculture,forestry and land use in Nepal

The Agriculture, forestry and other land use (AFOLU) sector as a whole accounts for more than 80% of the total greenhouse gas (GHG) emission in Nepal. This study estimates the GHG emissions from the AFOLU sector in the business as usual (BAU) case during 2010–2050 and identifies the economically attractive countermeasures to abate GHG emissions from the sector at different carbon prices. It also estimates the carbon price elasticity of GHG abatement from the sector. The study finds that enteric fermentation processes in the livestock and emissions from agricultural soils are the two major contributors of GHG emission in AFOLU sector. It identifies no-regret abatement options in the AFOLU sector that could mitigate about 41.5% of the total GHG emission during 2016–2050 in the BAU scenario. There would be a net cumulative carbon sequestration of 16 million tonnes of carbon dioxide equivalent (MtCO₂e) at $10 per tonne of carbon dioxide equivalent (tCO₂e) during the period. Carbon price above $75/tCO₂e is not found to be much effective in achieving significant additional reduction in GHG emissions from the AFOLU sector.     

Exploring future copper demand,recycling and associated greenhouse gas emissions in the EU-28

Copper is widely used in modern technology, but declining ore grades and depletion of natural deposits have raised concerns regarding sustainable demand-supply balance in the long term. The vulnerability to primary copper supply restrictions amplifies for countries dependant on imports, notably many EU Member States. Recycling of post-consumer scrap can provide a valuable source of essential material to the European industry. However, a considerable fraction of collected and processed copper old scrap is exported, while the remaining fraction is either not recovered or lost due to nonfunctional recycling undermining the implementation of a circular economy. In this work, material flow analysis, regression analysis, and life cycle assessment are combined to explore the possible evolution of four scenarios of copper demand in Europe to year 2050 and the potentials for greenhouse gas emissions reduction under material circularity conditions.The results show that for three of the four scenarios, secondary production would not comply with the carbon dioxide emissions reduction target of 50% below 2000 levels neither in case of combined aggressive recycling, moderate decarbonization of electricity, and energy efficiency improvements. In particular, for the scenario that describes a “business as usual” approach, the modelled future domestic demand can only be met by increasing primary inputs and, despite strong efforts to improve recycling at end-of-life, the fraction of old scrap in total metal demand seems likely to achieve 65% at best. Should that scenario ensue, the GHG emissions embodied in EU copper demand might result in an emissions gap of more than 15 TgCO₂eq or about +260% the carbon dioxide reduction target. In contrast, the lowest environmental impacts are associated with a scenario emphasizing green technology and more equitable lifestyles. In that scenario, the secondary copper flows will gradually approach the expected demand, laying the foundation for achieving a circular economy with considerable potential for preserving natural capital and mitigating climate change. This possible future, however, requires dramatic changes in the current pattern of material production and consumption, as we discuss.     

Adaptation of California’s electricity sector to climate change

Climate change is likely to pose considerable new challenges to California’s electricity sector. This paper primarily focuses on the adaptation challenges of an important component of the energy arena: electricity demand in the residential and commercial sectors and electricity supply. The primary challenge to California’s electricity sector will likely be the increase in demand for air conditioning as a result of rising temperatures. In addition, renewable energy sources, which are an increasing share of the electricity portfolio, are particularly vulnerable to climate change. Many of the key players have been actively considering the implications of climate change. Because electricity generation accounts for nearly 30% of greenhouse gas emissions, this sector has been a target of the state’s efforts to reduce emissions. Fortunately, many of the same tools can simultaneously improve the sector’s resilience to a changing climate. Demand management strategies and supply diversification are both important strategies. Local governments can play a central role in encouraging the adoption of more energy efficient building codes and the use of more renewable sources, such as solar energy. The positive steps taken by many local governments are encouraging. Steps to increase public awareness are an important, often missing component, however. Increases in research, development, and demonstration to improve system resiliency and develop new energy conservation tools are also needed.