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Big Fossil-fuel-Producing Countries Export Emissions
Context:
Fossil fuel exporters shift emissions abroad, profiting while others bear the climate burden. In Alexandria, Egypt, residents blame a cement plant, run by Greece’s Titan Cement, for air pollution from burning coal, highlighting local and global impacts of exported fuels.
About the Issue of Developed Country Export of Coal:
- Developed nations continue to export vast quantities of fossil fuels, including coal, to developing countries. This trade enables exporters to profit while shifting the environmental and health burdens to nations often lacking stringent regulations.
- The Alexandria Portland Cement Company in Egypt, for instance, heavily relies on imported coal from the United States, contributing to local pollution. While exporting nations claim progress in reducing domestic emissions, their fossil fuel exports fuel global emissions elsewhere, undermining global climate efforts.
State of Fossil Fuel Exports:
- Fossil fuel exports have become a significant contributor to global emissions. In 2022, U.S. fossil fuel exports generated over 2 billion tons of CO₂-equivalent emissions abroad, approximately one-third of its domestic emissions. U.S. coal exports have grown for four consecutive years, with Egypt and Morocco emerging as key markets.
- North Africa imported over 5 million short tons of coal for cement and brick manufacturing in 2024, with Egypt alone accounting for nearly half of these imports. This trend highlights the growing dependence of developing nations on imported coal.
Drawbacks in the Paris Agreement to Address the Issue:
- The Paris Agreement requires nations to report domestic emissions but excludes accountability for emissions resulting from exported fossil fuels.
- This gap allows major exporters like the U.S., Norway, and Australia to claim climate progress while profiting from exports that exacerbate global emissions. Without regulations to track and mitigate exported emissions, the agreement risks undermining its goal of limiting global warming to 1.5°C.
Lack of Intent from Developed Nations to Address the Issue:
- Despite their environmental commitments, developed nations show limited intent to tackle exported emissions. The U.S., Canada, and Australia continue to prioritise fossil fuel production and export to maintain economic stability and energy dominance.
- For instance, U.S. coal exports reached 52.5 million short tons in the first half of 2024, reflecting a 7% year-on-year increase. This lack of accountability undermines global climate justice and disproportionately affects developing nations.
About the U.S. Coal and Gas Industry: Export and Domestic Trends:
- U.S. coal exports have surged as domestic demand declines due to cheaper natural gas and renewable energy subsidies. Meanwhile, gas exports primarily target Europe, compensating for reduced Russian imports, while China remains a major buyer of U.S. crude and coal.
- Domestically, coal use continues its 15-year decline, underscoring a shift towards cleaner energy sources. However, this domestic progress is offset by rising exports, particularly to energy-intensive industries in developing regions.
Impact of High Coal Use in Developing Countries: Case Study Egypt:
- Egypt’s reliance on imported coal since 2015 has fueled emissions of pollutants like TSP, nitrogen dioxide, and sulfur dioxide. These emissions, though mostly within legal limits, have worsened air quality and health outcomes.
- In Wadi al-Qamar, Alexandria, residents report black dust pollution from the Alexandria Portland Cement Company, sparking prolonged legal battles. Despite community opposition and government pledges to phase out coal, limited renewable fuel alternatives have hindered progress.
Challenges in Decarbonising the Cement Industry:
- The cement industry is one of the most energy-intensive sectors, relying on coal for high-temperature kiln operations.
- Transitioning to cleaner alternatives like refuse-derived fuel (RDF) or renewable energy is costly and requires significant technological upgrades.
- Developing nations like Egypt face additional challenges, including inadequate RDF supply and limited financial resources, making decarbonisation a daunting task.
Way Forward:
Addressing the issue of exported emissions requires coordinated global efforts:
- Expand Paris Agreement Provisions: Include accountability for emissions from exported fossil fuels, compelling exporters to share responsibility.
- Incentivise Cleaner Alternatives: Provide financial and technical support to developing countries to adopt renewable fuels in energy-intensive industries.
- Global Emissions Reporting: Introduce mechanisms for tracking and reporting lifecycle emissions of fossil fuel exports.
- Promote Equitable Climate Action: Developed nations must align their economic policies with global climate goals, balancing energy needs with environmental responsibilities.
- Strengthen Domestic Policies in Importing Nations: Countries like Egypt can enforce stricter environmental standards and prioritise investments in renewable energy.
- By adopting a more equitable and comprehensive approach, the global community can move closer to achieving climate resilience while addressing the disparities in environmental burdens.
