AGA Talking Points CO2 Emissions

Natural gas will continue to play a role in reducing U.S. carbon dioxide emissions  America’s natural gas utilities are committed to continuing to reduce emissions by using our nation’s abundance of natural gas in a sustainable, environmentally sound and safe manner.  Natural gas technologies – such as renewable natural gas - offer pathways to achieve our shared goal of reducing emissions while maintaining affordability, reliability and the quality of life that Americans enjoy.  In looking at 2018 data, the primary reason for the increase in CO 2 emissions was increased energy use associated with weather and economic growth.  Temperatures were significantly colder in the winter, and considerably warmer in the summer and, as a result, Americans used more energy thereby causing an increase in CO 2 .  Based on heating degree days, January through March 2018 were 14 percent colder than 2017. April 2018 was the coldest in 2 decades for the continental U.S.  Residential sector energy consumption increased by 15 percent and residential CO 2 emissions climbed by 14 percent for the period January-April 2018 as compared to one year prior.  Similarly, summer was warmer than usual and cooling demand spiked. During the period May- August 2018, electric power generation was 4.5 percent higher than 2017 and natural gas use for electric power set monthly records in July and August 2018.  The U.S. used a record amount of electricity in 2018 according to initial projections from EIA. Total retail sales of electricity reached an all-time high because of economic growth, a larger building stock and the weather. Therefore, power sector’s CO 2 emissions increased.  Natural gas played a considerable role in meeting increased energy needs.  The U.S. power sector’s CO 2 emissions increased, but a downward trend remains.  CO 2 emissions would have been much higher in 2018 if it weren’t for the increased use of natural gas and renewables during the past decade.  Looking only at residential buildings, there are divergent trends by fuel: o Electricity CO 2 emissions increased significantly until 2009, at which point there began a decline. o Natural gas CO 2 emissions have been flat for decades thanks in large part to energy efficiency efforts.  The average natural gas customers’ CO 2 footprint has cut in half since 1970 thanks to building and appliance energy efficiency, consumer conservation and the impact of utility energy efficiency programs.  The progress is good but how do we continue this success? A recent analysis from Enovation Partners suggests that natural gas technologies can contribute more to emissions reductions, and at a lower cost. In the study, the consulting group identifies and assesses more than 100 emerging natural gas end-use technologies that could contribute materially to GHG reductions. They found a GHG reduction potential of 25 to 40 percent on a customer basis.  Integrating efficient natural gas into long-term resource planning can help to achieve continued reductions in the building sector. We need to: o continue to increase consumer access to high-efficiency natural gas appliances, o advance research, development and deployment of next generation natural gas technologies o develop renewable natural gas.  Industry efforts and public policy are key to meeting these objectives.