Transcript Presentation Title Goes Here

Climate Change . . .
Risks and Opportunities
Taylor Davis
John Deere Public Affairs Worldwide
October 16, 2007
Overview
• Background
– Agriculture
– John Deere
• What’s Going on Now?
– Who are the new players?
– What remains the same?
• Addressing Global Climate Change
– State and regional actions
– Federal action
– Risks / Rewards / Roles
Slide 2
Background
• Greenhouse effect
• Greenhouse gases
• Are they pollutants – yes, according to US Supreme
Court
Slide 3
Agriculture / Forestry
• Emissions
– Inputs (e.g., fertilizer, mobile sources)
– Operations (e.g., methane)
• Carbon sinks/credits
– Soil / forest carbon sequestration
– Credits under cap & trade system
• Low carbon biofuels
– Ethanol
– Biodiesel
• Alternative energy (e.g., wind power)
Slide 4
John Deere / Climate Change
• Engines
• Manufacturing
• Products / customers
Slide 5
What’s Changed?
• Congressional control
• New / additional players
– Business leaders
– Religious groups, hunters/fishers, others
– State, local, regional, involvement
• Massachusetts vs. Environmental Protection Agency
– EPA has authority to regulate greenhouse gas emissions
– CO2 within CAA broad definition of air pollutant
– Catalyst for comprehensive federal climate change legislation
Slide 6
What’s The Same?
• Federal policy
• Regional differences (e.g., coal vs. non-coal states)
• Economic/competitiveness concerns
• Still need 60 Senate votes
• Difficult nature of solutions
Slide 7
Global Climate Change
Slide 8
State Action
• Busy with initiatives for various reasons
– Climate concerns
– Economic development
– Energy prices
– Energy independence
– Air quality
– Traffic congestion
– Political leadership
Slide 9
States With GHG Emission Targets
Slide 10
State / Regional Actions
(Regional Agreements)
Slide 11
State / Regional Actions
(Registries)
Slide 12
State / Regional Actions (RPS)
Slide 13
State / Regional Actions
(State Biofuels Mandates/Incentives)
Slide 14
Federal Action in 110th?
• 5 Key proposals for emissions reductions/ Cap-and-Trade
– Sanders-Boxer:
42%/63%
– Kerry-Snowe:
42%/61%
– McCain-Lieberman:
39%/59%
– Feinstein-Carper:
25%/45%
– Bingaman-Specter:
7.6%/21.9%
• Some economy-wide, some just power sector
• Some are only “upstream,” others hybrid of “upstream” and
“downstream”
Slide 15
Risks
• Events: flooding, drought, coastal erosion
• Regulatory: Clean Air Act, National Environmental Policy Act,
Endangered Species Act, US EPA actions
• Litigation: Public nuisance claims, tort, state enforcement
• Reputation: Public and investor relations
• Competitive: Differentiating products and services
Slide 16
Rewards
• Security
• Economic
– Products
– Services
• Environmental
– Sustainable practices
– Air/water quality
Slide 17
Roles
• Business
• Non-governmental organizations
• Federal, local and state government
• Iowa’s role?
– Low carbon fuels
– Other renewable energy resources
Slide 18
Climate Change . . .
Risks and Opportunities
QUESTIONS?
Slide 19