Transcript Current Program Development: EPA`s Climate Leaders

Voluntary Corporate
Climate Change Activities
and Drivers for
Participation
Cynthia Cummis
Climate Protection Partnerships Division
U.S. EPA
A Number of
Climate Change Developments
Affecting U.S. Companies
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Federal
State
Non-Governmental Organizations
International
Financial Community
Federal Developments
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EPA’s Climate Leaders
 companies complete corporate-wide GHG inventory and
track progress on entity-wide targets
 currently 67 Partners with 28 announced targets
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Dept. of Energy’s 1605(b) Program
 allows companies to register entity-based reductions and
to report other information
 revised version to be released in 2005
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Climate VISION sector agreements
 includes agreements with 13 industry sectors
 commitments range from 3-10% intensity improvements
 BRT has goal of 100% participation of members in
Climate RESOLVE
State Developments
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Registries in place
 CA, NH, WI
 others in development
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GHG reduction programs
 CA auto efficiency, OR power plant CO2 mitigation,
MA, NH - CO2 cap & trade, North East RGGI – cap and
trade, WI, ME, CT – reporting requirements
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GHG reduction goals
 NE/E. Canada, NY, CT
 WA, OR and CA under development
NGO Developments
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Chicago Climate Exchange
 GHG emission reduction and trading pilot program
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WWF’s Climate Savers
 works with 8 companies that agreed to absolute GHG
reduction targets
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ED’s Partnership for Climate Action
 companies set reduction target, publicly report, and trade
emissions credits
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World Economic Forum GHG Registry
 only global GHG registry
International Developments
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Kyoto comes into force in February 2005
Emissions reduction and trading schemes
 Japan - 6% below 1990, Environment Ministry proposing
carbon tax
 EU - 8% below 1990, trading scheme began January 2005
involving 12,000 facilities
 Canada - 6% below 1990, trading scheme planned with
price cap
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Voluntary GHG reporting schemes
 WRI/WBCSD Corporate GHG Protocol
(www.ghgprotocol.org) - published second edition in 2004
 ISO 14000 series GHG accounting standards – Draft
International Standard available for comment
Financial Community Developments
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28 shareholder resolutions filed on climate change in 2004
- up from six in 2001 and 19 in 2002.
 i.e. Cinergy, AEP, General Motors
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New investor initiatives:
 UN Investor Summit on Climate Risk in 2004 explored
connection between climate risk and fiduciary responsibility
(+$1 trillion in assets represented)
 10-point “Call for Action” – 10 major investors request steps
by the U.S. Securities and Exchange Commission, corporate
boards, and Wall Street firms to increase disclosure of the
risks posed by climate change (+$250 billion in assets)
 Carbon Disclosure Project requests 500 largest companies
disclose GHG emissions (95 investors are signatories,+$9
trillion assets)
Drivers for Participation in
Voluntary Initiatives
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demonstrate effectiveness of voluntary approach
cost savings
shareholder resolutions
risk management approach
competitive advantage
corporate image
CEO believes it is the right thing to do
influence direction of climate change policy
educate themselves on the issue
The Company We Keep
Contact Information
Cynthia Cummis
U.S. EPA
Climate Protection Partnerships
Division
202/343-9232
[email protected]