Transcript The States

Matt Banks, Senior Program Officer,
Climate Change Program, WWF
Framing Climate Change
The problem of disruption of global climate by human-produced
greenhouse gases in the atmosphere is coming to be understood as the
most dangerous and intractable of all the environmental problems
caused by human activity.
The problem is highly intractable because the dominant cause of the
disruption – emission of carbon dioxide from fossil-fuel combustion –
arises from the process that currently supplies nearly 80 percent of
civilization’s energy.
If the energy system is to look much different in 2050 than today, a
major push to change it must start now.
John Holdren (Harvard, Kennedy School of Government)
UN Investor Summit on Climate Risk May 10, 2005
37%
OF ALL MAN-MADE CARBON DIOXIDE EMISSIONS
ARE CREATED BY THE ELECTRIC POWER
SECTOR
SOURCE: International Energy Agency, 2003
The energy sector:
Global Fuel Shares of Primary Supply
Business as Usual - Outlook to 2030
Energy by Type
MBDOE
350
300
Other
250
Coal
200
Gas
150
100
Oil
50
0
1980
2005
2030
• Energy demand will increase over 50% by
2030
– Driven by economic progress &
population growth
• 80% of energy demand growth in non-OECD
• Energy efficiency trends to accelerate
• Oil, gas and coal remain predominant
– Oil resources adequate to sustain growth
– Gas market increasingly global
– Coal growth linked to non-OECD
economic growth
• Technology critical to meeting energy
challenges
The Time for PowerSwitch! Is Now
• Today’s decisions will
have an impact for
the next 50 years
• Rising energy needs
– a huge potential to
reduce emissions
through efficiency
• Wall Street: Firms
with carbon
management
strategies win in the
new operating
environment!
PowerSwitch! Pioneers Lead the Way
• Embrace a less carbon
intensive power sector
• Support binding
national cap on power
sector CO2 emissions
• Commit to take
responsible steps
towards clean energy
20% of electricity sold
from renewables by
2020 and/or
Energy efficiency
increase of 15% by 2020
The US is Key
The American People
• Over 80% of Americans believe that climate change is
here and is a result of human action
• ¾ Of Americans agree that the USA should reduce its
emissions and support mandatory legislation
• There is not a clear sense of urgency and concern about
the cost of action, but a majority accept some cost
• Support for climate action is lowest among Republicans
and wealthier Americans (>$75K)
• Support for climate action is generally weaker among
men, Hispanics, older people and in rural communities
• Polling results are similar to those in Canada and Europe
The States
Renewable Energy Targets
State GHG Emissions Share
• Emissions from a number of US states
larger than many nations
• Actions taken by US states can have as
large an impact on global emissions as
those taken by nations
• Further state action could begin to deflect
emissions curve
Per Capita CO2 Emissions (1998)
Texas
Ohio
Australia
Pennsylvania
Michigan
Wisconsin
Canada
Illinois
Florida
Netherlands
Washington
Maryland
New Jersey
New England
New York
California
Germany
Belgium
UK
FSU
Japan
Italy
France
Mexico
China
India
0
1
2
3
4
5
Tons CO2 per person (1998)
6
7
8
9
USA – Where is Washington?
State and Local Action
– Climate action plans in some 30 States
• North Eastern States regional trading system
• California auto emissions law
– Renewable energy standards in 21 States
– Companies supporting carbon limits
– 187 Cities ‘ratify’ the Kyoto Protocol
vs.
The Administration
– Intensity targets v. real reductions (business as usual)
– Continuing emissions growth (+14% since 1990)
– Trying to pass the buck to large developing countries
– Seeks to block action by States
What We Do: Influence US Climate Policy
 Support the Climate
Stewardship Act to establish
carbon market and for a
national Renewable Portfolio
Standard
 Support state-level action, e.g.
California clean cars bill
 Promote US re-engagement in
global framework through the
G8 and UN
USA - Bering Sea
•Congress
mandates US
carbon market
•ecoregion
resilience
strategy
•Climate Witness
•MPA adaptive
management
•polar bears
© WWF-Canon / Jürgen FREUND
© WWF-Canon / Chris HAILS
What We Do: Engage the Private Sector
Transform the marketplace
in order to effect policy
change
• Provide model companies for
reductions of heat-trapping gases
• 11 Climate Savers
companies
• Adopt clean energy solutions
• 7 PowerSwitch! pioneers
• Provide risk and liability analysis
• Raise awareness of consumers and
We seek to save a planet, a world of life.
A Trusted Brand
Here in the US
*Source: Edelman Study on Trust and Credibility, 2003
And in Europe
*Source: Edelman Study on Trust and Credibility, 2003
Where do we focus our efforts?
Retreating Sea Ice
1973
2003
A Tipping Point
April 2004 – Investors force corporate disclosure of climate change risk
September 2004 – BusinessWeek feature article raises CEO awareness of
climate risk
January 2005 – EU opens the doors to its economy-wide carbon market
February 2005 – Russian ratification allows Kyoto Protocol to go into effect
April 2005 – Duke Energy to lobby for carbon tax because "the time has come to
act" on climate
May 2005 – GE commits to double its investment in technologies to reduce
greenhouse gases
June 2005 – California governor Schwarzenegger declares ambitious reduction
aim of 80% by 2050
July 2005 – World Economic Forum statement to G8
Fall 2005 – Northeast Governors announce RGGI cap-and-trade system
January 2006 – President’s State of the Union calls for federal spending on
alternative energy to increase
Leaders Act Early
•
Catalyst Paper – 70% below
1990 levels by the year 2010
•
Novo Nordisk – 10% below
2004 levels by 2014
•
IBM - 1998 through 2004,
exceeded annual reductions
of CO2 of 4 %
•
Polaroid - 25% below 1994
levels by 2010
•
Tetra Pak – 10% below 2005
levels by 2010
•
The Collins Companies - 15%
below 1999 levels by 2009
•
Sagawa Express - 6% below
2002 levels by 2012
•
Xanterra – 10% below 2000
levels by 2015
•
•
•
Johnson & Johnson - 7%
below 1990 levels by 2010
Lafarge - 10% below 1990
levels by 2010
Nike - 13% below 1998 levels
by 2005
Targeting: What types of companies
will really make a difference?
• Interviews with 5 analysts indicated that Exelon,
Xcel, Entergy, Edison Int’l, PG&E, PPL, Cinergy,
Wisc. Energy, Mid-American and Alliant could be
winnable (investor-owned) targets for 06’
• Recruitment of smaller public power companies
could help build support for climate legislation in
key states (approx. 15)
• Public power companies seem to be the most in
touch with public opinion and consumer demand
and are therefore clean energy early adopters that
should be recognized
Support from WWF & CECS





Analyze emissions inventory

Develop custom climate plan
for real reductions

Verify baselines and renewable
energy procurement

Identify reduction opportunities
and develop targets

Communications
Support integration of Climate
Savers in strategic planning
Help develop brochures and
training modules
Benchmark progress against
other leaders
Provide peer to peer
workshops to prepare for a
carbon constrained world
Results Achieved by Climate Savers
•
Innovative voluntary action of high value to our 11 partners
•
Emissions reductions by well over 10 million tons of CO2 / year by
2010 = taking 2 million cars off the road.
•
Meaningful action by business builds support for real climate policy
response by the US.
•
Climate is now a standard element of corporate strategy and
environmental management systems.
•
Annual Corporate Energy Management and Climate Change
workshops in Washington expose opinion leaders to company
results.
•
Wall Street analyses uncovered financial threats, risks and costs
faced by business.
Questions that need to be
resolved
• What companies will realistically make
a difference in the national debate?
• How do we best manage relations with
companies? Can we foster regular
communication?
• Can we sweeten the benefits package
for companies?