California Dream 2.0

Investor Confidence Project San Francisco Event Fires Up Energy Efficiency Professionals

By: Matt Golden, Senior Energy Finance Consultant

icp-sf-connect-1-300x168Last week, EDF’s Investor Confidence Project (ICP) co-hosted an energy efficiency finance networking event in San Francisco, bringing together 70 local project developers, for the first-ever SF Inter-Connect. Held in collaboration with San Francisco Department of the Environment (SF Environment) and Pacific Gas & Electric (PG&E) on November 12 at the SF Environment offices, the event gave each investor, much like in ‘speed dating’, exactly five minutes to pitch the crowd on their products, describing how they worked and what kind of projects the investor was looking for.

The Investor Confidence Project is accelerating the development of a global energy efficiency market by standardizing how Investor Ready Energy Efficiency™ projects are developed and energy savings estimates are calculated. The ICP system offers a series of protocols that define industry best practices for energy efficiency project development and a credentialing system that provides third-party validation. This leads to increased confidence among building owners and investors in the reliability of projected savings. Read More »

Posted in Clean Energy, Energy, Energy Efficiency, General| Leave a comment

Carbon Markets Reward 10 Pioneering States. Who's Next?

carbon_378x235A handful of states are already proving that economic growth and environmental protection can go hand in hand – and they’re using market forces, price signals and economic incentives to meet their goals.

These results are particularly salient as states consider how to comply with the U.S. Environmental Protection Agency’s plan to limit dangerous pollution from power plants.

So let's take a closer look at what's happening on our two coasts.

California: 4% cut in emissions, 2% growth

California’s landmark cap-and-trade program is closing out its second year with some strong results. Between 2012 and 2013, greenhouse gas emissions from the 350+ facilities covered by the program dropped by 4 percent, putting California solidly on track to meet its goal to cut emissions to 1990 levels by 2020.

During the same period, the state’s gross domestic product jumped 2 percent.

Read More »

Posted in Cap and trade, Climate, General, Global Warming Solutions Act: AB 32| Leave a comment

The Results Are In: 2013 Data Shows Capped Emissions are Down

rp_KHK-picture-200x300.jpgYesterday, millions of votes were tallied across the country and meticulously recorded to determine who would make up the nation’s next group of elected leaders. At noon yesterday, in the midst of this election activity, the California Air Resources Board (CARB) released a report of its own careful counting; not of votes, but of 2013 greenhouse gas emissions, collected under California’s Mandatory Greenhouse Gas Reporting program. Under this program, California’s largest polluters across all sectors are required to report their emissions and have them checked by a CARB-accredited verifier.

Covered emissions decrease

Today's report revealed that emissions currently covered by the state’s cap-and-trade program decreased by almost 4% to 145 million metric tons (MMT) of CO2E. This is 11% under California’s stringent cap of 162.8 MMT for 2013, indicating that the state is on track to reduce emissions back to 1990 levels by 2020. Complementary policies established under AB 32, such as the Renewable Portfolio Standard and the Low Carbon Fuel Standard, are almost certainly playing a significant role in keeping emissions down. Because these other measures drive reductions in emissions within the cap, the cap-and-trade program essentially functions as an insurance policy, guaranteeing the state meets or even beats its reduction targets.

California’s economy flourishes while companies comply with cap-and-trade

Total reported emissions, including those not covered under the cap-and-trade program, increased from 2012 to 2013 by a very slim tenth of a percentage point. Over this same period, California data shows that the state gross domestic product (GDP), a commonly used measure of the health of the economy, increased by over 2%. So, while the state’s economy grew, emissions did not grow proportionally with it, showing that it is possible to break the link between economic output from emissions output. Job growth in California throughout 2013 was also impressive, beating the national average.

 In addition to reporting emissions every year, regulated polluters must also surrender some emissions allowances each year. Yesterday, covered businesses did this for the first time, turning in enough allowances to account for 30% of their 2013 emissions. ARB confirmed that they saw 100% compliance with this surrender requirement, showing that businesses are ready and able to incorporate cap-and-trade obligations into their regular business practices.

Sights set on post-2020

As significant progress is being made towards the state’s 2020 goals, focus is beginning to turn to California’s ambitious long-term target: to reduce emissions down to 80% below 1990 levels by 2050.   To achieve this, CARB, the Governor's office, and some members of the legislature are calling for a midterm target to keep the state on a path to deep reductions.  Next year, we will take another important step towards this goal when transportation sector emissions, representing 38% of state GHG pollution, are regulated under the cap-and-trade program.

Today's results show that, as we prepare for these critical next steps, California has a strong foundation to build on with its cap-and-trade program. For more in-depth analysis of the emissions data released today, look out for EDF’s second annual report on California’s cap-and-trade program in January 2015.

Posted in Cap and trade, Climate, General, Global Warming Solutions Act: AB 32| Comments closed

How California’s Climate Policy is Saving the Forest and Preserving a Way of Life

rp_ca_innov_series_icon_283x204.jpgEDFs Innovators Series profiles companies and people across California with bold solutions to reduce carbon pollution and help the state meet the goals of AB 32. Each addition to the series will profile a different solution, focused on the development of new technologies and ideas.

Although the Yurok Tribe is the largest Native American tribe by membership in California, it has struggled for centuries to keep hold of its ancestral land – an integral part of the Tribe’s livelihood. As European settlers moved in, the Yurok culture of living in unison with nature was rapidly and repeatedly challenged, as their land was taken and the natural ecosystems on which they depend were disrupted. In the New World economy that emerged, a person could make money from this acquired land in one of only three ways. The first was by cutting down the trees to harvest timber. The second was by cutting down the trees to create farmland. The third was by selling the land, most likely to someone who was hoping to cut down the trees for one of the first two purposes.

This story has played out countless times across the world, but California’s cap-and-trade program is changing the existing paradigm by creating a fourth way to derive revenue from forestland through the creation of an active carbon offsets market. The California Air Resources Board (CARB) has approved five types of offset protocols for use in cap and trade, one of which is for U.S. forestry projects. This offset protocol gives forest landowners that meet stringent certification criteria a financial incentive to keep sustainable inventories of trees, and their carbon, on the land as opposed to cutting and hauling it all away. Companies regulated under the cap-and-trade program may purchase certified offset credits to account for a small percentage of the greenhouse gas pollution they produce. In this way, offsets can provide valuable opportunities to cut pollution while also creating valuable sources of revenue for landowners.
Read More »

Posted in California Innovators Series, Ecosystem Restoration, Global Warming Solutions Act: AB 32| Comments closed

Many Roads, One Destination: Action on Methane Emissions from Oil and Gas

By: Sean Wright, Senior Analyst, Corporate Partnerships

Vented Gas From Oil And Gas Storage Tank Visible Through Infrared CamreaEarlier this week the Center for American Progress held an event to raise awareness about the impacts of methane. “Opportunities for Curbing Methane Pollution” brought together representatives from a wide spectrum of backgrounds: state and federal policy experts, environmental advocates, and labor. While each had their own reasons, be them safety, jobs, health, climate, all agreed that reducing methane emissions from the US oil and gas sector was both critical and possible. That sentiment was captured nicely by Judi Greenwald from the Department of Energy:

“For most people it’s primarily about methane and… these greenhouse gas reductions, but I think there are a lot of other [policy] drivers. In some instances it’s really the safety benefit that’s most important…. [And] there are a lot of other reasons to do this. So you get agreement on actions, but you might actually not get agreement on each [policy] driver.”

Reducing methane emissions is good for the climate

Carol Browner, Senior Fellow at the Center for American Progress and former Administrator of the Environmental Protection Agency, offered opening remarks during which she said methane is a “very serious climate problem” because of its potency as a greenhouse gas. Methane is 84 times more potent than carbon dioxide over a 20 year time frame and short-term climate forcers like methane will drive a significant portion of the climate change we experience in our lifetime. Read More »

Posted in Methane, Natural Gas| Comments closed

Bridging the Credibility Gap: The Oil Industry’s New Anti-Cap-and-Trade White Paper

rp_erica-morehouse-287x377-228x3001.jpgMore Americans, these days, understand the threat climate change presents in the present and in the future, and support taking action. Over 64 percent of Americans and 67 percent of Californians support curbing carbon pollution from existing power plants which the Environmental Protection Agency (EPA) is proposing to do through the Clean Power Plan. The EPA's proposal would set specific reduction targets for each state. In California and other states that are already acting to reduce climate pollution, the early assessments seem to be an upbeat "yes, we can meet those targets and probably exceed them." You wouldn't know that after reading a recent white paper released by Latham Watkins recently on behalf of the Western States Petroleum Association (WSPA), though.

The white paper purports to identify "design flaws" in California's cap-and-trade program. Some of the technical adjustments to the cap-and-trade program suggested in this paper are worthy of careful consideration. In fact, some have been addressed in part or are being considered through the regulatory process at the Air Resources Board. So there doesn’t seem to be any real reason to sound the alarm bells on California’s program at this point in time. Read More »

Posted in Cap and trade, Clean Energy, Global Warming Solutions Act: AB 32| Comments closed
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    How California can leverage market-based environmental policies to revitalize its economy, protect its quality of life and retain a leading edge in global innovation.

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