Category Archives: Business

Clean Energy Pioneers: Building a Stronger Western Economy

By | Published: June 25, 2010

This post was written by Dan Grossman, Rocky Mountain Regional Director and Senior Counsel to the Land Conservation and Wildlife Program at the Environmental Defense Fund.

Westerners are pioneering a new frontier of economic opportunity through homegrown clean energy solutions. The Clean Energy Pioneers website chronicles the people, businesses and communities across the intermountain West who are laying the foundation for the nation’s clean energy economy.

A new publication out this week, Clean Energy Pioneers: Building a Stronger Western Economy [PDF], compiles some of these stories. Here are just a few:

The release of these inspiring stories coincides with the Western Governors’ Association annual meeting this weekend, where the governors will be gathering to celebrate “100 Years of Common Ground” in working together to protect the region’s natural resources.

Not only will clean energy conserve our natural resources and improve our air quality, it will also boost our local economies and strengthen our energy security.  According to Rich O’Connell, Director of the Logan County, Colo. Economic Development Corp and one of the pioneers quoted in the report, “Wind energy generates income for families and it grows the tax base to build roads, bridges, schools and social services.”

The West is investing in its future by establishing clean energy education and training programs at community colleges to help create the workforce of tomorrow.  New Mexico and Colorado are each home to over a half dozen of such educational centers.

As Tyson Ramseier, a pioneer featured in the report who will graduate in May 2011 from the Wind Energy Technician program at Colorado’s Northeastern Junior College, so cogently put it,

“[Renewable energy] will not only improve the economy by generating cleaner and cheaper electricity, but it also provides jobs as well.”

Clean Energy Pioneers:  Building a Stronger Western Economy complements the Clean Energy Pioneers multimedia project documented by the Rocky Mountain Farmers Union, Western Resource Advocates and Environmental Defense Fund.

Download Clean Energy Pioneers: Building a Stronger Western Economy [PDF].

Also posted in Greenhouse Gas Emissions, Jobs, News, Voices | Comments closed

Hail to the Chief, Indeed: President's truck order will bring fuel-saving technologies to scale

By | Bio | Published: May 25, 2010

This was originally posted on the Innovation Exchange blog.

There is no question that tools exists today to significantly reduce fuel consumption by medium and heavy-duty trucks. The recent National Academy of Sciences’ report on reducing emissions from these vehicles explored this in-depth as did another recent report from NESCAUM. The key question is: can we deploy these tools at an acceptable cost?

The answer is closer to “yes” than ever before, thanks in part to President Obama’s statement last week instructing the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA) to develop rules to reduce emissions from medium and heavy-duty trucks – which consume over a quarter of the nation’s liquid fuels.

The most advanced of our fuel-saving tools, such as the hybrid system for medium-duty trucks, face a significant upfront cost barrier. While these systems can payback over the lifetime of the vehicle, the ROI timeline is too extended for most businesses to justify the cost without external incentives. Other, more incremental strategies such as single-wide tires face cultural and cost barriers as well. The resulting upfront capital cost versus long-term operating savings conundrum slows the adoption of these tools and delays emission reductions.

Fuel-saving components need to be produced at a large enough scale to spread out the fixed costs over time while simultaneously bringing the dollar cost down. By creating a nationwide standard for greenhouse gas emissions, the President has put us on a path to finally reach this scale. Imagine that instead of spreading the fix costs of developing and producing medium-duty hybrid powertrains, or single wide tires over a few hundred vehicles a year, these costs are spread over tens of thousands of trucks annually. The ROI for any one unit will instantly be much more attractive. This is what can happen with a strong federal rule.

How will this impact the business community? Consumers, shippers and carriers will be better off with more efficient, cleaner trucks. Operating costs will be lower and less exposed to fuel price volatility. The increased capital costs should be manageable with the advantages of scaled economies. Some of the increased upfront cost will likely be recouped through hire residual values too.

Of course, technological improvements alone aren’t sufficient. There remain many opportunities to reduce emissions through better operational practices, particularly for freight. From reducing empty backhauls, cutting idling, dropping curb weight, decreasing packaging and improving trucking loading, every truck trip can get more done. Some trips can be avoided all together or simply moved to more efficient modes of transportation.

Medium-and-heavy duty trucks will continue to play a vital role as we transition into a carbon constrained world. These trucks are needed to deliver food and beverages to restaurants and stores, drop off packages at homes and offices, and move goods across the nation. However, they will use less fuel for each of these actions. That’s a good thing for the environment, our pocketbooks and energy security.

Also posted in Climate Change Legislation, News, Science, Vehicles and Tailpipe Emissions | Comments closed

Find your way with our new Roadmap to Corporate Green House Gas Programs

By | Bio | Published: April 5, 2010

Want to start cutting your company's greenhouse gas emissions but feeling overwhelmed by your options?  Here at EDF we know how you feel.  That’s why we put together a new Roadmap to Corporate GHG Programs [PDF], a step-by-step guide to help companies develop a strategy for GHG emissions that can lead to credible and lasting reductions.  The Caution! sidebars highlight some of the trickier parts – such as how to avoid green-washing scams.

Read more on EDF's Innovation Exchange blog, and let us know if we've missed any.  You'll be glad you did!

Also posted in Greenhouse Gas Emissions | Comments closed

Hall of Fame Goalie Mike Richter Calls for Action on Climate Change

By | Published: March 2, 2010

A new voice has joined the chorus demanding action on climate change — one that will be familiar to any winter sports fans reading this.

Hockey legend Mike Richter says he worries that future generations of children won't be able to skate on frozen ponds the way he did when he was young.

The Hall of Fame goalie, who led the New York Rangers to a Stanley Cup victory in 1994 and helped the U.S. Olympic team win a silver medal in Salt Lake City in 2002, just wrote an op ed about climate change that ran in the Buffalo News, the Pittsburgh Tribune Review and the Juneau Empire, among other papers.

In it, he says:

I wish we could turn back the clock. I want my boy's generation to enjoy the same rich opportunities as I had. I worry for the future of the game that I love. I worry for the future of our economy, our national security and our planet.

Richter, who has spoken out about other environmental issues in the past, has also talked about climate change in radio interviews he did during this year's Winter Olympics. You can hear some of his comments on Philadelphia's WPEN radio.

Richter was also a guest speaker at a recent Business Advocacy Day, when 200 small business leaders from around the country came to Washington to lobby for a strong clean energy and climate bill. Check out this picture of Richter talking to the audience of business pioneers (and EDF staffers who worked on the event).

Also posted in Advocates for Change, Links and Quotes | Comments closed

China Takes the Lead on Clean Energy Jobs: How the U.S. Can Still Win

By | Published: February 26, 2010

A majority of Americans are worried that the United States’ role in the world economy will diminish in the coming years, according to a new Washington Post-ABC News poll.

But the truth is, China is already beating the U.S. to clean energy jobs.

China is quickly becoming the global powerhouse in clean energy manufacturing and innovation, dwarfing the efforts of America. Backed by huge investment and an industrial policy bigger than the world has ever seen, China has become the worldwide leader in new energy technology markets while the U.S. is quickly falling behind.

But we can match the scale of China’s centralized industrial policy by fully deploying the engine of American prosperity: our marketplace. It is the only tool we have with the scale and capital to compete with China.

If the U.S. puts a limit on carbon pollution from dirtier sources of energy, we will send a clear signal to the marketplace that will unleash a massive wave of private investment in clean energy that would allow us to compete with the Chinese.  Only when American policy creates a profit motive for investors, inventors and entrepreneurs, will we have a chance to win the race.

President Obama made that case to the Business Roundtable. He called for a price on carbon to kick-start America’s efforts to win the clean technology race.

Key excerpts of the President remarks:

A competitive America is also an America that finally has a smart energy policy.  We know there is no silver bullet here – that to reduce our dependence on oil and the damage caused by climate change, we need more production, more efficiency, and more incentives for clean energy.

But to truly transition to a clean energy economy, I’ve also said that we need to put a price on carbon pollution …

What we can’t do is stand still.  The only certainty of the status quo is that the price and supply of oil will become increasingly volatile; that the use of fossil fuels will wreak havoc on weather patterns and air quality.  But if we decide now that we’re putting a price on this pollution in a few years, it will give businesses the certainty of knowing they have time to plan and transition.  This country has to move towards a clean energy economy.  That’s where the world is going.  And that’s how America will remain competitive and strong in the 21st century.

If Congress puts a limit on carbon pollution, the U.S. will compete with China. If we don’t, there’s no reason to believe the future will look any different than the facts we see today. Those facts are listed below, or you can download and print EDF's one-page handout version [PDF].

China’s Climate and Energy Policies Create an Investment Advantage

  • In 2009, China dedicated $440 billion in government funding solely to clean energy. –AFP, 5/24/2009
  • Renewable energy industries in China reached 1.12 million jobs in 2008 and are increasing by 100,000 a year. –NYT, 1/31/2010
  • China is already moving aggressively on measures it promised at Copenhagen, including closing an additional 10 gigawatts of inefficient, polluting coal plants. – Washington Post, 1/7/2010
  • In December 2009, China passed a law requiring its electric grid companies to buy any and all electricity generated from renewable sources. – WSJ, 12/27/2009

China Goes into Wind Power Overdrive in 2009

  • Five years ago, there was almost no Chinese presence in the wind manufacturing industry, and now China hosts the world’s largest wind market with installed capacity of over 25,000 MW, a significant increase from 2008, when China was home to about 12,000 MW. –  GWEC, 2/3/2010
  • As the world’s wind power capacity grew by 31% in 2009, China was responsible for one-third of the additions, experiencing industry growth of over 100%. – GWEC, 2/3/2010

The Saudi Arabia of Solar

  • China has leapfrogged the West in the last two years to emerge as the world’s largest manufacturer of solar panels. – NYT, 1/31/2010
  • Already home to one-third of global solar manufacturing capacity, Chinese competition has reduced global solar prices by 30% and is forcing rivals to shift production facilities to China: U.S. Evergreen Solar Inc. is moving its assembly line from Massachusetts to China, while BP PLC's solar unit said it would stop output in Maryland and rely on Chinese suppliers instead. – WSJ,  12/15/2009
  • Responding to domestic demand, Applied Materials – the world’s largest supplier of equipment to the solar photovoltaic industry – opened the world’s largest private sector solar research center in Xian, China in October 2009. – TIME, 11/30/2009

Green Technology Investment

  • Batteries and Electric Cars – China is also leading in advanced vehicle and battery technology. Chinese firm BYD introduced the world’s first plug-in hybrid vehicle , China’s production of lithium ion batteries had accounted for 41 percent of the global market by 2008, and the number of battery companies in China increased from 455 to 613 between 2001 and 2004. – Breakthrough Institute, 11/09
  • Transmission — China is an emerging world leader in ultra-high-voltage, or UHV transmission technology, with more than 100 domestic manufacturers and suppliers.  The State Grid Corporation will invest $44 billion through 2012, and $88 billion through 2020 in building UHV transmission lines. – Center for American Progress, 6/4/2009

Also posted in Business - General, Climate Change Legislation, Economics, International, Jobs, Policy | Comments closed

Why Walmart's Carbon Commitment Can Make Such a Difference

By | Bio | Published: February 25, 2010

Archimedes said "Give me a place to stand, and I shall move the earth," when explaining the principle of levers.

Leverage is the big news about Walmart's announcement today. The company has committed to reducing 20 million metric tons of carbon pollution from its products lifecycle and supply chain over the next five years. That's equivalent to the annual greenhouse gas emissions from 3.8 million cars.

So is Walmart moving the earth? No, not yet. But this is precisely the kind of innovative approach to reducing carbon pollution that we need right now. Environmental Defense Fund worked closely with Walmart to craft this goal and project that makes the most of what Walmart can uniquely do to cut carbon pollution across the globe.

This commitment is bold because:

  • Walmart's supply chain is where the action is. It's the biggest possible lever that Walmart could bring to the table. Walmart will work with suppliers to reduce their emissions – which they otherwise might not do – resulting in positive ripple effects around the globe.
  • It prioritizes the biggest opportunities. Walmart is looking at the products that create the most carbon emissions across their lifecycles – as well as products that are top sellers – and focusing on those first.
  • It gets carbon pollution reductions now. There’s no waiting for the United States or the world to act.
  • It will likely reach ten of thousands of companies around the globe – companies that would not be required to reduce emissions by national or international regulatory proposals but will greatly benefit from energy efficiency efforts.
  • It adds to a drumbeat of clear messaging to suppliers from Walmart that they need to reduce carbon pollution. This commitment follows the Sustainability Index, Product Innovation work with Private Brands and other initiatives.
  • It’s good for business and good for customers. This project is about Walmart and its suppliers working hand-in-hand to find ways to drive carbon and energy – and cost – out of the supply chain. Walmart customers care about America's energy future. They see tangible value from carbon reductions every time a lower carbon product costs less or uses dramatically less energy once they get it home.

Two kinds of change: Simple but big and transformational
In this project we will look at two different kinds of opportunities. The first opportunities are simple and relatively small changes that, when coupled with Walmart's scale, become big reductions. The other opportunities are more transformational, where we dive deep and engage an industry or consumers to fundamentally change products or their uses.

DVD packaging is an example of a simple change that adds up because of Walmart's scale.

A couple of years ago, Walmart asked one of its DVD suppliers – 20th Century Fox – to be a part of a pilot for our project. They made simple changes to make DVD packaging lighter, which cut energy use by 28% and reduced the lifecycle carbon emissions of DVDs sold to Walmart by about 25,000 tons. It had a big multiplier effect, too, because the lighter packages were also used on DVDs sold at other stores, and the change evolved from movies to video games and software too. Small change – big cumulative effect.

One of the other pilot projects Walmart tried was milk. This is an example of a project that falls into the category of industry transformation. Agriculture contributes 8% of the total U.S. carbon footprint, and the dairy industry is a significant contributor. At Walmart's request, several dairy suppliers analyzed the costs and emissions associated with a gallon of milk, from dairy farm to distribution center. By gathering and looking at the data, we found many opportunities to reduce emissions – at farms through changes in fertilizer and manure management, at dairy processing facilities through improved energy efficiency and even in the product itself, such as making milk shelf-stable.

Some of these changes are now underway at one of Walmart's suppliers, Dean Foods. We're estimating that this one supplier alone can reduce CO2 emissions by 300,000 tons overall by 2015. If these changes were adopted throughout the dairy industry, we estimate that we could see over 2 million tons of greenhouse gas reductions in the same period.

Will this be easy? To put it simply: No. Looking deep into the supply chain and across product lifecycles for carbon pollution reduction wins is uncharted territory. The cross-organizational team working on this project has spent months creating a detailed guidance document about what can count towards Walmart's goal, as well as how reductions should be quantified and confirmed. We're committed to making this project as transparent as possible and will be publicly releasing the guidance document within a month for anyone who wishes to comment or share ideas.

Walmart's action today won’t eliminate the need for a national and global cap on carbon pollution. These caps are absolutely necessary. We can't solve our pollution problems without them. But negotiations take time, and while the clock keeps ticking, carbon pollution keeps building up in our atmosphere. Today, Walmart has shown that is it not waiting to act to reduce global carbon pollution.

Read more about Walmart's commitment and view the webcast of the announcement.

Originally posted on Environmental Defense Fund's Innovation Exchange blog.

Also posted in News | Comments closed

James Murdoch: A New, Conservative, Clean Energy Champion

By | Published: December 4, 2009

The energy and enviro communities are all buzzing about today's Washington Post op-ed by James Murdoch, the head of News Corporation's Europe and Asia divisions, and son of its founder, Rupert Murdoch.

The op-ed, "Clean energy conservatives can embrace", calls for a capping carbon pollution and supports market-based incentives for clean energy. If you haven't seen it yet, it's worth reading.

Also posted in Economics, Links and Quotes, News | Comments closed

As the Chamber Turns: Update on U.S. Chamber vs. Climate Science

By | Published: October 8, 2009

The Chamber of Commerce story is all over the media again today, which means we get to keep using the phrase "Scopes monkey trial" almost a century after it should have been old news.

In yesterday's blog post we told you about Apple "resigning .. effective immediately" from the Chamber because of the Chamber's position on global warming policy. Apple became the fifth big company to leave either the Chamber or its board of directors because of inflammatory comments about the underlying truth of climate science (the others are Exelon, PG&E, PNM and Nike).

Apple's departure touched off a slew of articles and editorials around the country, all pointing out that the Chamber has gotten itself into a public relations hole — and most suggesting that it follow the advice of the old proverb and stop digging.

Here's a sample of the reactions:

And the winner in the pop-culture reference department is Marc Gunther, writing for the Energy Collective, who compares the Chamber to David Letterman, because the have both "really, really embarrassed themselves."

But the Chamber is apparently not interested in the above advice. Instead, it is digging in and has launched counterattacks against Apple and some of its other critics, including the Boston Globe.

Chamber CEO Tom Donohue told reporters, including Politico's Lisa Lerer today:

The only regrets we have is that we maybe have not always used the right language. We don’t have regrets about our position and we don’t intend to change it.

Donohue blamed the resignations on an "orchestrated pressure campaign" by environmental groups. He also said:

What we decided to do is we’re going to let the scientists argue the science.

Of course, the scientists aren't actually arguing anything. The vast majority of scientists long ago determined that climate change is real, and is a really big threat to us all. But it is generous of Donohue to cede the world of science to the scientists, I suppose.

On a related note, Environmental Defense Action Fund has decided to join the ranks of the vast green-wing conspiracy that Donohue blames for his problems. Check out these new ads that we're running with our friends at NRDC.

Donohue would no doubt see this as part of an "orchestrated pressure campaign." But much as we'd like to take credit for making five huge corporations leave an organization whose goal is to re-enact one of the most infamous trials in history — as the losing party, no less — we do have to point out that our ads are brand new, so those corporations quit the board all by themselves.

Posted in Business | Comments closed

Apple Joins List of Former U.S. Chamber Members

By | Published: October 6, 2009

The U.S. Chamber of Commerce continues to make a monkey of itself over its "Scopes trial" comment, as well as its general policy on climate change.

The latest chapter in the ongoing saga comes from high-tech powerhouse Apple, which announced that it is resigning from the Chamber effective immediately. Apple says it objects to "the chamber’s recent comments opposing the E.P.A.’s effort to limit greenhouse gases." Those comments include threatening litigation.

In a letter to chamber president Thomas Donahue, Apple wrote:

Apple supports regulating greenhouse gas emissions, and it is frustrating to find the chamber at odds with us in this effort.

You can read Apple's entire letter [PDF] here.

But the bad news for the Chamber doesn't end there. One of its chapters is now distancing itself from the national organization. That item comes from the San Jose Mercury News editorial "U.S. chamber is a dinosaur on climate change".

The paper says the San Jose Silicon Valley Chamber of Commerce has "had discussions with the U.S. Chamber and the California Chamber as well as PG&E and several other members."

The president of the San Jose Silicon Valley chapter solidly opposed her national counterpart's comments, saying:

There isn't anyone who doesn't realize that climate change is a man-made phenomenon and something we need to address and address quickly.

PG& E, of course, has already resigned from the chamber because of its climate policy — as have PNM Resources and Excelon (and now Apple).

Nike withdrew from the Chamber's board of directors, but hasn't given up its membership altogether.

Also posted in News | Comments closed

Nike Leaves Board of U.S. Chamber — But Keeps Membership?

By | Published: October 1, 2009

The U.S. Chamber of Commerce continues to rack up bad press because of its knee-jerk opposition to climate change legislation. (If you want the whole sordid history, read our earlier post.)

The latest news: Nike announced Wednesday that it is resigning its position on the Chamber's board.

It's not dropping its membership in the Chamber altogether — at least, not yet. But Nike's statement suggests a long and happy future together may not be in the cards.

The statement begins with:

Nike believes US businesses must advocate for aggressive climate change legislation …

It continues ..

…we fundamentally disagree with the US Chamber of Commerce…

and it ends rather ominously:

Moving forward we will continue to evaluate our membership

Nike's statement does make clear that, for now, they believe they'll be better advocates for climate change legislation by working within the Chamber. But if the Chamber continues to push its extreme and inflexible views, Nike could become the fourth big company to walk away from the group — following in the fleeing footsteps of Exelon, Pacific Gas & Electric, and PNM Resources.

A fifth company, Johnson&Johnson, also supports climate change legislation and has publicly expressed its displeasure with the Chamber's stance the issue. The company hasn't taken any steps away from the Chamber… yet.

The New York Times has more on the story of Nike's resignation.

Also posted in News | Comments closed