Business

Press Release: CH2M HILL and DuPont Join Growing Corporate Effort to Address Climate Change

For Immediate Release:
October 29, 1998

Contact: Kelly Sullivan (Pew Center), (202) 289-5900 
             Andre Armstrong (CH2M HILL),  (303)-713-2425 
             Lori Fenimore (DuPont), (302)-773-0220

CH2M HILL and DuPont Join Growing Corporate Effort to Address Climate Change : Move Signals Growing Shift in Climate Change Debate

WASHINGTON, D.C. — The Pew Center on Global Climate Change announced today that CH2M HILL, a global leader in sustainable design, construction and infrastructure management, and DuPont (NYSE: DD), a global research and technology-based company, are joining the Pew Centerís growing efforts to address the problem of climate change.

As new members of the Pew Centerís Business Environmental Leadership Council, CH2M HILL and DuPont join 18 other companies, many of which rank in the Fortune 500. The group represents a diverse group of corporate interestsincluding auto manufacturing, energy and major appliance and technology producers.

"The decision by DuPont and CH2M HILL to join our effort continues to signal a growing shift in the climate change debate. Although the businesses of these two companies may differ, they recognize that there are solutions to climate change that can keep both the environment and the economy healthy," said Eileen Claussen, executive director of the Pew Center on Global Climate Change.

The Pew Center was established in May 1998 by the Pew Charitable Trusts, one of the nation's largest philanthropies and an influential voice in efforts to improve the quality of America's environment. The Pew Center is conducting studies, launching public education efforts, promoting climate change solutions globally and working with businesses to develop marketplace solutions to reduce greenhouse gasses.

As with the current members of the Business Environmental Leadership Council, both DuPont and CH2M HILL have a significant stake in the climate change debate. CH2M HILL helps public and private clients worldwide realize a greater return on their investment in energy and environmental technologies. In 1991, DuPont voluntarily stepped forward to address the problem of global climate change and is on track to achieve a 50% reduction in greenhouse gas emissions for operations by the year 2000.

"DuPont is pleased to be joining the Business Environmental Leadership Council and looks forward to playing an active role," said Dr. Paul Tebo, Vice PresidentSafety, Health and the Environment at DuPont. "Global climate change is a complicated issue that must be dealt with responsibly. The Pew Center serves an invaluable purpose by creating a positive, constructive forum in which we in the business community can act to solve this problem."

"There can be no more important work over the next decade than joining with like-minded businesses to address global climate change in ways that heighten the competitiveness of U.S. industry," said James J. Ferris, president CH2M HILL Energy, Environment & Systems. "We expect the engineering, construction and management skill sets we bring to the Business Environmental Leadership Council to add a unique perspective to this already impressive group."

All members of the Business Environmental Leadership Council are committed to the founding principles of the Pew Center:

First, we accept the views of most scientists that enough is known about the science and environmental impacts of climate change for us to take actions to address its consequences.

Second, businesses can and should take concrete steps now in the U.S. and abroad to assess their opportunities for emission reductions, establish and meet their emission reduction objectives, and invest in new, more energy-efficient products, practices and technology.

Third, the Kyoto agreement represents a first step in the international process, but more must be done both to implement the market-based mechanisms that were adopted in principle in Kyoto and to more fully involve the rest of the world in the solution.

Fourth, we can make significant progress in addressing climate change and sustaining economic growth in the United States by adopting reasonable policies, programs and transition strategies.

"We applaud DuPont and CH2M HILL for stepping forward and demonstrating there are steps businesses can and should be taking to address climate change. The Pew Center is looking forward to working with government, industry and the public to find fair and equitable solutions to this very serious problem," said Claussen. Claussen is the former U.S. Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs.

The additional members of the Business Environmental Leadership Council include: Air Products and Chemicals, Inc.; American Electric Power Company; Baxter International Inc.; Boeing; BP America; Enron Corp.; Holnam Inc.; Intercontinental Energy Corporation; International Paper; Lockheed Martin; Maytag; The Sun Company; 3M; Toyota; United Technologies; U.S. Generating Company; Weyerhaeuser and Whirlpool.

More information about global climate change and the Pew Centerís activities can be found at their web site, located at www.c2es.org.

Early Action & Global Climate Change: An Analysis of Early Action Crediting Proposals

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Early Action and Global Climate Change: An Analysis of Early Action Crediting Proposals

By:
Robert R. Nordhaus and Stephen C. Fotis

Press Release

Download Entire Report (pdf)

Foreword

Eileen Claussen, Executive Director, Pew Center on Global Climate Change

The challenge of our generation will be addressing climate change while sustaining a growing economy. We need to take concrete actions to reduce emissions, both here and abroad. The sooner we begin, the more likely we are to succeed in stabilizing atmospheric concentrations at a level that will prevent dangerous anthropogenic interference with the climate.

This report, which analyzes proposals to credit early, voluntary actions to mitigate greenhouse gas emissions, is the first in a series to be published by the Center. The Pew Center was established in 1998 by the Pew Charitable Trusts to bring a new cooperative approach and critical scientific, economic, and technological expertise to the global climate change debate. Some U.S. companies have indicated support for early action programs in keeping with their desire to take immediate action to reduce greenhouse gases and their need for assurance that such actions will be rewarded and not punished.

This report addresses the issues that policy makers will face in designing a domestic early action program, analyzes current proposals, and suggests a set of principles to guide an effective program. It suggests that, regardless of any eventual international framework, the U.S. can take steps to credit reductions in gases now, and therefore encourage and reward companies that act to minimize their emissions. The longer we wait to address climate change, the more it is likely to cost—both environmentally and economically. The Pew Center concludes:

  • The cost of delay is significant. Steps taken now represent an investment that will pay environmental and economic dividends into the future. Conversely, continued inaction will result in greater environmental challenges and increased costs down the line.
  • U.S. Leadership is imperative. Since the U.S. has both the highest greenhouse gas emissions and per capita income, implementing a voluntary early action program demonstrates to the world our commitment to address the problem of climate change.
  • Leadership must start with Congress. Congress must provide the legislative framework to encourage early action.

The Pew Center and its Business Environmental Leadership Council believe climate change is serious business. Our effort is founded on the belief that enough is known about the science and environmental impacts of climate change for us to take action now to address its consequences. Awarding credit for early action is an important first step.

Executive Summary

The ultimate objective of the Rio Convention, which the United States ratified in 1992, is to stabilize atmospheric concentrations of greenhouse gases (ghg) at levels that will prevent dangerous anthropogenic interference with the climate system. Such stabilization will require significant reductions in ghg emissions by the United States and other countries. One mechanism proposed for encouraging U.S. companies to begin reducing ghg emissions now is an early action crediting program. Such a program would provide U.S. companies with credits for ghg reductions achieved prior to the year 2008 (i.e., before the first budget period under the proposed Kyoto Protocol) that would be usable by those companies for compliance with any future domestic ghg regulatory program.

This paper analyzes the legal, policy, and technical issues that policy makers may wish to consider in designing an early action crediting program. Although many of these issues are quite complex and cannot be fully addressed with simple and uniform crediting rules for all industry sectors, the paper attempts to formulate a set of general principles to guide policy makers in fashioning an administratively workable and effective program. The paper begins with a review of current U.S. efforts to mitigate ghg emissions through voluntary actions and programs and provides an analysis of five early action crediting proposals publicly available as of July 1998.

Voluntary GHG Mitigation Efforts in the United States. The Rio Convention's non-binding goal for developed countries was to return ghg emissions to 1990 levels by 2000. To meet this goal, the Clinton Administration developed the Climate Change Action Plan (CCAP), which outlined a portfolio of about 50 ghg mitigation actions. The plan applied to all sectors of the economy that emit ghg emissions and was intended to foster voluntary partnerships with the private sector and local governments. Generally speaking, the CCAP initiatives were designed to provide information and tools to encourage participants to voluntarily undertake physical or operational changes that will reduce ghg emissions. Although they demonstrate that industry and government can work together to achieve cost-effective ghg reductions, the CCAP initiatives have not achieved the level of reductions necessary to return U.S. emissions to 1990 levels, as contemplated by the Rio Convention.

Review of Design Issues and of Current Extant Early Action Crediting Proposals. The paper provides an analysis of the legal, policy, and technical issues raised in the early action crediting proposals developed by the Environmental Defense Fund, the Coalition to Advance Sustainable Technology, the Center for Clean Air Policy, Resources for the Future, and Niagara Mohawk Power Corporation. Key issues include the legal framework for the program, source of credits, flexibility, actions eligible for credit, and technical design of the program.

Principles for Designing An Early Action Program. Based on the review of these issues, the paper identifies the following general principles that may be useful as a guide to policy makers in fashioning a workable and effective program:

1. Provide a predictable credit mechanism and clear legal framework for the program. The principal purpose of an early action crediting program is to encourage voluntary ghg reductions in the near term. The program should provide a substantial and reliable incentive that will stimulate immediate efforts to slow down the increase of, and, ultimately, to decrease, ghg emissions levels in the United States. For such an incentive to be effective, participants must know in advance the credits they will earn for particular ghg reductions or sequestration activities and be given clear assurances that they possess a legally enforceable right to receive earned credits. Existing law does not provide the legal framework to give participants that right. For that reason, the crediting mechanism should be clearly delineated by statute or in agreements authorized by statute.

2. Keep the program simple and flexible. Any early action crediting program will be voluntary. The extent of participation in the program will depend, among other things, on whether potential participants perceive benefits of participation to exceed the costs of complying with the requirements of the program. Simplicity and flexibility are key components of minimizing transaction and compliance costs. Because of the range of potential participants, the agency administering the program will need flexibility to tailor the program to the needs and circumstances of particular industries and companies. The program will also need the flexibility to encourage innovation and reward efficiency. The best mechanism for doing this is through agreements between the participants and the government that spell out the specifics of the crediting mechanism for that participant, or industry. Model agreements for particular industries may be useful tools in this regard.

3. Reward real reductions, not gaming. An early action crediting program takes ghg credits otherwise available to U.S. companies during the initial period of domestic ghg regulation and gives them to participants in the early action program as a spur to reducing ghg emissions before that initial period. It is important that credits be used to reward real net reductions in ghg emissions, rather than paper reductions. The program needs to incorporate safeguards that give the public and other emitters confidence that the system will not be gamed.

4. Provide some form of recognition of past voluntary ghg reductions. Voluntary ghg reductions achieved between 1990 and 1998 and reported to the federal government should be recognized either in the form of a baseline adjustment or as a direct credit. It is important to maintain the principle that companies will not be disadvantaged because of prior voluntary reductions. However, the reward for past mitigation efforts should be provided only to the extent that the ghg reductions are real, quantifiable, verified, and not double-counted.

5. Don't predetermine the eventual domestic regulatory program. An early action crediting program should be designed to operate within the framework of any likely domestic regulatory or tax program that might be fashioned to control domestic ghg emissions. This includes a range of regulatory options such as carbon taxes, direct regulatory programs, and marketable permit schemes (implemented through, for example, an auction or administrative allocation of allowances).

6. Don't make the early action crediting program contingent upon ratification of the kyoto protocol. The early action program should not depend upon Senate ratification of the Kyoto Protocol in its present form. Rather, it should be designed to operate in the context of whatever international control regime may eventually be adopted and ratified by the U.S.

7. Focus principally on domestic early action. The allocation of credits to the U.S. under Kyoto or any other international agreement is an asset that should be carefully husbanded for use by the U.S. economy. For that reason, the principal but not exclusive focus of the program should be on rewarding early domestic actions to mitigate ghg emissions. There are, however, a number of circumstances where credit for actions outside the U.S. should be considered.

8. Don't over-mortgage the U.S. ghg allocation. The Kyoto Protocol, if ratified, will not provide international credit for reductions attained prior to 2008 in developed countries. Early action credits for ghg reductions within the United States thus would have to come out of the U.S. first budget allocation under the Protocol. Careful consideration needs to be given to the impact of an early action credit program on the availability of credits to non-participants once domestic regulation commences, and the extent to which credit should be given for action outside the U.S.

 

 
 
 
 

 

Robert R. Nordhaus
Stephen C. Fotis
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Press Release: International Paper, Baxter International, Holnam Inc., and Air Products and Chemicals, Inc. Join BELC

For Immediate Release:
July 29, 1998

Contact:  Kelly Sullivan or Shannon Hunt
              (202) 289-5900

International Paper, Baxter International, Holnam Inc., and Air Products and Chemicals, Inc. Join New Effort to Solve Climate Change Problem

Move Signals Major Shift in Climate Change Debate

WASHINGTON, D.C. - The Pew Center on Global Climate Change announced today that International Paper, Baxter International, Holnam Inc., and Air Products and Chemicals, Inc. are joining the Pew Center's effort to combat the problem of climate change.

As new members of the Pew Center's Business Environmental Leadership Council, these companies join other Fortune 500 companies that represent a diverse group of corporate interests - including auto manufacturing, energy and major appliance and technology producers.

"The move by these new companies to join our effort represents a major shift in the climate change debate. There is no denying that there is now a legitimate and forceful presence in the center of this debate, which recognizes that there are solutions to climate change that can keep both the environment and the economy healthy," said Eileen Claussen, executive director of the Pew Center on Global Climate Change.

Launched in May of this year, the Pew Center on Global Climate Change was established with $5 million in support from one of the nation's largest philanthropies, The Pew Charitable Trusts. The Pew Center is conducting studies, launching public education efforts, promoting climate change solutions globally and working with businesses to develop marketplace solutions to reduce greenhouse gasses.

As with the current members of the Business Environmental Leadership Council, each of the new companies announced today has a significant stake in the climate change issue:

  • International Paper Company is one of the largest forest products companies in the world;
  • Baxter International is a global medical products and services company that focuses on critical therapies for life threatening conditions;
  • Holnam Inc. is one of North America's leading suppliers of cement and mineral components;
  • Air Products and Chemicals, Inc. is a global industrial gas and chemical company.

Together, the companies in the Business Environmental Leadership Council have combined revenues is excess of $370 billion.

"We applaud these companies for stepping forward and demonstrating there are steps businesses can and should be taking to address climate change. The Pew Center is looking forward to working with government, industry and the public to find fair and equitable solutions to this very serious problem," said Claussen. Claussen is the former U.S. Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs.

All members of the Business Environmental Leadership Council are committed to the founding principles of the Pew Center:

  • First, we accept the views of most scientists that enough is known about the science and environmental impacts of climate change for us to take actions to address its consequences.
  • Second, businesses can and should take concrete steps now in the U.S. and abroad to assess their opportunities for emission reductions, establish and meet their emission reduction objectives, and invest in new, more energy-efficient products, practices and technology.
  • Third, the Kyoto agreement represents a first step in the international process, but more must be done both to implement the market-based mechanisms that were adopted in principle in Kyoto and to more fully involve the rest of the world in the solution.
  • Fourth, we can make significant progress in addressing climate change and sustaining economic growth in the United States by adopting reasonable policies, programs and transition strategies.

The founding members of the Business Environmental Leadership Council include: American Electric Power Company, Boeing, British Petroleum, Enron, Intercontinental Energy Corporation, Lockheed Martin, Maytag, Sun Company, 3M Company, Toyota, United Technologies Corporation, U.S. Generating Company, and Whirlpool Corporation.

The Pew Center will run print advertising, beginning Thursday July 30th, in several national publications announcing the new members of the Business Environmental Leadership Council. The advertising will feature the prominent logos of the entire Business Environmental Leadership Council and end with the tagline: "Climate change is serious business - for all of us."

More information about global climate change and the Pew Center's activities can be found at their web site, located at www.c2es.org.

Press Release: United Technologies Announces Global Energy and Water Conservation Program

For Immediate Release:
July 14, 1998

Contact: Tom Andrea, 860-728-7980
             Scott Seligman, 202-336-7424

United Technologies Announces Global Energy and Water Conservation Program

HARTFORD - July 14, 1998 - United Technologies Corp. (UTC) announced today a comprehensive global conservation program that sets aggressive goals for the next decade.

Under the plan, UTC will reduce its energy and water consumption by 25 percent as a percent of sales by the year 2007.

The voluntary conservation plan is the centerpiece of the company's Environment, Health & Safety Progress Report 1997 issued today, and affects United Technologies facilities worldwide.

"This program establishes our environmental leadership position because it is a global, voluntary initiative involving 229 facilities in 36 countries and addresses both energy and water conservation," said Leslie Carothers, UTC's vice president, environment, health & safety.

The plan is the result of a UTC policy established in 1996 requiring its operating units to conserve natural resources in the design, manufacture, use and disposal of products and delivery of services.

The 1997 report sets baselines of energy and water use at UTC manufacturing sites and other key non-manufacturing sites worldwide.

Based on energy audits the company conducted at selected sites, the new energy and water conservation goals reflect the company's commitment to dramatically reduce greenhouse gas emissions at UTC's facilities worldwide.

"We, along with many others, recognize the substantial ambiguities and open questions in research on global climate change," said UTC's Chairman and CEO George David in the report. "But we believe also that the prudent course is to work to reduce greenhouse gas emissions."

Opportunities for reductions over the next 10 years include co-generation, fuel switching, lighting improvements, the usage of compressed air in manufacturing processes, and employee conservation awareness training. The reductions in water consumption at the targeted facilities will themselves contribute to reduced energy requirements, since each gallon of water used may generate energy demands for pumping, heating, chilling and treatment.

A global reporting structure established by the company in 1997 measures energy and water usage and conservation results; an electronic data base has been established and an intranet training module is being developed to share best management practices and provide useful sources of information for implementation.

United Technologies Corporation provides a broad range of high technology products and support services to the building systems, automotive, and aerospace industries. UTC's companies are industry leaders and include Pratt & Whitney, Carrier, Otis, UT Automotive, Sikorsky and Hamilton Standard.

Editor's Note: (UTC's Environment, Health & Safety Progress Report 1997 is available on line at www.utc.com.)

Press Release: Major Corporations Join Efforts to Solve Climate Change Problem

For Immediate Release:
May 7, 1998

Contact: Kelly Sullivan or Shannon Hunt
             (202) 289-5900

Major Corporations Join Efforts to Solve Climate Change Problem

New Pew Center on Global Climate Change Announces Major Advertising Campaign

Washington, D.C. - A number of Fortune 500 companies are joining forces in a new organization to combat climate change backed by $5 million in support from one of the nation's largest philanthropies, The Pew Charitable Trusts. Led by Eileen Claussen, the former U.S. Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs, the Pew Center On Global Climate Change will undertake studies, conduct public education, promote climate change solutions globally and work with businesses to develop marketplace solutions to reduce greenhouse gasses.

The Pew Center also announced the launch of its television and print advertising campaign. Featuring the logos of 13 prominent corporations, the ads convey their belief that solutions to the problem of climate change can keep both the environment and the economy healthy. The ads end with the tagline: "Climate change is serious business - for all of us."

Eileen Claussen, The Pew Center's Executive Director, said: "Climate change is one of our generation's greatest challenges. Instead of choosing between business and the environment, we want to draw on the ingenuity and expertise of all sectors to both address the climate change problem and sustain economic growth." Claussen promised the Center would bring a pragmatic and positive approach to the problem.

The Pew Center's Business Environmental Leadership Council reflects a diverse representation of corporate interests - including energy, auto manufacturing and major appliance and technology producers. Its founding members include: American Electric Power Company, Boeing, British Petroleum, Enron, Intercontinental Energy Corporation, Lockheed Martin, Maytag, Sun Company, 3M Company, Toyota, United Technologies, U.S. Generating Company, and Whirlpool Corporation. Together, these companies' combined revenues exceed $340 billion - an amount larger than the entire economy of either Russia or the Netherlands.

As part of the Pew Center launch, Members of the Business Environmental Leadership Council today released a joint statement expressing their position on climate change. The statement reads:

  • First, we accept the views of most scientists that enough is known about the science and environmental impacts of climate change for us to take actions to address its consequences.
  • Second, there are steps businesses can and should be taking now in both the U.S. and abroad to assess emission reduction opportunities, establish and meet emission reduction objectives, and invest in more energy-efficient products, practices and technology.
  • Third, the Kyoto agreement represents a first step in the international process, but more must be done both to implement market-based mechanisms that were adopted in principle in Kyoto and to more fully involve the rest of the world in the solution.
  • Fourth, we can make significant progress in addressing climate change and sustain economic growth in the United States by adopting reasonable policies, programs and transition strategies.

"We believe that the debate on climate change has suffered from too much polarization and too little objective analysis," said Rebecca Rimel, President of The Pew Charitable Trusts. "We believe the Center's research and education capabilities will lead to a more vibrant, engaging and productive debate, and help policy makers in the U.S. and around the world agree upon realistic and effective solutions." The Philadelphia-based philanthropy is recognized for investing in initiatives that encourage and support citizen participation in addressing critical issues and effecting social change.

More information about global climate change and the Pew Center can be found on our web site, located at www.c2es.org in the near future.

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