This post also appeared in the National Journal Energy & Environment Experts blog in response to a question about oil use and the future of electric vehicles.
Whether or not electric vehicles (EVs) take off will ultimately depend on consumer acceptance of new technology. But public policy and technological progress are just as important, as we highlight in our new report on the transportation sector.
Indeed, electric drive vehicles powered by batteries or hydrogen fuel cells could revolutionize transportation in the United States, saving considerable amounts of oil while also reducing the sector’s impact on our global climate. And the EVs on the market now are off to a great start, winning national and international awards.
Nearly all major automakers are planning to introduce these vehicles in the coming years, and I applaud automakers like Ford that have committed to building alternative drivetrains in significant number for the long haul. Companies like Ford understand climate change and the need to reduce our impact on our global environment while not sacrificing our mobility. For EVs to achieve that goal, we need policies like a clean energy standard that aim to decarbonize our electrical grid. I’m sure Ford is also investing in this space because they see a market opportunity.
The private sector has invested billions of dollars in developing, manufacturing, promoting, and distributing EVs in the last decade. From a map on our website, you can see that policymakers across the country are supporting EVs because they want their region to benefit from this burgeoning market.
Policymakers should rely on private capital as much as possible to build out the EV charging infrastructure so we can balance the desire to support alternative vehicles while also tackling our nation’s budget deficit. To that end, we should coordinate policy related to EV purchase and home charging nationwide so private players can enter new markets more easily. The most efficient way to “refuel” these vehicles is not yet clear, and we should use policy to help provide the foundation to let the market work.
Another element that is critical to the success of these vehicles is its most expensive component – the battery. Not only do we need aggressive R&D to develop batteries with much higher energy density, we also need to figure out what to do with these batteries at the vehicle’s end-of-life. About 80 percent of the battery’s capacity is still usable at this point, resulting in the largest untapped resource in this space today.
If we achieve the right mix of policy, technological progress, and consumer acceptance, there’s little reason to doubt that alternative vehicles will have a significant impact on the car market in this decade. It appears that it will be tough to kill the electric car this time.
Eileen Claussen is President
Ambitious Commitment Would Result in Cumulative 30 Percent Decrease in the Company's Emissions Since 2004, and Includes New Corporate Real Estate Portfolio Goal of 20 Percent LEED(R)-Certified Space
CHARLOTTE, N.C., May 18, 2011 -- Bank of America today announced an ambitious new goal to reduce its absolute greenhouse gas (GHG) emissions by 15 percent from 2011 to 2015, based on its 2010 baseline. This goal spans all of the company's global operations in more than 40 countries and builds on its previous GHG reduction of 18 percent between 2004 and 2009, which had focused on legacy Bank of America operations in the U.S.
Through the Environmental Protection Agency's Climate Leaders program, Bank of America was one of the first global financial institutions to announce GHG emissions reduction targets in 2004, and the first to publicly report out on exceeding those goals within the commitment period.
Today, factoring in the addition of Countrywide and Merrill Lynch, the new target represents an overall global reduction in aggregate GHG emissions of more than 30 percent from the 2004 baseline. This is equal to annual emissions of more than 700,000 metric tons CO2-equivalent or said another way, equal to eliminating the annual GHG emissions from more than 124,000 passenger vehicles.
"Reducing our emissions not only lessens the environmental impact of our global operations, but enhances our efficiency and delivers tremendous value for our company and shareholders," said Global Technology and Operations Executive and Bank of America Environmental Council Chair Catherine P. Bessant. "Continuing to achieve a GHG reduction of this magnitude requires fundamental changes spanning our entire organization, from our global real estate portfolio to the individual workspaces our employees occupy."
Like most companies, the vast majority (90 percent) of Bank of America's GHG emissions derives from energy consumption. To accomplish its GHG goal, Bank of America will focus on lowering its energy consumption by:
- Expanding and enhancing energy management systems and technology.
- Increasing computing efficiency in data centers and desktop/laptop computers.
- Improving overall equipment efficiency in areas such as HVAC and lighting.
- Optimizing office space.
- Identifying and implementing emerging technologies as they become commercially available and/or viable.
- Educating employees on how they can modify their behaviors to support the goal.
Leaders in LEED(R) certification
To further advance its GHG reduction goals, Bank of America also announced today that 20 percent of its corporate workplace real estate portfolio will be certified under the U.S. Green Building Council's LEED(R) (Leadership in Energy and Environmental Design) rating system by 2015. Currently 11 percent of the company's workplace portfolio, 13.2 million square feet, is comprised of LEED-certified space. LEED-certified space will include new construction, core and shell construction, commercial interiors, retail spaces and the operations and maintenance of existing buildings.
"Bank of America is an industry and corporate leader in applying LEED to achieve improvement to their global corporate footprint," said Rick Fedrizzi, president, CEO and founding chair of the U.S. Green Building Council (USGBC). "The company has systematically leveraged every aspect of green building practices throughout their entire workplace building stock to help them standardize their energy efficiency and achieve their carbon reduction goals."
Additionally, the company recognizes the important role that employees have in contributing to the company's comprehensive GHG emissions reduction goals. By instituting robust employee programs, the company is better able to achieve this specific goal, as well as reduce its overall indirect GHG emissions.
Through a comprehensive employee educational program, and a partnership with the Pew Center on Global Climate Change, the company is providing training, education and resources to help employees find ways to save energy and money, while reducing waste, improving their workplace and communities, and engaging with their teammates in market-specific opportunities. Employee training sessions in 2011 will focus on overall energy conservation, sustainable transportation, LEED building enhancements and recycling.
Under the company's Hybrid Vehicle Reimbursement program, eligible U.S.-based employees can receive up to a $3,000 reimbursement toward the purchase of a new hybrid, highway-capable electric or compressed natural gas vehicle. Initially launched in 2007, more than 3,800 employees have replaced conventionally powered vehicles which, on average, doubled their fuel economy and prevented the release of nearly 4,000 tons of annual CO2 emissions from employee commuting.
Third party partners
Bank of America also engages leading, independent partners like the Pew Center on Global Climate Change, Carbon Disclosure Project (CDP) and Ceres, throughout the entire lifecycle of its emissions and other environmental goal setting, benchmarking and reporting. To track its progress on this and other environmental commitments, the company continues to complete CDP's comprehensive annual carbon survey, adhere to Global Reporting Initiative sustainability reporting standards, and submit its GHG emissions data for independent, third-party review.
"As a global company, Bank of America is to be congratulated for its past achievements and impressive new goal, as well as demonstrating how effective management of their emissions and environmental footprint makes both business and environmental sense. It is clear that the effective management of these issues has a direct impact on a company's ability to compete and grow," said Paul Simpson, chief executive officer, Carbon Disclosure Project, a global, independent, not-for-profit organization that monitors and encourages company disclosure on carbon dioxide emissions. "They have made significant progress in engaging suppliers, employees and leadership on climate change and this announcement speaks to their long-term commitment."
About Bank of America's Environmental Commitment
Understanding the important role it plays in helping clients and communities address climate change, Bank of America continues to establish itself as an environmental leader in the financial services sector. In 2007, Bank of America embarked on a 10-year, $20 billion business initiative to address climate change through lending, investments, capital markets activity, philanthropy, and its own operations. Delivering $12.1 billion in four years to hundreds of clients in 45 states, the District of Columbia, Canada and markets across Asia, Europe and Latin America, Bank of America is focused on reducing its environmental footprint while aligning its global financial products and services to help advance energy efficiency and low-carbon energy markets, including wind, solar, biomass, other emerging technologies. For more information about Bank of America's environmental commitment, visit www.bankofamerica.com/environment.
SOURCE: Bank of America
Reporters May Contact:
Britney Sheehan, Bank of America, 1.206.358.7563
May 17, 2011
Pew Center Contact: Tom Steinfeldt, 703-516-4146
The Climate Registry Contact: Alex Carr, 778-340-8837
Association of Climate Change Officers Contact: Daniel Kreeger, 202-496-7390
The Climate Registry, Pew Center on Global Climate Change and the Association of Climate Change Officers Announce Partnership with the U.S. Environmental Protection Agency to Jointly Administer New National Climate Awards Program
Washington, DC – Today The Climate Registry (The Registry), the Pew Center on Global Climate Change (Pew Center) and the Association of Climate Change Officers (ACCO) announced that they will jointly sponsor a new national awards program with the U.S. Environmental Protection Agency (EPA) to recognize exemplary corporate, organizational and individual leadership in response to climate change.
By showcasing voluntary action on climate and energy under a unified banner, EPA, The Registry, Pew Center and ACCO are sending a strong signal that innovative and sustained leadership in greenhouse gas emissions (GHG) management will be recognized in the United States.
"The co-sponsorship of this new recognition opportunity reflects EPA’s commitment to reducing greenhouse gas emissions (GHGs) and recognizing leadership on climate change," said EPA Assistant Administrator Gina McCarthy. "We are pleased to be partnering with three non-profit organizations that have demonstrated expertise in GHG emissions management."
An event to honor award recipients will be held in early 2012. Specific award categories will include:
- Sustained Excellence in Public Reporting –Recognizing companies that continually raise the bar in the area of public disclosure of GHG emissions data. This would include regular public reporting and verification of corporate GHG inventories, GHG goal setting and achievement of GHG emissions reductions.
- Supply Chain Leadership –Recognizing companies that have their own comprehensive GHG inventories and emissions reduction goals and can demonstrate that they are at the leading edge of managing carbon in their supply chain.
- Organizational Leadership –Recognizing companies that have “mainstreamed” climate change across their operations and can demonstrate that they factor climate change into their business decisions.
- Individual Leadership –Recognizing individuals exemplifying extraordinary leadership in leading their organizations’ response to climate change and/or affecting the responses of other organizations.
These award categories provide a legacy for EPA’s Climate Leaders program, which provided support to private sector corporations who voluntarily set and achieved greenhouse gas reduction targets, and ACCO’s Climate Leadership Awards, which recognized exemplary leadership by organizations in industry, government, academia and the non-profit community.
“Corporate leadership is essential to advancing climate and energy solutions,” said Eileen Claussen, President of the Pew Center on Global Climate Change. “In growing numbers, companies and their employees are working tirelessly in pursuit of cost-effective solutions that reduce carbon and benefit consumers. Recognizing these great accomplishments serves to motivate and accelerate efforts throughout the business community toward a cleaner, more efficient energy future."
“The Climate Registry is delighted to partner with EPA, the Pew Center and ACCO on this important program, which will build on the work of Climate Leaders as well as our own carbon management program,” said Denise Sheehan, Executive Director of The Climate Registry. “Together we look forward to continuing to provide the tools, resources and recognition that organizations need to take their climate and carbon leadership to the next level.”
"Amongst ACCO’s primary missions is bringing together climate executives from across sectors to collaborate and establish best practices," said Daniel Kreeger, ACCO's Executive Director. "We look forward to undertaking such a timely and important effort with our partners - The Climate Registry and the Pew Center - who have been on the cutting edge of climate response, and of course EPA, whose Climate Protection Awards inspired ACCO’s 2010 Climate Leadership Awards program and whose Climate Leaders program has been so instrumental in driving climate response."
More information is available online at www.epa.gov/climateleaders. Additional information on the award categories and nomination process will be made publicly available in the next few weeks.
About The Climate Registry
The Climate Registry provides organizations with the tools and resources to help them calculate, verify, report and manage their GHG emissions in a publicly transparent and credible way. The Registry was established in 2007 as a 501 (c)(3) by US states and Canadian provinces and today is governed by a Board of Directors comprised of senior officials from 41 US states, the District of Columbia, 13 Canadian provinces and territories, six Mexican states and four Native Sovereign Nations. The Registry is a membership organization with more than 430 members who use The Registry’s services measure and manage their emissions and share best practices with a community of members. For more information see www.theclimateregistry.org.
About the Pew Center on Global Climate Change
The Pew Center on Global Climate Change (“Pew Center”; www.c2es.org) is a 501(c)(3) organization that operates under the legal umbrella Strategies for the Global Environment. Formed in 1998, the Pew Center is an internationally recognized pragmatic voice offering credible information and analysis, straight answers, and innovative solutions in the effort to address global climate change. In a highly polarized, controversial and politicized arena, the Pew Center provides a non-partisan forum for constructive engagement between business leaders, policy makers, scientists, and other experts.
About the Association of Climate Change Officers
The Association of Climate Change Officers is a 501(c)(6) non-profit membership organization for executives and officials worldwide in industry, government, academia and the non-profit community. ACCO’s mission is to advance the knowledge and skills of those dedicated to developing and directing climate change strategies in the public and private sectors, and to establish a flexible and robust forum for collaboration between climate change officers. For more information about ACCO, please visit www.ACCOonline.org.
Changing Planet is a three-part series of town hall events intended to encourage student learning and dialogue about climate change by gathering scientists, thought leaders, business people, and university students to discuss the facts of climate science, the dynamics of its impact and to brainstorm solutions. The series is prodiced in partnership between NBC Learn (the educational arm of NBC News), the National Science Foundation (NSF), and Discover magazine.
The first town hall event, Changing Planet: The Impact on Lives and Values, was hosted at Yale University and moderated by NBC News Special Correspondent Tom Brokaw. The discussion explored themes of human health, national security, economic opportunity and competitiveness, moral or religious values, environmental justice, and what climate change means for youth. The panelists were Linda Fisher, Dupont’s chief sustainability officer; Rajendra Pachauri, director of the Yale Climate and Energy Institute and a Nobel Prize laureate; Billy Parish, founder and coordinator of the youth-oriented Energy Action Coalition; and Katherine Hayhoe, associate professor in the Department of Geosciences at Texas Tech University and an expert on the intersection between Christian fundamentalism and climate change.
A second Changing Planet: Clean Energy, Green Jobs and Global Competition town hall was hosted at George Washington University on April 12, and focused on the economic advantages of climate change solutions, including clean energy policies and technologies and creation of market green jobs. Tim Juliani, Director of Corporate Engagement, was a panelist and provided our perspective on the clean energy debate. Other panelists included: Ken Zweibel, a professor at GWU, Phaedra Ellis-Lamkins (head of Green for All), and Chris Busch (director of Policy and Programs at the Apollo Alliance). NBC News reporter Anne Thompson moderated this event.
Read Discover Magazine's story on Building a Green-Collar Economy with a full transcript of the Changing Planet: Clean Energy, Green Jobs and Global Competition town hall.
The third town hall will be held at Arizona State University in the fall of 2011, and its suggested focus will be “Keeping It Fresh: Our Water Future,” impacts of how communities are adapting, or preparing to adapt to, changing availability of fresh water..
In addition to the Changing Planet town halls, NBC Learn and NSF worked together to produce a series of 12 online video reports looking at the impact of climate change in various locations around the world. From Bermuda’s tropical seas to the Arctic Ocean, each story follows scientists in the field who are studying the dramatic impacts of rising temperatures in the air, in the water, and on land. The series is narrated by Anne Thompson, Chief Environmental Affairs Correspondent for NBC News. Watch the full video series here.
First there was the warning about a construction moratorium – all new major stationary sources would come to an immediate halt because of EPA’s new source review requirements for greenhouse gas emissions (GHGs). Soon after the alarm went out about the approaching regulatory “train wreck” that would result from a series of EPA rules impacting electric utilities. A large number of power plants would shut down, the reliability of our energy supply would be sacrificed, and consumers would face skyrocketing costs.
There was only one problem with these warnings – they were made before anybody knew what the actual regulations would require. Now that EPA has issued several of these rules, it is useful to revisit these doomsday scenarios and see if the reality of the proposals matches the rhetoric before the fact.
At the moment, our attention is riveted by the events unfolding at a nuclear power plant in Japan. Over the past year or so, major accidents have befallen just about all of our major sources of energy: from the Gulf oil spill, to the natural gas explosion in California, to the accidents in coal mines in Chile and West Virginia, and now to the partial meltdown of the Fukushima Dai-ichi nuclear reactor. We have been reminded that harnessing energy to meet human needs is essential, but that it entails risks. The risks of different energy sources differ in size and kind, but none of them are risk-free.
For many Americans, U.S. oil dependence has become a concern for reasons ranging from climate change and environmental protection to national security and the economic impact of higher gas prices. But there are other important impacts of our oil dependence, including how foreign oil contributes to the U.S. trade deficit and how rising oil prices decrease American jobs – both particularly salient issues on the current U.S. political agenda.
A recent article from Daily Finance shines light on the 2010 trade deficit, more than half of which is from petroleum-related products. In 2010, the U.S. petroleum-related trade deficit was $256.9B, which represents a 29.6 percent jump from the 2009 petroleum trade deficit. This rise is largely due to increased prices, as the consumption of petroleum-related products in the United States grew by only 1.9 percent from 2009 to 2010 while the price per barrel of oil grew 31.1 percent to $74.66. An issue currently receiving a lot of attention in Washington, the $61B worth of cuts to the national budget sought by the U.S. House of Representatives, is equal to only one fourth of the country’s 2010 petroleum-related trade deficit.
Numbers that large can be hard to put into perspective, so let’s look at how this affects the average American. The graph below shows the U.S. petroleum-related trade deficit per capita (left axis), which is closely related to oil prices (right axis). In 2010 the petroleum-related trade deficit per capita was $832 and has ranged from $600 to $1200 in the past several years. This translates into each American household sending roughly $2,155 out of the U.S. economy in 2010 to pay for oil.
Rising oil prices not only increase the trade deficit, they decrease the number of jobs in America. As energy prices rise, businesses and consumers must spend more on energy and thus have less to spend elsewhere. In his presentation at our recent conference on state and federal roles in climate policy, Mark Doms, Chief Economist at the Department of Commerce, explained that when the price of oil goes up by just $10 per barrel, it translates into a loss of tens of thousands of jobs per month, or up to a quarter of a million U.S. jobs per year. Instead of losing jobs in order to maintain our use of oil, we should focus on creating jobs by investing in domestically produced alternative fuels and vehicles.
In June 2008, oil prices spiked to $145 per barrel, and Americans paid for it at the pump as gas prices reached $4 per gallon. We could be headed into a similar situation, as oil prices rose above $105 per barrel earlier this month and are expected to continue to rise in 2011 and 2012. Because we rely on oil, a resource that is concentrated in the Organization of the Petroleum Exporting Countries or OPEC, we face oil prices that are much higher than a competitive market would yield. This makes U.S. gasoline susceptible to price shocks, and American consumers pay more at the pump than they would in a competitive market.
Here we have highlighted two other important reasons why Americans should care about rising oil prices: they increase the U.S. trade deficit and can decrease domestic jobs. As oil prices continue to rise, these negative economic trends will also worsen. In order to mitigate the impacts of rising oil prices, we need to work towards a clean energy economy and promote the use of domestic alternative fuels and energy efficiency. This would decrease our oil dependence, making the United States less susceptible to rising oil prices while also creating more jobs here at home.
Monica Ralston is is the Innovative Solutions intern
By: Michael Gillenwater and Stephen Seres
Download this paper (pdf)
The Minneapolis Regional Chamber of Commerce will host The 2011 Greening Your Business Conference on April 14, 2011. This conference provides the opportunity to reach business decision makers who are interested in learning more about sustainable and eco-friendly products and services that can be implemented in the workplace.
The Pew Center on Global Climate Change will moderate the Keynote presentation from 4 PM to 5PM. To register for the event, please visit Greening Your Business Conference website for more information.
Alcoa Foundation and the Pew Center on Global Climate Change Launch School-Based Carbon Footprint Challenge
March 14, 2011
Contact: Diana Burkett, 703-516-4146
Alcoa Foundation and the Pew Center on Global Climate Change Launch School-Based Carbon Footprint Challenge
More than 8,000 students to participate in the Make an Impact: Change Our 2morrow (CO2) challenge with chance to win $5,000 grant
Washington, D.C. – Alcoa Foundation and the Pew Center on Global Climate Change today announced an exciting new green education partnership to teach students how their daily actions can reduce harmful emissions and improve the environment.
Set to run from March 14 to April 11, Make an Impact: Change Our 2morrow (CO2) is an educational energy conservation challenge among 8,000 students at 15 schools near Alcoa locations in Cleveland, OH, Hampton, VA, Knoxville, TN, and LaPorte and Warrick, IN.
The challenge builds on the successful Make an Impact program that has engaged nearly 14,000 Alcoa employees at 18 Alcoa locations across the US, resulting in more than 4.6 million pounds of carbon savings and $3.7 million in energy savings. Alcoa isn’t the only corporation involved, both Bank of America and Entergy have realized an estimated 5 million pounds of carbon savings each from rolling out Make an Impact, proving the value of the program for a wide range of organizations.
“Even small changes in our daily lives can lead to significant improvements for the environment,” said Paula Davis, President, Alcoa Foundation. “Through Make an Impact: Change Our 2morrow, we want to educate young people about the potential they have to make a difference and inspire them to become green ambassadors in their communities - at school, at play and at home.”
The winning schools are determined based on the highest number of carbon calculator completions, and will receive a $5,000 grand prize grant or one of five $1,000 runner-up grants, earmarked for ‘green initiatives,’ from Alcoa Foundation. The winners will be announced on Earth Day, April 22.
“Knowing the impact of your energy choices is an important first step to change,” said Katie Mandes, Pew Center Vice President of Communications and Director of the Make an Impact program. “We hope this challenge will motivate young people and the entire community to learn how easy it can be to make a difference.”
The Make an Impact: CO2 challenge is part of a new $7 million Alcoa Foundation investment to address regional environmental challenges, improve energy efficiency and enhance global reforestation projects. The investment is aligned with Alcoa Foundation’s sustainability focus: ‘Reduce, Recycle, Replenish,’ and will engage employees and communities where Alcoa operates.
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ABOUT ALCOA FOUNDATION
Alcoa Foundation is one of the largest corporate foundations in the U.S., with assets of approximately US $420 million. In addition to addressing local needs in communities where Alcoa operates, Alcoa Foundation is focused on promoting environmental stewardship, enabling economic and social sustainability, and preparing tomorrow’s leaders through education and learning. Alcoa Foundation was founded more than 50 years ago and has invested more than US $515 million since 1952. More information can be found at www.alcoa.com/foundation.
ABOUT THE PEW CENTER ON GLOBAL CLIMATE CHANGE
The Pew Center on Global Climate Change was established in May 1998 as a non-profit, non-partisan, and independent organization dedicated to providing credible information, straight answers, and innovative solutions in the effort to address global climate change. The Pew Center is led by Eileen Claussen, the former U.S. Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs. More information can be found at www.c2es.org.
ABOUT MAKE AN IMPACT
The Make an Impact program, developed by the Pew Center on Global Climate Change in partnership with Alcoa Foundation, helps Alcoa employees, their families and surrounding communities reduce energy use, manage their carbon footprint and become an active part of the solution to climate change. The program features:
- A custom-built carbon calculator with individual carbon footprint analysis.
- A dynamic website with tips, tools and resources on how to reduce energy bills and live more sustainably.
- A comprehensive outreach program of educational workshops and hands-on activities to support local action.
The Make an Impact: Change Our 2morrow (CO2) program promotes energy efficiency through a fun and engaging online competition, which features educational resources about energy conservation and an interactive carbon calculator. To find out more about Make an Impact, how your company or organization can sign on or to measure your own carbon footprint, visit www.alcoa.com/makeanimpact.