Webinar: Financing Climate Resilience – What Are Our Options?
Extreme weather events and disasters are already damaging assets, disrupting supply chains, reducing productivity and revenues, and destroying livelihoods. Projected climate impacts will also likely hit the creditworthiness of companies, posing risks to financial institutions and may affect companies' credit ratings. The need to update infrastructure provides an opportunity to build in climate resilience.
This webinar explores options for financing resilience and features an interactive discussion with experts in the field about opportunities and potential challenges.
July 21, 2016
Noon – 1:30 p.m. ET
Managing Director for HUD Programs (Office of Recovery), New Jersey Energy Resilience Bank
Founder & CEO, re:focus partners
Science Fellow and Resilience Project Coordinator, Center for Climate and Energy Solutions
Fatima Maria Ahmad
Solutions Fellow, Center for Climate and Energy Solutions
Shalini Vajjhala is founder & CEO of re:focus partners, a design firm dedicated to developing integrated resilient infrastructure solutions and innovative public-private partnerships, including the RE.invest Initiative and the RE.bound Program. Prior to starting re:focus, Ms. Vajjhala served as Special Representative in the Office of Administrator Lisa Jackson at the U.S. EPA, where she led the U.S.-Brazil Joint Initiative on Urban Sustainability, EPA Deputy Assistant Administrator in the Office of International & Tribal Affairs, and Deputy Associate Director for Energy & Climate at the White House Council on Environmental Quality. She joined the Obama administration from Resources for the Future, where she was awarded a patent for her work on the Adaptation Atlas. Ms. Vajjhala received her Ph.D. in engineering & public policy and Bachelor of Architecture from Carnegie Mellon University.
Katy Maher is a Science Fellow and Resilience Project Coordinator at the Center for Climate and Energy Solutions (C2ES). She contributes to C2ES’s efforts to assess and communicate the current state of knowledge regarding climate change and its impacts, and to promote actions that strengthen climate resilience. Ms. Maher has more than eight years of experience supporting climate change impacts and adaptation projects. Prior to joining C2ES, she worked for ICF International assisting a range of clients – including the U.S. Environmental Protection Agency, Federal Highway Administration, U.S. Agency for International Development, and state and local governments – in assessing climate change risks and developing adaptation solutions. Ms. Maher also served as Chapter Science Assistant for the Social, Economic and Ethical Concepts and Methods chapter of Working Group III’s contribution to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change.
Fatima Maria Ahmad is a Solutions Fellow at the Center for Climate and Energy Solutions (C2ES) where she co-leads the National Enhanced Oil Recovery Initiative with the Great Plains Institute. Ms. Ahmad focuses on financing opportunities and policy support for emerging energy technologies, including carbon capture, use, and storage (CCUS). In a volunteer capacity, Ms. Ahmad is the Co-Chair of the American Bar Association Section of International Law International Environmental Law Committee and is the Women’s Council on Energy & the Environment Vice-Chair for Membership.
Bruce Ciallella is currently the Managing Director for HUD Programs (Office of Recovery). In this role, he oversees the Hurricane Sandy recovery effort for the New Jersey Economic Development Authority (EDA). His role includes managing the Stronger NJ Business Grant Program, the Stronger NJ Business Loan Program, the Neighborhood Community Revitalization Program, and the Energy Resilience Bank. Prior to joining the EDA, Mr. Ciallella served as Deputy Attorney General for the state of New Jersey representing the EDA and New Jersey Housing and Mortgage Finance Agency in various legal matters, including but not limited to the creation of various Hurricane Sandy programs. Furthermore, before joining the state, Mr. Ciallella was a market maker on the floor of the NASDAQ OMX PHLX trading in the oil service, homebuilder, and gold and silver sectors.
When it comes to carbon capture, innovative technology exists, but the financial and policy support needed to accelerate its deployment is lacking.
At a recent Carbon Capture, Utilization & Storage (CCUS) Conference attended by leaders of industry, federal and state agencies, and environmental organizations, one theme that emerged is the importance of policy parity with other low- and zero-carbon energy technologies like wind and solar to advance widespread deployment of CCUS technology.
We know that CCUS technology is essential to meet our mid-century climate goals. In fact, without CCUS, mitigation costs will rise by 138 percent.
Exchange Monitor, the organizer of the CCUS conference, noted that it is “an extremely important technology, enjoying a bit more spotlight on the heels of the Paris climate change agreement.” Many nations specifically referenced CCUS technology in their Nationally Determined Contributions to the agreement, including Canada, China, Norway, Saudi Arabia, the United Arab Emirates, and the United States.
Even as nations diversify their energy portfolios, fossil fuels are expected to serve 78 percent of the world’s energy demand in 2040. The most recent Energy Information Administration analysis suggests that global energy consumption is expected to rise 48 percent over the next 30 years.
Clearly, there will be a need for CCUS technology to be widely deployed, in both the power and industrial sectors. Industry, including refining and chemicals, steel, and cement production, contributes roughly 25 percent of global emissions and there are no practical alternatives to CCUS for achieving deep emissions reduction in this sector.
CCUS project development is not on track, however. The most recent International Energy Agency (IEA) Tracking Clean Energy Progress report notes: “No positive investment decisions were taken on CCUS projects, nor did any advanced planning begin in 2015, resulting in a fall in the total number of projects in the development pipeline.”
Since a project can take five to 10 years from conception to operation, financial and policy support is critical now, the EIA adds. The report concludes: “As with other low-carbon technologies, the market for CCS projects in most regions will be created by policy and regulation.”
That conclusion was echoed at the conference by Dr. Julio Friedmann, the Senior Advisor for Energy Innovation at the Lawrence Livermore National Laboratory and former Principal Deputy Assistant Secretary for Fossil Energy at the U.S. Department of Energy. He said the financing challenge for CCUS projects “is fundamentally a policy issue; this is not a technology issue.” Barry Worthington, Executive Director of the U.S. Energy Association, emphasized at the conference that “providing identical fiscal tools for all no-carbon/low-carbon technologies reduces market distortion.”
Policies that would accelerate the deployment of CCUS technology include:
- Stronger federal and state incentives for carbon dioxide enhanced oil recovery (CO2-EOR)
- The inclusion of CCUS technology in state clean energy standards
- Funding for continued CCUS research, development, and demonstration
- A price on carbon
These policies would help overcome the barriers that innovative CCUS projects face, such as higher cost and higher perception of risk by investors. The cost reductions and performance improvements experienced by the wind and solar energy industries demonstrate that these kinds of policies (tax incentives, renewable portfolio standards, etc.) can accelerate the deployment of low- and zero-carbon energy technologies.
What policy parity means is sustained public sector support through the process of achieving a declining cost curve: from deploying initial first-of-a-kind CCUS technologies in both power and industrial applications to driving deployment of next-of-a-kind projects. It also means sustaining R&D on CCUS technologies so that low- and zero-carbon energy technologies are ultimately competitive without incentives.
As more CCUS projects come online, opportunities for cost reductions become apparent. SaskPower estimates it can save up to 30 percent on future CCUS units at the Boundary Dam power plant.
Finally, there is significant support for accelerated deployment of CCUS technology. C2ES co-convenes the National Enhanced Oil Recovery Initiative, which is a broad and unusual coalition of executives from the electric power industry; state officials; and environmental and labor representatives, all of whom support improved policy for CCUS technology in the United States. Based on our experience, and as expressed at the conference, policy parity needs to be an essential component of future federal and state efforts on climate to meet our agreed-upon goals and to match the growing need for CCUS technology.
The state of New York has passed a budget that includes a new EV purchase incentive that will provide up to $2,000 for eligible buyers of an all-electric vehicle, a plug-in hybrid EV, or a hydrogen fuel cell vehicle. Meanwhile in Minnesota, legislators have been considering an EV purchase incentive.
The CEO of the Freedom Foundation of Minnesota criticized EV purchase incentives as “a reverse Robin Hood scheme,” without the green tights, that takes money from the many (taxpayers) and subsidizes the purchases of the few (elites who buy EVs). How accurate is the assertion that the wealthy benefit the most from purchase incentives?
A free EV data tool from the New York State Energy Research and Development Authority can provide some insight. Developed with support from C2ES, EValuateNY gives users access to wide-ranging data sources from New York State’s EV market and allows easy comparisons of the factors that affect EV sales. You can find more about the tool in a previous blog post.
Our initial assessment, examining the period before the purchase incentive program has been implemented, shows that the EV market extends well beyond New York’s wealthiest counties.
Using the U.S. Census Bureau’s data on median household income by county, we established three income brackets to compare wealth between counties. Next, we broke down EV registrations by county and income bracket from the beginning of the EV market (2010) to the most recent data in EValuateNY (2014). The results show that counties with high median incomes account for slightly less than half the state’s total EV registrations.
Figure 1: Distribution of EVs by Income Bracket and County (2010-2014)
Therefore, EVs are not solely purchased in high-income counties, though households with high incomes are found in each county. However, EV registrations in three high-income counties (Suffolk, Nassau, and Westchester) account for more than 43 percent of the state’s total registrations, but only about 22 percent of the population. Clearly, these high-income counties have a higher rate of EV registrations. To dive deeper, we used EValuateNY to plot the rate of EV purchases per 1,000 vehicle registrations by county and income level, shown in Figure 2. Using a rate of EV purchases helps eliminate other factors that may affect the data, such as population or the rate of vehicle ownership. We also added the total number of EV registrations as the size of the bubble representing each county.
Figure 2: Household Income with Rate of EV Purchases and EV Registrations by Income Bracket and County (2010-2014)
This chart indicates that income may have a positive effect on the rate of EV registrations. High-income counties’ rate of EV purchases per 1,000 vehicles is higher than the range of low-income counties. With some notable exceptions, it’s also higher than the range of medium-income counties.
EValuateNY helped establish two findings[i] about the effect of income in New York State’s EV market:
1. Counties with low and medium median incomes make up more than half of the market; and
2. Residents of high-income counties may be more likely to purchase an EV than residents of low- and medium-income counties.
So, would New York’s forthcoming purchase incentive rob from the poor and give to the rich? This could not be entirely true, since more than half of all registered EVs are in low- and middle-income counties, and residents in these counties would arguably benefit more from $2,000 than residents from high-income communities. However, there may be some validity to the argument that on an individual basis, residents of high-income counties would benefit more from the purchase incentive because they may be more likely to buy an EV.
From a policy perspective, the purchase incentive is designed to promote EV deployment, reduce greenhouse gas emissions, and invest in the state’s economy. The program is not designed with any specific social equity goals, but New York legislators could address any potential wealth disparity by instituting an income cap, as California recently did.
The value of purchase incentives in spurring the EV market should not be lost in the discussion of income, though. A recent report by the Stockholm Environment Institute highlights the need to reduce EV price premiums as a means of encouraging consumer adoption. The effect of purchase incentives on state EV markets has been demonstrated over the past year after Georgia eliminated its $5,000 all-electric vehicle tax credit, and EV sales fell sharply.
New York State’s purchase incentive is a helpful tool for putting more electric vehicles on the roads. All New Yorkers, not only the wealthy, benefit from the reduced greenhouse gas emissions from having EVs using some of the least carbon-intensive electricity in the nation.
[i] The strength of any correlation is difficult to establish, as EValuateNY’s user interfaces are designed to provide high-level insights. A regression analysis that provides confidence intervals may be required to better understand the significance of income on counties’ rate of EV uptake. Users may conduct advanced analyses by directly accessing EValuateNY’s databases.
It’s strawberry season!
The first fruits of our family’s membership in a community-supported agriculture (CSA) program are starting to come in. This weekend, our kids will get back to the Earth (and get some of it on them) by picking a quart of berries at a farm just up the road from our house. And that will be just the start of a weekly harvest of fresh produce that’s locally and organically grown.
CSA is one model for locally-based agriculture and food distribution. It’s essentially a cooperative arrangement between a farmer and the local community. Members of a CSA program buy shares of the eventual harvest from the farmer at the beginning of the growing season and receive a portion of what the farmer produces in return.
The farmer gets help with the upfront costs of running a business that has a lot of uncertainty, like the weather, insects, or blight. The consumer gets a regular supply of produce fresh from the farm, sometimes at a discount over what they might pay at the grocery store.
Of course, with the shared benefits comes shared risk. If the growing season is bad for a certain crop, or an unexpected storm hits, that will affect the harvest. It can be disappointing. But the fact that the community is helping the farmer with costs could mean that the farmer can stay in business despite a bad harvest or devastating storm.
It made sense for my family, which includes two vegan teenagers, to give it a try this year. Each week, we’ll get up to eight items from the farm, such as a head of lettuce, a bag of spinach, a bundle of carrots, or a pound of green beans. We hope the experience will diversify the whole family’s food choices.
Being a CSA shareholder feels good because not only are we supporting our own community, but we are teaching our children where their food comes from and the work it takes to produce it.
You can find a CSA farm or other sources of locally grown food here.
CSA could be right for you if:
- Eating locally grown food is important to you.
- You cook the majority of your own meals.
- You like a variety of different and fresh vegetables.
- You can commit to picking up your produce share on the same day and at the same location each week. (Although some CSAs now offer door-to-door delivery).
- You can tolerate some risk of not getting crops or crops not coming in as planned.
- You want to support the local economy and small farm/agriculture industry.
Not all CSA farms are certified organic, although many do have a USDA certified organic seal. If this is a priority for you, ask about the farm’s growing practices before committing. Another important consideration is to find out what a CSA will provide. Some grow fruit, and others even include meat, eggs and honey.
If you want to eat fresh from the farm but can’t commit to CSA, you have other easy options:
- Farmers’ markets: Many communities set aside places for farmers to sell their produce directly to the public.
- Recovered food: Businesses like Hungry Harvest in the Washington, D.C., area take food that is perfectly edible but might be discarded by a restaurant or a grocery store because of a cosmetic imperfection. Some is sold to customers and some is donated to food banks or farmer’s markets.
- Grow your own: It doesn’t take much space in your backyard or balcony to plant a few tomatoes, bell peppers or squashes—especially if you grow them vertically. If you pull the weeds and water the plants, you’ll have tasty produce you can call your own.
Key Insights on Collaboration for a Resilient Anchorage
C2ES held a two-day Solutions Forum workshop in March 2016 in Anchorage, Alaska, focusing on opportunities for collaboration in building a climate-resilient Anchorage. About 50 business leaders, city, state, federal and tribal officials, nonprofit organizations, and other experts shared their experiences addressing climate change impacts and enhancing resilience. Discussion focused on the role each stakeholder group can play in planning for resilience. This paper summarizes the key insights of the meeting and areas of focus moving forward.
|Josh Wiener of MetLife, Kevin Rabinovich of Mars Inc., Rusty Hodapp of Dallas-Fort-Worth International Airport and Rob Bernard of Microsoft share the strategies that helped them win Climate Leadership Awards with David Rosenheim of The Climate Registry at the fifth annual Climate Laedership Conference, March 10 in Seattle.|
Climate action can start with an idea, but it takes a goal and a plan to get there to make that idea a reality.
When the folks at Microsoft began their current sustainability journey in 2007, “There was well-intentioned chaos,” according to Rob Bernard, the company’s chief environmental strategist. When the Clinton Foundation asked the software maker for a tool to monitor carbon in cities, “That made us think that, internally, we needed to have a strategy on sustainability,” Bernard said in his remarks at the fifth annual Climate Leadership Conference (CLC) in Seattle earlier this month.
That strategy led Microsoft to set and achieve its first public greenhouse gas goal, a 30 percent reduction within five years. Once that was met, the company then set -- and met -- an even more ambitious goal: carbon neutrality.
Microsoft was one of 13 organizations, three partnerships, and one individual honored with 2016 Climate Leadership Awards for accomplishments in reducing greenhouse gas emissions and driving climate action. The were given by the U.S. Environmental Protection Agency’s (EPA), in collaboration with C2ES and The Climate Registry.
Spring is the season of renewal, making it the perfect time to re-evaluate and refresh how we go about living and working sustainably on the planet. Turn over a new leaf this spring by trying any or all of the following five suggestions for treading more lightly on the earth.
- Avoid waste: What we buy and discard creates tons of waste and greenhouse gas emissions. The average American creates 4 pounds of trash daily. Keep would-be-waste to a minimum by making smart choices before you consume. Here are three tips: BYORM (bring your own reusable mug) to your favorite drink shop; carry reusable bags when shopping; or use Pyrex, Tupperware or reusable snack bags for leftovers after dining out.
- Mix up your commute: Are you one of the millions of Americans who drive nearly 30 miles a day – more often than not alone? Try a new way to get where you’re going. Use bike shares, take public transportation, join a carpool or try an uberPOOL.
- Grow your curb appeal: With spring around the corner, it is a fine time to add native trees and other plants to your yard or community garden. This greenery will capture carbon dioxide, the primary greenhouse gas contributing to climate change. Once established, native plants are low-maintenance and survive well on available water. They also enhance the look of your home or community. For more tips, check this guide to native plant gardening.
February is dragging on for an extra day this year, delaying my favorite spring ritual: the opening day of baseball season. The extra day of eager contemplation has me combining a seasonal love of baseball with my year-round affection for electric vehicles (EVs). Bear with me here.
Baseball is an intensely data-driven sport. Whereas most sports are still using relatively simple stats like basketball’s “double double,” where a player reaches double digits in two statistical categories, baseball analysts predict teams’ expected wins by calculating Pythagorean scoring averages. Oakland Athletics General Manager Billy Beane fielded a winning team by using data to find players’ overlooked value, inspiring a famous book and cunningly selling Brad Pitt as a reasonable look-alike in the process.
Baseball shows the importance of data availability and statistical inferences in decision-making. Similarly, access to the best statistics may help transportation managers determine the best strategies to promote adoption of EVs, a market-ready transportation alternative that can reduce harmful emissions that contribute to climate change. The difficulty has been that data resources have been scattered, often difficult to locate and even more difficult to compile into a usable form. This is where a new data tool may be able to offer meaningful insights into EV markets.
What are you doing for Leap Day?
According to folklore, it’s a good day for a woman to propose marriage. But if you’re not looking for that kind of commitment, you can instead commit to make a positive impact in the world during your extra 24 hours this year.
Here are seven things you can do to commit to a better planet Earth this Leap Day:
1. Plan an environmental outing with friends or co-workers. This might mean cleaning up a local stream or helping a local school build a live-and-learn greenhouse or garden. C2ES staffers planted wildflowers at a local park last year and are working on a new outing. The U.S. Environmental Protection Agency offers some other great environmental project ideas.
2. Host an environmental film screening. Educate yourself and friends by watching and discussing an environmental film or TV series like “Chasing Ice,” “Planet Earth,” or “The Symphony of Soil.” For more suggestions, visit this eco film list.
3. Take steps to save energy. Lowering your personal footprint begins by taking stock of how you use energy at home, at work and on the go. With better understanding, you can take action and live more sustainably while saving energy, money and the environment. Use our carbon calculator to find your footprint and complete pledges to improve it.
A number of states, cities, and power companies plan to press forward with clean energy efforts despite this week’s Supreme Court stay of the Clean Power Plan.
That’s because the future of carbon regulation is not “if” but “how and when,” and it is too big a question not to continue a thoughtful conversation among thoughtful people.
States to explore options
Officials in states including California, Colorado, Minnesota, Virginia, and Washington have said the court’s temporary stay won’t stop them from continuing to explore implementation options, which include leveraging the power of market forces to reduce emissions. Even states suing the Environmental Protection Agency (EPA) have been having these conversations, and most will continue to.
For instance, Montana Department of Environmental Quality energy bureau chief Laura Andersen told ClimateWire, "The market forces at play in the region are quite significant and will not go away just because the Clean Power Plan has a stay on it.”
Al Minier, chairman of the Wyoming Public Service Commission, said the stay could give regulators more time to develop strategies that are best for the state.